Oil settles lower in volatile trade on worries about Delta variant | Reuters
Oil settled lower on Tuesday in volatile trade, as concern about rising cases of the Delta coronavirus variant outweighed expectations for another weekly draw in U.S. invesntories that had boosted prices early.
Brent crude oil futures settled down 48 cents, or 0.66% at $72.41 a barrel. U.S. West Texas Intermediate (WTI) crude settled down 70 cents, or 0.98% at $70.56 a barrel.
Concerns over the spread of Delta variant in the United States and China, the top oil consumers, weighed on prices, with both benchmarks falling more than 3% at one point.
In China, the spread of the variant from the coast to inland cities has prompted authorities to impose strict measures to bring the outbreak under control. read more
"The news flow out of China has been bearish since the weekend," said John Kilduff, a partner at Again Capital Management in New York. "There continues to be angst about the COVID-19 situation, which weighs on the petroleum complex the most."
Tuesday 3 August 2021
Oil Sinks a Second Day With Delta’s Spread a Menace to Demand - Bloomberg
Oil Sinks a Second Day With Delta’s Spread a Menace to Demand - Bloomberg
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#AbuDhabi National Energy Co nears deal to sell some Canadian assets to Blue Sky -sources | Reuters
Abu Dhabi National Energy Co nears deal to sell some Canadian assets to Blue Sky -sources | Reuters
Abu Dhabi National Energy Company (TAQA.AD) is nearing a deal to sell some light oil and natural gas-producing assets in Alberta and British Columbia to privately owned Blue Sky Resources Ltd, three sources familiar with the matter told Reuters.
Abu Dhabi National Energy Company, also called TAQA, has reached an agreement on terms of the sale to Blue Sky and the deal is now awaiting approval from the Alberta Energy Board, one of the sources said.
Reuters could not immediately learn the deal value or other terms.
The sources declined to be identified as the information is not public. They cautioned the Alberta regulator could reject the deal.
"If and when any deal is finalized and approved by the relevant authorities, we will make an announcement in line with regulatory requirements," TAQA told Reuters in an emailed response.
Blue Sky did not respond to a request for comment.
Abu Dhabi National Energy Company (TAQA.AD) is nearing a deal to sell some light oil and natural gas-producing assets in Alberta and British Columbia to privately owned Blue Sky Resources Ltd, three sources familiar with the matter told Reuters.
Abu Dhabi National Energy Company, also called TAQA, has reached an agreement on terms of the sale to Blue Sky and the deal is now awaiting approval from the Alberta Energy Board, one of the sources said.
Reuters could not immediately learn the deal value or other terms.
The sources declined to be identified as the information is not public. They cautioned the Alberta regulator could reject the deal.
"If and when any deal is finalized and approved by the relevant authorities, we will make an announcement in line with regulatory requirements," TAQA told Reuters in an emailed response.
Blue Sky did not respond to a request for comment.
#Kuwait Finance House Q2 profit more than triples | Reuters
Kuwait Finance House Q2 profit more than triples | Reuters
Kuwait Finance House (KFH.KW), a Sharia-compliant bank, said on Tuesday net profit for the second quarter more than tripled due to a decrease in provisions and impairments.
Net profit rose to 52 million dinars ($173.37 million) in the period ended June 30, from 12.6 million dinars in the year earlier period.
The company plans to hold an analyst call on August 10, it said in a disclosure attached to its financial statements, published on the Kuwaiti bourse website.
Kuwaiti banks’ earnings were hit last year by the effects of the coronavirus pandemic and relative weakness in oil prices, impacting the Gulf state’s economy.
Kuwait Finance House (KFH.KW), a Sharia-compliant bank, said on Tuesday net profit for the second quarter more than tripled due to a decrease in provisions and impairments.
Net profit rose to 52 million dinars ($173.37 million) in the period ended June 30, from 12.6 million dinars in the year earlier period.
The company plans to hold an analyst call on August 10, it said in a disclosure attached to its financial statements, published on the Kuwaiti bourse website.
Kuwaiti banks’ earnings were hit last year by the effects of the coronavirus pandemic and relative weakness in oil prices, impacting the Gulf state’s economy.
