Oil rises on economic recovery hopes, weaker dollar | Reuters
Oil prices rose more than $1 a barrel on Thursday, rebounding on optimism about global economic growth despite the coronavirus pandemic, and after U.S. crude inventories fell more than anticipated.
Brent crude ended up $1.44, or 2%, at $73.03 a barrel. West Texas Intermediate (WTI) crude settled up $1.40, or 2%, to $69.99 a barrel.
The rally briefly pushed U.S. crude futures above the 50-day moving average for the first time in a month, a signal of bullishness for investors. In addition, later-dated crude contracts rallied more than the front-month, another sign that market participants expect demand to rise as supply declines.
In the United States, crude inventories dropped by 7.2 million barrels last week, the Energy Information Administration said on Wednesday.
Thursday 2 September 2021
Investors and expats return to #Dubai’s housing market | Financial Times
Investors and expats return to Dubai’s housing market | Financial Times
Returning to Dubai in July, Calvin Lee Campbell, who works in events, found an industry — and a city — getting back on its feet. “Live events are happening again,” he says. “Our company is hiring, our team is growing, and there are loads of opportunities to pitch for work.”
It is a far cry from last June, when he lost his job and had to return, in September, to his native South Africa. “Our whole pipeline got cancelled,” he says. “All RFPs [request for proposals] were cancelled or postponed: most of the events fell away completely.”
The pandemic hit the economy hard in Dubai. Tourism accounts for about 11.5 per cent of Dubai’s GDP, compared with a Middle East average of 8.9 per cent, according to the World Travel and Tourism Council.
Overnight visitors to Dubai fell from 16.7m in 2019 to 5.5m in 2020, according to government figures. Widespread lay-offs saw a number of expats, who comprise 92 per cent of Dubai’s population, according to Standard & Poor’s, and on whose labour the country relies, return home. S&P estimates that Dubai’s population fell 8.4 per cent last year. (According to government data, the population grew by 1.6 per cent. The Dubai government did not respond to requests for comment by FT.)
Oil Prices Should Be Higher Into Year End: Energy Aspects's Sen - Bloomberg video
Oil Prices Should Be Higher Into Year End: Energy Aspects's Sen - Bloomberg
Amrita Sen, head of research at Energy Aspects, discusses the decision by OPEC+ to hike supply by 400,000 barrels-a-day, oil market fundamentals and adding Iran production into the supply. She speaks on “Bloomberg Daybreak: Europe.” (Source: Bloomberg)
Emaar's property sales could hit $5.8bn in 2021
Emaar's property sales could hit $5.8bn in 2021
Property sales at Emaar Development, the company behind the world's tallest tower Burj Khalifa and Downtown Dubai district, could hit Dh21.5 billion ($5.85bn), as activity picks up in the UAE’s real estate market amid a broader economic recovery, a note from EFG Hermes said.
The development arm of Dubai's biggest listed developer Emaar Properties is poised to record the highest amount of sales in 10 years, the report added.
“ED’s business model has proven resilient amidst the challenges posed since the 2009 real estate crash in the emirate,” the report said.
The company “managed to adapt to all such challenges with its strong balance sheet, backing of its parent company [Emaar Properties], market positioning and unique product mix,” it said.
Property sales at Emaar Development, the company behind the world's tallest tower Burj Khalifa and Downtown Dubai district, could hit Dh21.5 billion ($5.85bn), as activity picks up in the UAE’s real estate market amid a broader economic recovery, a note from EFG Hermes said.
The development arm of Dubai's biggest listed developer Emaar Properties is poised to record the highest amount of sales in 10 years, the report added.
“ED’s business model has proven resilient amidst the challenges posed since the 2009 real estate crash in the emirate,” the report said.
The company “managed to adapt to all such challenges with its strong balance sheet, backing of its parent company [Emaar Properties], market positioning and unique product mix,” it said.
