Atlantic Council Global Energy Center Senior Fellow Ellen Wald speaks with Bloomberg's Guy Johnson and Kailey Leinz about Saudi Aramco's $75 Billion dividend and how Secretary of State Anthony Blinken's condemnation of the attacks on Saudi territory might effect negotians with Iran on "Bloomberg: Markets". (Source: Bloomberg)
Monday, 22 March 2021
Aramco's $75B Dividend Survives Oil Rout - Bloomberg video
Aramco's $75B Dividend Survives Oil Rout - Bloomberg
Atlantic Council Global Energy Center Senior Fellow Ellen Wald speaks with Bloomberg's Guy Johnson and Kailey Leinz about Saudi Aramco's $75 Billion dividend and how Secretary of State Anthony Blinken's condemnation of the attacks on Saudi territory might effect negotians with Iran on "Bloomberg: Markets". (Source: Bloomberg)
Atlantic Council Global Energy Center Senior Fellow Ellen Wald speaks with Bloomberg's Guy Johnson and Kailey Leinz about Saudi Aramco's $75 Billion dividend and how Secretary of State Anthony Blinken's condemnation of the attacks on Saudi territory might effect negotians with Iran on "Bloomberg: Markets". (Source: Bloomberg)
Oil steadies after sell-off but European lockdowns hurt outlook for demand recovery | Reuters
Oil steadies after sell-off but European lockdowns hurt outlook for demand recovery | Reuters
Oil steadied on Monday as hopes for a pick-up in demand later this year helped arrest last week’s broad sell-off, but prices stayed under pressure as new European coronavirus lockdowns made a quick recovery look less likely.
Brent crude ended the session up 9 cents or 0.1% at $64.62 a barrel, while U.S. oil for delivery in April fell 13 cents, or 0.2%, to settle at $61.55 a barrel as it expired.
The more active U.S. crude futures for delivery in May rose 12 cents or 0.2% to settle at $61.56 a barrel.
Both contracts fell more than 6% last week after making steady gains for months on the back of output cuts and an expected demand recovery.
“Oil (had) its worst week this year as concerns grow over a flaring up in COVID-19 cases across Europe,” Dutch bank ING said in a note. “This comes at a time when there are clear signs of weakness in the physical oil market.”
Oil steadied on Monday as hopes for a pick-up in demand later this year helped arrest last week’s broad sell-off, but prices stayed under pressure as new European coronavirus lockdowns made a quick recovery look less likely.
Brent crude ended the session up 9 cents or 0.1% at $64.62 a barrel, while U.S. oil for delivery in April fell 13 cents, or 0.2%, to settle at $61.55 a barrel as it expired.
The more active U.S. crude futures for delivery in May rose 12 cents or 0.2% to settle at $61.56 a barrel.
Both contracts fell more than 6% last week after making steady gains for months on the back of output cuts and an expected demand recovery.
“Oil (had) its worst week this year as concerns grow over a flaring up in COVID-19 cases across Europe,” Dutch bank ING said in a note. “This comes at a time when there are clear signs of weakness in the physical oil market.”
Russian LNG would be competitive at $3.7-$7 per 1 million BTU | Reuters
Russian LNG would be competitive at $3.7-$7 per 1 million BTU | Reuters
Future liquefied natural gas (LNG) projects in Russia would be competitive at $3.7-$7 per 1 million British thermal units (BTU), based on the country’s state LNG development plan.
Russia would compete with Qatar, Australia and the United States for customers in Asia, its target market, up to 2030, and their production costs are seen at $2.8-11 and $7-10 per 1 million BTU, respectively, the plan showed.
Russia plans to increase its LNG production to nearly 140 million tonnes LNG per year by 2035 from around 31 million tonnes last year and aims to have about 20% of the global market share by then.
It targets new projects in Arctic and Russia’s far east to expand beyond existing LNG plants on the Yamal peninsula and on the Sakhalin island in the Pacific Ocean, looking to Asia as its core market to avoid competition with its pipeline gas in Europe.
Future liquefied natural gas (LNG) projects in Russia would be competitive at $3.7-$7 per 1 million British thermal units (BTU), based on the country’s state LNG development plan.
