Oil up 3% on stronger demand outlook; Mexican oil rig outage | Reuters
Oil prices rose 3% on Tuesday, extending sharp gains from the previous session, boosted after U.S. regulators issued their first full approval for a COVID-19 vaccine and Mexico suffered a large production outage due to a fire on an oil platform.
Brent crude oil futures settled up $2.30, or 3.4%, at $71.05 a barrel, while U.S. West Texas Intermediate (WTI) gained $1.90, or 2.9%, to settle at $67.54.
Last week, both benchmarks notched their biggest weekly losses in more than nine months. On Monday, both jumped more than 5%, boosted by a weaker dollar.
Despite a resurgent pandemic, "economically harmful containment measures seem rather unlikely", said Julius Baer analyst Norbert Rucker, citing the effectiveness of vaccines.
Tuesday, 24 August 2021
Agility applies for licence to set up #Kuwait's first digital bank
Agility applies for licence to set up Kuwait's first digital bank
Kuwait-based Agility, one of the largest logistics companies in the Mena region, has applied for a licence to establish a digital bank as it pivots towards digital banking services in response to changing customer behaviour.
The move is part of the company's "ongoing focus on digital initiatives", vice chairman and chief executive Tarek Al Essa said on Tuesday in a statement to the Dubai Financial Market, where its shares are traded.
"Agility has requested a licence to establish a digital bank but there is nothing material at the moment," he said.
The company's comments came in response to an August 23 report by Kuwait's Al Rai newspaper on Agility's plans to set up Kuwait's first digital bank in line with FinTech developments in local and global markets.
The newspaper said that Agility's licence application includes an emphasis on technical aspects, cyber security, operational risks and measures to combat money laundering and terrorism financing.
Al Rai's sources indicated that the company has yet to determine the exact capital required to establish a digital bank in the local market, which is subject to the conditions of the Central Bank of Kuwait.
Kuwait-based Agility, one of the largest logistics companies in the Mena region, has applied for a licence to establish a digital bank as it pivots towards digital banking services in response to changing customer behaviour.
The move is part of the company's "ongoing focus on digital initiatives", vice chairman and chief executive Tarek Al Essa said on Tuesday in a statement to the Dubai Financial Market, where its shares are traded.
"Agility has requested a licence to establish a digital bank but there is nothing material at the moment," he said.
The company's comments came in response to an August 23 report by Kuwait's Al Rai newspaper on Agility's plans to set up Kuwait's first digital bank in line with FinTech developments in local and global markets.
The newspaper said that Agility's licence application includes an emphasis on technical aspects, cyber security, operational risks and measures to combat money laundering and terrorism financing.
Al Rai's sources indicated that the company has yet to determine the exact capital required to establish a digital bank in the local market, which is subject to the conditions of the Central Bank of Kuwait.
Beyond Fossil Fuels: State Oil Producers Reach for Net Zero - Bloomberg
Beyond Fossil Fuels: State Oil Producers Reach for Net Zero - Bloomberg
Petroleos Mexicanos left investors with more questions than answers after it announced in late July that it would be disclosing its greenhouse gas emissions on a more regular basis — then refused to discuss why they’d soared by double-digits from April to June, compared to a year ago.
The moment was awkward to say the least, but analysts also welcomed it as a first wobbly step in a segment of the fossil fuel industry that’s still refining its green marketing strategy.
Pemex, as the Mexican oil giant is known, is among a growing number of national oil companies facing pressure from foreign shareholders and investors to track carbon emissions and reduce them. Unlike their privately held peers, these oil companies’ main shareholder is the state, putting some riskier or more experimental options out of reach.
State oil companies “have less flexibility to make investments or strategic changes in their business,” said Jonathan Wood, deputy global research director for Control Risks, a global risk consultancy group. They can’t simply sell their high-emitting assets, for instance. “Their mandate is to maximize government revenues and ensure a stable supply of affordable, domestic energy. And they are often working in markets where there are price controls or other measures designed to achieve those outcomes, which is very different than what international oil companies face,” said Wood.
