Oil eases on profit taking, demand jitters; stays near highest in years | Reuters
Oil prices eased on Wednesday on worries that crude demand growth would slow, which ate into recent gains that had brought prices to multi-year highs in recent sessions.
Analysts noted that some traders likely took profits in U.S. crude after West Texas Intermediate (WTI) futures hit their highest since October 2014 during the past three sessions.
Brent futures fell 24 cents, or 0.3%, to settle at $83.18 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 20 cents, or 0.3%, to $80.44.
Prices came under pressure early when China, the world's biggest crude importer, released data showing September imports fell 15% from a year earlier.
Wednesday 13 October 2021
IEA World Energy Outlook 2021: Throw Money, But Aim Carefully - Bloomberg
IEA World Energy Outlook 2021: Throw Money, But Aim Carefully - Bloomberg
The recent jump in energy prices has been portrayed as an act of retribution by fossil fuels after years of low investment. The International Energy Agency’s latest long-term outlook trumps that: We’re underinvesting in energy, period.
Rather than some neglected soul seeking vengeance, the global energy system might better be thought of as a particularly confused, and volatile, tween. It’s a phase we’re all going through — just a phase that happens to be of indeterminate length, course and outcome — as we change over from a mostly fossil-fueled society to a decarbonized one.
The sun-powered uplands of 2050 envisaged in the IEA’s net-zero emissions scenario are cleaner and mitigate the ravages of climate change. The issue is getting there. In particular, relying on two energy systems — one carbon-based, the other not — that are broadly opposed but also intertwined in certain respects is a recipe for mismatches in supply and demand.
Contrary to the simplistic narrative of green activists crowding out new wells and mines, the current tightness in energy markets results from multiple issues colliding at once. These include the recovery from Covid-19, an investment strike in U.S. shale that has more to do with “G” than “E” or “S”, OPEC+ taking the opportunity to hold out for higher prices and a cyclical lull in expanding liquefied natural gas capacity.
The recent jump in energy prices has been portrayed as an act of retribution by fossil fuels after years of low investment. The International Energy Agency’s latest long-term outlook trumps that: We’re underinvesting in energy, period.
Rather than some neglected soul seeking vengeance, the global energy system might better be thought of as a particularly confused, and volatile, tween. It’s a phase we’re all going through — just a phase that happens to be of indeterminate length, course and outcome — as we change over from a mostly fossil-fueled society to a decarbonized one.
The sun-powered uplands of 2050 envisaged in the IEA’s net-zero emissions scenario are cleaner and mitigate the ravages of climate change. The issue is getting there. In particular, relying on two energy systems — one carbon-based, the other not — that are broadly opposed but also intertwined in certain respects is a recipe for mismatches in supply and demand.
Contrary to the simplistic narrative of green activists crowding out new wells and mines, the current tightness in energy markets results from multiple issues colliding at once. These include the recovery from Covid-19, an investment strike in U.S. shale that has more to do with “G” than “E” or “S”, OPEC+ taking the opportunity to hold out for higher prices and a cyclical lull in expanding liquefied natural gas capacity.
Analysis-State investors step up unicorn hunt as valuations swell | Reuters
Analysis-State investors step up unicorn hunt as valuations swell | Reuters
Sovereign wealth and public pension funds are piling into venture capital mega-deals beyond Silicon Valley even as frothy valuations raise fears of overheating among a surging number of unicorns.
The promise of returns at multiples of equity markets’ has made venture capital increasingly inviting for state-owned investors, while their deep pockets make them enticing backers for cash-hungry start-ups.
In the first nine months of this year, state-owned investors made $14.9 billion in venture capital investments, up from $8.9 billion across all of 2020, data from Global SWF showed.
Participation by sovereign wealth funds and other government funds in U.S. venture capital deals by value reached a five-year high as of the end of June, according to PitchBook data.
