OPEC+ Considers Production Changes If Strategic Reserves Are Tapped - Bloomberg

OPEC+ Considers Production Changes If Strategic Reserves Are Tapped - Bloomberg

OPEC+ officials warned they’re likely to respond to plans by the world’s largest oil consumers to release oil from their strategic stockpiles, setting up a fight for control of the global energy market.

President Joe Biden is set to announce a plan to release reserves from the Strategic Petroleum Reserve on Tuesday in tandem with China, India, Japan and South Korea, according to officials briefed on the matter. The move, weeks in the planning, is designed to ease this year rise in fuel prices for drivers and businesses.

OPEC+ delegates said the release of millions of barrels from the inventories of their biggest customers is unjustified by current market conditions and the group may have to reconsider plans to add more oil production when they meet next week.

The tussle threatens the biggest ructions in the geopolitics of oil since the price war between Saudi Arabia and Russia in early 2020. At stake is the price of the world’s most important commodity as politicians and central bankers contend with the strongest inflationary surge in more than a decade. It also shows the strained relationship between Washington and Riyadh, traditionally a cornerstone of U.S. relations in the Middle East.

Oil prices settle up 1% on reports OPEC+ could reassess output | Reuters

Oil prices settle up 1% on reports OPEC+ could reassess output | Reuters

Oil prices rose on Monday, rebounding from recent losses, on reports that OPEC+ could adjust plans to raise oil production if large consuming countries release crude from their reserves or if the coronavirus pandemic dampens demand.

Brent crude futures rose 81 cents, or 1%, to settle at $79.70 a barrel. WTI crude futures rose 81 cents, or 1%, to settle at $76.75 a barrel.

Prices of the Brent and U.S. West Texas Intermediate (WTI) crude benchmarks fell more than $1 in early trading, hitting their lowest levels since Oct. 1.

Japanese and Indian officials are working on ways to release national reserves of crude oil in tandem with the United States and other major economies to dampen prices, seven government sources with knowledge of the plans told Reuters.

#Oman, #Qatar sign six agreements during Sultan's visit to Doha | Reuters

Oman, Qatar sign six agreements during Sultan's visit to Doha | Reuters

Oman and Qatar on Monday signed agreements on military cooperation, taxation, tourism, ports, labour and investment as Oman seeks to invigorate its debt-burdened economy, the state news agencies of both the Gulf states said.

Oman is among the weakest financially of the Gulf oil producers. It has been pursuing wide-ranging reforms and austerity measures since Sultan Haitham bin Tariq al-Said took power almost two years ago following the death of his predecessor who ruled for half a century.

The agreements were signed during a two-day state visit by Oman's Sultan Haitham to the small but wealthy state of Qatar, one of the world's top producers of liquefied natural gas (LNG).

The deals included an agreement on double taxation and tax evasion on income and capital taxes, and an investment cooperation agreement between sovereign wealth funds the Qatar Investment Authority and the Oman Investment Authority, said Qatar's Amiri Diwan, the administrative office of the Emir.

Further details on the deals were not immediately available.

Since the oil price crash in 2014, Oman, a country of around 5 million people, has accumulated large amounts of debt. It recently embarked on a medium-term plan to fix its finances that were also hit by the COVID-19 pandemic.

Oman last year was in talks with some Gulf countries for financial help, according to an October 2020 bond prospectus.

#Saudi tourism fund invests over $500 mln since last year - statement | Reuters

Saudi tourism fund invests over $500 mln since last year - statement | Reuters

Saudi Arabia's Tourism Development Fund said on Monday it had deployed 2 billion riyals ($533 million) on tourism projects worth a total of around 6 billion riyals from its establishment last year until the end of September this year.

The remaining four billion riyals for the projects have come from the private sector, the fund said in a statement.

Founded in June 2020 with an initial $4 billion investment, the fund is part of Saudi plans to diversify the economy away from the oil sector.

Oil prices pressured by both supply and demand factors | Reuters

Oil prices pressured by both supply and demand factors | Reuters

Oil prices rose on Monday but remained under pressure from rising COVID-19 cases in Europe and a potential release of Japanese and Indian oil reserves, raising concerns about both oversupply and weak demand.

Prices of the Brent and U.S. West Texas Intermediate (WTI) crude benchmarks fell more than $1 in early trading, hitting their lowest levels since Oct. 1.

