Oil falls 2% on rising COVID-19 cases, ahead of OPEC+ talks | Reuters
Oil prices fell 2% to a one-week low on Monday after hitting their highest since 2018 earlier in the session, as a spike in COVID-19 cases in Asia and Europe put a brake on the rally before this week's OPEC+ meeting.
Brent futures fell $1.50, or 2.0%, to settle at $74.68 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.14, or 1.5%, to settle at $72.91.
Those declines pushed both contracts out of overbought territory and were their lowest closes since June 18. Earlier in the volatile session, both benchmarks rose to their highest levels since October 2018.
"The forecast for oil demand recovery over the summer may be a bit overestimated, and traders are facing a reality check this week as the (COVID-19) Delta variant reached Europe and as an infections surge in Southeast Asia and Australia is bringing back lockdowns," said Louise Dickson, oil markets analyst at Rystad Energy.
Monday, 28 June 2021
Alpha Dhabi shares jump 13% as #AbuDhabi bourse's market value surges to $314bn | The National
Alpha Dhabi shares jump 13% as Abu Dhabi bourse's market value surges to $314bn | The National
Shares in Alpha Dhabi, the investment group listed on the Abu Dhabi Securities Exchange on Sunday, closed up almost 13 per cent on Monday, making it the fourth-biggest company on the exchange.
The company, in which Integrated Holding Company and Infinity Wave Holding each own a 44 per cent stake, is valued at Dh169 billion ($46bn) at Monday's Dh16.90 a share closing price. That means only IHC itself (Dh208.7bn), Etisalat (Dh193.1bn) and First Abu Dhabi Bank (Dh178bn) have a higher market capitalisation.
IHC's shares also gained another 3.4 per cent to Dh114.60, pushing the ADX's main market index up 0.63 per cent and its market capitalisation to Dh1.15 trillion.
In the year to date, the Abu Dhabi market is the best performer in the Gulf and "among the best globally", gaining 33.8 per cent, said Devesh Mamtani, chief market strategist at Dubai-based brokerage Century Financial.
Shares in Alpha Dhabi, the investment group listed on the Abu Dhabi Securities Exchange on Sunday, closed up almost 13 per cent on Monday, making it the fourth-biggest company on the exchange.
The company, in which Integrated Holding Company and Infinity Wave Holding each own a 44 per cent stake, is valued at Dh169 billion ($46bn) at Monday's Dh16.90 a share closing price. That means only IHC itself (Dh208.7bn), Etisalat (Dh193.1bn) and First Abu Dhabi Bank (Dh178bn) have a higher market capitalisation.
IHC's shares also gained another 3.4 per cent to Dh114.60, pushing the ADX's main market index up 0.63 per cent and its market capitalisation to Dh1.15 trillion.
In the year to date, the Abu Dhabi market is the best performer in the Gulf and "among the best globally", gaining 33.8 per cent, said Devesh Mamtani, chief market strategist at Dubai-based brokerage Century Financial.
#SaudiArabia’s Net Foreign Assets Fall Again From Decade Low - Bloomberg
Saudi Arabia’s Net Foreign Assets Fall Again From Decade Low - Bloomberg
Saudi Arabia’s net foreign assets dropped 0.8% in May from the month before, sinking further after hitting the lowest level in more than a decade.
The stockpile at the kingdom’s central bank fell by 13.65 billion riyals, according to the bank’s monthly report.
Saudi Arabia’s net foreign assets declined significantly in 2020 as lower oil income strained finances and officials simultaneously transferred $40 billion to the kingdom’s sovereign fund to fuel an opportunistic investment spree.
The indicator -- which topped $700 billion in 2014 after an oil boom pumped up savings -- now stands at 1.62 trillion riyals ($432 billion). However most economists say that’s more than enough to defend the Saudi riyal’s peg to the dollar, and rising oil prices could boost the fortunes of the world’s largest crude exporter in the months ahead.
The price of Brent crude has averaged around $73 a barrel so far in June, compared to $68 in May and $65 in April.
Saudi Arabia’s net foreign assets dropped 0.8% in May from the month before, sinking further after hitting the lowest level in more than a decade.
The stockpile at the kingdom’s central bank fell by 13.65 billion riyals, according to the bank’s monthly report.
