Oil slides on Friday, but climbs for 5th week on supply concerns | Reuters
Oil prices slid for a second day in a row on Friday, pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the benchmarks touched seven-year highs earlier in the week.
However, both crude benchmarks rose for a fifth week in a row, gaining around 2% this week. Prices were up more than 10% so far this year on concerns over tightening supplies.
Brent futures fell 49 cents, or 0.6%, to settle at $87.89 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 0.5%, to settle at $85.14.
Earlier in the week, both Brent and WTI rose to their highest levels since October 2014.
"The latest pullback is most likely due to a combination of pre-weekend profit-taking and the absence of fresh bullish catalysts," said PVM analyst Stephen Brennock, noting Thursday's bearish data from the Energy Information Administration (EIA).
Friday, 21 January 2022
#Sharjah's United Arab Bank appoints interim CEO | ZAWYA MENA Edition
Sharjah's United Arab Bank appoints interim CEO | ZAWYA MENA Edition
UAE-listed United Arab Bank (UAB) has appointed Thomas Mathew Alexander to take over the reins as interim chief executive officer of the company, according to a disclosure on Friday.
The appointment comes after Ahmad Mohammad Abu Eideh quit the position on December 14, 2021.
The bank, which has incurred financial losses, did not specify how long the interim chief executive will stay in the position, or when it expects to hire a permanent replacement.
“We will update you with any new information as and when received,” the bank told the Abu Dhabi Securities Exchange (ADX).
The bank reported 621.9 million dirhams ($169.3 million) in accumulated losses for the first nine months of 2021, representing 30 percent of its capital.
The Sharjah-based lender had blamed its exposure to NMC and the negative impact of the COVID-19 pandemic for the losses.
UAE-listed United Arab Bank (UAB) has appointed Thomas Mathew Alexander to take over the reins as interim chief executive officer of the company, according to a disclosure on Friday.
The appointment comes after Ahmad Mohammad Abu Eideh quit the position on December 14, 2021.
The bank, which has incurred financial losses, did not specify how long the interim chief executive will stay in the position, or when it expects to hire a permanent replacement.
“We will update you with any new information as and when received,” the bank told the Abu Dhabi Securities Exchange (ADX).
The bank reported 621.9 million dirhams ($169.3 million) in accumulated losses for the first nine months of 2021, representing 30 percent of its capital.
The Sharjah-based lender had blamed its exposure to NMC and the negative impact of the COVID-19 pandemic for the losses.
Oil’s Scorching Rally Cools After Prices Reach Seven-Year High - Bloomberg video
Oil’s Scorching Rally Cools After Prices Reach Seven-Year High - Bloomberg video
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Scouting for Deals, #UAE Firm Beeah Is Looking to Go Beyond Waste - Bloomberg #Sharjah
Scouting for Deals, UAE Firm Beeah Is Looking to Go Beyond Waste - Bloomberg
Beeah, a government-backed holding company in the United Arab Emirates, will make acquisitions this year to expand businesses including waste management and technology, according to its head.
“We are working on some deals right now for Beeah to acquire some companies,” Chief Executive Officer Khaled Al Huraimel said in an interview, declining to specify how much it aims to spend. “Our intention is to grow and scale up.”
Beeah, which means “environment” in Arabic, is also developing businesses in health care and digitalization, opening a data center and expanding technology services.
Sharjah-based Beeah recently adopted a holding company structure, which will make it easier to sell or spin off businesses in the future -- though there’s no imminent plan to do so now, Al Huraimel said.
Beeah, a government-backed holding company in the United Arab Emirates, will make acquisitions this year to expand businesses including waste management and technology, according to its head.
“We are working on some deals right now for Beeah to acquire some companies,” Chief Executive Officer Khaled Al Huraimel said in an interview, declining to specify how much it aims to spend. “Our intention is to grow and scale up.”
Beeah, which means “environment” in Arabic, is also developing businesses in health care and digitalization, opening a data center and expanding technology services.
