Oil slides 2% as EU fails to boycott Russian crude | ReutersCrude prices slid 2% on Thursday after the European Union (EU) could not agree on a plan to boycott Russian oil and on reports that exports from Kazakhstan's Caspian Pipeline Consortium (CPC) terminal could partially resume.
European Union leaders are set to agree at a two-day summit starting on Thursday to jointly buy natural gas as they seek to cut reliance on Russian fuels, with some saying they would not comply with Moscow's demand to buy oil and gas using roubles. read more
But EU countries remain divided on whether to sanction Russian oil and gas directly, a move already taken by the United States.
Brent futures fell $2.57, or 2.1%, to settle at $119.03 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.59, or 2.3%, to settle at $112.34.
On Wednesday, both benchmarks closed at their highest since March 8.
Russia's invasion of Ukraine on Feb. 24 has prompted the EU to pledge to slash reliance on Russian fossil fuels by hiking imports from other countries and quickly expanding renewable energy.
Oil slides 2% as U.S., allies consider releasing more oil | Reuters
Crude prices slide 2% on Thursday as the United States and its allies discussed a possible further coordinated release of oil from storage to help calm energy markets roiled by Russia's invasion of Ukraine.
Brent futures fell $2.63, or 2.2%, to $118.97 a barrel by 11:43 a.m. EDT (1543 GMT). U.S. West Texas Intermediate (WTI) crude fell $2.26, or 2.0%, to $112.67.
"With respect to the emergency stockpiles, these are ongoing discussions and all those tools are certainly on the table," U.S. Energy Secretary Jennifer Granholm said during a news conference at the International Energy Agency (IEA) in Paris. read more
IEA Executive Director Fatih Birol said IEA countries were united in seeking to radically reduce Russian oil and gas imports.
Prices fell more after ICE said it has increased the margins for May Brent crude futures by 19% effective March 25.
U.S. refiners turn to Middle East for fuel oil after Russia import ban | Reuters
U.S. refiners have begun snapping up fuel oil cargoes from the Middle East this month after U.S. President Joe Biden banned Russian oil imports over the country's invasion of Ukraine, shipping data showed.
The United States last year imported about 700,000 barrels per day (bpd) of different types of fuel oil and other feedstocks that mostly went to U.S. Gulf Coast refineries to supplement heavy crude oil, according to market research data.
Russia last year accounted for just under half of U.S. fuel oil imports, Mexico for 20% and the Middle East about 5%, according to data from research firm Kpler.
Middle East supplies are set to make up at least 17% of April U.S. fuel oil purchases, according to preliminary Refinitiv Eikon tanker tracking data.
DEWA IPO: Alpha Dhabi to Invest $100 Million in Dubai’s Utility Listing - Bloomberg
Alpha Dhabi Holding PJSC will invest $100 million in Dubai Electricity & Water Authority’s initial public offering, a person familiar with the matter said.
The 367 million dirham investment by Alpha Dhabi, one of the largest listed firms in the United Arab Emirates, is equivalent to 4.5% of the total DEWA shares on offer.
The utility is looking to raise as much as $2.2 billion in its initial public offering, in what would be Dubai’s biggest listing since DP World in 2007. The firm got demand that exceeded the number of shares on offer within hours of launching the deal, according to terms seen by Bloomberg.
The listing drew in six cornerstone investors in total, who agreed to subscribe for shares worth as much as $1.3 billion at the offer price.
Mashreq Bank to support upcoming IPOs subscription on DFM
Mashreq Bank, one of the leading financial institutions in the UAE, will be offering its retail customers the opportunity to subscribe to upcoming initial public offerings (IPOs) on Dubai Financial Market (DFM) through the Mashreq mobile banking app and online banking platform.
Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “DFM’s ultimate objective is to put market services at the fingertips of investors so that they can seamlessly participate in the upcoming IPOs anytime anywhere. We are pleased to see this commitment from Mashreq Bank to facilitate the subscription process, which clearly indicates the importance of concerted efforts between DFM and leading financial institutions to strengthen digital transformation in Dubai and advance investors’ experience to new heights.”
This new initiative launched by Mashreq comes as Dubai prepares to publicly list 10 government-owned companies on the DFM, as announced by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance and Chairman of the Higher Committee for the Development of Financial Markets in Dubai, with the aim of expanding the financial market’s capitalization to Dh3 trillion ($816.8 billion).
Seera’s subsidiary eyes IPO for Tadawul listening
Seera Group Holding is currently discussing the initial public offering (IPO) of its subsidiary, Lumi Rental Company, to list and trade its shares on the Saudi Exchange (Tadawul).
Meanwhile, the company and the group are conducting detailed feasibility studies to cover all organisational, financial, technical, and legal aspects of the IPO.
Located in the city of Riyadh, Lumi Rental is engaged in providing car rental services.
It is worth noting that during the third quarter (Q3) of 2021, Seera suffered net losses after Zakat and tax worth SAR 72 million, an annual decline of 60% from SAR 180 million.
ADQ and Turkey's wealth fund form $300m fund to invest in tech start-ups
Abu Dhabi's holding company ADQ and Turkey Wealth Fund formed a new $300 million technology fund that will focus on investing in start-ups in Turkey, further deepening the UAE's investment ties in the country.
