Oil Holds Gains Near $72 as Stockpiles Dip, Omicron Fears Abate - Bloomberg

Oil Holds Gains Near $72 as Stockpiles Dip, Omicron Fears Abate - Bloomberg

PRICES
West Texas Intermediate for January delivery rose 31 cents to settle at $72.36 a barrel in New York. Brent for February settlement gained 38 cents to settle at $75.82 a barrel.

Oil eked out a gain as research indicated that existing Covid-19 vaccines are effective against the new virus variant, quelling fears of plunge in fuel demand, while U.S. crude supplies fell slightly.

Futures in New York closed up 0.4%, trading near $72 a barrel, on Wednesday. Pfizer Inc. and BioNTech SE said initial lab studies show a third dose of their shots restores protection against the new variant. Meanwhile, domestic crude inventories fell 241,000 barrels last week, government data showed.

Crude prices have rebounded after falling into a bear market last week as nations began implementing lockdowns in response to the omicron variant, stoking concern about the impact to fuel demand. But so far, data show little sign of a significant hit to oil consumption, and OPEC+ has kept a floor under prices by keeping the door open to a possible reversal of its planned supply hike.

“Cautious optimism is prevailing that the hit from omicron on the global economy and thus energy demand will be less than initially feared,” said Stephen Brennock, an analyst at brokerage PVM Oil Associates Ltd.

Oil Holds Near $72 After U.S. Crude Stocks Show Slight Dip - Bloomberg

Oil Holds Near $72 After U.S. Crude Stocks Show Slight Dip - Bloomberg

Oil held steady as research indicated that existing Covid-19 vaccines are effective against the new virus variant, supporting the outlook for fuel consumption, while U.S. crude supplies saw a slight decrease.

Futures in New York held near $72 a barrel on Wednesday. Domestic crude inventories fell 241,000 barrels last week, government data showed -- far less than 3.1-million-barrel decrease the industry-funded American Petroleum Institute reported on Tuesday. Stockpiles rose by 2.3 million barrels at the nation’s biggest storage hub at Cushing, Oklahoma, the most since February.

“A number over two million is never good for energy market,” said Bob Yawger, director of the futures division at Mizuho Securities USA. Inventory declines at Cushing in October and early November helped propel oil to multi-year highs, and the reversal of that trend means the probability of futures reaching those levels again in the short term has “basically evaporated.”

Mubadala acquires 1.9% stake in Sibur, Russia’s largest petrochemicals company

Mubadala acquires 1.9% stake in Sibur, Russia’s largest petrochemicals company

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, acquired 1.9 per cent stake in petrochemicals company Sibur for an undisclosed sum, marking the fund’s largest investment in Russia.

The deal takes forward the relationship between the two, which was forged after Mubadala invested in Sibur’s trans-shipment terminal in Ust-Luga in 2015.

“Mubadala and Sibur have had a partnership since 2015 and now we are excited to become shareholders in the company. We have a lot of confidence in Sibur’s ability to navigate and transition the company to low-carbon economy and create lasting value for its investors,” Faris Al Mazrui, head of Mubadala’s Russia and CIS Investment Programme, said in a statement on Wednesday.

Mubadala picked Sibur for its past performance in delivering complex large-scale projects, he said.

“Sibur’s [recent] merger with TAIF, [another Russian petrochemical major], creates an even better-positioned player in the market that can capitalise on synergies and development opportunities,” Mr Al Mazrui said.

#Saudi PIF aims to invest $5bln in #Oman | ZAWYA MENA Edition

Saudi PIF aims to invest $5bln in Oman | ZAWYA MENA Edition

Saudi Arabia’s Public Investment Fund is planning to invest SR18.7 billion ($5 billion) in Oman, according to a statement from the two countries.

The plan was announced after the visit of Saudi Crown Prince Mohammed bin Salman to his Middle East neighbor.

There are no details yet as to what industries or companies the money will be invested in.

The announcement comes after the two countries signed 13 memoranda of understanding, reportedly worth more than $30 billion and covering a number of sectors.

The agreements were signed by Omani companies fully owned by the sultanate’s investment authority, the Saudi Press Agency and Omani state TV reported on Monday.

