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Friday 20 August 2021
Oil Caps Longest Run of Losses Since 2019 on Fed Tapering Signal - Bloomberg
Oil Caps Longest Run of Losses Since 2019 on Fed Tapering Signal - Bloomberg
Three Gorges Said to Near Deal for #Dubai Renewable Firm Alcazar - Bloomberg
Three Gorges Said to Near Deal for Dubai Renewable Firm Alcazar - Bloomberg
State-owned China Three Gorges Corp. is nearing a deal to acquire Dubai-based wind and solar developer Alcazar Energy Partners, people with knowledge of the matter said, in one of China’s biggest pushes yet into Middle Eastern renewable energy.
A consortium led by Three Gorges is in advanced talks to buy Alcazar Energy for about $500 million, the people said, asking not to be identified because the information is private. An announcement could come as soon as the next few days, according to the people.
The deal could serve as a springboard for China to increase clean energy investments in the Middle East. Chinese companies have put their money into oil and gas in the likes of Iraq and the United Arab Emirates for years, but have only recently taken an interest in renewables in the region.
Including debt, a deal could value Alcazar at about $1 billion, Bloomberg News has reported. The company has been working with Standard Chartered Plc to consider options including a potential sale, people with knowledge of the matter said earlier.
Deliberations are ongoing, and talks could still drag on or fall apart, the people said. A representative for Alcazar declined to comment, while a spokesperson for Three Gorges didn’t immediately respond to requests for comment.
Several Middle Eastern governments, including the major oil producers in the Persian Gulf, are trying to cut the use of fossil fuels in their power grids. Founded in 2014, Alcazar has projects in Egypt and Jordan with a total generation capacity of around 410 megawatts. Its investors include a fund linked to Abu Dhabi’s Mubadala Investment Co., Dubai-based Blu Stone Management Ltd. and the World Bank’s International Finance Corp.
China Three Gorges listed its renewable energy subsidiary earlier this year in Shanghai, raising about 22.7 billion yuan ($3.5 billion). It has been acquiring foreign assets for more than a decade. Since early 2020, it’s invested roughly 1 billion euros ($1.2 billion) in Spanish solar projects.
State-owned China Three Gorges Corp. is nearing a deal to acquire Dubai-based wind and solar developer Alcazar Energy Partners, people with knowledge of the matter said, in one of China’s biggest pushes yet into Middle Eastern renewable energy.
A consortium led by Three Gorges is in advanced talks to buy Alcazar Energy for about $500 million, the people said, asking not to be identified because the information is private. An announcement could come as soon as the next few days, according to the people.
The deal could serve as a springboard for China to increase clean energy investments in the Middle East. Chinese companies have put their money into oil and gas in the likes of Iraq and the United Arab Emirates for years, but have only recently taken an interest in renewables in the region.
Including debt, a deal could value Alcazar at about $1 billion, Bloomberg News has reported. The company has been working with Standard Chartered Plc to consider options including a potential sale, people with knowledge of the matter said earlier.
Deliberations are ongoing, and talks could still drag on or fall apart, the people said. A representative for Alcazar declined to comment, while a spokesperson for Three Gorges didn’t immediately respond to requests for comment.
Several Middle Eastern governments, including the major oil producers in the Persian Gulf, are trying to cut the use of fossil fuels in their power grids. Founded in 2014, Alcazar has projects in Egypt and Jordan with a total generation capacity of around 410 megawatts. Its investors include a fund linked to Abu Dhabi’s Mubadala Investment Co., Dubai-based Blu Stone Management Ltd. and the World Bank’s International Finance Corp.
China Three Gorges listed its renewable energy subsidiary earlier this year in Shanghai, raising about 22.7 billion yuan ($3.5 billion). It has been acquiring foreign assets for more than a decade. Since early 2020, it’s invested roughly 1 billion euros ($1.2 billion) in Spanish solar projects.
Oil heads for 7% weekly drop as Delta variant spreads | Reuters
Oil heads for 7% weekly drop as Delta variant spreads | Reuters
Oil prices were down for a seventh straight session on Friday near three-month lows and heading for a weekly loss of over 7% as new lockdowns in countries facing surging cases of the COVID-19 Delta variant dampened the outlook for fuel demand.
Broader investor risk aversion also weighed on oil with the U.S. dollar jumping to a nine-month high on signs the U.S. Federal Reserve is considering reducing stimulus this year. read more (.DXY)
"The spread of the Delta variant amid moderating economic growth and the prospects of tighter monetary policy are creating short-term ripples in the commodity market," ANZ commodity analysts said in a note.
"Increasing restrictions on mobility are raising concerns for oil demand."
Brent crude fell 69 cents, or 1%, to $65.76 a barrel by 1338 GMT, near its lowest since May and down almost 7% for the week.
U.S. West Texas Intermediate (WTI) crude for September, due to expire on Friday, fell 68 cents, or 1.1%, to $63.01 a barrel and was down almost 8% for the week.
