Oil settles down 1% as U.S. refineries shut; Washington pushes OPEC to pump more | Reuters
Oil settled down 1% on Tuesday, posting its first monthly loss since March, as demand is expected to drop after Hurricane Ida shuttered U.S. Gulf refineries.
Brent crude futures for October, due to expire on Tuesday, settled down 42 cents, or 0.6%, at $72.99 a barrel.
U.S. West Texas Intermediate (WTI) crude futures settled down 71 cents, or 1%, at $68.50.
Both benchmarks posted their first monthly losses since March, even though they are not far from July highs. Brent lost 4% in July while U.S. crude fell 7%.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. read more
Tuesday, 31 August 2021
OPEC+ sees tighter oil market until May 2022 | Reuters
OPEC+ sees tighter oil market until May 2022 | Reuters
OPEC+ expects the oil market to be in deficit at least until the end of 2021 and stocks to stay relatively low until May 2022, OPEC+ sources said on Tuesday, a day ahead of a policy meeting amid U.S. pressure to raise production.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, meet on Wednesday at 1500 GMT to set policy.
Sources told Reuters the meeting is likely to roll over existing policies despite pressure from the United States to pump more oil. read more
Still, the forecast for a tighter market strengthens the case for a speedier output increases by OPEC+ as benchmark Brent oil prices trade close to $73 per barrel - not far off their multi-year highs.
OPEC+ expects the oil market to be in deficit at least until the end of 2021 and stocks to stay relatively low until May 2022, OPEC+ sources said on Tuesday, a day ahead of a policy meeting amid U.S. pressure to raise production.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, meet on Wednesday at 1500 GMT to set policy.
Sources told Reuters the meeting is likely to roll over existing policies despite pressure from the United States to pump more oil. read more
Still, the forecast for a tighter market strengthens the case for a speedier output increases by OPEC+ as benchmark Brent oil prices trade close to $73 per barrel - not far off their multi-year highs.
#Dubai's Emaar considers sale of e-commerce business Namshi -sources | Reuters
Dubai's Emaar considers sale of e-commerce business Namshi -sources | Reuters
Dubai's Emaar (EMAR.DU) is weighing options to sell fashion e-commerce business Namshi that may include a listing abroad via a SPAC, three sources familiar with the matter said.
An outright sale of Namshi may generate $600 million to $700 million in proceeds, while a listing through a special purpose acquisition company (SPAC) could be more lucrative, said one of the sources.
Emaar, which declined to comment, has approached some banks for potential advice on the deal, the sources said.
Emaar Malls, the retail arm of Dubai's biggest developer, Emaar Properties, bought a 51% stake in Namshi from Global Fashion Group (GFG.DE) for $151 million in 2017 shortly after Amazon.com (AMZN.O) bought Dubai-based e-commerce website Souq.com.
It bought the remaining 49% in 2019 for about $130 million.
Namshi posted revenues of 685 million dirhams ($187 million) in the first half of the year, up from 664 million dirhams in the same period one year earlier.
A SPAC - a popular dealmaking vehicle - raises money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on share markets than via a traditional initial public offering.
SPACs are not permitted on UAE bourses, encouraging companies to seek out alternative venues. read more
Abu Dhabi-based music streaming app Anghami, the Middle East's rival to Spotify (SPOT.N), said in March it would become the first Arab tech company to list on the Nasdaq after agreeing to merge with a SPAC.
Dubai's Emaar (EMAR.DU) is weighing options to sell fashion e-commerce business Namshi that may include a listing abroad via a SPAC, three sources familiar with the matter said.
An outright sale of Namshi may generate $600 million to $700 million in proceeds, while a listing through a special purpose acquisition company (SPAC) could be more lucrative, said one of the sources.
Emaar, which declined to comment, has approached some banks for potential advice on the deal, the sources said.
Emaar Malls, the retail arm of Dubai's biggest developer, Emaar Properties, bought a 51% stake in Namshi from Global Fashion Group (GFG.DE) for $151 million in 2017 shortly after Amazon.com (AMZN.O) bought Dubai-based e-commerce website Souq.com.
It bought the remaining 49% in 2019 for about $130 million.
