Oil prices slip as IEA warns of slowdown in demand recovery | Reuters
Oil prices fell on Thursday after the International Energy Agency (IEA) said the spread of the Delta variant of the coronavirus would slow the recovery of global oil demand. read more
Brent crude futures fell 13 cents to settle at $71.31 a barrel. Earlier, Brent hit a session high of $71.90.
U.S. West Texas Intermediate (WTI) crude fell 16 cents to settle at $69.09 a barrel.
The international energy watchdog's monthly report said rising demand for oil reversed course in July and was set to proceed more slowly for the rest of the year after the latest wave of COVID-19 infections prompted countries to bring in restrictions again.
"Growth for the second half of 2021 has been downgraded more sharply, as new COVID-19 restrictions imposed in several major oil consuming countries, particularly in Asia, look set to reduce mobility and oil use," the Paris-based IEA said.
Thursday 12 August 2021
The Abraham Accords One Year On - Bloomberg #Israel #UAE
The Abraham Accords One Year On - Bloomberg
Eitan Na’eh, Head of Mission at the Embassy of Israel to the UAE discusses how bilateral trade between Israel and the UAE has progressed since the announcement of the deal on August 13, 2020. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Oman deficit at $2.86 billion in June | Reuters
Oman deficit at $2.86 billion in June | Reuters
Oman posted a year-to-date budget deficit of 1.1 billion rials ($2.86 billion) in June, the Ministry of Finance said on Thursday.
Oman is among the weakest countries financially in the oil-rich region and more vulnerable to swings in the price of hydrocarbons, a sector that accounted for about a third of its gross domestic product (GDP) in 2019.
Oman posted a year-to-date budget deficit of 1.1 billion rials ($2.86 billion) in June, the Ministry of Finance said on Thursday.
Oman is among the weakest countries financially in the oil-rich region and more vulnerable to swings in the price of hydrocarbons, a sector that accounted for about a third of its gross domestic product (GDP) in 2019.
#Oman sets up hydrogen alliance to develop clean fuel industry | Reuters
Oman sets up hydrogen alliance to develop clean fuel industry | Reuters
Oman has established a national hydrogen alliance to develop an industry for the production, transport and use of the fuel that Gulf states have been increasingly looking to as a business to meet the worldwide demand for clean fuels.
Oman's alliance consists of 13 institutions from the public and private sectors, including government agencies, oil and gas operators, educational and research institutions and ports, state news agency ONA said on Thursday.
The project is part of Oman's energy diversification aims within its Oman Vision 2040 economic transformation plan.
In May, Oman announced a consortium including state-owned oil firm OQ would develop a solar- and wind-energy powered project capable of producing millions of tonnes of zero-carbon green hydrogen per year. read more
So-called green hydrogen, created by splitting water into its two components using electricity from renewable energy sources, is increasingly viewed as a fuel to replace fossil fuels and their high carbon emissions.
Gulf oil-producing countries are trying to diversify their economies by creating new sectors and revenues, including through a big push in renewable energy.
Abu Dhabi plans to produce and export hydrogen as a fuel and Saudi Arabia is working on a $5 billion hydrogen project in the NEOM high-tech business zone.
Oman has established a national hydrogen alliance to develop an industry for the production, transport and use of the fuel that Gulf states have been increasingly looking to as a business to meet the worldwide demand for clean fuels.
Oman's alliance consists of 13 institutions from the public and private sectors, including government agencies, oil and gas operators, educational and research institutions and ports, state news agency ONA said on Thursday.
The project is part of Oman's energy diversification aims within its Oman Vision 2040 economic transformation plan.
In May, Oman announced a consortium including state-owned oil firm OQ would develop a solar- and wind-energy powered project capable of producing millions of tonnes of zero-carbon green hydrogen per year. read more
So-called green hydrogen, created by splitting water into its two components using electricity from renewable energy sources, is increasingly viewed as a fuel to replace fossil fuels and their high carbon emissions.
Gulf oil-producing countries are trying to diversify their economies by creating new sectors and revenues, including through a big push in renewable energy.
Abu Dhabi plans to produce and export hydrogen as a fuel and Saudi Arabia is working on a $5 billion hydrogen project in the NEOM high-tech business zone.