MIDEAST STOCKS #Saudi leads major Gulf markets higher; blue-chip selloff hits Egypt | Reuters
MIDEAST STOCKS Saudi leads major Gulf markets higher; blue-chip selloff hits Egypt | Reuters
Major stock markets in the Gulf ended higher on Tuesday, with the Saudi index gaining for a twelfth consecutive session, while a blue-chip selloff dragged the Egyptian bourse.
Saudi Arabia's benchmark index (.TASI) reversed early losses to close 0.5% higher, led by a 1.2% gain in Al Rajhi Bank (1120.SE) and a 2.2% increase in Saudi National Bank (1180.SE), the kingdom's largest lender.
On Sunday, Al Rajhi posted a 48% jump in quarterly profit, helped by an increase in net financing and investment income, and fees from banking services. read more
On the other hand, Bank Aljazira (1020.SE) retreated about 4%. The lender reported a higher second-quarter net profit, however, saw a decrease sequentially in earnings.
Saudi banks have benefited from growth in mortgages and an economic recovery this year following the easing of the lockdowns imposed to combat the outbreak of coronavirus.
Dubai's main share index (.DFMGI) added 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) rising 0.8% and its unit Emaar Malls (EMAA.DU) advancing 2.1%.
In Abu Dhabi, the index (.ADI) gained 0.4%, suported by a 1.1% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).
The United Arab Emirates' non-oil private sector expanded at its fastest pace in two years in July as demand rebounded from the COVID-19 pandemic, a business survey showed. read more
The Qatari benchmark (.QSI) finished 0.2% higher, with Qatar Islamic Bank (QISB.QA) rising 0.5%, while Qatar Aluminium Co (QAMC.QA) climbed 3.4%.
The aluminium maker is scheduled to report its first-half earnings on Thursday.
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.8%, as most of the stocks on the index were in negative territory including Fawry for Banking Technology and Electronics (FWRY.CA).
Egypt's central bank is expected to leave its overnight interest rates on hold at a meeting on Thursday, a Reuters poll shows, as mounting global and local inflationary pressures caution against a reduction.
Major stock markets in the Gulf ended higher on Tuesday, with the Saudi index gaining for a twelfth consecutive session, while a blue-chip selloff dragged the Egyptian bourse.
Saudi Arabia's benchmark index (.TASI) reversed early losses to close 0.5% higher, led by a 1.2% gain in Al Rajhi Bank (1120.SE) and a 2.2% increase in Saudi National Bank (1180.SE), the kingdom's largest lender.
On Sunday, Al Rajhi posted a 48% jump in quarterly profit, helped by an increase in net financing and investment income, and fees from banking services. read more
On the other hand, Bank Aljazira (1020.SE) retreated about 4%. The lender reported a higher second-quarter net profit, however, saw a decrease sequentially in earnings.
Saudi banks have benefited from growth in mortgages and an economic recovery this year following the easing of the lockdowns imposed to combat the outbreak of coronavirus.
Dubai's main share index (.DFMGI) added 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) rising 0.8% and its unit Emaar Malls (EMAA.DU) advancing 2.1%.
In Abu Dhabi, the index (.ADI) gained 0.4%, suported by a 1.1% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).
The United Arab Emirates' non-oil private sector expanded at its fastest pace in two years in July as demand rebounded from the COVID-19 pandemic, a business survey showed. read more
The Qatari benchmark (.QSI) finished 0.2% higher, with Qatar Islamic Bank (QISB.QA) rising 0.5%, while Qatar Aluminium Co (QAMC.QA) climbed 3.4%.
The aluminium maker is scheduled to report its first-half earnings on Thursday.
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.8%, as most of the stocks on the index were in negative territory including Fawry for Banking Technology and Electronics (FWRY.CA).
Egypt's central bank is expected to leave its overnight interest rates on hold at a meeting on Thursday, a Reuters poll shows, as mounting global and local inflationary pressures caution against a reduction.
