Oil settles above $81 with OPEC+ sticking to output increase | Reuters
Oil jumped to a three-year peak on Monday after OPEC+ confirmed it would stick to its current output policy as demand for petroleum products rebounds, despite pressure from some countries for a bigger boost to production.
The producer club's decision to keep increasing oil output gradually sent prices sharply higher, adding to inflationary pressures that consuming nations fear will derail an economic recovery from the pandemic. read more
OPEC+ agreed in July to boost output by 400,000 barrels per day (bpd) each month until at least April 2022 to phase out 5.8 million bpd of existing production cuts.
Brent crude settled up $1.98, or 2.5%, to $81.26 a barrel. It rose 1.5% last week for a fourth consecutive weekly gain, and was back up to highs last seen in 2018.
U.S. oil settled up $1.74, or 2.3%, to $77.62 a barrel after gaining for the past six weeks, and was at its highest since 2014.
Monday, 4 October 2021
#UAE Oil Reliance at Multi-Year High Despite Lower Production - Bloomberg
UAE Oil Reliance at Multi-Year High Despite Lower Production - Bloomberg
Oil’s share in the United Arab Emirates’ economy last year spiked to the highest since 2016 even though crude production fell around 18% on an annual basis, a federal-bond prospectus showed Monday.
Oil accounted for about 29% of gross domestic product in 2020, compared with 25% during the previous year. While the reason for the rise is unclear, the spread of Covid-19 last year took a toll on many of the country’s businesses, with private-sector activity dropping to an all-time low.
Countries in the region have been trying to prepare for a post-oil era, with economic diversification efforts being led in Saudi Arabia, Kuwait and Oman. The UAE’s economy has distinguished itself through Dubai, the Middle East’s business hub, which depends mainly on the private sector.
“The Federal Government has a long-term strategy of diversifying the UAE’s economy away from its reliance on oil,” according to the prospectus, “however, there can be no assurance that the UAE’s efforts to diversify its economy and reduce its dependence on oil will be completely successful.”
Oil’s share in the United Arab Emirates’ economy last year spiked to the highest since 2016 even though crude production fell around 18% on an annual basis, a federal-bond prospectus showed Monday.
Oil accounted for about 29% of gross domestic product in 2020, compared with 25% during the previous year. While the reason for the rise is unclear, the spread of Covid-19 last year took a toll on many of the country’s businesses, with private-sector activity dropping to an all-time low.
Countries in the region have been trying to prepare for a post-oil era, with economic diversification efforts being led in Saudi Arabia, Kuwait and Oman. The UAE’s economy has distinguished itself through Dubai, the Middle East’s business hub, which depends mainly on the private sector.
“The Federal Government has a long-term strategy of diversifying the UAE’s economy away from its reliance on oil,” according to the prospectus, “however, there can be no assurance that the UAE’s efforts to diversify its economy and reduce its dependence on oil will be completely successful.”
Aramco Says Global Natural-Gas Crisis Is Boosting Oil Demand - Bloomberg
Aramco Says Global Natural-Gas Crisis Is Boosting Oil Demand - Bloomberg
Saudi Aramco said the natural-gas crisis was already boosting oil demand and reiterated plans to increase its output capacity.
Crude consumption’s risen by around 500,000 barrels a day, according to Amin Nasser, chief executive officer of the world’s biggest oil company. That’s more than the size of a production increase agreed by OPEC+ for next month.
A shortage of gas has sent prices soaring in Europe and Asia to the equivalent of around $180 per barrel of oil, forcing some businesses to switch to crude products for their power.
“There is higher demand,” Nasser said during an Energy Intelligence forum. “There is some shift we have seen from gas to liquids, especially in certain markets in Asia.”
Saudi Aramco said the natural-gas crisis was already boosting oil demand and reiterated plans to increase its output capacity.
Crude consumption’s risen by around 500,000 barrels a day, according to Amin Nasser, chief executive officer of the world’s biggest oil company. That’s more than the size of a production increase agreed by OPEC+ for next month.
A shortage of gas has sent prices soaring in Europe and Asia to the equivalent of around $180 per barrel of oil, forcing some businesses to switch to crude products for their power.