Russia would compete with Qatar, Australia and the United States for customers in Asia, its target market, up to 2030, and their production costs are seen at $2.8-11 and $7-10 per 1 million BTU, respectively, the plan showed.
Russia plans to increase its LNG production to nearly 140 million tonnes LNG per year by 2035 from around 31 million tonnes last year and aims to have about 20% of the global market share by then.
It targets new projects in Arctic and Russia’s far east to expand beyond existing LNG plants on the Yamal peninsula and on the Sakhalin island in the Pacific Ocean, looking to Asia as its core market to avoid competition with its pipeline gas in Europe.
Oil steadies on demand recovery expectation despite European lockdowns | Reuters
Oil steadies on demand recovery expectation despite European lockdowns | Reuters
Oil prices steadied on Monday after a broad sell-off last week, as new European coronavirus lockdowns dimmed expectations of a quick economic recovery, but market players were broadly confident of a demand rebound later in the year.
Brent crude was up 17 cents or 0.3% at $64.70 a barrel by 1433 GMT and U.S. oil was up 27 cents, or 0.4%, at $61.69.
Both contracts fell more than 6% last week after making steady gains for months on the back of output cuts and an expected demand recovery.
“Oil (had) its worst week this year as concerns grow over a flaring up in COVID-19 cases across Europe,” Dutch bank ING said in a note. “This comes at a time when there are clear signs of weakness in the physical oil market.”
Oil prices steadied on Monday after a broad sell-off last week, as new European coronavirus lockdowns dimmed expectations of a quick economic recovery, but market players were broadly confident of a demand rebound later in the year.
Brent crude was up 17 cents or 0.3% at $64.70 a barrel by 1433 GMT and U.S. oil was up 27 cents, or 0.4%, at $61.69.
Both contracts fell more than 6% last week after making steady gains for months on the back of output cuts and an expected demand recovery.
“Oil (had) its worst week this year as concerns grow over a flaring up in COVID-19 cases across Europe,” Dutch bank ING said in a note. “This comes at a time when there are clear signs of weakness in the physical oil market.”
Mideast Stocks: Financials lift #Saudi shares; blue-chip selloff dents Egypt | ZAWYA MENA Edition
Mideast Stocks: Financials lift Saudi shares; blue-chip selloff dents Egypt | ZAWYA MENA Edition
Major stock markets in the Gulf reversed course to end higher on Monday, with Saudi Arabian equities leading gains on the back of financial shares, while a blue-chip selloff tripped the Egyptian bourse.
Saudi Arabia's benchmark index rose 0.5%, with Al Rajhi Bank increasing 2.1%, after investment bank EFG Hermes raised its raised target price to 89 riyals ($23.73) from 73 riyals earlier.
"We underestimated Rajhi's success in gaining ground in mortgages and the robust mortgage growth in the Kingdom," EFG Hermes said in a report.
Oil giant Saudi Aramco gained 0.4%, as it maintained its pledge to declare a $75 billion dividend for 2020, despite a sharp decline in 2020 profits.
The company said on Monday its net debt-to-equity ratio more than doubled to 55% in 2020 from 26% a year earlier.
Abu Dhabi's index ended 0.2% higher, snapping three straight days of losses, with telecoms firm Etisalat adding 0.4%.
In Qatar, the index , also closed 0.1% higher, supported by a 0.9% gain in petrochemical maker Industries Qatar .
In Dubai, the main share index ended 1.2% lower, hit by a 3.5% plunge in Dubai's largest lender Emirates NBD , while blue-chip developer Emaar Properties was down 0.8%.
The COVID-19 pandemic has placed added pressure on the property sector in the region, where supply has outpaced demand for new houses and apartments for years in a market where foreigners account for the bulk of the population.
The Dubai real estate market is likely to remain in the doldrums over the next few years despite optimism over rising demand for certain market segments, with oversupply continuing to be a problem.
Major stock markets in the Gulf reversed course to end higher on Monday, with Saudi Arabian equities leading gains on the back of financial shares, while a blue-chip selloff tripped the Egyptian bourse.
