Oil prices settle up on U.S. stocks draw, rising fuel demand | Reuters
Oil prices settled higher on Wednesday after U.S. crude stocks fell to their lowest levels in three years as refining activity recovered from recent storms.
Despite recent wobbles from U.S. economic figures, overall demand for fuel has rebounded to pre-pandemic levels. Product supplied over the last four weeks has come in at nearly 21 million barrels per day, not far from 2019's peak.
U.S. crude inventories last week fell by 3.5 million barrels to 414 million barrels, the lowest since October 2018, the U.S. Energy Information Administration said on Wednesday.
"Crude oil prices remain supported as demand recovers around the world and inventories continue to draw," said Andrew Lipow, president of Lipow Oil Associates in Houston.
U.S. West Texas Intermediate (WTI) crude futures rose $1.74, or 2.5%, to $72.23, while Brent crude futures settled up $1.83, or 2.5%, to $76.19 a barrel.
Wednesday 22 September 2021
Oil prices rise on U.S. stocks draw, rising fuel demand | Reuters
Oil prices rise on U.S. stocks draw, rising fuel demand | Reuters
Oil prices climbed more than $1 on Wednesday after U.S. crude stocks fell to their lowest levels in three years as refining activity recovered from recent storms.
Despite recent wobbles from U.S. economic figures, overall demand for fuel has rebounded to pre-pandemic levels. Product supplied over the last four weeks has come in at nearly 21 million barrels per day, not far from 2019's peak.
U.S. crude inventories last week fell by 3.5 million barrels to 414 million barrels, lowest since October 2018, the U.S. Energy Information Administration said on Wednesday.
"Crude oil prices remain supported as demand recovers around the world and inventories continue to draw," said Andrew Lipow, president of Lipow Oil Associates in Houston.
U.S. West Texas Intermediate (WTI) crude futures rose $1.40, or 2%, to $71.88 a barrel by 11:50 a.m. EDT (1550 GMT),
Brent crude futures climbed $1.46, or 2%, to $75.82 a barrel.
Oil prices climbed more than $1 on Wednesday after U.S. crude stocks fell to their lowest levels in three years as refining activity recovered from recent storms.
Despite recent wobbles from U.S. economic figures, overall demand for fuel has rebounded to pre-pandemic levels. Product supplied over the last four weeks has come in at nearly 21 million barrels per day, not far from 2019's peak.
U.S. crude inventories last week fell by 3.5 million barrels to 414 million barrels, lowest since October 2018, the U.S. Energy Information Administration said on Wednesday.
"Crude oil prices remain supported as demand recovers around the world and inventories continue to draw," said Andrew Lipow, president of Lipow Oil Associates in Houston.
U.S. West Texas Intermediate (WTI) crude futures rose $1.40, or 2%, to $71.88 a barrel by 11:50 a.m. EDT (1550 GMT),
Brent crude futures climbed $1.46, or 2%, to $75.82 a barrel.
MIDEAST STOCKS Most Gulf bourses claw back; #Saudi extends losses | Reuters
MIDEAST STOCKS Most Gulf bourses claw back; Saudi extends losses | Reuters
Most stock markets in the Gulf rebounded on Wednesday, amid rising oil prices and ahead of the outcome of the U.S. Federal Reserve's policy meeting due later in the day.
Investors are waiting for the Fed's announcement, during which it will announce its position regarding its monetary policy and how it intends to handle its asset purchasing program, said Wael Makarem, senior market strategist at Exness.
"Investors remain wary of any signs of monetary tightening but do not expect any radical changes."
Oil prices climbed more than $1, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.
In Abu Dhabi, the index (.ADI) gained 0.4%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 1%.
The United Arab Emirates' economy will grow 2.1% this year and 4.2% in 2022, the central bank said on Wednesday, as the Gulf state rebounds from the coronavirus downturn. read more
The UAE economy benefited from a recovery in global travel and a pick up in domestic and external demand in the second quarter, the central bank said. It has also had a successful vaccination drive.
