Biden administration pushes for 'compromise solution' in OPEC+ talks | Reuters
The Biden administration is pushing for a “compromise solution” in stalled OPEC+ oil output talks, a White House spokesperson said on Monday.
OPEC+ ministers called off those talks on Monday after the United Arab Emirates rejected a proposed eight-month extension to curbs on output. Four OPEC+ sources told Reuters there has been no progress toward a deal.
“The United States is closely monitoring the OPEC+ negotiations and their impact on the global economic recovery from the COVID-19 pandemic,” the White House spokesperson said in a statement.
“We are not a party to these talks, but Administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward.”
A rise in oil prices, which are at their highest levels since 2018, has helped fuel inflation concerns. U.S. President Joe Biden has made the economic recovery from the recession triggered by the coronavirus pandemic a key priority for his administration.
Stable oil market conditions are needed to power the recovery and meet the administration’s goal of affordable and reliable energy, Biden aides said on condition of anonymity.
International benchmark Brent crude oil was trading above $77 a barrel on Monday, or 1.2% higher in the session.
OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other big producers, agreed to record output cuts of almost 10 million barrels per day (bpd) last year, equivalent to about 10% of world output, as the pandemic hit. The curbs have been gradually relaxed and currently stand at about 5.8 million bpd.
The UAE, sources said, on Friday accepted a proposal from Saudi Arabia and other OPEC+ members to raise output in stages by about 2 million bpd from August to December but rejected extending remaining cuts to the end of 2022 from a current end date of April without adjusting its current baseline production.
Monday, 5 July 2021
Brent Oil Jumps Past $77 After OPEC+ Fails to Reach Output Deal - Bloomberg
Brent Oil Jumps Past $77 After OPEC+ Fails to Reach Output Deal - Bloomberg
Brent oil prices rose above $77 a barrel for the first time since 2018 after OPEC+ failed to reach an agreement on bringing back curtailed output, leaving the market with tighter supplies than expected.
Futures rose as much as 1.2% in London. The group’s oil ministers were unable to reach a compromise, keeping current production limits in place for August and depriving the market from the extra barrels it needs as demand recovers from the pandemic.
“As things stand now, this is quite a bullish scenario for oil prices,” TD Securities analyst Daniel Ghali said by phone. “We should see the energy market tighten up at a faster pace than we anticipated in recent months.”
Talks on Monday followed a delay from last week as the Saudis stood firm about raising output starting in August and extending the OPEC+ agreement to the end of 2022, while the United Arab Emirates sought better terms for itself. The failure by the group to increase supply will further squeeze an already tight market, raising concerns over inflation.
Most OPEC+ members backed a proposal to increase output by 400,000 barrels a day each month from August, and push back the expiry of the broader supply deal into the end of next year. To agree to an extension, the UAE sought to change the baseline that’s used to calculate its quota, a move that could allow it to boost daily production by an extra 700,000 barrels.
Brent oil prices rose above $77 a barrel for the first time since 2018 after OPEC+ failed to reach an agreement on bringing back curtailed output, leaving the market with tighter supplies than expected.
Futures rose as much as 1.2% in London. The group’s oil ministers were unable to reach a compromise, keeping current production limits in place for August and depriving the market from the extra barrels it needs as demand recovers from the pandemic.
“As things stand now, this is quite a bullish scenario for oil prices,” TD Securities analyst Daniel Ghali said by phone. “We should see the energy market tighten up at a faster pace than we anticipated in recent months.”
Talks on Monday followed a delay from last week as the Saudis stood firm about raising output starting in August and extending the OPEC+ agreement to the end of 2022, while the United Arab Emirates sought better terms for itself. The failure by the group to increase supply will further squeeze an already tight market, raising concerns over inflation.
Most OPEC+ members backed a proposal to increase output by 400,000 barrels a day each month from August, and push back the expiry of the broader supply deal into the end of next year. To agree to an extension, the UAE sought to change the baseline that’s used to calculate its quota, a move that could allow it to boost daily production by an extra 700,000 barrels.
#UAE News: #Dubai's Shuaa Captial Planning Three SPAC Listings - Bloomberg
UAE News: Dubai's Shuaa Captial Planning Three SPAC Listings - Bloomberg
Dubai financial services firm Shuaa Capital PSC is considering setting up three blank-check companies of around $200 million each, according to people familiar with the matter, rapidly opening up the booming market for special purpose acquisition vehicles to Gulf investors.