While the U.S. represented almost half of all capital flows by sovereign investors into venture capital in 2020, it accounted for only a third of the deals seen in 2021, according to Global SWF, with China and India sucking in more flows to capture 40% of the 2021 total.
Sovereign wealth and public pension funds are piling into venture capital mega-deals beyond Silicon Valley even as frothy valuations raise fears of overheating among a surging number of unicorns.
The promise of returns at multiples of equity markets’ has made venture capital increasingly inviting for state-owned investors, while their deep pockets make them enticing backers for cash-hungry start-ups.
In the first nine months of this year, state-owned investors made $14.9 billion in venture capital investments, up from $8.9 billion across all of 2020, data from Global SWF showed.
Participation by sovereign wealth funds and other government funds in U.S. venture capital deals by value reached a five-year high as of the end of June, according to PitchBook data.
While the U.S. represented almost half of all capital flows by sovereign investors into venture capital in 2020, it accounted for only a third of the deals seen in 2021, according to Global SWF, with China and India sucking in more flows to capture 40% of the 2021 total.
Islamic Development Bank gets $1.7 billion via sukuk | Reuters
Islamic Development Bank gets $1.7 billion via sukuk | Reuters
The Jeddah-based Islamic Development Bank on Wednesday sold $1.7 billion in five-year Islamic bonds at 25 basis points over mid-swaps, a bank document showed.
The multilateral development bank was expected to raise $1.5 billion through the sukuk sale, another document also from one of the banks on the deal showed earlier.
The spread was tightened from initial guidance on Tuesday of around 30 bps over mid-swaps after the sukuk drew more than $2.4 billion in demand.
Credit Agricole (CAGR.PA), First Abu Dhabi Bank (FAB.AD), HSBC (HSBA.L), the Islamic Corporation for the Development of the Private Sector, JPMorgan (JPM.N), KFH Capital (KFH.KW), Natixis, SMBC Nikko (8316.T) and Standard Chartered (STAN.L) arranged the debt sale.
The Islamic Development Bank, which is rated AAA by all three major ratings agencies, is a regular issuer in the debt capital markets.
It raised $2.5 billion in March with sustainability sukuk, which can finance projects including renewable energy. IsDB also sold $1.5 billion in sukuk in June last year.
The Jeddah-based Islamic Development Bank on Wednesday sold $1.7 billion in five-year Islamic bonds at 25 basis points over mid-swaps, a bank document showed.
The multilateral development bank was expected to raise $1.5 billion through the sukuk sale, another document also from one of the banks on the deal showed earlier.
The spread was tightened from initial guidance on Tuesday of around 30 bps over mid-swaps after the sukuk drew more than $2.4 billion in demand.
Credit Agricole (CAGR.PA), First Abu Dhabi Bank (FAB.AD), HSBC (HSBA.L), the Islamic Corporation for the Development of the Private Sector, JPMorgan (JPM.N), KFH Capital (KFH.KW), Natixis, SMBC Nikko (8316.T) and Standard Chartered (STAN.L) arranged the debt sale.
The Islamic Development Bank, which is rated AAA by all three major ratings agencies, is a regular issuer in the debt capital markets.
It raised $2.5 billion in March with sustainability sukuk, which can finance projects including renewable energy. IsDB also sold $1.5 billion in sukuk in June last year.
#UAE economy to grow at 4.9% in 2022 - IIF | ZAWYA MENA Edition
UAE economy to grow at 4.9% in 2022 - IIF | ZAWYA MENA Edition
The UAE economy is rebounding from its deepest downturn in decades as oil prices recover and the country’s accelerated vaccination policy has allowed a broad-based reopening of sectors.
In a report on MENA economies, the Institute of International Finance (IIF) said it expects the real GDP growth to pick up to 2.2 percent in 2021 and 4.9 percent in 2022.
In September the UAE Central Bank had forecast the economy will grow 2.1 percent this year and 4.2 percent in 2022.