Petroleos Mexicanos left investors with more questions than answers after it announced in late July that it would be disclosing its greenhouse gas emissions on a more regular basis — then refused to discuss why they’d soared by double-digits from April to June, compared to a year ago.
The moment was awkward to say the least, but analysts also welcomed it as a first wobbly step in a segment of the fossil fuel industry that’s still refining its green marketing strategy.
Pemex, as the Mexican oil giant is known, is among a growing number of national oil companies facing pressure from foreign shareholders and investors to track carbon emissions and reduce them. Unlike their privately held peers, these oil companies’ main shareholder is the state, putting some riskier or more experimental options out of reach.
State oil companies “have less flexibility to make investments or strategic changes in their business,” said Jonathan Wood, deputy global research director for Control Risks, a global risk consultancy group. They can’t simply sell their high-emitting assets, for instance. “Their mandate is to maximize government revenues and ensure a stable supply of affordable, domestic energy. And they are often working in markets where there are price controls or other measures designed to achieve those outcomes, which is very different than what international oil companies face,” said Wood.
Oil, Politics to Shape Long-Term Outlook for #SaudiArabia - Bloomberg video
Oil, Politics to Shape Long-Term Outlook for Saudi Arabia - Bloomberg
Florence Eid Oakden, Arabia Monitor, Founder/CEO, discusses the re-opening of the Saudi economy. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
RPT-COLUMN-Demand only one side of LNG price surge, supply cut by outages: Russell | Reuters
RPT-COLUMN-Demand only one side of LNG price surge, supply cut by outages: Russell | Reuters
The spot price of liquefied natural gas (LNG) in Asia is usually at a seasonal low in August in what is historically the shoulder season between summer and winter peak demand.
That the price of spot cargoes LNG-AS is at the highest for this time of year since 2013 has been largely put down to robust demand from top importers such as China, and a determination among buyers to ensure natural gas stocks are adequate for the upcoming northern hemisphere winter.
However, while there is undoubtedly a demand pull factor behind the rising price, it’s also worth noting that supply from major exporters such as Australia, Russia and the United States has been below potential in recent months.
While some top exporters, such as Qatar, have been able to lift production, it certainly hasn’t added sufficient volumes to slake Asia’s robust demand for the super-chilled fuel.
The spot price of liquefied natural gas (LNG) in Asia is usually at a seasonal low in August in what is historically the shoulder season between summer and winter peak demand.
That the price of spot cargoes LNG-AS is at the highest for this time of year since 2013 has been largely put down to robust demand from top importers such as China, and a determination among buyers to ensure natural gas stocks are adequate for the upcoming northern hemisphere winter.
However, while there is undoubtedly a demand pull factor behind the rising price, it’s also worth noting that supply from major exporters such as Australia, Russia and the United States has been below potential in recent months.
While some top exporters, such as Qatar, have been able to lift production, it certainly hasn’t added sufficient volumes to slake Asia’s robust demand for the super-chilled fuel.
Oil extends gains on brighter demand outlook, Mexico outages | Reuters
Oil extends gains on brighter demand outlook, Mexico outages | Reuters
Oil prices rose on Tuesday, extending sharp gains on a bullish demand outlook as Mexico suffered a big production outage and U.S. regulators issued their first full approval for a COVID-19 vaccine.
Brent crude oil futures were up 83 cents, or 1.2%, at $69.58 a barrel by 0941 GMT, while U.S. West Texas Intermediate (WTI) gained 68 cents, or 1%, to $66.32.
Both benchmarks jumped more than 5% on Monday, helped by a weaker dollar, after marking their biggest week of losses in more than nine months last week.
"Even though the pandemic resurges and fuels health system concerns, economically harmful containment measures seem rather unlikely, not least as the vaccines prove their merits," Norbert Rucker, analyst at bank Julius Baer said.
Oil prices rose on Tuesday, extending sharp gains on a bullish demand outlook as Mexico suffered a big production outage and U.S. regulators issued their first full approval for a COVID-19 vaccine.
