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Oil climbed with equities as traders resumed buying risk assets following a two-day rout. Futures in New York closed up 3.7%, trading around $71 a barrel. Crude rallied as U.K. Prime Minister Boris Johnson said he doesn’t plan to impose new restrictions on activities before Christmas. Volatility has surged as the market tries to assess the severity of the new strain’s impact, with price moves amplified by low end-of-year trading volumes. “Folks are booking their profits or end-of-year losses and just waiting for the restart after the new year,” said John Kilduff, founding partner at Again Capital LLC. Crude’s daily gains come against the backdrop of surging gas and power prices in Europe, with France even burning fuel oil in a bid to keep the lights on. Earlier this year, the oil market got a boost from expectations that there would be a major switch in power consumption toward crude and petroleum products. |
Tuesday 21 December 2021
Oil Futures Rise With Equities in Volatile Year-End Trading - Bloomberg
Oil Futures Rise With Equities in Volatile Year-End Trading - Bloomberg
Gazprom expects dividend on 2021 results at more than 45 rbls/share | Reuters
Gazprom expects dividend on 2021 results at more than 45 rbls/share | Reuters
Russian energy giant Gazprom expects to pay dividend on 2021 results of more than 45 roubles ($0.6087) per share thanks to high oil and gas prices, Gazprom's Deputy CEO Famil Sadygov said on Tuesday.
State-controlled Gazprom enjoyed record-high quarterly earnings in the July - September quarter, raking in almost $8 billion in net income thanks to rocketing gas prices in Europe, its key source of revenues. read more
Gazprom's operations in Europe, including completion of the Nord Stream 2 gas pipeline, which is yet to be certified by Germany, have been in sharp focus amid a broader political standoff between Russia and the West.
Sadygov reiterated that Gazprom expects record-high earnings in 2021, which will be surpassed in 2022, when core profit of the Gazprom group, which includes gas, oil and power assets, is set to rise to over 4 trillion roubles, while net income is seen rising to more than 2.5 trillion roubles.
Russian energy giant Gazprom expects to pay dividend on 2021 results of more than 45 roubles ($0.6087) per share thanks to high oil and gas prices, Gazprom's Deputy CEO Famil Sadygov said on Tuesday.
State-controlled Gazprom enjoyed record-high quarterly earnings in the July - September quarter, raking in almost $8 billion in net income thanks to rocketing gas prices in Europe, its key source of revenues. read more
Gazprom's operations in Europe, including completion of the Nord Stream 2 gas pipeline, which is yet to be certified by Germany, have been in sharp focus amid a broader political standoff between Russia and the West.
Sadygov reiterated that Gazprom expects record-high earnings in 2021, which will be surpassed in 2022, when core profit of the Gazprom group, which includes gas, oil and power assets, is set to rise to over 4 trillion roubles, while net income is seen rising to more than 2.5 trillion roubles.
Oil prices rise but Omicron worries linger | Reuters
Oil prices rise but Omicron worries linger | Reuters
Oil prices rebounded on Tuesday after a sharp fall in the previous session as investors' appetite for risk improved, although they remained cautious amid the rapid spread of the Omicron coronavirus variant across the globe.
Brent crude was up $1.51, or 2.1%, at $73.03 a barrel by 9:42 a.m. ET (1442 GMT), and U.S. West Texas Intermediate (WTI) crude rose $1.72, or 2.5%, to $70.33 a barrel.
"After a rough couple of days, crude prices are rebounding as much of the COVID wall of worry has been priced in," said Edward Moya, senior analyst at OANDA.
Countries across Europe were considering new curbs on movement as the fast-moving Omicron variant swept the world days before Christmas, throwing travel plans into chaos and unnerving financial markets.
Oil prices rebounded on Tuesday after a sharp fall in the previous session as investors' appetite for risk improved, although they remained cautious amid the rapid spread of the Omicron coronavirus variant across the globe.
Brent crude was up $1.51, or 2.1%, at $73.03 a barrel by 9:42 a.m. ET (1442 GMT), and U.S. West Texas Intermediate (WTI) crude rose $1.72, or 2.5%, to $70.33 a barrel.
"After a rough couple of days, crude prices are rebounding as much of the COVID wall of worry has been priced in," said Edward Moya, senior analyst at OANDA.