“The recovery is supported by one of the highest vaccination rates in the world, recovery in oil production, rebound in tourism, activities related to the rescheduled Expo 2020 in Dubai, and the September strategic vision to stimulate the economy,” said Garbis Iradian, Chief Economist, IIF.
The UAE economy is rebounding from its deepest downturn in decades as oil prices recover and the country’s accelerated vaccination policy has allowed a broad-based reopening of sectors.
In a report on MENA economies, the Institute of International Finance (IIF) said it expects the real GDP growth to pick up to 2.2 percent in 2021 and 4.9 percent in 2022.
In September the UAE Central Bank had forecast the economy will grow 2.1 percent this year and 4.2 percent in 2022.
“The recovery is supported by one of the highest vaccination rates in the world, recovery in oil production, rebound in tourism, activities related to the rescheduled Expo 2020 in Dubai, and the September strategic vision to stimulate the economy,” said Garbis Iradian, Chief Economist, IIF.
OPEC trims 2021 demand forecast but says gas price surge could help | Reuters
OPEC trims 2021 demand forecast but says gas price surge could help | Reuters
OPEC has trimmed its world oil demand growth forecast for 2021 while maintaining its 2022 view, its monthly report showed on Wednesday, but it said surging natural gas prices could boost demand for oil products as end users switch.
The Organization of the Petroleum Exporting Countries (OPEC) now expects oil demand to grow by 5.82 million barrels per day, down from 5.96 million bpd in its previous forecast, saying that the downward revision was mainly driven by data for the first three quarters of the year.
It maintained a growth forecast of 4.2 million bpd for next year.
The group of oil-producing countries said, however, that natural gas prices at record highs could provide a potential headwind to oil demand growth as industrial users switch to oil products instead.
OPEC has trimmed its world oil demand growth forecast for 2021 while maintaining its 2022 view, its monthly report showed on Wednesday, but it said surging natural gas prices could boost demand for oil products as end users switch.
The Organization of the Petroleum Exporting Countries (OPEC) now expects oil demand to grow by 5.82 million barrels per day, down from 5.96 million bpd in its previous forecast, saying that the downward revision was mainly driven by data for the first three quarters of the year.
It maintained a growth forecast of 4.2 million bpd for next year.
The group of oil-producing countries said, however, that natural gas prices at record highs could provide a potential headwind to oil demand growth as industrial users switch to oil products instead.
Oil falls on fears faltering economic growth to hit demand | Reuters
Oil falls on fears faltering economic growth to hit demand | Reuters
Oil prices edged down on Wednesday as expectations grew that oil demand growth will fall as inflation and supply chain issues strain major economies, though surging prices for power generation fuel limited losses.
Brent crude futures fell 58 cents, or 0.7%, to $82.84 a barrel at 1220 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 48 cents or 0.6% to $80.16 a barrel.
Weighing on prices, China, the world's biggest crude importer, released data showing September imports fell 15% from a year earlier. read more
China, along with Europe and India, remains mired in coal and natural gas shortages that have pushed up prices for the fuels burned for electricity generation and are leading to oil products being used as a substitute.
Oil prices edged down on Wednesday as expectations grew that oil demand growth will fall as inflation and supply chain issues strain major economies, though surging prices for power generation fuel limited losses.
Brent crude futures fell 58 cents, or 0.7%, to $82.84 a barrel at 1220 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 48 cents or 0.6% to $80.16 a barrel.
Weighing on prices, China, the world's biggest crude importer, released data showing September imports fell 15% from a year earlier. read more
China, along with Europe and India, remains mired in coal and natural gas shortages that have pushed up prices for the fuels burned for electricity generation and are leading to oil products being used as a substitute.
MIDEAST STOCKS #Saudi outperforms major Gulf bourses after IMF forecast | Reuters
MIDEAST STOCKS Saudi outperforms major Gulf bourses after IMF forecast | Reuters
Most major stock markets in the Gulf were little changed on Wednesday, amid inflation fears, while the Saudi index outperformed the region after the International Monetary Fund raised its economic growth forecast.