Saudi Arabia's benchmark index rose 0.5%, with Al Rajhi Bank increasing 2.1%, after investment bank EFG Hermes raised its raised target price to 89 riyals ($23.73) from 73 riyals earlier.
"We underestimated Rajhi's success in gaining ground in mortgages and the robust mortgage growth in the Kingdom," EFG Hermes said in a report.
Oil giant Saudi Aramco gained 0.4%, as it maintained its pledge to declare a $75 billion dividend for 2020, despite a sharp decline in 2020 profits.
The company said on Monday its net debt-to-equity ratio more than doubled to 55% in 2020 from 26% a year earlier.
Abu Dhabi's index ended 0.2% higher, snapping three straight days of losses, with telecoms firm Etisalat adding 0.4%.
In Qatar, the index , also closed 0.1% higher, supported by a 0.9% gain in petrochemical maker Industries Qatar .
In Dubai, the main share index ended 1.2% lower, hit by a 3.5% plunge in Dubai's largest lender Emirates NBD , while blue-chip developer Emaar Properties was down 0.8%.
The COVID-19 pandemic has placed added pressure on the property sector in the region, where supply has outpaced demand for new houses and apartments for years in a market where foreigners account for the bulk of the population.
The Dubai real estate market is likely to remain in the doldrums over the next few years despite optimism over rising demand for certain market segments, with oversupply continuing to be a problem.
#Saudi Aramco's debt-to-equity ratio more than doubles in 2020 | Reuters
Saudi Aramco's debt-to-equity ratio more than doubles in 2020 | Reuters
Saudi oil giant Aramco’s debt-to-equity ratio more than doubled to 55% in 2020 from a year before, it said in a report, after the group kept a pledge to deliver a $75 billion dividend to support state coffers despite a slide in profits.
Net debt rose to 605.9 billion riyals ($161.6 billion) last year from 270.2 billion riyals in 2019, the results showed.
The world’s largest oil exporter said on Sunday net profit fell 44.4% to 183.8 billion riyals for the year ended Dec. 31 as the COVID-19 pandemic depressed global crude demand.
However it maintained its pledge to declare a $75 billion dividend for 2020, most of which goes to the Saudi government.
Saudi oil giant Aramco’s debt-to-equity ratio more than doubled to 55% in 2020 from a year before, it said in a report, after the group kept a pledge to deliver a $75 billion dividend to support state coffers despite a slide in profits.
Net debt rose to 605.9 billion riyals ($161.6 billion) last year from 270.2 billion riyals in 2019, the results showed.
The world’s largest oil exporter said on Sunday net profit fell 44.4% to 183.8 billion riyals for the year ended Dec. 31 as the COVID-19 pandemic depressed global crude demand.
However it maintained its pledge to declare a $75 billion dividend for 2020, most of which goes to the Saudi government.
#UAE launches Operation 300Bn to raise industrial sector’s contribution to Dh300 billion | Business – Gulf News
UAE launches Operation 300Bn to raise industrial sector’s contribution to Dh300 billion | Business – Gulf News
The UAE government launched on Monday 'Operation 300bn', a national industrial strategy aimed at raising the manufacturing sector’s contribution from Dh133 to Dh300 billion over the next 10 years.
The strategy, which will be led by the Ministry of Industry and Advanced Technology, was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.
The ultimate goal of the strategy is to support the setting up of 13,500 industrial companies and will help increase spending on research and development in the industrial sector from Dh21 billion to Dh57 billion in the coming years.
Sheikh Mohammed also launched the 'Make It In The Emirates' - the UAE's industrial identity to support domestic products and promote the sector globally, aiming to establish the country's industrial competitiveness.
The UAE government launched on Monday 'Operation 300bn', a national industrial strategy aimed at raising the manufacturing sector’s contribution from Dh133 to Dh300 billion over the next 10 years.
The strategy, which will be led by the Ministry of Industry and Advanced Technology, was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.
The ultimate goal of the strategy is to support the setting up of 13,500 industrial companies and will help increase spending on research and development in the industrial sector from Dh21 billion to Dh57 billion in the coming years.
Sheikh Mohammed also launched the 'Make It In The Emirates' - the UAE's industrial identity to support domestic products and promote the sector globally, aiming to establish the country's industrial competitiveness.