Dubai's main share index (.DFMGI) added 0.2%, supported by a 0.7% rise in Emirates NBD Bank (ENBD.DU) and a 2.6% leap in Emaar Development (EMAARDEV.DU).
Dubai said on Monday it was establishing a new Integrated Economic Zones Authority that will act as an independent legal entity with financial and administrative autonomy.
More than 5,000 international firms will operate under the Dubai Integrated Economic Zones Authority. Economic activity regulated by the authority generates 5% of Dubai's GDP.
Saudi Arabia's benchmark index (.TASI), however, fell for a fourth session in a row to close 0.4% lower. Al Rajhi Bank (1120.SE) dropped 1%, while Saudi National Bank (1180.SE), the kingdom's biggest lender, declined 0.8%.
The Qatari index (.QSI) concluded 0.3% higher, with petrochemical maker Industries Qatar (IQCD.QA) climbing 2.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.9% higher, as most of the stocks on the index were in positive territory.
Investors are waiting for the Fed's announcement, during which it will announce its position regarding its monetary policy and how it intends to handle its asset purchasing program, said Wael Makarem, senior market strategist at Exness.
"Investors remain wary of any signs of monetary tightening but do not expect any radical changes."
Oil prices climbed more than $1, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.
In Abu Dhabi, the index (.ADI) gained 0.4%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 1%.
The United Arab Emirates' economy will grow 2.1% this year and 4.2% in 2022, the central bank said on Wednesday, as the Gulf state rebounds from the coronavirus downturn. read more
The UAE economy benefited from a recovery in global travel and a pick up in domestic and external demand in the second quarter, the central bank said. It has also had a successful vaccination drive.
Dubai's main share index (.DFMGI) added 0.2%, supported by a 0.7% rise in Emirates NBD Bank (ENBD.DU) and a 2.6% leap in Emaar Development (EMAARDEV.DU).
Dubai said on Monday it was establishing a new Integrated Economic Zones Authority that will act as an independent legal entity with financial and administrative autonomy.
More than 5,000 international firms will operate under the Dubai Integrated Economic Zones Authority. Economic activity regulated by the authority generates 5% of Dubai's GDP.
Saudi Arabia's benchmark index (.TASI), however, fell for a fourth session in a row to close 0.4% lower. Al Rajhi Bank (1120.SE) dropped 1%, while Saudi National Bank (1180.SE), the kingdom's biggest lender, declined 0.8%.
The Qatari index (.QSI) concluded 0.3% higher, with petrochemical maker Industries Qatar (IQCD.QA) climbing 2.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.9% higher, as most of the stocks on the index were in positive territory.
The era of jumbo Gulf bond deals is probably over -JPMorgan | Reuters
The era of jumbo Gulf bond deals is probably over -JPMorgan | Reuters
Gulf governments continue to issue debt in high volumes, but deficit cuts and improved liquidity have reduced the urgency to raise money through so-called “jumbo bonds”, a senior JPMorgan banker has said.
In 2016 Saudi Arabia issued $17.5 billion bonds, which marked the beginning of an era of jumbo transactions in the region, as governments urgently needed to fill coffers after the 2014-2015 oil price collapse.
Jumbo bonds are generally meant as over $5 billion.
The Gulf continues to supply very large transactions - this year state-owned Qatar Petroleum sold $12.5 billion bonds.
Gulf governments continue to issue debt in high volumes, but deficit cuts and improved liquidity have reduced the urgency to raise money through so-called “jumbo bonds”, a senior JPMorgan banker has said.
In 2016 Saudi Arabia issued $17.5 billion bonds, which marked the beginning of an era of jumbo transactions in the region, as governments urgently needed to fill coffers after the 2014-2015 oil price collapse.
Jumbo bonds are generally meant as over $5 billion.
The Gulf continues to supply very large transactions - this year state-owned Qatar Petroleum sold $12.5 billion bonds.
#UAE News: Government Seeks $100 Billion India Trade as It Deepens Ties - Bloomberg
UAE News: Government Seeks $100 Billion India Trade as It Deepens Ties - Bloomberg
The United Arab Emirates is seeking to more than double non-oil trade with India to as much as $100 billion over five years as part of efforts to deepen ties with fast-growing economies beyond the Middle East.
