Oil's losing streak hits six days, benchmarks touch May lows | Reuters
Oil prices skidded on Thursday for a sixth session, hitting lows not seen since May, as investors pulled back over concerns about weakened global demand as COVID-19 cases climband on the back of a rise in the U.S. dollar.
The oil market rallied throughout the first half of 2021, but has lost about 15% since early July. The recent wave of coronavirus infections worldwide has sapped global travel and threatens economic activity, just as major oil producers are getting ready to increase supply.
"There seems to be a lot of people getting squeezed out of long positions," said Phil Flynn, analyst at Price Futures Group.
Brent crude lost $1.78, or 2.6%, to settle at $66.45 a barrel, after touching $65.57, the lowest level since May 21. The most-active contract for U.S. West Intermediate (WTI) fell $1.71, or 2.6%, to $63.50 a barrel. It fell earlier to $62.41 a barrel, the lowest level since May 21.
Both benchmarks have declined for six days in a row, their longest losing streak since February 2020.
Thursday, 19 August 2021
MIDEAST STOCKS Most major Gulf bourses fall on fed taper, virus fears | Reuters
MIDEAST STOCKS Most major Gulf bourses fall on fed taper, virus fears | Reuters
Most major stock markets in the Gulf ended lower on Thursday amid concerns about the continuing spread of the Delta coronavirus variant and Fed tapering, while banks bolstered the Qatari index.
"GCC equities were affected by the US Federal Reserve's minutes publication. The release revealed diverging opinions among its members regarding various topics, however, they were all in tune regarding the necessity to stop its asset repurchasing program by the end of the year," Daniel Takieddine, senior market analyst at FXPrimus.
Saudi Arabia's benchmark index (.TASI) retreated 1.3%, dragged down by a 2.8% fall in Saudi Telecom Company (7010.SE) and a 2.6% drop in Dr Sulaiman Al-Habib Medical Services (4013.SE).
The Saudi stocks also felt the jolt from declining oil prices which fell below $66 a barrel, the lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
But, shares of apparel retailer Fawaz Abdulaziz Alhokair Co (4240.SE) climbed 3.1% after it posted quarterly net profit of 45.7 million riyals ($12.19 million), compared to a loss of 535.6 million riyals year ago.
The Qatari index (.QSI) rose 0.3%, with Commercial Bank (COMB.QA) and Qatar Islamic Bank (QISB.QA) both advancing 3.6%.
The Gulf state's cabinet approved to increase the percentage of non-Qatari ownership in the capital of Qatar National Bank (QNBK.QA), Qatar Islamic Bank, Commercial Bank and Al Rayan Bank to reach 100% — a move that could attract more liquidity to the bourse.
Islamic lender Masraf Al Rayan was up 1.9%.
Dubai's main share index (.DFMGI) fell 0.8%, pressured by a 2.5% fall in Emirates NBD Bank (ENBD.DU).
Separately, Dubai's DP World (DPWRD.UL), one of the world's biggest port operators, said on Thursday profit jumped almost 52% in the first half of 2021, fuelled by higher consumer spending and a rebound in global trade since the pandemic. read more
In Abu Dhabi, the index (.ADI) retreated 1%, a day after it touched a record high, with Emirates Telecommunications Group (ETISALAT.AD) shedding 2.3% and the country's largest lender First Abu Dhabi Bank (FAB.AD) declining 1.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.9%, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA). which was down 1.9%.
Most major stock markets in the Gulf ended lower on Thursday amid concerns about the continuing spread of the Delta coronavirus variant and Fed tapering, while banks bolstered the Qatari index.
"GCC equities were affected by the US Federal Reserve's minutes publication. The release revealed diverging opinions among its members regarding various topics, however, they were all in tune regarding the necessity to stop its asset repurchasing program by the end of the year," Daniel Takieddine, senior market analyst at FXPrimus.
Saudi Arabia's benchmark index (.TASI) retreated 1.3%, dragged down by a 2.8% fall in Saudi Telecom Company (7010.SE) and a 2.6% drop in Dr Sulaiman Al-Habib Medical Services (4013.SE).
The Saudi stocks also felt the jolt from declining oil prices which fell below $66 a barrel, the lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
But, shares of apparel retailer Fawaz Abdulaziz Alhokair Co (4240.SE) climbed 3.1% after it posted quarterly net profit of 45.7 million riyals ($12.19 million), compared to a loss of 535.6 million riyals year ago.
The Qatari index (.QSI) rose 0.3%, with Commercial Bank (COMB.QA) and Qatar Islamic Bank (QISB.QA) both advancing 3.6%.
