Oil Advances as OPEC+ Sees Tighter Market in First Quarter - Bloomberg

Oil Advances as OPEC+ Sees Tighter Market in First Quarter - Bloomberg

PRICES
West Texas Intermediate rose 91 cents to settle at $76.99 a barrel in New York Brent for March settlement gained $1.02 to $80 a barrel

Oil trekked higher as global supplies are on track to be tighter than previously expected amid easing fears over the omicron variant’s hit to global demand.

Futures in New York rose 1.2% while Brent crude settled at $80 a barrel for the first time since late November as OPEC+ stuck to its plan to lift output. Benchmark West Texas Intermediate crude reached a session high that was the strongest since November 26.

With demand largely withstanding the omicron variant, the OPEC+ producer group on Tuesday approved a 400,000 barrel-a-day increase in production scheduled for February. Its analysts on Monday cut estimates for a surplus in the first quarter, predicting weaker supply growth from rivals.

“Prices are heading higher after OPEC+ showed they are more confident that the global crude demand outlook will only take a limited hit, said Ed Moya, Oanda’s senior market analyst for the Americas. It appears geopolitical risks such as from Russia-Ukraine tensions, and the lengthy Iran nuclear deal revival talks are also supportive of higher oil prices, he added.

#SaudiArabia seeks to broaden financial ties with the UK

Saudi Arabia seeks to broaden financial ties with the UK

Saudi Arabia, the Arab world’s biggest economy, is planning to expand financial ties with the UK as part of a bilateral push to deepen trade and economic relations.

The kingdom has authorised Finance Minister Mohammed Al Jadaan to discuss the draft of a preliminary agreement with the UK Treasury to “enhance co-operation in the areas of developing financial and public financial services”, the state-run Saudi Press Agency said in a Cabinet statement on Tuesday.

The Ministry of Finance was directed to get the approved pact signed and “complete the legal procedures” thereafter, according to SPA.

Since its exit from the EU at the end of 2020, Britain has sought to forge deeper economic ties with the six-member GCC economic bloc. Britain already has close strategic and defence ties with the Gulf states and wants to boost its trade with the GCC, which reached £30 billion ($40.54bn) in 2020.

#Saudi Pension Fund Opens Up for First Time, Says Returns Hit 14% - Bloomberg

Saudi Pension Fund Opens Up for First Time, Says Returns Hit 14% - Bloomberg

The investment arm of Saudi Arabia’s General Organization for Social Insurance, said it delivered returns of over 14% last year, as markets globally rallied to new heights.

The disclosure is the first indication from Hassana, as the fund manager which oversees $250 billion in assets is known, about the returns it generates. It also said that investment gains exceeded 12% for the past three years, and 9% for the past five years, according to a statement to the Saudi Press Agency.

The returns were due to its long-term portfolio allocation and market performance, Chief Executive Officer Saad Al Fadhli said in the statement.

Global markets soared over the past year, despite worries about the coronavirus and shifts in monetary policy. The S&P 500 Index rose 27% last year, while cryptocurrencies and commodities also delivered substantial returns over the 12-month period in which the world economy rebounded from a recession.

Public pension fund assets globally exceeded $20 trillion at the end of last year, due to high stock market returns and rising contributions from workers, adviser and data firm Global SWF said in a report.

In June, Al-Fadly said in an interview that Hassana’s merger with the another Saudi pension body -- the Public Pension Agency -- would cut costs and help increase investment returns. The fund hasn’t previously disclosed much about its investments, although it did announce that it would co-lead a consortium with BlackRock Real Assets in signing a $15.5 billion lease-and-leaseback deal with Saudi Aramco for its gas pipeline network.

Louis Dreyfus chair owes Credit Suisse $240 mln after ADQ deal | Reuters

Louis Dreyfus chair owes Credit Suisse $240 mln after ADQ deal | Reuters

Margarita Louis-Dreyfus, chairperson and main shareholder of Louis Dreyfus Company, borrowed about $240 million from Credit Suisse (CSGN.S) in a reduced loan arrangement following the sale of a stake in LDC, an annual company report showed.

Louis-Dreyfus told Swiss business magazine Bilanz in late 2020 she planned to use the proceeds of the sale of a 45% stake in LDC to Abu Dhabi investment firm ADQ to settle a $1 billion loan from Credit Suisse, taken in early 2019 to buy out minority family shareholders.