By 1444 GMT, Brent was up 34 cents, or 0.4%, at $79.23 a barrel while U.S. crude had gained 29 cents, or 0.4%, to $76.23.

The prospect of national lockdowns in Europe has raised concerns about economic and oil demand growth, said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

Bank of Israel Holds Rates, No New Announcement on Shekel - Bloomberg

Bank of Israel Holds Rates, No New Announcement on Shekel - Bloomberg

The Bank of Israel held rates near zero for the 13th time to support the economy’s recovery from Covid-19, and said it would intervene as needed to rein in a strengthening shekel.

The Bank of Israel didn’t announce any new policies to tame the rising shekel, one of the best-performing major currencies in the world this year, saying it would continue “to act taking into account the state of the economy and the continuation of economic activity.”

All 16 economists surveyed by Bloomberg predicted the Bank of Israel would maintain the base rate at 0.1%

#Dubai Ranks of IPO Hopefuls Grow With Shuaa Plans for Two Listings - Bloomberg

Dubai Ranks of IPO Hopefuls Grow With Shuaa Plans for Two Listings - Bloomberg

Shuaa Capital PSC, which oversees around $14 billion in assets, is considering initial public offerings of two of its portfolio companies as Dubai’s efforts to revive its stock market gain traction among private businesses, according to people familiar with the matter.

The investment bank and asset manager has been in talks with the Dubai Financial Market about listing Stanford Marine Group and NCM Investment, the people said, asking not to be named because the information is confidential.

Shuaa is targeting early next year to list the two businesses and is in talks to hire investment banks as bookrunners, the people said. Combined, the two assets have a value of about 2 billion dirhams ($545 million), they said.

Dubai said earlier this month that it wants to sell shares in utility Dubai Electricity & Water Authority as the first of 10 state entities to go public. The government is also encouraging private and family-owned businesses to follow suit. Information technology firm StarLink already pledged to go public early next year.

#Oman's Asyad seeks offers of interest in expanding Suwaiq port - state media | Reuters

Oman's Asyad seeks offers of interest in expanding Suwaiq port - state media | Reuters

Oman logistics group Asyad has invited local and international companies to send offers of interest in expanding Suwaiq port on the Gulf of Oman, the state news agency reported on Monday.

Ahmed bin Mohamed al-Abri, CEO of Asyad, said the expansion aimed to enable the port to handle large ships and all types of general, liquid and bulk goods, the agency said.

Port capacity will reach 10 million tonnes annually, half of it for general cargo and the rest for bulk materials, it said. The project also includes the construction of multi-purpose berths with a depth of 14 meters to accommodate large ships.

#Saudi bourse suffers biggest fall in over a year after drone attacks | Reuters

Saudi bourse suffers biggest fall in over a year after drone attacks | Reuters

Saudi Arabia's stock market had its biggest intraday fall in over a year on Monday as it extended losses from the previous session following drone attacks.

The Saudi-led coalition fighting the Houthi movement in Yemen said its air defences destroyed a drone targeting Najran airport in the south of Saudi Arabia, state media reported on Sunday. read more

Yemen's Iranian-aligned Houthi movement said on Saturday it had fired 14 drones at several Saudi Arabian cities, including at Saudi Aramco facilities in Jeddah. read more

Saudi Arabia's benchmark index (.TASI) fell 2.7%, its biggest intraday fall since Oct. 2020, with Al Rajhi Bank (1120.SE) down 4.5% and Saudi National Bank (1180.SE), the kingdom's biggest lender, retreating 3.7%.

The Saudi-led coalition said it detected indications of an imminent danger to navigation and global trade south of the Red Sea, Saudi state media reported early on Monday. read more

Among other losers, Aramco (2222.SE) dropped 1.8%.

The oil giant was also under pressure after India's Reliance Industries Ltd (RELI.NS) said on Friday it had decided with Aramco to reevaluate Aramco's proposed roughly $15 billion investment in Reliance's oil-to-chemicals (O2C) business. read more

However, Nayifat Finance Company (4081.SE), a consumer-focused Islamic finance firm, ended at 35.25 riyals per share, 3.6% above its initial public offering price of 34 riyals.

Dubai's main share index (.DFMGI) slid 2.6%, weighed down by a 4.3% decline in blue-chip developer Emaar Properties (EMAR.DU) and a 3.5% retreat in Emirates NBD Bank (ENBD.DU).