Countries across Europe were considering new curbs on movement as the fast-moving Omicron variant swept the world days before Christmas, throwing travel plans into chaos and unnerving financial markets.
Most major Gulf bourses fall on Omicron worries | Reuters
Most major Gulf bourses fall on Omicron worries | Reuters
Most major stock markets in the Gulf ended lower on Tuesday, as investors worried over surging cases of the Omicron coronavirus variant.
As Omicron remains the biggest cause for investor caution, economic growth forecasts are being reviewed lower, Farah Mourad, senior market analyst of XTB MENA, said.
In Abu Dhabi, the index (.ADI) dropped 1.2%, dragged down by a 5% fall in telecoms firm Etisalat (ETISALAT.AD) and a 0.5% decrease in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) edged down 0.1%, hit by a 3.2% fall in Emirates NBD Bank (ENBD.DU).
The Central Bank of the United Arab Emirates said on Monday it would use new criteria to supervise banks' exposure to real estate, a crucial contributor the Gulf state's economy that has been sluggish for years. read more
The regulator will give banks one year to enhance their practices to meet the requirements, starting from Dec. 30.
The Qatari index (.QSI) eased 0.1%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) losing 0.5%.
Separately, Qatar plans to invest at least $10 billion in U.S. ports and has approached international banks for financing, three finance sources said. read more
Saudi Arabia's benchmark index (.TASI) gained 0.8%, with Al Rajhi Bank (1120.SE) closing 1.6% higher and Saudi National Bank (1180.SE), the Gulf's largest lender, rising 1%.
Oil prices rebounded after a sharp fall in the previous session, although the market was still cautious because of the rapid spread of Omicron.
Compliance by the OPEC+ group of producers with oil production cuts rose to 117% in November from 116% a month earlier, two sources from the group told Reuters, indicating output levels remain well below agreed targets. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.4%, with Talaat Mostafa Group Holding (TMGH.CA) gaining 2%.
Most major stock markets in the Gulf ended lower on Tuesday, as investors worried over surging cases of the Omicron coronavirus variant.
As Omicron remains the biggest cause for investor caution, economic growth forecasts are being reviewed lower, Farah Mourad, senior market analyst of XTB MENA, said.
In Abu Dhabi, the index (.ADI) dropped 1.2%, dragged down by a 5% fall in telecoms firm Etisalat (ETISALAT.AD) and a 0.5% decrease in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) edged down 0.1%, hit by a 3.2% fall in Emirates NBD Bank (ENBD.DU).
The Central Bank of the United Arab Emirates said on Monday it would use new criteria to supervise banks' exposure to real estate, a crucial contributor the Gulf state's economy that has been sluggish for years. read more
The regulator will give banks one year to enhance their practices to meet the requirements, starting from Dec. 30.
The Qatari index (.QSI) eased 0.1%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) losing 0.5%.
Separately, Qatar plans to invest at least $10 billion in U.S. ports and has approached international banks for financing, three finance sources said. read more
Saudi Arabia's benchmark index (.TASI) gained 0.8%, with Al Rajhi Bank (1120.SE) closing 1.6% higher and Saudi National Bank (1180.SE), the Gulf's largest lender, rising 1%.
Oil prices rebounded after a sharp fall in the previous session, although the market was still cautious because of the rapid spread of Omicron.
Compliance by the OPEC+ group of producers with oil production cuts rose to 117% in November from 116% a month earlier, two sources from the group told Reuters, indicating output levels remain well below agreed targets. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.4%, with Talaat Mostafa Group Holding (TMGH.CA) gaining 2%.
Attracting SMEs & Tourists to #UAE Amid the Pandemic - Bloomberg video
Attracting SMEs & Tourists to UAE Amid the Pandemic - Bloomberg
Ahmad Belhoul Al Falasi, the UAE's Minister for Entrepreneurship and SMEs, discusses how recent reforms aim to make the Emirates an appealing destination for entrepreneurs and tourists. (Source: Bloomberg)
MIDEAST DEBT Gulf sovereigns seen issuing less in 2022, corporate bond sales to rise | Reuters
MIDEAST DEBT Gulf sovereigns seen issuing less in 2022, corporate bond sales to rise | Reuters
Overall debt issuance from the Gulf is expected to decline next year, as sovereigns issue less bonds due to improved government finances, but a rise in corporate debt sales will cap the downside, bankers said.