Namshi posted revenues of 685 million dirhams ($187 million) in the first half of the year, up from 664 million dirhams in the same period one year earlier.
A SPAC - a popular dealmaking vehicle - raises money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on share markets than via a traditional initial public offering.
SPACs are not permitted on UAE bourses, encouraging companies to seek out alternative venues. read more
Abu Dhabi-based music streaming app Anghami, the Middle East's rival to Spotify (SPOT.N), said in March it would become the first Arab tech company to list on the Nasdaq after agreeing to merge with a SPAC.
#UAE top banks' profits set to improve as provisioning eases -Moody's | Reuters
UAE top banks' profits set to improve as provisioning eases -Moody's | Reuters
The United Arab Emirates' top banks are likely to see profits increase over the next 12 to 18 months as they book lower loan-loss provisions while the economy recovers from the coronavirus shock, ratings agency Moody's said on Tuesday.
In the first half of the year, the UAE's largest four banks - First Abu Dhabi Bank (FAB.AD), Emirates NBD (ENBD.DU), Abu Dhabi Commercial Bank (ADCB.AD) and Dubai Islamic Bank (DISB.DU) - posted a combined net profit of $4 billion, up 17% over the same period last year.
That was partly because lenders set aside lower provisions for potential loan losses - provisioning declined by 38% year on year in the first half.
But Moody's cautioned that this could change when a stimulus measure introduced by the UAE central bank ends.
"Provisioning could potentially pick up once again when the central bank's loan repayment deferral program TESS ends, potentially resulting in a rise in problematic loans as distressed customers face repayment pressures due to the pandemic," said the agency.
Financing provided by the UAE central bank for loan deferrals under the Targeted Economic Support Scheme (TESS) - which was introduced last year to mitigate the impact of the pandemic on the economy - has been extended until the end of this year. read more
Profits at the UAE's four largest banks are expected to go back to pre-pandemic levels in 2022 or 2023, Moody's said.
The United Arab Emirates' top banks are likely to see profits increase over the next 12 to 18 months as they book lower loan-loss provisions while the economy recovers from the coronavirus shock, ratings agency Moody's said on Tuesday.
In the first half of the year, the UAE's largest four banks - First Abu Dhabi Bank (FAB.AD), Emirates NBD (ENBD.DU), Abu Dhabi Commercial Bank (ADCB.AD) and Dubai Islamic Bank (DISB.DU) - posted a combined net profit of $4 billion, up 17% over the same period last year.
That was partly because lenders set aside lower provisions for potential loan losses - provisioning declined by 38% year on year in the first half.
But Moody's cautioned that this could change when a stimulus measure introduced by the UAE central bank ends.
"Provisioning could potentially pick up once again when the central bank's loan repayment deferral program TESS ends, potentially resulting in a rise in problematic loans as distressed customers face repayment pressures due to the pandemic," said the agency.
Financing provided by the UAE central bank for loan deferrals under the Targeted Economic Support Scheme (TESS) - which was introduced last year to mitigate the impact of the pandemic on the economy - has been extended until the end of this year. read more
Profits at the UAE's four largest banks are expected to go back to pre-pandemic levels in 2022 or 2023, Moody's said.
Oil Heads for Biggest Monthly Loss This Year Before OPEC+ Meets - Bloomberg
Oil Heads for Biggest Monthly Loss This Year Before OPEC+ Meets - Bloomberg
Oil in New York is headed for the biggest monthly loss since October as investors weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.
West Texas Intermediate fell as much as 1.5% in New York and has declined about 7% this month. Gulf of Mexico crude producers are expected to resume service gradually after Ida crashed ashore in Louisiana over the weekend. Refineries are expected to return to operations more slowly.
There’s optimism that the industry will bounce back sooner than later, which is causing crude prices to weaken, said Robert Yawger, director of the futures division at Mizuho Securities.
“I’m looking for oil production coming back in a week and refineries coming back in two weeks,” he said.
Oil in New York is headed for the biggest monthly loss since October as investors weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.
West Texas Intermediate fell as much as 1.5% in New York and has declined about 7% this month. Gulf of Mexico crude producers are expected to resume service gradually after Ida crashed ashore in Louisiana over the weekend. Refineries are expected to return to operations more slowly.