Investors are worried about the economic slowdown and inflation, which is proving less temporary and could entail central banks to take action earlier than expected, said Wael Makarem, senior market strategist at Exness.
"Inflation fears are further fueled by the strong energy prices which could endanger the economic revival."
Saudi Arabia's benchmark index (.TASI) gained 0.7%, with petrochemical maker Saudi Basic Industries (2010.SE) rising 2.8% and Saudi Arabian Mining Company (1211.SE) advancing 3.6%.
The IMF raised Saudi Arabia's economic growth forecast on Tuesday, to 2.8% this year from a prior outlook of 2.4%.
Dubai's main share index (.DFMGI) reversed early losses to inch 0.1% higher, helped by a 0.8% gain in blue-chip developer Emaar Properties (EMAR.DU).
On Wednesday, the chairman of Dubai ports giant DP World said there is no end in sight to the shortage of shipping containers, port congestion and sky rocketing freight rates that have rattled global trade. read more
In Abu Dhabi, the index (.ADI) finished flat, as gains in financial shares were offset by declines industrial stocks.
Abu Dhabi's Supreme Council for Financial and Economic Affairs on Tuesday launched a 5 billion dirham ($1.4 billion) IPO fund to strengthen the Abu Dhabi Securities Exchange (ADX) as a leading stock market, the emirate's media office said in a tweet. read more
Abu Dhabi is trying to attract outside investors into its companies, similar to Saudi Arabia, which is also seeing a slew of listings this year.
The Qatari benchmark (.QSI) added 0.1%, with petrochemical maker Industries Qatar (IQCD.QA) rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 0.9%, with Fawry for Banking Technology and Electronic Payment (FWRY.CA) jumped more than 6% after it invested in Sudanese classfieds and marketplace place alsoug.com.
Most major stock markets in the Gulf were little changed on Wednesday, amid inflation fears, while the Saudi index outperformed the region after the International Monetary Fund raised its economic growth forecast.
Investors are worried about the economic slowdown and inflation, which is proving less temporary and could entail central banks to take action earlier than expected, said Wael Makarem, senior market strategist at Exness.
"Inflation fears are further fueled by the strong energy prices which could endanger the economic revival."
Saudi Arabia's benchmark index (.TASI) gained 0.7%, with petrochemical maker Saudi Basic Industries (2010.SE) rising 2.8% and Saudi Arabian Mining Company (1211.SE) advancing 3.6%.
The IMF raised Saudi Arabia's economic growth forecast on Tuesday, to 2.8% this year from a prior outlook of 2.4%.
Dubai's main share index (.DFMGI) reversed early losses to inch 0.1% higher, helped by a 0.8% gain in blue-chip developer Emaar Properties (EMAR.DU).
On Wednesday, the chairman of Dubai ports giant DP World said there is no end in sight to the shortage of shipping containers, port congestion and sky rocketing freight rates that have rattled global trade. read more
In Abu Dhabi, the index (.ADI) finished flat, as gains in financial shares were offset by declines industrial stocks.
Abu Dhabi's Supreme Council for Financial and Economic Affairs on Tuesday launched a 5 billion dirham ($1.4 billion) IPO fund to strengthen the Abu Dhabi Securities Exchange (ADX) as a leading stock market, the emirate's media office said in a tweet. read more
Abu Dhabi is trying to attract outside investors into its companies, similar to Saudi Arabia, which is also seeing a slew of listings this year.
The Qatari benchmark (.QSI) added 0.1%, with petrochemical maker Industries Qatar (IQCD.QA) rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 0.9%, with Fawry for Banking Technology and Electronic Payment (FWRY.CA) jumped more than 6% after it invested in Sudanese classfieds and marketplace place alsoug.com.
More #UAE dollar bonds expected next year, local currency issues to follow | Reuters
More UAE dollar bonds expected next year, local currency issues to follow | Reuters
The United Arab Emirates federal government will be in the market next year for more dollar bond issuances and is working on plans to issue local currency debt, a finance ministry official said on Wednesday.