Rise and fall of #UAE Arabtec: From building Burj Khalifa in #Dubai and Louvre #AbuDhabi, to filing for bankruptcy | Property – Gulf News
Rise and fall of UAE Arabtec: From building Burj Khalifa in Dubai and Louvre Abu Dhabi, to filing for bankruptcy | Property – Gulf News
The UAE’s once mighty construction giant Arabtec is all set to be broken up. It sure looks that way.
On Sunday (March 21), the parent entity – Arabtec Holding – submitted a bankruptcy petition with the Dubai Court. Not just that, four of its subsidiaries too are going through the process - Arabtec Construction llc; Austrian Arabian Readymix Concrete Co.; Arabtec Precast; and Emirates Falcon Electromechanical Co..
But what’s missing from this mix is just as interesting – Target Engineering Construction Co. and Arabtec Engineering Services. Target, which is Arabtec’s specialist subsidiary for the oil industry, remains active on the project front, and as recently as November picked up a $38 million contract in Saudi Arabia. It also owns and operates marine vessels.
Which would make it interesting for any entity wanting to buy up Target. And this subsidiary could well be the first to be hived off from Arabtec as part of the long process that bankruptcy typically is.
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Arabtec project sites are not operating in full active mode, according to construction industry sources. The market is waiting for Arabtec to provide some updates on its operations. Image Credit: Clint Egbert/Gulf News |
The UAE’s once mighty construction giant Arabtec is all set to be broken up. It sure looks that way.
On Sunday (March 21), the parent entity – Arabtec Holding – submitted a bankruptcy petition with the Dubai Court. Not just that, four of its subsidiaries too are going through the process - Arabtec Construction llc; Austrian Arabian Readymix Concrete Co.; Arabtec Precast; and Emirates Falcon Electromechanical Co..
But what’s missing from this mix is just as interesting – Target Engineering Construction Co. and Arabtec Engineering Services. Target, which is Arabtec’s specialist subsidiary for the oil industry, remains active on the project front, and as recently as November picked up a $38 million contract in Saudi Arabia. It also owns and operates marine vessels.
Which would make it interesting for any entity wanting to buy up Target. And this subsidiary could well be the first to be hived off from Arabtec as part of the long process that bankruptcy typically is.
Aramco Pumps Least Crude Since 2011 as Virus Saps Demand: Chart - Bloomberg
Aramco Pumps Least Crude Since 2011 as Virus Saps Demand: Chart - Bloomberg
Saudi Aramco’s crude production slumped 7% to 9.2 million barrels a day last year, the lowest daily average that the world’s biggest oil company has recorded since 2011. As the coronavirus slashed demand, Saudi Arabia took the reigns of the global market, leading the OPEC+ group in making the deepest-ever output cuts, collectively taking about 10% of supply off the market. Aramco’s output, still huge with the company producing nearly a tenth of global supply, would have been even lower but for a brief supply war that saw output surge to a record 12.1 million barrels a day in April.
Oil Steady With Demand in Focus After Worst Week Since October - Bloomberg
Oil Steady With Demand in Focus After Worst Week Since October - Bloomberg
Oil was steady as investors assessed the near-term demand outlook after prices fell the most since October last week.
Brent futures rose 0.2% on Monday after falling 6.8% last week. Demand is showing some signs of weakness with the number of unsold April-loading oil cargoes from West Africa piling up. In Europe, new virus restrictions are expanding in France and Italy, while Germany is proposing an extension to lockdown measures.
However, there’s continued optimism over consumption in the U.S. as the Biden administration unleashes a wave of stimulus. The number of passengers checking through airport security in the country has been above 1 million people every day since March 10. That could provide support for jet fuel, the worst-hit oil product during the coronavirus crisis.
Oil was steady as investors assessed the near-term demand outlook after prices fell the most since October last week.
Brent futures rose 0.2% on Monday after falling 6.8% last week. Demand is showing some signs of weakness with the number of unsold April-loading oil cargoes from West Africa piling up. In Europe, new virus restrictions are expanding in France and Italy, while Germany is proposing an extension to lockdown measures.