“There is higher demand,” Nasser said during an Energy Intelligence forum. “There is some shift we have seen from gas to liquids, especially in certain markets in Asia.”
GlobalFoundries Files for an IPO, Capitalizing on Chip Boom - Bloomberg
GlobalFoundries Files for an IPO, Capitalizing on Chip Boom - Bloomberg
GlobalFoundries Inc. filed for an initial public offering, looking to benefit from investors pouring money into semiconductor makers during a pandemic-induced chip shortage.
In a filing Monday, the company listed the size of its offering as $1 billion -- a placeholder that will change when terms of the share sale are set. GlobalFoundries, owned by an investment arm of the Abu Dhabi government, also disclosed financial details of its business, including a 2020 net loss of $1.35 billion and revenue of $4.85 billion.
GlobalFoundries was created by purchasing the manufacturing operations of Advanced Micro Devices Inc. in 2009 and later combining it with Singapore’s Chartered Semiconductor. The Abu Dhabi fund, called Mubadala Investment Co., was planning for the business to be valued in a listing at around $30 billion, Bloomberg News reported in July.
GlobalFoundries Inc. filed for an initial public offering, looking to benefit from investors pouring money into semiconductor makers during a pandemic-induced chip shortage.
In a filing Monday, the company listed the size of its offering as $1 billion -- a placeholder that will change when terms of the share sale are set. GlobalFoundries, owned by an investment arm of the Abu Dhabi government, also disclosed financial details of its business, including a 2020 net loss of $1.35 billion and revenue of $4.85 billion.
GlobalFoundries was created by purchasing the manufacturing operations of Advanced Micro Devices Inc. in 2009 and later combining it with Singapore’s Chartered Semiconductor. The Abu Dhabi fund, called Mubadala Investment Co., was planning for the business to be valued in a listing at around $30 billion, Bloomberg News reported in July.
OPEC+ sticks to plan for gradual oil output hike, price roars higher | Reuters
OPEC+ sticks to plan for gradual oil output hike, price roars higher | Reuters
OPEC+ said on Monday it would stick to an existing pact for a gradual increase in oil output, sending crude prices to three-year highs and adding to inflationary pressures that consuming nations fear will derail an economic recovery from the pandemic.
The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, have faced calls for from big consumers, such as the United States and India, for extra supplies after oil prices surged more than 50% this year.
OPEC+ "reconfirmed the production adjustment plan", the group said in a statement issued after online ministerial talks, referring to a previously agreed deal under which 400,000 barrels per day (bpd) would be added in November,
Brent crude roared above $81 a barrel on news that the group would stay with its plan for gradual additional production, rather than offering more supply to the market.
OPEC+ said on Monday it would stick to an existing pact for a gradual increase in oil output, sending crude prices to three-year highs and adding to inflationary pressures that consuming nations fear will derail an economic recovery from the pandemic.
The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, have faced calls for from big consumers, such as the United States and India, for extra supplies after oil prices surged more than 50% this year.
OPEC+ "reconfirmed the production adjustment plan", the group said in a statement issued after online ministerial talks, referring to a previously agreed deal under which 400,000 barrels per day (bpd) would be added in November,
Brent crude roared above $81 a barrel on news that the group would stay with its plan for gradual additional production, rather than offering more supply to the market.
MIDEAST STOCKS Major Gulf bourses end mixed as global recovery concerns weigh | Reuters
MIDEAST STOCKS Major Gulf bourses end mixed as global recovery concerns weigh | Reuters
Major stock markets in the Gulf region ended mixed on Monday, amid concerns about a recovery in the global economy, although rising oil prices provided some support.
GCC stock markets moved in different directions as investors remain worried about the global economic slowdown and how more durable inflation will have an impact on monetary policy, said Wael Makarem, senior market strategist at Exness.
World stocks were on the back foot on concerns that higher inflation, supply shortages and China's property sector woes would put global economic recovery at risk. read more
In Abu Dhabi, the index (.ADI) fell 0.3%, hit by a 1.2% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.4% decrease in Alpha Dhabi Holding (ALPHADHABI.AD).
