U.S. oil prices slump over 5% on vaccine efficacy worries | Reuters
Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 5%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.
The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.87, or 3.9%, to settle at $70.57 a barrel, after hitting an intraday low of $70.22, their lowest since August.
U.S. West Texas Intermediate (WTI) crude futures ended $3.77, or 5.4%, lower at $66.18 a barrel. The benchmark dropped to a session low of $64.43, also its lowest since August.
This month, oil prices have dropped by the most since March 2020, the start of widespread lockdowns because of the pandemic. Brent fell this month by 16.4%, while WTI fell 20.8%.
Tuesday 30 November 2021
OPEC+ Gets Warnings as Closely Watched Oil Grade Collapses - Bloomberg
OPEC+ Gets Warnings as Closely Watched Oil Grade Collapses - Bloomberg
The premium commanded by one of the Middle East’s most closely watched oil grades collapsed on Monday in a warning sign just days before the monthly OPEC+ meeting on supply.
Oman crude for January loading fell to a premium of about 60 cents a barrel over the regional benchmark on the Dubai Mercantile Exchange, Bloomberg calculations show. That’s down from $2.20 on Friday and more than $3 early last week. Trading volumes were lower than usual, according to DME data, with the contract’s expiry approaching.
Oman oil is a widely-referenced proxy for Middle East sales and Asian demand as it’s accepted by refineries in China, Japan, South Korea and Singapore.
The plunge is likely to catch the attention of OPEC+, which will decide on output levels for January on Thursday. It could give the cartel another reason to press the pause button on restoring supply as it comes on top of the new omicron virus variant and the U.S.-led coordinated release from national reserves.
The premium commanded by one of the Middle East’s most closely watched oil grades collapsed on Monday in a warning sign just days before the monthly OPEC+ meeting on supply.
Oman crude for January loading fell to a premium of about 60 cents a barrel over the regional benchmark on the Dubai Mercantile Exchange, Bloomberg calculations show. That’s down from $2.20 on Friday and more than $3 early last week. Trading volumes were lower than usual, according to DME data, with the contract’s expiry approaching.
Oman oil is a widely-referenced proxy for Middle East sales and Asian demand as it’s accepted by refineries in China, Japan, South Korea and Singapore.
The plunge is likely to catch the attention of OPEC+, which will decide on output levels for January on Thursday. It could give the cartel another reason to press the pause button on restoring supply as it comes on top of the new omicron virus variant and the U.S.-led coordinated release from national reserves.
Oil falls on vaccine efficacy worries; WTI down over 6% | Reuters
Oil falls on vaccine efficacy worries; WTI down over 6% | Reuters
Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 6%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.
The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.95, or 4%, to $70.49 a barrel by 12:12 p.m. EST (1712 GMT), after hitting an intraday low of $70.22, their lowest since August.
U.S. West Texas Intermediate (WTI) crude futures fell $4.30, or 6.2%, to $65.65 a barrel. The benchmark dropped to a session low of $65.23, also its lowest since August.
"The threat to oil demand is genuine," said Louise Dickson, senior oil markets analyst at Rystad Energy. "Another wave of lockdowns could result in up to 3 million bpd (barrels per day) of oil demand lost in the first quarter of 2022 as governments prioritize health safety over reopening plans, of which there is already telltale evidence, from Australia delaying its reopening to Japan banning foreign visitors."
Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 6%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.
The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.95, or 4%, to $70.49 a barrel by 12:12 p.m. EST (1712 GMT), after hitting an intraday low of $70.22, their lowest since August.
U.S. West Texas Intermediate (WTI) crude futures fell $4.30, or 6.2%, to $65.65 a barrel. The benchmark dropped to a session low of $65.23, also its lowest since August.
"The threat to oil demand is genuine," said Louise Dickson, senior oil markets analyst at Rystad Energy. "Another wave of lockdowns could result in up to 3 million bpd (barrels per day) of oil demand lost in the first quarter of 2022 as governments prioritize health safety over reopening plans, of which there is already telltale evidence, from Australia delaying its reopening to Japan banning foreign visitors."