Sharjah-based Beeah recently adopted a holding company structure, which will make it easier to sell or spin off businesses in the future -- though there’s no imminent plan to do so now, Al Huraimel said.
Fund in #AbuDhabi Tracking #Saudi Shares Is A First for Gulf ETFs - Bloomberg
Fund in Abu Dhabi Tracking Saudi Shares Is A First for Gulf ETFs - Bloomberg
The Persian Gulf’s nascent exchange-traded fund industry took another step forward this week with the launch of the first vehicle that invests in stocks from a neighboring country.
Chimera Capital LLC has listed the Chimera S&P KSA Shariah exchange-traded fund in Abu Dhabi. The product will allow traders in the UAE to track Saudi stocks via a local bourse -- a first for the Gulf’s fledgling ETF market.
The fund tracks the S&P Saudi Arabia Shariah Liquid Top 30 35/20 Capped Index, which is up 44% over the past year. The gauge tracks the top 30 largest and most liquid Shariah-compliant stocks listed in Saudi Arabia.
“The next obvious market was Saudi Arabia -- it’s the biggest market in the region,” Sherif Salem, the firm’s chief investment officer of public markets said in an interview.
The fund’s asset under management rose to 70 million dirhams ($19 million) by the end of the week, he said.
Gulf investors can choose between eight different equity-focused ETFs in the region, with three in Saudi Arabia, two in Qatar and three in the UAE. Exchanges in the UAE are stepping up efforts to diversify their product offerings and boost trading activity.
The Persian Gulf’s nascent exchange-traded fund industry took another step forward this week with the launch of the first vehicle that invests in stocks from a neighboring country.
Chimera Capital LLC has listed the Chimera S&P KSA Shariah exchange-traded fund in Abu Dhabi. The product will allow traders in the UAE to track Saudi stocks via a local bourse -- a first for the Gulf’s fledgling ETF market.
The fund tracks the S&P Saudi Arabia Shariah Liquid Top 30 35/20 Capped Index, which is up 44% over the past year. The gauge tracks the top 30 largest and most liquid Shariah-compliant stocks listed in Saudi Arabia.
“The next obvious market was Saudi Arabia -- it’s the biggest market in the region,” Sherif Salem, the firm’s chief investment officer of public markets said in an interview.
The fund’s asset under management rose to 70 million dirhams ($19 million) by the end of the week, he said.
Gulf investors can choose between eight different equity-focused ETFs in the region, with three in Saudi Arabia, two in Qatar and three in the UAE. Exchanges in the UAE are stepping up efforts to diversify their product offerings and boost trading activity.
Oil prices fall despite lingering supply concerns | Reuters
Oil prices fall despite lingering supply concerns | Reuters
Oil prices fell on Friday, pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the global benchmarks touched seven-year highs this week.
Brent crude futures were down $1.55, or 1.7%, at $86.83 a barrel by 1214 GMT. The contract earlier fell by as much as 3%, the most since Dec. 20. A day earlier the global benchmark hit a seven-year high of $89.50.
U.S. West Texas Intermediate (WTI) crude futures slid $1.62, or 1.8%, to $83.93. The contract had fallen as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday.
The recent rally in crude prices appeared to run out of steam on Thursday when Brent and WTI ended the trading session with slim losses, but both benchmarks have gained more than 10% this year and are heading for a fifth straight weekly gain.
Oil prices fell on Friday, pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the global benchmarks touched seven-year highs this week.
Brent crude futures were down $1.55, or 1.7%, at $86.83 a barrel by 1214 GMT. The contract earlier fell by as much as 3%, the most since Dec. 20. A day earlier the global benchmark hit a seven-year high of $89.50.
U.S. West Texas Intermediate (WTI) crude futures slid $1.62, or 1.8%, to $83.93. The contract had fallen as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday.