However, there’s continued optimism over consumption in the U.S. as the Biden administration unleashes a wave of stimulus. The number of passengers checking through airport security in the country has been above 1 million people every day since March 10. That could provide support for jet fuel, the worst-hit oil product during the coronavirus crisis.
- Brent rose 12 cents to $64.65 a barrel at 10:15 a.m. in London
- West Texas Intermediate for April delivery, which expires Monday, lost 0.5% to $61.10
- The more-active May contract gained 0.2% to $61.59
Aramco’s Oil Payments to #Saudi State Slumped 30% to $110 Billion - Bloomberg
Aramco’s Oil Payments to Saudi State Slumped 30% to $110 Billion - Bloomberg
Aramco’s payments to the Saudi Arabian government fell by 30% last year, even as the company stuck with a $75 billion dividend, after the coronavirus pandemic sent crude prices tumbling.
The world’s biggest oil producer transferred 413 billion riyals ($110 billion) to the state in 2020 in the form of dividends, royalties and incomes taxes, Aramco said in a financial statement on Monday. The money is a crucial source of revenue for the government, whose budget deficit widened last year as the economy went into recession.
Aramco, 98% state-owned, kept its pledge to pay the $75 billion dividend, the largest of any listed firm. But royalties and taxes more than halved to around $41 billion.
Aramco took on $90 billion-worth of loans and bonds in 2020, causing its net debt-to-equity ratio to surge to 55% from 26% at the end of 2019. Many of those liabilities were used to fund a $69 billion acquisition of chemicals maker Sabic from the Saudi sovereign wealth fund.
The Saudi government charges Aramco a royalty fee on every barrel of oil it produces, which helps it generate income on top of the income taxes and dividends.
Aramco’s payments to the Saudi Arabian government fell by 30% last year, even as the company stuck with a $75 billion dividend, after the coronavirus pandemic sent crude prices tumbling.
The world’s biggest oil producer transferred 413 billion riyals ($110 billion) to the state in 2020 in the form of dividends, royalties and incomes taxes, Aramco said in a financial statement on Monday. The money is a crucial source of revenue for the government, whose budget deficit widened last year as the economy went into recession.
Aramco, 98% state-owned, kept its pledge to pay the $75 billion dividend, the largest of any listed firm. But royalties and taxes more than halved to around $41 billion.
Aramco took on $90 billion-worth of loans and bonds in 2020, causing its net debt-to-equity ratio to surge to 55% from 26% at the end of 2019. Many of those liabilities were used to fund a $69 billion acquisition of chemicals maker Sabic from the Saudi sovereign wealth fund.
The Saudi government charges Aramco a royalty fee on every barrel of oil it produces, which helps it generate income on top of the income taxes and dividends.
#Dubai's Union Properties to buy back shares | ZAWYA MENA Edition
Dubai's Union Properties to buy back shares | ZAWYA MENA Edition
Dubai real estate developer Union Properties has revealed plans to repurchase some of its shares
The company’s board of directors recommended the buyback at a rate not exceeding 10 percent of the issued capital, a bourse filing to the Dubai Financial Market (DFM) said on Monday.
It was not immediately clear how the developer intends to finance the buyback and for how much.
The plan comes as the company managed to reduce its accumulated losses and increased its shareholder equity in 2020.
The developer recorded 200.1 million dirhams ($54 million) in net profits for 2020 versus a net loss of 224.2 million dirhams in 2019. Its total assets grew by 2 percent year-on-year to 5.99 billion dirhams.
Last October, Union Properties completed a payment of 70 million dirhams towards its largest lender. The move is part of the company’s comprehensive debt restructuring plan to improve its cash flow.
Dubai real estate developer Union Properties has revealed plans to repurchase some of its shares
The company’s board of directors recommended the buyback at a rate not exceeding 10 percent of the issued capital, a bourse filing to the Dubai Financial Market (DFM) said on Monday.
It was not immediately clear how the developer intends to finance the buyback and for how much.
The plan comes as the company managed to reduce its accumulated losses and increased its shareholder equity in 2020.