There’s optimism that the industry will bounce back sooner than later, which is causing crude prices to weaken, said Robert Yawger, director of the futures division at Mizuho Securities.
“I’m looking for oil production coming back in a week and refineries coming back in two weeks,” he said.
Eat Just to Build Cultured-Meat Plant in #Qatar Amid Global Push - Bloomberg
Eat Just to Build Cultured-Meat Plant in Qatar Amid Global Push - Bloomberg
Eat Just Inc., a San Francisco-based startup making cultured chicken and vegan eggs, plans to build a commercial facility in Qatar to produce cell-based meat as it looks to expand into new markets overseas.
The company is partnering with state-backed Doha Venture Capital and the Qatar Free Zones Authority to build the large-scale plant, which could take two years to complete, according to Eat Just Chief Executive Officer Josh Tetrick. The effort could cost more than $200 million, with a “relevant chunk” of that coming from an investment by the venture firm, Tetrick said without disclosing the exact amount.
The new facility will be significantly larger than the one Eat Just uses to produce in Singapore, which recently became the first country to approve the sale of cell-based chicken. Cultured meat, which is grown from cells instead of slaughtering live animals, could become a $25 billion industry by 2030, according to a recent report from McKinsey & Co.
“We want to build facilities that are making a lot of meat,” Tetrick said in an interview. Plans are in place to eventually add capacity to also produce the company’s Just Egg product, made from mung beans.
The company chose Qatar in part because of its openness to cultured meat and desire to find innovative, long-term solutions to food security, he said. It also gives Eat Just a foothold in the Middle East and North Africa region, potentially allowing for future exports to areas such as western Europe.
The Qatar Free Zones Authority, which oversees and advocates for the country’s economic free zones, and the Ministry of Public Health intend to grant regulatory approval “very soon” for the cell-based chicken sold by the company’s Good Meat subsidiary, Tetrick said. That would make it just the second country to give a green light. Additionally, Eat Just has already been granted an export license, supporting the company’s future growth plans.
“Right from the beginning, we are looking at what the export plan is,” said Lim Meng Hui, CEO of the free zones authority.
Eat Just Inc., a San Francisco-based startup making cultured chicken and vegan eggs, plans to build a commercial facility in Qatar to produce cell-based meat as it looks to expand into new markets overseas.
The company is partnering with state-backed Doha Venture Capital and the Qatar Free Zones Authority to build the large-scale plant, which could take two years to complete, according to Eat Just Chief Executive Officer Josh Tetrick. The effort could cost more than $200 million, with a “relevant chunk” of that coming from an investment by the venture firm, Tetrick said without disclosing the exact amount.
The new facility will be significantly larger than the one Eat Just uses to produce in Singapore, which recently became the first country to approve the sale of cell-based chicken. Cultured meat, which is grown from cells instead of slaughtering live animals, could become a $25 billion industry by 2030, according to a recent report from McKinsey & Co.
“We want to build facilities that are making a lot of meat,” Tetrick said in an interview. Plans are in place to eventually add capacity to also produce the company’s Just Egg product, made from mung beans.
The company chose Qatar in part because of its openness to cultured meat and desire to find innovative, long-term solutions to food security, he said. It also gives Eat Just a foothold in the Middle East and North Africa region, potentially allowing for future exports to areas such as western Europe.
The Qatar Free Zones Authority, which oversees and advocates for the country’s economic free zones, and the Ministry of Public Health intend to grant regulatory approval “very soon” for the cell-based chicken sold by the company’s Good Meat subsidiary, Tetrick said. That would make it just the second country to give a green light. Additionally, Eat Just has already been granted an export license, supporting the company’s future growth plans.
“Right from the beginning, we are looking at what the export plan is,” said Lim Meng Hui, CEO of the free zones authority.
Head of Libya Oil Firm Rebuffs Minister’s Attempt to Suspend Him - Bloomberg
Head of Libya Oil Firm Rebuffs Minister’s Attempt to Suspend Him - Bloomberg
The head of Libya’s state energy company rejected an attempt by the OPEC nation’s oil minister to have him suspended and the board disbanded.