Iran’s Rapid Oil Comeback Looks Less Likely After Tanker Attack - Bloomberg
Iran’s Rapid Oil Comeback Looks Less Likely After Tanker Attack - Bloomberg
Iran’s oil comeback, already taking longer than many traders expected, will be further complicated by last week’s deadly drone attack on a tanker in the Gulf of Oman, which the U.S., U.K. and Israel all blamed on Tehran.
With talks held up by a change of presidency in Tehran, the incident adds friction to a process that could return 1 million barrels of oil a day to the global market within months. Even if the allies decide against a military response, Washington may be less willing to ease sanctions on the Islamic Republic’s energy exports.
“It looks inevitable that this will cast a black cloud over nuclear talks” between Iran and world powers including the U.S., said Bill Farren-Price, a director at energy-research firm Enverus.
The negotiations -- to revive a 2015 pact that limited Iran’s atomic program in return for sanctions relief -- had already stalled. A sixth round in Vienna broke up last month. Diplomats are waiting for Iran to re-enter talks now that Ebrahim Raisi, an austere cleric who has long argued against a rapprochement with the U.S., has become president.
Restoring the Joint Comprehensive Plan of Action -- which then-President Donald Trump pulled the U.S. out of in 2018 -- is key to Iran’s ability to increase oil production. Its crude exports have plummeted to almost nothing from more than 2 million barrels a day in mid-2018.
Many oil investors had expected a new nuclear deal before Iran’s elections in mid-June.
Iran’s oil comeback, already taking longer than many traders expected, will be further complicated by last week’s deadly drone attack on a tanker in the Gulf of Oman, which the U.S., U.K. and Israel all blamed on Tehran.
With talks held up by a change of presidency in Tehran, the incident adds friction to a process that could return 1 million barrels of oil a day to the global market within months. Even if the allies decide against a military response, Washington may be less willing to ease sanctions on the Islamic Republic’s energy exports.
“It looks inevitable that this will cast a black cloud over nuclear talks” between Iran and world powers including the U.S., said Bill Farren-Price, a director at energy-research firm Enverus.
The negotiations -- to revive a 2015 pact that limited Iran’s atomic program in return for sanctions relief -- had already stalled. A sixth round in Vienna broke up last month. Diplomats are waiting for Iran to re-enter talks now that Ebrahim Raisi, an austere cleric who has long argued against a rapprochement with the U.S., has become president.
Restoring the Joint Comprehensive Plan of Action -- which then-President Donald Trump pulled the U.S. out of in 2018 -- is key to Iran’s ability to increase oil production. Its crude exports have plummeted to almost nothing from more than 2 million barrels a day in mid-2018.
Many oil investors had expected a new nuclear deal before Iran’s elections in mid-June.
#Qatar's non-oil business economy improves in July - PMI | ZAWYA MENA Edition
Qatar's non-oil business economy improves in July - PMI | ZAWYA MENA Edition
Business conditions in Qatar have improved at the start of the second half of 2021, marked with gains in both new business and total activity, alongside rising backlogs and higher employment, according to the IHS Markit PMI survey.
The PMI rose for the second month running from June's 54.6 to 55.9 in July, signalling the strongest overall improving in operating conditions for nearly a year.
Moreover, it was the fourth-highest figure on record, with only October 2017 and July-August 2020 registering stronger readings.
Trevor Balchin, Economics Director at IHS Markit, said: "The PMI signalled stronger underlying growth in the non-energy private sector economy in July, rising for the second straight month to 55.9, the fourth-highest ever reading since the survey began in April 2017."
Total business activity rose at the fastest rate since August 2020 and the third-strongest recorded to date.
Although output growth broadly matched that for new work, the volume of outstanding business rose further in July, indicating sustained pressure from demand on operating capacity.
"Output and new business both rose at the third-fastest rates on record, with only the post-lockdown bounce in
July and August last year seeing stronger month-on-month growth rates for both metrics," Balchin said.
Overall business expectations remained positive in July but remained below the pre-pandemic trend.
Business conditions in Qatar have improved at the start of the second half of 2021, marked with gains in both new business and total activity, alongside rising backlogs and higher employment, according to the IHS Markit PMI survey.
