Oil rally falters on pandemic surge, renewed Mexico supply | Reuters
Oil settled lower on Thursday, snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies.
Losses were limited by the potential for other supply interruptions. Energy companies prepared for the possibility of a severe storm hitting the U.S. Gulf Coast this weekend.
Brent crude settled down $1.18, or 1.6%, at $71.07 a barrel. U.S. West Texas Intermediate oil settled down 94 cents, or 1.4% at 67.42 a barrel.
Fresh COVID-19 outbreaks fueled by the Delta variant raised concerns about the strength of the economic recovery globally. read more
Thursday, 26 August 2021
‘We need jobs, we need a strong economy’: Covid and Biden allay Middle East tensions | Financial Times
‘We need jobs, we need a strong economy’: Covid and Biden allay Middle East tensions | Financial Times
Secret talks between longtime foes. Letters exchanged between leaders who have been adversaries for years. Television networks typically critical of opposing regimes now moderating their language.
All have fed into a mood of de-escalation taking hold in the capitals of some of the Middle East’s perennially competing powers — one that would have been unimaginable 18 months ago in a region blighted by rivalries and sectarian divisions.
Arab officials put the tentative trend down to the confluence of the coronavirus pandemic, its devastating economic impact and the election of Joe Biden as US president. Together, these have combined to push regional leaders to recalibrate their foreign policies.
“Everybody is fed up with how complicated things have been. And don’t underestimate the economic effect of Covid and saying ‘look, we will not be able to go forward unless we stabilise things politically’,” said a senior Arab official. “We need jobs, we need a strong economy — we can’t do that if we are not talking to each other.”
Diplomats and analysts caution that it is a cold peace; a pragmatic shift after the tumultuous period of Donald Trump’s presidency, when his hostility towards Iran exacerbated regional tensions. They add that it could easily be derailed.
MIDEAST STOCKS Major Gulf bourses fall on virus worries | Reuters
MIDEAST STOCKS Major Gulf bourses fall on virus worries | Reuters
Major stock markets in the Gulf ended lower on Thursday, with the Saudi index registering a second weekly loss, as Asian stocks fell on worries over rising cases of the Delta variant of the coronavirus.
Fresh COVID-19 outbreaks fuelled by the Delta variant are raising concerns about the strength of the economic recovery globally. read more
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 1.3% fall in Al Rajhi Bank (1120.SE) and a 1.7% decline in Saudi Arabian Mining Company (1211.SE).
In the kingdom, stocks were also pressured by declining oil prices.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, as renewed concerns about demand cut short a three-day rally, and as Mexico restored some oil production.
In Abu Dhabi, the index (.ADI) retreated 0.5%, dragged down by a 1.2% drop in Emirates Telecommunications Group (ETISALAT.AD) and a 1.6% decrease in Alpha Dhabi Holding (ALPHADHABI.AD).
"Markets are holding their breath in the wake of the U.S. Federal Reserve symposium. The president of the Federal Reserve is poised to speak on Friday, dropping a hint on when the asset purchasing program will be downsized," said Daniel Takieddine, senior market analyst at FXPrimus.
Later in the day, U.S. GDP figures are expected to confirm the direction of the global economy. The output of the world's biggest economy is forecast to be higher for the second quarter, Takieddine said.
Dubai's main share index (.DFMGI) edged down 0.1%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.3%, with petrochemical firm Industries Qatar (IQCD.QA) sliding 2.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, led by a 10% surge in Misr Fertilizers (MFPC.CA), which reported a sharp rise in first-half consolidated net profit.
Major stock markets in the Gulf ended lower on Thursday, with the Saudi index registering a second weekly loss, as Asian stocks fell on worries over rising cases of the Delta variant of the coronavirus.
Fresh COVID-19 outbreaks fuelled by the Delta variant are raising concerns about the strength of the economic recovery globally. read more
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 1.3% fall in Al Rajhi Bank (1120.SE) and a 1.7% decline in Saudi Arabian Mining Company (1211.SE).
In the kingdom, stocks were also pressured by declining oil prices.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, as renewed concerns about demand cut short a three-day rally, and as Mexico restored some oil production.
In Abu Dhabi, the index (.ADI) retreated 0.5%, dragged down by a 1.2% drop in Emirates Telecommunications Group (ETISALAT.AD) and a 1.6% decrease in Alpha Dhabi Holding (ALPHADHABI.AD).
"Markets are holding their breath in the wake of the U.S. Federal Reserve symposium. The president of the Federal Reserve is poised to speak on Friday, dropping a hint on when the asset purchasing program will be downsized," said Daniel Takieddine, senior market analyst at FXPrimus.
