Oil rises over 1% as Mideast tensions face virus concerns | Reuters
Oil prices rose more than 1% on Thursday on increasing Middle East tensions, but gains were capped as fresh restrictions to counter a surge in COVID-19 cases threatened the global energy demand recovery.
Brent crude oil futures rose 91 cents, or 1.3%, to settle at $71.29 a barrel, after earlier dipping below $70 for the first time since July 21. U.S. West Texas Intermediate (WTI) crude futures rose 94 cents, or 1.4%, to settle at $69.09 a barrel.
Both benchmarks fell more than $2 on Wednesday to a two-week low.
"Yesterday it was really all about concerns about the Delta variant, and then today there were worries that maybe we overdid it," said Phil Flynn, senior analyst at Price Futures Group in Chicago. "We saw an increase in geopolitical risk as well."
Israeli jets struck what its military said were rocket launch sites in Lebanon early on Thursday in response to two rockets fired towards Israel from Lebanese territory, in an escalation of cross-border hostilities amid heightened tensions with Iran. read more
Thursday, 5 August 2021
MIDEAST STOCKS Major Gulf bourses shrug off geopolitical tensions | Reuters
MIDEAST STOCKS Major Gulf bourses shrug off geopolitical tensions | Reuters
Most major stock markets in the Gulf reversed early losses to close higher on Thursday, shrugging off regional tensions, with the Qatar index leading the gains.
Israeli jets struck what its military said were rocket launch sites in Lebanon early on Thursday in response to two rockets fired towards Israel from Lebanese territory, in an escalation of cross-border hostilities. read more
Saudi Arabia's benchmark index (.TASI) rose 0.4%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) advancing 3.1% and Sahara International Petrochemical Co (2310.SE) climbing 4.2%.
Tanmiah Food Company (2281.SE) surged over 19%, a day after its stellar debut.
Economies of the Gulf Cooperation Council (GCC) will likely grow at an aggregate 2.2% this year after a 4.8% contraction last year caused by the pandemic and lower oil prices, the World Bank said on Wednesday.
It remains vital for GCC countries - which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates - to diversify their economies, the World Bank said, as oil revenues account for over 70% of total government revenues in most of them.
The Qatari benchmark (.QSI) added 0.6%, led by a 0.6% increase in Qatar National Bank (QNBK.QA) and a 1.2% rise in Commercial Bank (COMB.QA).
Among others, Mesaieed Petrochemical Co (MPHC.QA) finished 0.3% higher.
Post trading hours, the petrochemical maker reported a net profit of 909.4 million riyals ($249.84 million), up from 135.1 million riyals a year earlier.
Dubai's main share index (.DFMGI) added 0.3%, with Emirates NBD Bank (ENBD.DU) gaining 1.1% and blue-chip developer Emaar Properties (EMAR.DU) firming 0.7%.
Dubai's state airport operator expects a surge in passenger traffic over the coming weeks and months, its chief executive said on Wednesday, after the United Arab Emirates announced an easing of travel restrictions from African and Asian countries. read more
The Gulf state, a major international travel hub, on Tuesday said it would lift a ban on transit flights, including from major market India. read more
In Abu Dhabi, the index (.ADI) edged up 0.2%, supported by a 3.2% rise in Aldar Properties (ALDAR.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) was flat.
Most major stock markets in the Gulf reversed early losses to close higher on Thursday, shrugging off regional tensions, with the Qatar index leading the gains.
Israeli jets struck what its military said were rocket launch sites in Lebanon early on Thursday in response to two rockets fired towards Israel from Lebanese territory, in an escalation of cross-border hostilities. read more
Saudi Arabia's benchmark index (.TASI) rose 0.4%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) advancing 3.1% and Sahara International Petrochemical Co (2310.SE) climbing 4.2%.
Tanmiah Food Company (2281.SE) surged over 19%, a day after its stellar debut.
Economies of the Gulf Cooperation Council (GCC) will likely grow at an aggregate 2.2% this year after a 4.8% contraction last year caused by the pandemic and lower oil prices, the World Bank said on Wednesday.
It remains vital for GCC countries - which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates - to diversify their economies, the World Bank said, as oil revenues account for over 70% of total government revenues in most of them.
The Qatari benchmark (.QSI) added 0.6%, led by a 0.6% increase in Qatar National Bank (QNBK.QA) and a 1.2% rise in Commercial Bank (COMB.QA).
Among others, Mesaieed Petrochemical Co (MPHC.QA) finished 0.3% higher.