The two governments are set to start talks on an economic pact aimed at boosting business, investment and jobs, UAE Minister of State for Foreign Trade Thani Al Zeyoudi said on a visit to New Delhi for talks with Indian Commerce Minister Piyush Goyal.
“Both sides have drawn up a very aggressive and ambitious time-frame and aim to conclude negotiations by December 2021,” Goyal said at a press conference on Wednesday. “We hope to sign formal agreements in the early part of 2022.”
Home to some of the world’s biggest wealth funds, the UAE is looking to reposition itself as a global hub for business and finance in the face of growing regional competition from Saudi Arabia. Earlier this month, the government said it plans to work on comprehensive economic agreements with countries showing high potential for growth, mainly in Asia and Africa. Last week, it said it plans to invest up to $14 billion in Britain.
The United Arab Emirates is seeking to more than double non-oil trade with India to as much as $100 billion over five years as part of efforts to deepen ties with fast-growing economies beyond the Middle East.
The two governments are set to start talks on an economic pact aimed at boosting business, investment and jobs, UAE Minister of State for Foreign Trade Thani Al Zeyoudi said on a visit to New Delhi for talks with Indian Commerce Minister Piyush Goyal.
“Both sides have drawn up a very aggressive and ambitious time-frame and aim to conclude negotiations by December 2021,” Goyal said at a press conference on Wednesday. “We hope to sign formal agreements in the early part of 2022.”
Home to some of the world’s biggest wealth funds, the UAE is looking to reposition itself as a global hub for business and finance in the face of growing regional competition from Saudi Arabia. Earlier this month, the government said it plans to work on comprehensive economic agreements with countries showing high potential for growth, mainly in Asia and Africa. Last week, it said it plans to invest up to $14 billion in Britain.
#Oman Considers Sale of $3 Billion German Unit OQ Chemicals (Oxea) - Bloomberg
Oman Considers Sale of $3 Billion German Unit OQ Chemicals (Oxea) - Bloomberg
Oman’s state energy company OQ SAOC is weighing a sale of its German chemicals business as the Persian Gulf sultanate seeks ways to steady its finances, according to people familiar with the matter.
The Muscat-based group is speaking with potential advisers as it explores options for OQ Chemicals, formerly known as Oxea, the the people said, asking not to be identified discussing confidential information. The business could be valued at about $3 billion in any sale, the people said.
Deliberations are ongoing, and there’s no certainty they’ll result in a sale, according to the people. A spokesperson for OQ Chemicals directed queries to its parent company. A representative for OQ didn’t immediately respond to a request for comment.
Under Sultan Haitham Bin Tariq, who came to power last year, Oman has been seeking to use its energy assets to raise money and lower a budget deficit that soared as the Covid-19 pandemic spread, battering oil prices and tourism.
Oman’s state energy company OQ SAOC is weighing a sale of its German chemicals business as the Persian Gulf sultanate seeks ways to steady its finances, according to people familiar with the matter.
The Muscat-based group is speaking with potential advisers as it explores options for OQ Chemicals, formerly known as Oxea, the the people said, asking not to be identified discussing confidential information. The business could be valued at about $3 billion in any sale, the people said.
Deliberations are ongoing, and there’s no certainty they’ll result in a sale, according to the people. A spokesperson for OQ Chemicals directed queries to its parent company. A representative for OQ didn’t immediately respond to a request for comment.
Under Sultan Haitham Bin Tariq, who came to power last year, Oman has been seeking to use its energy assets to raise money and lower a budget deficit that soared as the Covid-19 pandemic spread, battering oil prices and tourism.
#UAE economy to grow 2.1% this year and 4.2% next - central bank | Reuters
UAE economy to grow 2.1% this year and 4.2% next - central bank | Reuters
The United Arab Emirates' economy will grow 2.1% this year and 4.2% in 2022, the central bank said on Wednesday, as the Gulf state rebounds from the coronavirus downturn.
"Economic activity in the UAE continued its recovery in the second quarter, with growth reaching almost pre-COVID-19 levels," the central bank said in its quarterly economic review.