The Qatari index (.QSI) fell 0.9%, hit by a 2.8% drop in petrochemical maker Industries Qatar (IQCD.QA).

Oil prices, a major influence on the Gulf regions' financial markets, fell as rising COVID-19 cases in Europe and a potential release of Japanese oil reserves raised concerns about both oversupply and weak demand.

In Abu Dhabi, the index (.ADI), edged up 0.1%, helped by an increase in Alpha Dhabi Holding (ALPHADHABI.AD).

Beyond the Gulf, Egypt's blue-chip index (.EGX30) gained 0.8%, as most of the stocks on the index rebounded, including top lender Commercial International Bank (COMI.CA).

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

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

Oil prices retreat in face of supply and demand pressures | Reuters

Oil prices retreat in face of supply and demand pressures | Reuters

Oil prices fell on Monday as rising COVID-19 cases in Europe and a potential release of Japanese oil reserves raised concerns about both oversupply and weak demand.

Brent crude was down 56 cents, or 0.7%, at $78.33 a barrel at 1157 GMT and U.S. West Texas Intermediate (WTI) crude fell 54 cents, or 0.7%, to $75.40.

The prospect of national lockdowns in Europe has raised concerns about economic and oil demand growth, said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

Investors sought safe havens such as the dollar early in the session, contributing to the sharp decline in oil prices, Varga added.

Oil Steadies as Traders Assess Prospect of Stockpile Release - Bloomberg

Oil Steadies as Traders Assess Prospect of Stockpile Release - Bloomberg

PRICES
West Texas Intermediate for January delivery added 0.5% to $76.33 a barrel on the New York Mercantile Exchange at 9:22 a.m. London time after tumbling 3.7% on Friday. Futures lost 5.8% last week. Brent for January settlement rose 0.5% to $79.28 on the ICE Futures Europe exchange after declining 2.9% on Friday.

Oil steadied after four weeks of losses as traders weighed the chance that the U.S., China and Japan will tap national crude reserves as concerns over accelerating inflation intensify.

Futures in New York held above $76 a barrel after losing almost 6% last week. U.S. President Joe Biden has been talking about a possible release from the Strategic Petroleum Reserve for several weeks, and Japan’s TV Asahi reported Monday that Tokyo is preparing to release crude from its national stockpiles as part of a joint effort with the U.S.

The return of virus restrictions in Europe, meanwhile, suggests there could still be a threat to global energy demand from a resurgent Covid-19. Austria goes into a full lockdown on Monday, while Germany and other nations are cracking down on the unvaccinated as cases spike.

Reliance-Aramco no-deal is sign of the ESG times | Reuters

Reliance-Aramco no-deal is sign of the ESG times | Reuters

Green and black are increasingly clashing. Reliance Industries (RELI.NS) and Saudi Aramco (2222.SE) will re-examine a plan first unveiled more than two years ago for the oil colossus to pump $15 billion into the Indian conglomerate’s refining operations. The impasse reflects how quickly investment decisions are being upended by the energy transition.

The two titans were natural partners when they sketched out the all-cash deal in August 2019 for Aramco to buy 20% of Reliance’s oil-to-chemicals business, known as O2C. It would have brought together the world’s top crude producer and one of the biggest refinery operations, located in Jamnagar, Gujarat. As oil prices crashed early in the pandemic, the transaction stalled. By the time they recovered in February, Reliance boss Mukesh Ambani was gearing up to announce a plan for his Jamnagar complex to house a large integrated renewable-energy manufacturing facility. Using green hydrogen to run the refinery, as is envisioned, would make carving out O2C inefficient.

Following Friday’s news that the deal was off, Aramco lost some $37 billion of market value. The development, however, avoids a potential embarrassment for Saudi Arabia, which reckons the world is beating too hasty a retreat from fossil fuels. The recent election read more of Aramco Chairman Yasir Al-Rumayyan onto Reliance’s board suggests Riyadh will have some security over where it sells oil for some time.

India’s largest listed company fails to crystalise a $75 billion valuation for O2C, but it can live without the cash. Reliance has reduced debt with proceeds from selling stakes in its retail and digital units. And if Aramco had paid Reliance partly in shares, an idea that emerged as the deal dragged on, it might have deterred climate-conscious investors from recognising Ambani’s greener pursuits.