"The latest lockdowns in major economies around the world have likely harmed the economic activities and growth forecasts in the months to come," said Margaret Yang, a strategist at Singapore-based DailyFX.
Oil prices were down for a seventh straight session on Friday near three-month lows and heading for a weekly loss of over 7% as new lockdowns in countries facing surging cases of the COVID-19 Delta variant dampened the outlook for fuel demand.
Broader investor risk aversion also weighed on oil with the U.S. dollar jumping to a nine-month high on signs the U.S. Federal Reserve is considering reducing stimulus this year. read more (.DXY)
"The spread of the Delta variant amid moderating economic growth and the prospects of tighter monetary policy are creating short-term ripples in the commodity market," ANZ commodity analysts said in a note.
"Increasing restrictions on mobility are raising concerns for oil demand."
Brent crude fell 69 cents, or 1%, to $65.76 a barrel by 1338 GMT, near its lowest since May and down almost 7% for the week.
U.S. West Texas Intermediate (WTI) crude for September, due to expire on Friday, fell 68 cents, or 1.1%, to $63.01 a barrel and was down almost 8% for the week.
"The latest lockdowns in major economies around the world have likely harmed the economic activities and growth forecasts in the months to come," said Margaret Yang, a strategist at Singapore-based DailyFX.
Column: Oil prices hammered by surge in coronavirus cases: Kemp | Reuters
Column: Oil prices hammered by surge in coronavirus cases: Kemp | Reuters
Oil prices have finally buckled after coronavirus cases surged in all the major oil-consuming regions, pushing back the anticipated easing of quarantines and resumption of international passenger aviation.
The number of new coronavirus cases confirmed each day around the world has almost doubled to 84 per million people this week, up from just 46 in late June, according to official statistics compiled by Our World in Data.
North America has seen the number of new confirmed cases soar to almost 300 per million per day up from just 40, while in Europe numbers have surged to 170 from 50, and in Asia to 60 from 30 (https://tmsnrt.rs/3xWtoLr).
Most of the main consuming countries are now in the grip of the third or fourth wave of infections since the start of the pandemic or are fighting to contain local outbreaks.
Oil prices have finally buckled after coronavirus cases surged in all the major oil-consuming regions, pushing back the anticipated easing of quarantines and resumption of international passenger aviation.
The number of new coronavirus cases confirmed each day around the world has almost doubled to 84 per million people this week, up from just 46 in late June, according to official statistics compiled by Our World in Data.
North America has seen the number of new confirmed cases soar to almost 300 per million per day up from just 40, while in Europe numbers have surged to 170 from 50, and in Asia to 60 from 30 (https://tmsnrt.rs/3xWtoLr).
Most of the main consuming countries are now in the grip of the third or fourth wave of infections since the start of the pandemic or are fighting to contain local outbreaks.
Oil rises but set for 5% weekly drop as Delta variant spreads | Reuters
Oil rises but set for 5% weekly drop as Delta variant spreads | Reuters
Oil prices steadied on Friday, clambering away from three-month lows, but they were still on track for a weekly loss of more than 5% as new lockdowns in countries facing surging cases of the COVID-19 Delta variant dampened the outlook for fuel demand.
Broader investor risk aversion also weighed on oil with the U.S. dollar jumping to a nine-month high on signs the U.S. Federal Reserve is considering reducing stimulus this year. read more
"The spread of the Delta variant amid moderating economic growth and the prospects of tighter monetary policy are creating short-term ripples in the commodity market," ANZ commodity analysts said in a note.
"Increasing restrictions on mobility are raising concerns for oil demand."
Brent crude futures rose 24 cents or 0.4% to $66.69 a barrel at 0635 GMT, after dropping 2.6% on Thursday to its lowest close since May.
U.S. West Texas Intermediate (WTI) crude futures for September, due to expire on Friday, rose 38 cents or 0.6% to $64.07 a barrel , after sliding 2.7% on Thursday. The more active October contract was up 26 cents at $63.76 per barrel.
Oil prices steadied on Friday, clambering away from three-month lows, but they were still on track for a weekly loss of more than 5% as new lockdowns in countries facing surging cases of the COVID-19 Delta variant dampened the outlook for fuel demand.
Broader investor risk aversion also weighed on oil with the U.S. dollar jumping to a nine-month high on signs the U.S. Federal Reserve is considering reducing stimulus this year. read more
"The spread of the Delta variant amid moderating economic growth and the prospects of tighter monetary policy are creating short-term ripples in the commodity market," ANZ commodity analysts said in a note.
"Increasing restrictions on mobility are raising concerns for oil demand."
Brent crude futures rose 24 cents or 0.4% to $66.69 a barrel at 0635 GMT, after dropping 2.6% on Thursday to its lowest close since May.
U.S. West Texas Intermediate (WTI) crude futures for September, due to expire on Friday, rose 38 cents or 0.6% to $64.07 a barrel , after sliding 2.7% on Thursday. The more active October contract was up 26 cents at $63.76 per barrel.