Oil bound for gains as OPEC+ guards supply, but virus threat looms: Reuters poll | Reuters
Oil bound for gains as OPEC+ guards supply, but virus threat looms: Reuters poll | Reuters
Oil prices will stay elevated into next year as OPEC+ keeps a tight leash on supply despite U.S.-led strategic crude releases, a Reuters poll showed on Tuesday, but a COVID-19 resurgence fuelled by the Omicron variant could loom large over the outlook.
A survey of 39 economists and analysts - kicked off before Omicron grabbed headlines-- forecast Brent crude to average $71.25 a barrel in 2021, up from the $70.89 consensus in October and the $70.57 average this year. The 2022 Brent outlook was raised to $75.33 from $74.04.
This is the highest projection this year for the benchmark.
"We expect that OPEC+ will remain cautious in adding barrels, but does not want oil prices to move past $80 for any sustained period of time," said John Paisie, president of Stratas Advisors.
Oil prices will stay elevated into next year as OPEC+ keeps a tight leash on supply despite U.S.-led strategic crude releases, a Reuters poll showed on Tuesday, but a COVID-19 resurgence fuelled by the Omicron variant could loom large over the outlook.
A survey of 39 economists and analysts - kicked off before Omicron grabbed headlines-- forecast Brent crude to average $71.25 a barrel in 2021, up from the $70.89 consensus in October and the $70.57 average this year. The 2022 Brent outlook was raised to $75.33 from $74.04.
This is the highest projection this year for the benchmark.
"We expect that OPEC+ will remain cautious in adding barrels, but does not want oil prices to move past $80 for any sustained period of time," said John Paisie, president of Stratas Advisors.
#Dubai government considering Emirates IPO - airline president | Reuters
Dubai government considering Emirates IPO - airline president | Reuters
The Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market.
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
"Yes, there has been talk about it. Yes, there has been, perhaps a little bit more flesh on the whole subject than there has been in the past," Clark said in an interview for the upcoming Reuters Next conference when asked if a listing was a possibility.
"I'm waiting instructions as to how this is going to affect the Emirates Group. What the government of Dubai decides to do...is up to them, I would basically do as I am bid."
The Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market.
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
"Yes, there has been talk about it. Yes, there has been, perhaps a little bit more flesh on the whole subject than there has been in the past," Clark said in an interview for the upcoming Reuters Next conference when asked if a listing was a possibility.
"I'm waiting instructions as to how this is going to affect the Emirates Group. What the government of Dubai decides to do...is up to them, I would basically do as I am bid."
Most Gulf bourses tumble on vaccine efficacy concerns | Reuters
Most Gulf bourses tumble on vaccine efficacy concerns | Reuters
Most Gulf bourses ended lower on Tuesday, mirroring weakened global shares and oil prices, although the bourses in the United Arab Emirates (UAE) gained ahead of long holiday weekend.
A sudden burst of risk aversion gripped most major asset markets across the globe after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) lost 0.5%, with Al Rajhi Bank (1120.SE) and petrochemical firm Saudi Basic Industries Corp (2010.SE) both losing 2.1% each.
The Saudi index saw its first monthly loss this year.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) dropped 0.7%, weighed by a 3.4% slide in Qatar Islamic Bank (QISB.QA) and a 2.9% decline in petrochemical maker Industries Qatar (IQCD.QA).
Oil prices, a key catalyst for the Gulf's financial markets, tumbled more than 3%.
In Abu Dhabi, the index (.ADI) advanced 0.8%, reaching a record high, led by a 3% rise in Emirates Telecommunications Group (ETISALAT.AD). The index registered its seventeenth monthly gain in eighteen.
The UAE has approved Russia's Sputnik Light vaccine as a universal booster shot against COVID-19, Russian sovereign wealth fund RDIF said on Tuesday. read more
Dubai's main share index (.DFMGI) was up 0.4%, with top lender Emirates NBD Bank (ENBD.DU) adding 3.1%.