“The minister of oil cannot legally suspend me from work or refer me to investigation,” Mustafa Sanalla, the long-standing chairman of Libya’s National Oil Corp., said during an interview in his office in Tripoli on Monday. “The cabinet is the decision-maker and has the final word on the NOC.”
The interview came days after Oil Minister Mohamed Oun said Sanalla should step aside for an alleged “violation” of rules regarding business travel. While Sanalla said the dispute would not affect Libya’s crude production, it underscores the political tensions in a country that’s been mired in conflict and civil war for much of the past decade.
“The minister of oil or anyone else cannot question the legitimacy of the NOC’s board of directors,” said Sanalla, who’s been chairman since 2014. “I have no problem if a decision is issued to change the board of directors of the NOC through the cabinet.”
The head of Libya’s state energy company rejected an attempt by the OPEC nation’s oil minister to have him suspended and the board disbanded.
“The minister of oil cannot legally suspend me from work or refer me to investigation,” Mustafa Sanalla, the long-standing chairman of Libya’s National Oil Corp., said during an interview in his office in Tripoli on Monday. “The cabinet is the decision-maker and has the final word on the NOC.”
The interview came days after Oil Minister Mohamed Oun said Sanalla should step aside for an alleged “violation” of rules regarding business travel. While Sanalla said the dispute would not affect Libya’s crude production, it underscores the political tensions in a country that’s been mired in conflict and civil war for much of the past decade.
“The minister of oil or anyone else cannot question the legitimacy of the NOC’s board of directors,” said Sanalla, who’s been chairman since 2014. “I have no problem if a decision is issued to change the board of directors of the NOC through the cabinet.”
#SaudiArabia PIF-Backed ACWA Power to Seek More than $1 Billion in IPO - Bloomberg
Saudi Arabia PIF-Backed ACWA Power to Seek More than $1 Billion in IPO - Bloomberg
Saudi Arabia’s ACWA Power International is close to announcing an initial public offering to raise more than $1 billion, according to people familiar with the matter.
A Riyadh listing may value the utility at $10 billion or more, said the people, who asked not to be named. An announcement may be made as soon as this week, they said.
ACWA Power declined to comment.
While ACWA runs many natural gas-fired power plants, the Saudi government plans to make it the main vehicle for the kingdom’s major solar and green-hydrogen projects.
Saudi Arabia’s ACWA Power International is close to announcing an initial public offering to raise more than $1 billion, according to people familiar with the matter.
A Riyadh listing may value the utility at $10 billion or more, said the people, who asked not to be named. An announcement may be made as soon as this week, they said.
ACWA Power declined to comment.
While ACWA runs many natural gas-fired power plants, the Saudi government plans to make it the main vehicle for the kingdom’s major solar and green-hydrogen projects.
MIDEAST STOCKS #Saudi market shrugs off China data as most Gulf bourses retreat | Reuters
MIDEAST STOCKS Saudi market shrugs off China data as most Gulf bourses retreat | Reuters
Saudi Arabia's stock market outperformed its regional peers on Tuesday, while most other Gulf bourses remained pressured on worries about China's slowing economic growth.
GCC bourses were under the weight of international economic concerns. The Chinese manufacturing index is softer than expected signalling a slowing economy and U.S. consumer confidence in the economy is expected to be a little lower, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, extending gains for the second session, with Saudi Telecom Company (7010.SE) advancing 2.9% and Saudi National Bank (1180.SE) rising 1.3%.
The Saudi market is supported by solid national economic fundamentals and the positive COVID situation. The announced talks between the kingdom and Iran have also benefited the exchange, said Makarem.
"The initiative should help alleviate any future tensions in the region and enhance cooperation."
Iran plans to hold a fourth round of talks with regional rival Saudi Arabia in Iraq after the new Iranian government is set up, the Iranian ambassador in Baghdad was quoted on Tuesday as saying. read more
In Abu Dhabi, the index (.ADI) finished flat, with Abu Dhabi National Hotels (ADNH.AD) declining about 10%.