The recent rally in crude prices appeared to run out of steam on Thursday when Brent and WTI ended the trading session with slim losses, but both benchmarks have gained more than 10% this year and are heading for a fifth straight weekly gain.
#UAE bourses end higher on financial, telecom boost | Reuters
UAE bourses end higher on financial, telecom boost | Reuters
Stock markets in the United Arab Emirates (UAE) closed in the green on Friday, with Dubai's index buoyed by the financial sector and Abu Dhabi's riding on the back of telecom gains.
Dubai's main share index (.DFMGI) added 1.3%, as Emirates NBD Bank (ENBD.DU) registered its best jump since April 2020 of 6.3% ahead of its earnings results next week.
Analysts expect the bank to post a net profit of more than 9 billion dirhams ($2.45 billion) for 2021, up from 7 billion ($1.91 billion) dirhams a year earlier, according to Refinitiv data.
Abu Dhabi's index (.FTFADGI) edged up 0.3% as gains in telecom shares helped offset a slip in financial stocks.
Telecoms operator Etisalat Group (ETISALAT.AD) rose 3.2%, while the country's largest lender First Abu Dhabi Bank (FAB.AD) was down 1.3%.
The Dubai index gained 0.3% for the week, while Abu Dhabi's added 3.3%.
Markets in the UAE shifted to a new Monday-to-Friday working week from the start of the year to better align with global markets.
Stock markets in the United Arab Emirates (UAE) closed in the green on Friday, with Dubai's index buoyed by the financial sector and Abu Dhabi's riding on the back of telecom gains.
Dubai's main share index (.DFMGI) added 1.3%, as Emirates NBD Bank (ENBD.DU) registered its best jump since April 2020 of 6.3% ahead of its earnings results next week.
Analysts expect the bank to post a net profit of more than 9 billion dirhams ($2.45 billion) for 2021, up from 7 billion ($1.91 billion) dirhams a year earlier, according to Refinitiv data.
Abu Dhabi's index (.FTFADGI) edged up 0.3% as gains in telecom shares helped offset a slip in financial stocks.
Telecoms operator Etisalat Group (ETISALAT.AD) rose 3.2%, while the country's largest lender First Abu Dhabi Bank (FAB.AD) was down 1.3%.
The Dubai index gained 0.3% for the week, while Abu Dhabi's added 3.3%.
Markets in the UAE shifted to a new Monday-to-Friday working week from the start of the year to better align with global markets.
191 #Saudi entities become joint stock companies in 2021 | ZAWYA MENA Edition
191 Saudi entities become joint stock companies in 2021 | ZAWYA MENA Edition
The Ministry of Commerce revealed that a total of 191 limited liability companies were converted into closed joint stock companies in 2021, compared to only 53 in 2020.
The ministry said that the number of companies that transformed into closed joint stock companies soared 260 percent in 2021.
The transformation of various types of firms into closed joint stock companies has been on the rise since 2015. The number of closed joint stock companies jumped from 1,180 in 2015 to 2,102 in 2021, a rise of 78%.
According to the ministry, the privileges of transformation into closed joint stock companies include the multiple and diversified financing sources; the possibility of listing on the capital market; increased shareholder base; enhanced monitoring, governance, transparency, and higher flexibility of decision taking. — SG
The Ministry of Commerce revealed that a total of 191 limited liability companies were converted into closed joint stock companies in 2021, compared to only 53 in 2020.
The ministry said that the number of companies that transformed into closed joint stock companies soared 260 percent in 2021.
The transformation of various types of firms into closed joint stock companies has been on the rise since 2015. The number of closed joint stock companies jumped from 1,180 in 2015 to 2,102 in 2021, a rise of 78%.
