Oil dives, forecast of mild U.S. winter spurs retreat from multi-year highs | Reuters
Oil tumbled on Thursday as a forecast for a warm U.S. winter put the brakes on a rally that drove prices to a three-year high above $86 a barrel early in the session on tight supply and a global energy crunch.
Winter weather in much of the United States is expected to be warmer than average, according to a National Oceanic and Atmospheric Administration released Thursday morning.
"The report, indicating drier and warmer conditions across the southern and eastern U.S., is putting pressure on the complex," said Bob Yawger, director of energy futures at Mizuho.
Brent crude fell $1.21 to $84.61, after reaching a session high of $86.10, highest since October 2018. U.S. West Texas Intermediate crude settled down 92 cents to $82.50.
Prices had rallied on Wednesday when the U.S. Energy Information Administration reported tighter crude and fuel inventories, with crude stocks at the Cushing, Oklahoma storage hub falling to a three-year low.
Thursday 21 October 2021
Oil Declines by Most Since August Amid Global Growth Fears - Bloomberg
Oil Declines by Most Since August Amid Global Growth Fears - Bloomberg
PRICES
Futures in New York declined as much as 3.2% on Thursday after holding at the highest since 2014 this week. Technical indicators have signaled oil has been due for a pullback since earlier this month. Meanwhile, the resurgence of lockdowns in Eastern Europe and Russia due to rising coronavirus cases are threatening the global economic recovery that has buoyed commodities and energy markets.
The possibility of a winter with economic lockdowns worldwide complicates the bullish economic outlook, said Ed Moya, senior market analyst at Oanda Corp. “There’s been a little bit of loss of momentum and that’s the real pain of the global economy.”
PRICES
- West Texas Intermediate for December delivery fell $2.07 to $81.35 a barrel at 12:04 p.m. in New York
- Brent for December settlement dropped $1.96 to $83.86 a barrel
Futures in New York declined as much as 3.2% on Thursday after holding at the highest since 2014 this week. Technical indicators have signaled oil has been due for a pullback since earlier this month. Meanwhile, the resurgence of lockdowns in Eastern Europe and Russia due to rising coronavirus cases are threatening the global economic recovery that has buoyed commodities and energy markets.
The possibility of a winter with economic lockdowns worldwide complicates the bullish economic outlook, said Ed Moya, senior market analyst at Oanda Corp. “There’s been a little bit of loss of momentum and that’s the real pain of the global economy.”
#Saudi at its highest in over 15-years, #Qatar edges up | Reuters
Saudi at its highest in over 15-years, Qatar edges up | Reuters
Saudi Arabia's stock market ended higher on Thursday, to remain at its highest in over 15 years, amid strong oil prices, while the Qatari index registered its twelfth weekly gain in thirteen.
Investors remain optimistic in the region. Equities are buoyed by the good earnings season and the high level of energy prices, said Wael Makarem, senior market strategist at Exness.
"Additionally, the improved sanitary conditions should help the economy return to normal."
Saudi Arabia's benchmark index (.TASI) gained 0.3%, with Dr Sulaiman Al-Habib Medical Services Group (4013.SE) advancing 5.2% and Al Rajhi Bank (1120.SE) closing 0.6% higher.
Oil hit a three-year high above $86 a barrel driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.
Elsewhere, oil behemoth Saudi Aramco (2222.SE) added 0.5% after HSBC raised its target price to 38.8 riyals ($10.34) from 37.5 riyals earlier, nearing a $2 trillion valuation.
Economies in the six-member Gulf Cooperation Council (GCC) will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook. read more
All GCC economies are highly reliant on oil and gas exports and any disruption in energy prices due to geopolitical tension and a slowdown in the global economy could hurt the recovery.
Saudi Arabia, the Gulf's largest economy will see a 5.1% economic growth next year after a modest 2.3% expansion this year and a sharp 4.1% contraction last year, the poll showed.
In Qatar, the benchmark index (.QSI) edged 0.1% higher, supported by a 3.5% jump in Qatar Gas Transport (Nakilat) (QGTS.QA), rising for a seventh session in eight.
On Sunday, Nakilat, one of the world's largest shippers of liquefied natural gas, reported a net profit of 1 billion riyals for the nine months ended Sept. 30, up from 899.5 million riyals a year ago.
Elsewhere, developer United Development Co (UDCD.QA) added 0.4%, a day after it posted a strong net profit for the first nine-months of 2021.