Saudi Arabia’s net foreign assets declined significantly in 2020 as lower oil income strained finances and officials simultaneously transferred $40 billion to the kingdom’s sovereign fund to fuel an opportunistic investment spree.
The indicator -- which topped $700 billion in 2014 after an oil boom pumped up savings -- now stands at 1.62 trillion riyals ($432 billion). However most economists say that’s more than enough to defend the Saudi riyal’s peg to the dollar, and rising oil prices could boost the fortunes of the world’s largest crude exporter in the months ahead.
The price of Brent crude has averaged around $73 a barrel so far in June, compared to $68 in May and $65 in April.
#Iran's recovery seen as modest with return to original nuclear deal - IIF | Reuters
Iran's recovery seen as modest with return to original nuclear deal - IIF | Reuters
Iran’s economic recovery is likely to be modest should it revive a 2015 nuclear deal with six world powers without expanding the scope of the pact, according to a trade body for the global financial industry.
Hardliner Ebrahim Raisi’s victory in a presidential election this month will not derail the nuclear negotiations, but the United States may face difficulties in expanding the scope of the accord, the Institute of International Finance (IIF) said in a report.
“The likely outcome for the JCPOA (Joint Comprehensive Plan of Action) negotiations is a return to the 2015 agreement, which would keep many sanctions in place. Such a limited agreement would deter significant investment by Western firms, making a sharp pickup in growth unlikely,” it said.
Iran and the United States have been holding indirect talks since April to revive the 2015 nuclear deal, which then U.S. President Donald Trump abandoned in 2018, reimposing sanctions.
U.S. President Joe Biden is seeking to revive and eventually broaden the nuclear pact to put greater limits on Iran’s nuclear and ballistic missile programmes, as well as constraining its regional activities.
Iran’s economic recovery is likely to be modest should it revive a 2015 nuclear deal with six world powers without expanding the scope of the pact, according to a trade body for the global financial industry.
Hardliner Ebrahim Raisi’s victory in a presidential election this month will not derail the nuclear negotiations, but the United States may face difficulties in expanding the scope of the accord, the Institute of International Finance (IIF) said in a report.
“The likely outcome for the JCPOA (Joint Comprehensive Plan of Action) negotiations is a return to the 2015 agreement, which would keep many sanctions in place. Such a limited agreement would deter significant investment by Western firms, making a sharp pickup in growth unlikely,” it said.
Iran and the United States have been holding indirect talks since April to revive the 2015 nuclear deal, which then U.S. President Donald Trump abandoned in 2018, reimposing sanctions.
U.S. President Joe Biden is seeking to revive and eventually broaden the nuclear pact to put greater limits on Iran’s nuclear and ballistic missile programmes, as well as constraining its regional activities.
#Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
Fitch Ratings assigned QP a long-term issuer default rating of AA- with a stable outlook on Monday, which it said was "constrained by that of sole shareholder - Qatar (AA-/Stable) - given strong links between the company and the sovereign".
"Fitch assesses the Standalone Credit Profile (SCP) of QP at 'aa+', which is supported by the large scale of its LNG franchise, low production costs, large reserve base and conservative leverage," Fitch said, adding QP operations' focus on gas "makes it better placed for energy transition than other oil and gas majors."
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026. read more
Fitch said key constraints on QP's rating include completion risk for large capital expenditure projects related to increasing LNG production, as well as political risk.
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
Fitch Ratings assigned QP a long-term issuer default rating of AA- with a stable outlook on Monday, which it said was "constrained by that of sole shareholder - Qatar (AA-/Stable) - given strong links between the company and the sovereign".
"Fitch assesses the Standalone Credit Profile (SCP) of QP at 'aa+', which is supported by the large scale of its LNG franchise, low production costs, large reserve base and conservative leverage," Fitch said, adding QP operations' focus on gas "makes it better placed for energy transition than other oil and gas majors."
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026. read more
Fitch said key constraints on QP's rating include completion risk for large capital expenditure projects related to increasing LNG production, as well as political risk.