According to the ministry, the privileges of transformation into closed joint stock companies include the multiple and diversified financing sources; the possibility of listing on the capital market; increased shareholder base; enhanced monitoring, governance, transparency, and higher flexibility of decision taking. — SG
#UAE-based Response Plus Medical looking to list on Saudi stock market | ZAWYA MENA Edition
UAE-based Response Plus Medical looking to list on Saudi stock market | ZAWYA MENA Edition
UAE-based company Response Plus Medical plans to list its shares on the Saudi stock exchange between 2023 and 2024, CEO Tom Lewis has said.
The company is the largest provider of emergency medical services in the UAE, and it is listed on the second market of the Abu Dhabi Stock Exchange with a market value estimated at 1.528 billion dirhams ($420 million).
It is looking to make Saudi Arabia one of its largest markets in the region, as it will invest 50 million dirhams in the Kingdom this year to provide at least 100 ambulances, Lewis said in an interview with Asharq.
In the past two years, Response Plus has invested 17 million dirhams in Saudi Arabia to provide 33 ambulances.
The company is the largest provider of emergency medical services in the UAE, and it is listed on the second market of the Abu Dhabi Stock Exchange with a market value estimated at 1.528 billion dirhams ($420 million).
It is looking to make Saudi Arabia one of its largest markets in the region, as it will invest 50 million dirhams in the Kingdom this year to provide at least 100 ambulances, Lewis said in an interview with Asharq.
In the past two years, Response Plus has invested 17 million dirhams in Saudi Arabia to provide 33 ambulances.
No change to #AbuDhabi ratings following Houthi drone attacks, says S&P | ZAWYA MENA Edition
No change to Abu Dhabi ratings following Houthi drone attacks, says S&P | ZAWYA MENA Edition
S&P Global Ratings said that explosions in Abu Dhabi, which initial reports suggest were due to drone strikes orchestrated by Iranian-backed Houthi rebels, reflect geopolitical risks already factored into the agency's sovereign ratings.
The UAE's largest emirate has a rating of AA/Stable/A-1+.
"Under our base-case scenario, however, we expect damage to infrastructure to be manageable given the relatively limited destructive capacity of the attacks so far. In our view, the exceptional strength of the government of Abu Dhabi's balance sheet remains a key support for the ratings. This is despite our assumption of high geopolitical uncertainty in the wider Gulf region resulting in unpredictable adverse developments such as these attacks in Abu Dhabi," said Trevor Cullinan, credit analyst, in a report.
The UAE is a member of the Saudi Arabian-led coalition fighting against the Houthis and other armed groups in Yemen since 2015. While the Houthis have threatened further attacks on the UAE, Saudi Arabia has largely borne the brunt of attacks given its proximity to Yemen, the report said.
"More generally, we do not expect tensions between Iran and its proxies and Gulf Cooperation Council Countries will lead to direct military conflict, although geopolitical risks in the region are likely to remain elevated and flare up from time to time."
According to the UAE's official news agency, the explosion of three petroleum tankers in an industrial area of Abu Dhabi on January 17, 2022, led to three deaths and six injured persons. Media reports also indicate a small fire at Abu Dhabi's international airport. Houthi rebels claimed responsibility for the attack.
S&P Global Ratings said that explosions in Abu Dhabi, which initial reports suggest were due to drone strikes orchestrated by Iranian-backed Houthi rebels, reflect geopolitical risks already factored into the agency's sovereign ratings.
The UAE's largest emirate has a rating of AA/Stable/A-1+.
"Under our base-case scenario, however, we expect damage to infrastructure to be manageable given the relatively limited destructive capacity of the attacks so far. In our view, the exceptional strength of the government of Abu Dhabi's balance sheet remains a key support for the ratings. This is despite our assumption of high geopolitical uncertainty in the wider Gulf region resulting in unpredictable adverse developments such as these attacks in Abu Dhabi," said Trevor Cullinan, credit analyst, in a report.
The UAE is a member of the Saudi Arabian-led coalition fighting against the Houthis and other armed groups in Yemen since 2015. While the Houthis have threatened further attacks on the UAE, Saudi Arabia has largely borne the brunt of attacks given its proximity to Yemen, the report said.
