Oil Rally Slows as U.S. Hints at Actions to Quell Rising Prices - Bloomberg

Oil Rally Slows as U.S. Hints at Actions to Quell Rising Prices - Bloomberg

PRICES:
WTI for December delivery rose 66 cents to settle at $81.93 a barrel in New York. Brent for January settlement added 69 cents to close at $83.43 a barrel

Oil eked out a gain on Monday as Saudi Arabia is raising prices, but the rally cooled after the U.S. signaled measures to ease oil and gasoline prices.

Futures in New York closed 0.8% higher, paring gains of as much as 1.7% earlier in the session. U.S. Energy Secretary Jennifer Granholm said that President Biden may make an announcement to address high oil and gasoline prices this week. Granholm didn’t specify any particular measures, but the U.S. has said that releasing crude from the Strategic Petroleum Reserve is one option it’s considering to cool prices.

Still, prices were supported by the biggest increases to some of Saudi Arabia’s official selling prices in decades at the end of last week. Asian buyers will probably take their full contractual volumes of oil next month, despite the higher costs, signaling a strong market.

The markets traded sideways throughout most of the afternoon, waiting to see if the U.S. would release crude from the strategic reserves and if so, how much. Only a coordinated effort from the U.S. with other consumer countries could substantially bring prices down, said John Kilduff, founding partner at Again Capital LLC

#Dubai's Emaar Malls posts 86% jump in Q3 net profit | ZAWYA MENA Edition

Dubai's Emaar Malls posts 86% jump in Q3 net profit | ZAWYA MENA Edition

Emaar Malls, the retail arm of Dubai's biggest developer Emaar Properties, said it made a third-quarter net profit of 448 million dirhams ($122 million), up by 86 percent from 241 million dirhams last year.

Revenue came in at 1.14 billion dirhams for the quarter, up from 839 million dirhams in the same period last year, the company said in a statement on Monday to the Dubai Financial Market (DFM), where its shares trade.

Emaar Mall’s e-commerce fashion and lifestyle platform Namshi, a wholly owned subsidiary, recorded sales of 320 million dirhams for the quarter, it added.

The company added that occupancy levels across Emaar Malls’ assets – The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souk Al Bahar and the Community Retail Centres – remained 91 percent during the quarter.

For the nine-month period ended September 30, the retailer’s net profit was 1.07 billion dirhams. Revenue for the period was 3.19 billion dirhams.

Last September, Emaar Malls and its parent company Emaar Properties, proposed a merger that would make the retail arm a wholly owned subsidiary of Emaar Properties, which currently owns 84.6 percent.

Following the merger, which is expected to happen by the end of the year, Emaar Malls would no longer be listed.

Oil lifted by U.S. spending and plans to address prices | Reuters

Oil lifted by U.S. spending and plans to address prices | Reuters

Oil prices rose on Monday as positive signs for global economic growth supported the outlook for energy demand and the United States said it was weighing options to address high prices.

Brent crude was up 65 cents, or 0.79%, at $83.39 a barrel by 1443 GMT, having lost nearly 2% last week. U.S. oil gained 56 cents, or 0.69%, to $81.83 after a 3% fall last week. Both contracts rose by more than $1 a barrel in early trade.

U.S. President Joe Biden on Saturday welcomed congressional passage of a long-delayed $1 trillion infrastructure bill, which could boost economic growth and demand for fuel. read more

Further price support has also come from a decision last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group collecticely known as OPEC+, not to speed up their planned production increases.

EXCLUSIVE #SaudiArabia in talks to refinance, downsize $16 bln loan - sources | Reuters

EXCLUSIVE Saudi Arabia in talks to refinance, downsize $16 bln loan - sources | Reuters

Saudi Arabia is in talks with banks to amend the terms of a $16 billion loan due in 2023 and possibly reduce the size of the facility, sources said, as the world's top oil exporter looks to cut outstanding government debt and improve its balance sheet.

The discussions between the ministry of finance and the banks are at an early stage and no decision has been taken yet, said the four sources familiar with the matter.

One said the potential refinancing could be for 50% to 70% of the $16 billion facility, which Saudi Arabia raised in 2018 when it refinanced, extended and increased an existing $10 billion loan raised in 2016 and due in 2021.

"The Kingdom of Saudi Arabia manages its debt proactively all the time and makes regular announcements as deals are completed in the appropriate way," a ministry of finance spokesperson said.

#AbuDhabi bourse outperforms Gulf bourses, at record high | Reuters

Abu Dhabi bourse outperforms Gulf bourses, at record high | Reuters

Most stock markets in the Gulf ended higher on Monday, with the Abu Dhabi index hitting an all-time high, while the Saudi index traded flat.