#UAE's ADNOC to deepen crude oil term supply cut in Sept -sources | Reuters
UAE's ADNOC to deepen crude oil term supply cut in Sept -sources | Reuters
Abu Dhabi National Oil Company (ADNOC) will reduce the volume of crude oil it supplies to Asian term buyers by 15% in September, according to six sources with direct knowledge of the matter.
The cut was much deeper compared with a reduction of 5% in term volume allocation for crude oil cargoes loading in August, three of the sources said. ADNOC did not provide a reason for the deeper cuts, the sources said.
ADNOC declined to comment on such issues.
The move came as a surprise for some market participants ahead of an upcoming OPEC+ meeting on July 1. It was not immediately clear why ADNOC was making a deeper supply cut for crude oil loading in September for its term contract customers.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs.
Sources told Reuters last Tuesday that OPEC+ was discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market. read more
Abu Dhabi National Oil Company (ADNOC) will reduce the volume of crude oil it supplies to Asian term buyers by 15% in September, according to six sources with direct knowledge of the matter.
The cut was much deeper compared with a reduction of 5% in term volume allocation for crude oil cargoes loading in August, three of the sources said. ADNOC did not provide a reason for the deeper cuts, the sources said.
ADNOC declined to comment on such issues.
The move came as a surprise for some market participants ahead of an upcoming OPEC+ meeting on July 1. It was not immediately clear why ADNOC was making a deeper supply cut for crude oil loading in September for its term contract customers.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs.
Sources told Reuters last Tuesday that OPEC+ was discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market. read more
Emaar Properties plans to issue benchmark sukuk as #Dubai real estate market improves | The National
Emaar Properties plans to issue benchmark sukuk as Dubai real estate market improves | The National
Emaar Properties, the UAE's biggest listed property developer by market capitalisation, plans to issue a new benchmark sukuk.
The company appointed Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, Mashreq Bank and Standard Chartered Bank as joint lead arrangers for a global investor call and a series of one-to-one and group meetings with fixed income investors, it said in a statement to the Dubai Financial Market, where its shares trade.
"A benchmark US dollar ... senior unsecured sukuk with a 10-year tenor under Emaar Properties' $2 billion Trust Certificate Issuance Programme may follow subject to market conditions," it said.
A benchmark bond or sukuk is generally classed as a debt issuance of at least $500 million.
Bond issuances by Gulf entities are expected to be around $125m this year, in line with last year's total, according to emerging markets specialist Franklin Templeton.
Emaar Properties, the UAE's biggest listed property developer by market capitalisation, plans to issue a new benchmark sukuk.
The company appointed Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, Mashreq Bank and Standard Chartered Bank as joint lead arrangers for a global investor call and a series of one-to-one and group meetings with fixed income investors, it said in a statement to the Dubai Financial Market, where its shares trade.
"A benchmark US dollar ... senior unsecured sukuk with a 10-year tenor under Emaar Properties' $2 billion Trust Certificate Issuance Programme may follow subject to market conditions," it said.
A benchmark bond or sukuk is generally classed as a debt issuance of at least $500 million.
Bond issuances by Gulf entities are expected to be around $125m this year, in line with last year's total, according to emerging markets specialist Franklin Templeton.
#Qatar Petroleum Sees Natural Gas Demand Peaking Around 2040, Much Later Than IEA - Bloomberg
Qatar Petroleum Sees Natural Gas Demand Peaking Around 2040, Much Later Than IEA - Bloomberg
Natural gas giant Qatar Petroleum predicted global demand for the fuel will continue to climb for almost two decades, making it far more optimistic than the International Energy Agency.
QP expects consumption to grow at a rate of 1.5% a year, driven higher by economic growth and a broad shift away from dirtier-burning coal, according to a bond prospectus seen by Bloomberg. It sees demand peaking around 2040, roughly 15 years later than forecast by the IEA.
The world’s largest producer of liquefied natural gas is spending tens of billions of dollars to build expansion projects that rely on a rosy future for the commodity. Gas has been seen as a key transition fuel in the global shift to cleaner energy, though it’s falling out of favor with some governments as they accelerate efforts to slow climate change.
The Paris-based IEA, an adviser to most major economies, expects gas demand to peak in the mid-2020s, according to its Net Zero by 2050 report published in May. By mid-century, gas use will be 55% lower than in 2020, it said.