"More generally, we do not expect tensions between Iran and its proxies and Gulf Cooperation Council Countries will lead to direct military conflict, although geopolitical risks in the region are likely to remain elevated and flare up from time to time."
According to the UAE's official news agency, the explosion of three petroleum tankers in an industrial area of Abu Dhabi on January 17, 2022, led to three deaths and six injured persons. Media reports also indicate a small fire at Abu Dhabi's international airport. Houthi rebels claimed responsibility for the attack.
Oil falls on U.S. inventory build, profit taking | Reuters
Oil falls on U.S. inventory build, profit taking | Reuters
Oil prices fell on Friday, after rising to seven-year highs this week, after an unexpected rise in U.S. crude and fuel inventories and as investors took profits.
Brent crude futures were down $1.49, or 1.6%, to $86.89 a barrel by 1010 GMT. The contract earlier fell by as much as 3%, the most since Dec. 20. A day earlier the global benchmark touched fresh 7-year highs of $89.50 a barrel.
U.S. West Texas Intermediate (WTI) crude futures slid $1.52, or 1.7%, to $84.03 a barrel. The contract fell as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday.
The recent rally in crude prices appeared to run out of steam on Thursday when Brent and WTI ended the trading session with slim losses, but both benchmarks have gained more than 10% this year and are headed for a fifth straight weekly gain.
Oil prices fell on Friday, after rising to seven-year highs this week, after an unexpected rise in U.S. crude and fuel inventories and as investors took profits.
Brent crude futures were down $1.49, or 1.6%, to $86.89 a barrel by 1010 GMT. The contract earlier fell by as much as 3%, the most since Dec. 20. A day earlier the global benchmark touched fresh 7-year highs of $89.50 a barrel.
U.S. West Texas Intermediate (WTI) crude futures slid $1.52, or 1.7%, to $84.03 a barrel. The contract fell as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday.
The recent rally in crude prices appeared to run out of steam on Thursday when Brent and WTI ended the trading session with slim losses, but both benchmarks have gained more than 10% this year and are headed for a fifth straight weekly gain.
Fire erupts at #Kuwait petroleum site, week after fatal blaze | AP News
Fire erupts at Kuwait petroleum site, week after fatal blaze | AP News
A fire broke out early Friday at a site belonging to the Kuwait National Petroleum Company, forcing a suspension of export operations there, the company said in a statement.
The fire in the Shuaiba Industrial Area in eastern Kuwait did not result in any injuries, according to a brief statement issued by the company. The fire occurred at a petroleum coke flowline. The coal-like substance is a byproduct of refined crude oil that is used in the steel and aluminum industry.
Only a week ago, a deadly fire erupted during maintenance work at a major oil refinery run by the same company, killing two Asian workers. Another 10 were wounded, five of them critically. An earlier fire erupted at that same oil refinery three months prior, resulting in several injuries.
After last week’s deadly blaze, the CEO of the state-owned petroleum company, Waleed al-Bader, issued a statement in which he said that such incidents, while “very painful for us,” are “very likely in a complex industry.” He said the company is striving to reduce such incidents and conducting periodic reviews of procedures in place.
Kuwait, a nation home to 4.1 million people, has the world’s sixth-largest known oil reserves.
A fire broke out early Friday at a site belonging to the Kuwait National Petroleum Company, forcing a suspension of export operations there, the company said in a statement.
The fire in the Shuaiba Industrial Area in eastern Kuwait did not result in any injuries, according to a brief statement issued by the company. The fire occurred at a petroleum coke flowline. The coal-like substance is a byproduct of refined crude oil that is used in the steel and aluminum industry.
Only a week ago, a deadly fire erupted during maintenance work at a major oil refinery run by the same company, killing two Asian workers. Another 10 were wounded, five of them critically. An earlier fire erupted at that same oil refinery three months prior, resulting in several injuries.
