Oil benchmarks settle at highest since 2014 on short supply | Reuters
Oil prices edged up to their highest since 2014 on Tuesday, supported by a global supply shortage and strong demand in the United States, the world's biggest consumer.
The rally came ahead of U.S. inventory reports from the American Petroleum Institute (API), an industry group, on Tuesday and the U.S. Energy Information Administration on Wednesday.
Analysts expect the latest weekly U.S. oil inventory data to show a 1.9 million-barrel build in crude stocks.
Brent futures rose 41 cents, or 0.5%, to settle at $86.40 a barrel, while U.S. West Texas Intermediate (WTI) crude ended 89 cents, or 1.1%, higher at $84.65.
Those were the highest closes for both global benchmarks since October 2014.
Tuesday 26 October 2021
Oil edges up to new multi-year highs on short supply | Reuters
Oil edges up to new multi-year highs on short supply | Reuters
Oil prices edged up to fresh multi-year highs on Tuesday, supported by a global supply shortage and strong demand in the United States, the world's biggest consumer.
Brent futures rose 42 cents, or 0.5%, to $86.41 a barrel by 12:14 p.m. EDT (1614 GMT), while U.S. West Texas Intermediate (WTI) crude rose 95 cents, or 1.1%, to $84.71.
That puts both global benchmarks on track for their highest closes since October 2014.
"The energy crunch is still nowhere close to subsiding, so we expect prevailing strength in oil prices in November and December as supply lags demand and as OPEC+ stays on the sidelines," said Louise Dickson, senior oil markets analyst at Rystad Energy.
Oil prices edged up to fresh multi-year highs on Tuesday, supported by a global supply shortage and strong demand in the United States, the world's biggest consumer.
Brent futures rose 42 cents, or 0.5%, to $86.41 a barrel by 12:14 p.m. EDT (1614 GMT), while U.S. West Texas Intermediate (WTI) crude rose 95 cents, or 1.1%, to $84.71.
That puts both global benchmarks on track for their highest closes since October 2014.
"The energy crunch is still nowhere close to subsiding, so we expect prevailing strength in oil prices in November and December as supply lags demand and as OPEC+ stays on the sidelines," said Louise Dickson, senior oil markets analyst at Rystad Energy.
Mideast Stocks: #Qatar slides as banks weigh, Egypt gains ahead of central bank meet | ZAWYA MENA Edition
Mideast Stocks: Qatar slides as banks weigh, Egypt gains ahead of central bank meet | ZAWYA MENA Edition
Qatari stocks dropped sharply on Tuesday, dragged down by the financial sector after Fitch indicated a potential downgrade in domestic bank ratings, while Egyptian shares rose on hopes of interest rates remaining unchanged.
Fitch Ratings indicated on Monday it could cut the ratings of all banks in Qatar, saying it was concerned over the sector's increasing reliance on external funding and recent rapid growth in assets.
The index in Qatar dropped 1.1%, with most of the constituents closing in the red. Industries Qatar declined 2.3%, while Masraf Alrayan shed 1.9%.
Qatar National Bank and Qatar International Islamic Bank, which are among Fitch's potential downgrade list, fell 0.5% and 1.1%, respectively.
The Egyptian index closed 0.7%, led by a 7.6% jump in Fawry For Banking Technology And Electronic Payment.
All but one of 18 analysts polled by Reuters believed the Egyptian central bank would keep rates unchanged at a meeting on Thursday as it strives to attract portfolio investment while tamping down inflation.
The Egyptian stock market was in positive territory as investors remain optimistic regarding the market's potential, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's index lost 0.4%, with Al Rajhi Bank falling 0.6% and Dr Sulaiman Al-Habib Medical Services 4013.SE retreating 2.8%.