QP’s outlook contrasts sharply, and its forecast for LNG is even more bullish. The state producer expects LNG demand to grow even after gas consumption starts to decline, saying falling gas production in some countries will raise demand for imports. It sees the LNG market growing at a rate of 3.6% a year to 2040, and continuing to expand until the end of that decade.
Qatar is ramping up production of the liquefied fuel dramatically, while dropping prices to squeeze competitors out the market. Qatar Petroleum’s capital expenditure will total almost $60 billion from 2021 to 2025, according to the prospectus.
Natural gas giant Qatar Petroleum predicted global demand for the fuel will continue to climb for almost two decades, making it far more optimistic than the International Energy Agency.
QP expects consumption to grow at a rate of 1.5% a year, driven higher by economic growth and a broad shift away from dirtier-burning coal, according to a bond prospectus seen by Bloomberg. It sees demand peaking around 2040, roughly 15 years later than forecast by the IEA.
The world’s largest producer of liquefied natural gas is spending tens of billions of dollars to build expansion projects that rely on a rosy future for the commodity. Gas has been seen as a key transition fuel in the global shift to cleaner energy, though it’s falling out of favor with some governments as they accelerate efforts to slow climate change.
The Paris-based IEA, an adviser to most major economies, expects gas demand to peak in the mid-2020s, according to its Net Zero by 2050 report published in May. By mid-century, gas use will be 55% lower than in 2020, it said.
QP’s outlook contrasts sharply, and its forecast for LNG is even more bullish. The state producer expects LNG demand to grow even after gas consumption starts to decline, saying falling gas production in some countries will raise demand for imports. It sees the LNG market growing at a rate of 3.6% a year to 2040, and continuing to expand until the end of that decade.
Qatar is ramping up production of the liquefied fuel dramatically, while dropping prices to squeeze competitors out the market. Qatar Petroleum’s capital expenditure will total almost $60 billion from 2021 to 2025, according to the prospectus.
Oil Market Latest News: Oil Holds Steady Near $74 a Barrel - Bloomberg
Oil Market Latest News: Oil Holds Steady Near $74 a Barrel - Bloomberg
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MIDEAST STOCKS Fresh COVID curbs and US air strike push Gulf stocks lower | Reuters
MIDEAST STOCKS Fresh COVID curbs and US air strike push Gulf stocks lower | Reuters
A resurgence in coronavirus infections and U.S. air strikes against Iran-backed militias slammed Gulf stock markets on Monday, knocking Abu Dhabi's main index from record highs hit earlier in the session.
Dubai's share index (.DFMGI) posted the biggest fall, down 1.1% and off 21-month highs touched on Sunday. It was weighed by a 1.8% fall in top lender Emirates NBD (ENBD.DU) and a 1.6% decline in blue-chip developer Emaar Properties (EMAR.DU).
Losses were partly due to new COVID-19 restrictions and fears for the region's economic revival, Michael Stark, research analyst at Exness said, also noting the impact of a U.S. strike in Iraq.
Gulf markets had opened stronger, following Sunday's robust session but soon gave up early gains, digesting a U.S. announcement of air strikes against Iran-backed militia in Iraq and Syria in response to drone attacks against U.S. personnel and facilities in Iraq read more .
Iraqi militia groups vowed to retaliate.
"The U.S. intervention sent shivers across the markets as the shadow of armed conflict shows its nose," Stark said.
Abu Dhabi's share index (.ADI), ended 0.6% higher though it ceded some early gains driven by a surge in the International Holding Company (IHC.AD) conglomerate.
IHC added 3.4% to Sunday's 15% rise after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake. Alpha Dhabi soared 12.7%. read more
IHC, now Abu Dhabi's most valuable listed company, has gained more than 170% so far this year.
Elsewhere, Saudi Arabia's benchmark index (.TASI) edged 0.1% lower, with Saudi National Bank (1180.SE), the kingdom's largest lender, losing 1%, and Sahara International Petrochemical Company (2310.SE) declining 2.1%.
Separately, Saudi Fransi Capital has started a book building process in preparation for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said in a statement on Sunday.
Qatar's share benchmark (.QSI) dropped 0.6%, with most index members in negative territory including largest constituent Qatar National Bank (QNBK.QA).