The PMI rose for the second month running from June's 54.6 to 55.9 in July, signalling the strongest overall improving in operating conditions for nearly a year.
Moreover, it was the fourth-highest figure on record, with only October 2017 and July-August 2020 registering stronger readings.
Trevor Balchin, Economics Director at IHS Markit, said: "The PMI signalled stronger underlying growth in the non-energy private sector economy in July, rising for the second straight month to 55.9, the fourth-highest ever reading since the survey began in April 2017."
Total business activity rose at the fastest rate since August 2020 and the third-strongest recorded to date.
Although output growth broadly matched that for new work, the volume of outstanding business rose further in July, indicating sustained pressure from demand on operating capacity.
"Output and new business both rose at the third-fastest rates on record, with only the post-lockdown bounce in
July and August last year seeing stronger month-on-month growth rates for both metrics," Balchin said.
Overall business expectations remained positive in July but remained below the pre-pandemic trend.
Oil rises as markets expect further fall in inventories | Reuters
Oil rises as markets expect further fall in inventories | Reuters
Oil prices rose on Tuesday on expectation of a further decline in U.S. oil inventories, recouping some losses from the previous session due to lingering concern over rising cases of the Delta coronavirus variant.
Brent , the international benchmark for oil prices, was 29 cents, or 0.4% higher, at $73.18 a barrel, by 1111 GMT.
U.S. West Texas Intermediate (WTI) crude was up 28 cents, or 0.4%, at $71.54 a barrel.
Both markets dropped more than 3% on Monday.
"Some market participants see Monday’s price set-back as a bit exaggerated, considering that we are likely to see another decline in oil inventory this week," UBS analyst Giovanni Staunovo said.
Oil prices rose on Tuesday on expectation of a further decline in U.S. oil inventories, recouping some losses from the previous session due to lingering concern over rising cases of the Delta coronavirus variant.
Brent , the international benchmark for oil prices, was 29 cents, or 0.4% higher, at $73.18 a barrel, by 1111 GMT.
U.S. West Texas Intermediate (WTI) crude was up 28 cents, or 0.4%, at $71.54 a barrel.
Both markets dropped more than 3% on Monday.
"Some market participants see Monday’s price set-back as a bit exaggerated, considering that we are likely to see another decline in oil inventory this week," UBS analyst Giovanni Staunovo said.
Al Mal's El-Haddad: Careful Playing the Re-Opening Trade - Bloomberg video #SaudiArabia
Al Mal's El-Haddad: Careful Playing the Re-Opening Trade - Bloomberg
Sherif El-Haddad, Head of Asset Management at Al Mal Capital discusses the reason behind the spike in the Saudi Tadawul benchmark after Saudi banks reported strong estimates-beating earnings. He also gives his insights on the UAE's PMI. The index rises to 54 from 52.2 in June. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
Major stock markets in the Gulf were mixed in early trade on Tuesday, with the Saudi index on course to end eleven straight sessions of gains.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, with Saudi Telecom Co (STC) (7010.SE) losing 1.6% and Al Jazira Bank (1020.SE) retreating about 4%.
The two companies reported a higher second-quarter net profit, however, they saw a decrease sequentially in earnings.
Among other decliners, National Shipping Company Of Saudi Arabia (4030.SE) dropped 1.7% after reporting a sharp decline in quarterly net profit.
The kingdom's non-oil private sector continued to expand in July but at a slower pace, according to a business survey, signalling that business conditions remain difficult as the largest Arab economy recovers from the coronavirus crisis. read more
Dubai's main share index (.DFMGI) added 0.3% driven by a 2.3% rise in shares of diversified investment group Dubai Investments (DINV.DU).
In Abu Dhabi, the index (.ADI) edged up 0.1%, helped by the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 0.5%.
The United Arab Emirates' non-oil private sector expanded at its fastest pace in two years in July as demand rebounded from the COVID-19 pandemic, a business survey showed. read more
The Qatari benchmark (.QSI) eased 0.1%, pressured by shares of petrochemical maker Mesaieed Petrochemical Holding (MPHC.QA), which fell 1%.