Brent crude, a key catalyst for the Gulf's financial stocks, was down 55 cents, or 0.6%, at $85.44 a barrel by 0922 GMT, but remained near multi-year highs, supported by a global supply shortage and strong demand in the United States. O/R
The Abu Dhabi index was down 0.4% as First Abu Dhabi Bank lost 0.7% and Emirates Telecommunications Group eased 0.5%.
The index in Dubai, closed flat as logistics firm Aramex dropped 3.4%, while Emirates NBD Bank added 0.7%.
Qatari stocks dropped sharply on Tuesday, dragged down by the financial sector after Fitch indicated a potential downgrade in domestic bank ratings, while Egyptian shares rose on hopes of interest rates remaining unchanged.
Fitch Ratings indicated on Monday it could cut the ratings of all banks in Qatar, saying it was concerned over the sector's increasing reliance on external funding and recent rapid growth in assets.
The index in Qatar dropped 1.1%, with most of the constituents closing in the red. Industries Qatar declined 2.3%, while Masraf Alrayan shed 1.9%.
Qatar National Bank and Qatar International Islamic Bank, which are among Fitch's potential downgrade list, fell 0.5% and 1.1%, respectively.
The Egyptian index closed 0.7%, led by a 7.6% jump in Fawry For Banking Technology And Electronic Payment.
All but one of 18 analysts polled by Reuters believed the Egyptian central bank would keep rates unchanged at a meeting on Thursday as it strives to attract portfolio investment while tamping down inflation.
The Egyptian stock market was in positive territory as investors remain optimistic regarding the market's potential, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's index lost 0.4%, with Al Rajhi Bank falling 0.6% and Dr Sulaiman Al-Habib Medical Services 4013.SE retreating 2.8%.
Brent crude, a key catalyst for the Gulf's financial stocks, was down 55 cents, or 0.6%, at $85.44 a barrel by 0922 GMT, but remained near multi-year highs, supported by a global supply shortage and strong demand in the United States. O/R
The Abu Dhabi index was down 0.4% as First Abu Dhabi Bank lost 0.7% and Emirates Telecommunications Group eased 0.5%.
The index in Dubai, closed flat as logistics firm Aramex dropped 3.4%, while Emirates NBD Bank added 0.7%.
Column: OPEC+ comfortable with rising price trend | Reuters
Column: OPEC+ comfortable with rising price trend | Reuters
Rejecting calls from consuming countries for faster output increases, OPEC+ has warned about continuing risks posed by the coronavirus pandemic and a forecast rise in oil inventories next year.
OPEC+ is currently raising its production target by 0.4 million barrels per day (bpd) each month, but has pushed back against calls to increase output faster in response to the surge in prices.
"We don't take things for granted, we still have COVID," Saudi Arabia's energy minister and de facto leader of the OPEC+ group of major oil exporters said in a television interview on Saturday.
"We are not yet out of the woods," he said. "We need to be careful. The crisis is contained but is not necessarily over."
Rejecting calls from consuming countries for faster output increases, OPEC+ has warned about continuing risks posed by the coronavirus pandemic and a forecast rise in oil inventories next year.
OPEC+ is currently raising its production target by 0.4 million barrels per day (bpd) each month, but has pushed back against calls to increase output faster in response to the surge in prices.
"We don't take things for granted, we still have COVID," Saudi Arabia's energy minister and de facto leader of the OPEC+ group of major oil exporters said in a television interview on Saturday.
"We are not yet out of the woods," he said. "We need to be careful. The crisis is contained but is not necessarily over."
Oil prices edge towards new highs on short supply | Reuters
Oil prices edge towards new highs on short supply | Reuters
Oil prices edged towards new multi-year highs on Tuesday, supported by a global supply shortage and strong demand in the United States, the world's biggest consumer.
Brent crude was flat at $86 a barrel by 1309 GMT. U.S. oil was up 20 cents, or 0.7%, to $83.96.