After last week’s deadly blaze, the CEO of the state-owned petroleum company, Waleed al-Bader, issued a statement in which he said that such incidents, while “very painful for us,” are “very likely in a complex industry.” He said the company is striving to reduce such incidents and conducting periodic reviews of procedures in place.
Kuwait, a nation home to 4.1 million people, has the world’s sixth-largest known oil reserves.
Airbus (AIR) Accuses #Qatar Airways of Engineering A350 Grounding - Bloomberg
Airbus (AIR) Accuses Qatar Airways of Engineering A350 Grounding - Bloomberg
Airbus SE turned up the heat in a dispute with one of its biggest customers, accusing Qatar Airways of instigating a local grounding of A350 jetliners in order to claim compensation over alleged surface defects, and terminating a separate order for its hard-to-get A321neos.
“There is no reasonable or rational basis” for Qatari regulators to have grounded 21 of the A350s operated by the state-owned carrier, according to documents prepared by Airbus for a London court hearing on Thursday.
The planemaker will contend that Qatar Airways “sought to engineer or has acquiesced” in the groundings because it’s in the airline’s economic interest to idle planes “given the impact of the coronavirus pandemic” on demand.
The high-stakes battle is getting underway in London after Qatar Airways sued Airbus over defects with the surface paint of the twin-aisle jet. The planemaker said Thursday that it rescinded a separate contract to deliver smaller A321s, putting pressure on the Gulf airline as Qatar gears up to host the World Cup soccer event later this year.
“There is no reasonable or rational basis” for Qatari regulators to have grounded 21 of the A350s operated by the state-owned carrier, according to documents prepared by Airbus for a London court hearing on Thursday.
The planemaker will contend that Qatar Airways “sought to engineer or has acquiesced” in the groundings because it’s in the airline’s economic interest to idle planes “given the impact of the coronavirus pandemic” on demand.
The high-stakes battle is getting underway in London after Qatar Airways sued Airbus over defects with the surface paint of the twin-aisle jet. The planemaker said Thursday that it rescinded a separate contract to deliver smaller A321s, putting pressure on the Gulf airline as Qatar gears up to host the World Cup soccer event later this year.
Oil falls as investors scoop up profits after U.S. inventory build | Reuters
Oil falls as investors scoop up profits after U.S. inventory build | Reuters
Oil prices fell on Friday, after rising to seven-year highs this week, as investors took profits following a build-up in U.S. crude and fuel inventories, though overall sentiment remained solid due to concerns over tight supply and geopolitics.
Brent crude futures were down $1.00, or 1.1%, to $87.38 a barrel by 0747 GMT. The contract earlier fell by as much as 3%, the most since Dec. 20. A day earlier the global benchmark touched $89.50 a barrel, its highest since October 2014.
U.S. West Texas Intermediate (WTI) crude futures slid $1.16, or 1.4%, to $84.39 a barrel. The contract earlier fell as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday.
The recent rally in crude prices appeared to run out of steam on Thursday when Brent and WTI ended the trading session with slim losses, but both benchmarks have gained more than 10% this year and are headed for a fifth straight weekly gain.
Oil prices fell on Friday, after rising to seven-year highs this week, as investors took profits following a build-up in U.S. crude and fuel inventories, though overall sentiment remained solid due to concerns over tight supply and geopolitics.
Brent crude futures were down $1.00, or 1.1%, to $87.38 a barrel by 0747 GMT. The contract earlier fell by as much as 3%, the most since Dec. 20. A day earlier the global benchmark touched $89.50 a barrel, its highest since October 2014.
U.S. West Texas Intermediate (WTI) crude futures slid $1.16, or 1.4%, to $84.39 a barrel. The contract earlier fell as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday.
The recent rally in crude prices appeared to run out of steam on Thursday when Brent and WTI ended the trading session with slim losses, but both benchmarks have gained more than 10% this year and are headed for a fifth straight weekly gain.