The UAE made its debt capital markets debut a week ago to raise $4 billion. The UAE government had never issued bonds before but several of the seven emirates have, most notably the capital Abu Dhabi and commerce hub Dubai.
Individual emirates will remain free to issue debt according to their own needs and priorities, said Younis Al Khoori, the undersecretary of the Ministry of Finance.
Local currency bonds will be issued "in due time" and no specific date has yet been set for the next dollar issuance, Khoori said.
The United Arab Emirates federal government will be in the market next year for more dollar bond issuances and is working on plans to issue local currency debt, a finance ministry official said on Wednesday.
The UAE made its debt capital markets debut a week ago to raise $4 billion. The UAE government had never issued bonds before but several of the seven emirates have, most notably the capital Abu Dhabi and commerce hub Dubai.
Individual emirates will remain free to issue debt according to their own needs and priorities, said Younis Al Khoori, the undersecretary of the Ministry of Finance.
Local currency bonds will be issued "in due time" and no specific date has yet been set for the next dollar issuance, Khoori said.
#AbuDhabi fund to invest in Tata Motors’ electric vehicles venture | Markets – Gulf News
Abu Dhabi fund to invest in Tata Motors’ electric vehicles venture | Markets – Gulf News
Tata Motors will invest over $2 billion in its electric vehicle (EV) business over the next five years, a company executive said on Tuesday, after the Indian automaker announced it had raised funds from private equity firm TPG.
Earlier, Tata Motors said TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company’s EV business for which it would form a separate unit.
TPG and ADQ would hold between 11 per cent and 15 per cent in the new EV entity, valuing it at about $9.1 billion, Tata said. The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.
“The aim is to lead the EV charge in the market,” Shailesh Chandra, head of Tata Motors’ passenger vehicles business told reporters, adding that to achieve its goals the company will work with investors who are focussed on a “carbon free world.” Shares in the Indian automaker, which owns British luxury brand Jaguar Land Rover, rose nearly 20 per cent in Wednesday morning trade to its highest level since February 2017.
Tata Motors will invest over $2 billion in its electric vehicle (EV) business over the next five years, a company executive said on Tuesday, after the Indian automaker announced it had raised funds from private equity firm TPG.
Earlier, Tata Motors said TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company’s EV business for which it would form a separate unit.
TPG and ADQ would hold between 11 per cent and 15 per cent in the new EV entity, valuing it at about $9.1 billion, Tata said. The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.
“The aim is to lead the EV charge in the market,” Shailesh Chandra, head of Tata Motors’ passenger vehicles business told reporters, adding that to achieve its goals the company will work with investors who are focussed on a “carbon free world.” Shares in the Indian automaker, which owns British luxury brand Jaguar Land Rover, rose nearly 20 per cent in Wednesday morning trade to its highest level since February 2017.
Etihad Airways secures $1.2bn in a sustainability-linked loan tied to ESG goals
Etihad Airways secures $1.2bn in a sustainability-linked loan tied to ESG goals
Etihad Airways raised $1.2 billion in a loan tied to environmental, social and governance (ESG) goals, marking its third sustainable financing transaction after the airline pledged in 2020 to reach net-zero carbon emissions by 2050.
The structure of the loan, which was closed on October 1, includes a $500 million four-year tranche and a $700m five-year tranche, Adam Boukadida, chief financial officer of Etihad Aviation Group, told The National.
"This will be by far the biggest of three green transactions that we've done over the last three years and is the first ESG-linked loan for Etihad and for aviation globally," he said. "It's a sizable transaction and sustainable financing is very much part our finance DNA and a key part of our strategy now and in the future."
The transaction is the largest sustainable financing in the airline’s history and follows two aviation financing deals – a $600m sustainability-linked transition sukuk in 2020 and a loan tied to the UN Sustainable Development Goals in 2019.