Goldman Sachs said Brent was likely to push above its year-end forecast of $90 a barrel, while Larry Fink, chief executive of the world's largest asset manager BlackRock, said there was a high probability of oil reaching $100. read more
"The fact that the market remains tight should drive prices up," said Commerzbank analyst Carsten Fritsch.
Oil prices edged towards new multi-year highs on Tuesday, supported by a global supply shortage and strong demand in the United States, the world's biggest consumer.
Brent crude was flat at $86 a barrel by 1309 GMT. U.S. oil was up 20 cents, or 0.7%, to $83.96.
Goldman Sachs said Brent was likely to push above its year-end forecast of $90 a barrel, while Larry Fink, chief executive of the world's largest asset manager BlackRock, said there was a high probability of oil reaching $100. read more
"The fact that the market remains tight should drive prices up," said Commerzbank analyst Carsten Fritsch.
Aramco Warns World’s Spare Oil Supplies Are Falling Rapidly - Bloomberg
Aramco Warns World’s Spare Oil Supplies Are Falling Rapidly - Bloomberg
Saudi Aramco said oil-output capacity across the world is dropping quickly and companies need to invest more in production.
It’s a “huge concern,” Chief Executive Officer Amin Nasser said in an interview in Riyadh, Saudi Arabia’s capital. “The spare capacity is shrinking.”
His comments come with crude prices having soared 70% this year to around $85 a barrel. Many major consumers, including the U.S., Japan and India, have called on producers to pump more.
The supply deficit in oil markets could worsen in 2022 if the coronavirus pandemic eases and more people fly, he said.
Saudi Aramco said oil-output capacity across the world is dropping quickly and companies need to invest more in production.
It’s a “huge concern,” Chief Executive Officer Amin Nasser said in an interview in Riyadh, Saudi Arabia’s capital. “The spare capacity is shrinking.”
His comments come with crude prices having soared 70% this year to around $85 a barrel. Many major consumers, including the U.S., Japan and India, have called on producers to pump more.
The supply deficit in oil markets could worsen in 2022 if the coronavirus pandemic eases and more people fly, he said.
#Saudi Sees World Oil-Supply Capacity ‘Huge Concern’: FII Update - Bloomberg
Saudi Sees World Oil-Supply Capacity ‘Huge Concern’: FII Update - Bloomberg
Saudi Aramco said oil-output capacity across the world was dropping quickly and companies need to invest more in production as the kingdom opened the fifth edition of its flagship investment conference on Tuesday.
Aramco’s Chief Executive Officer Amin Nasser made the remarks in an interview on the sidelines of the conference, which marks a return to business for the world’s largest oil exporter after the pandemic disrupted last year’s event.
“The spare capacity is shrinking,” Nasser told Bloomberg. It’s a “huge concern.”
Rising energy prices as the global economy recovers from the pandemic topped concerns among executives and policymakers gathered at this year’s Future Investment Initiative. Global supply chain glitches and the costs, more broadly, of shifting toward sustainable energy sources mean inflation has become a key challenge.
Saudi Aramco said oil-output capacity across the world was dropping quickly and companies need to invest more in production as the kingdom opened the fifth edition of its flagship investment conference on Tuesday.
Aramco’s Chief Executive Officer Amin Nasser made the remarks in an interview on the sidelines of the conference, which marks a return to business for the world’s largest oil exporter after the pandemic disrupted last year’s event.
“The spare capacity is shrinking,” Nasser told Bloomberg. It’s a “huge concern.”
Rising energy prices as the global economy recovers from the pandemic topped concerns among executives and policymakers gathered at this year’s Future Investment Initiative. Global supply chain glitches and the costs, more broadly, of shifting toward sustainable energy sources mean inflation has become a key challenge.
Major Gulf markets mixed in early trade, banks weigh on Qatar | Reuters
Major Gulf markets mixed in early trade, banks weigh on Qatar | Reuters
Major Gulf stock markets were mixed in early trade on Tuesday, as a potential downgrade in ratings of Qatari banks by Fitch sent the index lower, while corporate earnings supported Saudi stocks.