** UAE, Egypt and Kuwait markets were closed for a public holiday.
Saudi Arabia's stock market ended higher on Thursday, to remain at its highest in over 15 years, amid strong oil prices, while the Qatari index registered its twelfth weekly gain in thirteen.
Investors remain optimistic in the region. Equities are buoyed by the good earnings season and the high level of energy prices, said Wael Makarem, senior market strategist at Exness.
"Additionally, the improved sanitary conditions should help the economy return to normal."
Saudi Arabia's benchmark index (.TASI) gained 0.3%, with Dr Sulaiman Al-Habib Medical Services Group (4013.SE) advancing 5.2% and Al Rajhi Bank (1120.SE) closing 0.6% higher.
Oil hit a three-year high above $86 a barrel driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.
Elsewhere, oil behemoth Saudi Aramco (2222.SE) added 0.5% after HSBC raised its target price to 38.8 riyals ($10.34) from 37.5 riyals earlier, nearing a $2 trillion valuation.
Economies in the six-member Gulf Cooperation Council (GCC) will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook. read more
All GCC economies are highly reliant on oil and gas exports and any disruption in energy prices due to geopolitical tension and a slowdown in the global economy could hurt the recovery.
Saudi Arabia, the Gulf's largest economy will see a 5.1% economic growth next year after a modest 2.3% expansion this year and a sharp 4.1% contraction last year, the poll showed.
In Qatar, the benchmark index (.QSI) edged 0.1% higher, supported by a 3.5% jump in Qatar Gas Transport (Nakilat) (QGTS.QA), rising for a seventh session in eight.
On Sunday, Nakilat, one of the world's largest shippers of liquefied natural gas, reported a net profit of 1 billion riyals for the nine months ended Sept. 30, up from 899.5 million riyals a year ago.
Elsewhere, developer United Development Co (UDCD.QA) added 0.4%, a day after it posted a strong net profit for the first nine-months of 2021.
** UAE, Egypt and Kuwait markets were closed for a public holiday.
UBS eyes Mideast expansion with new wealth desk in #Dubai -memo | Reuters
UBS eyes Mideast expansion with new wealth desk in Dubai -memo | Reuters
UBS (UBSG.S) will establish a new wealth desk in Dubai that will add coverage of Oman and Kuwait markets, and a dedicated sales team to capture business growth in the Middle East, according to an internal memo.
"The new desk will be in charge of markets onto which we will put increased focus out of this location going forward," said the note seen by Reuters.
Former Credit Suisse banker Georges El Khoury will be desk head in Dubai, with other members of the team including Abdul Latif, Ilyad Jundi and Sarika Chandwani, who will cover Kuwait, Oman and the United Arab Emirates.
Raoul Rahmem who worked at Barclays and Credit Suisse, will be head of DIFC sales, the note said. DIFC is the financial free zone in Dubai.
Ross MacMillan and Elan Bassier will be part of his team, the note said.
UBS earlier this year hired senior HSBC banker, Tarek Eido, as head of wealth management in Qatar as part of plans to open a wealth management office in Doha.
The number of millionaires in the Middle East region and their wealth grew last year, according to the World Wealth Report 2021 released by Capgemini Research Institute.
The population of high net worth individuals grew 6.8% to 0.8 million, while their wealth grew 10.7% to $3.2 trillion in 2020, the study showed.
UBS (UBSG.S) will establish a new wealth desk in Dubai that will add coverage of Oman and Kuwait markets, and a dedicated sales team to capture business growth in the Middle East, according to an internal memo.
"The new desk will be in charge of markets onto which we will put increased focus out of this location going forward," said the note seen by Reuters.
Former Credit Suisse banker Georges El Khoury will be desk head in Dubai, with other members of the team including Abdul Latif, Ilyad Jundi and Sarika Chandwani, who will cover Kuwait, Oman and the United Arab Emirates.
Raoul Rahmem who worked at Barclays and Credit Suisse, will be head of DIFC sales, the note said. DIFC is the financial free zone in Dubai.
Ross MacMillan and Elan Bassier will be part of his team, the note said.
UBS earlier this year hired senior HSBC banker, Tarek Eido, as head of wealth management in Qatar as part of plans to open a wealth management office in Doha.
The number of millionaires in the Middle East region and their wealth grew last year, according to the World Wealth Report 2021 released by Capgemini Research Institute.
The population of high net worth individuals grew 6.8% to 0.8 million, while their wealth grew 10.7% to $3.2 trillion in 2020, the study showed.