Shuaa, which manages close to $14 billion in assets, approached investment banks to explore setting up the SPACs to pursue deals in the energy, finance and technology sectors, the people said, declining to be named because the information isn’t public.
The SPACs are expected to list in the U.S. this year and will target companies in the Middle East and North Africa, the people said. Shuaa’s spokesman declined to comment.
Investor enthusiasm for SPACs is finally catching on in the Middle East at a time when the momentum for the vehicles has waned in the U.S. after the lacklustre share performance of recent deals and greater regulatory scrutiny.
Blank-check companies are corporate shells that raise money from investors with the aim of merging with private businesses to take them public. They’ve exploded in popularity last year as an easier and less-scrutinized way to go public compared with an initial public offering. Singapore could see its first SPAC listing this year.
Regional Rarity
The Middle East has so far seen only a handful of SPACs. Abu Dhabi-based music firm Anghami is listing on the Nasdaq stock exchange in New York by merging with a blank-check company, a deal that included a commitment from Shuaa and the parent of the SPAC sponsor in so-called PIPE -- private investment in public equity -- financing.
Dubai-based FIM Partners, the frontier and emerging markets asset manager backed by EFG Hermes, last week raised $200 million in an IPO of a SPAC on Nasdaq. Abu Dhabi sovereign wealth fund Mubadala Investment Co. is meanwhile close to launching two SPACs with a focus on technology and health care, the Financial Times reported last week.
Shuaa, which traces its roots to the late 1970s, is an asset management and investment banking firm led by Group Chief Executive Jassim Alseddiqi. Two years ago, it combined with Abu Dhabi Financial Group through a reverse merger.
Dubai financial services firm Shuaa Capital PSC is considering setting up three blank-check companies of around $200 million each, according to people familiar with the matter, rapidly opening up the booming market for special purpose acquisition vehicles to Gulf investors.
Shuaa, which manages close to $14 billion in assets, approached investment banks to explore setting up the SPACs to pursue deals in the energy, finance and technology sectors, the people said, declining to be named because the information isn’t public.
The SPACs are expected to list in the U.S. this year and will target companies in the Middle East and North Africa, the people said. Shuaa’s spokesman declined to comment.
Investor enthusiasm for SPACs is finally catching on in the Middle East at a time when the momentum for the vehicles has waned in the U.S. after the lacklustre share performance of recent deals and greater regulatory scrutiny.
Blank-check companies are corporate shells that raise money from investors with the aim of merging with private businesses to take them public. They’ve exploded in popularity last year as an easier and less-scrutinized way to go public compared with an initial public offering. Singapore could see its first SPAC listing this year.
Regional Rarity
The Middle East has so far seen only a handful of SPACs. Abu Dhabi-based music firm Anghami is listing on the Nasdaq stock exchange in New York by merging with a blank-check company, a deal that included a commitment from Shuaa and the parent of the SPAC sponsor in so-called PIPE -- private investment in public equity -- financing.
Dubai-based FIM Partners, the frontier and emerging markets asset manager backed by EFG Hermes, last week raised $200 million in an IPO of a SPAC on Nasdaq. Abu Dhabi sovereign wealth fund Mubadala Investment Co. is meanwhile close to launching two SPACs with a focus on technology and health care, the Financial Times reported last week.
Shuaa, which traces its roots to the late 1970s, is an asset management and investment banking firm led by Group Chief Executive Jassim Alseddiqi. Two years ago, it combined with Abu Dhabi Financial Group through a reverse merger.
OPEC+ Deal Fails, Leaving Oil Market Tighter as Prices Surge - Bloomberg
OPEC+ Deal Fails, Leaving Oil Market Tighter as Prices Surge - Bloomberg
OPEC+ abandoned its meeting without a deal, tipping the cartel into crisis and leaving the oil market facing tight supplies and rising prices.
Several days of tense talks failed to resolve a bitter dispute between Saudi Arabia and the United Arab Emirates, delegates said, asking not to be named because the information wasn’t public. The group didn’t agree a date for its next meeting, according to a statement from OPEC Secretary-General Mohammad Barkindo.