Trading arm of #UAE's ADNOC secures $1.2 billion credit facility | Reuters
Trading arm of UAE's ADNOC secures $1.2 billion credit facility | Reuters
Abu Dhabi National Oil Company (ADNOC) said on Thursday its trading arm has closed a $1.2 billion credit facility with a group of seven local and international banks.
The loan will be used to finance ADNOC Global Trading's trade flows and growth, ADNOC said in a post on LinkedIn.
The banks involved in the deal are Standard Chartered (STAN.L), HSBC (HSBA.L), Abu Dhabi Commercial Bank (ADCB.AD), Deutsche Bank (DBKGn.DE), Societe Generale (SOGN.PA), SMBC (8316.T) and UniCredit Bank (CRDI.MI), ADNOC said.
"The oversubscription of the latest credit facility demonstrates the trust in AGT and its strong shareholding structure," the state-owned oil company said, without disclosing by how much the deal was oversubscribed.
Martijn Rutters, chief financial officer at ADNOC Global Trading, said on LinkedIn the deal was oversubscribed two times as a result of strong interest from banks.
ADNOC Global Trading is a joint venture between ADNOC, which holds 65%, Italy's Eni (ENI.MI) with a 20% share and Austria's OMV (OMVV.VI) with a 15% stake.
It went live in 2020 to trade refined products and supply feedstocks. It is "active in the products and paper markets for third party barrels as well as derivatives," according to ADNOC's website.
"As we continue to expand our operations into new markets, opening new offices in Asia, Europe, and the US, we have the right systems, people, and credit facilities in place to deliver an ambitious business plan," Rutters said.
Abu Dhabi National Oil Company (ADNOC) said on Thursday its trading arm has closed a $1.2 billion credit facility with a group of seven local and international banks.
The loan will be used to finance ADNOC Global Trading's trade flows and growth, ADNOC said in a post on LinkedIn.
The banks involved in the deal are Standard Chartered (STAN.L), HSBC (HSBA.L), Abu Dhabi Commercial Bank (ADCB.AD), Deutsche Bank (DBKGn.DE), Societe Generale (SOGN.PA), SMBC (8316.T) and UniCredit Bank (CRDI.MI), ADNOC said.
"The oversubscription of the latest credit facility demonstrates the trust in AGT and its strong shareholding structure," the state-owned oil company said, without disclosing by how much the deal was oversubscribed.
Martijn Rutters, chief financial officer at ADNOC Global Trading, said on LinkedIn the deal was oversubscribed two times as a result of strong interest from banks.
ADNOC Global Trading is a joint venture between ADNOC, which holds 65%, Italy's Eni (ENI.MI) with a 20% share and Austria's OMV (OMVV.VI) with a 15% stake.
It went live in 2020 to trade refined products and supply feedstocks. It is "active in the products and paper markets for third party barrels as well as derivatives," according to ADNOC's website.
"As we continue to expand our operations into new markets, opening new offices in Asia, Europe, and the US, we have the right systems, people, and credit facilities in place to deliver an ambitious business plan," Rutters said.
#AbuDhabi’s Taqa Looks to Sell U.K., Dutch Oil and Gas Assets - Bloomberg
Abu Dhabi’s Taqa Looks to Sell U.K., Dutch Oil and Gas Assets - Bloomberg
Abu Dhabi National Energy Co. has begun a process to sell its oil and gas assets in the Netherlands and the U.K, according to documents seen by Bloomberg.
The company, also known as Taqa, wants to divest itself of at least 17 fields plus stakes in the Sullom Voe shipping terminal, and the Brent and SAGE pipelines in the U.K. In a separate sales process, it is offering 32 Dutch oil and gas licenses, of which five are directly operated by the company.
Taqa’s oil and gas business was hit hard by the coronavirus pandemic, with earnings in 2020 dropping some 30%. On Wednesday, the company said it was carrying out a strategic review of its oil and gas operations, which include onshore and offshore exploration and production stretching from the U.K. to Iraq’s Kurdistan. Bloomberg first reported in March that it was considering selling assets.
