Oil extends rally on Kazakhstan unrest and Libyan outages | Reuters
Oil prices rose about 2% on Thursday, extending their new year's rally, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Brent crude futures rose $1.19 cents, or 1.5%, to settle at $81.99 a barrel, after hitting their highest since late November. U.S. West Texas Intermediate (WTI) crude gained $1.61, or 2.1%, to $79.46. The contract touched a session high of $80.24.
Russia sent paratroopers into Kazakhstan to help quell a countrywide uprising after deadly violence spread across the tightly controlled former Soviet state. read more
There were no indications that oil production in Kazakhstan has been affected so far. read more The country produces about 1.6 million barrels of oil per day.
Thursday 6 January 2022
Oil extends rally on Kazakhstan unrest and Libyan outages | Reuters
Oil extends rally on Kazakhstan unrest and Libyan outages | Reuters
Oil prices rose more than 1% on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Global benchmark Brent crude futures rose $1.09, or 1.3%, to $81.80 a barrel by 1:06 p.m. EST (1806 GMT), their highest since late November. U.S. West Texas Intermediate (WTI) crude gained $1.40, or 1.8%, to $79.25, its highest since mid-November. The contract touched a session high of $80.24.
"OPEC production, while it did increase, disappointed the market - it is not going to be enough to keep up with demand," said Phil Flynn, an analyst at Price Futures Group in Chicago.
Brent's six-month backwardation stood at about $4 a barrel, its widest since late November. Backwardation is a market structure where current prices trade at a premium to future prices and is usually a sign of a bullish market.
Oil prices rose more than 1% on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Global benchmark Brent crude futures rose $1.09, or 1.3%, to $81.80 a barrel by 1:06 p.m. EST (1806 GMT), their highest since late November. U.S. West Texas Intermediate (WTI) crude gained $1.40, or 1.8%, to $79.25, its highest since mid-November. The contract touched a session high of $80.24.
"OPEC production, while it did increase, disappointed the market - it is not going to be enough to keep up with demand," said Phil Flynn, an analyst at Price Futures Group in Chicago.
Brent's six-month backwardation stood at about $4 a barrel, its widest since late November. Backwardation is a market structure where current prices trade at a premium to future prices and is usually a sign of a bullish market.
Oil Gains as North American Freeze, OPEC+ Constraints Hit Supply - Bloomberg
Oil Gains as North American Freeze, OPEC+ Constraints Hit Supply - Bloomberg
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First #AbuDhabi Bank: Biggest #UAE Bank Taps Bin Tarraf to Replace Departing COO - Bloomberg
First Abu Dhabi Bank: Biggest UAE Bank Taps Bin Tarraf to Replace Departing COO - Bloomberg
First Abu Dhabi Bank PJSC has appointed Suhail Bin Tarraf to the role of group chief operating officer, according to people familiar with the matter, in one of the most important personnel choices made by the new head of the biggest lender in the United Arab Emirates.
Bin Tarraf, who served as chief operations officer at Dubai-based Emirates Islamic Bank, will be partially replacing Fadel Al Ali, said the people, who asked not to be named because the matter isn’t public. Al Ali, who was about to leave the bank late last year, held the additional role of deputy chief executive officer.
FAB, as the Abu Dhabi bank is known, and Emirates Islamic Bank didn’t respond to requests for comment.
In the nearly one year since Hana Al Rostamani took over as group CEO, FAB has embarked on a broad management overhaul that’s led to the departures of several executives in the private bank and investment banking division, Bloomberg News reported in September. The bank has won mandates last year on several high-profile transactions across the Gulf during a flurry of dealmaking and initial public offerings in the region.
First Abu Dhabi Bank PJSC has appointed Suhail Bin Tarraf to the role of group chief operating officer, according to people familiar with the matter, in one of the most important personnel choices made by the new head of the biggest lender in the United Arab Emirates.
Bin Tarraf, who served as chief operations officer at Dubai-based Emirates Islamic Bank, will be partially replacing Fadel Al Ali, said the people, who asked not to be named because the matter isn’t public. Al Ali, who was about to leave the bank late last year, held the additional role of deputy chief executive officer.
FAB, as the Abu Dhabi bank is known, and Emirates Islamic Bank didn’t respond to requests for comment.
In the nearly one year since Hana Al Rostamani took over as group CEO, FAB has embarked on a broad management overhaul that’s led to the departures of several executives in the private bank and investment banking division, Bloomberg News reported in September. The bank has won mandates last year on several high-profile transactions across the Gulf during a flurry of dealmaking and initial public offerings in the region.