Later in the day, U.S. GDP figures are expected to confirm the direction of the global economy. The output of the world's biggest economy is forecast to be higher for the second quarter, Takieddine said.
Dubai's main share index (.DFMGI) edged down 0.1%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.3%, with petrochemical firm Industries Qatar (IQCD.QA) sliding 2.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, led by a 10% surge in Misr Fertilizers (MFPC.CA), which reported a sharp rise in first-half consolidated net profit.
#UAE Royal Visits #Qatar for First Time Since 3-Year Boycott Ended - Bloomberg
UAE Royal Visits Qatar for First Time Since 3-Year Boycott Ended - Bloomberg
A senior United Arab Emirates royal visited Qatar to meet with its emir, the first high-level engagement between the ruling families since the end of a bitter three-year dispute that cut Doha off from many of its neighbors.
Sheikh Tahnoun bin Zayed Al Nahyan, UAE national security adviser, led the delegation to Qatar that included talks with ruler Sheikh Tamim bin Hamad Al Thani, the UAE’s state-run WAM news agency reported on Thursday.
The surprise meeting follows several years of hostility between the two Gulf states and came nearly a week after Sheikh Tahnoun visited Turkey, which has been on the opposite side to the UAE in recent regional conflicts.
The diplomacy has broad implications at a time of uncertainty in the region. States are assessing how to deal with Afghanistan, where the Taliban swept to power amid the U.S. withdrawal. And regional heavyweight Iran is weighing how to proceed with talks to revive its nuclear deal with world powers.
It could also point to a reduction in tensions between alliances that emerged after the Arab Spring; one that supported political Islam, spearheaded by Turkey and Qatar, and another that opposed it championed by the UAE.
“The meeting touched upon bilateral relations and ways to further develop cooperation between the two countries, especially in the economic and trade fields,” as well as achieving the common interests of the two countries, according to WAM.
A senior United Arab Emirates royal visited Qatar to meet with its emir, the first high-level engagement between the ruling families since the end of a bitter three-year dispute that cut Doha off from many of its neighbors.
Sheikh Tahnoun bin Zayed Al Nahyan, UAE national security adviser, led the delegation to Qatar that included talks with ruler Sheikh Tamim bin Hamad Al Thani, the UAE’s state-run WAM news agency reported on Thursday.
The surprise meeting follows several years of hostility between the two Gulf states and came nearly a week after Sheikh Tahnoun visited Turkey, which has been on the opposite side to the UAE in recent regional conflicts.
The diplomacy has broad implications at a time of uncertainty in the region. States are assessing how to deal with Afghanistan, where the Taliban swept to power amid the U.S. withdrawal. And regional heavyweight Iran is weighing how to proceed with talks to revive its nuclear deal with world powers.
It could also point to a reduction in tensions between alliances that emerged after the Arab Spring; one that supported political Islam, spearheaded by Turkey and Qatar, and another that opposed it championed by the UAE.
“The meeting touched upon bilateral relations and ways to further develop cooperation between the two countries, especially in the economic and trade fields,” as well as achieving the common interests of the two countries, according to WAM.
#Dubai mall operator Majid Al Futtaim secures first $1.5bln sustainability-linked loan | ZAWYA MENA Edition
Dubai mall operator Majid Al Futtaim secures first $1.5bln sustainability-linked loan | ZAWYA MENA Edition
Dubai-based shopping mall operator Majid Al Futtaim (MAF) has secured its first sustainability-linked loan (SLL) of $1.5 billion dirhams.
The five-year financing, which is structured as a revolving credit facility, is “the largest corporate, non-government-linked SLL in the region”, the company said. It is also considered the largest in the real estate sector in the Middle East and North Africa (MENA).
The facility is designed to link with the company’s environmental, social and governance (ESG) performance.
The agreement includes a gender diversity target for women to constitute 30 percent of board members and senior management roles.
“The signing of our first sustainability-linked loan comes as a result of, and in line with, our long-term strategic targets, including the production of more energy and water than we consume, reaching a net positive business model by 2040,” said Ziad Chalhoub, chief financial officer of Majid Al Futtaim Holding.
As part of the SLL, Majid Al Futtaim plans to have all its malls certified LEED Gold or better. A LEED certification provides independent verification of a building or neighborhood’s green features.
In its latest sustainability report published in June, the company said it has achieved 97 percent of the targets set out in its annual sustainability strategy last year, despite the business and economic disruption brought about by the pandemic.
Dubai-based shopping mall operator Majid Al Futtaim (MAF) has secured its first sustainability-linked loan (SLL) of $1.5 billion dirhams.
The five-year financing, which is structured as a revolving credit facility, is “the largest corporate, non-government-linked SLL in the region”, the company said. It is also considered the largest in the real estate sector in the Middle East and North Africa (MENA).