The Abu Dhabi (.ADI) index advanced 1.1%, hitting a record high, led by a 1.7% rise in the country's largest lender First ABu Dhabi Bank (FAB.AD) and a 1.3% increase in conglomerate International Holding Co (IHC) (IHC.AD).

On Thursday, IHC reported a quarterly net profit of 2.87 billion dirhams ($781.42 million), up from 958.9 million dirhams year ago.

IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, became Abu Dhabi's most valuable listed company in June after the listing of subsidiary Alpha Dhabi (ALPHADHABI.AD).

It is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's de facto ruler, Abu Dhabi Crown Prince Mohammed bin Zayed.

Dubai's main share index (.DFMGI) added 0.2%, with Dubai Financial Market (DFM.DU) surging 9.9%, extending gains for a fifth session, triggered after the emirate announced plans to launch a 2 billion dirham ($545 million) market-maker fund and initial public offerings.

The Dubai government plans a stock market flotation of Dubai Electricity & Water Authority (Dewa), it said on Tuesday, among 10 state-backed companies to be listed as part of plans to boost activity on the local bourse. read more

Saudi Arabia's benchmark index (.TASI) finished flat as gains in financial shares were offset by declines in petrochemical shares.

Oil prices rose as positive signs for global economic growth supported the outlook for energy demand, while Saudi Arabia's state-owned producer Aramco raised the official selling price for its crude.

But oil giant Saudi Aramco (2222.SE) was down 0.3%, extending losses from the previous session when it traded ex-dividend.

Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.5%, hit by a 0.8% decline in top lender Commercial International Bank (COMI.CA).

Investors continue to secure their gains after the main index rose significantly for more than a month. The strong oil prices and positive economic expectations could keep the price corrections small, said Wael Makarem, senior market strategist at Exness.

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

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

Column: Profit-taking hits hedge funds' oil positions: Kemp | Reuters

Column: Profit-taking hits hedge funds' oil positions: Kemp | Reuters

Petroleum-related derivative markets were hit by the largest wave of hedge fund selling last week for almost three months as portfolio managers realised some profits after the recent rally in oil prices.

Hedge funds and other money managers sold the equivalent of 45 million barrels in the six most important petroleum-related futures and options contracts in the week to Nov. 2 (https://tmsnrt.rs/3BQfEnr).

Most selling was driven by the reduction of existing bullish long positions (-39 million barrels) rather than the creation of new bearish short ones (+6 million), consistent with profit-taking rather than aggressive short selling.

Portfolio managers were sellers across the whole complex, including NYMEX and ICE WTI (-15 million barrels), Brent (-10 million), European gas oil (-9 million), U.S. heating oil (-6 million) and U.S. gasoline (-5 million).

Natixis IPO in #SaudiArabia Shows How to Break Through Market - Bloomberg

Natixis IPO in Saudi Arabia Shows How to Break Through Market - Bloomberg

Natixis SA is coming off its first initial public offering in Saudi Arabia with a blueprint for how to navigate a market dominated by rivals that are more entrenched in the kingdom.

The Paris-based bank, which aims to boost its investment banking revenues by 7% every year until 2024, is looking to get a “substantial increase” in how much it generates out of Saudi Arabia, according to Barbara Riccardi, regional head for the Middle East corporate and investment banking business.

“Saudi is a crowded place where a lot of people have been very active, and obviously we’re not going to try and compete with the likes of the American banks,” Riccardi said in an interview in Riyadh. “But where we can really add value is in the sector where we have been present consistently as a lender and as an adviser.”

Oil gains after U.S. infrastructure bill passes, Chinese exports rise | Reuters

Oil gains after U.S. infrastructure bill passes, Chinese exports rise | Reuters

Oil prices rose on Monday as positive signs for global economic growth supported the outlook for energy demand, while Saudi Arabia's state-owned producer Aramco raised the official selling price for its crude.

Brent crude was up by 91 cents, or 1.1%, at $83.65 a barrel at 1028 GMT, after dropping nearly 2% last week. U.S. oil gained $1.13, or 1.39%, to $82.40, having declined almost 3% through Friday.

U.S. President Joe Biden on Saturday welcomed congressional passage of a long-delayed $1 trillion infrastructure bill, which may boost growth and demand for fuel. read more

China's export growth slowed in October but beat forecasts, buoyed by rising global demand ahead of the winter holiday seasons and improvements in coronavirus-hit supply chains.

Higher energy prices lift #Qatar budget surplus - finance ministry | Reuters

Higher energy prices lift Qatar budget surplus - finance ministry | Reuters

Qatar's government budget recorded a surplus of 0.9 billion riyals ($247 million) in the third quarter, boosting the nine-month surplus in 2021 to 4.9 billion riyals, as higher energy prices increased the Gulf nation's revenue.