The most immediate effect of the breakdown in talks is that, for now, OPEC+ won’t increase production for August, depriving the global economy of vital extra supplies as demand recovers rapidly from the coronavirus pandemic.
However, the situation is fluid and the group could reactivate talks at any moment. With prices up about 50% this year and climbing toward $80 a barrel, the cartel may feel pressure from consuming countries concerned about rising inflation.
Crude prices jumped 0.9% to $76.84 a barrel as of 4:25 p.m. in London, the highest since 2018.
The outcome is a significant failure for the cartel. Relations have soured between two core members of the Organization of Petroleum Exporting Countries to such an extent that no compromise was possible. It damages the group’s self-image as a responsible steward of the oil market, raising the spectre of the destructive price war that caused unprecedented price swings last year.
OPEC+ abandoned its meeting without a deal, tipping the cartel into crisis and leaving the oil market facing tight supplies and rising prices.
Several days of tense talks failed to resolve a bitter dispute between Saudi Arabia and the United Arab Emirates, delegates said, asking not to be named because the information wasn’t public. The group didn’t agree a date for its next meeting, according to a statement from OPEC Secretary-General Mohammad Barkindo.
The most immediate effect of the breakdown in talks is that, for now, OPEC+ won’t increase production for August, depriving the global economy of vital extra supplies as demand recovers rapidly from the coronavirus pandemic.
However, the situation is fluid and the group could reactivate talks at any moment. With prices up about 50% this year and climbing toward $80 a barrel, the cartel may feel pressure from consuming countries concerned about rising inflation.
Crude prices jumped 0.9% to $76.84 a barrel as of 4:25 p.m. in London, the highest since 2018.
The outcome is a significant failure for the cartel. Relations have soured between two core members of the Organization of Petroleum Exporting Countries to such an extent that no compromise was possible. It damages the group’s self-image as a responsible steward of the oil market, raising the spectre of the destructive price war that caused unprecedented price swings last year.
MIDEAST STOCKS #AbuDhabi hits record high; other major Gulf bourses ease | Reuters
MIDEAST STOCKS Abu Dhabi hits record high; other major Gulf bourses ease | Reuters
Abu Dhabi stocks rose to a record high in early trade on Monday, led by gains in International Holding (IHC) as the company continued a rally following the listing of a subsidiary.
IHC's market capitalisation hit 201.7 billion dirhams ($54.92 billion) last week, making it Abu Dhabi's most valuable listed company, after the market debut of Alpha Dhabi (ALPHADHABI.AD), in which IHC holds a 45% stake. read more
In Abu Dhabi, the index (.ADI) gained 1%, with International Holding (IHC.AD) advancing over 5%.
The index's gains were capped by losses at the country's largest lender, First Abu Dhabi Bank (FAB.AD), which was down 0.6%.
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 0.4% fall in Emirates NBD Bank (ENBD.DU) and a 1.5% decline in budget airline Air Arabia (AIRA.DU).
The United Arab Emirates has approved Moderna Inc's (MRNA.O) COVID-19 vaccine for emergency use, the fifth vaccine to receive such approval from the Gulf Arab state. read more
The UAE, with a population of about 9.2 million, has reported the spread of the Beta, Delta and Alpha variants in the country. read more
Saudi Arabia's benchmark index (.TASI) lost 0.3%, pressured by a 1.1% fall in Saudi Telecom Company (7010.SE) and a 0.7% drop in petrochemical company Saudi Basic Industries (2010.SE).
OPEC+ ministers were resuming talks on Monday after failing to reach a deal on oil output policy in two days of talks last week, amid a rare public standoff between Gulf allies Saudi Arabia and the United Arab Emirates. read more
The spat erupted at a sensitive time for the oil market and could delay plans to pump more oil through to the end of the year to cool global oil prices that have soared to 2-1/2 year highs. Brent was trading around $76 on Monday.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
The Qatari index (.QSI) fell 0.2%, with Qatar National Bank (QNBK.QA) losing 0.3%.
Abu Dhabi stocks rose to a record high in early trade on Monday, led by gains in International Holding (IHC) as the company continued a rally following the listing of a subsidiary.