A spokesperson for Taqa declined to comment and referred back to Wednesday’s statement.
Taqa’s U.K. portfolio includes oil and gas fields such as Cormorant, Harding and the Brae cluster, which it expects to yield average net produciton this year of 33,000 barrels of oil equivalent a day. The sales documents also note the potential to develop an additional 33 million barrels of oil equivalent of natural gas from the Quad 9 project. Its smaller Dutch portfolio nets around 3,000 barrels of oil equivalent a day.
Prospective buyers will be invited to virtual data rooms, with bids for both sets of assets due in December, according to the documents. The firm, which has a monopoly on power and water distribution in Abu Dhabi, acquired North Sea assets from BP Plc for $1.1 billion in 2012.
Abu Dhabi National Energy Co. has begun a process to sell its oil and gas assets in the Netherlands and the U.K, according to documents seen by Bloomberg.
The company, also known as Taqa, wants to divest itself of at least 17 fields plus stakes in the Sullom Voe shipping terminal, and the Brent and SAGE pipelines in the U.K. In a separate sales process, it is offering 32 Dutch oil and gas licenses, of which five are directly operated by the company.
Taqa’s oil and gas business was hit hard by the coronavirus pandemic, with earnings in 2020 dropping some 30%. On Wednesday, the company said it was carrying out a strategic review of its oil and gas operations, which include onshore and offshore exploration and production stretching from the U.K. to Iraq’s Kurdistan. Bloomberg first reported in March that it was considering selling assets.
A spokesperson for Taqa declined to comment and referred back to Wednesday’s statement.
Taqa’s U.K. portfolio includes oil and gas fields such as Cormorant, Harding and the Brae cluster, which it expects to yield average net produciton this year of 33,000 barrels of oil equivalent a day. The sales documents also note the potential to develop an additional 33 million barrels of oil equivalent of natural gas from the Quad 9 project. Its smaller Dutch portfolio nets around 3,000 barrels of oil equivalent a day.
Prospective buyers will be invited to virtual data rooms, with bids for both sets of assets due in December, according to the documents. The firm, which has a monopoly on power and water distribution in Abu Dhabi, acquired North Sea assets from BP Plc for $1.1 billion in 2012.
Emaar The Economic City debt conversion gives #Saudi PIF 25% stake | Reuters
Emaar The Economic City debt conversion gives Saudi PIF 25% stake | Reuters
Saudi Arabia's sovereign wealth fund PIF will hold a 25% stake in Emaar The Economic City (EEC) (4220.SE) after the company issues 283.3 million new ordinary shares to PIF in lieu of the fund repaying the Saudi finance ministry a loan for EEC, EEC said on Thursday.
EEC, linked to Dubai property developer Emaar and working on Saudi Arabia's King Abdullah Economic City, will now owe the 2.833 billion riyal ($755.39 million) loan to PIF instead of the finance ministry following the capital increase via debt conversion, the company said in a bourse filing.
The new shares of EEC being issued to PIF will have a nominal value of 10 riyals per share, a nearly 21% discount to the share's closing price of 12.64 riyals on Thursday.
The deal will make PIF EEC's biggest shareholder, according to Refinitiv data, with the current biggest investor holding 16.43%.
Saudi Arabia's sovereign wealth fund PIF will hold a 25% stake in Emaar The Economic City (EEC) (4220.SE) after the company issues 283.3 million new ordinary shares to PIF in lieu of the fund repaying the Saudi finance ministry a loan for EEC, EEC said on Thursday.
EEC, linked to Dubai property developer Emaar and working on Saudi Arabia's King Abdullah Economic City, will now owe the 2.833 billion riyal ($755.39 million) loan to PIF instead of the finance ministry following the capital increase via debt conversion, the company said in a bourse filing.
The new shares of EEC being issued to PIF will have a nominal value of 10 riyals per share, a nearly 21% discount to the share's closing price of 12.64 riyals on Thursday.