Total revenue for Q3 stood at 47 billion riyals, an increase of 20.6% year-on-year, the finance ministry said on Twitter on Monday.

Expenditures reached 46.1 billion riyals in Q3, of which 16.3 billion riyals went on major projects, it added.

Qatar is one of the world's top liquefied natural gas exporters.

EXCLUSIVE #UAE to audit all gold refineries in crackdown on illicit trade | Reuters

EXCLUSIVE UAE to audit all gold refineries in crackdown on illicit trade | Reuters

The United Arab Emirates will require all gold refineries to undergo annual audits to ensure their suppliers are responsible, it told Reuters, in an effort to combat illicit trading.

Industry figures said this should raise standards in the UAE, one of the world's biggest bullion trade hubs, but may also shift flows of gold linked to crime or human rights abuses to other countries, for example in Africa, where the number of gold refineries is growing rapidly.

A Reuters investigation in 2019 found that UAE took in gold worth billions of dollars smuggled from Africa, some of it mined in grim and polluting conditions and countries in conflict.

Organisations including the Financial Action Task Force (FATF), an intergovernmental anti-money laundering monitor, are pressing the country to tighten rules and enforcement. UAE has said doing so is a national priority.

Fertiglobe joint venture of OCI-ADNOC reports over 2,000% jump in Q3 profit | Reuters

Fertiglobe joint venture of OCI-ADNOC reports over 2,000% jump in Q3 profit | Reuters

Fertiglobe, a joint venture between Abu Dhabi National Oil Company (NOC) and chemicals producer OCI, reported a more than 2,000% increase in profit for the third quarter on higher ammonia and urea prices.

Net profit attributable to shareholders jumped to $137.7 million in the quarter ended September 30 from $6.2 million in the year earlier period, Fertiglobe reported in a filing on the Abu Dhabi exchange on Monday.

It said it increased its dividend guidance from at least $200 million to at least $240 million for the second half of this year, payable on April 22.

#Saudi Aramco to continue generating robust cash flows: Al Rajhi Capital | ZAWYA MENA Edition

Saudi Aramco to continue generating robust cash flows: Al Rajhi Capital | ZAWYA MENA Edition

Riyadh-based investment bank Al Rajhi Capital has revised upward the target price on the stock of state oil producer Saudi Aramco from 35 riyals ($9.33) per share to 37 riyals per share.

The target price has been increased following the third-quarter performance of the oil giant, whose stock closed at 37.60 riyals on Sunday.

The premium is based on a 3.75 percent dividend yield on the 2021 dividend per share of 1.4 riyals per share, the brokerage said in a note.

The oil producer’s Q3 net income has more than doubled to $30.4 billion from the year earlier period, beating most analysts’ estimates.

The profit beat was "mainly driven by strong refining and chemical margins, coupled with lower-than-expected operating costs," said Al Rajhi Capital.

The brokerage said Aramco is expected to continue generating robust cash flows, driven by firm oil prices, gradual rise in production, healthy downstream margins and improved “cost efficiencies/synergies”.

S&P affirms #Qatar's AA-/A-1+ ratings with 'stable' outlook | ZAWYA MENA Edition

S&P affirms Qatar's AA-/A-1+ ratings with 'stable' outlook | ZAWYA MENA Edition

S&P Global Ratings on Monday said it has affirmed its “AA-/A-1+” long- and short-term foreign and local currency ratings on Qatar, citing that the outlook is stable for the country.

The ratings agency said it considered that the rapid growth of foreign debt in the Qatari banking system could present balance-of-payment risks if the capital inflows were to reverse sharply, but that it was not the agency’s base-case scenario.

“In our view, Qatar’s status as one of the largest exporters of liquefied natural gas in the world and our estimate of its substantial fiscal and external buffers mitigate the risks,” the agency said in a research update.

S&P said it could consider raising the ratings if Qatar’s external and fiscal net asset positions proved stronger than forecast, while the banking system’s elevated stock of short-term external debt moderated in an orderly way.

The rating could be lowered if Qatar experienced a significant external shock, either due to a material worsening of its terms of trade, or to a sizable outflow of nonresident deposit funding from its banking system, where financial assets amount to an estimated 270 percent of gross domestic product (GDP).

“We could also lower the ratings if the Qatari government’s balance sheet were to weaken substantially, reducing our estimate of government liquid assets to below 100 percent of GDP,” the agency said.