The facility is designed to link with the company’s environmental, social and governance (ESG) performance.
The agreement includes a gender diversity target for women to constitute 30 percent of board members and senior management roles.
“The signing of our first sustainability-linked loan comes as a result of, and in line with, our long-term strategic targets, including the production of more energy and water than we consume, reaching a net positive business model by 2040,” said Ziad Chalhoub, chief financial officer of Majid Al Futtaim Holding.
As part of the SLL, Majid Al Futtaim plans to have all its malls certified LEED Gold or better. A LEED certification provides independent verification of a building or neighborhood’s green features.
In its latest sustainability report published in June, the company said it has achieved 97 percent of the targets set out in its annual sustainability strategy last year, despite the business and economic disruption brought about by the pandemic.
Oil rally ends amid COVID-19 concerns, returning supply | Reuters
Oil rally ends amid COVID-19 concerns, returning supply | Reuters
Oil fell on Thursday for the first session this week as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as Mexico restored some oil production.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, having risen 1.7% on Wednesday.
U.S. West Texas Intermediate oil was down 78 cents, or 1.15%, at $67.58 a barrel, after gaining 1.2% in the previous session.
The U.S. Energy Information Administration (EIA) reported that American crude inventories fell last week for a third consecutive week and overall fuel demand increased to the most since March 2020.
But the demand picture is not entirely bullish.
Oil fell on Thursday for the first session this week as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as Mexico restored some oil production.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, having risen 1.7% on Wednesday.
U.S. West Texas Intermediate oil was down 78 cents, or 1.15%, at $67.58 a barrel, after gaining 1.2% in the previous session.
The U.S. Energy Information Administration (EIA) reported that American crude inventories fell last week for a third consecutive week and overall fuel demand increased to the most since March 2020.
But the demand picture is not entirely bullish.
Al Rayan's Khan on #Qatar's Stock Rally - Bloomberg video
Al Rayan's Khan on Qatar's Stock Rally - Bloomberg
Akber Khan, Al Rayan Investment, Senior Director - Asset Management discusses Qatar's stocks rally. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Arabian nights buzz: staycations boost #Saudi economy | Reuters
Arabian nights buzz: staycations boost Saudi economy | Reuters
When U.S. celebrity chef David Burke opened his second restaurant in Riyadh earlier in August, hudreds of Saudi men and women packed the venue to enjoy his dishes and fruity "mocktails" to a DJ's mix of Arabic and Western pop.
While Saudis usually escape the desert country over the summer when temperatures can reach over 50 degrees Celsius, the coronavirus pandemic has seen them flock to restaurants and cafes in the open-air mall The Zone, bolstering Saudi Arabia's consumer sector.
Noura, 21, a Saudi hostess at one such upscale restaurant said she has been booking up tables weeks in advance.
"Before, that would have been impossible in August because no one was here," she said. "Now, we have some regulars who come here and spend hundreds every week."
When U.S. celebrity chef David Burke opened his second restaurant in Riyadh earlier in August, hudreds of Saudi men and women packed the venue to enjoy his dishes and fruity "mocktails" to a DJ's mix of Arabic and Western pop.
While Saudis usually escape the desert country over the summer when temperatures can reach over 50 degrees Celsius, the coronavirus pandemic has seen them flock to restaurants and cafes in the open-air mall The Zone, bolstering Saudi Arabia's consumer sector.
Noura, 21, a Saudi hostess at one such upscale restaurant said she has been booking up tables weeks in advance.
"Before, that would have been impossible in August because no one was here," she said. "Now, we have some regulars who come here and spend hundreds every week."
Creditors file winding up petition for Air Seychelles | Reuters
Creditors file winding up petition for Air Seychelles | Reuters
Holders of around $70 million in troubled bonds issued on behalf of state-owned Air Seychelles have filed a petition to wind up the African airline, they said in a statement, after a standoff over the unpaid debt.
The move is the latest effort by creditors to recover $1.2 billion owed by Abu Dhabi’s Etihad Airways and airlines it partly owned when the debt was issued in 2015 and 2016, such as Air Seychelles.
At the time, Etihad owned 40% of Air Seychelles and it was in a consortium along with the Gulf airline and other carriers that borrowed the money through special purpose vehicle EA Partners.
"The Noteholder Committee (acting on behalf of the EA Partners bondholders) ... filed a petition dated 19 August 2021 for the winding-up of Air Seychelles, and on 24 August 2021, such petition was served on, and acknowledged by, Air Seychelles," the creditors said in a statement on Wednesday.
Holders of around $70 million in troubled bonds issued on behalf of state-owned Air Seychelles have filed a petition to wind up the African airline, they said in a statement, after a standoff over the unpaid debt.