The deal will make PIF EEC's biggest shareholder, according to Refinitiv data, with the current biggest investor holding 16.43%.
MIDEAST STOCKS Major Gulf markets end mixed, #AbuDhabi extends weekly gains | Reuters
MIDEAST STOCKS Major Gulf markets end mixed, Abu Dhabi extends weekly gains | Reuters
Major stock markets in the Gulf ended mixed on Thursday, following an OPEC+ agreement to stick to gradual output hikes, with the Abu Dhabi index registering its sixth weekly gain.
OPEC and its allies on Wednesday agreed to stick to their existing policy of gradual oil output increases, despite revising their 2022 demand outlook upwards and ongoing U.S. pressure to raise production more quickly. read more
"Crude markets should see less pressure and softer prices soon, following the production increase approval, which is scheduled for October," said Daniel Takieddine, senior market analyst at FXPrimus.
Saudi Arabia's benchmark index (.TASI) eked out a 0.1% rise, helped by a 2.1% gain in Sahara International Petrochemical Co (2310.SE) and a 0.3% increase in oil giant Saudi Aramco (2222.SE).
Oil prices, a key catalyst for the Gulf's financial shares, rose, supported by a sharp decline in U.S. crude stocks and a weaker dollar.
However, the gains were capped by the OPEC+ decision to stick to its policy of gradually increasing output.
In Abu Dhabi, the index (.ADI) added 0.1%, with First Abu Dhabi Bank (FAB.AD) rising 0.8% and Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) putting on 0.5%.
On Wednesday, troubled hospital operator NMC said its creditors have approved a restructuring process that will give them ownership of 34 NMC group companies and allow those entities to exit administration in Abu Dhabi. read more
ADCB, one of NMC's largest creditors, said it is expected to receive 39% of transferable exit instruments in a new $2.25 billion facility, linked to the expected future value of the new entity.
"The restructuring terms are favourable, in our view, and should help ease its provisioning burden," EFG Hermes said in a research note.
The investment bank trimmed its provisioning forecasts for the lender and raised its target price to 9 dirhams from 8.4 dirhams, while maintaining a 'Buy' rating on the stock.
Dubai's main share index (.DFMGI) eased 0.2%, a day after it closed at its highest in over two years. Emaar Properties (EMAR.DU) retreated 0.7%, giving up some gains from the previous session.
The blue-chip developer is weighing options to sell fashion e-commerce business Namshi that may include a listing abroad via a SPAC. read more
Elsewhere, the Qatari benchmark (.QSI) was down 0.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.2%, with Pioneers Holding (PIOH.CA) leaping over 7%, extending gains from the previous session following a sharp rise in its second-quarter earnings.
Major stock markets in the Gulf ended mixed on Thursday, following an OPEC+ agreement to stick to gradual output hikes, with the Abu Dhabi index registering its sixth weekly gain.
OPEC and its allies on Wednesday agreed to stick to their existing policy of gradual oil output increases, despite revising their 2022 demand outlook upwards and ongoing U.S. pressure to raise production more quickly. read more
"Crude markets should see less pressure and softer prices soon, following the production increase approval, which is scheduled for October," said Daniel Takieddine, senior market analyst at FXPrimus.
Saudi Arabia's benchmark index (.TASI) eked out a 0.1% rise, helped by a 2.1% gain in Sahara International Petrochemical Co (2310.SE) and a 0.3% increase in oil giant Saudi Aramco (2222.SE).
Oil prices, a key catalyst for the Gulf's financial shares, rose, supported by a sharp decline in U.S. crude stocks and a weaker dollar.
However, the gains were capped by the OPEC+ decision to stick to its policy of gradually increasing output.
In Abu Dhabi, the index (.ADI) added 0.1%, with First Abu Dhabi Bank (FAB.AD) rising 0.8% and Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) putting on 0.5%.