The overall value of the deal with ADQ - which became the first outside investor in the 170-year-old commodity merchant controlled by Louis-Dreyfus via the Akira trust - has not been disclosed. LDC later announced it had allowed the repayment of a separate $1.051 billion loan that it had granted to its parent company. read more

Akira's 2020 report filed last week showed the trust owed Credit Suisse $718.4 million of the original loan at the end of 2020, of which a further $50 million was repaid in May 2021.

Brent Oil Rises Even as OPEC+ Agrees to Boost Production - Bloomberg

Brent Oil Rises Even as OPEC+ Agrees to Boost Production - Bloomberg

PRICES
West Texas Intermediate rose 0.5% to $76.48 a barrel at 9:30 a.m. in New York Brent for March settlement gained 0.8% to $79.58

Oil ticked higher with global supplies in focus, even after OPEC+ agreed to revive more oil production.

Futures in London rose 0.8% but were still beneath $80 a barrel. With demand largely withstanding the omicron variant, the producer group on Tuesday approved a 400,000 barrel-a-day increase in production scheduled for February, as expected. Its analysts on Monday cut estimates for a surplus in the first quarter, predicting weaker supply growth from rivals.

The overall supply-demand backdrop is looking better for OPEC+. The group’s production increases are likely to be less than the agreed levels as some members struggle. Russia failed to raise output last month while production in OPEC member Libya is expected to fall again this week. The market structure remains in a bullish backwardation pattern, which indicates continued supply tightness.

“The biggest challenge is starting to be to actually implement the theoretical rise in production as more and more producers start to struggle,” said Hans van Cleef, senior energy economist at ABN Amro.

#Qatar's Ooredoo, CK Hutchison complete $6bln merger of Indonesian units | ZAWYA MENA Edition

Qatar's Ooredoo, CK Hutchison complete $6bln merger of Indonesian units | ZAWYA MENA Edition

Qatar’s telecoms company Ooredoo and CK Hutchison Holdings Ltd has completed the $6 billion merger of their Indonesian telecom businesses after securing all shareholder and regulatory approvals.

The newly merged company, named PT Indosat Ooredoo Hutchison Tbk, is effective from today, 4 January 2022, the companies said in a joint statement on the Abu Dhabi Securities Exchange, where Ooredoo's shares trade.

Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison with a 65.6 percent shareholding. It will remain listed on the Indonesian Stock Exchange under the ticker ORDS, with the Government of Indonesia retaining a 9.6 percent shareholding, PT Tiga Telekomunikasi Indonesia holding a 10.8 percent shareholding, and other public shareholders holding approximately 14 percent.

Indosat Ooredoo Hutchison has thus become the country's second biggest telecoms company after state-owned Telkomsel.

Hong Kong's CK Hutchison and Qatar's Ooredoo agreed in September 2021 to merge their Indonesian telecom units in a $6 billion deal.

Goldman to Double #Israel Staff and Act as Bridge to Wealth Funds - Bloomberg

Goldman to Double Israel Staff and Act as Bridge to Wealth Funds - Bloomberg

Goldman Sachs Group Inc. is coming off its best year ever in Israel. But the hiring spree it’s planning is both a rebuilding effort and a growth push.

After emerging as the top adviser on Israeli initial public offerings in the U.S. in 2021, the Wall Street firm plans to double its local staff to around 30 by adding five people to the investment banking division and expanding its asset management and private wealth teams in Tel Aviv.

Since a recent diplomatic breakthrough that fostered ties between Israel and four Muslim-majority countries including the United Arab Emirates, the bank has worked to drum up business for Israeli companies in the Gulf and touts the prospect of investments by the region’s wealth funds, according to Jonathan Penkin, Goldman’s new head of investment banking in Israel.

As Goldman’s footprint expands in Israel, it’s also having to contend with the recent exits of Sarel Eldor and Danny Akerman, two senior bankers who left to start up their own investment fund.

#Saudi Superyacht Dispute Pits Credit Suisse Against Gulf Prince - Bloomberg

Saudi Superyacht Dispute Pits Credit Suisse Against Gulf Prince - Bloomberg

Credit Suisse Group AG is pursuing a Saudi prince in court, alleging he failed to repay the bank around $78 million in interest and loans he took out to refinance his 82-meter (269-foot) superyacht and mansion property in England.