Post trading hours, the petrochemical maker reported a net profit of 909.4 million riyals ($249.84 million), up from 135.1 million riyals a year earlier.
Dubai's main share index (.DFMGI) added 0.3%, with Emirates NBD Bank (ENBD.DU) gaining 1.1% and blue-chip developer Emaar Properties (EMAR.DU) firming 0.7%.
Dubai's state airport operator expects a surge in passenger traffic over the coming weeks and months, its chief executive said on Wednesday, after the United Arab Emirates announced an easing of travel restrictions from African and Asian countries. read more
The Gulf state, a major international travel hub, on Tuesday said it would lift a ban on transit flights, including from major market India. read more
In Abu Dhabi, the index (.ADI) edged up 0.2%, supported by a 3.2% rise in Aldar Properties (ALDAR.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) was flat.
Malik on Egypt's Monetary Policy - Bloomberg video
Malik on Egypt's Monetary Policy - Bloomberg
Monica Malik, Chief Economist at Abu Dhabi Commercial Bank discusses the upcoming rate announcement from Egypt's central bank amid the backdrop of rising inflation. She also discusses the volatility in the oil market. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East. (Source: Bloomberg)
Cox: #Saudi may have a super-green future after all | Reuters
Cox: Saudi may have a super-green future after all | Reuters
Something funky happened in Naples the other day, which is saying a lot for the magically chaotic city loomed over by tempestuous Mount Vesuvius. No, it had nothing to do with the city’s famous pizza or its notorious Camorra gangsters. Instead, it was a low-key but potentially significant step in the fight against global warming: Saudi Arabia sided with the club of climate crusaders.
Two weeks ago, in the Royal Palace once occupied by the Bourbon kings, energy and environment ministers from the Group of 20 rich nations got together to discuss key climate change commitments. While progress was made, the final communique lacked consensus on two critical points: fixing a deadline for phasing out coal power and pledges to limit global temperature increases to 1.5 degrees Celsius.
For many participants, including the United States, the UK and Italy – which holds the rotating presidency of the wealthy-country club – that risked overshadowing 58 other points of agreement. But look closer, and there are reasons to be hopeful the decarb laggards will eventually come around. For one, China and India were the main holdouts to those provisions, not Saudi, the reigning king of hydrocarbons, with 267 billion barrels of oil reserves.
Moreover, during the negotiations in Naples presided over by Roberto Cingolani, Italy’s minister for ecological transition, alongside U.S. special presidential envoy for climate John Kerry, the Saudis played an uncharacteristic role in trying to bring dawdling polluters on board. In the last hours of horse-trading, Prince Abdulaziz bin Salman, a professed Italophile who is Saudi’s energy minister, proposed a bilateral conversation to break the impasse with his counterparts in New Delhi, whose delegates, like Beijing’s, were linked up remotely by video.
Something funky happened in Naples the other day, which is saying a lot for the magically chaotic city loomed over by tempestuous Mount Vesuvius. No, it had nothing to do with the city’s famous pizza or its notorious Camorra gangsters. Instead, it was a low-key but potentially significant step in the fight against global warming: Saudi Arabia sided with the club of climate crusaders.
Two weeks ago, in the Royal Palace once occupied by the Bourbon kings, energy and environment ministers from the Group of 20 rich nations got together to discuss key climate change commitments. While progress was made, the final communique lacked consensus on two critical points: fixing a deadline for phasing out coal power and pledges to limit global temperature increases to 1.5 degrees Celsius.
For many participants, including the United States, the UK and Italy – which holds the rotating presidency of the wealthy-country club – that risked overshadowing 58 other points of agreement. But look closer, and there are reasons to be hopeful the decarb laggards will eventually come around. For one, China and India were the main holdouts to those provisions, not Saudi, the reigning king of hydrocarbons, with 267 billion barrels of oil reserves.
Moreover, during the negotiations in Naples presided over by Roberto Cingolani, Italy’s minister for ecological transition, alongside U.S. special presidential envoy for climate John Kerry, the Saudis played an uncharacteristic role in trying to bring dawdling polluters on board. In the last hours of horse-trading, Prince Abdulaziz bin Salman, a professed Italophile who is Saudi’s energy minister, proposed a bilateral conversation to break the impasse with his counterparts in New Delhi, whose delegates, like Beijing’s, were linked up remotely by video.
