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Monday 30 August 2021
Oil Edges Up as U.S. Gulf Producers Assess Damage After Ida - Bloomberg
Oil Edges Up as U.S. Gulf Producers Assess Damage After Ida - Bloomberg
Oil up, off session highs after Ida; OPEC+ looks to boost output | Reuters
Oil up, off session highs after Ida; OPEC+ looks to boost output | Reuters
Oil edged higher on Monday, but remained below session highs as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
The storm's move inland shifted the focus to when oil refiners can restart and produce fuels after heavy winds and rains.
"We're in wait-and see mode on how badly the refiners will be impacted by the power outages," said John Kilduff, a partner at Again Capital Management in New York. "There's going to be an accounting to be done later this week as damage is assessed - I would give it some time to breathe, like a fine wine," he said.
Brent crude rose 49 cents a barrel, or 6.7% to 73.19 by 12:24 ET (1624 GMT), having reached $73.69 earlier, the highest since Aug. 2. U.S. crude rose 37 cents, or 0.51% to $69.11 a barrel, having earlier touched $69.64, the highest since Aug. 6.
Oil edged higher on Monday, but remained below session highs as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
The storm's move inland shifted the focus to when oil refiners can restart and produce fuels after heavy winds and rains.
"We're in wait-and see mode on how badly the refiners will be impacted by the power outages," said John Kilduff, a partner at Again Capital Management in New York. "There's going to be an accounting to be done later this week as damage is assessed - I would give it some time to breathe, like a fine wine," he said.
Brent crude rose 49 cents a barrel, or 6.7% to 73.19 by 12:24 ET (1624 GMT), having reached $73.69 earlier, the highest since Aug. 2. U.S. crude rose 37 cents, or 0.51% to $69.11 a barrel, having earlier touched $69.64, the highest since Aug. 6.
MIDEAST STOCKS Most Gulf bourses follow global shares higher | Reuters
MIDEAST STOCKS Most Gulf bourses follow global shares higher | Reuters
Most stock markets in the Gulf settled higher on Monday, building on gains from the previous session as global shares hovered around record highs on signs the Fed won't rush to wind down its massive stimulus.
Gains in world stock markets helped lift investor confidence in the Gulf, said Daniel Takieddine, senior market analyst at FXPrimus.
Underpinning positive sentiment in global equity markets was Friday's Jackson Hole speech by U.S. Federal Reserve Chair Jerome Powell in which he said tapering of stimulus measures could begin this year, but added the central bank would remain cautious. read more
"Additional support is anticipated from the U.S. economic growth in general," said Takieddine.
Saudi Arabia's benchmark index (.TASI) advanced 0.7%, with Saudi National Bank (1180.SE), the kingdom's largest lender, and Saudi Telecom Company (7010.SE) both gaining 1.9%.
In Abu Dhabi, the index (.ADI) added 0.4%, led by a 0.8% gain in Emirates Telecommunications Group (ETISALAT.AD) and a 0.6% increase in conglomerate International Holding (IHC.AD).
The Qatari index (.QSI) rose 0.2%, snapping three sessions of losses, helped by a 0.6% rise in petrochemical maker Industries Qatar (IQCD.QA).
Elsewhere, dairy company Baladna (BLDN.QA) finished 0.6% higher, a day after it announced a new chief executive.
Dubai's main share index (.DFMGI), however, eased 0.1%, pressured by a 0.6% drop in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Dubai bourse will remain cautious ahead of OPEC's meeting later this week, said Takieddine.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.5% higher, with top lender Commercial International Bank (COMI.CA) rising 0.8%, while Cleopatra Hospital (CLHO.CA) jumped over 5%.
On Sunday, the hospital operator reported a consolidated net profit of 90.6 million Egyptian pounds ($5.79 million) for the second quarter, up from 18.5 million a year earlier.
Among other gainers, investment bank EFG Hermes (HRHO.CA) gained 1.7% after obtaining central bank approval to complete Arab Invesment Bank's deal.
Most stock markets in the Gulf settled higher on Monday, building on gains from the previous session as global shares hovered around record highs on signs the Fed won't rush to wind down its massive stimulus.