In a London lawsuit filed in November, the Swiss bank said that two companies defaulted on a pair of loans it provided for refinancing the luxury purchases. Prince Fahad Bin Sultan, governor of Saudi Arabia’s Tabuk province, is the guarantor for the loans and the ultimate beneficiary of the assets, according to Credit Suisse.

The Cayman Islands-registered motor yacht ‘Sarafsa’ is worth about 58 million euros ($65.5 million), according to the court filing. The property estate, situated close to the storied Wentworth Golf Club outside London, was valued at 35 million pounds ($47 million) in 2019.

The suit offers a glimpse into how Saudi royalty sometimes use offshore vehicles to finance their luxury lifestyle but also how even the super-wealthy can run afoul of one of Europe’s biggest banks.

Column: Oil bulls return as the threat from Omicron recedes: Kemp | Reuters

Column: Oil bulls return as the threat from Omicron recedes: Kemp | Reuters

Portfolio investors have started to rebuild bullish positions in the oil market, reassessing earlier fears about the likely impact of the Omicron variant of coronavirus on major economies and passenger aviation in 2022.

Hedge funds and other money managers purchased the equivalent of 54 million barrels in the six most important petroleum futures and options contracts in the week to Dec. 28 (https://tmsnrt.rs/3JE0yqq).

Funds have purchased a total of 70 million barrels over the two most recent weeks, after selling 327 million over the previous 10 weeks, according to records published by regulators and exchanges.

Last week's buying was the fastest since August, and among the most rapid rates for more than a year, signalling a sharp turnaround from previously bearish investor sentiment.

Oil prices rise ahead of OPEC+ meeting | Reuters

Oil prices rise ahead of OPEC+ meeting | Reuters

Oil prices rose on Tuesday as investors expected OPEC+ producers meeting on output to stick with their planned increase for February based on indications Omicron would have only a mild impact on demand.

Brent crude was up 48 cents, or 0.6%, at $79.46 a barrel at 1310 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 42 cents, or 0.6%, to $76.50 a barrel.

"The oil market is bullish today as a result of optimism sourced from today’s monthly OPEC+ meeting, which is helping oil prices trade higher," said Bjørnar Tonhaugen, Rystad Energy’s head of oil markets.

OPEC+ has been increasing its output target by 400,000 barrels per day (bpd) since August and is expected to do so again for February. read more

Gulf markets buoyed by oil and global shares | Reuters

Gulf markets buoyed by oil and global shares | Reuters

Most stock markets in the Gulf ended higher on Tuesday, in line with oil prices and global shares, shrugging off concerns that the Omicron coronavirus variant could choke the global economic recovery.

Saudi Arabia's benchmark index (.TASI) rose 0.3%, supported by a 1.1% gain for the kingdom's largest lender, Saudi National Bank (1180.SE).

The Saudi central bank has extended a deferred payment programme meant to support the private sector by an additional three months until March 31, it said on Thursday. read more

The kingdom's non-oil private sector grew last month at the slowest pace since March amid concern over the spread of the Omicron variant, a survey showed on Tuesday, though this marked a 16th consecutive month of expansion, read more

Crude oil prices, a key catalyst for the Gulf's financial markets, rose on expectations that OPEC+ producers meeting on Tuesday will stick with their planned output increase for February based on indications that Omicron will have only a mild impact on demand.

Dubai's main share index (.DFMGI) gained 0.8%, buoyed by a 1.1% rise for top lender Emirates NBD (ENBD.DU) and a 0.9% increase for sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The United Arab Emirates prime minister and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum has approved Dubai's budget for the 2022-2024 financial years, with total expenditure of 181 billion Emirati dirhams ($49.28 billion), Dubai's deputy ruler wrote on Twitter on Sunday. read more

The market was boosted by the larger budget announced and its expected positive impact on the economy, said Farah Mourad, senior market analyst at XTB MENA.

The Qatari index (.QSI) added 0.4%, with petrochemicals company Industries Qatar (IQCD.QA) advancing 1%.

The Abu Dhabi index (.ADI), however, fell 0.7%, hit by a 2.2% fall for telecoms giant Etisalat (ETISALAT.AD).

Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.7% higher, with Egypt Kuwait Holding (EKHO.CA) climbing 4.9%.

The market was supported by upbeat data on the economy and non-oil sectors, Mourad said.