Major stock markets in the Gulf were mixed in early trade on Tuesday, with the Saudi index on course to end eleven straight sessions of gains.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, with Saudi Telecom Co (STC) (7010.SE) losing 1.6% and Al Jazira Bank (1020.SE) retreating about 4%.
The two companies reported a higher second-quarter net profit, however, they saw a decrease sequentially in earnings.
Among other decliners, National Shipping Company Of Saudi Arabia (4030.SE) dropped 1.7% after reporting a sharp decline in quarterly net profit.
The kingdom's non-oil private sector continued to expand in July but at a slower pace, according to a business survey, signalling that business conditions remain difficult as the largest Arab economy recovers from the coronavirus crisis. read more
Dubai's main share index (.DFMGI) added 0.3% driven by a 2.3% rise in shares of diversified investment group Dubai Investments (DINV.DU).
In Abu Dhabi, the index (.ADI) edged up 0.1%, helped by the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 0.5%.
The United Arab Emirates' non-oil private sector expanded at its fastest pace in two years in July as demand rebounded from the COVID-19 pandemic, a business survey showed. read more
The Qatari benchmark (.QSI) eased 0.1%, pressured by shares of petrochemical maker Mesaieed Petrochemical Holding (MPHC.QA), which fell 1%.
#Kuwait wealth fund KIA appoints new board of directors | ZAWYA MENA Edition
Kuwait wealth fund KIA appoints new board of directors | ZAWYA MENA Edition
The Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has appointed a new board of directors, according to a government official on Tuesday, confirming media reports.
The move was approved by Kuwait's cabinet on Monday, the newspaper al-Qabas said.
The newly appointed board members are Khaled Ali Al-Fadil, Sheikh Mishaal Jaber Al-Ahmad, Fahd Muhammad Al-Rashed, Faisal Abdullatif Yousef Al-Hamad and Ghanem Suleiman Saqr Al-Ghunaiman, al-Qabas said.
They could not immediately be reached for comment.
KIA, which had more than $580 billion in foreign assets at the end of last year according to ratings agency Fitch, manages two funds - one is a nest egg for when oil prices run out, the other is used to cover Kuwait's budget deficit.
The Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has appointed a new board of directors, according to a government official on Tuesday, confirming media reports.
The move was approved by Kuwait's cabinet on Monday, the newspaper al-Qabas said.
The newly appointed board members are Khaled Ali Al-Fadil, Sheikh Mishaal Jaber Al-Ahmad, Fahd Muhammad Al-Rashed, Faisal Abdullatif Yousef Al-Hamad and Ghanem Suleiman Saqr Al-Ghunaiman, al-Qabas said.
They could not immediately be reached for comment.
KIA, which had more than $580 billion in foreign assets at the end of last year according to ratings agency Fitch, manages two funds - one is a nest egg for when oil prices run out, the other is used to cover Kuwait's budget deficit.
Finablr re-branded WizzFinancial, merged into leading payments group | Reuters
Finablr re-branded WizzFinancial, merged into leading payments group | Reuters
The financial consortium that bought struggling payments company Finablr will rebrand it as WizzFinancial and merge it with a newly-purchased Bahraini company to create the largest money transfer group in the region, it said on Tuesday.
Switzerland-headquartered Prism Group AG and Abu Dhabi's Royal Strategic Partners in December bought Abu Dhabi-headquartered payments company Finablr (FINF.L) for a nominal $1 after it ran into financial difficulties after a financial scandal involving Indian entrepreneur BR Shetty erupted last year. read more
The same consortium has bought the Bahrain Financing Company (BFC), which works in money transfer and currency services with a presence in Bahrain, India and Kuwait.
"The deal creates the largest remittance services and currency exchange group in the MENA region and becomes the only operator with a direct presence in all six GCC countries," a WizzFinancial statement said.
"The acquisition creates a regional powerhouse with licences to operate in over 30 countries."
BFC's CEO Ebrahim Ezra Nonoo will lead WizzFinancial's international money transfer business.
"(WizzFinancial is) in the process of consolidating additional remittance providers and alternative financial institutions onto our platform," said Amir Nagammy, a Britain-based Arab-Israeli who is chairman of Prism Group AG.