Oil rises on Mideast tensions but virus concerns weigh | Reuters
Oil rises on Mideast tensions but virus concerns weigh | Reuters
Oil prices rose towards $71 a barrel on Thursday on rising Middle East tensions, while fresh movement restrictions imposed by countries to counter a surge in COVID-19 cases threatened the demand recovery.
Brent crude oil futures rose by 50 cents, or 0.71%, to $70.88 a barrel by 0951 GMT after earlier dipping below $70 for the first time since July 21.
U.S. West Texas Intermediate (WTI) crude futures rose 66 cents, or 1%, to $68.81. Both benchmarks fell by more than $2 a barrel on Wednesday.
Israeli jets struck what its military said were rocket launch sites in Lebanon early on Thursday in response to two rockets fired towards Israel from Lebanese territory, in an escalation of cross-border hostilities amid heightened tensions with Iran. read more
Oil prices rose towards $71 a barrel on Thursday on rising Middle East tensions, while fresh movement restrictions imposed by countries to counter a surge in COVID-19 cases threatened the demand recovery.
Brent crude oil futures rose by 50 cents, or 0.71%, to $70.88 a barrel by 0951 GMT after earlier dipping below $70 for the first time since July 21.
U.S. West Texas Intermediate (WTI) crude futures rose 66 cents, or 1%, to $68.81. Both benchmarks fell by more than $2 a barrel on Wednesday.
Israeli jets struck what its military said were rocket launch sites in Lebanon early on Thursday in response to two rockets fired towards Israel from Lebanese territory, in an escalation of cross-border hostilities amid heightened tensions with Iran. read more
MIDEAST STOCKS Major Gulf bourses in red on geopolitical tensions; #Qatar gains | Reuters
MIDEAST STOCKS Major Gulf bourses in red on geopolitical tensions; Qatar gains | Reuters
Most Gulf stock markets were subdued in early trade on Thursday, hit by geopolitical tensions in the Middle East, although the Qatari index bucked the trend to trade higher.
Israeli aircraft struck what its military said were rocket launch sites in south Lebanon early on Thursday in response to earlier projectile fire towards Israel from Lebanese territory. read more
On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates. Iran denied the reports. read more
Saudi Arabia's benchmark index (.TASI) declined 0.6%, with Al Rajhi Bank (1120.SE) losing 0.7%, while Saudi Arabian Mining Co (1211.SE) retreated 4.3%, despite posting a quarterly net profit.
Among other decliners, food retailer Savola Group (2050.SE) fell 0.9%, extending losses from the previous session when it reported a drop in second-quarter net profit.
On the other hand, Tanmiah Food Company (2281.SE) jumped over 16%, a day after its stellar debut surging 30%.
Dubai's main share index (.DFMGI) lost 0.4%, hit by a 1.2% fall in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
On Wednesday, the bank advanced 2.8% after saying that the increase in foreign ownership limit to 40% has already been implemented.
In Abu Dhabi, the index (.ADI) eased 0.2%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) decreasing 0.6% and telecoms firm Etisalat (ETISALAT.AD) was down 0.7%.
The Qatari benchmark (.QSI) added 0.2%, supported by a 1.2% rise in Commercial Bank (COMB.QA).
Most Gulf stock markets were subdued in early trade on Thursday, hit by geopolitical tensions in the Middle East, although the Qatari index bucked the trend to trade higher.
Israeli aircraft struck what its military said were rocket launch sites in south Lebanon early on Thursday in response to earlier projectile fire towards Israel from Lebanese territory. read more
On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates. Iran denied the reports. read more
Saudi Arabia's benchmark index (.TASI) declined 0.6%, with Al Rajhi Bank (1120.SE) losing 0.7%, while Saudi Arabian Mining Co (1211.SE) retreated 4.3%, despite posting a quarterly net profit.
Among other decliners, food retailer Savola Group (2050.SE) fell 0.9%, extending losses from the previous session when it reported a drop in second-quarter net profit.
On the other hand, Tanmiah Food Company (2281.SE) jumped over 16%, a day after its stellar debut surging 30%.
Dubai's main share index (.DFMGI) lost 0.4%, hit by a 1.2% fall in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
On Wednesday, the bank advanced 2.8% after saying that the increase in foreign ownership limit to 40% has already been implemented.
In Abu Dhabi, the index (.ADI) eased 0.2%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) decreasing 0.6% and telecoms firm Etisalat (ETISALAT.AD) was down 0.7%.
The Qatari benchmark (.QSI) added 0.2%, supported by a 1.2% rise in Commercial Bank (COMB.QA).