Credit ratings agency Fitch Ratings indicated on Monday it could cut the ratings of all banks in Qatar, saying it was concerned over the sector's increasing reliance on external funding and a recent rapid growth in assets. read more
The index in Qatar (.QSI) fell 0.4% with banks weighing the most on the index following Fitch's statement.
Gulf's largest lender Qatar National Bank (QNBK.QA) and Commercial Bank (COMB.QA), which are among Fitch's potential downgrade list, dropped 1.7% and 1.5%, respectively.
A 7% rise in nine-month profits of Qatar International Islamic Bank (QIIB.QA) could not defy Fitch's stand on the lender as it fell as much as 0.8%.
In Saudi Arabia, the benchmark index (.TASI) was up 0.2%, with Al Rajhi Bank (1120.SE) rising 0.7%.
Saudi Arabian Mining (Ma'aden) (1211.SE) advanced 1.2% a day after it reported a massive jump in quarterly profit which the miner attributed to a higher average realized sales prices of products except the gold.
Herfy Food Services (6002.SE) jumped nearly 10% to be the top percentage gainer on the index as the operator of fast-food restaurants posted about 45% increased in quarterly profit.
The Abu Dhabi index was flat with Alpha Dhabi Holding (ALPHADHABI.AD) declining 1.5% and Emirates Telecommunications Group (ETISALAT.AD) gaining 0.4% Abu Dhabi flat with AlphaDhabi falling 1.5% and Etisalat gaining 0.4%.
The index in Dubai (.DFMGI) was down 0.2% as Emirates Integrated Telecommunications Company (DU.DU) dipped 2.7%.
Major Gulf stock markets were mixed in early trade on Tuesday, as a potential downgrade in ratings of Qatari banks by Fitch sent the index lower, while corporate earnings supported Saudi stocks.
Credit ratings agency Fitch Ratings indicated on Monday it could cut the ratings of all banks in Qatar, saying it was concerned over the sector's increasing reliance on external funding and a recent rapid growth in assets. read more
The index in Qatar (.QSI) fell 0.4% with banks weighing the most on the index following Fitch's statement.
Gulf's largest lender Qatar National Bank (QNBK.QA) and Commercial Bank (COMB.QA), which are among Fitch's potential downgrade list, dropped 1.7% and 1.5%, respectively.
A 7% rise in nine-month profits of Qatar International Islamic Bank (QIIB.QA) could not defy Fitch's stand on the lender as it fell as much as 0.8%.
In Saudi Arabia, the benchmark index (.TASI) was up 0.2%, with Al Rajhi Bank (1120.SE) rising 0.7%.
Saudi Arabian Mining (Ma'aden) (1211.SE) advanced 1.2% a day after it reported a massive jump in quarterly profit which the miner attributed to a higher average realized sales prices of products except the gold.
Herfy Food Services (6002.SE) jumped nearly 10% to be the top percentage gainer on the index as the operator of fast-food restaurants posted about 45% increased in quarterly profit.
The Abu Dhabi index was flat with Alpha Dhabi Holding (ALPHADHABI.AD) declining 1.5% and Emirates Telecommunications Group (ETISALAT.AD) gaining 0.4% Abu Dhabi flat with AlphaDhabi falling 1.5% and Etisalat gaining 0.4%.
The index in Dubai (.DFMGI) was down 0.2% as Emirates Integrated Telecommunications Company (DU.DU) dipped 2.7%.
High probability of oil reaching $100/barrel, says Blackrock CEO Fink | Reuters
High probability of oil reaching $100/barrel, says Blackrock CEO Fink | Reuters
Larry Fink, chief executive of the world's largest asset manager BlackRock, said on Tuesday that there is a high probability of oil reaching $100 a barrel.
Fink, who was speaking at the Future Investment Initiative conference in Saudi Arabia, also called for more collaboration between the public and private sectors to tackle global challenges such as climate change.