Gains in world stock markets helped lift investor confidence in the Gulf, said Daniel Takieddine, senior market analyst at FXPrimus.
Underpinning positive sentiment in global equity markets was Friday's Jackson Hole speech by U.S. Federal Reserve Chair Jerome Powell in which he said tapering of stimulus measures could begin this year, but added the central bank would remain cautious. read more
"Additional support is anticipated from the U.S. economic growth in general," said Takieddine.
Saudi Arabia's benchmark index (.TASI) advanced 0.7%, with Saudi National Bank (1180.SE), the kingdom's largest lender, and Saudi Telecom Company (7010.SE) both gaining 1.9%.
In Abu Dhabi, the index (.ADI) added 0.4%, led by a 0.8% gain in Emirates Telecommunications Group (ETISALAT.AD) and a 0.6% increase in conglomerate International Holding (IHC.AD).
The Qatari index (.QSI) rose 0.2%, snapping three sessions of losses, helped by a 0.6% rise in petrochemical maker Industries Qatar (IQCD.QA).
Elsewhere, dairy company Baladna (BLDN.QA) finished 0.6% higher, a day after it announced a new chief executive.
Dubai's main share index (.DFMGI), however, eased 0.1%, pressured by a 0.6% drop in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Dubai bourse will remain cautious ahead of OPEC's meeting later this week, said Takieddine.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.5% higher, with top lender Commercial International Bank (COMI.CA) rising 0.8%, while Cleopatra Hospital (CLHO.CA) jumped over 5%.
On Sunday, the hospital operator reported a consolidated net profit of 90.6 million Egyptian pounds ($5.79 million) for the second quarter, up from 18.5 million a year earlier.
Among other gainers, investment bank EFG Hermes (HRHO.CA) gained 1.7% after obtaining central bank approval to complete Arab Invesment Bank's deal.
#Qatar emerges as key player in Afghanistan after US pullout
Qatar emerges as key player in Afghanistan after US pullout
Qatar played an outsized role in U.S. efforts to evacuate tens of thousands of people from Afghanistan. Now the tiny Gulf Arab state is being asked to help shape what is next for Afghanistan because of its ties with both Washington and the Taliban, who are in charge in Kabul.
Qatar will be among global heavyweights on Monday when U.S. Secretary of State Antony Blinken hosts a virtual meeting to discuss a coordinated approach for the days ahead, as the U.S. completes its withdrawal from Afghanistan following the Taliban takeover of the country. The meeting will also include Canada, France, Germany, Italy, Japan, the United Kingdom, Turkey, the European Union and NATO.
Qatar has also reportedly been asked by the Taliban to provide civilian technical assistance at Kabul’s international airport, once the U.S. military withdrawal is complete on Tuesday. Authorities in Qatar have not commented on the reports.
Meanwhile, international U.N. agencies are asking Qatar for help and support in delivering aid to Afghanistan.
Qatar played an outsized role in U.S. efforts to evacuate tens of thousands of people from Afghanistan. Now the tiny Gulf Arab state is being asked to help shape what is next for Afghanistan because of its ties with both Washington and the Taliban, who are in charge in Kabul.
Qatar will be among global heavyweights on Monday when U.S. Secretary of State Antony Blinken hosts a virtual meeting to discuss a coordinated approach for the days ahead, as the U.S. completes its withdrawal from Afghanistan following the Taliban takeover of the country. The meeting will also include Canada, France, Germany, Italy, Japan, the United Kingdom, Turkey, the European Union and NATO.
Qatar has also reportedly been asked by the Taliban to provide civilian technical assistance at Kabul’s international airport, once the U.S. military withdrawal is complete on Tuesday. Authorities in Qatar have not commented on the reports.
Meanwhile, international U.N. agencies are asking Qatar for help and support in delivering aid to Afghanistan.
Oil steadies as Hurricane Ida weakens, OPEC+ in focus | Reuters
Oil steadies as Hurricane Ida weakens, OPEC+ in focus | Reuters
Oil steadied on Monday, giving up most of an earlier rally to a four-week high, as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
Brent crude was up 11 cents, or 0.2%, at $72.81 by 1135 GMT, having reached $73.69 earlier, the highest since Aug. 2. U.S. crude fell 30 cents or 0.4% to $68.44, having earlier touched $69.64, the highest since Aug. 6.