#Dubai's DP World to build dry port in India's Jammu and Kashmir, regional leader says | Reuters
Dubai's DP World to build dry port in India's Jammu and Kashmir, regional leader says | Reuters
Dubai ports giant DP World is set to build an inland port in Jammu and Kashmir as part of plans by the emirate to invest in the Indian territory, the head of the region said on Thursday.
The Indian government last year said Dubai, part of the United Arab Emirates (UAE), would invest in infrastructure and other projects in the disputed region claimed by India and Pakistan but ruled in parts by both.
Jammu and Kashmir Lieutenant Governor Manoj Sinha, who is in Dubai this week to promote investment, said DP World would soon visit the 250 acre site earmarked for the inland port facility.
"We will finalise it shortly," he told Reuters, describing the project as a "firm commitment" by state-owned DP World.
Dubai ports giant DP World is set to build an inland port in Jammu and Kashmir as part of plans by the emirate to invest in the Indian territory, the head of the region said on Thursday.
The Indian government last year said Dubai, part of the United Arab Emirates (UAE), would invest in infrastructure and other projects in the disputed region claimed by India and Pakistan but ruled in parts by both.
Jammu and Kashmir Lieutenant Governor Manoj Sinha, who is in Dubai this week to promote investment, said DP World would soon visit the 250 acre site earmarked for the inland port facility.
"We will finalise it shortly," he told Reuters, describing the project as a "firm commitment" by state-owned DP World.
Oil extends rally on Kazakhstan unrest and Libyan outages | Reuters
Oil extends rally on Kazakhstan unrest and Libyan outages | Reuters
Oil prices rose sharply on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Global benchmark Brent crude futures rose $1.33, or 1.7%, to $82.13 a barrel by 1324 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.55, or 2%, to $79.40.
Both contracts were trading at their highest since late November.
Brent's six-month backwardation stood at about $4 a barrel, its widest since late November. Backwardation is a market structure where current prices trade at a premium to future prices and is usually a sign of a bullish market.
Oil prices rose sharply on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Global benchmark Brent crude futures rose $1.33, or 1.7%, to $82.13 a barrel by 1324 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.55, or 2%, to $79.40.
Both contracts were trading at their highest since late November.
Brent's six-month backwardation stood at about $4 a barrel, its widest since late November. Backwardation is a market structure where current prices trade at a premium to future prices and is usually a sign of a bullish market.
Oil extends rally on Kazakhstan unrest, Libyan outages | Reuters
Oil extends rally on Kazakhstan unrest, Libyan outages | Reuters
Oil prices rose sharply on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstanand supply outages in Libya.
The global benchmark Brent crude futures rose $1.09, or 1.4%, to $81.89 a barrel, by 1054 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.17, or 1.5%, to $79.02 a barrel.
Both contracts were trading at their highest since late November.
Brent's 6-month market structure stood at about $4 a barrel in backwardation- where current prices trade at a premium to future prices - its widest since late November and usually a sign of a bullish market.
Russia sent paratroopers into Kazakhstan on Thursday to help quell a countrywide uprising after deadly violence spread across the tightly controlled former Soviet state. read more
Oil prices rose sharply on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstanand supply outages in Libya.
The global benchmark Brent crude futures rose $1.09, or 1.4%, to $81.89 a barrel, by 1054 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.17, or 1.5%, to $79.02 a barrel.
Both contracts were trading at their highest since late November.
Brent's 6-month market structure stood at about $4 a barrel in backwardation- where current prices trade at a premium to future prices - its widest since late November and usually a sign of a bullish market.
Russia sent paratroopers into Kazakhstan on Thursday to help quell a countrywide uprising after deadly violence spread across the tightly controlled former Soviet state. read more
Most Gulf bourses fall on Fed minutes, rising COVID-19 cases | Reuters
Most Gulf bourses fall on Fed minutes, rising COVID-19 cases | Reuters
Major Gulf bourses ended lower on Thursday on worries over higher U.S. interest rates and the rapid spread of the Omicron coronavirus variant.
Minutes from the Federal Reserve's December meeting showed that a tight jobs market and unrelenting inflation could require the U.S. central bank to raise rates sooner than expected and begin reducing its overall asset holdings. read more
Saudi Arabia's benchmark index (.TASI) fell 0.2%, hit by a 1.3% drop in the kingdom's biggest lender Saudi National Bank (1180.SE) and a 0.8% decrease in oil behemoth Saudi Aramco (2222.SE).