The Gulf state's cabinet approved to increase the percentage of non-Qatari ownership in the capital of Qatar National Bank (QNBK.QA), Qatar Islamic Bank, Commercial Bank and Al Rayan Bank to reach 100% — a move that could attract more liquidity to the bourse.
Islamic lender Masraf Al Rayan was up 1.9%.
Dubai's main share index (.DFMGI) fell 0.8%, pressured by a 2.5% fall in Emirates NBD Bank (ENBD.DU).
Separately, Dubai's DP World (DPWRD.UL), one of the world's biggest port operators, said on Thursday profit jumped almost 52% in the first half of 2021, fuelled by higher consumer spending and a rebound in global trade since the pandemic. read more
In Abu Dhabi, the index (.ADI) retreated 1%, a day after it touched a record high, with Emirates Telecommunications Group (ETISALAT.AD) shedding 2.3% and the country's largest lender First Abu Dhabi Bank (FAB.AD) declining 1.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.9%, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA). which was down 1.9%.
#Saudi Wealth Fund Buys a Stake in Italian Supercar Maker Pagani - Bloomberg
Saudi Wealth Fund Buys a Stake in Italian Supercar Maker Pagani - Bloomberg
Saudi Arabia’s sovereign wealth fund has agreed to buy a minority stake in Italian supercar maker Horacio Pagani SpA, the latest indication the oil-rich kingdom is increasingly interested in carmaking.
The investment by the Public Investment Fund is part of a long-term strategic partnership with the closely held Italian company. The Pagani family will keep full control of the company, with the PIF joining Italian minority shareholders Nicola Volpi and Emilio Petrone, according to a statement. Terms weren’t disclosed.
Pagani, based near Modena in northern Italy, was founded by Italian-Argentine entrepreneur Horacio Pagani in 1992. The CEO and chairman called the PIF an “ideal partner” to further position “an iconic brand in the hypercars segment as well as to support its expansion strategy in the lifestyle segment.”
Bloomberg News reported in April that the PIF had hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker. The fund has been active in the EV space going back several years, acquiring a small stake in Tesla Inc. in 2018 and later investing in Lucid Group Inc.
UBS Investment Bank acted as Pagani’s financial adviser. Withers Studio Legale acted as legal adviser to the selling shareholders.
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| The Huayra R hypercar. Source: Horacio Pagani SpA |
The investment by the Public Investment Fund is part of a long-term strategic partnership with the closely held Italian company. The Pagani family will keep full control of the company, with the PIF joining Italian minority shareholders Nicola Volpi and Emilio Petrone, according to a statement. Terms weren’t disclosed.
Pagani, based near Modena in northern Italy, was founded by Italian-Argentine entrepreneur Horacio Pagani in 1992. The CEO and chairman called the PIF an “ideal partner” to further position “an iconic brand in the hypercars segment as well as to support its expansion strategy in the lifestyle segment.”
Bloomberg News reported in April that the PIF had hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker. The fund has been active in the EV space going back several years, acquiring a small stake in Tesla Inc. in 2018 and later investing in Lucid Group Inc.
UBS Investment Bank acted as Pagani’s financial adviser. Withers Studio Legale acted as legal adviser to the selling shareholders.
Oil drops to below $66, lowest since May, on demand concerns | Reuters
Oil drops to below $66, lowest since May, on demand concerns | Reuters
Oil dropped to below $66 a barrel on Thursday, its lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
Circulation of the Delta variant in areas of low vaccination is driving transmission of COVID-19, the World Health Organization said. read more Coronavirus-related deaths have spiked in the United States over the past month.
"The longer-than-anticipated battle against the invisible enemy has made investors cautious and pragmatic, leading to gradually softer prices," said Tamas Varga of oil broker PVM.
"The potential withdrawal of monetary support, the chaotic Taliban takeover of Afghanistan that threatens with another migrant crisis and worries about the continuous spread of the virus keep the dollar in demand, which, in turn, acts as a break on any attempted oil-price rally."
The dollar hit a nine-month high, weighing on dollar-priced commodities.
Brent crude was down $1.87, or 2.7%, at $66.36 at 1025 GMT, after touching its lowest since May 21. U.S. West Intermediate (WTI) fell $1.96, or 3%, to $63.50 after falling as low as $62.83, also its lowest since May 21.
Oil dropped to below $66 a barrel on Thursday, its lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
Circulation of the Delta variant in areas of low vaccination is driving transmission of COVID-19, the World Health Organization said. read more Coronavirus-related deaths have spiked in the United States over the past month.
"The longer-than-anticipated battle against the invisible enemy has made investors cautious and pragmatic, leading to gradually softer prices," said Tamas Varga of oil broker PVM.