Abu Dhabi state-owned holding company ADQ has withdrawn an offer to combine Abu Dhabi National Hotels Company (ADNH) with Abu Dhabi National Exhibitions Company (ADNEC), ADNH said in a bourse filing. read more
ADQ said in June it had submitted an offer to ADNH to combine it with ADNEC, the exhibitions company, to "create one of the largest hospitality, events and catering powerhouses in the region" with assets of around 20 billion dirhams ($5.45 billion).
However, the index's losses were capped by gains at Agthia Group (AGTHIA.AD), which jumped 8.9%.
The board had called a meeting on Tuesday to discuss a potential acquisition.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.7% gain in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.1%, pressured by a 1.8% decline in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX) fell 0.2%, with top lender Commercial International Bank (COMI.CA) losing 2.1%.
Saudi Arabia's stock market outperformed its regional peers on Tuesday, while most other Gulf bourses remained pressured on worries about China's slowing economic growth.
GCC bourses were under the weight of international economic concerns. The Chinese manufacturing index is softer than expected signalling a slowing economy and U.S. consumer confidence in the economy is expected to be a little lower, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, extending gains for the second session, with Saudi Telecom Company (7010.SE) advancing 2.9% and Saudi National Bank (1180.SE) rising 1.3%.
The Saudi market is supported by solid national economic fundamentals and the positive COVID situation. The announced talks between the kingdom and Iran have also benefited the exchange, said Makarem.
"The initiative should help alleviate any future tensions in the region and enhance cooperation."
Iran plans to hold a fourth round of talks with regional rival Saudi Arabia in Iraq after the new Iranian government is set up, the Iranian ambassador in Baghdad was quoted on Tuesday as saying. read more
In Abu Dhabi, the index (.ADI) finished flat, with Abu Dhabi National Hotels (ADNH.AD) declining about 10%.
Abu Dhabi state-owned holding company ADQ has withdrawn an offer to combine Abu Dhabi National Hotels Company (ADNH) with Abu Dhabi National Exhibitions Company (ADNEC), ADNH said in a bourse filing. read more
ADQ said in June it had submitted an offer to ADNH to combine it with ADNEC, the exhibitions company, to "create one of the largest hospitality, events and catering powerhouses in the region" with assets of around 20 billion dirhams ($5.45 billion).
However, the index's losses were capped by gains at Agthia Group (AGTHIA.AD), which jumped 8.9%.
The board had called a meeting on Tuesday to discuss a potential acquisition.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.7% gain in blue-chip developer Emaar Properties (EMAR.DU).
The Qatari benchmark (.QSI) lost 0.1%, pressured by a 1.8% decline in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX) fell 0.2%, with top lender Commercial International Bank (COMI.CA) losing 2.1%.
Oil falls as U.S. refineries shut; Washington pushes OPEC to pump more | Reuters
Oil falls as U.S. refineries shut; Washington pushes OPEC to pump more | Reuters
Oil fell on Tuesday on expectations for demand to fall after Hurricane Ida shuttered refinerson the U.S. Gulf Coast, and as producing nations in OPEC+ geared up to meet on Wednesday with the United States callingfor suppliers to pump more crude.
Brent crude futures for October, due to expire on Tuesday, fell 39 cents, or 0.5%, to $73.02 a barrel by 11:08 a.m. EDT (1508 GMT).
U.S. West Texas Intermediate (WTI) crude futures were down 43 cents, or 0.6%, at $68.78.
Both benchmarks were on track for their first monthly loss since March but were still not far from their July highs, when Brent rose to its strongest since 2018 and U.S. crude since 2014.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. read more
Oil fell on Tuesday on expectations for demand to fall after Hurricane Ida shuttered refinerson the U.S. Gulf Coast, and as producing nations in OPEC+ geared up to meet on Wednesday with the United States callingfor suppliers to pump more crude.
Brent crude futures for October, due to expire on Tuesday, fell 39 cents, or 0.5%, to $73.02 a barrel by 11:08 a.m. EDT (1508 GMT).
U.S. West Texas Intermediate (WTI) crude futures were down 43 cents, or 0.6%, at $68.78.
Both benchmarks were on track for their first monthly loss since March but were still not far from their July highs, when Brent rose to its strongest since 2018 and U.S. crude since 2014.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. read more