The move is the latest effort by creditors to recover $1.2 billion owed by Abu Dhabi’s Etihad Airways and airlines it partly owned when the debt was issued in 2015 and 2016, such as Air Seychelles.
At the time, Etihad owned 40% of Air Seychelles and it was in a consortium along with the Gulf airline and other carriers that borrowed the money through special purpose vehicle EA Partners.
"The Noteholder Committee (acting on behalf of the EA Partners bondholders) ... filed a petition dated 19 August 2021 for the winding-up of Air Seychelles, and on 24 August 2021, such petition was served on, and acknowledged by, Air Seychelles," the creditors said in a statement on Wednesday.
MIDEAST STOCKS Most Gulf indexes track Asian shares lower on virus woes | Reuters
MIDEAST STOCKS Most Gulf indexes track Asian shares lower on virus woes | Reuters
Most stock markets in the Gulf region fell in early trade on Thursday, tracking Asian shares lower on concerns about the rising cases of coronavirus' Delta variant hitting oil prices.
Brent crude was down 29 cents, or 0.4%, at $71.96 a barrel by 0649 GMT, as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as production returned in Mexico.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Riyad Bank (1010.SE) falling 1.1% and petrochemical maker Saudi Basic Industries (2010.SE) was down 0.3%.
In Abu Dhabi, the index (.ADI) fell 0.6%, weighed down by a 0.6% drop in the country's largest lender First Abu Dhabi Bank (FAB.AD) and 0.8% decrease in Emirates Telecommunications Group (ETISALAT.AD).
The main share index (.DFMI) in Dubai, the travel and tourism hub of the Middle East, declined 0.7%, hit by a 1.4% fall in Dubai Islamic Bank (DISB.DU) and a 1.1% drop in Emirates NBD Bank (ENBD.DU).
Dubai has set its official differential to Oman futures for November at a discount of $0.20 per barrel, the Dubai Department of Petroleum Affairs said on Wednesday.
Fresh COVID-19 outbreaks fuelled by the Delta variant of the coronavirus are raising concerns about the strength of the economic recovery globally. read more
The Qatari index (.QSI) lost 0.4%, weighed down by a 1.5% fall in Industries Qatar (IQCD.QA).
Most stock markets in the Gulf region fell in early trade on Thursday, tracking Asian shares lower on concerns about the rising cases of coronavirus' Delta variant hitting oil prices.
Brent crude was down 29 cents, or 0.4%, at $71.96 a barrel by 0649 GMT, as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as production returned in Mexico.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Riyad Bank (1010.SE) falling 1.1% and petrochemical maker Saudi Basic Industries (2010.SE) was down 0.3%.
In Abu Dhabi, the index (.ADI) fell 0.6%, weighed down by a 0.6% drop in the country's largest lender First Abu Dhabi Bank (FAB.AD) and 0.8% decrease in Emirates Telecommunications Group (ETISALAT.AD).
The main share index (.DFMI) in Dubai, the travel and tourism hub of the Middle East, declined 0.7%, hit by a 1.4% fall in Dubai Islamic Bank (DISB.DU) and a 1.1% drop in Emirates NBD Bank (ENBD.DU).
Dubai has set its official differential to Oman futures for November at a discount of $0.20 per barrel, the Dubai Department of Petroleum Affairs said on Wednesday.
Fresh COVID-19 outbreaks fuelled by the Delta variant of the coronavirus are raising concerns about the strength of the economic recovery globally. read more
The Qatari index (.QSI) lost 0.4%, weighed down by a 1.5% fall in Industries Qatar (IQCD.QA).
Oil rally ends amid COVID-19 concerns, returning supply | Reuters
Oil rally ends amid COVID-19 concerns, returning supply | Reuters
Oil fell on Thursday for the first session this week as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as production returned in Mexico.
Brent crude was down 29 cents, or 0.4%, at $71.96 a barrel by 0649 GMT, having risen 1.7% on Wednesday.
U.S. oil was down 44 cents, or 0.6%, at $67.92 a barrel, after gaining 1.2% in the previous session.
The U.S. Energy Information Administration (EIA) reported that American crude inventories fell last week for a third consecutive week and overall fuel demand increased to the most since March 2020, boosting prices around 10% through Wednesday.
Oil fell on Thursday for the first session this week as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as production returned in Mexico.
Brent crude was down 29 cents, or 0.4%, at $71.96 a barrel by 0649 GMT, having risen 1.7% on Wednesday.
U.S. oil was down 44 cents, or 0.6%, at $67.92 a barrel, after gaining 1.2% in the previous session.
The U.S. Energy Information Administration (EIA) reported that American crude inventories fell last week for a third consecutive week and overall fuel demand increased to the most since March 2020, boosting prices around 10% through Wednesday.