"The potential withdrawal of monetary support, the chaotic Taliban takeover of Afghanistan that threatens with another migrant crisis and worries about the continuous spread of the virus keep the dollar in demand, which, in turn, acts as a break on any attempted oil-price rally."
The dollar hit a nine-month high, weighing on dollar-priced commodities.
Brent crude was down $1.87, or 2.7%, at $66.36 at 1025 GMT, after touching its lowest since May 21. U.S. West Intermediate (WTI) fell $1.96, or 3%, to $63.50 after falling as low as $62.83, also its lowest since May 21.
#UAE's Emirates Global Aluminium says refinances $5.5 bln loan facility | Reuters
UAE's Emirates Global Aluminium says refinances $5.5 bln loan facility | Reuters
The UAE's Emirates Global Aluminium (EGA), one of the world's largest aluminium producers, said on Thursday it had refinanced a $5.5 billion loan facility.
EGA said that the new facility, a senior unsecured loan, lowers by $1 billion the size of the company's existing seven-year $6.5 billion loan facility in 2019, as well as adjusts scheduled debt repayments including extending them by 2.5 years.
EGA’s fundraising exercise comes as borrowers in the Gulf seek to improve their financing to reflect better market conditions after last year’s coronavirus-driven downturn.
EGA, which is owned equally by Abu Dhabi state fund Mubadala and the Investment Corporation of Dubai, produces 4% of the world's aluminium.
The UAE's Emirates Global Aluminium (EGA), one of the world's largest aluminium producers, said on Thursday it had refinanced a $5.5 billion loan facility.
EGA said that the new facility, a senior unsecured loan, lowers by $1 billion the size of the company's existing seven-year $6.5 billion loan facility in 2019, as well as adjusts scheduled debt repayments including extending them by 2.5 years.
EGA’s fundraising exercise comes as borrowers in the Gulf seek to improve their financing to reflect better market conditions after last year’s coronavirus-driven downturn.
EGA, which is owned equally by Abu Dhabi state fund Mubadala and the Investment Corporation of Dubai, produces 4% of the world's aluminium.
#Dubai's DP World says first-half profit jumps almost 52% | Reuters
Dubai's DP World says first-half profit jumps almost 52% | Reuters
Dubai's DP World (DPWRD.UL) said on Thursday profit jumped almost 52% in the first half of 2021, fuelled by higher consumer spending and a rebound in global trade since the coronavirus pandemic.
DP World, one of the world's biggest port operators, said profit attributable to owners of the company jumped to $475 million in the period ended June 30, from $313 million last year.
Revenues rose 21% to $4.95 billion, from $4.0 billion in the year earlier period, the company said in a statement.
“Overall, the near-term outlook remains positive, and while we are mindful that the Covid-19 pandemic and geopolitical uncertainty could once-again disrupt the global economic recovery, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns”, DP World's group chairman and chief executive Sultan Ahmed Bin Sulayem said.
Dubai's DP World (DPWRD.UL) said on Thursday profit jumped almost 52% in the first half of 2021, fuelled by higher consumer spending and a rebound in global trade since the coronavirus pandemic.
DP World, one of the world's biggest port operators, said profit attributable to owners of the company jumped to $475 million in the period ended June 30, from $313 million last year.
Revenues rose 21% to $4.95 billion, from $4.0 billion in the year earlier period, the company said in a statement.
“Overall, the near-term outlook remains positive, and while we are mindful that the Covid-19 pandemic and geopolitical uncertainty could once-again disrupt the global economic recovery, we remain positive on the medium to long-term fundamentals of the industry and DP Worlds ability to continue to deliver sustainable returns”, DP World's group chairman and chief executive Sultan Ahmed Bin Sulayem said.
MIDEAST STOCKS Most major stocks fall in early trade; #Qatar gains | Reuters
MIDEAST STOCKS Most major stocks fall in early trade; Qatar gains | Reuters
Most major Gulf stock markets fell in early trade on Thursday, amid worries about the continuing spread of the Delta coronavirus variant, while the Qatari index was buoyed by its banking shares.
Saudi Arabia's benchmark index (.TASI) dropped 0.6%, weighed down by a 0.8% fall in petrochemical maker Saudi Basic Industries (2010.SE) and a 1% decline in Dr Sulaiman Al-Habib Medical Services (4013.SE).
However, shares of apparel retailer Fawaz Abdulaziz Alhokair Co (4240.SE) jumped 5.2% after posting quarterly net profit of 45.7 million riyals ($12.19 million), compared to a loss of 535.6 million riyals year ago.
Oil prices, a key catalyst for the Gulf market, fell for a sixth day, the longest losing streak since February 2020, as a spike in COVID-19 cases worldwide fuelled fears over slower fuel demand while a surprise build in U.S. gasoline inventories added to the pressure.