"Hurricane Ida will dictate oil's near-term direction," said Jeffrey Halley, senior market analyst at OANDA. "If Ida weakens and its path of destruction is lower than expected, oil's rally will temporarily lose momentum here."
Oil steadied on Monday, giving up most of an earlier rally to a four-week high, as Hurricane Ida weakened after forcing shutdowns of U.S. Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm. read more
Brent crude was up 11 cents, or 0.2%, at $72.81 by 1135 GMT, having reached $73.69 earlier, the highest since Aug. 2. U.S. crude fell 30 cents or 0.4% to $68.44, having earlier touched $69.64, the highest since Aug. 6.
"Hurricane Ida will dictate oil's near-term direction," said Jeffrey Halley, senior market analyst at OANDA. "If Ida weakens and its path of destruction is lower than expected, oil's rally will temporarily lose momentum here."
#SaudiArabia’s grandiose climate plans struggle to take off | Financial Times
Saudi Arabia’s grandiose climate plans struggle to take off | Financial Times
When Crown Prince Mohammed bin Salman announced Saudi Arabia’s “green initiative” this year he did so with the type of eye-catching pledge that has come to characterise the young royal’s grandiose plans to modernise the kingdom.
Promising that the world’s top oil exporter would lead the “next green era”, Prince Mohammed vowed that 50 per cent of Saudi Arabia’s power generation would be provided by renewables by 2030, with the other 50 per cent fuelled by gas. Riyadh would also plant 10bn trees in the desert nation in the coming decades.
“As a leading global oil producer, we are fully aware of our share of responsibility in advancing the fight against the climate crisis,” the prince said as he unveiled the plan in March. “And as [with] our pioneering role in stabilising energy markets during the oil and gas era, we will act to lead the next green era.”
But as with many of the prince’s ambitious schemes, sceptics question whether his rhetoric will be matched with tangible action on the ground. The kingdom burns about 1m barrels of oil equivalent a day to fuel its power system, a figure that rises sharply in the scorching summer months when Saudis rely on air-conditioning to keep cool.
The Climate Action Tracker, an independent research group, rates Saudi Arabia’s climate commitments as “critically insufficient”, citing a lack of clear policies or data about its emissions.
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
Major stock markets in the Gulf were mixed in early trade on Monday in the absence of fresh factors to trade on, with the Qatari index on track to end three sessions of losses.
Saudi Arabia's benchmark index (.TASI) rose 0.1%, helped by a 0.9% gain in Saudi Telecom Company (7010.SE) and a 0.2% increase in Al Rajhi Bank (1120.SE).
Direct foreign investment into Saudi Arabia rose by about 13% in the first quarter of this year, Saudi Investment Minister Khalid al-Falih said in an interview with Al Arabiya television. read more
Oil prices, a key catalyst for the Gulf's financial markets, retreated as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent crude rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida. The Saudi energy index (.TENI) however traded flat.
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.7% fall in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange said on Saturday it would halve its trading commissions to 0.025% from 0.05% from Sept. 1, its second commission cut this year and the third in three years. read more
Dubai's main share index (.DFMGI) fell 0.2%, weighed down by a 0.7% drop in Emirates NBD Bank (ENBD.DU) and a 0.5% decrease in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI) added 0.2%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) gaining 0.5% and petrochemical maker Industries Qatar (IQCD.QA) 0.3%.
Major stock markets in the Gulf were mixed in early trade on Monday in the absence of fresh factors to trade on, with the Qatari index on track to end three sessions of losses.
Saudi Arabia's benchmark index (.TASI) rose 0.1%, helped by a 0.9% gain in Saudi Telecom Company (7010.SE) and a 0.2% increase in Al Rajhi Bank (1120.SE).
Direct foreign investment into Saudi Arabia rose by about 13% in the first quarter of this year, Saudi Investment Minister Khalid al-Falih said in an interview with Al Arabiya television. read more
Oil prices, a key catalyst for the Gulf's financial markets, retreated as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent crude rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida. The Saudi energy index (.TENI) however traded flat.