Telecoms firm Ooredoo (ORDS.QA) closed unchanged, a day after falling 3.8% following an imposition of a 3.5 million riyal ($950,000) financial sanction.
Outside the Gulf, Egypt's blue-chip index (.EGX) lost 0.3%, pressured by a 1.2% fall in Commercial International Bank (COMI.CA).
A resurgence in coronavirus infections and U.S. air strikes against Iran-backed militias slammed Gulf stock markets on Monday, knocking Abu Dhabi's main index from record highs hit earlier in the session.
Dubai's share index (.DFMGI) posted the biggest fall, down 1.1% and off 21-month highs touched on Sunday. It was weighed by a 1.8% fall in top lender Emirates NBD (ENBD.DU) and a 1.6% decline in blue-chip developer Emaar Properties (EMAR.DU).
Losses were partly due to new COVID-19 restrictions and fears for the region's economic revival, Michael Stark, research analyst at Exness said, also noting the impact of a U.S. strike in Iraq.
Gulf markets had opened stronger, following Sunday's robust session but soon gave up early gains, digesting a U.S. announcement of air strikes against Iran-backed militia in Iraq and Syria in response to drone attacks against U.S. personnel and facilities in Iraq read more .
Iraqi militia groups vowed to retaliate.
"The U.S. intervention sent shivers across the markets as the shadow of armed conflict shows its nose," Stark said.
Abu Dhabi's share index (.ADI), ended 0.6% higher though it ceded some early gains driven by a surge in the International Holding Company (IHC.AD) conglomerate.
IHC added 3.4% to Sunday's 15% rise after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake. Alpha Dhabi soared 12.7%. read more
IHC, now Abu Dhabi's most valuable listed company, has gained more than 170% so far this year.
Elsewhere, Saudi Arabia's benchmark index (.TASI) edged 0.1% lower, with Saudi National Bank (1180.SE), the kingdom's largest lender, losing 1%, and Sahara International Petrochemical Company (2310.SE) declining 2.1%.
Separately, Saudi Fransi Capital has started a book building process in preparation for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said in a statement on Sunday.
Qatar's share benchmark (.QSI) dropped 0.6%, with most index members in negative territory including largest constituent Qatar National Bank (QNBK.QA).
Telecoms firm Ooredoo (ORDS.QA) closed unchanged, a day after falling 3.8% following an imposition of a 3.5 million riyal ($950,000) financial sanction.
Outside the Gulf, Egypt's blue-chip index (.EGX) lost 0.3%, pressured by a 1.2% fall in Commercial International Bank (COMI.CA).
With oil prices rallying, it is now time for Opec+ to regain market share | The National
With oil prices rallying, it is now time for Opec+ to regain market share | The National
The Opec meeting at the start of July faces quite a different mood from last year’s gatherings. After battling low prices, a coronavirus-induced slump in demand and a cautious recovery, the market’s alarm signals are now flashing orange. It is time for the producers’ organisation to move on to the next phase of the campaign.
The headline price is striking enough, with Brent crude at more than $76 a barrel on Friday – its highest level since late 2018, bringing it close to breaching a seven-year record.
However, there are plenty of other signs of market tightness.
The discount of US benchmark West Texas Intermediate to Brent now sits at $2, compared to $10 at the last peak in 2018. As American demand picks up while production remains subdued, there is less incentive to export surplus crude.
The premium between September and October WTI futures has widened to more than $1 a barrel, indicating that prompt supplies are strained.
The premium for immediate delivery over longer-dated futures, the situation known as backwardation, encourages traders to empty oil from storage to avoid receiving a lower price later.
Apart from China, surplus inventories built up earlier during the pandemic have almost dissipated. Stocks in developed countries are now below their five-year average before the pandemic. Major traders such as Vitol expect global demand to be back at pre-Covid levels by the second half of next year.
The global economy is picking up as key countries overcome the worst of the pandemic. The global composite purchasing managers’ index, a good advance indicator, reached its highest level in more than 15 years in May.
Manufacturing has led the recovery so far as people stuck at homes buy computers and make house improvements.
Now services are starting to pick up in the US and Europe as the pace of vaccinations rises – meaning more car travel to restaurants, malls and cinemas, as well as holidays by road and, increasingly, air.