However, ADNOC Drilling (ADNOCDRILL.AD) extended gains to rise 1%. It had surged over 28% in its debut on Sunday following a $1.1 billion initial public offering (IPO), the largest ever on the Abu Dhabi stock market. read more
Dubai's main share index (.DFMGI) dropped 0.8%, dragged by a 2.1% decline in Emirates NBD Bank (ENBD.DU) and a 1% fall in blue-chip developer Emaar Properties (EMAR.DU).
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, with Al Rajhi Bank (1120.SE) rising 1.6% and Saudi National Bank (1180.SE), the kingdom's largest lender, gaining 2.5%.
Oil was steady as OPEC and its allies meet to decide on output after a recent rally in prices reflecting recovering demand and supply disruptions.
Three sources told Reuters the group of oil producers was likely to stick to their existing agreement to produce an additional 400,000 barrels per day (bpd) in November. read more
The Qatari index (.QSI) added 0.4%, helped by a 0.9% rise in petrochemical maker Industries Qatar (IQCD.QA) and a 0.8% increase in Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.6%, led by a 1.4% gain in top lender Commercial International Bank (COMI.CA).
Oman bourse remained closed for a second session as the country reels from cyclone.
Major stock markets in the Gulf region ended mixed on Monday, amid concerns about a recovery in the global economy, although rising oil prices provided some support.
GCC stock markets moved in different directions as investors remain worried about the global economic slowdown and how more durable inflation will have an impact on monetary policy, said Wael Makarem, senior market strategist at Exness.
World stocks were on the back foot on concerns that higher inflation, supply shortages and China's property sector woes would put global economic recovery at risk. read more
In Abu Dhabi, the index (.ADI) fell 0.3%, hit by a 1.2% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.4% decrease in Alpha Dhabi Holding (ALPHADHABI.AD).
However, ADNOC Drilling (ADNOCDRILL.AD) extended gains to rise 1%. It had surged over 28% in its debut on Sunday following a $1.1 billion initial public offering (IPO), the largest ever on the Abu Dhabi stock market. read more
Dubai's main share index (.DFMGI) dropped 0.8%, dragged by a 2.1% decline in Emirates NBD Bank (ENBD.DU) and a 1% fall in blue-chip developer Emaar Properties (EMAR.DU).
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, with Al Rajhi Bank (1120.SE) rising 1.6% and Saudi National Bank (1180.SE), the kingdom's largest lender, gaining 2.5%.
Oil was steady as OPEC and its allies meet to decide on output after a recent rally in prices reflecting recovering demand and supply disruptions.
Three sources told Reuters the group of oil producers was likely to stick to their existing agreement to produce an additional 400,000 barrels per day (bpd) in November. read more
The Qatari index (.QSI) added 0.4%, helped by a 0.9% rise in petrochemical maker Industries Qatar (IQCD.QA) and a 0.8% increase in Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.6%, led by a 1.4% gain in top lender Commercial International Bank (COMI.CA).
Oman bourse remained closed for a second session as the country reels from cyclone.
ESG drills deeper into Gulf oil IPOs | Reuters
ESG drills deeper into Gulf oil IPOs | Reuters
On most counts, the initial public offering of Abu Dhabi National Oil Company’s exploration services subsidiary counts as a success. ADNOC Drilling (ADNOCDRILL.AD) priced its enlarged sale of 11% of the company conservatively and was rewarded with a 30% pop on Sunday read more . The group’s current $13 billion valuation means it now trades at a slight premium to fellow oil services group Baker Hughes (BKR.N), which retains a 5% stake.
The successful market debut shrugged off the lack of interest from overseas investors: foreigners bought around 10% of the sale, slightly less than Saudi Aramco (2222.SE) managed to attract in its controversial 2019 IPO. Aside from ADNOC Drilling’s more appealing valuation, the United Arab Emirates in general carries less baggage as an investment destination for western capital. Yet it was still selling shares in a fossil fuel business. Environmental, social and governance concerns seem to be looming ever larger for western investors.
On most counts, the initial public offering of Abu Dhabi National Oil Company’s exploration services subsidiary counts as a success. ADNOC Drilling (ADNOCDRILL.AD) priced its enlarged sale of 11% of the company conservatively and was rewarded with a 30% pop on Sunday read more . The group’s current $13 billion valuation means it now trades at a slight premium to fellow oil services group Baker Hughes (BKR.N), which retains a 5% stake.