Brent crude oil futures were up 83 cents, or 1.2%, at $69.58 a barrel by 0941 GMT, while U.S. West Texas Intermediate (WTI) gained 68 cents, or 1%, to $66.32.
Both benchmarks jumped more than 5% on Monday, helped by a weaker dollar, after marking their biggest week of losses in more than nine months last week.
"Even though the pandemic resurges and fuels health system concerns, economically harmful containment measures seem rather unlikely, not least as the vaccines prove their merits," Norbert Rucker, analyst at bank Julius Baer said.
#Dubai Home Sales Hit Eight-Year High, Boosting Depressed Prices - Bloomberg
Dubai Home Sales Hit Eight-Year High, Boosting Depressed Prices - Bloomberg
Residential transactions in Dubai surged to the highest level since 2013 in the six months to June, as people sought out larger homes, boosting prices in a market that’s been hamstrung by excess supply for years.
Average home prices rose 2.8% in the six months to June, according to real estate adviser CBRE Group Inc. “Given the strength of demand underpinning the market, we have seen price performance improve considerably,” said Taimur Khan, head of research at CBRE. Still, the increase is from a low base as it compares with prices in June 2020, when the world was grappling with lockdowns.
Transaction volumes soared in the first half, surging 69.2% and 46.4% compared to the same periods in 2020 and 2019 respectively, CBRE said. The top end of Dubai’s housing market, mostly single family homes known as villas, saw a resurgence of demand and led the increase in average prices.
The luxury end of the market has come alive in a city that became a haven for wealthy Europeans escaping lockdowns and for others drawn by the ease of getting vaccinated from Covid-19. The Middle East’s business and tourism hub provided an additional lure after a property downturn that started nearly seven years ago shaved more than a third off values.
Residential transactions in Dubai surged to the highest level since 2013 in the six months to June, as people sought out larger homes, boosting prices in a market that’s been hamstrung by excess supply for years.
Average home prices rose 2.8% in the six months to June, according to real estate adviser CBRE Group Inc. “Given the strength of demand underpinning the market, we have seen price performance improve considerably,” said Taimur Khan, head of research at CBRE. Still, the increase is from a low base as it compares with prices in June 2020, when the world was grappling with lockdowns.
Transaction volumes soared in the first half, surging 69.2% and 46.4% compared to the same periods in 2020 and 2019 respectively, CBRE said. The top end of Dubai’s housing market, mostly single family homes known as villas, saw a resurgence of demand and led the increase in average prices.
The luxury end of the market has come alive in a city that became a haven for wealthy Europeans escaping lockdowns and for others drawn by the ease of getting vaccinated from Covid-19. The Middle East’s business and tourism hub provided an additional lure after a property downturn that started nearly seven years ago shaved more than a third off values.
#Saudi Second-Quarter Exports Jump on Eased Lockdown, Oil Rally - Bloomberg
Saudi Second-Quarter Exports Jump on Eased Lockdown, Oil Rally - Bloomberg
Saudi Arabia’s exports rose 99.4% during the second quarter of the year on an annual basis, driven mainly by the easing of Covid-19 lockdown measures and a recovery in oil prices.
Total revenue was 238.6 billion riyals ($63.6 billion), up from around 120 billion riyals a year earlier, according to a statement by the General Authority for Statistics on Tuesday. Oil exports rose 126% during the quarter.
Saudi Arabia’s exports rose 99.4% during the second quarter of the year on an annual basis, driven mainly by the easing of Covid-19 lockdown measures and a recovery in oil prices.
Total revenue was 238.6 billion riyals ($63.6 billion), up from around 120 billion riyals a year earlier, according to a statement by the General Authority for Statistics on Tuesday. Oil exports rose 126% during the quarter.
- Non-oil exports increased by 52% year-on-year to about 66 billion riyals from nearly 43 billion riyals.
- Plastic and rubber products amounted to more than 34%, the biggest portion in non-oil exports.
- The share of oil exports in the total number increased to 72.5% from 64% a year ago.
- China was the biggest export destination in the second quarter, followed by India, Japan, South Korea, the U.S. and the United Arab Emirates.
- Revenue during June increased about 92% year-on-year to 85 billion riyals.