IHC's market capitalisation hit 201.7 billion dirhams ($54.92 billion) last week, making it Abu Dhabi's most valuable listed company, after the market debut of Alpha Dhabi (ALPHADHABI.AD), in which IHC holds a 45% stake. read more
In Abu Dhabi, the index (.ADI) gained 1%, with International Holding (IHC.AD) advancing over 5%.
The index's gains were capped by losses at the country's largest lender, First Abu Dhabi Bank (FAB.AD), which was down 0.6%.
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 0.4% fall in Emirates NBD Bank (ENBD.DU) and a 1.5% decline in budget airline Air Arabia (AIRA.DU).
The United Arab Emirates has approved Moderna Inc's (MRNA.O) COVID-19 vaccine for emergency use, the fifth vaccine to receive such approval from the Gulf Arab state. read more
The UAE, with a population of about 9.2 million, has reported the spread of the Beta, Delta and Alpha variants in the country. read more
Saudi Arabia's benchmark index (.TASI) lost 0.3%, pressured by a 1.1% fall in Saudi Telecom Company (7010.SE) and a 0.7% drop in petrochemical company Saudi Basic Industries (2010.SE).
OPEC+ ministers were resuming talks on Monday after failing to reach a deal on oil output policy in two days of talks last week, amid a rare public standoff between Gulf allies Saudi Arabia and the United Arab Emirates. read more
The spat erupted at a sensitive time for the oil market and could delay plans to pump more oil through to the end of the year to cool global oil prices that have soared to 2-1/2 year highs. Brent was trading around $76 on Monday.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
The Qatari index (.QSI) fell 0.2%, with Qatar National Bank (QNBK.QA) losing 0.3%.
#AbuDhabi cancels $3 bln airport terminal contract, sources say | Reuters
Abu Dhabi cancels $3 bln airport terminal contract, sources say | Reuters
Abu Dhabi's state-owned airport operator has cancelled a contract with a consortium which was building a 10.8 billion dirham ($2.94 billion) terminal at the emirate's main airport, four sources familiar with the matter told Reuters.
The group, which comprises United Arab Emirates-based Arabtec, Turkey's TAV Insaat and Athens-based Consolidated Contractors Company (CCC), were awarded the contract in 2012 to build the Midfield Terminal Building at Abu Dhabi International Airport.
One of the sources said state-owned Abu Dhabi Airports cancelled the contract after the group over ran project costs.
Abu Dhabi Airports and TAV Insaat declined comment. Arabtec, which filed for liquidation in January, and CCC representatives could not be reached for comment.
The terminal, which is still under construction and was once scheduled to open in 2017, has been plagued by years of delays. Abu Dhabi Airports in 2019 said that construction of the new terminal was 97.6% complete.
Two sources said Abu Dhabi-headquartered Trojan had been awarded the contract to finish the terminal's construction.
Trojan did not respond to a request for comment.
The new 700,000 square metre terminal was supposed to support the growth of Abu Dhabi's Etihad Airways. When the project was launched, the state-owned airline was seeking to build a major transit hub in the UAE capital, but it has restructured and scaled back its ambitions since then.
The contract cancellation also comes amid a deep pandemic-driven recession in the travel industry that is forecast to take years to recover.
Abu Dhabi's state-owned airport operator has cancelled a contract with a consortium which was building a 10.8 billion dirham ($2.94 billion) terminal at the emirate's main airport, four sources familiar with the matter told Reuters.
The group, which comprises United Arab Emirates-based Arabtec, Turkey's TAV Insaat and Athens-based Consolidated Contractors Company (CCC), were awarded the contract in 2012 to build the Midfield Terminal Building at Abu Dhabi International Airport.
One of the sources said state-owned Abu Dhabi Airports cancelled the contract after the group over ran project costs.
Abu Dhabi Airports and TAV Insaat declined comment. Arabtec, which filed for liquidation in January, and CCC representatives could not be reached for comment.
The terminal, which is still under construction and was once scheduled to open in 2017, has been plagued by years of delays. Abu Dhabi Airports in 2019 said that construction of the new terminal was 97.6% complete.
Two sources said Abu Dhabi-headquartered Trojan had been awarded the contract to finish the terminal's construction.
Trojan did not respond to a request for comment.
The new 700,000 square metre terminal was supposed to support the growth of Abu Dhabi's Etihad Airways. When the project was launched, the state-owned airline was seeking to build a major transit hub in the UAE capital, but it has restructured and scaled back its ambitions since then.