Prism, founded by Nagammy and Guy Rothschild, has offices in Britain and the United Arab Emirates and invests in financial services companies.
The financial consortium that bought struggling payments company Finablr will rebrand it as WizzFinancial and merge it with a newly-purchased Bahraini company to create the largest money transfer group in the region, it said on Tuesday.
Switzerland-headquartered Prism Group AG and Abu Dhabi's Royal Strategic Partners in December bought Abu Dhabi-headquartered payments company Finablr (FINF.L) for a nominal $1 after it ran into financial difficulties after a financial scandal involving Indian entrepreneur BR Shetty erupted last year. read more
The same consortium has bought the Bahrain Financing Company (BFC), which works in money transfer and currency services with a presence in Bahrain, India and Kuwait.
"The deal creates the largest remittance services and currency exchange group in the MENA region and becomes the only operator with a direct presence in all six GCC countries," a WizzFinancial statement said.
"The acquisition creates a regional powerhouse with licences to operate in over 30 countries."
BFC's CEO Ebrahim Ezra Nonoo will lead WizzFinancial's international money transfer business.
"(WizzFinancial is) in the process of consolidating additional remittance providers and alternative financial institutions onto our platform," said Amir Nagammy, a Britain-based Arab-Israeli who is chairman of Prism Group AG.
Prism, founded by Nagammy and Guy Rothschild, has offices in Britain and the United Arab Emirates and invests in financial services companies.
#Saudi PMI falls in July on weaker output growth, job creation | ZAWYA MENA Edition
Saudi PMI falls in July on weaker output growth, job creation | ZAWYA MENA Edition
While Saudi Arabia’s non-oil economy expanded at the start of the third quarter, output grew at a slower pace and staffing levels increased only marginally, the latest survey of purchasing managers showed Tuesday.
The headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) fell for the first time in four months to 55.8 in July from 56.4 in June.
The dip was driven by weaker growth in output, new orders and employment compared to the previous month. “Nevertheless, the reading pointed to a strong improvement in operating conditions that extended the current run of growth to 11 months,” the report said.
Job creation slowed in the non-oil sector as firms continued to signal an excess of business capacity despite rising sales. Backlogs were reduced solidly, suggesting a wide gap between demand and full capacity in spite of a sharp increase in new orders in recent months
Employment prospects were also harmed by a drop in future output expectations to the joint-weakest for more than a year.
While Saudi Arabia’s non-oil economy expanded at the start of the third quarter, output grew at a slower pace and staffing levels increased only marginally, the latest survey of purchasing managers showed Tuesday.
The headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) fell for the first time in four months to 55.8 in July from 56.4 in June.
The dip was driven by weaker growth in output, new orders and employment compared to the previous month. “Nevertheless, the reading pointed to a strong improvement in operating conditions that extended the current run of growth to 11 months,” the report said.
Job creation slowed in the non-oil sector as firms continued to signal an excess of business capacity despite rising sales. Backlogs were reduced solidly, suggesting a wide gap between demand and full capacity in spite of a sharp increase in new orders in recent months
Employment prospects were also harmed by a drop in future output expectations to the joint-weakest for more than a year.
#UAE Business Conditions at Two-Year High as Virus Woes Ease - Bloomberg
UAE Business Conditions at Two-Year High as Virus Woes Ease - Bloomberg
Business conditions in the United Arab Emirates last month rose to the highest level since 2019 as pandemic restrictions eased.
A Purchasing Managers’ Index compiled by IHS Markit rose to 54 in July from 52.2 in the previous month, remaining above 50, themark that separates growth from contraction. The survey showed business activity improved in the non-oil sector.
“Firms saw the sharpest rise in new orders for two years amid soaring domestic sales and strengthening market confidence,” said David Owen, an economist at IHS Markit. “Output rose in line with this expansion, but was not enough to cover outstanding business which increased to the greatest extent for 16 months.”
Despite the domestic improvement, lockdown measures in other parts of the world led to a drop in export sales in July, as firms turned to local clients for support. Still, growth prospects remained, with companies hoping that Expo 2020 would strengthen economic conditions.