Oil hits multi-year high above $86, then pulls back | Reuters
Oil hits multi-year high above $86, then pulls back | Reuters
Oil hit a three-year high above $86 a barrel on Thursday driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.
Helping to drive the latest gain, a supply report from the U.S. Energy Information Administration on Wednesday showed crude and fuel inventories tightened, with crude inventories at the Cushing storage hub falling to a three-year low.
Brent crude rose as high as $86.10, the highest since October 2018, but by 1155 GMT was down 92 cents, or 1.1%, to $84.90. U.S. West Texas Intermediate crude fell 74 cents, or 0.9%, to $82.68.
"Traders who had set $86 as their selling threshold took the opportunity to already pocket some profit," said Louise Dickson of Rystad Energy. "Oil prices took a dive as a result."
Oil hit a three-year high above $86 a barrel on Thursday driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.
Helping to drive the latest gain, a supply report from the U.S. Energy Information Administration on Wednesday showed crude and fuel inventories tightened, with crude inventories at the Cushing storage hub falling to a three-year low.
Brent crude rose as high as $86.10, the highest since October 2018, but by 1155 GMT was down 92 cents, or 1.1%, to $84.90. U.S. West Texas Intermediate crude fell 74 cents, or 0.9%, to $82.68.
"Traders who had set $86 as their selling threshold took the opportunity to already pocket some profit," said Louise Dickson of Rystad Energy. "Oil prices took a dive as a result."
Meet #UAE Leader Sheikh Mohammed's New Royal Troubleshooter - Bloomberg ht @ghoshworld
Meet UAE Leader Sheikh Mohammed's New Royal Troubleshooter - Bloomberg
If you’re interested in the geopolitics of the Middle East, chances are you know Sheikh Tahnoon bin Zayed Al Nahyan as the national security advisor of the United Arab Emirates. In this role, he’s been pivotal to the country’s military operations in Yemen and Libya, and in its recent efforts to mend fences with regional rivals like Turkey, Qatar and Iran.
If you’re interested in the business of the Middle East, you may have heard of Sheikh Tahnoon as the chairman of International Holding Co. In this role, he heads the UAE’s second most-valuable listed company, with interests ranging from healthcare and real estate to IT and utilities — and a market capitalization north of $72 billion.
But the key to understanding Sheikh Tahnoon’s place in Middle Eastern affairs lies in his pedigree: His brother is the UAE’s de facto leader, Sheikh Mohammed Bin Zayed, widely known as MBZ, crown prince of Abu Dhabi, the most powerful of the seven emirates in the federation. They may be separated in age by 10 years, but the two men are joined at the hip as they steer their country through a period of economic, security and foreign-policy uncertainty.
The U.S., historically the protector of the UAE and other Gulf monarchies as well as a major trade partner, is disengaging from the region; Iran, their historical antagonist, is widening its influence. Economic competition within the Arabian Peninsula is growing sharper as countries pursue similar diversification goals to prepare for a future when hydrocarbons alone can no longer sustain their populations. Under MBZ, the UAE has punched above its weight in its neighborhood — both politically and economically — earning the nickname “Little Sparta” in American national-security circles. But the crown prince will need help to keep it that way.
If you’re interested in the geopolitics of the Middle East, chances are you know Sheikh Tahnoon bin Zayed Al Nahyan as the national security advisor of the United Arab Emirates. In this role, he’s been pivotal to the country’s military operations in Yemen and Libya, and in its recent efforts to mend fences with regional rivals like Turkey, Qatar and Iran.
If you’re interested in the business of the Middle East, you may have heard of Sheikh Tahnoon as the chairman of International Holding Co. In this role, he heads the UAE’s second most-valuable listed company, with interests ranging from healthcare and real estate to IT and utilities — and a market capitalization north of $72 billion.
But the key to understanding Sheikh Tahnoon’s place in Middle Eastern affairs lies in his pedigree: His brother is the UAE’s de facto leader, Sheikh Mohammed Bin Zayed, widely known as MBZ, crown prince of Abu Dhabi, the most powerful of the seven emirates in the federation. They may be separated in age by 10 years, but the two men are joined at the hip as they steer their country through a period of economic, security and foreign-policy uncertainty.
The U.S., historically the protector of the UAE and other Gulf monarchies as well as a major trade partner, is disengaging from the region; Iran, their historical antagonist, is widening its influence. Economic competition within the Arabian Peninsula is growing sharper as countries pursue similar diversification goals to prepare for a future when hydrocarbons alone can no longer sustain their populations. Under MBZ, the UAE has punched above its weight in its neighborhood — both politically and economically — earning the nickname “Little Sparta” in American national-security circles. But the crown prince will need help to keep it that way.