Concerns remain over the new coronavirus variants, particularly the now-infamous Delta strain, the slow pace of vaccination in many parts of the world and the problem of reopening Asian countries such as Japan that managed to keep infection levels low but have little established immunity.
The Opec meeting at the start of July faces quite a different mood from last year’s gatherings. After battling low prices, a coronavirus-induced slump in demand and a cautious recovery, the market’s alarm signals are now flashing orange. It is time for the producers’ organisation to move on to the next phase of the campaign.
The headline price is striking enough, with Brent crude at more than $76 a barrel on Friday – its highest level since late 2018, bringing it close to breaching a seven-year record.
However, there are plenty of other signs of market tightness.
The discount of US benchmark West Texas Intermediate to Brent now sits at $2, compared to $10 at the last peak in 2018. As American demand picks up while production remains subdued, there is less incentive to export surplus crude.
The premium between September and October WTI futures has widened to more than $1 a barrel, indicating that prompt supplies are strained.
The premium for immediate delivery over longer-dated futures, the situation known as backwardation, encourages traders to empty oil from storage to avoid receiving a lower price later.
Apart from China, surplus inventories built up earlier during the pandemic have almost dissipated. Stocks in developed countries are now below their five-year average before the pandemic. Major traders such as Vitol expect global demand to be back at pre-Covid levels by the second half of next year.
The global economy is picking up as key countries overcome the worst of the pandemic. The global composite purchasing managers’ index, a good advance indicator, reached its highest level in more than 15 years in May.
Manufacturing has led the recovery so far as people stuck at homes buy computers and make house improvements.
Now services are starting to pick up in the US and Europe as the pace of vaccinations rises – meaning more car travel to restaurants, malls and cinemas, as well as holidays by road and, increasingly, air.
Concerns remain over the new coronavirus variants, particularly the now-infamous Delta strain, the slow pace of vaccination in many parts of the world and the problem of reopening Asian countries such as Japan that managed to keep infection levels low but have little established immunity.
Mumzworld Online Retailer Bought by #Saudi's Tamer Group as FirstCry Gains Ground - Bloomberg
Mumzworld Online Retailer Bought by Saudi's Tamer Group as FirstCry Gains Ground - Bloomberg
A Saudi conglomerate will buy the Middle East’s largest online children-goods retailer, underscoring the growth of e-commerce in the region amid increasing competition for business.
Dubai-based Mumzworld said on Monday that it signed a sales and purchase agreement with Jeddah-based Tamer Group, describing it as the region’s first “woman-led e-commerce transaction.” Financial details weren’t disclosed.
The transaction will provide Mumzworld with the resources and networks to “continue to supercharge our growth” both geographically and in terms of product offerings, said its co-founder and chief executive Mona Ataya.
“We are a business that is home-grown,” she said in an interview. “So this acquisition by a strategic giant is the right DNA and the right strategic fit for us.”
A Saudi conglomerate will buy the Middle East’s largest online children-goods retailer, underscoring the growth of e-commerce in the region amid increasing competition for business.
Dubai-based Mumzworld said on Monday that it signed a sales and purchase agreement with Jeddah-based Tamer Group, describing it as the region’s first “woman-led e-commerce transaction.” Financial details weren’t disclosed.
The transaction will provide Mumzworld with the resources and networks to “continue to supercharge our growth” both geographically and in terms of product offerings, said its co-founder and chief executive Mona Ataya.
“We are a business that is home-grown,” she said in an interview. “So this acquisition by a strategic giant is the right DNA and the right strategic fit for us.”
#Saudi Aramco Bets on Blue Hydrogen Exports Ramping Up From 2030 - Bloomberg video
Saudi Aramco Bets on Blue Hydrogen Exports Ramping Up From 2030 - Bloomberg
Saudi Aramco outlined plans to invest in blue hydrogen as the world shifts away from dirtier forms of energy, but said it will take at least until the end of this decade before a global market for the fuel is developed.
“We’re going to have a large share” of the market for blue hydrogen, Aramco’s chief technology officer, Ahmad Al-Khowaiter, said in an interview with Bloomberg Television on Sunday in Dhahran, eastern Saudi Arabia, where the company’s based. “The scale up isn’t going to happen before 2030. We’re not going to see large volumes of blue ammonia before then.”