Mubadala named 'Fund of the Year' for global partnerships and investment activity

Mubadala named 'Fund of the Year' for global partnerships and investment activity

Mubadala Investment Company has bagged the global sovereign wealth fund industry’s top honour, becoming the “2021 Fund of the Year”, a recognition of its investment acumen and the part it has played in helping the industry to grow last year despite headwinds.

The award, from industry tracker Global SWF, is also an acknowledgement of the Abu Dhabi strategic investment arm’s high level of deal activity in 2021, partnerships it has forged with governments and investment entities across the globe, and the crucial role it has played at home in the economic recovery.

“For its significant contribution to the development of Abu Dhabi and the UAE, for its leadership in pursuing global partnerships, for its unparalleled investment and divestment activity displayed throughout the year, and, in general, for its contribution to the advancement of the SWF industry, Global SWF believes that Mubadala Investment Company is a worthy recipient of the 2021 Fund of the Year award,” said Diego Lopez, Global SWF managing director.

Mubadala, which invests on behalf of the Abu Dhabi government and has $243 billion in assets, is central to the emirate’s economic diversification drive.

#Saudi non-oil private sector growth slows amid concerns over Omicron - PMI | Reuters

Saudi non-oil private sector growth slows amid concerns over Omicron - PMI | Reuters

Saudi Arabia's non-oil private sector grew last month at the slowest pace since March, marking its 16th consecutive month of expansion, amid rising concern over the spread of the Omicron variant of the coronavirus, a survey showed on Tuesday.

The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index (PMI) dropped to 53.9 in December from 56.9 in November, marking solid growth but falling well below 2021's average of 55.8 and the series average of 56.8.

Growth in output slowed, with the subindex at 57.3 in December compared with 61.7 in November.

Growth in new orders weakened for a third straight month to hit its slowest pace since March, while the expansion in new export orders slowed to an eight-month low.

U.S. World's Top LNG Exporter in December With Deliveries to Europe Surging - Bloomberg

U.S. World's Top LNG Exporter in December With Deliveries to Europe Surging - Bloomberg

The U.S. was the world’s biggest exporter of liquefied natural gas last month for the first time ever, as projects ramped up production and deliveries surged to energy-starved Europe.

Output from American facilities edged above Qatar in December due largely to a jump in exports from the Sabine Pass and Freeport facilities, according to ship-tracking data compiled by Bloomberg. Cheniere Energy Inc. said last month that it achieved its first cargo from a new production unit at its Sabine Pass plant.

A shale gas revolution, coupled with billions of dollars of investments in liquefaction facilities, transformed the U.S. from a net LNG importer to a top exporter in less than a decade. U.S. natural gas production has surged by roughly 70% from 2010 after a combination of horizontal drilling and hydraulic fracturing unlocked supplies from shale formations across the country.

The first American LNG cargo produced from shale gas was shipped in 2016, and the nation is expected to have the world’s largest export capacity by the end of 2022 after new units start up, according to the U.S. Energy Information Administration.

The U.S.’s position as top LNG shipper may be short-lived, however. Exports were just a hair above those from Qatar and Australia, and any production issues could affect the rankings. Looking further out, Qatar is planning a gargantuan LNG export project that will come online in the late 2020s, which could cement the middle eastern nation as the top supplier of the fuel.

In the meantime, the jump in U.S. LNG exports will help ease a global supply crunch. Europe is facing a winter energy crisis as utilities grapple with seasonally low natural gas inventories. Overseas buyers purchased 13% of U.S. gas production in December, a seven-fold increase from five years earlier when most of the infrastructure required to ship the fuel out of the country didn’t yet exist.

Major Gulf bourses mixed as Omicron fears weigh | Reuters

Major Gulf bourses mixed as Omicron fears weigh | Reuters

Major stock markets in the Gulf were mixed in early trade on Tuesday, as worries weighed that the Omicron variant could slow global economic recovery.

Saudi Arabia's benchmark index (.TASI) gained 0.4%, led by a 1.1% rise in Saudi National Bank (1180.SE), the kingdom's largest lender and a 1.5% increase in Sahara International Petrochemical Company (2310.SE).

Oil prices, a catalyst for the Gulf's financial markets, rose as investors interpreted expectations that oil producers will add supply at a meeting on Tuesday as an indication fuel demand remains robust despite the spread of Omicron.

Daily coronavirus cases in Saudi Arabia have climbed above 1,000 for the first time since August.

