Oil Eases as Investors Weigh U.S. Stockpiles, Iranian Outlook - Bloomberg

Oil Eases as Investors Weigh U.S. Stockpiles, Iranian Outlook - Bloomberg

PRICES:
West Texas Intermediate crude for December delivery rose 15 cents to settle at $82.81 a barrel in New York
Brent for December settlement fell 26 cents to settle at $84.32 a barrel

Oil eked out a gain with OPEC and its allies expecting a tighter global oil market in the fourth quarter.

Futures in New York closed higher by 0.2% on Thursday, erasing earlier losses. World oil inventories will decline by an average of 1.1 million barrels a day in the fourth quarter, according to a person familiar with preliminary figures evaluated by the OPEC+ Joint Technical Committee. That compares with a forecast reduction of 670,000 barrels a day. Fuel demand will be slightly higher and supply from outside OPEC+ a little lower than previously anticipated, the data show.

Meanwhile, stockpiles at the biggest U.S. storage hub at Cushing, Oklahoma, continue to rapidly shrink. Supplies fell another 1.81 million barrels last week, according to traders citing Wood Mackenzie data.

#SaudiArabia in talks with automakers on plant plans, minister says | Reuters

Saudi Arabia in talks with automakers on plant plans, minister says | Reuters

Saudi Arabia is in talks with several carmakers about manufacturing in the country, Saudi Investment Minister Khalid al-Falih told Reuters, with an announcement expected this year.

The discussions are part of plans to attract foreign investment to support the transformation of Saudi Arabia's economy and diversify it away from oil.

"A car manufacturer will be announced before year-end, and following that there will be another one or two car manufacturers, and they will be cars of the future", Falih said.

Luxury electric car maker Lucid (LCID.O) is evaluating the opportunity for manufacturing in Saudi Arabia, but the company's board has to decide based on the economics and competitiveness of choosing the Saudi market, the minister said.

Oil hits two-week low on Iran talks resuming, U.S. crude build | Reuters

Oil hits two-week low on Iran talks resuming, U.S. crude build | Reuters

Oil prices fell about 1% to their lowest in two weeks on Thursday after Iran said talks with world powers on its nuclear programme would resume by the end of November and on rising U.S. crude inventories.

Brent crude was $1.06, or 1.2%, lower at $83.52 a barrel by 12:31 p.m ET (1631 GMT), having hit a two-week low of $82.32 earlier in the session and falling 2.1% on Wednesday.

U.S. West Texas Intermediate (WTI) crude fell 79 cents, or 0.9%, at $81.86, having earlier touched a two-week low of $80.58. The benchmark dropped 2.4% on Wednesday after weekly data showed U.S. crude stockpiles grew more than expected.

Iran's top nuclear negotiator Ali Bagheri Kani on Wednesday said the country's talks with six world powers to try to revive a 2015 nuclear deal will resume by the end of November.

GlobalFoundries shares open flat on Nasdaq debut, valuing chipmaker at $26 bln | Reuters

GlobalFoundries shares open flat on Nasdaq debut, valuing chipmaker at $26 bln | Reuters

Shares of GlobalFoundries Inc (GFS.O), which is owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co, opened flat on Nasdaq on Thursday, giving the chipmaker a market capitalization of about $26 billion.

GlobalFoundries priced its IPO, which is the third largest in the United States so far this year, at $47 a share. Only South Korean e-commerce giant Coupang and ride hailing company Didi Global have had larger stock market floats this year.

GlobalFoundries, which disclosed a 13% revenue growth for the six months ended June 30, has benefited from surging demand for chips, due to a global shortage that has forced automakers and other electronics firms to cut production.

Moreover, the IPO market in the U.S. has never been stronger, numerous other big names such as Coinbase Global Inc (COIN.O), Robinhood Markets Inc (HOOD.O) and gaming platform Roblox have already gone public this year. Electric-vehicle maker Rivian is also expected to list its shares in the coming weeks.

U.S. IPOs have raised an all-time record of over $250 billion so far this year, according to data from Dealogic.

EIG shortlisted as possible buyer for Aramco gas pipelines - sources | Reuters

EIG shortlisted as possible buyer for Aramco gas pipelines - sources | Reuters

U.S.-based energy investor EIG has been shortlisted as a potential buyer of Saudi Aramco's gas pipelines, part of a sale that could exceed $17 billion and is likely to be completed later this year, three sources familiar with the matter said.

Aramco (2222.SE) is looking to sell a significant minority stake in its gas pipelines, other sources have previously said.

In addition to EIG, private equity firms such Apollo could also be potential buyers, two of the sources said.

EIG, Aramco and Apollo did not immediately respond to requests from Reuters for comment.