The contract cancellation also comes amid a deep pandemic-driven recession in the travel industry that is forecast to take years to recover.
#SaudiArabia Excludes Imports From Gulf’s Free Zones and Israel - Bloomberg
Saudi Arabia Excludes Imports From Gulf’s Free Zones and Israel - Bloomberg
Saudi Arabia said its tariff agreement on imports from neighboring Gulf countries will exclude goods made in free zones or from Israel.
According to a ministerial decree published Saturday in the Saudi official gazette Umm al-Qura, products coming out of free zones across the six-member Gulf Cooperation Council will be handled as if they were foreign imports. The decree also excludes goods using input from Israel, or from firms partially or fully owned by Israeli companies, from preferential tariffs.
In the neighboring United Arab Emirates, free zones -- where firms operate under a different set of regulations than the rest of the country -- are a key pillar of the economy. Saudi Arabia has been increasing pressure on international firms to shift their Middle East hubs to the kingdom, posing a direct challenge to Dubai as a regional rivalry heats up.
“Saudi Arabia will exclude from the GCC tariff agreement goods made by companies with a workforce made up of less than 25% of local people and industrial products with less than 40% of added value after their transformation process,” the decree said.
Saudi Arabia said its tariff agreement on imports from neighboring Gulf countries will exclude goods made in free zones or from Israel.
According to a ministerial decree published Saturday in the Saudi official gazette Umm al-Qura, products coming out of free zones across the six-member Gulf Cooperation Council will be handled as if they were foreign imports. The decree also excludes goods using input from Israel, or from firms partially or fully owned by Israeli companies, from preferential tariffs.
In the neighboring United Arab Emirates, free zones -- where firms operate under a different set of regulations than the rest of the country -- are a key pillar of the economy. Saudi Arabia has been increasing pressure on international firms to shift their Middle East hubs to the kingdom, posing a direct challenge to Dubai as a regional rivalry heats up.
“Saudi Arabia will exclude from the GCC tariff agreement goods made by companies with a workforce made up of less than 25% of local people and industrial products with less than 40% of added value after their transformation process,” the decree said.
COVID-19's Delta+ variant delays #UAE and global airlines' 'summer of hope' | Aviation – Gulf News
COVID-19's Delta+ variant delays UAE and global airlines' 'summer of hope' | Aviation – Gulf News
The ‘summer of hope’ for UAE and other global airlines is yet to take-off, with the ‘Delta plus’ variant of the COVID-19 bringing about further delays. The variant, which has become more apparent in India’s latest COVID-19 infections, has sparked concerns of a third wave – and forcing governments everywhere to bring back stringent measures.
“People from high variant locations, including India and the UK, are going to struggle to be allowed into other countries while there are uneven rates of vaccination around the world,” said Andrew Charlton, an aviation analyst. “We are living in a global Petri dish - and we need to be patient.”
That’s not it, UAE’s recently established travel corridors – which allow passengers to fly quarantine free – could be affected as well. The Delta plus variant “will totally undermine the hastily built travel corridors and things will remain less than ideal,” said Charlton.
Emirates and Etihad have extended their ban on flights from a handful of countries, including India. Meanwhile, Saudi Arabia has suspended flights from four countries, including the UAE, due to COVID-19 concerns. This is bad news for UAE’s airlines who were looking to bring back almost 2019-level air connectivity levels by the end of this year.
The ‘summer of hope’ for UAE and other global airlines is yet to take-off, with the ‘Delta plus’ variant of the COVID-19 bringing about further delays. The variant, which has become more apparent in India’s latest COVID-19 infections, has sparked concerns of a third wave – and forcing governments everywhere to bring back stringent measures.
“People from high variant locations, including India and the UK, are going to struggle to be allowed into other countries while there are uneven rates of vaccination around the world,” said Andrew Charlton, an aviation analyst. “We are living in a global Petri dish - and we need to be patient.”
That’s not it, UAE’s recently established travel corridors – which allow passengers to fly quarantine free – could be affected as well. The Delta plus variant “will totally undermine the hastily built travel corridors and things will remain less than ideal,” said Charlton.