The kingdom's non-oil private sector grew last month at the slowest pace since March, marking its 16th consecutive month of expansion, a survey showed on Tuesday. read more

In Abu Dhabi, the index (.ADI) fell 1%, with telecoms company Etisalat (ETISALAT.AD) sliding 3.6%, while Alpha Dhabi Holding (ALPHADHABI.AD) retreated 1.5% after the conglomerate said it had bought an additional 17% in developer Aldar Properties (ALDAR.AD) to take its stake to 29.8%. read more

The United Arab Emirates (UAE), a tourism and commercial hub marking its peak tourism season and hosting a world fair, on Monday recorded 2,515 new coronavirus cases.

Dubai's main share index (.DFMGI) added 0.4%, helped by a 1.1% rise in top lender Emirates NBD Bank (ENBD.DU).

The Qatari index (.QSI) eased 0.1%, hit by a 1.6% fall in Commercial Bank (COMB.QA).

Oil prices dip ahead of OPEC+ output policy meeting | Reuters

Oil prices dip ahead of OPEC+ output policy meeting | Reuters

Oil prices surrendered earlier gains on Tuesday as investors embraced expectations that major oil producers will confirm a plan to add supply later on Tuesday amid diminishing concerns over the spread of the Omicron variant of COVID-19.

Brent crude futures lost 25 cents to $78.74 a barrel at 0739 GMT, while U.S. West Texas Intermediate (WTI) crude inched down by 19 cents to $75.89 a barrel.

The benchmark contracts both climbed more than 1% on Monday.

"Number one driver (of global oil prices) at the moment is management of the supply side of the market by (producer alliance) OPEC+," said Virendra Chauhan, analyst from Energy Aspects.

#UAE's Alpha Dhabi Holding acquires 25% of Al Qudra Holding | ZAWYA MENA Edition

UAE's Alpha Dhabi Holding acquires 25% of Al Qudra Holding | ZAWYA MENA Edition

Abu Dhabi-based conglomerate Alpha Dhabi Holding has acquired 25.24 percent shareholding in Al Qudra Holding PJSC, as part of its 8 billion dirhams ($2.17 billion) strategic investment plan across various sectors in the UAE.

In a statement on Abu Dhabi Stock Exchage, Hamad Salem Mohamed Al-Ameri, Managing Director and CEO of Alpha Dhabi Holding, said: “Al Qudra’s business strategy is a perfect fit for ADH, and this acquisition will add considerable shareholder value as we continue investing in carefully selected industries with sustainable growth potential..."

Al Qudra Holding is an Abu Dhabi-based private joint stock company that invests in real estate projects.

In December, Alpha Dhabi announced plans to invest up to 8 billion dirhams sectors, including real estate, hospitality, healthcare, and petrochemicals. On Monday, the conglomerate increased its stake in Abu Dhabi developer Aldar Properties to 29.8 percent after acquiring an additional 17 percent.

Last month, Al Qudra Holding completed the acquisition of Tamouh Investments LLC from IHC with consideration of mandatory convertible bonds worth 2.244 billion dirhams, which would be converted into issued share capital of Al Qudra.

GCC equity market index up 40% in 2021; marks biggest gain since 2008 | ZAWYA MENA Edition

GCC equity market index up 40% in 2021; marks biggest gain since 2008 | ZAWYA MENA Edition

The GCC equity market index closed 2021 with a gain of 34.9 percent, marking the biggest gains since 2008, according to a report by Kamco Invest.

The MSCI GCC index has fully recovered from COVID-19 and the oil-led decline of 3.7 percent in 2020 as all the markets in the GCC reported gains during the year.

Abu Dhabi was the best performing market amongst prominent equity markets globally with a gain of 68.2 percent.

Saudi Arabia supported Abu Dhabi's gains with 29.8 percent returns. Dubai and Kuwaiti benchmarks followed with gains of 28 percent and 27 percent respectively.

Gains for both Saudi Arabia and ADX were driven by listing of several state-owned firms amid a climate of economic optimism, large scale projects and timely execution of plans.

Several new initiatives were taken in the GCC that mainly aimed at diversifying state revenues away from oil and at the same time making sure that their market share in the oil market remains robust by way of adding capacity, said Kamco.

In terms of sector performance, the financial services sector topped. Diversified Financials had a return of 62.2 percent followed by Banks with a gain of 48.8 percent. The Capital Goods index was next with a gain of 45.4 percent followed by Materials and Healthcare with gains of 30.6 percent and 27.7 percent, respectively.