#AbuDhabi Securities Exchange announces new trading week for 2022 | ZAWYA MENA Edition

Abu Dhabi Securities Exchange announces new trading week for 2022  | ZAWYA MENA Edition

The Abu Dhabi Securities Exchange (ADX) announced on Wednesday that it will follow a new trading schedule next year in view of the UAE’s decision to shift to a Saturday-Sunday weekend.

Effective January 3, 2022, the local bourse will operate from Monday to Friday, with the trading hours still between 10 am and 3pm, ADX said in a statement.

“[ADX] is amending its trading week to Monday through Friday, effective 3 January 2022. Trading hours will remain unchanged, opening at 10:00am and closing at 3:00pm,” the statement said.

“The exchange’s new trading week follows the recent announcement made by the UAE government to adopt a four-and-a-half day working week.”

Mubadala invests in US enterprise software company Medallia

Mubadala invests in US enterprise software company Medallia

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, has invested in US-based enterprise software company Medallia as part of its efforts to pivot towards the industries of the future.

The minority investment in the customer experience management specialist took place in collaboration with Thoma Bravo, which recently took Medallia private, Mubadala said on Wednesday. It did not disclose the value of investment.

Thoma Bravo took San Francisco-based Medallia private in October in an all-cash transaction valued at $6.4 billion.

Medallia captures experience data from customers and employees across several channels. The data is then analysed using the company’s proprietary artificial intelligence and machine learning technology to come up with predictive insights to drive business actions and outcomes.

#UAE Redefines its Weekend - Bloomberg video

UAE Redefines its Weekend - Bloomberg

Ben Brown, Partner at Addleshaw Goddard LLP discusses how the impact of the planned weekend switch to Saturday-Sunday will impact the private sector. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East."

#Saudi Stock Exchange CEO: IPO Pipeline Deeper Than Ever - Bloomberg video

#Saudi Stock Exchange CEO: IPO Pipeline Deeper Than Ever - Bloomberg video

Saudi Stock Exchange CEO Khalid al-Hussan discusses the Saudi Tadawul Group IPO and the kingdom’s pipeline of companies looking to come to the public market. He speaks with Manus Cranny on “Bloomberg Surveillance Early Edition.”

#Dubai’s Aramex Pauses MNG Buyout Talks After Change in Ownership - Bloomberg

Dubai’s Aramex Pauses MNG Buyout Talks After Change in Ownership - Bloomberg

Aramex PJSC paused talks to acquire Turkish delivery company MNG Kargo after a change in the share ownership of the Dubai-based logistics firm, according to people familiar with the matter.

The discussions were paused after Geopost SA bought a 24.9% stake in Aramex in October, the people said, asking not to be identified because the discussions are private. Geopost already has a partnership with Yurtici Kargo, a competitor to MNG in the Turkish market. The proposed deal to buy MNG, valued reportedly at as much as $500 million, may still be possible, one of the people said.

Aramex, which didn’t immediately respond to a request for comment, said on Dec. 5 that it would discuss recent updates on the potential acquisition of MNG Kargo in its board meeting on Thursday. MNG Kargo declined to comment.

Geopost is only a shareholder in Aramex and doesn’t comment on its projects, said a spokeswoman for the Geopost/DPDgroup, a unit of the French postal service La Poste.

#UAE to allow establishment of acquisition companies | Reuters

UAE to allow establishment of acquisition companies | Reuters

The United Arab Emirates will allow the creation of companies for acquisition or merger purposes, the Economy Ministry said on twitter.

The move is part of a series of amendments to commercial companies law aimed at facilitating business and attracting investment into the Gulf state.

Other changes include allowing branches of licensed foreign companies to transform into UAE commercial firms, as well as eliminating nationality requirements for members of companies' boards of directors, the ministry said.

Previously, the chairman and the majority of the members of a company's board of directors were required to be UAE nationals.