Emirates and Etihad have extended their ban on flights from a handful of countries, including India. Meanwhile, Saudi Arabia has suspended flights from four countries, including the UAE, due to COVID-19 concerns. This is bad news for UAE’s airlines who were looking to bring back almost 2019-level air connectivity levels by the end of this year.
#AbuDhabi royalty-owned company hires banks for dollar sukuk - document | Reuters
Abu Dhabi royalty-owned company hires banks for dollar sukuk - document | Reuters
The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan, owned by members of Abu Dhabi's ruling family, has hired banks for a sale of five-year U.S. dollar-denominated sukuk, or Islamic bonds, a document showed on Monday.
The company, which owns a portfolio of mainly residential real estate in Abu Dhabi, hired Emirates NBD Capital and First Abu Dhabi Bank as global coordinators. Abu Dhabi Commercial Bank, Dubai Islamic Bank and Mashreqbank will join them in arranging fixed income investor calls starting on Monday, the document from one of the banks showed.
A sukuk issue under the company's $1 billion trust certificate issuance programme will follow, subject to market conditions.
The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan, owned by members of Abu Dhabi's ruling family, has hired banks for a sale of five-year U.S. dollar-denominated sukuk, or Islamic bonds, a document showed on Monday.
The company, which owns a portfolio of mainly residential real estate in Abu Dhabi, hired Emirates NBD Capital and First Abu Dhabi Bank as global coordinators. Abu Dhabi Commercial Bank, Dubai Islamic Bank and Mashreqbank will join them in arranging fixed income investor calls starting on Monday, the document from one of the banks showed.
A sukuk issue under the company's $1 billion trust certificate issuance programme will follow, subject to market conditions.
#UAE Business Conditions Improve at Slower Pace; Employment Rises - Bloomberg
UAE Business Conditions Improve at Slower Pace; Employment Rises - Bloomberg
Business conditions in the United Arab Emirates improved at a slightly weaker rate last month as coronavirus-linked measures and flight cancellations slowed gains in the Middle East’s business and travel hub.
Non-oil business activity in the Persian Gulf nation inched down to the lowest in four months, IHS Markit’s Purchasing Managers’ Index showed on Monday. There was a sharp drop in foreign sales as businesses reported a time lag in supplies of raw materials.
However, employment rose for the first time since January and at the quickest pace in more than two years.
“Business conditions continued to improve at only a gradual pace in June, adding evidence to a mixed initial recovery from Covid-19 in the UAE non-oil sector,” said David Owen, economist at IHS Markit.
The U.S. last week raised its travel warning for the UAE to its highest level due to the virus. In Saudi Arabia, which has banned its citizens from traveling to the UAE without receiving prior approval, business conditions continued an upward trend.
New business growth in the kingdom was at the highest level in five months. Job creation also rose at the fastest pace since late 2019, but was modest overall, IHS Markit said.
Business conditions in the United Arab Emirates improved at a slightly weaker rate last month as coronavirus-linked measures and flight cancellations slowed gains in the Middle East’s business and travel hub.
Non-oil business activity in the Persian Gulf nation inched down to the lowest in four months, IHS Markit’s Purchasing Managers’ Index showed on Monday. There was a sharp drop in foreign sales as businesses reported a time lag in supplies of raw materials.
However, employment rose for the first time since January and at the quickest pace in more than two years.
“Business conditions continued to improve at only a gradual pace in June, adding evidence to a mixed initial recovery from Covid-19 in the UAE non-oil sector,” said David Owen, economist at IHS Markit.
The U.S. last week raised its travel warning for the UAE to its highest level due to the virus. In Saudi Arabia, which has banned its citizens from traveling to the UAE without receiving prior approval, business conditions continued an upward trend.
New business growth in the kingdom was at the highest level in five months. Job creation also rose at the fastest pace since late 2019, but was modest overall, IHS Markit said.
- The UAE’s PMI dropped to 52.2 in June from 52.3 the month before.
- The gauge slipped to the lowest since February, amid a slower upturn in new orders.
- Shortages in raw materials pushed input prices up by the fastest pace in three months, resulting in firms raising charges for a second time in about three years.
- Outlook for future activity improved for a seventh straight month, though it was mild.
- The rate of growth for demand slipped for a second month but firms noted an improvement in customer demand
- Saudi PMI was at 56.4 in June, unchanged from May.