On the decliners side, Food & Beverage recorded a decline of 8.9 percent closely followed by Food & Drug Retailing with a decline of 8.3 percent. Other last year’s outperformers like Pharma & Biotech, Consumer Durables & Apparels, and Insurance also reported low single digit gains.

Trading activity in the GCC remained upbeat and recorded gains for the third consecutive year to reach $789.7 billion, a growth of 19.7 percent from $659.8 billion recorded in 2020. This was the highest level of trading activity for the region since 2014.

All the individual exchanges in the region reported higher trading activity in 2021, barring Bahrain. Abu Dhabi reported the steepest increase in trading activity with five-fold growth in value traded increasing from $19.3 billion in 2020 to $96.22 billion in 2021 resulting a share of 12.2 percent vs. 2.9 percent in 2020.

Saudi Arabia’s share, on the other hand, declined from 84.3 percent in 2020 or $556.4 billion to 75.5 percent or $596.3 billion in 2021.

#UAE Faces Risk of Inclusion on Global Watchlist Over Dirty Money - Bloomberg

UAE Faces Risk of Inclusion on Global Watchlist Over Dirty Money - Bloomberg

The United Arab Emirates is at increased risk of being placed on a global watchdog’s list of countries subject to more oversight for shortcomings in combating money laundering and terrorist financing, even after a recent government push to stamp out illicit transactions.

The Financial Action Task Force is leaning toward adding the UAE to its “gray list” early this year, one of two classifications used by the intergovernmental body for nations determined to have “strategic deficiencies,” according to people familiar with the matter, who requested anonymity because the discussions are private.

Should the FATF approve the designation, it would be among the most significant such steps in the Paris-based group’s three-decade history given the UAE’s position as the main financial hub of the Middle East. The FATF currently puts 23 countries -- including Albania, Syria and South Sudan -- under closer scrutiny, with only Iran and North Korea on its highest-risk “black list.”

“There are undoubtedly costs associated with being gray-listed,” said Katherine Bauer, a former Treasury Department official who led the U.S. delegation to the Middle East and North Africa Financial Action Task Force, a regional body modeled after the FATF.

Prices at World’s Tallest Tower Jump as #Dubai Home Sales Boom - Bloomberg

Prices at World’s Tallest Tower Jump as Dubai Home Sales Boom - Bloomberg

The world’s tallest building notched up one of the highest price increases in Dubai’s luxury residential developments last year as the market rebounded from a downturn.

Prices at the Burj Khalifa climbed 23% compared with a 8% increase for the rest of Dubai, according to property consultant Knight Frank LLP.

“The theme for 2021 has been the exponential rebounding of Dubai’s luxury residential market,” Faisal Durrani, head of Middle East research at Knight Frank, wrote in a report. “At almost 2,100 dirhams per square foot, the Burj Khalifa falls squarely into this category.”

Business activity in Dubai rebounded sharply last year alongside a jump in tourism, helped by the Expo 2020 exhibition -- one of the biggest in-person events since the coronavirus pandemic started. The city has remained relatively open during the pandemic, and buying real estate is also one of the fastest ways for foreigners to get a residency permit.

The luxury end of the market had been a haven for wealthy Europeans escaping lockdowns and for others drawn by the ease of getting vaccinated. HSBC Holdings Plc last year forecast that a growing demand for larger homes during the pandemic would further boost Dubai’s property market, echoing analysts at Morgan Stanley who expected the rally to last for “several years.”

Oil prices edge higher ahead of OPEC+ output policy meeting | Reuters

Oil prices edge higher ahead of OPEC+ output policy meeting | Reuters

Oil prices rose on Tuesday as investors embraced expectations that oil producers will add supply at a meeting on Tuesday as a sign that fuel demand remains robust despite the spread of the Omicron variant of COVID-19.

Brent crude futures gained 43 cent to $79.41 a barrel at 0502 GMT, while U.S. West Texas Intermediate (WTI) crude recouped its earlier loses and rose 33 cents to $76.41 a barrel.

The benchmark contracts both climbed more than 1% on Monday.

"Number one driver (of global oil prices) at the moment is management of the supply side of the market by OPEC+. While there are also outages in Libya and Ecuador which are supportive," said Virendra Chauhan, analyst from Energy Aspects.