The Qatari index (.QSI) gained 0.8%, with Commercial Bank (COMB.QA) jumping over 5%, reaching its highest since November 2014, and Qatar Islamic Bank (QISB.QA) advancing 2.2%.
The Gulf state's cabinet approved to increase the percentage of non-Qatari ownership in the capital of Qatar National Bank (QNBK.QA), Qatar Islamic Bank, Commercial Bank and Al Rayan Bank to reach 100% — a move that could attract more liquidity to the bourse.
Islamic lender Masraf Al Rayan was up 1.8%.
Dubai's main share index (.DFMGI) eased 0.3%, hit by a 1.4% fall in Emirates NBD Bank (ENBD.DU).
Separately, Dubai's DP World (DPWRD.UL), one of the world's biggest port operators, said on Thursday profit jumped almost 52% in the first half of 2021, fuelled by higher consumer spending and a rebound in global trade since the pandemic. read more
In Abu Dhabi, the index (.ADI) retreated 0.6%, a day after it touched a record high, with Emirates Telecommunications Group (ETISALAT.AD) losing 1.6% and the country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.5%.
Most major Gulf stock markets fell in early trade on Thursday, amid worries about the continuing spread of the Delta coronavirus variant, while the Qatari index was buoyed by its banking shares.
Saudi Arabia's benchmark index (.TASI) dropped 0.6%, weighed down by a 0.8% fall in petrochemical maker Saudi Basic Industries (2010.SE) and a 1% decline in Dr Sulaiman Al-Habib Medical Services (4013.SE).
However, shares of apparel retailer Fawaz Abdulaziz Alhokair Co (4240.SE) jumped 5.2% after posting quarterly net profit of 45.7 million riyals ($12.19 million), compared to a loss of 535.6 million riyals year ago.
Oil prices, a key catalyst for the Gulf market, fell for a sixth day, the longest losing streak since February 2020, as a spike in COVID-19 cases worldwide fuelled fears over slower fuel demand while a surprise build in U.S. gasoline inventories added to the pressure.
The Qatari index (.QSI) gained 0.8%, with Commercial Bank (COMB.QA) jumping over 5%, reaching its highest since November 2014, and Qatar Islamic Bank (QISB.QA) advancing 2.2%.
The Gulf state's cabinet approved to increase the percentage of non-Qatari ownership in the capital of Qatar National Bank (QNBK.QA), Qatar Islamic Bank, Commercial Bank and Al Rayan Bank to reach 100% — a move that could attract more liquidity to the bourse.
Islamic lender Masraf Al Rayan was up 1.8%.
Dubai's main share index (.DFMGI) eased 0.3%, hit by a 1.4% fall in Emirates NBD Bank (ENBD.DU).
Separately, Dubai's DP World (DPWRD.UL), one of the world's biggest port operators, said on Thursday profit jumped almost 52% in the first half of 2021, fuelled by higher consumer spending and a rebound in global trade since the pandemic. read more
In Abu Dhabi, the index (.ADI) retreated 0.6%, a day after it touched a record high, with Emirates Telecommunications Group (ETISALAT.AD) losing 1.6% and the country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.5%.
Oil prices in longest losing streak since February 2020 | Reuters
Oil prices in longest losing streak since February 2020 | Reuters
Oil prices fell for a sixth day in their longest losing streak since February 2020, as a spike in COVID-19 cases worldwide fuelled fears of lower fuel demand while a surprise build in U.S. gasoline inventories and a stronger dollar added to the pressure.
Brent crude was down $1.11, or 1.6%, at $67.12 a barrel at 0639 GMT, after touching the lowest since May 24 at $67.06 earlier in the session.
U.S. West Intermediate crude (WTI) fell $1.35, or 2.1%, to $64.11 a barrel after falling to as low as $64.02, also the lowest since May 24.
WTI has dropped more than 7% while Brent has slumped more than 6% during the six-day losing streak, the longest since a six-day decline for both contracts that ended on Feb. 28, 2020.
Oil prices fell for a sixth day in their longest losing streak since February 2020, as a spike in COVID-19 cases worldwide fuelled fears of lower fuel demand while a surprise build in U.S. gasoline inventories and a stronger dollar added to the pressure.
Brent crude was down $1.11, or 1.6%, at $67.12 a barrel at 0639 GMT, after touching the lowest since May 24 at $67.06 earlier in the session.
U.S. West Intermediate crude (WTI) fell $1.35, or 2.1%, to $64.11 a barrel after falling to as low as $64.02, also the lowest since May 24.
WTI has dropped more than 7% while Brent has slumped more than 6% during the six-day losing streak, the longest since a six-day decline for both contracts that ended on Feb. 28, 2020.