For its rationale, S&P said Qatar remains one of the largest exporters of liquid natural gas globally, with the government planning to increase production by about 64 percent to 126 million tonnes annually between 2025 and 2027, equivalent to around 3.1 million barrels of oil per day.

Qatar’s macroeconomic indicators should then strengthen, the agency said, but growth assumptions for the near future factor in broadly stable gas production and a moderate expansion in manufacturing sector output, including heavy downstream activities.

“Even so, Qatar's income levels remain high, and we forecast that GDP per capita will rebound to an average of $68,000 in 2021-2024 from a low of $54,000 in 2020,” S&P concluded.

OPEC+ able to increase oil supply in case of market demand, #UAE minister tells Asharq | Reuters

OPEC+ able to increase oil supply in case of market demand, UAE minister tells Asharq | Reuters

The Organisation of Petroleum Exporting Countries and its allies, the group known as OPEC+, are able to increase oil supply if there is market demand, United Arab Emirates Energy Minister Suhail al-Mazrouei told Asharq TV on Monday.

The UAE has the capacity to supply additional volumes of crude to the market if needed and if agreed by the OPEC+ group, he said in an interview to the Dubai-based channel.

At a meeting last week, OPEC+ stuck to a plan to raise oil output by 400,000 barrels per day on a monthly basis, snubbing calls from the United States to go beyond this volume in order to keep oil prices in check.

Mazrouei said in the interview that the UAE and its OPEC+ partners may continue with the policy until September 2022, to reach the output level seen before the coronavirus pandemic.

The current policy of adding 400,000 bpd a month can lead to an excess in supply in the first quarter of 2022, he said, expecting the U.S. to continue to draw from its strategic petroleum reserves until 2025.

Speaking the same day at a conference in Dubai, Mazrouei said insufficient investment in the oil and natural gas industry could lead to a hike in energy prices.

Oil gains after U.S. infrastructure bill passes, Chinese exports rise | Reuters

Oil gains after U.S. infrastructure bill passes, Chinese exports rise | Reuters

Oil prices rose on Monday as positive signs for global economic growth supported the outlook for energy demand, while Saudi Arabia's state-owned producer Aramco raised the official selling price for its crude.

Brent crude was up by 86 cents or 1% at $83.60 a barrel by 0745 GMT, after dropping nearly 2% last week. U.S. oil gained 89 cents or 1.1% to $82.16, having declined almost 3% through Friday.

U.S. President Joe Biden on Saturday welcomed congressional passage of a long-delayed $1 trillion infrastructure bill, which may boost growth and demand for fuel. read more

China's export growth slowed in October but beat forecasts, buoyed by rising global demand ahead of the winter holiday seasons and improvements in coronavirus-hit supply chains.

#AbuDhabi hits record as most markets rise; #Qatar bucks trend | Reuters

Abu Dhabi hits record as most markets rise; Qatar bucks trend | Reuters

Most stock markets in the Gulf rose in early trade on Monday, with the Abu Dhabi index reaching an all-time high, while Qatar bucked the trend.

The Abu Dhabi (.ADI) index advanced 1.2%, hitting a record high, buoyed by a 5% jump in conglomerate International Holding Co (IHC) (IHC.AD).

On Thursday, IHC reported a quarterly net profit of 2.87 billion dirhams ($781.42 million), up from 958.9 million dirhams year ago.

IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, became Abu Dhabi's most valuable listed company in June after the listing of subsidiary Alpha Dhabi (ALPHADHABI.AD).

It is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's de facto ruler, Abu Dhabi Crown Prince Mohammed bin Zayed.

Saudi Arabia's benchmark index (.TASI) rose 0.5%, with Al Rajhi Bank (1120.SE) climbing 2.5% and SABIC Agri-Nutrients Co (2020.SE) leaping 2.9%.

Oil prices rose as positive signs for global economic growth supported the outlook for energy demand, while Saudi Arabia's state-owned producer Aramco raised the official selling price for its crude.

However, oil giant Saudi Aramco (2222.SE) was down 0.1%, extending losses from the previous session when it traded ex-dividend.

Dubai's main share index (.DFMGI) gained 0.6%, with Dubai Financial Market (DFM.DU) surging 13.7%, on course to extend gains for a fifth session.

Last week, the emirate announced plans to launch a 2 billion dirham ($545 million) market-maker fund and initial public offerings.

The Dubai government plans a stock market flotation of Dubai Electricity & Water Authority (Dewa), it said on Tuesday, among 10 state-backed companies to be listed as part of plans to boost activity on the local bourse. read more

The Qatari index (.QSI) eased 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) falling 0.7%.

Qatar's General Tax Authority does not intend to introduce an income tax, the state news agency reported on Sunday, citing the authority's head.