Saudi Arabia, the largest Gulf state with a population of some 30 million, on Wednesday registered 3,045 new infections, up from some 1,000 cases announced on Sunday. That is still below a peak of more than 4,700 in June 2020.
The kingdom has cut February's official selling price (OSP) for all grades of crude it is selling to Asia by at least $1 a barrel, Reuters reported on Thursday, citing three sources with knowledge of the matter. read more
The Saudi energy index (.TENI) was down 0.6%.
Crude prices rose sharply, extending a rally from the previous session on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Dubai's main share index (.DFMGI) dropped 0.9%, weighed down by a 1.8% fall in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.4% fall in telecoms firm Etisalat (ETISALAT.AD).
The United Arab Emirates, the regional tourism and commercial hub, saw daily cases reaching 2,708 on Wednesday as it hosts a world fair during its peak tourist season.
Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) on Wednesday said it had created the UAE's largest healthcare provider in an agreement with Abu Dhabi state holding company ADQ. read more
Shares in Alpha Dhabi Holding retreated more than 1%.
The Qatari index (.QSI) reversed early losses to close 0.3% higher, helped by a 1.2% gain in Commercial Bank (COMB.QA).
** Egyptian market closed for a public holiday.
Major Gulf bourses ended lower on Thursday on worries over higher U.S. interest rates and the rapid spread of the Omicron coronavirus variant.
Minutes from the Federal Reserve's December meeting showed that a tight jobs market and unrelenting inflation could require the U.S. central bank to raise rates sooner than expected and begin reducing its overall asset holdings. read more
Saudi Arabia's benchmark index (.TASI) fell 0.2%, hit by a 1.3% drop in the kingdom's biggest lender Saudi National Bank (1180.SE) and a 0.8% decrease in oil behemoth Saudi Aramco (2222.SE).
Saudi Arabia, the largest Gulf state with a population of some 30 million, on Wednesday registered 3,045 new infections, up from some 1,000 cases announced on Sunday. That is still below a peak of more than 4,700 in June 2020.
The kingdom has cut February's official selling price (OSP) for all grades of crude it is selling to Asia by at least $1 a barrel, Reuters reported on Thursday, citing three sources with knowledge of the matter. read more
The Saudi energy index (.TENI) was down 0.6%.
Crude prices rose sharply, extending a rally from the previous session on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Dubai's main share index (.DFMGI) dropped 0.9%, weighed down by a 1.8% fall in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.4% fall in telecoms firm Etisalat (ETISALAT.AD).
The United Arab Emirates, the regional tourism and commercial hub, saw daily cases reaching 2,708 on Wednesday as it hosts a world fair during its peak tourist season.
Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) on Wednesday said it had created the UAE's largest healthcare provider in an agreement with Abu Dhabi state holding company ADQ. read more
Shares in Alpha Dhabi Holding retreated more than 1%.
The Qatari index (.QSI) reversed early losses to close 0.3% higher, helped by a 1.2% gain in Commercial Bank (COMB.QA).
** Egyptian market closed for a public holiday.
#Qatar Airways seeks more than $600 mln in Airbus A350 dispute | Reuters
Qatar Airways seeks more than $600 mln in Airbus A350 dispute | Reuters
Qatar Airways is claiming $618 million in compensation from planemaker Airbus (AIR.PA) in a dispute over erosion to the surface of A350 jetliners, a court document showed on Thursday.
The Gulf airline is also seeking extra compensation of $4 million for every day that 21 of its A350 airplanes remain grounded by Qatar's regulator over the skin damage, which includes erosion and gaps in a layer of lightning protection.
The European jetliner's largest customer launched the claim in December, saying Airbus had failed to provide a full root-cause analysis needed to satisfy its questions over the airworthiness of some 40% of its A350 fleet.
Airbus said it understood the cause and would "deny in total" the airline's claim in a division of the High Court in London. "Airbus restates there is no airworthiness issue," a spokesperson said, adding this view had been confirmed by European regulators.
Qatar Airways is claiming $618 million in compensation from planemaker Airbus (AIR.PA) in a dispute over erosion to the surface of A350 jetliners, a court document showed on Thursday.
The Gulf airline is also seeking extra compensation of $4 million for every day that 21 of its A350 airplanes remain grounded by Qatar's regulator over the skin damage, which includes erosion and gaps in a layer of lightning protection.
The European jetliner's largest customer launched the claim in December, saying Airbus had failed to provide a full root-cause analysis needed to satisfy its questions over the airworthiness of some 40% of its A350 fleet.