Separately, the Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market. read more
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.6%, ending two sessions of losses.
Egypt's M2 money supply rose by 17.58% year-on-year in October, data from the central bank showed on Tuesday.
A sudden burst of risk aversion gripped most major asset markets across the globe after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) lost 0.5%, with Al Rajhi Bank (1120.SE) and petrochemical firm Saudi Basic Industries Corp (2010.SE) both losing 2.1% each.
The Saudi index saw its first monthly loss this year.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) dropped 0.7%, weighed by a 3.4% slide in Qatar Islamic Bank (QISB.QA) and a 2.9% decline in petrochemical maker Industries Qatar (IQCD.QA).
Oil prices, a key catalyst for the Gulf's financial markets, tumbled more than 3%.
In Abu Dhabi, the index (.ADI) advanced 0.8%, reaching a record high, led by a 3% rise in Emirates Telecommunications Group (ETISALAT.AD). The index registered its seventeenth monthly gain in eighteen.
The UAE has approved Russia's Sputnik Light vaccine as a universal booster shot against COVID-19, Russian sovereign wealth fund RDIF said on Tuesday. read more
Dubai's main share index (.DFMGI) was up 0.4%, with top lender Emirates NBD Bank (ENBD.DU) adding 3.1%.
Separately, the Dubai government is considering an initial public offering of Emirates airline, the flagship carrier's President Tim Clark said on Monday, as authorities work to boost activity on the local stock market. read more
The emirate's government is planning to list 10 state-backed companies on its stock exchange and set up a 2 billion dirham ($545 million) market maker fund to encourage trading activity.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.6%, ending two sessions of losses.
Egypt's M2 money supply rose by 17.58% year-on-year in October, data from the central bank showed on Tuesday.
Natural Gas Futures Plunge 12% on Warmer US Weather Forecast - Bloomberg
Natural Gas Futures Plunge 12% on Warmer US Weather Forecast - Bloomberg
Natural gas futures plummeted 11% in the U.S. as forecasts shifted warmer through the middle of next month, allaying concern about tight domestic supplies amid a global shortage of the heating fuel.
The expiration of the December contract last week amplified the market’s volatility. Prices closed 7.5% higher on Friday as traders rushed to close out bearish positions before the contract rolled off the board. Contracts for January delivery fell 62.3 cents to settle at $4.854 per million British thermal units in New York on Monday.
Since late summer, volatility in gas prices has stayed well above the average for the past decade even after a drop from last month’s peak as traders try to gauge whether winter cold will strain inventories.
Late-autumn cold in Europe and Asia has sparked fears that global gas shortages will worsen as nations struggle to refill stockpiles. But so far, there’s little sign of a similar situation developing in the U.S., even as shale producers keep a lid on output and the country’s exports of liquefied natural gas surge to a record. U.S. gas stockpiles are only 1.6% below normal for the time of year.
The so-called widowmaker spread between March and April futures, essentially a bet on how tight inventories will be at the end of the northern hemisphere’s winter, shrank to 41.5 cents, the narrowest since June, after widening to $1.909 last month.
Natural gas futures plummeted 11% in the U.S. as forecasts shifted warmer through the middle of next month, allaying concern about tight domestic supplies amid a global shortage of the heating fuel.
The expiration of the December contract last week amplified the market’s volatility. Prices closed 7.5% higher on Friday as traders rushed to close out bearish positions before the contract rolled off the board. Contracts for January delivery fell 62.3 cents to settle at $4.854 per million British thermal units in New York on Monday.
Since late summer, volatility in gas prices has stayed well above the average for the past decade even after a drop from last month’s peak as traders try to gauge whether winter cold will strain inventories.
Late-autumn cold in Europe and Asia has sparked fears that global gas shortages will worsen as nations struggle to refill stockpiles. But so far, there’s little sign of a similar situation developing in the U.S., even as shale producers keep a lid on output and the country’s exports of liquefied natural gas surge to a record. U.S. gas stockpiles are only 1.6% below normal for the time of year.