It forecast real non-hydrocarbon growth - adjusted for inflation and excluding the oil sector - of 3.8% this year and 3.9% next year, though it cautioned that projections were susceptible to lingering uncertainties amid the pandemic.
The UAE economy benefited from a recovery in global travel and a pick up in domestic and external demand in the second quarter, the central bank said. It has also had a successful vaccination drive.
The United Arab Emirates' economy will grow 2.1% this year and 4.2% in 2022, the central bank said on Wednesday, as the Gulf state rebounds from the coronavirus downturn.
"Economic activity in the UAE continued its recovery in the second quarter, with growth reaching almost pre-COVID-19 levels," the central bank said in its quarterly economic review.
It forecast real non-hydrocarbon growth - adjusted for inflation and excluding the oil sector - of 3.8% this year and 3.9% next year, though it cautioned that projections were susceptible to lingering uncertainties amid the pandemic.
The UAE economy benefited from a recovery in global travel and a pick up in domestic and external demand in the second quarter, the central bank said. It has also had a successful vaccination drive.
#Saudi imports from #UAE drop 33% in July after new trade rules | Reuters
Saudi imports from UAE drop 33% in July after new trade rules | Reuters
The value of Saudi Arabia’s imports from the United Arab Emirates (UAE) in July fell by 33% month on month, official data showed on Wednesday, after the kingdom imposed new rules in July on imports from other Gulf countries.
Imports from neighbouring UAE fell to 3.1 billion riyals ($827 million) in July from 4.6 billion riyals in June, according to data from the General Authority for Statistics. On an annual basis, UAE imports declined by about 6%.
In July, Saudi Arabia amended its rules on imports from other Gulf Cooperation Council (GCC) countries to exclude goods made in free zones or using Israeli input from preferential tariff concessions, a move seen as a challenge the UAE’s status as the region’s trade and business hub.
Despite being close allies, Saudi Arabia and the UAE are competing to attract investors and businesses.
The value of Saudi Arabia’s imports from the United Arab Emirates (UAE) in July fell by 33% month on month, official data showed on Wednesday, after the kingdom imposed new rules in July on imports from other Gulf countries.
Imports from neighbouring UAE fell to 3.1 billion riyals ($827 million) in July from 4.6 billion riyals in June, according to data from the General Authority for Statistics. On an annual basis, UAE imports declined by about 6%.
In July, Saudi Arabia amended its rules on imports from other Gulf Cooperation Council (GCC) countries to exclude goods made in free zones or using Israeli input from preferential tariff concessions, a move seen as a challenge the UAE’s status as the region’s trade and business hub.
Despite being close allies, Saudi Arabia and the UAE are competing to attract investors and businesses.
Most Gulf bourses claw back in early trade | Reuters
Most Gulf bourses claw back in early trade | Reuters
Most stock markets in the Gulf region recovered some of their loses on Wednesday, tracking firmer global equities after China Evergrande said it would be able to pay a coupon on one of its bonds.
Evergrande’s main unit said it had settled interest payments due on Thursday on a yuan bond with investors.
Oil prices climbed more than $1 extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves. [O/R]
Saudi Arabia’s benchmark index added 0.2%, with oil giant Saudi Aramco rising 0.3% and Saudi British Bank putting on 1.3%.
Italian energy services group Saipem has signed an agreement with Saudi Aramco to examine setting up a company to do engineering, procurement and construction (EPC) work in Saudi Arabia.
Elsewhere, Saudi Telecom Company (STC) gained 0.2%. The telecoms firm completed the retail and institutional subscription to the initial public offering of Arabian Internet and Communications Services Co, raising 3.624 billion riyals ($966.30 million), the firm said on Wednesday.
The Abu Dhabi index rose 0.2%, led by a 0.7% gain in conglomerate International Holding Company (IHC), extending gains from the previous session.
IHC’s subsidiary invested a further 55 million dirhams ($14.97 million) in Firefly to bring digital advertising services to taxis and rideshares in the region.