#SaudiArabia Keen to Turn Smaller Bourse Into Tech IPO Hub - Bloomberg
Saudi Arabia Keen to Turn Smaller Bourse Into Tech IPO Hub - Bloomberg
Saudi Arabia’s stock exchange is in talks with venture capital investors and technology firms in order to recast its small-cap market as a hub for the Middle East’s burgeoning startup industry, according to people familiar with the matter.
The kingdom seeks to encourage tech companies to raise money on the exchange’s smaller Nomu market instead of doing private funding rounds, the people said asking not to be identified as the information is private.
The Riyadh bourse, also known as Tadawul, doesn’t currently offer incentives to list on Nomu, but is telling some startups they could receive regulatory waivers to ease the listing process, the people said. The exchange is expected to continue to encourage firms in other industries to list on Nomu. Tadawul did not immediately respond to requests for comments.
When Nomu launched in 2017, it was intended to offer smaller firms an easier route to going public, with less restrictive listing rules and looser disclosure requirements than on the main market. Jahez International Company for Information Technology, a food-delivery firm, is set to be the first technology company to go through the process. The company hired the local unit of HSBC Holdings Plc as financial adviser for the share sale in May.
Saudi Arabia is keen to attract more tech investment, encouraging young entrepreneurs to start up their own businesses as a way to help create jobs and diversify the economy. It announced partnerships with firms including Apple Inc. and Google parent Alphabet Inc. to open training academies for software development and coding earlier this year.
SoftBank Group Corp. made its first investment in the kingdom in September, leading a $125 million financing round for customer communication platform Unifonic.
Saudi Arabia’s stock exchange is in talks with venture capital investors and technology firms in order to recast its small-cap market as a hub for the Middle East’s burgeoning startup industry, according to people familiar with the matter.
The kingdom seeks to encourage tech companies to raise money on the exchange’s smaller Nomu market instead of doing private funding rounds, the people said asking not to be identified as the information is private.
The Riyadh bourse, also known as Tadawul, doesn’t currently offer incentives to list on Nomu, but is telling some startups they could receive regulatory waivers to ease the listing process, the people said. The exchange is expected to continue to encourage firms in other industries to list on Nomu. Tadawul did not immediately respond to requests for comments.
When Nomu launched in 2017, it was intended to offer smaller firms an easier route to going public, with less restrictive listing rules and looser disclosure requirements than on the main market. Jahez International Company for Information Technology, a food-delivery firm, is set to be the first technology company to go through the process. The company hired the local unit of HSBC Holdings Plc as financial adviser for the share sale in May.
Saudi Arabia is keen to attract more tech investment, encouraging young entrepreneurs to start up their own businesses as a way to help create jobs and diversify the economy. It announced partnerships with firms including Apple Inc. and Google parent Alphabet Inc. to open training academies for software development and coding earlier this year.
SoftBank Group Corp. made its first investment in the kingdom in September, leading a $125 million financing round for customer communication platform Unifonic.
#Saudi holds at 15-year high, #Qatar extends gains | Reuters
Saudi holds at 15-year high, Qatar extends gains | Reuters
Saudi Arabia's stock market rose in early trade on Thursday, holding on to a 15-year high, while the Qatari index extended gains to a second session.
Saudi Arabia's benchmark index (.TASI) advanced 0.2%, with Al Rajhi Bank (1120.SE) rising 0.9%, while Dr Sulaiman Al-Habib Medical Services Group (4013.SE) leapt 3.3%.
Among other gainers, oil giant Saudi Aramco (2222.SE) added 0.2% after HSBC raised its target price to 38.8 riyals from 37.5 riyals earlier.
Economies in the six-member Gulf Cooperation Council (GCC) will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook. read more
All GCC economies are highly reliant on oil and gas exports and any disruption in energy prices due to geopolitical tension and a slowdown in the global economy could hurt the recovery.
Saudi will see 5.1% economic growth next year after a modest 2.3% expansion this year and a sharp 4.1% contraction last year.
In Qatar, the benchmark index (.QSI) gained 0.3%, led by a 3.9% leap in Qatar Gas Transport (Nakilat) (QGTS.QA), rising for a seventh session in eight.
On Sunday, Nakilat, one of the world's largest shippers of liquefied natural gas, reported a net profit of 1 billion riyals ($273.37 million) for the nine months ended Sept. 30, up from 899.5 million riyals year ago.