Airbus said it understood the cause and would "deny in total" the airline's claim in a division of the High Court in London. "Airbus restates there is no airworthiness issue," a spokesperson said, adding this view had been confirmed by European regulators.
#AbuDhabi's Al Qudra Holding allows foreigners to own 30% of capital | ZAWYA MENA Edition
Abu Dhabi's Al Qudra Holding allows foreigners to own 30% of capital | ZAWYA MENA Edition
Abu Dhabi-based Al Qudra Holding has allowed 30 percent of its capital to be owned by non-UAE nationals following a decision passed at its general assembly meeting.
The company has also increased its capital to AED 5.508 billion ($1.5 billion) following the acquisition of Al Tamouh Investment for AED 2.244 billion, which was also approved at the meeting.
On Wednesday, UAE’s Alpha Dhabi Holding (ADH) acquired a 25.24 per cent shareholding in Al Qudra Holding, as part of its strategic investment plan across key sectors in the UAE.
Trading in Al Qudra by foreigners has already commenced, the company said in a statement to Abu Dhabi Securities Exchange (ADX).
Abu Dhabi-based Al Qudra Holding has allowed 30 percent of its capital to be owned by non-UAE nationals following a decision passed at its general assembly meeting.
The company has also increased its capital to AED 5.508 billion ($1.5 billion) following the acquisition of Al Tamouh Investment for AED 2.244 billion, which was also approved at the meeting.
On Wednesday, UAE’s Alpha Dhabi Holding (ADH) acquired a 25.24 per cent shareholding in Al Qudra Holding, as part of its strategic investment plan across key sectors in the UAE.
Trading in Al Qudra by foreigners has already commenced, the company said in a statement to Abu Dhabi Securities Exchange (ADX).
Most Gulf bourses in red, tracking oil, Asian shares | Reuters
Most Gulf bourses in red, tracking oil, Asian shares | Reuters
Major Gulf bourses fell in early trade on Thursday, in line with oil prices and Asian shares, on worries over higher U.S. interest rates and growing concern about the rapid spread of the Omicron coronavirus variant.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, weighed by a 1.2% fall in petrochemical maker Saudi Basic Industries Corp (2010.SE) and a 0.4% decline in Al Rajhi Bank (1120.SE).
Crude prices, a key catalyst for the Gulf's financial markets, fell from their highest levels in more than a month after U.S. fuel stockpiles surged amid declining demand.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell nearly 1.5% in afternoon trade before paring some losses after Federal Reserve meeting minutes pointed to a faster-than-expected rise in U.S. rates due to concerns about persistent inflation.
Meanwhile, Saudi Arabia, the world's top oil exporter, has cut February's official selling price for all grades of crude it is selling to Asia by at least $1 a barrel, Reuters reported on Thursday, citing three sources with knowledge of the matter. read more
Dubai's main share index (.DFMGI) retreated 1%, hit by a 1.8% drop in top lender Emirates NBD (ENBD.DU) and a 1.5% decline in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.ADI) eased 0.2%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) losing 0.6%.
The United Arab Emirates, the regional tourism and commercial hub, on Wednesday registered 2,708 new coronavirus infections as it hosts a world fair during its peak tourist season.
All six countries have identified Omicron in their territories - though their daily tallies do not break down the infections by variant.
The benchmark index (.QSI) in Qatar, which reported 2,273 new infections on Wednesday, was down 0.2%.
Major Gulf bourses fell in early trade on Thursday, in line with oil prices and Asian shares, on worries over higher U.S. interest rates and growing concern about the rapid spread of the Omicron coronavirus variant.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, weighed by a 1.2% fall in petrochemical maker Saudi Basic Industries Corp (2010.SE) and a 0.4% decline in Al Rajhi Bank (1120.SE).
Crude prices, a key catalyst for the Gulf's financial markets, fell from their highest levels in more than a month after U.S. fuel stockpiles surged amid declining demand.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell nearly 1.5% in afternoon trade before paring some losses after Federal Reserve meeting minutes pointed to a faster-than-expected rise in U.S. rates due to concerns about persistent inflation.
Meanwhile, Saudi Arabia, the world's top oil exporter, has cut February's official selling price for all grades of crude it is selling to Asia by at least $1 a barrel, Reuters reported on Thursday, citing three sources with knowledge of the matter. read more
Dubai's main share index (.DFMGI) retreated 1%, hit by a 1.8% drop in top lender Emirates NBD (ENBD.DU) and a 1.5% decline in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.ADI) eased 0.2%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) losing 0.6%.
The United Arab Emirates, the regional tourism and commercial hub, on Wednesday registered 2,708 new coronavirus infections as it hosts a world fair during its peak tourist season.