Brent crude was down 28 cents at $85.71 a barrel by 0757 GMT, reversing gains from earlier in the day but still close to multi-year highs.
Larry Fink, chief executive of the world's largest asset manager BlackRock, said on Tuesday that there is a high probability of oil reaching $100 a barrel.
Fink, who was speaking at the Future Investment Initiative conference in Saudi Arabia, also called for more collaboration between the public and private sectors to tackle global challenges such as climate change.
Brent crude was down 28 cents at $85.71 a barrel by 0757 GMT, reversing gains from earlier in the day but still close to multi-year highs.
Ports giant DP World expects container volume growth to moderate in Q4 | Reuters
Ports giant DP World expects container volume growth to moderate in Q4 | Reuters
Dubai ports giant DP World said on Tuesday it expected growth in shipping freight container volumes to moderate in the next quarter after volumes handled rose 8.1% in the third quarter.
Global supply chain disruptions due to pandemic-driven lockdowns and an unexpectedly rapid recovery in trade have led to a shortage of shipping containers, congestion in ports and sky-rocketing freight rates.
"The near-term outlook remains positive, but we do expect growth rates to moderate in the final quarter," DP World Chairman Sultan Ahmed bin Sulayem said in a statement, citing COVID-19, supply chain constraints and geopolitical uncertainty.
DP World, which operates over 90 terminals across six continents, said it handled 19.8 million shipping containers in the third quarter, while volumes rose 11.9% to 58.4 million containers in the first nine months of the year.
Dubai ports giant DP World said on Tuesday it expected growth in shipping freight container volumes to moderate in the next quarter after volumes handled rose 8.1% in the third quarter.
Global supply chain disruptions due to pandemic-driven lockdowns and an unexpectedly rapid recovery in trade have led to a shortage of shipping containers, congestion in ports and sky-rocketing freight rates.
"The near-term outlook remains positive, but we do expect growth rates to moderate in the final quarter," DP World Chairman Sultan Ahmed bin Sulayem said in a statement, citing COVID-19, supply chain constraints and geopolitical uncertainty.
DP World, which operates over 90 terminals across six continents, said it handled 19.8 million shipping containers in the third quarter, while volumes rose 11.9% to 58.4 million containers in the first nine months of the year.
Oil drops ahead of stocks data, Iran talks | Reuters
Oil drops ahead of stocks data, Iran talks | Reuters
Oil prices edged lower on Tuesday after rising earlier in the dayand analysts said prices were set to sustain a rally driven by strong demand in the United States, the world's biggest consumer of oil and its products.
Brent crude was down 5 cents at $85.94 a barrel by 0631 GMT, after gaining 0.5% on Monday. U.S. oil dropped 12 cents to $83.64 a barrel, having finished unchanged the previous session after testing new highs.
While China's red-hot power and coal markets have cooled somewhat after government intervention, energy prices remain elevated worldwide as temperatures fall with the onset of the northern winter. read more
"Forecasts for a colder November have energy traders bracing for a very tight market that will be met (with) unprecedented demand this winter," OANDA senior market analysts Edward Moya said in a note.
Oil prices edged lower on Tuesday after rising earlier in the dayand analysts said prices were set to sustain a rally driven by strong demand in the United States, the world's biggest consumer of oil and its products.
Brent crude was down 5 cents at $85.94 a barrel by 0631 GMT, after gaining 0.5% on Monday. U.S. oil dropped 12 cents to $83.64 a barrel, having finished unchanged the previous session after testing new highs.
While China's red-hot power and coal markets have cooled somewhat after government intervention, energy prices remain elevated worldwide as temperatures fall with the onset of the northern winter. read more
"Forecasts for a colder November have energy traders bracing for a very tight market that will be met (with) unprecedented demand this winter," OANDA senior market analysts Edward Moya said in a note.
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