The trend will continue from this year, when corporate bond sales outpaced supply from Gulf sovereigns, whose finances have been buoyed by lofty oil prices. Sovereign issues dropped by 13.6% year-over-year in 2021 while corporate debt sales climbed 8.1%, according to Kuwait-based asset manager Kamco Invest.
"If we remain at these somewhat elevated oil price levels, then the sovereign funding requirements should go down," one of the bankers said.
Global crude oil futures have risen nearly 40% so far this year and are currently around $72 a barrel as the global economic recovery fuelled oil demand.
Overall debt issuance from the Gulf is expected to decline next year, as sovereigns issue less bonds due to improved government finances, but a rise in corporate debt sales will cap the downside, bankers said.
The trend will continue from this year, when corporate bond sales outpaced supply from Gulf sovereigns, whose finances have been buoyed by lofty oil prices. Sovereign issues dropped by 13.6% year-over-year in 2021 while corporate debt sales climbed 8.1%, according to Kuwait-based asset manager Kamco Invest.
"If we remain at these somewhat elevated oil price levels, then the sovereign funding requirements should go down," one of the bankers said.
Global crude oil futures have risen nearly 40% so far this year and are currently around $72 a barrel as the global economic recovery fuelled oil demand.
Riyadh will flip from No-Go to FOMO for business | Reuters
Riyadh will flip from No-Go to FOMO for business | Reuters
Riyadh may be about to pivot from global no-go to FOMO. The Saudi Arabian capital has long been seen by international bankers and executives as a place to visit for work, before weekending in the UAE’s more western-friendly hub, Dubai. That crowd may develop a nagging fear of missing out.
Economically, Saudi dwarfs regional Gulf peers. Its $700 billion GDP in 2020 was double the UAE’s, with three times the population. Its domestic stock market’s $2.6 trillion market capitalisation is over four times those of Abu Dhabi, Dubai and Qatar combined.
There’s also loads of work. In the next four years, Saudi wants to raise $55 billion via privatisations read more , and that doesn’t include further asset or equity sales by $1.9 trillion oil giant Aramco (2222.SE). Nor does it encompass disposals by the $450 billion Public Investment Fund, which will shortly sell down a big chunk of its 70% stake in $61 billion Saudi Telecom Company (7010.SE). Crown Prince Mohammed bin Salman envisages $3.2 trillion of public and private investment over the next decade to shift the domestic economy away from oil. read more
Big western banks are keeping quiet about whether they will follow the 44 multinationals, including Novartis (NOVN.S), Unilever (ULVR.L) and Deloitte, and establish regional headquarters in Riyadh. Part of that is a desire not to offend the UAE, where Dubai harbours fee-generative privatisation plans of its own. Riyadh’s relative lack of good schools remains an issue. And it’s also only three years since the crown prince faced international condemnation for the murder of Jamal Khashoggi in Istanbul, which U.S. intelligence agencies believe he sanctioned. read more
Riyadh may be about to pivot from global no-go to FOMO. The Saudi Arabian capital has long been seen by international bankers and executives as a place to visit for work, before weekending in the UAE’s more western-friendly hub, Dubai. That crowd may develop a nagging fear of missing out.
Economically, Saudi dwarfs regional Gulf peers. Its $700 billion GDP in 2020 was double the UAE’s, with three times the population. Its domestic stock market’s $2.6 trillion market capitalisation is over four times those of Abu Dhabi, Dubai and Qatar combined.
There’s also loads of work. In the next four years, Saudi wants to raise $55 billion via privatisations read more , and that doesn’t include further asset or equity sales by $1.9 trillion oil giant Aramco (2222.SE). Nor does it encompass disposals by the $450 billion Public Investment Fund, which will shortly sell down a big chunk of its 70% stake in $61 billion Saudi Telecom Company (7010.SE). Crown Prince Mohammed bin Salman envisages $3.2 trillion of public and private investment over the next decade to shift the domestic economy away from oil. read more
Big western banks are keeping quiet about whether they will follow the 44 multinationals, including Novartis (NOVN.S), Unilever (ULVR.L) and Deloitte, and establish regional headquarters in Riyadh. Part of that is a desire not to offend the UAE, where Dubai harbours fee-generative privatisation plans of its own. Riyadh’s relative lack of good schools remains an issue. And it’s also only three years since the crown prince faced international condemnation for the murder of Jamal Khashoggi in Istanbul, which U.S. intelligence agencies believe he sanctioned. read more
Crypto exchange Binance signs #Dubai World Trade Centre deal | Reuters
Crypto exchange Binance signs Dubai World Trade Centre deal | Reuters
Cryptocurrency exchange Binance said on Tuesday it had signed a cooperation deal with Dubai World Trade Centre Authority, which is working to set up an international virtual asset ecosystem.