Oil Steady as Vaccine Impact on Omicron Buoys Demand Outlook - Bloomberg

Oil Steady as Vaccine Impact on Omicron Buoys Demand Outlook - Bloomberg

PRICES
West Texas Intermediate for January was at $72.21 a barrel at 7:35 a.m. in New York. Brent for February settlement gained 0.4% to $75.75 a barrel on the ICE Futures Europe exchange. Brent’s prompt timespread was 35 cents in backwardation, compared with $1.34 at the start of last month.

Gulf bourses fall on weak oil prices; #Dubai rises | Reuters

Gulf bourses fall on weak oil prices; Dubai rises | Reuters

Most stock markets in the Gulf ended lower on Wednesday, weighed by falling oil prices as investors assessed the impact of the Omicron coronavirus variant on the global economy and fuel demand.

Brent crude futures were up 32 cents, or 0.4%, at $75.76 a barrel at 1220 GMT, after earlier falling by more than $1.

Saudi Arabia's benchmark index (.TASI) dropped 1.1%, with Al Rajhi Bank (1120.SE) losing 2.3% and Banque Saudi Fransi (1050.SE) sliding 4.5%.

The Saudi-led coalition fighting in Yemen said on Tuesday it bombed military targets in the capital Sanaa after the Iran-aligned Houthis launched ballistic missiles and armed drones into Saudi Arabia, including at Aramco oil facilities in Jeddah. read more

The tit-for-tat violence has escalated dramatically over the last months despite efforts by the United States and the United Nations to engineer a ceasefire in the seven-year-old war that has caused a dire humanitarian crisis. read more

On the other hand, shares of Saudi Tadawul Group (1111.SE), the kingdom's stock exchange operator, gained more than 12% in its stock market debut.

Tadawul had set its initial public offering price at 105 riyals a piece at the top end of the indicated range, raising 3.78 billion riyals ($1.01 billion) in the deal.

Dubai's main share index (.DFMGI) added 0.1%, gaining for a sixth consecutive session, helped by a 2.2% rise in top lender Emirates NBD Bank (ENBD.DU).

The United Arab Emirates will shift to a working week of four and half days with a Saturday-Sunday weekend from the start of next year to better align its economy with global markets, but private companies will be free to choose their own working week. read more

The Dubai bourse ended higher as the switch to the new weekend scheme could help attract new foreign capital to the country and the stock market, said Wael Makarem, senior market strategist at Exness.

"The initiative should create more overlap with world markets and could facilitate business and investment."

In Abu Dhabi, the index (.ADI) gave up early gains to close 0.3% lower.

Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 0.8%, with Fawry for Banking Technology and Electronic Payment (FWRY.CA) losing 6.4%.

#UAE New Weekend: Stock Markets to Follow Move to Monday-Friday Week - Bloomberg video

UAE New Weekend: Stock Markets to Follow Move to Monday-Friday Week - Bloomberg

Stock exchanges in the United Arab Emirates will start operating Monday-to-Friday following the Gulf country’s decision to switch its working week, a government official said.

The UAE is planning to change its working week for government employees, breaking ranks with the rest of the Gulf region and accelerating a push to draw in international investment and business by aligning with global markets. Instead of the current Sunday-to-Thursday working week, it will adopt a 4 1/2-day working week, with Friday -- a holy day in Islam -- being a half day.

The exchanges “will operate Monday-Friday and Friday will be a full business day for the stock markets,” Abdulrahman Al Awar, director general of the Federal Authority for Government Human Resources, said in a Bloomberg TV interview Wednesday. “The decision is made to invest in the competitiveness of the UAE economy and to enhance productivity.”

The change in equity-market operating hours aligns the UAE with much of the rest of the world but distances it from regional competitors such as Saudi Arabia, leaving traders and investors with the challenge of finding a balance between the two. The Saudi bourse, the largest in the Middle East, trades Sunday through Thursday.

#Dubai regulator fines Emirates REIT manager over asset report | Reuters

Dubai regulator fines Emirates REIT manager over asset report | Reuters

Dubai Financial Services Authority (DFSA) said on Wednesday it had fined Equitativa, the manager of a sharia-compliant real estate investment trust, $210,000 for misleading statements regarding one of its assets.

Equitativa made misleading statements on two occasions in 2018 regarding one of Emirates REIT's 11 assets, a school in Dubai Investment Park, the DFSA said.