- Gauge mainly lifted by the fastest upturn in new orders since the beginning of 2021.
- Input prices increased but there were indications that inflationary pressures have peaked.
- New business inflows rose significantly as a result of better demand conditions; orders from abroad rose but overall demand growth was mainly a result of increasing domestic sales.
- Business confidence was at a five-month-high with companies expecting further easing of Covid-19 measures.
MIDEAST STOCKS #AbuDhabi hits record high; other major Gulf bourses ease | Reuters
MIDEAST STOCKS Abu Dhabi hits record high; other major Gulf bourses ease | Reuters
Abu Dhabi stocks rose to a record high in early trade on Monday, led by gains in International Holding (IHC) as the company continued a rally following the listing of a subsidiary.
IHC's market capitalisation hit 201.7 billion dirhams ($54.92 billion) last week, making it Abu Dhabi's most valuable listed company, after the market debut of Alpha Dhabi (ALPHADHABI.AD), in which IHC holds a 45% stake. read more
In Abu Dhabi, the index (.ADI) gained 1%, with International Holding (IHC.AD) advancing over 5%.
The index's gains were capped by losses at the country's largest lender, First Abu Dhabi Bank (FAB.AD), which was down 0.6%.
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 0.4% fall in Emirates NBD Bank (ENBD.DU) and a 1.5% decline in budget airline Air Arabia (AIRA.DU).
The United Arab Emirates has approved Moderna Inc's (MRNA.O) COVID-19 vaccine for emergency use, the fifth vaccine to receive such approval from the Gulf Arab state. read more
The UAE, with a population of about 9.2 million, has reported the spread of the Beta, Delta and Alpha variants in the country. read more
Saudi Arabia's benchmark index (.TASI) lost 0.3%, pressured by a 1.1% fall in Saudi Telecom Company (7010.SE) and a 0.7% drop in petrochemical company Saudi Basic Industries (2010.SE).
OPEC+ ministers were resuming talks on Monday after failing to reach a deal on oil output policy in two days of talks last week, amid a rare public standoff between Gulf allies Saudi Arabia and the United Arab Emirates. read more
The spat erupted at a sensitive time for the oil market and could delay plans to pump more oil through to the end of the year to cool global oil prices that have soared to 2-1/2 year highs. Brent was trading around $76 on Monday.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
The Qatari index (.QSI) fell 0.2%, with Qatar National Bank (QNBK.QA) losing 0.3%.
Abu Dhabi stocks rose to a record high in early trade on Monday, led by gains in International Holding (IHC) as the company continued a rally following the listing of a subsidiary.
IHC's market capitalisation hit 201.7 billion dirhams ($54.92 billion) last week, making it Abu Dhabi's most valuable listed company, after the market debut of Alpha Dhabi (ALPHADHABI.AD), in which IHC holds a 45% stake. read more
In Abu Dhabi, the index (.ADI) gained 1%, with International Holding (IHC.AD) advancing over 5%.
The index's gains were capped by losses at the country's largest lender, First Abu Dhabi Bank (FAB.AD), which was down 0.6%.
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 0.4% fall in Emirates NBD Bank (ENBD.DU) and a 1.5% decline in budget airline Air Arabia (AIRA.DU).
The United Arab Emirates has approved Moderna Inc's (MRNA.O) COVID-19 vaccine for emergency use, the fifth vaccine to receive such approval from the Gulf Arab state. read more
The UAE, with a population of about 9.2 million, has reported the spread of the Beta, Delta and Alpha variants in the country. read more
Saudi Arabia's benchmark index (.TASI) lost 0.3%, pressured by a 1.1% fall in Saudi Telecom Company (7010.SE) and a 0.7% drop in petrochemical company Saudi Basic Industries (2010.SE).
OPEC+ ministers were resuming talks on Monday after failing to reach a deal on oil output policy in two days of talks last week, amid a rare public standoff between Gulf allies Saudi Arabia and the United Arab Emirates. read more
The spat erupted at a sensitive time for the oil market and could delay plans to pump more oil through to the end of the year to cool global oil prices that have soared to 2-1/2 year highs. Brent was trading around $76 on Monday.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
The Qatari index (.QSI) fell 0.2%, with Qatar National Bank (QNBK.QA) losing 0.3%.