The Dubai World Trade Centre (DWTC) said on Monday that it will become a crypto zone and regulator for cryptocurrencies and other virtual assets, as the United Arab Emirates seeks to attract new business amid regional competition. read more
Binance, the world's biggest cryptocurrency exchange by trading volumes, said in a statement that it intends to assist the development of virtual asset regulations in Dubai.
"The goal is to help crypto exchanges, or businesses that offer blockchain and DLT services, or a wide range of digital currencies and assets to become licensed in Dubai," it said.
Cryptocurrency exchange Binance said on Tuesday it had signed a cooperation deal with Dubai World Trade Centre Authority, which is working to set up an international virtual asset ecosystem.
The Dubai World Trade Centre (DWTC) said on Monday that it will become a crypto zone and regulator for cryptocurrencies and other virtual assets, as the United Arab Emirates seeks to attract new business amid regional competition. read more
Binance, the world's biggest cryptocurrency exchange by trading volumes, said in a statement that it intends to assist the development of virtual asset regulations in Dubai.
"The goal is to help crypto exchanges, or businesses that offer blockchain and DLT services, or a wide range of digital currencies and assets to become licensed in Dubai," it said.
#Israel's Mizrahi-Tefahot bank raises $569 mln in debt offering | Reuters
Israel's Mizrahi-Tefahot bank raises $569 mln in debt offering | Reuters
Mizrahi-Tefahot (MZTF.TA), Israel's third-largest bank, said on Tuesday it raised 1.8 billion shekels ($569 million) in a debt offering that expanded two existing bond series.
Demand from institutional investors reached some 3 billion shekels, Mizrahi said.
One series of 5.6 year bonds raised 1.2 billion shekels and will pay interest of 0.78% above comparable Israel government bonds. A second series of 8.5 year bonds raised 600 million shekels at 0.82% above government bonds.
So far in 2021, the bank has raised nearly 5.5 billion shekels in debt plus $600 million in an international bond offering.
Mizrahi-Tefahot (MZTF.TA), Israel's third-largest bank, said on Tuesday it raised 1.8 billion shekels ($569 million) in a debt offering that expanded two existing bond series.
Demand from institutional investors reached some 3 billion shekels, Mizrahi said.
One series of 5.6 year bonds raised 1.2 billion shekels and will pay interest of 0.78% above comparable Israel government bonds. A second series of 8.5 year bonds raised 600 million shekels at 0.82% above government bonds.
So far in 2021, the bank has raised nearly 5.5 billion shekels in debt plus $600 million in an international bond offering.
Oil Rises After Two-Day Drop as Investors Assess Demand - Bloomberg
Oil Rises After Two-Day Drop as Investors Assess Demand - Bloomberg
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#UAE Vies for Cryptocurrency Hub, Looks to Attract Asian Companies to Relocate - Bloomberg
UAE Vies for Cryptocurrency Hub, Looks to Attract Asian Companies to Relocate - Bloomberg
The United Arab Emirates is in talks with Asian firms seeking to relocate to the Gulf nation, as part of efforts to transform itself into a hub for cryptocurrencies.
“We’ve seen multinational firms right now waiting to relocate out of east Asia,” Ahmad Belhoul Al Falasi, minister of state for entrepreneurship and SMEs, said in an interview with Bloomberg TV. The government is in talks with “several” firms eyeing a base in the UAE given tougher regulations elsewhere and given the country’s resilience through the pandemic, he said.
Binance Holdings Ltd. has held discussions with regulators in the UAE about a potential headquarters in the Gulf nation, Bloomberg reported last week. “Stay tuned,” Al Falasi said, when asked about Binance’s plans.
The oil-rich country has intensified its push to bolster the use of blockchain in recent years. Dubai, a financial center with a vibrant nightlife and tourism scene, is vying with Singapore, Switzerland and other regions to become a global crypto hub. On Monday, the government said the Dubai World Trade Centre will become a comprehensive zone and regulator for virtual assets and cryptocurrencies.