All six countries have identified Omicron in their territories - though their daily tallies do not break down the infections by variant.
The benchmark index (.QSI) in Qatar, which reported 2,273 new infections on Wednesday, was down 0.2%.
Look Beyond Oil for Clues Into $447 Billion #Saudi Currency Stash - Bloomberg
Look Beyond Oil for Clues Into $447 Billion Saudi Currency Stash - Bloomberg
For investors closely watching a key indicator of Saudi Arabia’s financial health, deciphering the ups and downs of its $447 billion foreign-currency reserves has become more about dividends than crude prices.
Sharp increases in the central bank’s net foreign assets now coincide with payouts from state-controlled oil producer Saudi Aramco. Disbursements of the company’s $18.75 billion quarterly dividend, almost all of which goes to the Saudi government, mean the reserves reflect less frequent but larger transfers of cash from the Dhahran-based firm.
Most recently, the correlation became apparent when reserves jumped the most in a decade in November -- Aramco paid its last dividend late that month. Similar spikes in other months last year also mirrored the timing of Aramco’s distributions to shareholders.
The closer alignment makes the kingdom’s reserve holdings more predictable. Long watched by investors, economists and currency speculators, the stockpile can now be expected to increase sharply around the dividend schedule -- and fall over the months after it in a reflection of cash flow constraints.
Saudi Arabia tethers its currency to the dollar and tends to adjust monetary policy in lockstep with the U.S. Federal Reserve. To maintain confidence in the riyal’s peg, authorities need to have enough reserves to cover every local currency in circulation and demand deposits, according to Bloomberg Economics.
For investors closely watching a key indicator of Saudi Arabia’s financial health, deciphering the ups and downs of its $447 billion foreign-currency reserves has become more about dividends than crude prices.
Sharp increases in the central bank’s net foreign assets now coincide with payouts from state-controlled oil producer Saudi Aramco. Disbursements of the company’s $18.75 billion quarterly dividend, almost all of which goes to the Saudi government, mean the reserves reflect less frequent but larger transfers of cash from the Dhahran-based firm.
Most recently, the correlation became apparent when reserves jumped the most in a decade in November -- Aramco paid its last dividend late that month. Similar spikes in other months last year also mirrored the timing of Aramco’s distributions to shareholders.
The closer alignment makes the kingdom’s reserve holdings more predictable. Long watched by investors, economists and currency speculators, the stockpile can now be expected to increase sharply around the dividend schedule -- and fall over the months after it in a reflection of cash flow constraints.
Saudi Arabia tethers its currency to the dollar and tends to adjust monetary policy in lockstep with the U.S. Federal Reserve. To maintain confidence in the riyal’s peg, authorities need to have enough reserves to cover every local currency in circulation and demand deposits, according to Bloomberg Economics.
Oil falls from one-month high after U.S. fuel inventory surge | Reuters
Oil falls from one-month high after U.S. fuel inventory surge | Reuters
Oil prices lost ground on Thursday, falling more than $1 a barrel from their highest levels in more than a month after U.S. fuel stockpiles surged amid declining demand.
The global benchmark Brent crude futures fell $1.12, or 1.40%, to $79.68 a barrel, as of 0423 GMT. U.S. West Texas Intermediate (WTI) crude futures lost $1.04, or 1.3%, to $76.81 a barrel.
U.S. crude oil stockpiles fell last week while gasoline inventories surged more than 10 million barrels, the biggest weekly build since April 2020, as supplies backed up at refineries due to reduced fuel demand. read more
"Implied product demand – particularly for gasoline – slumped, suggesting that the public were cautious about travel in the wake of surging cases of the Omicron variant," Caroline Bain, chief commodities economist at Capital Economics said in a note.
Oil prices lost ground on Thursday, falling more than $1 a barrel from their highest levels in more than a month after U.S. fuel stockpiles surged amid declining demand.
The global benchmark Brent crude futures fell $1.12, or 1.40%, to $79.68 a barrel, as of 0423 GMT. U.S. West Texas Intermediate (WTI) crude futures lost $1.04, or 1.3%, to $76.81 a barrel.
U.S. crude oil stockpiles fell last week while gasoline inventories surged more than 10 million barrels, the biggest weekly build since April 2020, as supplies backed up at refineries due to reduced fuel demand. read more
"Implied product demand – particularly for gasoline – slumped, suggesting that the public were cautious about travel in the wake of surging cases of the Omicron variant," Caroline Bain, chief commodities economist at Capital Economics said in a note.
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