Hydrogen is seen as crucial to slowing climate change since it emits no harmful greenhouse gases when burned. The blue form of the fuel is made from natural gas, with the carbon emissions generated in the conversion process being captured. The hydrogen is sometimes converted again into ammonia to allow it to be transported more easily between continents.
The state energy firm may end up spending roughly $1 billion on capturing carbon for every 1 million tons of blue ammonia produced, Khowaiter said. That would exclude the expense of producing the gas, he said.
“We’re going to have a large share” of the market for blue hydrogen, Aramco’s chief technology officer, Ahmad Al-Khowaiter, said in an interview with Bloomberg Television on Sunday in Dhahran, eastern Saudi Arabia, where the company’s based. “The scale up isn’t going to happen before 2030. We’re not going to see large volumes of blue ammonia before then.”
Hydrogen is seen as crucial to slowing climate change since it emits no harmful greenhouse gases when burned. The blue form of the fuel is made from natural gas, with the carbon emissions generated in the conversion process being captured. The hydrogen is sometimes converted again into ammonia to allow it to be transported more easily between continents.
The state energy firm may end up spending roughly $1 billion on capturing carbon for every 1 million tons of blue ammonia produced, Khowaiter said. That would exclude the expense of producing the gas, he said.
Emaar hires banks for 10-year dollar Islamic bonds - document | ZAWYA MENA Edition
Emaar hires banks for 10-year dollar Islamic bonds - document | ZAWYA MENA Edition
Emaar Properties has hired banks to arrange an issuance of U.S. dollar-denominated 10-year sukuk, or Islamic bonds, a document showed on Monday.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank and Standard Chartered will arrange investor calls starting on Monday, the document from one of the banks showed.
A senior unsecured sukuk issuance will follow, subject to market conditions.
Reuters reported early this month that Emaar hired banks to arrange a dollar sukuk sale.
Emaar Properties has hired banks to arrange an issuance of U.S. dollar-denominated 10-year sukuk, or Islamic bonds, a document showed on Monday.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank and Standard Chartered will arrange investor calls starting on Monday, the document from one of the banks showed.
A senior unsecured sukuk issuance will follow, subject to market conditions.
Reuters reported early this month that Emaar hired banks to arrange a dollar sukuk sale.
MIDEAST STOCKS #AbuDhabi outperforms Gulf stocks as IHC extends surge | Reuters
MIDEAST STOCKS Abu Dhabi outperforms Gulf stocks as IHC extends surge | Reuters
Abu Dhabi stocks outperformed Gulf markets on Monday, led by a 9% surge in the shares of the International Holding Company (IHC) conglomerate, which benefited from the listing of a subsidiary.
The Abu Dhabi index (.ADI) advanced 1.2%, while International Holding (IHC.AD) was up 3.4%, having jumped 15% on Sunday. IHC shares are up around 170% this year.
IHC, now Abu Dhabi's most valuable listed company, gained after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake and which operates in the healthcare, construction and hospitality sectors. read more .
Alpha Dhabi leapt over 8%.
Saudi Arabia's benchmark index (.TASI) rose too, adding 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.5% increase in petrochemical maker Saudi Basic Industries (2010.SE).
Separately, Saudi Fransi Capital has started a book building process for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said on Sunday.
But Dubai's main share index (.DMFGI) eased 0.2%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU). Emaar shed some of the 1% gain it made on Sunday, after S&P Global raised its outlook to stable from negative.
S&P attributed the outlook revision to better momentum in Dubai's residential real estate, with prices rising in some areas for the first time since 2015.
The Qatari benchmark (.QSI) lost 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) falling 0.6% and Qatar Fuel Company (QFLS.QA) dropping 1.3%.
However, the index's losses were limited by telecoms firm Ooredoo (ORDS.QA), which rose 1.3%. Ooredoo shares retreated 3.8% on Sunday after the imposition of a 3.5 million riyal ($950,000) financial sanction for violating instructions issued by the authority.
Abu Dhabi stocks outperformed Gulf markets on Monday, led by a 9% surge in the shares of the International Holding Company (IHC) conglomerate, which benefited from the listing of a subsidiary.