“Cryptocurrency is here to stay, we’ve seen an increase in uptake,” Al Falasi said. “As long as you are following right regulation, there is no harm in adopting such technology or putting the regulation in place.”
The United Arab Emirates is in talks with Asian firms seeking to relocate to the Gulf nation, as part of efforts to transform itself into a hub for cryptocurrencies.
“We’ve seen multinational firms right now waiting to relocate out of east Asia,” Ahmad Belhoul Al Falasi, minister of state for entrepreneurship and SMEs, said in an interview with Bloomberg TV. The government is in talks with “several” firms eyeing a base in the UAE given tougher regulations elsewhere and given the country’s resilience through the pandemic, he said.
Binance Holdings Ltd. has held discussions with regulators in the UAE about a potential headquarters in the Gulf nation, Bloomberg reported last week. “Stay tuned,” Al Falasi said, when asked about Binance’s plans.
The oil-rich country has intensified its push to bolster the use of blockchain in recent years. Dubai, a financial center with a vibrant nightlife and tourism scene, is vying with Singapore, Switzerland and other regions to become a global crypto hub. On Monday, the government said the Dubai World Trade Centre will become a comprehensive zone and regulator for virtual assets and cryptocurrencies.
“Cryptocurrency is here to stay, we’ve seen an increase in uptake,” Al Falasi said. “As long as you are following right regulation, there is no harm in adopting such technology or putting the regulation in place.”
EXCLUSIVE #Qatar targets $10 billion of investments in U.S. ports -sources | Reuters
EXCLUSIVE #Qatar targets $10 billion of investments in U.S. ports -sources | Reuters
Qatar plans to invest at least $10 billion in U.S. ports and has approached international banks for financing help, three finance sources say, in an infrastructure spree that reflects the Gulf country's deepening ties with Washington.
The Middle East and Western sources familiar with the matter said Doha was targeting investments in ports around the U.S. East Coast which were expected to be developed in phases, adding that the plan was at a preliminary stage.
The country's sovereign wealth fund Qatar Investment Authority and the Qatar Government Communication Office both declined to comment.
"The Qataris have been preparing for almost a year to test the waters with U.S. port investments," said Michael Frodl, a U.S.-based adviser on projects including maritime security, commerce and infrastructure, who is familiar with Qatar's strategy.
Qatar plans to invest at least $10 billion in U.S. ports and has approached international banks for financing help, three finance sources say, in an infrastructure spree that reflects the Gulf country's deepening ties with Washington.
The Middle East and Western sources familiar with the matter said Doha was targeting investments in ports around the U.S. East Coast which were expected to be developed in phases, adding that the plan was at a preliminary stage.
The country's sovereign wealth fund Qatar Investment Authority and the Qatar Government Communication Office both declined to comment.
"The Qataris have been preparing for almost a year to test the waters with U.S. port investments," said Michael Frodl, a U.S.-based adviser on projects including maritime security, commerce and infrastructure, who is familiar with Qatar's strategy.
Oil prices steady as Omicron worries linger | Reuters
Oil prices steady as Omicron worries linger | Reuters
Oil prices steadied on Tuesday after a sharp fall in the previous session as investors worried about the rapid spread of the Omicron coronavirus variant and the impact of renewed restrictions on fuel demand.
Brent crude was down 8 cents, or 0.1%, at $71.44 a barrel by 0903 GMT, while U.S. West Texas Intermediate (WTI) crude rose 5 cents, or 0.1%, to $68.66 a barrel.
Both contracts rose almost $1 earlier in the session.
"This is a pragmatic market that wants to be bullish but knows relief rallies, like the one this morning, will not last," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
Oil prices steadied on Tuesday after a sharp fall in the previous session as investors worried about the rapid spread of the Omicron coronavirus variant and the impact of renewed restrictions on fuel demand.
Brent crude was down 8 cents, or 0.1%, at $71.44 a barrel by 0903 GMT, while U.S. West Texas Intermediate (WTI) crude rose 5 cents, or 0.1%, to $68.66 a barrel.
Both contracts rose almost $1 earlier in the session.
"This is a pragmatic market that wants to be bullish but knows relief rallies, like the one this morning, will not last," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.