The so-called widowmaker spread between March and April futures, essentially a bet on how tight inventories will be at the end of the northern hemisphere’s winter, shrank to 41.5 cents, the narrowest since June, after widening to $1.909 last month.
ByteDance Backs #Dubai Startup iMile Delivery Building Logistics Chain to China - Bloomberg
ByteDance Backs Dubai Startup iMile Delivery Building Logistics Chain to China - Bloomberg
TikTok parent ByteDance Ltd. has invested in Dubai-based iMile Delivery LLC as part of the first major fundraising by the courier startup that services Chinese online vendors, according to people familiar with the matter.
The company’s series A financing round, one of the Middle East’s largest by a female founder to date, raised $40 million and valued iMile at $350 million, according to a statement. ByteDance committed around $10 million at a lower valuation, the people said, asking not to be named because the information isn’t public.
Beijing-based ByteDance declined to comment. iMile wouldn’t disclose the names of investors or the amounts they have put into the company.
Consumer habits have shifted during coronavirus lockdowns that kept people at home and glued to their devices. Even before the pandemic, e-commerce activity has already taken off in the Middle East, where Amazon Inc. vies for dominance with its regional rival Noon.com.
TikTok parent ByteDance Ltd. has invested in Dubai-based iMile Delivery LLC as part of the first major fundraising by the courier startup that services Chinese online vendors, according to people familiar with the matter.
The company’s series A financing round, one of the Middle East’s largest by a female founder to date, raised $40 million and valued iMile at $350 million, according to a statement. ByteDance committed around $10 million at a lower valuation, the people said, asking not to be named because the information isn’t public.
Beijing-based ByteDance declined to comment. iMile wouldn’t disclose the names of investors or the amounts they have put into the company.
Consumer habits have shifted during coronavirus lockdowns that kept people at home and glued to their devices. Even before the pandemic, e-commerce activity has already taken off in the Middle East, where Amazon Inc. vies for dominance with its regional rival Noon.com.
Emirates warns Omicron could cause 'significant traumas' for aviation industry | Reuters
Emirates warns Omicron could cause 'significant traumas' for aviation industry | Reuters
A major hit to the peak December travel season because of the Omicron variant of the coronavirus would cause "significant traumas" in the global aviation business, Emirates airline President Tim Clark said on Tuesday.
Clark said Emirates was working on the basis the newly discovered variant could be dealt with effectively by vaccines, but acknowledged the next few weeks would prove critical for the industry as scientists assess the risks.
"I would say probably by the end of December, we'll have a much clearer position," Clark said in an interview for the Reuters Next conference.
"But in that time, December is a very important month for the air travel business," he added. "If that is lost, or the winter is lost to a lot of carriers, there will be significant traumas in the business, certainly the aviation business and the periphery."
A major hit to the peak December travel season because of the Omicron variant of the coronavirus would cause "significant traumas" in the global aviation business, Emirates airline President Tim Clark said on Tuesday.
Clark said Emirates was working on the basis the newly discovered variant could be dealt with effectively by vaccines, but acknowledged the next few weeks would prove critical for the industry as scientists assess the risks.
"I would say probably by the end of December, we'll have a much clearer position," Clark said in an interview for the Reuters Next conference.
"But in that time, December is a very important month for the air travel business," he added. "If that is lost, or the winter is lost to a lot of carriers, there will be significant traumas in the business, certainly the aviation business and the periphery."
Oil slumps on jitters over vaccine efficacy | Reuters
Oil slumps on jitters over vaccine efficacy | Reuters
Oil prices tumbled more than 3% on Tuesday after Moderna's CEO cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets.
The head of drugmaker Moderna told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.32, or 3.2%, to $71.12 a barrel at 0729 GMT after slipping to an intraday low of $70.52, the lowest since Sept. 1. U.S. West Texas Intermediate (WTI) crude futures fell $2.15, or 3.1%, to $67.80 a barrel, off a session low of $67.06, the weakest since Aug. 26.