Dubai’s main share index increased 0.2%, supported by a 1.1% increase in Emirates NBD Bank and a 2.2% leap in budget airliner Air Arabia.
Dubai said on Monday it was establishing a new Integrated Economic Zones Authority that will act as an independent legal entity with financial and administrative autonomy.
In Qatar, the index rose 0.6%, with petrochemical maker Industries Qatar advancing 2.7%.
Most stock markets in the Gulf region recovered some of their loses on Wednesday, tracking firmer global equities after China Evergrande said it would be able to pay a coupon on one of its bonds.
Evergrande’s main unit said it had settled interest payments due on Thursday on a yuan bond with investors.
Oil prices climbed more than $1 extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves. [O/R]
Saudi Arabia’s benchmark index added 0.2%, with oil giant Saudi Aramco rising 0.3% and Saudi British Bank putting on 1.3%.
Italian energy services group Saipem has signed an agreement with Saudi Aramco to examine setting up a company to do engineering, procurement and construction (EPC) work in Saudi Arabia.
Elsewhere, Saudi Telecom Company (STC) gained 0.2%. The telecoms firm completed the retail and institutional subscription to the initial public offering of Arabian Internet and Communications Services Co, raising 3.624 billion riyals ($966.30 million), the firm said on Wednesday.
The Abu Dhabi index rose 0.2%, led by a 0.7% gain in conglomerate International Holding Company (IHC), extending gains from the previous session.
IHC’s subsidiary invested a further 55 million dirhams ($14.97 million) in Firefly to bring digital advertising services to taxis and rideshares in the region.
Dubai’s main share index increased 0.2%, supported by a 1.1% increase in Emirates NBD Bank and a 2.2% leap in budget airliner Air Arabia.
Dubai said on Monday it was establishing a new Integrated Economic Zones Authority that will act as an independent legal entity with financial and administrative autonomy.
In Qatar, the index rose 0.6%, with petrochemical maker Industries Qatar advancing 2.7%.
Gulf’s stock markets need more reforms to get small investors back | Analysis – Gulf News
Gulf’s stock markets need more reforms to get small investors back | Analysis – Gulf News
GCC stock markets have suffered from a lack of liquidity periodically despite many measures and incentives that have been put up by the authorities and listing companies. This confirms that other factors that have led to the decline in trading volumes, and these need to be addressed to maintain the vital role stock exchanges play as the creator of assets.
One key issue relates to governance, as Gulf stock exchanges still lack in adequate legislation to rollback legacy rules that have put off investors. The lack of governance has led to a rise in the number of retail investors who have refrained from dealing in stocks after losing most of their savings in past transactions from a lack of market transparency and poor governance.
Feeding off insider info
The problem lies in the dominance of speculators who feed on selective leaks put out by managements of listed companies and without being held accountable for it. This happened after the big stock market crash of the mid-2000s and repeated just over six years ago. Their repercussions continue even now.
Which is why the Gulf’s stock markets require a comprehensive review of existing legislation and leading to their implementation in case of violations to restore investor confidence. The average monthly growth in market value of Gulf stock exchanges was only 2.1 per cent in August, according to the GCC Statistical Centre, compared to a 13 per cent rise for Nasdaq earlier this year.
GCC stock markets have suffered from a lack of liquidity periodically despite many measures and incentives that have been put up by the authorities and listing companies. This confirms that other factors that have led to the decline in trading volumes, and these need to be addressed to maintain the vital role stock exchanges play as the creator of assets.
One key issue relates to governance, as Gulf stock exchanges still lack in adequate legislation to rollback legacy rules that have put off investors. The lack of governance has led to a rise in the number of retail investors who have refrained from dealing in stocks after losing most of their savings in past transactions from a lack of market transparency and poor governance.
Feeding off insider info
The problem lies in the dominance of speculators who feed on selective leaks put out by managements of listed companies and without being held accountable for it. This happened after the big stock market crash of the mid-2000s and repeated just over six years ago. Their repercussions continue even now.