Oil edges up as OPEC+ seeks to break impasse over supply | Reuters
Oil edges up as OPEC+ seeks to break impasse over supply | Reuters
Oil prices were slightly up on Monday with investors and traders awaiting crucial talks by OPEC+ following disagreement over output within the group that could lead to major producers pumping up volumes to grab market share.
Brent crude was up 15 cents, or 0.2%, at $76.32 a barrel by 0558 GMT, after slipping 1 cent last week, the first weekly decline in six. U.S. oil gained 12 cents, or 0.5%, to $75.28 a barrel, having risen 1.5% last week, the sixth consecutive week of gains for the contract.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, voted on Friday to increase production by about 2 million barrels a day from August to December 2021 and to extend the remaining output cuts to the end of 2022, but objections from the United Arab Emirates (UAE) prevented an agreement. read more
It was a rare public disagreement between members of the group, with national interests increasingly diverging, which is impacting OPEC+ policy as oil users want more crude as their economies recover from the COVID-19 pandemic.
"Failing to come to a deal may provide some brief upside to the market," ING Economics said in a note.
Oil prices were slightly up on Monday with investors and traders awaiting crucial talks by OPEC+ following disagreement over output within the group that could lead to major producers pumping up volumes to grab market share.
Brent crude was up 15 cents, or 0.2%, at $76.32 a barrel by 0558 GMT, after slipping 1 cent last week, the first weekly decline in six. U.S. oil gained 12 cents, or 0.5%, to $75.28 a barrel, having risen 1.5% last week, the sixth consecutive week of gains for the contract.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, voted on Friday to increase production by about 2 million barrels a day from August to December 2021 and to extend the remaining output cuts to the end of 2022, but objections from the United Arab Emirates (UAE) prevented an agreement. read more
It was a rare public disagreement between members of the group, with national interests increasingly diverging, which is impacting OPEC+ policy as oil users want more crude as their economies recover from the COVID-19 pandemic.
"Failing to come to a deal may provide some brief upside to the market," ING Economics said in a note.
OPEC+ Crisis Deepens as #SaudiArabia Refuses to Budge - Bloomberg video
OPEC+ Crisis Deepens as Saudi Arabia Refuses to Budge - Bloomberg
Saudi Arabia and the United Arab Emirates cranked up the tension in their OPEC standoff as the rare diplomatic spat between long-time allies leaves the global economy guessing how much oil it will get next month.
The bitter clash has forced OPEC+ to halt talks twice already, with the next meeting scheduled for Monday, putting markets in limbo as oil continues its inflationary surge above $75 a barrel. With the cartel discussing its production policy not only for the rest of the year, but also into 2022, the solution to the standoff will shape the market and industry into next year.
The fight between the two key producers broke into public view on Sunday with both countries, which typically keep their grievances within the walls of the royal palaces, airing their differences on television.
Riyadh insisted on its plan, backed by other OPEC+ members including Russia, that the group should increase production over the next few months, but also extend its broader agreement until the end of 2022 for the sake of stability.
“We have to extend,” Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with Bloomberg Television on Sunday night. “The extension puts lots people in their comfort zone.”
In an indication of the seriousness of the diplomatic dispute, Prince Abdulaziz signaled that Abu Dhabi was isolated within the OPEC+ alliance. “It’s the whole group versus one country, which is sad to me but this is the reality.”
The bitter clash has forced OPEC+ to halt talks twice already, with the next meeting scheduled for Monday, putting markets in limbo as oil continues its inflationary surge above $75 a barrel. With the cartel discussing its production policy not only for the rest of the year, but also into 2022, the solution to the standoff will shape the market and industry into next year.
The fight between the two key producers broke into public view on Sunday with both countries, which typically keep their grievances within the walls of the royal palaces, airing their differences on television.
Riyadh insisted on its plan, backed by other OPEC+ members including Russia, that the group should increase production over the next few months, but also extend its broader agreement until the end of 2022 for the sake of stability.
“We have to extend,” Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with Bloomberg Television on Sunday night. “The extension puts lots people in their comfort zone.”
In an indication of the seriousness of the diplomatic dispute, Prince Abdulaziz signaled that Abu Dhabi was isolated within the OPEC+ alliance. “It’s the whole group versus one country, which is sad to me but this is the reality.”