#Dubai's Emirates NBD will see profitability returning to pre-pandemic levels by 2022 | ZAWYA MENA Edition
Dubai's Emirates NBD will see profitability returning to pre-pandemic levels by 2022 | ZAWYA MENA Edition
Moody's Investors Service expects the profitability of Dubai’s Emirates NBD to be more resilient than its peers, reflecting the benefits from the bank's strong ties with the Dubai government and large corporates, large retail franchise, geographical diversification in the region and large scale operations.
Moody’s has changed the outlook on long-term bank deposit and senior unsecured ratings of Dubai-based lender Emirates NBD to stable from negative. The stable outlook balances the rating agency's assessment that Emirates NBD will restore its strong profitability to the pre-pandemic levels by 2022.
The ratings agency also affirmed the A3 long-term foreign and local currency deposit ratings and A3 senior unsecured rating of Emirates NBD, and (P)A3 backed senior unsecured MTN programme foreign currency rating assigned to the funding vehicle EIB Sukuk Company Ltd.
It also affirmed the ENBD's Baseline Credit Assessment (BCA) and Adjusted BCA at ba1. At the same time, the rating agency also changed the outlook on long-term bank deposit and senior unsecured ratings of ENBD to stable from negative.
Moody's Investors Service expects the profitability of Dubai’s Emirates NBD to be more resilient than its peers, reflecting the benefits from the bank's strong ties with the Dubai government and large corporates, large retail franchise, geographical diversification in the region and large scale operations.
Moody’s has changed the outlook on long-term bank deposit and senior unsecured ratings of Dubai-based lender Emirates NBD to stable from negative. The stable outlook balances the rating agency's assessment that Emirates NBD will restore its strong profitability to the pre-pandemic levels by 2022.
The ratings agency also affirmed the A3 long-term foreign and local currency deposit ratings and A3 senior unsecured rating of Emirates NBD, and (P)A3 backed senior unsecured MTN programme foreign currency rating assigned to the funding vehicle EIB Sukuk Company Ltd.
It also affirmed the ENBD's Baseline Credit Assessment (BCA) and Adjusted BCA at ba1. At the same time, the rating agency also changed the outlook on long-term bank deposit and senior unsecured ratings of ENBD to stable from negative.
#Qatar's Masraf Al Rayan buys additional 5% stake in Al Rayan | ZAWYA MENA Edition
Qatar's Masraf Al Rayan buys additional 5% stake in Al Rayan | ZAWYA MENA Edition
Qatar's Islamic lender Masraf Al Rayan has bought an additional 5 percent stake in Al Rayan (UK) Ltd from Qatar Holding LLC.
This represents a purchase of 5,000,000 ordinary shares of GBP1 par value. As a result of the purchase, Masraf Al Rayan shareholding in Al Rayan (UK) Ltd has increased from 70 percent to 75 percent, the bank said in a statement on the Qatar Stock Exchange on Monday. Al Rayan (UK) Ltd holds 98.34 percent of Al Rayan Bank PLC.
Masraf Al Rayan is in talks with Khalij Commercial Bank over a potential merger, which will lead to the creation of one of the largest Sharia-compliant banks in Qatar and the Middle East.
Qatar's Islamic lender Masraf Al Rayan has bought an additional 5 percent stake in Al Rayan (UK) Ltd from Qatar Holding LLC.
This represents a purchase of 5,000,000 ordinary shares of GBP1 par value. As a result of the purchase, Masraf Al Rayan shareholding in Al Rayan (UK) Ltd has increased from 70 percent to 75 percent, the bank said in a statement on the Qatar Stock Exchange on Monday. Al Rayan (UK) Ltd holds 98.34 percent of Al Rayan Bank PLC.
Masraf Al Rayan is in talks with Khalij Commercial Bank over a potential merger, which will lead to the creation of one of the largest Sharia-compliant banks in Qatar and the Middle East.