The successful market debut shrugged off the lack of interest from overseas investors: foreigners bought around 10% of the sale, slightly less than Saudi Aramco (2222.SE) managed to attract in its controversial 2019 IPO. Aside from ADNOC Drilling’s more appealing valuation, the United Arab Emirates in general carries less baggage as an investment destination for western capital. Yet it was still selling shares in a fossil fuel business. Environmental, social and governance concerns seem to be looming ever larger for western investors.
#UAE’s First Federal Debt Adds to Borrowing Rush Before Fed Taper - Bloomberg
UAE’s First Federal Debt Adds to Borrowing Rush Before Fed Taper - Bloomberg
The United Arab Emirates is marketing the first bond sale in its 50-year history as a combined federation, joining the rush of emerging-market borrowers tapping investors before the Federal Reserve starts winding down its pandemic stimulus.
The securities, which are denominated in dollars, will mature in 10 and 20 years, according to a person familiar with the matter who’s not authorized to speak publicly and asked not to be identified. The UAE is also offering a 40-year dual-listed Formosa bond -- debt issued in Taiwan and denominated in a currency other than the Taiwan dollar. Proceeds from the debt will go toward infrastructure projects and investments by its sovereign wealth fund.
While several of the seven emirates, including Abu Dhabi, Dubai and Sharjah, have tapped the market over the years, the UAE has never done so as a single entity. The debt sale comes after a turbulent week that drove short-term Treasury yields to the highest levels since the pandemic began. As investors start pricing in higher borrowing costs in anticipation of the Fed’s tapering of its asset purchases, emerging-market governments -- both regional and global -- have been rushing to bond markets.
The bonds “are going to be popular with investors given the novelty of this issuance,” said Richard Segal, a research analyst at London-based Ambrosia Capital. Based on actual and implied ratings differentials, a federal UAE bond would trade between Abu Dhabi and Dubai government bonds, but closer to Abu Dhabi, he added.
The United Arab Emirates is marketing the first bond sale in its 50-year history as a combined federation, joining the rush of emerging-market borrowers tapping investors before the Federal Reserve starts winding down its pandemic stimulus.
The securities, which are denominated in dollars, will mature in 10 and 20 years, according to a person familiar with the matter who’s not authorized to speak publicly and asked not to be identified. The UAE is also offering a 40-year dual-listed Formosa bond -- debt issued in Taiwan and denominated in a currency other than the Taiwan dollar. Proceeds from the debt will go toward infrastructure projects and investments by its sovereign wealth fund.
While several of the seven emirates, including Abu Dhabi, Dubai and Sharjah, have tapped the market over the years, the UAE has never done so as a single entity. The debt sale comes after a turbulent week that drove short-term Treasury yields to the highest levels since the pandemic began. As investors start pricing in higher borrowing costs in anticipation of the Fed’s tapering of its asset purchases, emerging-market governments -- both regional and global -- have been rushing to bond markets.
The bonds “are going to be popular with investors given the novelty of this issuance,” said Richard Segal, a research analyst at London-based Ambrosia Capital. Based on actual and implied ratings differentials, a federal UAE bond would trade between Abu Dhabi and Dubai government bonds, but closer to Abu Dhabi, he added.
Oil steady ahead of OPEC+ supply policy meeting | Reuters
Oil steady ahead of OPEC+ supply policy meeting | Reuters
Oil was steady on Monday ahead of a meeting by OPEC and its allies which may determine whether a recent rally in prices amid supply shocks and a recovery from the COVID-19 pandemic will be sustained.
Three sources told Reuters the group of oil producers was likely to stick to their existing agreement to produce an additional 400,000 barrels per day (bpd) in November. read more
Brent crude was up 20 cents or 0.3% at $79.48 per barrel by 1101 GMT. It rose 1.5% last week, its fourth weekly gain in a row. U.S. oil rose 1 cent or 0.1% to $75.98, after gaining for the past six weeks.
Oil prices have risen due to a rise in global demand and supply disruptions, pushing Brent last week above $80 to a near three-year high.