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.7% fall in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi Securities Exchange said on Saturday it would halve its trading commissions to 0.025% from 0.05% from Sept. 1, its second commission cut this year and the third in three years. read more
Dubai's main share index (.DFMGI) fell 0.2%, weighed down by a 0.7% drop in Emirates NBD Bank (ENBD.DU) and a 0.5% decrease in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI) added 0.2%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) gaining 0.5% and petrochemical maker Industries Qatar (IQCD.QA) 0.3%.
All eyes have been on oil but gas is back so who will bet on it?
All eyes have been on oil but gas is back so who will bet on it?
From the onset of the Covid-19 pandemic, the energy sector's attention has been focused on oil market turbulence and emerging green energy technology.
Another key energy source has endured a dull decade. But as it sets price records and is tangled up in geopolitics, gas is back.
US gas prices have been low for more than a decade. They crashed during the financial crisis of 2008 and, since then, the torrent of shale gas has kept them almost always below $3 per million British thermal units (Btu), the equivalent of $17 for a barrel of oil. Numerous companies began projects to export liquefied natural gas to the rest of the world to ease the surplus.
Prices elsewhere have been higher but generally restrained. Asian LNG prices, by convention mostly determined by reference to oil, dropped along with crude in late 2014 and generally hovered between $5 and $10 per million Btu.
There was a crisis over Russian supplies to Europe via Ukraine after Moscow’s annexation of Crimea in 2014, but this did not cause real shortages, unlike the cut-off of 2009.
China announced a policy to reduce pollution by switching from coal to gas, especially for home heating, and its imports of LNG and gas by pipeline from Central Asia and Russia increased.
Overall, a world which had worried about running out of gas in the early 2000s, as with oil, became accustomed to abundant, inexpensive gas as a fact of nature. The main debate has not been over price or availability but what place gas should have in the necessary transition to low-carbon energy.
From the onset of the Covid-19 pandemic, the energy sector's attention has been focused on oil market turbulence and emerging green energy technology.
Another key energy source has endured a dull decade. But as it sets price records and is tangled up in geopolitics, gas is back.
US gas prices have been low for more than a decade. They crashed during the financial crisis of 2008 and, since then, the torrent of shale gas has kept them almost always below $3 per million British thermal units (Btu), the equivalent of $17 for a barrel of oil. Numerous companies began projects to export liquefied natural gas to the rest of the world to ease the surplus.
Prices elsewhere have been higher but generally restrained. Asian LNG prices, by convention mostly determined by reference to oil, dropped along with crude in late 2014 and generally hovered between $5 and $10 per million Btu.
There was a crisis over Russian supplies to Europe via Ukraine after Moscow’s annexation of Crimea in 2014, but this did not cause real shortages, unlike the cut-off of 2009.
China announced a policy to reduce pollution by switching from coal to gas, especially for home heating, and its imports of LNG and gas by pipeline from Central Asia and Russia increased.
Overall, a world which had worried about running out of gas in the early 2000s, as with oil, became accustomed to abundant, inexpensive gas as a fact of nature. The main debate has not been over price or availability but what place gas should have in the necessary transition to low-carbon energy.
Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO - Bloomberg
Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO - Bloomberg
Emirates Global Aluminium PJSC, the Middle East’s biggest producer of the metal, posted a record profit in the first half of the year as prices soared along with those of other commodities.
The company, whose United Arab Emirates-based shareholders are considering an initial public offering, generated income of 1.74 billion dirhams ($473 million), after a loss of $57 million a year earlier. Core earnings were $950 million.
Aluminum -- a light, easily-recyclable metal used in everything from beer cans to plane parts and which may be used more often in electric vehicles -- has climbed as major economies recover from the Coronavirus pandemic. Futures in London are up almost 35% to $2,650 a ton, the highest in around a decade.
“We are bullish about prices,” EGA’s chief financial officer, Zouhir Regragui, said in an interview. The short-term outlook is positive because of the post-Covid economic bounce, while in the long run aluminum will benefit as producers manage to cut their greenhouse gas emissions, he said.
Emirates Global Aluminium PJSC, the Middle East’s biggest producer of the metal, posted a record profit in the first half of the year as prices soared along with those of other commodities.