#Qatar reports $1 bln budget surplus for 2nd quarter - The Peninsula Qatar
Qatar reports $1 bln budget surplus for 2nd quarter - The Peninsula Qatar
Qatar's budget surplus in the second quarter of the year stood at 3.8 billion riyals ($1.04 billion), the finance ministry said on Thursday.
The world's largest exporter of liquefied natural gas (LNG) generated 50.1 billion riyals in revenues in April-June, driven by higher-than-budgeted oil prices, and the collection of corporate income tax in April 2021, the ministry said in a statement.
Spending stood at 46.2 billion riyals over the three months to June 30, it said.
Qatar's budget surplus in the second quarter of the year stood at 3.8 billion riyals ($1.04 billion), the finance ministry said on Thursday.
The world's largest exporter of liquefied natural gas (LNG) generated 50.1 billion riyals in revenues in April-June, driven by higher-than-budgeted oil prices, and the collection of corporate income tax in April 2021, the ministry said in a statement.
Spending stood at 46.2 billion riyals over the three months to June 30, it said.
MIDEAST STOCKS #Saudi and #Qatar stocks tread water amid Delta fears | Reuters
MIDEAST STOCKS Saudi and Qatar stocks tread water amid Delta fears | Reuters
Saudi Arabia's and Qatar's stocks gave up early gains to close flat on Thursday, amid fears about the spread of the Delta variant of the coronavirus weighing on sentiment.
The GCC stock markets were impacted by fears of an economic slowdown as China takes steps to limit the spread of the coronavirus, said Daniel Takieddine, senior market analyst at FXPrimus.
"The second-largest economy has seen significant increases in COVID cases, which increased concerns about an economic slowdown and disruptions of the global trade network."
The benchmark index (.TASI) in Saudi Arabia ended flat, with Banque Saudi Fransi (1050.SE) declining 2%.
In early trade, the index opened on the upside supported by U.S. inflation figures and oil prices.
Oil prices, a key catalyst for the Gulf's financial markets, declined after the International Energy Agency (IEA) said the spread of the Delta variant of the coronavirus would slow the recovery of global oil demand. read more
However, the index was able to register its third weekly gain.
In Qatar, the index (.QSI) was also flat.
Qatar's emir on Wednesday named an ambassador to Saudi Arabia after Riyadh in June reinstated its envoy to Doha, in another sign of improved ties after rival Gulf states agreed this year to end a long-running dispute. read more
Dubai, Abu Dhabi, Egypt markets were closed for a public holiday.
Saudi Arabia's and Qatar's stocks gave up early gains to close flat on Thursday, amid fears about the spread of the Delta variant of the coronavirus weighing on sentiment.
The GCC stock markets were impacted by fears of an economic slowdown as China takes steps to limit the spread of the coronavirus, said Daniel Takieddine, senior market analyst at FXPrimus.
"The second-largest economy has seen significant increases in COVID cases, which increased concerns about an economic slowdown and disruptions of the global trade network."
The benchmark index (.TASI) in Saudi Arabia ended flat, with Banque Saudi Fransi (1050.SE) declining 2%.
In early trade, the index opened on the upside supported by U.S. inflation figures and oil prices.
Oil prices, a key catalyst for the Gulf's financial markets, declined after the International Energy Agency (IEA) said the spread of the Delta variant of the coronavirus would slow the recovery of global oil demand. read more
However, the index was able to register its third weekly gain.
In Qatar, the index (.QSI) was also flat.
Qatar's emir on Wednesday named an ambassador to Saudi Arabia after Riyadh in June reinstated its envoy to Doha, in another sign of improved ties after rival Gulf states agreed this year to end a long-running dispute. read more
Dubai, Abu Dhabi, Egypt markets were closed for a public holiday.
OPEC sticks to oil demand view despite virus, sees more U.S. shale coming | Reuters
OPEC sticks to oil demand view despite virus, sees more U.S. shale coming | Reuters
OPEC on Thursday stuck to its prediction of a strong recovery in world oil demand in 2021 and further growth next year, despite concerns about the spread of the Delta coronavirus variant that has weighed on prices.
The Organization of the Petroleum Exporting Countries in a monthly report also raised its forecast of supply from rivals, including U.S. shale producers, next year, a potential headwind for the efforts of the group and allies to balance the market.
"The global economy continues to recover," OPEC said in the report. "However, numerous challenges remain that could easily dampen this momentum. In particular, COVID-19-related developments will need close monitoring."