Major Gulf bourses mixed in early trade as Omicron risks loom | Reuters
Major Gulf bourses mixed in early trade as Omicron risks loom | Reuters
Major stock markets in the Gulf moved in different directions early on Tuesday, as surging cases of the Omicron coronavirus variant remained a worry for investors.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, helped by a 0.4% rise in Al Rajhi Bank (1120.SE) and a 0.7% increase in petrochemical maker Saudi Basic Industries Corp (2010.SE).
On the other hand, Sahara International Petrochemical Co (2310.SE) retreated 1.4%, as the firm traded ex-dividend.
OPEC+ compliance with oil production cuts rose to 117% in November from 116% a month earlier, Reuters reported on Monday, citing two sources from the group, indicating production levels remain well below agreed targets. read more
Crude prices, a key catalyst for the Gulf's financial markets, rose, though investors remained worried about the rapid spread of the Omicron variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Dubai's main share index (.DFMGI) added 0.5%, with blue-chip developer Emaar Properties (EMAR.DU) rising 1.3% and Emirates Integrated Telecommunications (DU.DU) advancing 2.3%.
Separately, the Dubai World Trade Centre (DWTC) will become a crypto zone and regulator for cryptocurrencies and other virtual assets, the Dubai Media Office said on Monday, part of efforts to attract new business as regional economic competition heats up. read more
In Abu Dhabi, the index (.ADI) dropped 0.8%, weighed down by a 0.9% fall in Emirates Telecommunications Group (ETISALAT.AD) and a 1.4% decline in conglomerate International Holding .
The Qatari benchmark (.QSI) edged 0.1% higher, hit by a 0.9% fall in petrochemical maker Industries Qatar (IQCD.QA).
Major stock markets in the Gulf moved in different directions early on Tuesday, as surging cases of the Omicron coronavirus variant remained a worry for investors.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, helped by a 0.4% rise in Al Rajhi Bank (1120.SE) and a 0.7% increase in petrochemical maker Saudi Basic Industries Corp (2010.SE).
On the other hand, Sahara International Petrochemical Co (2310.SE) retreated 1.4%, as the firm traded ex-dividend.
OPEC+ compliance with oil production cuts rose to 117% in November from 116% a month earlier, Reuters reported on Monday, citing two sources from the group, indicating production levels remain well below agreed targets. read more
Crude prices, a key catalyst for the Gulf's financial markets, rose, though investors remained worried about the rapid spread of the Omicron variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Dubai's main share index (.DFMGI) added 0.5%, with blue-chip developer Emaar Properties (EMAR.DU) rising 1.3% and Emirates Integrated Telecommunications (DU.DU) advancing 2.3%.
Separately, the Dubai World Trade Centre (DWTC) will become a crypto zone and regulator for cryptocurrencies and other virtual assets, the Dubai Media Office said on Monday, part of efforts to attract new business as regional economic competition heats up. read more
In Abu Dhabi, the index (.ADI) dropped 0.8%, weighed down by a 0.9% fall in Emirates Telecommunications Group (ETISALAT.AD) and a 1.4% decline in conglomerate International Holding .
The Qatari benchmark (.QSI) edged 0.1% higher, hit by a 0.9% fall in petrochemical maker Industries Qatar (IQCD.QA).
Oil prices climb but worries over Omicron linger | Reuters
Oil prices climb but worries over Omicron linger | Reuters
Oil prices rose on Tuesday, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Brent crude futures increased by 59 cents, or 0.8%, to $72.11 a barrel by 0418 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 73 cents, or 1.1%, to $69.34 a barrel.
"After a rough couple of days, crude prices are rebounding as much of the COVID wall of worry has been priced in," said Edward Moya, senior analyst at OANDA.
"The short-term hit to economic growth from border closing is still unknown and oil prices will remain sensitive to any stricter requirements with travel."
Oil prices rose on Tuesday, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Brent crude futures increased by 59 cents, or 0.8%, to $72.11 a barrel by 0418 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 73 cents, or 1.1%, to $69.34 a barrel.
"After a rough couple of days, crude prices are rebounding as much of the COVID wall of worry has been priced in," said Edward Moya, senior analyst at OANDA.
"The short-term hit to economic growth from border closing is still unknown and oil prices will remain sensitive to any stricter requirements with travel."