The company, whose United Arab Emirates-based shareholders are considering an initial public offering, generated income of 1.74 billion dirhams ($473 million), after a loss of $57 million a year earlier. Core earnings were $950 million.
Aluminum -- a light, easily-recyclable metal used in everything from beer cans to plane parts and which may be used more often in electric vehicles -- has climbed as major economies recover from the Coronavirus pandemic. Futures in London are up almost 35% to $2,650 a ton, the highest in around a decade.
“We are bullish about prices,” EGA’s chief financial officer, Zouhir Regragui, said in an interview. The short-term outlook is positive because of the post-Covid economic bounce, while in the long run aluminum will benefit as producers manage to cut their greenhouse gas emissions, he said.
Outlook: #UAE stock markets to remain positive, barring virus resurgence | ZAWYA MENA Edition
Outlook: UAE stock markets to remain positive, barring virus resurgence | ZAWYA MENA Edition
Stock markets in the UAE will continue to perform well, provided there is no resurgence of coronavirus cases, Abu Dhabi-based asset management firm Chimera Capital said in a bourse filing to the Dubai Financial Market (DFM) on Monday.
Chimera had reported “growing interest” from investors looking to capitalize on the UAE economy’s strong prospects, with its S&P UAE Exchange Traded Fund (ETF) surpassing 100 million dirhams ($27.2 million) in assets under management in July 2021, barely a year since its launch.
Its UAE UCITS ETF, rolled out only in February this year, also recorded 61.8 million dirhams in AUM as of June 2021.
The Dubai Financial Market and Abu Dhabi Securities Exchange (ADX) have had positive performance in 2021, buoyed by the rise in sentiments and improving economy.
So far this year, the ADX rose 35.5 percent, while the DFM was up 12.8 percent. Trading on the ADX averaged 1.2 billion dirhams, exceeding the DFM’s 227 million dirhams.
Stock markets in the UAE will continue to perform well, provided there is no resurgence of coronavirus cases, Abu Dhabi-based asset management firm Chimera Capital said in a bourse filing to the Dubai Financial Market (DFM) on Monday.
Chimera had reported “growing interest” from investors looking to capitalize on the UAE economy’s strong prospects, with its S&P UAE Exchange Traded Fund (ETF) surpassing 100 million dirhams ($27.2 million) in assets under management in July 2021, barely a year since its launch.
Its UAE UCITS ETF, rolled out only in February this year, also recorded 61.8 million dirhams in AUM as of June 2021.
The Dubai Financial Market and Abu Dhabi Securities Exchange (ADX) have had positive performance in 2021, buoyed by the rise in sentiments and improving economy.
So far this year, the ADX rose 35.5 percent, while the DFM was up 12.8 percent. Trading on the ADX averaged 1.2 billion dirhams, exceeding the DFM’s 227 million dirhams.
Oil drops after Hurricane Ida hits U.S. Gulf rigs, refineries | Reuters
Oil drops after Hurricane Ida hits U.S. Gulf rigs, refineries | Reuters
Oil prices reversed gains on Monday, pulling back from more than three-week highs reached earlier in the session, as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent was down 16 cents or 0.2% at $72.54 a barrel by 0654 GMT. It rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida.
U.S. oil was down by 49 cents or 0.7% at $68.25 a barrel, having jumped a little over 10% over last week.
The benchmarks hit highs not seen since early August, $73.69 and $69.64, respectively, earlier in the session, as Ida crossed the coast near Port Fourchon, Louisiana, a hub of the Gulf's offshore energy industry. read more
Oil prices reversed gains on Monday, pulling back from more than three-week highs reached earlier in the session, as a powerful hurricane slammed into the U.S. Gulf coast, forcing shutdowns and evacuations of hundreds of offshore oil platforms.
Brent was down 16 cents or 0.2% at $72.54 a barrel by 0654 GMT. It rose more than 11% last week in anticipation of disruptions to oil production from Hurricane Ida.
U.S. oil was down by 49 cents or 0.7% at $68.25 a barrel, having jumped a little over 10% over last week.
The benchmarks hit highs not seen since early August, $73.69 and $69.64, respectively, earlier in the session, as Ida crossed the coast near Port Fourchon, Louisiana, a hub of the Gulf's offshore energy industry. read more