The developer recorded 200.1 million dirhams ($54 million) in net profits for 2020 versus a net loss of 224.2 million dirhams in 2019. Its total assets grew by 2 percent year-on-year to 5.99 billion dirhams.
Last October, Union Properties completed a payment of 70 million dirhams towards its largest lender. The move is part of the company’s comprehensive debt restructuring plan to improve its cash flow.
Oil slips as Europe lockdowns dim demand recovery hopes | Reuters
Oil slips as Europe lockdowns dim demand recovery hopes | Reuters
Oil prices resumed their decline on Monday, falling more than 1% on renewed concerns that European lockdowns may slow an anticipated recovery in demand for fuel products.
Brent crude was down 69 cents, or 1.1%, at $63.84 a barrel by 0755 GMT. U.S. oil was off by $1.03, or 1.7%, at $60.39 a barrel. Both contracts fell by more than 6% last week.
“Germany’s lockdown extension and the partial lockdown in France continues to weigh on EU consumption sentiment,” said Jeffrey Halley, senior market analyst at OANDA.
Germany plans to extend a lockdown to contain COVID-19 infections into a fifth month, according to a draft proposal, after new cases exceeded levels authorities say will cause hospitals to be overstretched.
Oil prices resumed their decline on Monday, falling more than 1% on renewed concerns that European lockdowns may slow an anticipated recovery in demand for fuel products.
Brent crude was down 69 cents, or 1.1%, at $63.84 a barrel by 0755 GMT. U.S. oil was off by $1.03, or 1.7%, at $60.39 a barrel. Both contracts fell by more than 6% last week.
“Germany’s lockdown extension and the partial lockdown in France continues to weigh on EU consumption sentiment,” said Jeffrey Halley, senior market analyst at OANDA.
Germany plans to extend a lockdown to contain COVID-19 infections into a fifth month, according to a draft proposal, after new cases exceeded levels authorities say will cause hospitals to be overstretched.
Air Arabia upbeat about summer travel demand, CEO says | Reuters
Air Arabia upbeat about summer travel demand, CEO says | Reuters
Middle East budget carrier Air Arabia is optimistic about this year’s summer travel period, expecting more borders to reopen as more people are inoculated against the coronavirus.
Uncertainty remains over the forthcoming season with the pandemic continuing and some governments saying it was too early to ease border restrictions that have badly hit airlines.
“I expect a good summer subject (to the fact that) we don’t get hit with surprises of a third wave or something of that nature,” Air Arabia Chief Executive Adel Ali told reporters at an industry conference in the United Arab Emirates.
Middle East budget carrier Air Arabia is optimistic about this year’s summer travel period, expecting more borders to reopen as more people are inoculated against the coronavirus.
Uncertainty remains over the forthcoming season with the pandemic continuing and some governments saying it was too early to ease border restrictions that have badly hit airlines.
“I expect a good summer subject (to the fact that) we don’t get hit with surprises of a third wave or something of that nature,” Air Arabia Chief Executive Adel Ali told reporters at an industry conference in the United Arab Emirates.
MIDEAST STOCKS-Most Gulf markets fall in early trade; #Qatar rises | Nasdaq
MIDEAST STOCKS-Most Gulf markets fall in early trade; Qatar rises | Nasdaq
Major stock markets in the Gulf traded lower on Monday, pressured by financial shares amid falling oil prices, although Qatar bucked the sombre mood to open higher.
Oil prices, a key catalyst for the Gulf region's financial markets, edged lower on renewed concerns that European lockdowns may slow an anticipated recovery in demand for fuel products. O/R
Saudi Arabia's benchmark index .TASI fell 0.3%, with National Commercial Bank 1180.SE, the kingdom's largest lender, shedding 1.6%, while Samba Financial Group 1090.SE was down 1.5%.
Elsewhere, Saudi Aramco 2222.SE eased 0.1%, a day after the oil behemoth reported a sharp decline in 2020 net profit.
Aramco expects to cut capital expenditure, it said after reporting a 44% slump in full-year net profit, hit by lower crude oil prices and sales as the COVID-19 pandemic depressed demand.