Reliance also has attractive ways to finance $10 billion of planned expenditures on new energy over the next three years. There’s no shortage read more of affordable capital for large Indian companies seeking to fund such projects. Issuers including Adani Green Energy (ADNA.NS) and Renew Energy (RNW.O) are raising money at within half a percentage point of India’s 4% benchmark interest rate, Jefferies analysts point out. Under the rapidly evolving circumstances, Reliance and Aramco won’t be the last to rethink a relationship.

Britain, Gulf countries negotiating free-trade agreement -British investment minister | Reuters

Britain, Gulf countries negotiating free-trade agreement -British investment minister | Reuters

Britain and Gulf Cooperation Council (GCC) countries are negotiating a free-trade agreement, Britain's investment minister, Gerry Grimstone, said on Monday.

A deal will be concluded within 12 months, Grimstone said at a conference in Dubai.

The GCC is already an important trading partner for Britain, with almost 22 billion pounds ($29.57 billion) of British exports and bilateral trade worth over 30 billion pounds in 2020, showed a British government website.

Israeli venture firm OurCrowd gets license to operate in the #UAE | Reuters

Israeli venture firm OurCrowd gets license to operate in the UAE | Reuters

OurCrowd, one of Israel's largest venture firms, said on Monday it received approval and a license to operate in the United Arab Emirates.

OurCrowd becomes the first Israeli venture capital company to receive a license from the Abu Dhabi Global Market (ADGM), the main international financial centre in Abu Dhabi, it said.

OurCrowd Management (Arabia) Limited will operate as a fund manager regulated by the ADGM’s Financial Services Regulatory Authority.

The move comes after Israel and the UAE normalised relations last year.

CEO Jon Medved said OurCrowd will be able to raise funds in the UAE and also promote local Emirati and regional startups to its 160,000 global investors and "drive international investments into the UAE's dynamic startup ecosystem. This is a major step toward developing OurCrowd’s business in the UAE."

Sabah al-Binali, OurCrowd’s UAE-based venture partner, said the firm will be able to create venture funds based at the ADGM to invest in technology startups in the UAE and across the region.

"Our core focus in the initial stage will be on the agricultural, financial and medical technology sectors,” he said.

Emaar Malls, Emaar Properties merger completed | ZAWYA MENA Edition

Emaar Malls, Emaar Properties merger completed  | ZAWYA MENA Edition

Dubai-based developer Emaar Properties on Monday announced the completion of its merger with its retail arm, Emaar Malls.

Shares of the operator of Dubai’s largest shopping centre, Dubai Mall, have also been delisted from the Dubai Financial Market (DFM) as of Sunday, November 21, 2021, less than a decade after they were floated on the market.

With the merger, all the rights and obligations of Emaar Malls have now been transferred by law to Emaar Properties.

“The company would like to announce the completion of the merger transactions between Emaar Properties and Emaar Malls, and the transfer by law of all rights and obligations of Emaar Malls to Emaar Properties,” the company said in a statement.

As part of the merger, both companies agreed to allocate 0.51 new shares in Emaar Properties for every one share of Emaar Malls.

Emaar Malls began trading on DFM in 2014 after a $1.6 billion initial public offering (IPO).

#Saudi bourse on course to extend losses after drone attacks | Reuters

Saudi bourse on course to extend losses after drone attacks | Reuters

Most major stock markets in the Gulf fell in early trade on Monday, with the Saudi index leading the losses a day after its biggest one-day fall in over a year following drone attacks.

Yemen's Iranian-aligned Houthi movement said on Saturday it had fired 14 drones at several Saudi Arabian cities, including at Saudi Aramco facilities in Jeddah. read more

Saudi Arabia's benchmark index (.TASI) dropped 1.3%, dragged down by a 1.4% fall in Al Rajhi Bank (1120.SE) and a 1.6% decline in the kingdom's largest lender, First Abu Dhabi Bank (FAB.AD).

The Saudi-led coalition fighting the Houthi movement said it had detected indications of an imminent danger to navigation and global trade south of the Red Sea, Saudi state media reported early on Monday. read more

Among other losers, Aramco (2222.SE) was down 1%.

The oil giant was also under pressure after India's Reliance Industries Ltd (RELI.NS) said on Friday it had decided with Aramco to reevaluate Aramco's proposed roughly $15 billion investment in Reliance's oil-to-chemicals (O2C) business. read more

However, Nayifat Finance Company (4081.SE), a consumer-focused Islamic finance firm, was at 36 riyals per share, 5.7% above its initial public offering price of 34 riyals.