The Moderna CEO's comments were just a catalyst for the market which was already weak, said a Singapore oil trader who declined to be named due to company policy.
Oil prices tumbled more than 3% on Tuesday after Moderna's CEO cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets.
The head of drugmaker Moderna told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more
Brent crude futures fell $2.32, or 3.2%, to $71.12 a barrel at 0729 GMT after slipping to an intraday low of $70.52, the lowest since Sept. 1. U.S. West Texas Intermediate (WTI) crude futures fell $2.15, or 3.1%, to $67.80 a barrel, off a session low of $67.06, the weakest since Aug. 26.
The Moderna CEO's comments were just a catalyst for the market which was already weak, said a Singapore oil trader who declined to be named due to company policy.
Most Gulf bourses slide on vaccine efficacy worries | Reuters
Most Gulf bourses slide on vaccine efficacy worries | Reuters
Most stock markets in the Gulf wobbled lower in early trade on Tuesday, in line with subdued Asian shares and oil prices, with the Dubai index leading the losses ahead of a long weekend.
A sudden burst of risk aversion gripped most major asset markets across Asia after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hit by a 1.2% fall in Al Rajhi Bank (1120.SE) and a 1.6% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).
Oil giant Saudi Aramco (2222.SE) expects its Jafurah gas field to produce approximately 2 billion cubic feet per day of gas by 2030, CEO Amin Nasser said on Monday at a conference on the commercialisation of unconventional resources. read more
Shares of Aramco, however, were unchanged.
Dubai's main share index (.TASI) declined 1%, weighed down by a 1.3% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Elsewhere, budget airline Air Arabia (AIRA.DU) retreated more than 2%.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) eased 0.2%, with Qatar Islamic Bank (QISB.QA) losing 0.7%.
Oil prices, a key catalyst for the Gulf's financial markets, fell more than 3%, giving up early gains.
In Abu Dhabi, the index (.ADI) gained 0.4%, led by a 1.1% rise in conglomerate International Holding Co (IHC) (IHC.AD).
IHC's subsidiary Multiply Group will list directly on the Abu Dhabi Securities Exchange on Dec. 5. read more
Direct listings allow companies to list on the stock market without a traditional and more costly initial public offering.
Most stock markets in the Gulf wobbled lower in early trade on Tuesday, in line with subdued Asian shares and oil prices, with the Dubai index leading the losses ahead of a long weekend.
A sudden burst of risk aversion gripped most major asset markets across Asia after the head of drugmaker Moderna (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been previously. read more
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hit by a 1.2% fall in Al Rajhi Bank (1120.SE) and a 1.6% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).
Oil giant Saudi Aramco (2222.SE) expects its Jafurah gas field to produce approximately 2 billion cubic feet per day of gas by 2030, CEO Amin Nasser said on Monday at a conference on the commercialisation of unconventional resources. read more
Shares of Aramco, however, were unchanged.
Dubai's main share index (.TASI) declined 1%, weighed down by a 1.3% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Elsewhere, budget airline Air Arabia (AIRA.DU) retreated more than 2%.
The World Health Organization said on Monday Omicron posed a very high risk of infection surges, and several countries stepped up travel curbs. It is still unclear how severe the new variant is and whether it can resist existing vaccines. read more
The Qatari benchmark (.QSI) eased 0.2%, with Qatar Islamic Bank (QISB.QA) losing 0.7%.
Oil prices, a key catalyst for the Gulf's financial markets, fell more than 3%, giving up early gains.
In Abu Dhabi, the index (.ADI) gained 0.4%, led by a 1.1% rise in conglomerate International Holding Co (IHC) (IHC.AD).
IHC's subsidiary Multiply Group will list directly on the Abu Dhabi Securities Exchange on Dec. 5. read more
Direct listings allow companies to list on the stock market without a traditional and more costly initial public offering.