EXCLUSIVE #AbuDhabi conglomerate IHC eyes deals worth 'a few billion dollars', CEO says | Reuters
EXCLUSIVE Abu Dhabi conglomerate IHC eyes deals worth 'a few billion dollars', CEO says | Reuters
Abu Dhabi conglomerate International Holding Co (IHC.AD) is considering acquisitions worth a few billion dollars in total across several sectors, including a real estate developer in Abu Dhabi, its chief executive Syed Basar Shueb told Reuters.
IHC, now the most valuable company on the Abu Dhabi bourse with a market capitalisation of $72 billion, is also considering a 2022 initial public offering (IPO) for its majority-owned healthcare firm Pure Health, Shueb said in an interview. Pure Health has played a pivotal role in screening for COVID-19 infections in the United Arab Emirates.
Shueb also said the tightly held conglomerate, active in sectors from food to leisure, is close to acquiring a second-tier Abu Dhabi property developer, which would add to its indirect minority stake in Aldar Properties (ALDAR.AD). He didn't identify any targets, nor specify how much the real estate deal might be worth.
"All the sectors across the nine verticals we are operating (in), we are looking for an acquisition," Shueb said. "There are a few billion dollars of acquisitions we are looking at."
IHC is also looking at three or four targets in the food sector, as well as eyeing targets in the healthcare and leisure and retail sectors, he said.
Abu Dhabi conglomerate International Holding Co (IHC.AD) is considering acquisitions worth a few billion dollars in total across several sectors, including a real estate developer in Abu Dhabi, its chief executive Syed Basar Shueb told Reuters.
IHC, now the most valuable company on the Abu Dhabi bourse with a market capitalisation of $72 billion, is also considering a 2022 initial public offering (IPO) for its majority-owned healthcare firm Pure Health, Shueb said in an interview. Pure Health has played a pivotal role in screening for COVID-19 infections in the United Arab Emirates.
Shueb also said the tightly held conglomerate, active in sectors from food to leisure, is close to acquiring a second-tier Abu Dhabi property developer, which would add to its indirect minority stake in Aldar Properties (ALDAR.AD). He didn't identify any targets, nor specify how much the real estate deal might be worth.
"All the sectors across the nine verticals we are operating (in), we are looking for an acquisition," Shueb said. "There are a few billion dollars of acquisitions we are looking at."
IHC is also looking at three or four targets in the food sector, as well as eyeing targets in the healthcare and leisure and retail sectors, he said.
Oil rises as full U.S. clearance for COVID-19 vaccine stokes demand hopes | Reuters
Oil rises as full U.S. clearance for COVID-19 vaccine stokes demand hopes | Reuters
Oil prices rose on Tuesday after the U.S. drug regulator granted full approval to the Pfizer Inc/BioNTech SE COVID-19 vaccine, stoking investor hopes that higher fuel demand would follow a potential rise in U.S. coronavirus vaccination rates.
Brent crude oil futures were up 46 cents, or 0.7%, to $69.21 a barrel by 0648 GMT, while U.S. West Texas Intermediate (WTI) had gained 34 cents, or 0.5%, to $65.98.
Both benchmarks jumped more than 5% on Monday, helped by a weaker U.S. dollar, after marking their biggest week of losses in more than nine months last week.
The U.S. Food and Drug Administration (FDA), which last December authorised the Pfizer/BioNtech two-dose vaccine for emergency use, has now issued full approval for use in people age 16 and older. read more
Oil prices rose on Tuesday after the U.S. drug regulator granted full approval to the Pfizer Inc/BioNTech SE COVID-19 vaccine, stoking investor hopes that higher fuel demand would follow a potential rise in U.S. coronavirus vaccination rates.
Brent crude oil futures were up 46 cents, or 0.7%, to $69.21 a barrel by 0648 GMT, while U.S. West Texas Intermediate (WTI) had gained 34 cents, or 0.5%, to $65.98.
Both benchmarks jumped more than 5% on Monday, helped by a weaker U.S. dollar, after marking their biggest week of losses in more than nine months last week.
The U.S. Food and Drug Administration (FDA), which last December authorised the Pfizer/BioNtech two-dose vaccine for emergency use, has now issued full approval for use in people age 16 and older. read more