Dubai's main share index (.DFMGI) slid 1.2%, hit by a 2.7% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.5% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Qatari index (.QSI) retreated 0.7%, as almost all the stocks on the index were in negative territory, including petrochemical firm Industries Qatar (IQCD.QA).

Oil prices, a catalyst for the Gulf's financial markets, came off seven-week lows but remained under pressure after Japan said it was weighing releasing oil reserves and as the COVID-19 situation in Europe worsened, raising concerns about both oversupply and weak demand.

Aramco Eyes New Investments in India After Reliance Scraps Deal - Bloomberg

Aramco Eyes New Investments in India After Reliance Scraps Deal - Bloomberg

Saudi Aramco said it will continue to look for investment opportunities in India, days after Reliance Industries Ltd. scrapped a plan to sell a stake in its oil-to-chemicals unit to the Middle Eastern company.

“India offers tremendous growth opportunities over the long term,” Aramco said in a statement on Sunday. It will “continue to evaluate new and existing business opportunities with our potential partners.”

Aramco had signed a non-binding letter of intent in August 2019 for a potential 20% stake in Reliance’s oil-to-chemicals unit valued at about $15 billion. Reliance said the companies would walk away from the deal on Friday.

“Reliance and Aramco have a longstanding relationship and will continue to look for investment opportunities in India,” Aramco said.

Reliance, in its statement, also said it will continue to be Aramco’s preferred partner in India and “is committed” to a pact with the firm, without specifying further.

As recently as June this year, Reliance said it expected to finalize the investment deal with Aramco and appointed the latter’s chairman, Yasir Al-Rumayyan an independent director on its board.

That revived hopes of the deal coming through after Mukesh Ambani, Asia’s richest person, said in 2020 that the pandemic and its impact on fuel demand had created hurdles for the transaction.

Goldman calls oil's recent fall excessive, reiterates $85 forecast | Reuters

Goldman calls oil's recent fall excessive, reiterates $85 forecast | Reuters

The recent declines in oil prices were "excessive" given that the oil market remains in a deficit, Goldman Sachs said, adding that it reiterates its $85-per-barrel forecast for the fourth quarter.

Oil prices came off seven-week lows on Monday but they remained under pressure after Japan said it was weighing releasing oil reserves and as the worsening COVID-19 situation in Europe raised demand concerns. read more

"The magnitude of deficit is in fact on its own sufficient to absorb the current perceived headwinds to the oil bull thesis, with lower prices in fact reducing the odds of a strategic release," the bank said in a note dated Friday.

The investment bank also said concerns over Chinese growth, its property sector, and its impact on oil demand may have contributed to oil's fall but the move lower has "overshot" that risk.

#AbuDhabi's Mubadala expects unchanged investment strategy in 2022 | Reuters

Abu Dhabi's Mubadala expects unchanged investment strategy in 2022 | Reuters

Abu Dhabi state investor Mubadala (MUDEV.UL), which manages $243 billion in assets, expects no change in its investment strategy and themes in 2022, group chief executive Khaldoon Khalifa Al Mubarak said on Monday.

Areas such as renewables, technology and life sciences will continue to remain themes for the state investor, Al Mubarak said at a conference.

"Thematically there is no shift in terms of our strategy," Al Mubarak said. "From a short-term perspective, yes there are challenges ahead. I think inflation is creeping in many places."

With the world coming out of the COVID-19 pandemic there is strong liquidity globally, though potential increases to interest rates would have implications, he added.

Oil prices off 7-week lows but under pressure as release of reserves eyed | Reuters

Oil prices off 7-week lows but under pressure as release of reserves eyed | Reuters

Oil prices came off seven-week lows on Monday but remained under pressure after Japan said it was weighing releasing oil reserves and as the COVID-19 situation in Europe worsened, raising concerns about both oversupply and weak demand.

Brent lost 26 cents, or 0.3%, to $78.63 a barrel as of 0725 GMT and U.S. West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.2%, at $75.82 a barrel.

The market is in a state of flux as strategic petroleum reserves (SPR) releases are not fully priced in yet, said an oil trader in Singapore.

WTI and Brent prices hit their lowest since Oct. 1 earlier in the session. They slumped around 3% on Friday, declining for the fourth straight week for the first time since March 2020.