Oil was steady on Monday ahead of a meeting by OPEC and its allies which may determine whether a recent rally in prices amid supply shocks and a recovery from the COVID-19 pandemic will be sustained.
Three sources told Reuters the group of oil producers was likely to stick to their existing agreement to produce an additional 400,000 barrels per day (bpd) in November. read more
Brent crude was up 20 cents or 0.3% at $79.48 per barrel by 1101 GMT. It rose 1.5% last week, its fourth weekly gain in a row. U.S. oil rose 1 cent or 0.1% to $75.98, after gaining for the past six weeks.
Oil prices have risen due to a rise in global demand and supply disruptions, pushing Brent last week above $80 to a near three-year high.
#Saudi MBC Group-backed Al Arabiya to offer 30% stake in IPO | ZAWYA MENA Edition
Saudi MBC Group-backed Al Arabiya to offer 30% stake in IPO | ZAWYA MENA Edition
Arabian Contracting Services Company, or Al Arabiya, in which Middle East media conglomerate MBC Group holds a stake, has announced its intention to sell 30 percent of its shares in an initial public offering (IPO) and list on the Saudi Stock Exchange (Tadawul).
The public offering is expected to take place from October 26 to October 22, according to a company prospectus. A book-building process will determine the offer price per share.
At least 15 million shares will be offered to qualified institutional investors, as well as individual investors in Saudi Arabia and the rest of the Gulf Cooperation Council (GCC) region.
Al Arabiya is the largest outdoor advertising company in Saudi Arabia in terms of revenue. As of 2020, it holds 62.3 percent of the market share in the kingdom.
Aside from MBC Group, the company also counts Engineer Holding Group Company, a major media group operating in Saudi Arabia, as its current shareholder.
In a statement, the company said it has already obtained the approval from the Saudi bourse to list its shares on the main market and from the Capital Market Authority to hold the IPO.
Arabian Contracting Services Company, or Al Arabiya, in which Middle East media conglomerate MBC Group holds a stake, has announced its intention to sell 30 percent of its shares in an initial public offering (IPO) and list on the Saudi Stock Exchange (Tadawul).
The public offering is expected to take place from October 26 to October 22, according to a company prospectus. A book-building process will determine the offer price per share.
At least 15 million shares will be offered to qualified institutional investors, as well as individual investors in Saudi Arabia and the rest of the Gulf Cooperation Council (GCC) region.
Al Arabiya is the largest outdoor advertising company in Saudi Arabia in terms of revenue. As of 2020, it holds 62.3 percent of the market share in the kingdom.
Aside from MBC Group, the company also counts Engineer Holding Group Company, a major media group operating in Saudi Arabia, as its current shareholder.
In a statement, the company said it has already obtained the approval from the Saudi bourse to list its shares on the main market and from the Capital Market Authority to hold the IPO.
#Saudi Telecom May See Significant Inflows If PIF Sells Stake - Bloomberg
Saudi Telecom May See Significant Inflows If PIF Sells Stake - Bloomberg
The Middle East’s biggest telecoms company may see significant inflows after Saudi Arabia’s sovereign wealth fund sells part of its 70% stake.
Shares in Saudi Telecom Co. dropped 3.3% on Sunday, the most since March 2020, after the Public Investment Fund said it may sell part of its holding. The PIF plans to retain more than a 50% stake.
The deal could generate “decent” inflows, according to Ahmed El Difrawy, head of data and index research at EFG-Hermes. If the PIF sells a 20% stake, Saudi Telecom could see inflows of up to $1.4 billion from passive trackers of the MSCI and FTSE Russell indexes, he wrote in a note.
“The increase in free float is positive but we believe it may take some time to sell” and get reflected in those indexes, according to Pritish Devassy, the head of equity research at Al Rajhi Capital. “Irrespective of the fundamentals, the concern for some participants could be that there would be selling pressure because of the stake sale.”
Still, the volatility will likely be temporary, he said. “It would be a good time to add for a long term investor.”
The Middle East’s biggest telecoms company may see significant inflows after Saudi Arabia’s sovereign wealth fund sells part of its 70% stake.
Shares in Saudi Telecom Co. dropped 3.3% on Sunday, the most since March 2020, after the Public Investment Fund said it may sell part of its holding. The PIF plans to retain more than a 50% stake.