** UAE markets were closed for a public holiday
Saudi Arabia's stock market rose in early trade on Thursday, holding on to a 15-year high, while the Qatari index extended gains to a second session.
Saudi Arabia's benchmark index (.TASI) advanced 0.2%, with Al Rajhi Bank (1120.SE) rising 0.9%, while Dr Sulaiman Al-Habib Medical Services Group (4013.SE) leapt 3.3%.
Among other gainers, oil giant Saudi Aramco (2222.SE) added 0.2% after HSBC raised its target price to 38.8 riyals from 37.5 riyals earlier.
Economies in the six-member Gulf Cooperation Council (GCC) will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook. read more
All GCC economies are highly reliant on oil and gas exports and any disruption in energy prices due to geopolitical tension and a slowdown in the global economy could hurt the recovery.
Saudi will see 5.1% economic growth next year after a modest 2.3% expansion this year and a sharp 4.1% contraction last year.
In Qatar, the benchmark index (.QSI) gained 0.3%, led by a 3.9% leap in Qatar Gas Transport (Nakilat) (QGTS.QA), rising for a seventh session in eight.
On Sunday, Nakilat, one of the world's largest shippers of liquefied natural gas, reported a net profit of 1 billion riyals ($273.37 million) for the nine months ended Sept. 30, up from 899.5 million riyals year ago.
** UAE markets were closed for a public holiday
Gulf economies to pick up speed next year, with fall in oil prices biggest risk | Reuters
Gulf economies to pick up speed next year, with fall in oil prices biggest risk | Reuters
Economies in the six-member Gulf Cooperation Council will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook.
The oil-rich region will benefit from an increased COVID-19 vaccination rate, rising oil prices and easing of lockdown restrictions this year and next, the poll suggested.
But while these may lift short-term economic prospects, they are vulnerable to the region's high reliance on global oil demand amid an economic slowdown in China, the world's largest crude importer.
Still, the Oct. 8-20 Reuters poll of 21 economists forecast an improvement in the economic fortunes of most oil-exporting nations after they were battered by the pandemic and the record collapse in oil prices last year.
Economies in the six-member Gulf Cooperation Council will grow faster next year than previously thought, according to a Reuters poll of economists who warned a decline in oil and gas prices was the biggest risk to their outlook.
The oil-rich region will benefit from an increased COVID-19 vaccination rate, rising oil prices and easing of lockdown restrictions this year and next, the poll suggested.
But while these may lift short-term economic prospects, they are vulnerable to the region's high reliance on global oil demand amid an economic slowdown in China, the world's largest crude importer.
Still, the Oct. 8-20 Reuters poll of 21 economists forecast an improvement in the economic fortunes of most oil-exporting nations after they were battered by the pandemic and the record collapse in oil prices last year.
Oil falls as investors take profits, but fuel switching caps losses | Reuters
Oil falls as investors take profits, but fuel switching caps losses | Reuters
Oil prices fell on Thursday as some investors scooped up profits from the recent rally, though solid demand in the United States and a switch to fuel oil from coal and gas amid surging prices capped losses.
Brent crude futures fell 54 cents, or 0.6%, to $85.28 a barrel by 0649 GMT,turning down from earlier gains that took the benchmark to the highest since October 2018. It rose 0.9% the previous day.
U.S. West Texas Intermediate (WTI) crude futures for December dropped 33 cents, or 0.4%, to $83.09 a barrel. November WTI crude, which expired on Wednesday, settled up 91 cents, or 1.1%, after touching the highest since October 2014 earlier in the session.
"We saw some correction, but overall sentiment remained firm as there have been no large increases in output by the United States or OPEC," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
Oil prices fell on Thursday as some investors scooped up profits from the recent rally, though solid demand in the United States and a switch to fuel oil from coal and gas amid surging prices capped losses.
Brent crude futures fell 54 cents, or 0.6%, to $85.28 a barrel by 0649 GMT,turning down from earlier gains that took the benchmark to the highest since October 2018. It rose 0.9% the previous day.
U.S. West Texas Intermediate (WTI) crude futures for December dropped 33 cents, or 0.4%, to $83.09 a barrel. November WTI crude, which expired on Wednesday, settled up 91 cents, or 1.1%, after touching the highest since October 2014 earlier in the session.
"We saw some correction, but overall sentiment remained firm as there have been no large increases in output by the United States or OPEC," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
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