"The DFSA also identified concerns around Equitativa's fund valuation practices," it said in a statement, adding that the fund manager had agreed to pay the fine.

Equitativa said in a statement that the settlement brought all investigations to a close and it could "now turn its full attention to reinvigorating Emirates REIT and accelerating its plans for growth".

#SaudiArabia Tadawul Stock Exchange Soars After IPO - Bloomberg

Saudi Arabia Tadawul Stock Exchange Soars After IPO - Bloomberg

Saudi Tadawul Group surged on its trading debut in Riyadh after the stock exchange raised $1 billion from a heavily oversubscribed initial public offering.

The shares opened at 115.4 riyals on Wednesday before rising as much as 22% to 127.6 riyals. Tadawul set the IPO price at 105 riyals per share, the top of an indicative range, after attracting 458 billion riyals ($122 billion) of orders from investors.

The IPO, the kingdom’s second-biggest this year after the $1.2 billion listing of ACWA Power International in October, comes as countries in the Middle East step up efforts to sell shares in private companies and boost liquidity on their stock markets.

Saudi Arabia has been the leader in the region, with the listings of ACWA Power and Saudi Telecom Co.’s internet-services unit -- both drawing overwhelming investor demand and surging by the daily limit on their first day of trade. Abu Dhabi has also seen an IPO boom, while Dubai has announced plans to list some 10 state-owned companies.

Oil prices ease as investors wait for more on Omicron's potential impact | Reuters

Oil prices ease as investors wait for more on Omicron's potential impact | Reuters

Oil prices eased on Wednesday, taking a breather after gains earlier this week, as investors waited for more information on to what extent the Omicron coronavirus variant will likely hurt the global economy and fuel demand.

Brent crude futures dropped 40 cents, or 0.5%, to $75.04 a barrel at 0748 GMT, after settling 3.2% higher on Tuesday. U.S. West Texas Intermediate crude was at $71.50 a barrel, down 55 cents or 0.8% having gained 3.7% in the previous session.

After a collapse last week, oil prices rebounded earlier this week on rising optimism that Omicron will not cause major economic damage.

"The recovery run took a break as investors tried to confirm full impact of the Omicron variant before buying further," said Satoru Yoshida, a commodity analyst with Rakuten Securities.

#Dubai bourse rises for sixth session; #Saudi falls | Reuters

Dubai bourse rises for sixth session; Saudi falls | Reuters

Dubai's stock market rose in early trade on Wednesday and was headed for a sixth straight session of gains, while weak oil prices weighed on Saudi shares.

Dubai's main share index (.DFMGI) gained 0.8%, boosted by a 5.1% jump in Emirates Integrated Telecommunications Company (DU.DU).

Dubai is planning an initial public offering of business park operator TECOM Group on the local stock exchange, the emirate's Media Office reported on Tuesday. read more

The Dubai government last month announced plans to list 10 state-backed companies on its stock market as part of plans to boost activity on the local bourse.

It also said it plans to set up a 2 billion dirham market maker fund to encourage more private companies to list.

Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 0.4% dip in Al Rajhi Bank (1120.SE) and a 1.4% decline in Saudi National Bank (1180.SE), the kingdom's biggest lender.

Oil prices, a key catalyst for the Gulf's financial markets, eased after two days of gains, as investors waited for an assessment of the full impact of the Omicron coronavirus variant on global economy and fuel demand as well as the effectiveness of existing vaccines.

Shares of Saudi Tadawul Group (1111.SE), the kingdom's stock exchange operator, rose as much as 20% to 126.6 riyals in their stock market debut.

Tadawul had set its initial public offering price at 105 riyals a piece at the top end of the indicated range, raising 3.78 billion riyals ($1.01 billion) in the deal.

In Abu Dhabi, the index (.ADI) rose 0.5%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) putting on 1.3%.

Meanwhile, the United Arab Emirates will shift to a working week of four and half days with a Saturday-Sunday weekend from the start of next year to better align its economy with global markets, but private companies will be free to choose their own working week. read more

The Qatari index (.QSI) eased 0.1%, weighed down by a 0.7% fall in Qatar Islamic Bank (QISB.QA).