Which is why the Gulf’s stock markets require a comprehensive review of existing legislation and leading to their implementation in case of violations to restore investor confidence. The average monthly growth in market value of Gulf stock exchanges was only 2.1 per cent in August, according to the GCC Statistical Centre, compared to a 13 per cent rise for Nasdaq earlier this year.
ADNOC boosts size of drilling unit IPO to $1.1 billion | Reuters
ADNOC boosts size of drilling unit IPO to $1.1 billion | Reuters
State oil giant Abu Dhabi National Oil Co (ADNOC) has increased to 11% of share capital the size of the initial public offering (IPO) of its drilling unit, ADNOC Drilling, because of oversubscription, the firm said on Wednesday.
ADNOC had previously targeted a minimum stake of 7.5% in the IPO of ADNOC Drilling, at 2.3 dirhams ($0.6262) per share.
In a statement it said the price had not changed but the number of ordinary shares offered was raised to 1.76 billion from 1.2 billion, which would correspond to a $1.1 billion transaction, according to Reuters calculations.
"The new offering size was determined by ADNOC, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all tranches," it said.
State oil giant Abu Dhabi National Oil Co (ADNOC) has increased to 11% of share capital the size of the initial public offering (IPO) of its drilling unit, ADNOC Drilling, because of oversubscription, the firm said on Wednesday.
ADNOC had previously targeted a minimum stake of 7.5% in the IPO of ADNOC Drilling, at 2.3 dirhams ($0.6262) per share.
In a statement it said the price had not changed but the number of ordinary shares offered was raised to 1.76 billion from 1.2 billion, which would correspond to a $1.1 billion transaction, according to Reuters calculations.
"The new offering size was determined by ADNOC, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all tranches," it said.
#Saudi Telecom's tech business locks in $966 million from IPO | Reuters
Saudi Telecom's tech business locks in $966 million from IPO | Reuters
Saudi Telecom Company (7010.SE) has completed the retail and institutional subscription to the initial public offering of Arabian Internet and Communications Services Co, raising 3.624 billion Saudi riyals ($966.35 million), STC said on Wednesday.
The telecoms company last week priced the IPO at the top of an indicative range for its technology business, also known as Solutions by STC.
The proceeds are before deducting fees, expenses and related costs, STC said in an exchange filing.
Last week the company priced shares of Solutions by STC, final allocations and refunds of which have yet to come, at 151 riyals each, implying a market capitalisation of about $4.8 billion.
Saudi Telecom Company (7010.SE) has completed the retail and institutional subscription to the initial public offering of Arabian Internet and Communications Services Co, raising 3.624 billion Saudi riyals ($966.35 million), STC said on Wednesday.
The telecoms company last week priced the IPO at the top of an indicative range for its technology business, also known as Solutions by STC.
The proceeds are before deducting fees, expenses and related costs, STC said in an exchange filing.
Last week the company priced shares of Solutions by STC, final allocations and refunds of which have yet to come, at 151 riyals each, implying a market capitalisation of about $4.8 billion.
Oil prices rise over $1 after report of big draw in U.S. crude stocks | Reuters
Oil prices rise over $1 after report of big draw in U.S. crude stocks | Reuters
Oil prices climbed more than $1 on Wednesday, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.
U.S. West Texas Intermediate (WTI) crude futures rose $1.08, or 1.5%, to $71.57 a barrel by 0643 GMT, adding to a 35- cent gain from Tuesday.
Brent crude futures climbed $1.03, or 1.4%, to $75.39 a barrel, after gaining 44 cents on Tuesday.
The oil market's focus turned to concerns of tight supply, after Monday's pressure from broad market jitters over the possible default of Chinese property developer China Evergrande Group (3333.HK).
Oil prices climbed more than $1 on Wednesday, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.
U.S. West Texas Intermediate (WTI) crude futures rose $1.08, or 1.5%, to $71.57 a barrel by 0643 GMT, adding to a 35- cent gain from Tuesday.
Brent crude futures climbed $1.03, or 1.4%, to $75.39 a barrel, after gaining 44 cents on Tuesday.
The oil market's focus turned to concerns of tight supply, after Monday's pressure from broad market jitters over the possible default of Chinese property developer China Evergrande Group (3333.HK).
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