In Dubai, the main share index .DFMGI fell 0.8%, pressured by a 2.2% decline in Dubai's largest lender Emirates NBD Bank ENBD.DU and 0.6% decrease in Dubai Islamic Bank DISB.DU.
The Abu Dhabi index .ADI eased 0.2%, on course to extend losses for a fourth straight session, with the country's largest lender First Abu Dhabi Bank FAB.AD losing 0.4%.
Among others, Dana Gas DANA.AD dropped 1.2%, after investment bank EFG Hermes, on Monday, slashed its target price to AED 0.830 ($0.2260) from AED 0.900.
In Qatar, the benchmark index .QSI edged 0.2% higher, helped by a 1.3% gain in petrochemical maker Industries Qatar IQCD.QA.
Major stock markets in the Gulf traded lower on Monday, pressured by financial shares amid falling oil prices, although Qatar bucked the sombre mood to open higher.
Oil prices, a key catalyst for the Gulf region's financial markets, edged lower on renewed concerns that European lockdowns may slow an anticipated recovery in demand for fuel products. O/R
Saudi Arabia's benchmark index .TASI fell 0.3%, with National Commercial Bank 1180.SE, the kingdom's largest lender, shedding 1.6%, while Samba Financial Group 1090.SE was down 1.5%.
Elsewhere, Saudi Aramco 2222.SE eased 0.1%, a day after the oil behemoth reported a sharp decline in 2020 net profit.
Aramco expects to cut capital expenditure, it said after reporting a 44% slump in full-year net profit, hit by lower crude oil prices and sales as the COVID-19 pandemic depressed demand.
In Dubai, the main share index .DFMGI fell 0.8%, pressured by a 2.2% decline in Dubai's largest lender Emirates NBD Bank ENBD.DU and 0.6% decrease in Dubai Islamic Bank DISB.DU.
The Abu Dhabi index .ADI eased 0.2%, on course to extend losses for a fourth straight session, with the country's largest lender First Abu Dhabi Bank FAB.AD losing 0.4%.
Among others, Dana Gas DANA.AD dropped 1.2%, after investment bank EFG Hermes, on Monday, slashed its target price to AED 0.830 ($0.2260) from AED 0.900.
In Qatar, the benchmark index .QSI edged 0.2% higher, helped by a 1.3% gain in petrochemical maker Industries Qatar IQCD.QA.
Oil Edges Lower at the Open After Ending Ugly Week With a Bounce - Bloomberg
Oil Edges Lower at the Open After Ending Ugly Week With a Bounce - Bloomberg
Brent oil edged lower as trading started in Asia, struggling to hold on to a bounce at the end of the worst week since October.
Futures in London slipped 0.5% on Monday after jumping 2% on Friday. Despite the gain in the previous session, crude still capped a significant weekly loss amid a combination of factors including a softening physical oil market, U.S. dollar strength and the unwinding of long positions. Concerns about near-term demand and the uneven recovery from the pandemic also continue to linger.
Saudi Arabia, meanwhile, saw another assault on its energy facilities. While the offensive by Iran-backed Houthi rebels on an Aramco refinery on Friday had no impact on oil supplies, it’s the latest in a series of attacks on the kingdom.
Brent oil edged lower as trading started in Asia, struggling to hold on to a bounce at the end of the worst week since October.
Futures in London slipped 0.5% on Monday after jumping 2% on Friday. Despite the gain in the previous session, crude still capped a significant weekly loss amid a combination of factors including a softening physical oil market, U.S. dollar strength and the unwinding of long positions. Concerns about near-term demand and the uneven recovery from the pandemic also continue to linger.
Saudi Arabia, meanwhile, saw another assault on its energy facilities. While the offensive by Iran-backed Houthi rebels on an Aramco refinery on Friday had no impact on oil supplies, it’s the latest in a series of attacks on the kingdom.
- Brent for May settlement fell 29 cents to $64.24 a barrel on the ICE Futures Europe exchange at 6:44 a.m. Singapore time after slumping 6.8% last week.
- West Texas Intermediate for April delivery, which expires Monday, lost 0.6% to $61.05 on the New York Mercantile Exchange after adding 2.4% in the previous session.
- The more-active May contract slid 0.5% to $61.14.
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