OPEC's view that demand will shrug off the latest pandemic-related setback contrasts with that of the International Energy Agency, which trimmed its outlook on Thursday. read more The U.S. government's forecaster also kept its 2021 growth forecast steady, but trimmed that for 2022.
OPEC on Thursday stuck to its prediction of a strong recovery in world oil demand in 2021 and further growth next year, despite concerns about the spread of the Delta coronavirus variant that has weighed on prices.
The Organization of the Petroleum Exporting Countries in a monthly report also raised its forecast of supply from rivals, including U.S. shale producers, next year, a potential headwind for the efforts of the group and allies to balance the market.
"The global economy continues to recover," OPEC said in the report. "However, numerous challenges remain that could easily dampen this momentum. In particular, COVID-19-related developments will need close monitoring."
OPEC's view that demand will shrug off the latest pandemic-related setback contrasts with that of the International Energy Agency, which trimmed its outlook on Thursday. read more The U.S. government's forecaster also kept its 2021 growth forecast steady, but trimmed that for 2022.
#Dubai property prices continue to rise amid economic recovery and higher demand
Dubai property prices continue to rise amid economic recovery and higher demand
Property prices in Dubai rose 15 per cent in July, as the emirate’s economy recovers from the coronavirus pandemic on the back of the UAE's vaccination programme and new stimulus measures, according to Property Finder.
The average property price in the emirate climbed to Dh941 per square foot ($256) last month from Dh818 per square foot recorded during the same month last year, the real estate portal's monthly market report said.
Overall, property prices in Dubai have jumped 11.8 per cent this year, mirroring the global trend in the property market as the world recovers from the pandemic. Prices rose 1.9 per cent in July compared to the previous month.
“Although growth has been very strong, we expect the pace of recovery to slow over the rest of 2021, moving to a more sustainable pace across Dubai,” the report said.
“Looking across the world, double-digit price rises have been seen in the UK, the US, Canada, Scandinavia and parts of Europe, so the local recovery is very much part of a global trend as the world recovers from the pandemic.”
The UAE property market, which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid an uptick in working and learning remotely.
Property prices in Dubai rose 15 per cent in July, as the emirate’s economy recovers from the coronavirus pandemic on the back of the UAE's vaccination programme and new stimulus measures, according to Property Finder.
The average property price in the emirate climbed to Dh941 per square foot ($256) last month from Dh818 per square foot recorded during the same month last year, the real estate portal's monthly market report said.
Overall, property prices in Dubai have jumped 11.8 per cent this year, mirroring the global trend in the property market as the world recovers from the pandemic. Prices rose 1.9 per cent in July compared to the previous month.
“Although growth has been very strong, we expect the pace of recovery to slow over the rest of 2021, moving to a more sustainable pace across Dubai,” the report said.
“Looking across the world, double-digit price rises have been seen in the UK, the US, Canada, Scandinavia and parts of Europe, so the local recovery is very much part of a global trend as the world recovers from the pandemic.”
The UAE property market, which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid an uptick in working and learning remotely.
GCC economic recovery to accelerate in 2022 on oil income and private sector growth
GCC economic recovery to accelerate in 2022 on oil income and private sector growth
The ongoing economic recovery of the Gulf region is expected to accelerate next year, with fiscal deficits narrowing, as oil income climbs and the number of Covid-19 infections fall amid wide-scale vaccination campaigns, according to the Institute of International Finance.
Growth in the regional countries is forecast to at an average 1.7 per cent this year and 4.2 per cent in 2022, the IIF said.
Hydrocarbon real gross domestic product of the region, which accounts for about a third of the world’s proven oil reserves, is projected at 5 per cent in 2022 “on the assumption that the Opec+ production cuts end by mid-2022", said Garbis Iradian, chief Mena economist and Samuel LaRussa, IIF’s senior research analyst.
“On the upside, faster vaccination rates and further progress in [implementation of economic] reforms could boost non-hydrocarbon growth in 2022.”
Economies in the GCC are bouncing back from Covid-19-induced challenges on the back of monetary and fiscal support provided to minimise the impact of the pandemic. The health crisis severely disrupted economic momentum last year and tipped the global economy into its worst recessions since the 1930s.