On Wednesday, troubled hospital operator NMC said its creditors have approved a restructuring process that will give them ownership of 34 NMC group companies and allow those entities to exit administration in Abu Dhabi. read more
ADCB, one of NMC's largest creditors, said it is expected to receive 39% of transferable exit instruments in a new $2.25 billion facility, linked to the expected future value of the new entity.
"The restructuring terms are favourable, in our view, and should help ease its provisioning burden," EFG Hermes said in a research note.
The investment bank trimmed its provisioning forecasts for the lender and raised its target price to 9 dirhams from 8.4 dirhams, while maintaining a 'Buy' rating on the stock.
Dubai's main share index (.DFMGI) eased 0.2%, a day after it closed at its highest in over two years. Emaar Properties (EMAR.DU) retreated 0.7%, giving up some gains from the previous session.
The blue-chip developer is weighing options to sell fashion e-commerce business Namshi that may include a listing abroad via a SPAC. read more
Elsewhere, the Qatari benchmark (.QSI) was down 0.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.2%, with Pioneers Holding (PIOH.CA) leaping over 7%, extending gains from the previous session following a sharp rise in its second-quarter earnings.
Oil rises on economic recovery hopes, weaker dollar | Reuters
Oil rises on economic recovery hopes, weaker dollar | Reuters
Oil prices rose more than $1 a barrel on Thursday, rebounding on optimism about the pace of global economic growth despite the coronavirus pandemic, as well as on a sharp decline in U.S. crude inventories.
Brent crude was up $1.78, or 2.5%, at $73.37 a barrel by 11:43 a.m. EDT (1543 GMT). West Texas Intermediate (WTI) crude rose $1.92, or 2.8%, to $70.51.
The number of Americans filing new claims for jobless benefits fell last week, while layoffs in August dropped to their lowest level in more than 24 years, suggesting the labor market was charging ahead despite new COVID-19 infections. read more
"Although oil is lagging equities, its downside is clearly limited by the general confidence surrounding the global economy despite consistent fears of the prolonged spread of the coronavirus," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
Oil prices rose more than $1 a barrel on Thursday, rebounding on optimism about the pace of global economic growth despite the coronavirus pandemic, as well as on a sharp decline in U.S. crude inventories.
Brent crude was up $1.78, or 2.5%, at $73.37 a barrel by 11:43 a.m. EDT (1543 GMT). West Texas Intermediate (WTI) crude rose $1.92, or 2.8%, to $70.51.
The number of Americans filing new claims for jobless benefits fell last week, while layoffs in August dropped to their lowest level in more than 24 years, suggesting the labor market was charging ahead despite new COVID-19 infections. read more
"Although oil is lagging equities, its downside is clearly limited by the general confidence surrounding the global economy despite consistent fears of the prolonged spread of the coronavirus," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
Israel's Delek finalises sale of Tamar gas stake to Mubadala | Reuters
Israel's Delek finalises sale of Tamar gas stake to Mubadala | Reuters
Delek Drilling (DEDRp.TA) has finalised a deal to sell its 22% stake in the east Mediterranean Tamar gas field to Abu Dhabi's Mubadala Petroleum for about $1 billion, the Israeli company said on Thursday.
Delek said it is the biggest commercial deal to be signed between Israeli and Emirati groups since Israel and the United Arab Emirates normalised ties last year. A preliminary agreement was reached in April but it required government approval.
The Tamar field is one of Israel's primary energy sources and can produce 11 billion cubic metres of gas a year - enough to cover much of the Israeli market as well as exports to Egypt and Jordan.
Delek Drilling, a unit of conglomerate Delek Group (DLEKG.TA), holds a 22% stake in the field, which is operated by Chevron (CVX.N).
Delek Drilling (DEDRp.TA) has finalised a deal to sell its 22% stake in the east Mediterranean Tamar gas field to Abu Dhabi's Mubadala Petroleum for about $1 billion, the Israeli company said on Thursday.
Delek said it is the biggest commercial deal to be signed between Israeli and Emirati groups since Israel and the United Arab Emirates normalised ties last year. A preliminary agreement was reached in April but it required government approval.