#Saudi SABIC swings to $2bln profit on higher sales and selling prices | ZAWYA MENA Edition
Saudi SABIC swings to $2bln profit on higher sales and selling prices | ZAWYA MENA Edition
Saudi Basic Industries Corp (SABIC) reported a second quarter net profit of 7.64 billion riyals ($2 billion), swinging from a net loss of 2.22 billion riyals in the year-earlier period, mainly on the back of higher product prices.
The results beat most analysts estimates. NCB Capital had forecast a net profit of 6.41 billion riyals for Q2, while Al Rajhi Capital estimated 6.63 billion riyals.
The petrochemicals group, which is majority owned by state oil giant Saudi Aramco, said in a filing to the Saudi Tadawul stock exchange on Thursday that the massive jump in profitability was mainly due to higher average selling prices of most products and higher sales volumes.
In addition, its share in the results of joint ventures and associates increased, the petrochemicals giant said.
Sales and revenue jumped over 72 percent to 42.4 billion riyals, it said. SABIC’s key products include ethylene, ethylene glycol, methanol, polyethylene and engineering plastics and its derivatives.
The chemicals company noted also that there was in the loss-making year-ago quarter there were impairment provisions in certain capital and financial assets amounting to 2.28 billion riyals.
In its 2021 guidance issued last quarter, the company said it expected a 2 to 5 percent growth in total sales volume 2021, on account of improving demand amid a recovery in the global economy.
Saudi Basic Industries Corp (SABIC) reported a second quarter net profit of 7.64 billion riyals ($2 billion), swinging from a net loss of 2.22 billion riyals in the year-earlier period, mainly on the back of higher product prices.
The results beat most analysts estimates. NCB Capital had forecast a net profit of 6.41 billion riyals for Q2, while Al Rajhi Capital estimated 6.63 billion riyals.
The petrochemicals group, which is majority owned by state oil giant Saudi Aramco, said in a filing to the Saudi Tadawul stock exchange on Thursday that the massive jump in profitability was mainly due to higher average selling prices of most products and higher sales volumes.
In addition, its share in the results of joint ventures and associates increased, the petrochemicals giant said.
Sales and revenue jumped over 72 percent to 42.4 billion riyals, it said. SABIC’s key products include ethylene, ethylene glycol, methanol, polyethylene and engineering plastics and its derivatives.
The chemicals company noted also that there was in the loss-making year-ago quarter there were impairment provisions in certain capital and financial assets amounting to 2.28 billion riyals.
In its 2021 guidance issued last quarter, the company said it expected a 2 to 5 percent growth in total sales volume 2021, on account of improving demand amid a recovery in the global economy.
Oil prices reverse early gains on virus concerns | Reuters
Oil prices reverse early gains on virus concerns | Reuters
Oil prices fell on Thursday wiping out early gains as more countries imposed movement restrictions amid a surge in coronavirus cases and as the U.S. dollar firmed, though tension in the Middle East kept prices from falling further.
Japan was set on Thursday to expand emergency restrictions to more prefectures, while China, the world's second-largest oil consumer, imposed restrictions in some cities and cancelled flights, threatening fuel demand. read more
Brent crude oil futures dropped by 39 cents, or 0.6%, to $69.99 a barrel by 0649 GMT, after earlier climbing to a session high of $70.72.
U.S. West Texas Intermediate (WTI) crude futures fell 31 cents, or 0.5%, to $67.84 a barrel. Both benchmarks fell by more than $2 a barrel on Wednesday.
"China is now facing its most challenging COVID-19 crisis since the initial outbreak was brought under control," analysts from FGE said in a note on Thursday.
Oil prices fell on Thursday wiping out early gains as more countries imposed movement restrictions amid a surge in coronavirus cases and as the U.S. dollar firmed, though tension in the Middle East kept prices from falling further.
Japan was set on Thursday to expand emergency restrictions to more prefectures, while China, the world's second-largest oil consumer, imposed restrictions in some cities and cancelled flights, threatening fuel demand. read more
Brent crude oil futures dropped by 39 cents, or 0.6%, to $69.99 a barrel by 0649 GMT, after earlier climbing to a session high of $70.72.
U.S. West Texas Intermediate (WTI) crude futures fell 31 cents, or 0.5%, to $67.84 a barrel. Both benchmarks fell by more than $2 a barrel on Wednesday.
"China is now facing its most challenging COVID-19 crisis since the initial outbreak was brought under control," analysts from FGE said in a note on Thursday.