Etihad Airways raised $1.2 billion in a loan tied to environmental, social and governance (ESG) goals, marking its third sustainable financing transaction after the airline pledged in 2020 to reach net-zero carbon emissions by 2050.
The structure of the loan, which was closed on October 1, includes a $500 million four-year tranche and a $700m five-year tranche, Adam Boukadida, chief financial officer of Etihad Aviation Group, told The National.
"This will be by far the biggest of three green transactions that we've done over the last three years and is the first ESG-linked loan for Etihad and for aviation globally," he said. "It's a sizable transaction and sustainable financing is very much part our finance DNA and a key part of our strategy now and in the future."
The transaction is the largest sustainable financing in the airline’s history and follows two aviation financing deals – a $600m sustainability-linked transition sukuk in 2020 and a loan tied to the UN Sustainable Development Goals in 2019.
Fertiglobe IPO price range implies equity value of up to $6 bln | Reuters
Fertiglobe IPO price range implies equity value of up to $6 bln | Reuters
Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI (OCI.AS), on Wednesday set the price range for its initial public offering, implying an equity valuation for the company of $5.5 billion to $6 billion.
The maker of fertilisers and clean ammonia products also said in a statement it had secured Inclusive Capital Partners, Abu Dhabi Pension Fund and Singapore sovereign wealth fund GIC as cornerstone investors.
It said it intends to bring Jeffrey Ubben, a well-known activist hedge fund manager, on to the Fertiglobe board of directors after the listing.
Ubben, who grew ValueAct Capital into one of the world’s most powerful activist hedge funds, also co-founded Inclusive Capital Partners, a socially and environmentally conscious fund.
Existing shareholders will sell a 13.8% stake in the IPO at an indicative price range of 2.45 to 2.65 dirhams per share.
After the listing, OCI will own 50% plus one share and ADNOC will hold a 36.2% stake.
Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI (OCI.AS), on Wednesday set the price range for its initial public offering, implying an equity valuation for the company of $5.5 billion to $6 billion.
The maker of fertilisers and clean ammonia products also said in a statement it had secured Inclusive Capital Partners, Abu Dhabi Pension Fund and Singapore sovereign wealth fund GIC as cornerstone investors.
It said it intends to bring Jeffrey Ubben, a well-known activist hedge fund manager, on to the Fertiglobe board of directors after the listing.
Ubben, who grew ValueAct Capital into one of the world’s most powerful activist hedge funds, also co-founded Inclusive Capital Partners, a socially and environmentally conscious fund.
Existing shareholders will sell a 13.8% stake in the IPO at an indicative price range of 2.45 to 2.65 dirhams per share.
After the listing, OCI will own 50% plus one share and ADNOC will hold a 36.2% stake.
Oil falls on concerns of faltering economic growth to hit demand | Reuters
Oil falls on concerns of faltering economic growth to hit demand | Reuters
Oil prices edged down on Wednesday on concerns that oil demand growth will fall as major economies suffer through inflation and supply chain issues though surging prices for power generation fuel such as coal and natural gas limited losses.
Brent crude futures fell 5 cents, or 0.1%, to $83.37 a barrel at 0622 GMT, extending a 23-cent loss on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures fell 6 cents to $80.58 a barrel after gaining 12 cents on Tuesday.
Both contracts pared losses after falling as much as 70 cents earlier when China, the world's biggest crude importer, released data showing September imports fell 15% from a year earlier.
Oil prices edged down on Wednesday on concerns that oil demand growth will fall as major economies suffer through inflation and supply chain issues though surging prices for power generation fuel such as coal and natural gas limited losses.
Brent crude futures fell 5 cents, or 0.1%, to $83.37 a barrel at 0622 GMT, extending a 23-cent loss on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures fell 6 cents to $80.58 a barrel after gaining 12 cents on Tuesday.
Both contracts pared losses after falling as much as 70 cents earlier when China, the world's biggest crude importer, released data showing September imports fell 15% from a year earlier.
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