Mideast Stocks: Major Gulf bourses end mixed; Egypt outperforms | ZAWYA MENA Edition

Mideast Stocks: Major Gulf bourses end mixed; Egypt outperforms | ZAWYA MENA Edition

Major stock markets in the Gulf ended mixed on Thursday, with the Saudi index extending losses, while the Egyptian bourse outperformed the region as investors await central bank's decision on interest rate.

Market sentiment remains mixed as the earnings season continues to produce good results while concerns about inflation levels cloud expectations, said Wael Makarem, senior market strategist at Exness.

Oil prices, a key catalyst for the Gulf's financial stocks, eased to their lowest in two weeks after official figures showed a surprise jump in U.S. inventories of crude, while rising cases of COVID-19 in Europe, Russia and some outbreaks in China dented hopes for a global economic recovery.

Saudi Arabia's benchmark index dropped 0.4%, dragged down by a 3% slide in Saudi Basic Industries Corp (SABIC) .

SABIC reported a net profit of 5.6 billion riyals ($1.49 billion), up from 1.1 billion riyals in the same period last year, but missed Refinitiv-compiled analysts' consensus estimate of 6.1 billion riyals.

Saudi Industrial Investment Group (SIIG) plunged 8.2%, a day after it reported a sharp decrease in earnings compared with the previous quarter.

Saudi Aramco finished flat, a day after it fetched a $2 trillion valuation. On Sunday, the oil giant is expected to report its earnings.

Egypt's blue-chip index advanced 1.3%, led by a 2% rise in Commercial International Bank.

Investors await the central bank's decision on interest rates and the market remains supported by strong fundamentals, said Makarem.

All but one of 18 analysts polled by Reuters believe the Egyptian central bank would keep rates unchanged at a meeting on Thursday.

The World Bank has approved a $360 million development policy financing loan to support Egypt's post-pandemic recovery.

The Qatari benchmark concluded 1.2% higher, ending two sessions of losses, buoyed by a 3.3% rebound in the Gulf's biggest lender Qatar National Bank.

Although, the Qatari index registered its first weekly loss in eight.

In Abu Dhabi, the index added 0.2%, with conglomerate International Holding Company (IHC) gaining 0.7%, after its subsidiary Al Seer Marine acquired two reefer ships and one bulk carrier.

First Abu Dhabi Bank the biggest lender in the United Arab Emirates, added 0.1%, despite a sharp rise in third-quarter net profit.

Dubai's main share index eased 0.1%, hit by a 0.7% fall in blue-chip developer Emaar Properties , while Dubai Financial Market declined 1%, as the listed bourse posted a third-quarter loss.

#Saudi Net Foreign Assets Rise to Highest This Year on Oil Prices - Bloomberg

Saudi Net Foreign Assets Rise to Highest This Year on Oil Prices - Bloomberg

Saudi Arabia’s net foreign assets rose in September to the highest level since late 2020 as oil prices averaged above $80 a barrel, boosting the kingdom’s finances.

The stockpile stood at 1.68 trillion riyals ($447.9 billion), a rise of around 2.5% compared to August, according to a monthly central bank report Thursday.

The kingdom’s assets suffered a steep decline last year amid the pandemic and a slump in crude prices. Saudi officials also attributed a record cumulative drop of more than $47 billion in March and April 2020 to a $40 billion transfer from the central bank to the sovereign wealth fund. It was meant to support investments abroad, taking advantage of market turmoil during the height of the pandemic.

The government expects its budget shortfall in 2022 to be around 1.6% of economic output, according to preliminary forecasts. It sees revenue reaching 903 billion riyals, 4.5% higher than a forecast last year, helped by soaring oil prices.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiaArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiaArabia #Qatar close

GlobalFoundries, Mubadala Raise $2.6 Billion in U.S. IPO - Bloomberg

GlobalFoundries, Mubadala Raise $2.6 Billion in U.S. IPO - Bloomberg

GlobalFoundries Inc. and major shareholder Mubadala Investment Co. raised almost $2.6 billion in an initial public offering, pricing the chipmaker’s shares at the top of a marketed range.

The company and Mubadala sold 55 million shares Wednesday for $47 each after marketing them for $42 to $47, according to a statement confirming an earlier report by Bloomberg News.

At $47 a share, GlobalFoundries has a market value of more than $25 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

The listing is the third biggest on a U.S. exchange this year, topped only by South Korean ecommerce firm Coupang Inc.’s $4.55 billion IPO and Chinese ride-hailing company DiDi Global Inc.’s $4.44 billion raise, according to data compiled by Bloomberg. That doesn’t include blank-check and similar companies.