Business conditions in the United Arab Emirates last month rose to the highest level since 2019 as pandemic restrictions eased.
A Purchasing Managers’ Index compiled by IHS Markit rose to 54 in July from 52.2 in the previous month, remaining above 50, themark that separates growth from contraction. The survey showed business activity improved in the non-oil sector.
“Firms saw the sharpest rise in new orders for two years amid soaring domestic sales and strengthening market confidence,” said David Owen, an economist at IHS Markit. “Output rose in line with this expansion, but was not enough to cover outstanding business which increased to the greatest extent for 16 months.”
Despite the domestic improvement, lockdown measures in other parts of the world led to a drop in export sales in July, as firms turned to local clients for support. Still, growth prospects remained, with companies hoping that Expo 2020 would strengthen economic conditions.
Analysis: Riding the oil price rebound: Gulf states to accelerate asset sales | Reuters
Analysis: Riding the oil price rebound: Gulf states to accelerate asset sales | Reuters
Saudi Aramco and other Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors.
The moves, in a region traditionally possessive of its refineries, power plants and pipelines, highlight the pressure on petrostates to raise funds to diversify their sources of revenue and to bolster national finances hit by a recent slump in oil prices and the coronavirus pandemic.
After selling a significant minority stake in its oil pipelines to foreign investors for $12.4 billion in June, Saudi Aramco (2222.SE) is weighing selling both downstream and upstream assets, two people familiar with the matter said.
Aramco is looking to sell its gas pipelines under a leaseback arrangement, and could offer stakes in refineries, power plants, and potentially export terminals in the future, the people said.
Stakes in upstream projects such as hydrogen could also be offered to strategic investors, one of the sources said.
Smaller producers Oman and Bahrain are also contemplating similar asset sales, other sources said.
Saudi Aramco and other Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors.
The moves, in a region traditionally possessive of its refineries, power plants and pipelines, highlight the pressure on petrostates to raise funds to diversify their sources of revenue and to bolster national finances hit by a recent slump in oil prices and the coronavirus pandemic.
After selling a significant minority stake in its oil pipelines to foreign investors for $12.4 billion in June, Saudi Aramco (2222.SE) is weighing selling both downstream and upstream assets, two people familiar with the matter said.
Aramco is looking to sell its gas pipelines under a leaseback arrangement, and could offer stakes in refineries, power plants, and potentially export terminals in the future, the people said.
Stakes in upstream projects such as hydrogen could also be offered to strategic investors, one of the sources said.
Smaller producers Oman and Bahrain are also contemplating similar asset sales, other sources said.
Oil prices slip, rebound runs out of steam on demand worries | Reuters
Oil prices slip, rebound runs out of steam on demand worries | Reuters
Crude oil prices reversed course after an early bounce on Tuesday, as concerns over coronavirus curbs combined with slowing factory activity in key markets weighed on sentiment.
Brent crude oil futures shed 26 cents, or 0.4%, to $72.63 a barrel, as of 0645 GMT. U.S. West Texas Intermediate (WTI) crude was down 16 cents, or 0.2%, at $71.10 a barrel.
Both markets dropped more than 3% on Monday.
ANZ analysts in a note highlighted resurgent economic risks to major oil consumer China from the coronavirus pandemic.
"Cases of the highly contagious Delta variant have emerged in 14 of 32 provinces. This could see further mobility restrictions introduced," ANZ analysts wrote.
Crude oil prices reversed course after an early bounce on Tuesday, as concerns over coronavirus curbs combined with slowing factory activity in key markets weighed on sentiment.
Brent crude oil futures shed 26 cents, or 0.4%, to $72.63 a barrel, as of 0645 GMT. U.S. West Texas Intermediate (WTI) crude was down 16 cents, or 0.2%, at $71.10 a barrel.
Both markets dropped more than 3% on Monday.
ANZ analysts in a note highlighted resurgent economic risks to major oil consumer China from the coronavirus pandemic.
"Cases of the highly contagious Delta variant have emerged in 14 of 32 provinces. This could see further mobility restrictions introduced," ANZ analysts wrote.