The Tamar field is one of Israel's primary energy sources and can produce 11 billion cubic metres of gas a year - enough to cover much of the Israeli market as well as exports to Egypt and Jordan.
Delek Drilling, a unit of conglomerate Delek Group (DLEKG.TA), holds a 22% stake in the field, which is operated by Chevron (CVX.N).
#Oman budget deficit down sharply year-on-year in July | Reuters
Oman budget deficit down sharply year-on-year in July | Reuters
Oman posted a year-to-date budget deficit of 1.2 billion rials ($3.13 billion) in July, a 22.2% annual decline in its fiscal shortfall, the ministry of finance said, as the country starts reaping the benefits of fiscal consolidation reforms.
Oman's revenues increased marginally by 0.5% in the year to the end of July when compared to the same period in 2020, while oil revenues went up by 3.4% on the back of a rebound in crude prices after the coronavirus-driven slump in 2020.
"As fiscal consolidation continues, the public spending continues to decline," the ministry said in a statement on Thursday. Total spending was down by 4.7% in the year to July, compared to the same period a year earlier.
The oil-producing Gulf state has embarked on a raft of measures in the past year to fix its debt-burdened finances and has asked the International Monetary Fund to provide technical assistance on its debt strategy. read more
The reforms - which included the launch of a value-added tax - have helped Oman raise billions of dollars in bonds and loans this year despite a yawning 2020 deficit of 19.3% of gross domestic product caused by lower oil prices and the coronavirus crisis.
Oman posted a year-to-date budget deficit of 1.2 billion rials ($3.13 billion) in July, a 22.2% annual decline in its fiscal shortfall, the ministry of finance said, as the country starts reaping the benefits of fiscal consolidation reforms.
Oman's revenues increased marginally by 0.5% in the year to the end of July when compared to the same period in 2020, while oil revenues went up by 3.4% on the back of a rebound in crude prices after the coronavirus-driven slump in 2020.
"As fiscal consolidation continues, the public spending continues to decline," the ministry said in a statement on Thursday. Total spending was down by 4.7% in the year to July, compared to the same period a year earlier.
The oil-producing Gulf state has embarked on a raft of measures in the past year to fix its debt-burdened finances and has asked the International Monetary Fund to provide technical assistance on its debt strategy. read more
The reforms - which included the launch of a value-added tax - have helped Oman raise billions of dollars in bonds and loans this year despite a yawning 2020 deficit of 19.3% of gross domestic product caused by lower oil prices and the coronavirus crisis.
Oil rises on declining inventories and weaker dollar | Reuters
Oil rises on declining inventories and weaker dollar | Reuters
Oil prices edged higher on Thursday, supported by a sharp decline in U.S. crude stocks and a weaker dollar, though gains were capped by an OPEC+ decision to stick to its policy of gradually increasing output.
Brent crude was up 45 cents, or 0.6%, at $72.04 a barrel by 1101 GMT and West Texas Intermediate (WTI) crude rose 39 cents, or 0.6%, to $68.98.
U.S. crude inventories dropped by 7.2 million barrels last week, the Energy Information Administration said on Wednesday.
Hurricane Ida, meanwhile, has affected about 80% of the Gulf of Mexico's oil and gas output. Oil refineries in Louisiana could take weeks to restart. read more
Oil prices edged higher on Thursday, supported by a sharp decline in U.S. crude stocks and a weaker dollar, though gains were capped by an OPEC+ decision to stick to its policy of gradually increasing output.
Brent crude was up 45 cents, or 0.6%, at $72.04 a barrel by 1101 GMT and West Texas Intermediate (WTI) crude rose 39 cents, or 0.6%, to $68.98.
U.S. crude inventories dropped by 7.2 million barrels last week, the Energy Information Administration said on Wednesday.
Hurricane Ida, meanwhile, has affected about 80% of the Gulf of Mexico's oil and gas output. Oil refineries in Louisiana could take weeks to restart. read more
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