#Saudi shares fall, major Gulf markets trade mixed | Reuters

Saudi shares fall, major Gulf markets trade mixed | Reuters

Saudi Arabia's stock market fell in early trade on Thursday, as oil prices retreated due to a spike in U.S. inventories and rising COVID-19 cases, while Abu Dhabi stocks were set to gain for a fourth week.

Brent crude dropped 94 cents, or 1.1%, to $83.64 a barrel by 0655 GMT, after official figures showed a surprise jump in U.S. inventories of crude, and rising cases of COVID-19 in Europe, Russia, and some outbreaks of infections in China dented hopes for an economic recovery.

Saudi Arabia's benchmark index (.TASI) fell 1.1%, weighed down by a 2.6% fall in Saudi Basic Industries Corp (SABIC) (2010.SE).

SABIC, the Gulf's largest petrochemical firm, reported a net profit of 5.6 billion riyals ($1.5 billion), up from 1.1 billion riyals in the same period last year, but missed Refinitiv-compiled analysts' consensus estimate of 6.1 billion riyals. read more

Among other losers, Saudi Industrial Investment Group (2250.SE) tumbled 8.4%, a day after it reported a sharp decrease in earnings compared with the previous quarter.

However, Leejam Sports (1830.SE) jumped 5%, following a rise in quarterly earnings.

In Abu Dhabi, the index (.ADI) gained 0.3%, with Emirates Telecommunications Group (ETISALAT.AD) advancing 1.3%, after it announced a partnership with Abu Dhabi Investment Office to enhance digital economy access for companies in Abu Dhabi.

First Abu Dhabi Bank (FAB.AD), the biggest lender in the United Arab Emirates, edged up 0.1% in a choppy trade, following a rise in third-quarter net profit. read more

UAE banks are witnessing a rebound in earnings after the economy was rattled by the pandemic in 2020, with FAB's investment banking business benefiting from increased deals flow in Abu Dhabi.

Dubai's main share index (.DFMGI) fell 0.3%, hit by a 0.4% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU)

The Qatari benchmark (.QSI) rose 0.7%, with most of the financial stocks in positive territory including Qatar National Bank (QNBK.QA) which rose 1.3%.

Billionaire Olayan Family May Revive Plans for #Saudi IPO - Bloomberg video

Billionaire Olayan Family May Revive Plans for Saudi IPO - Bloomberg

The Olayan family, which runs one of Saudi Arabia’s biggest conglomerates, may revive plans to take some of its companies public.

Olayan Financing Co. is considering an initial public offering of a holding company of about 25 units, Chief Executive Officer Nabeel Al-Amudi said in an interview with Bloomberg Television. It’s also weighing an IPO of some of its operating firms, he said in Riyadh on the sidelines of Saudi Arabia’s flagship investment forum.

“We are ready to roll,” Al-Amudi said. “Now the infrastructure is there.”

The Olayan family put its listing plans on hold in 2017 amid slow economic growth in the kingdom, Bloomberg reported at the time. Olayan had been working with Saudi Fransi Capital on the planned sale of the holding company, which may have been worth as much as $5 billion, people familiar with the matter said then.

IPO plans were “put back for various reasons including that the performance wasn’t where it needed to be,” said Al-Amudi, who was named CEO in May. “We’ve just seen a number of very successful IPOs in the Saudi market that we participated in as investors.”

Saudi Arabia, the Arab world’s largest economy, is witnessing a healthy rebound, the CEO said. The company is seeing an uptick in its consumables segment, he said. “It is not pre-pandemic levels in some of them but I think overall, we are quite happy with how things are progressing.”

Established in 1969, Olayan Financing controls the billionaire family’s investments in the Middle East. It’s the majority shareholder of Olayan Saudi Holding Co., whose portfolio includes companies in five sectors, according to its website.

#Qatar First Bank swings to $17mln net profit as AUM surges 140% | ZAWYA MENA Edition

Qatar First Bank swings to $17mln net profit as AUM surges 140% | ZAWYA MENA Edition

Corporate and investment banking firm Qatar First Bank (QFB) swung to a net profit in the first nine months of the year after a loss in 2020.

Net profit attributable to shareholders amounted to 62 million riyals ($17 million), compared to a loss of 227.9 million riyals in the same period last year. It is the bank’s highest nine-month profit recorded in any year since 2016, QFB said in a statement on Thursday.

Total income stood at 168 million riyals, compared to the negative total income of 82 million riyals in the previous year. Dividend income also jumped 322 percent year on year to 10 million riyals, driven mainly by the bank’s real estate investments and sukuk funds.

The bank said it has witnessed higher income from its investments in real estate and continued to reduce its expenses despite improving key financial indicators. Overall, the bank was able to cut its outgoings by 24 percent.