The ongoing economic recovery of the Gulf region is expected to accelerate next year, with fiscal deficits narrowing, as oil income climbs and the number of Covid-19 infections fall amid wide-scale vaccination campaigns, according to the Institute of International Finance.
Growth in the regional countries is forecast to at an average 1.7 per cent this year and 4.2 per cent in 2022, the IIF said.
Hydrocarbon real gross domestic product of the region, which accounts for about a third of the world’s proven oil reserves, is projected at 5 per cent in 2022 “on the assumption that the Opec+ production cuts end by mid-2022", said Garbis Iradian, chief Mena economist and Samuel LaRussa, IIF’s senior research analyst.
“On the upside, faster vaccination rates and further progress in [implementation of economic] reforms could boost non-hydrocarbon growth in 2022.”
Economies in the GCC are bouncing back from Covid-19-induced challenges on the back of monetary and fiscal support provided to minimise the impact of the pandemic. The health crisis severely disrupted economic momentum last year and tipped the global economy into its worst recessions since the 1930s.
IEA Cuts Oil Demand Outlook on Virus, Sees New Surplus in 2022 - Bloomberg
IEA Cuts Oil Demand Outlook on Virus, Sees New Surplus in 2022 - Bloomberg
The International Energy Agency cut forecasts for global oil demand “sharply” for the rest of this year as the resurgent pandemic hits major consumers, and predicted a new surplus in 2022.
It’s a marked reversal for the Paris-based agency, which just a month ago was urging the OPEC+ alliance to open the taps or risk a damaging spike in prices. The oil cartel heeded calls to hike supply, which is now arriving just as consumption slackens.
The analysis also jars with Wednesday’s call from the U.S. -- the IEA’s most influential member -- for the Organization of Petroleum Exporting Countries and its allies to ramp production up faster.
“The immediate boost from OPEC+ is colliding with slower demand growth and higher output from outside the alliance, stamping out lingering suggestions of a near-term supply crunch or super cycle,” the IEA said in its monthly report.
The International Energy Agency cut forecasts for global oil demand “sharply” for the rest of this year as the resurgent pandemic hits major consumers, and predicted a new surplus in 2022.
It’s a marked reversal for the Paris-based agency, which just a month ago was urging the OPEC+ alliance to open the taps or risk a damaging spike in prices. The oil cartel heeded calls to hike supply, which is now arriving just as consumption slackens.
The analysis also jars with Wednesday’s call from the U.S. -- the IEA’s most influential member -- for the Organization of Petroleum Exporting Countries and its allies to ramp production up faster.
“The immediate boost from OPEC+ is colliding with slower demand growth and higher output from outside the alliance, stamping out lingering suggestions of a near-term supply crunch or super cycle,” the IEA said in its monthly report.
Oil prices steady after U.S. call for more oil raises supply concerns | Reuters
Oil prices steady after U.S. call for more oil raises supply concerns | Reuters
Oil prices slipped on Thursday following two days of gains after a call from the United States, the world's top oil consumer, for major producers to boost output reinforced supply concerns as economies ease their coronavirus restrictions.
Brent crude futures slipped by 17 cents, or 0.2%, to $71.27 a barrel by 0650 GMT, after earlier rising to a session-high of $71.69.
U.S. West Texas Intermediate (WTI) crude futures fell by 23 cents, or 0.3%, to $69.02 after rising to $69.51 earlier.
"Crude prices are paring earlier gains that stemmed from President Biden's plea to OPEC for more crude," said Edward Moya, senior analyst at OANDA.
"The rally in oil prices is hitting a major roadblock in Asia as concerns grow China's outlook is looking worse this month and that can't be good for the demand outlook."
Oil prices slipped on Thursday following two days of gains after a call from the United States, the world's top oil consumer, for major producers to boost output reinforced supply concerns as economies ease their coronavirus restrictions.
Brent crude futures slipped by 17 cents, or 0.2%, to $71.27 a barrel by 0650 GMT, after earlier rising to a session-high of $71.69.
U.S. West Texas Intermediate (WTI) crude futures fell by 23 cents, or 0.3%, to $69.02 after rising to $69.51 earlier.
"Crude prices are paring earlier gains that stemmed from President Biden's plea to OPEC for more crude," said Edward Moya, senior analyst at OANDA.
"The rally in oil prices is hitting a major roadblock in Asia as concerns grow China's outlook is looking worse this month and that can't be good for the demand outlook."