The Abu Dhabi index (.ADI) advanced 1.2%, while International Holding (IHC.AD) was up 3.4%, having jumped 15% on Sunday. IHC shares are up around 170% this year.
IHC, now Abu Dhabi's most valuable listed company, gained after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake and which operates in the healthcare, construction and hospitality sectors. read more .
Alpha Dhabi leapt over 8%.
Saudi Arabia's benchmark index (.TASI) rose too, adding 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.5% increase in petrochemical maker Saudi Basic Industries (2010.SE).
Separately, Saudi Fransi Capital has started a book building process for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said on Sunday.
But Dubai's main share index (.DMFGI) eased 0.2%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU). Emaar shed some of the 1% gain it made on Sunday, after S&P Global raised its outlook to stable from negative.
S&P attributed the outlook revision to better momentum in Dubai's residential real estate, with prices rising in some areas for the first time since 2015.
The Qatari benchmark (.QSI) lost 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) falling 0.6% and Qatar Fuel Company (QFLS.QA) dropping 1.3%.
However, the index's losses were limited by telecoms firm Ooredoo (ORDS.QA), which rose 1.3%. Ooredoo shares retreated 3.8% on Sunday after the imposition of a 3.5 million riyal ($950,000) financial sanction for violating instructions issued by the authority.
#Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026.
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026.
Gulf ‘unlikely to introduce broad-based income taxes’: Moody’s | ZAWYA MENA Edition
Gulf ‘unlikely to introduce broad-based income taxes’: Moody’s | ZAWYA MENA Edition
The introduction of broad-based income taxes in the GCC is unlikely in the short-to-medium term, says Moody’s.
A new report by the US-based ratings agency states that direct taxation, which would significantly and durably lower the reliance of government revenue on oil and gas is a long way away as the region lacks economic diversification which means non-oil sector growth needs to be effectively subsidised.
The key difference between the GCC and most other sovereigns is an effective absence of direct taxes.
None of the GCC sovereigns currently levy property or personal income taxes, notes the report.
The introduction of broad-based income taxes in the GCC is unlikely in the short-to-medium term, says Moody’s.
A new report by the US-based ratings agency states that direct taxation, which would significantly and durably lower the reliance of government revenue on oil and gas is a long way away as the region lacks economic diversification which means non-oil sector growth needs to be effectively subsidised.
The key difference between the GCC and most other sovereigns is an effective absence of direct taxes.
None of the GCC sovereigns currently levy property or personal income taxes, notes the report.
Oil drifts near 2018 highs ahead of OPEC+ meeting | Reuters
Oil drifts near 2018 highs ahead of OPEC+ meeting | Reuters
Oil prices hit and then recoiled from highs last seen in October 2018 on Monday as investors eyed the outcome of this week's OPEC+ meeting as the United States and Iran wrangle over the revival of a nuclear deal, delaying a surge in Iranian oil exports.
Brent crude for August had slipped 1 cent to $76.17 a barrel by 0619 GMT while U.S. West Texas Intermediate crude for August was at $74.09 a barrel, up 4 cents.
Oil prices rose for a fifth week last week as fuel demand rebounded on strong economic growth and increased travel during summer in the northern hemisphere, while global crude supplies stayed snug as the Organization of the Petroleum Exporting Countries (OPEC) and their allies maintained production cuts.
The producer group, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets on July 1 and could further ease supply cuts in August as oil prices rise on demand recovery.
Oil prices hit and then recoiled from highs last seen in October 2018 on Monday as investors eyed the outcome of this week's OPEC+ meeting as the United States and Iran wrangle over the revival of a nuclear deal, delaying a surge in Iranian oil exports.
Brent crude for August had slipped 1 cent to $76.17 a barrel by 0619 GMT while U.S. West Texas Intermediate crude for August was at $74.09 a barrel, up 4 cents.
Oil prices rose for a fifth week last week as fuel demand rebounded on strong economic growth and increased travel during summer in the northern hemisphere, while global crude supplies stayed snug as the Organization of the Petroleum Exporting Countries (OPEC) and their allies maintained production cuts.
The producer group, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets on July 1 and could further ease supply cuts in August as oil prices rise on demand recovery.
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