The deal could generate “decent” inflows, according to Ahmed El Difrawy, head of data and index research at EFG-Hermes. If the PIF sells a 20% stake, Saudi Telecom could see inflows of up to $1.4 billion from passive trackers of the MSCI and FTSE Russell indexes, he wrote in a note.
“The increase in free float is positive but we believe it may take some time to sell” and get reflected in those indexes, according to Pritish Devassy, the head of equity research at Al Rajhi Capital. “Irrespective of the fundamentals, the concern for some participants could be that there would be selling pressure because of the stake sale.”
Still, the volatility will likely be temporary, he said. “It would be a good time to add for a long term investor.”
Amazon Rival Noon to Raise $2 Billion From Backers Including PIF - Bloomberg
Amazon Rival Noon to Raise $2 Billion From Backers Including PIF - Bloomberg
Amazon.com Inc’s Middle Eastern rival Noon.com is set to draw as much as $2 billion in financing from investors including Saudi Arabia’s sovereign wealth fund over three to four years, as it seeks to capture a larger slice of the Gulf e-commerce market.
The investments from the Public Investment Fund and others will be used to upgrade infrastructure and help speed up deliveries, Noon founder Mohamed Alabbar said late on Sunday. “They are happy with our progress and they are happy to fund,” he said.
The Middle East has been slower to adapt to e-commerce than other regions, although lockdowns to combat the coronavirus pandemic last year have accelerated the shift to online shopping and food delivery. Alabbar said e-commerce currently accounts for 2% to 2.5% of total retail in the region, compared with 20% to 22% in the western world and China.
Noon operates in the United Arab Emirates, Saudi Arabia and Egypt and is looking to expand in other nations across the Middle East.
“We have a long way to go,” Alabbar said. “There is a lot of room for growth and a lot of countries to cover.”
Alabbar, who owns 50% of Noon jointly with other regional private investors, raised $1 billion from backers including the PIF, as Saudi Arabia’s sovereign wealth fund is known, to create the firm in 2016. It now has about 4 million daily users and growth is accelerating as it pushes into grocery delivery.
Amazon.com Inc’s Middle Eastern rival Noon.com is set to draw as much as $2 billion in financing from investors including Saudi Arabia’s sovereign wealth fund over three to four years, as it seeks to capture a larger slice of the Gulf e-commerce market.
The investments from the Public Investment Fund and others will be used to upgrade infrastructure and help speed up deliveries, Noon founder Mohamed Alabbar said late on Sunday. “They are happy with our progress and they are happy to fund,” he said.
The Middle East has been slower to adapt to e-commerce than other regions, although lockdowns to combat the coronavirus pandemic last year have accelerated the shift to online shopping and food delivery. Alabbar said e-commerce currently accounts for 2% to 2.5% of total retail in the region, compared with 20% to 22% in the western world and China.
Noon operates in the United Arab Emirates, Saudi Arabia and Egypt and is looking to expand in other nations across the Middle East.
“We have a long way to go,” Alabbar said. “There is a lot of room for growth and a lot of countries to cover.”
Alabbar, who owns 50% of Noon jointly with other regional private investors, raised $1 billion from backers including the PIF, as Saudi Arabia’s sovereign wealth fund is known, to create the firm in 2016. It now has about 4 million daily users and growth is accelerating as it pushes into grocery delivery.
OPEC+ seen keeping oil output policy unchanged, OPEC+ sources say | Reuters
OPEC+ seen keeping oil output policy unchanged, OPEC+ sources say | Reuters
OPEC and its allies are likely to stick to their existing agreement to add 400,000 barrels per day (bpd) of oil to the market in November, three OPEC+ sources said on Monday, despite pressure from consumers to cool a red hot market.
Ministers from The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, are due to gather online at 1300 GMT. An OPEC+ ministerial panel that monitors market developments, known as JMMC, meets before that.
The price of benchmark Brent crude surged above $80 last month and was trading close to those highs on Monday at about $79, pushed up by supply disruptions and surging demand as the global economy recovers from the COVID-19 pandemic.