Its total real estate assets under management (AUM) grew by 140 percent to 3.9 billion riyals, following the acquisition of a multi-tenant office building in Dallas, Texas.

“QFB’s significant performance and strong financial results are a testament of the bank’s stability and resilience during the first three quarter of 2021 despite the challenging macroeconomic conditions,” said Sheikh Faisal bin Thani Al-Thani, chairman of QFB.

“The bank’s clear strategic direction, sourcing of profitable investments, and prudent risk management framework are behind the strong results.”

QFB is listed on the Qatar Stock Exchange and is the first independent Shariah-compliant bank authorised by the Qatar Financial Centre Regulatory Authority.

#UAE's FAB posts 54% surge in Q3 profit on higher non-interest income | Reuters

UAE's FAB posts 54% surge in Q3 profit on higher non-interest income | Reuters

First Abu Dhabi Bank (FAB) (FAB.AD), the biggest lender in the United Arab Emirates, posted on Thursday a 54% rise in third-quarter net profit, fuelled by higher non-interest income as the economy gradually recovers from the coronavirus pandemic.

UAE banks are witnessing a rebound in earnings after the economy was rattled by the pandemic in 2020, with FAB's investment banking business benefiting from increased deals flow in Abu Dhabi.

"Global markets and macro sentiment have broadly sustained their positive momentum in the third quarter of 2021, driven by COVID-19 vaccine rollout, improving business and consumer sentiment, and the impact of global monetary and fiscal support measures," the bank said.

FAB delivered a net profit of 3.9 billion dirhams ($1 billion) in the quarter ended Sept. 30, up from 2.5 billion dirhams a year earlier.

Citigroup plans more investment in #SaudiArabia, eyes banking license | Reuters

Citigroup plans more investment in Saudi Arabia, eyes banking license | Reuters

Citigroup (C.N) wants to pursue a banking license in Saudi Arabia to further boost its business in the kingdom by expanding into trade finance and treasury solutions, a senior executive said.

Citi was awarded a Saudi capital markets licence in 2017, allowing it to return to the kingdom in 2018 after a 13-year absence.

It advised Saudi Aramco on its $29.4 billion listing in 2019, in what was the world's biggest initial public offering, as well as on several sovereign and corporate bond deals.

"We have seen significant growth during this time and we're still very interested in making further investments locally in the market," Ebru Pakcan, Citi's head of EMEA emerging markets business, told Reuters on the sidelines of Saudi Arabia's FII investment conference.

#Saudi petrochemicals producer SABIC posts fivefold profit jump | Reuters

Saudi petrochemicals producer SABIC posts fivefold profit jump | Reuters

Petrochemicals giant Saudi Basic Industries Corp (SABIC) (2010.SE) on Thursday reported a fivefold increase in third-quarter profit helped by higher average selling prices.

SABIC reported a post-tax profit of 5.6 billion riyals ($1.5 billion), up from 1.1 billion riyals a year earlier but missing a 6.1 billion riyal consensus from estimates by four analysts compiled by Refinitiv.

Revenue increased 49% to 43.7 billion riyals.

Net income was helped not only by higher average selling prices but also by an increase in its share of results from joint ventures and associates, SABIC said. Unlike the third quarter of last year, there were also no material impairments.

Despite the increase in average sales prices, there was a moderation in margins due to rise in feedstock costs, it said.

“SABIC’s healthy financial performance during the third quarter of 2021 marked a continuation of our recovery from the impact of COVID-19, albeit at a lower level than our exceptionally strong performance during the second quarter," CEO Yousef Abdullah Al-Benyan said in a statement.

SABIC is 70% owned by Saudi state-controlled oil producer Saudi Aramco.

Oil plunges to 2-week low on U.S. inventory shock, rise in COVID-19 cases | Reuters

Oil plunges to 2-week low on U.S. inventory shock, rise in COVID-19 cases | Reuters

Oil prices slumped to their lowest in two weeks after official figures showed a surprise jump in U.S. inventories of crude, and rising cases of COVID-19 in Europe, Russia, and some outbreaks of infections in China dented hopes for an economic recovery.

Brent crude dropped 94 cents, or 1.1%, to $83.64 a barrel by 0655 GMT, having hit a two-week low of $82.32 earlier and fallen by 2.1% in the previous session.

U.S. oil was down 89 cents, also a 1.1% drop, at $81.77 a barrel - a one-week low after dropping 2.4% on Wednesday.

Outbreaks of coronavirus infections in China and record deaths and the threat of lockdowns in Russia, along with rising cases in western Europe were putting the brakes on a multi-week rally in oil prices. read more