OPEC and its allies are likely to stick to their existing agreement to add 400,000 barrels per day (bpd) of oil to the market in November, three OPEC+ sources said on Monday, despite pressure from consumers to cool a red hot market.
Ministers from The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, are due to gather online at 1300 GMT. An OPEC+ ministerial panel that monitors market developments, known as JMMC, meets before that.
The price of benchmark Brent crude surged above $80 last month and was trading close to those highs on Monday at about $79, pushed up by supply disruptions and surging demand as the global economy recovers from the COVID-19 pandemic.
Qantas extends Emirates alliance for another five years till 2028 | Reuters
Qantas extends Emirates alliance for another five years till 2028 | Reuters
Australia's Qantas Airways Ltd (QAN.AX) and Dubai-based Emirates would extend their partnership for another five years till 2028, they said on Monday, as both airlines battle with the impact of the COVID-19 pandemic on international air travel.
The partnership includes integrated network collaboration with coordinated pricing, sales and scheduling, as well as a benefit-sharing model across Australia, New Zealand, Europe and the U.K.
"As Qantas and Emirates recover from the impact that COVID-19 has had on their respective businesses, the partnership will continue to deliver financial upside for both airlines, " the companies said in a joint statement.
The alliance was formed in 2013 as part of Qantas' efforts to shore up its loss making international business, replacing its existing deal with British Airways. Since then, more than 13 million passengers have travelled on the joint network.
"We know the international aviation market will take years to fully recover so close collaboration between airline partners is going to be more important than ever," Qantas Group Chief Executive Officer Alan Joyce said in a statement.
The deal, which was about to end in 2023 earlier, will have to be re-authorised by Australia's competition watchdog.
Australia's Qantas Airways Ltd (QAN.AX) and Dubai-based Emirates would extend their partnership for another five years till 2028, they said on Monday, as both airlines battle with the impact of the COVID-19 pandemic on international air travel.
The partnership includes integrated network collaboration with coordinated pricing, sales and scheduling, as well as a benefit-sharing model across Australia, New Zealand, Europe and the U.K.
"As Qantas and Emirates recover from the impact that COVID-19 has had on their respective businesses, the partnership will continue to deliver financial upside for both airlines, " the companies said in a joint statement.
The alliance was formed in 2013 as part of Qantas' efforts to shore up its loss making international business, replacing its existing deal with British Airways. Since then, more than 13 million passengers have travelled on the joint network.
"We know the international aviation market will take years to fully recover so close collaboration between airline partners is going to be more important than ever," Qantas Group Chief Executive Officer Alan Joyce said in a statement.
The deal, which was about to end in 2023 earlier, will have to be re-authorised by Australia's competition watchdog.
Oil falls ahead of OPEC+ supply policy meeting | Reuters
Oil falls ahead of OPEC+ supply policy meeting | Reuters
Oil fell on Monday ahead of a meeting by OPEC and its allies which may determine whether a recent rally in prices amid supply shocks and a recovery from the COVID-19 pandemic will be sustained.
Brent crude was down 37 cents or 0.5% at $78.91 per barrel by 0850 GMT. It rose 1.5% last week, its fourth weekly gain in a row. U.S. oil dropped by 39 cents or 0.5% to $75.49, after gaining for the past six weeks.
Oil prices have risen due to the supply disruptions and a rise in global demand, pushing Brent last week above $80 to a near three-year high.
"The speed, with which oil prices have risen this year has slowed considerably but it would be too early or pre-mature to write off further strength. Oil demand is holding up well and supply might have difficulties to catch up," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
Oil fell on Monday ahead of a meeting by OPEC and its allies which may determine whether a recent rally in prices amid supply shocks and a recovery from the COVID-19 pandemic will be sustained.
Brent crude was down 37 cents or 0.5% at $78.91 per barrel by 0850 GMT. It rose 1.5% last week, its fourth weekly gain in a row. U.S. oil dropped by 39 cents or 0.5% to $75.49, after gaining for the past six weeks.
Oil prices have risen due to the supply disruptions and a rise in global demand, pushing Brent last week above $80 to a near three-year high.
"The speed, with which oil prices have risen this year has slowed considerably but it would be too early or pre-mature to write off further strength. Oil demand is holding up well and supply might have difficulties to catch up," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
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