Turkey Technology Fund (ADQ TWF) will invest in companies developing new technologies or improving existing technology in sectors that include energy and utilities, health care and life sciences, food and agriculture, mobility and logistics, financial services, and education, the Abu Dhabi Government Media Office said on Thursday.
"Turkey is an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise," said Mohamed Alsuwaidi, managing director and chief executive of ADQ.
"By providing access to the national and regional champions in our portfolio, we will help to unlock even greater value for these companies and funds with high-growth potential.”
Gulf markets end mixed on Ukraine worries | Reuters
Middle East markets ended mixed on Thursday as the war in Ukraine kept investors jittery, stoking concerns over slowing growth and high inflation.
Oil prices rose marginally to $121.95 a barrel, as the U.S. president met other Western leaders and investors waited to see how sanctions would be tightened on Russia over its invasion of Ukraine.
All eyes were on the special NATO summit in Brussels later in the day, which U.S. President Joe Biden will attend, to discuss further responses to Russia's month-old invasion of Ukraine, which Moscow calls a "special military operation". read more
"GCC stock markets moved in different directions as the global uncertainties weigh on investors’ expectations while local events such as IPOs and strong fundamentals provide a balance," said Miguel Rodriguez, Chief Market Analyst, MENA, at CAPEX.com.
Saudi Arabia's benchmark index (.TASI) ended flat, with gains in material stocks offset by losses in financials.
Shares of Al Sagr Cooperative Insurance (8180.SE) rose 2.9% after the company posted a smaller annual loss.
Abu Dhabi's index (.FTFADGI) ended up 0.2%, while Dubai's main share index (.DFMGI) gained 0.5%.
Emirates NBD Bank (ENBD.DU) and Emaar Properties (EMAR.DU) led gains on the index.
The Qatari index (.QSI) recovered from the earlier sombre mood to end the session 0.8% higher, its fourth consecutive session of gains.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended down 0.3%.
EXCLUSIVE OPEC officials tell EU of unease about proposed ban on Russian oil, sources say | Reuters
OPEC officials believe a possible European Union ban on oil from its partner Russia would hurt consumers and the group has conveyed its concerns to Brussels, OPEC sources said.
Major OPEC members, such as Saudi Arabia and the United Arab Emirates, have tried to navigate a neutral course between the West and Moscow, while OPEC+, a grouping that includes Russia, has steered clear of the Ukraine issue in its policy meetings.
The EU, which relies heavily on Russian crude, has already imposed tough sanctions on Russia, including freezing its central bank's assets. The bloc has been discussing whether and how to put sanctions on Russia's energy industry. read more
OPEC officials including Secretary General Mohammad Barkindo met EU Energy Commissioner Kadri Simson on March 16 to discuss the "extraordinary times" for the energy market, Simson said on Twitter.
Oil prices steady as Western leaders meet over Ukraine crisis | Reuters
Oil prices were steady on Thursday as the U.S. president met other Western leaders and investors waited to see how sanctions would be tightened on Russia over its invasion of Ukraine.
Benchmark Brent was up 0.3% at $121.95 a barrel by 1111 GMT, after falling by close to $2 earlier in the session. U.S West Texas Intermediate (WTI) was little changed at $114.96 a barrel, after also shedding $2 earlier.
U.S. President Biden was meeting NATO leaders in Brussels for emergency talks as the Ukraine war entered a second month. Biden and European leaders plan to announce additional sanctions against Russia.
Commerzbank analyst Carsten Fritsch said sanctions were unlikely to have a major impact on the oil market because they "will probably not include an oil embargo by the EU, as a number of countries that are heavily depend on Russian oil — such as Germany — have opposed this."
Saudi’s PIF completes $41mln Dubai design firm Depa deal
Nasdaq Dubai listed interior design and speciality contractor Depa PLC has completed its AED 150 million ($41 million) transaction with Saudi Arabia’s Public Investment Fund (PIF).
In a Nasdaq statement today, Depa said PIF would receive 750,000 new ordinary A shares and the issuance of warrants to subscribe for 272,829,158 additional ordinary A shares.
As a result of the transaction, PIF now holds 54.5 percent of voting rights and the rights to distribution of Depa, the company said.
PIF also nominated six new company board members who will serve as non-executive directors, effective from today.
The company, which is headquartered in Dubai, said it expects to benefit from new synergies, including using its luxury fitout expertise in Saudi Arabia’s expanding luxury hospitality market.
In 2020, Depa confirmed $22 million exposure to UAE construction giant Arabtec, which was dissolved in September 2020.
Dubai’s DEWA Set to Be Among World’s Largest Listed Utilities - Bloomberg
Dubai’s main power and water company is set to join the ranks of the world’s largest utilities after unveiling plans to list at a $34 billion valuation.
The top end of its IPO price range would catapult Dubai Electricity & Water Authority into a list of the top 20 biggest listed utilities, valuing it at more than Britain’s SSE Plc, Spain’s Endesa SA, Germany’s E.ON SE and Portugal’s EDP SA, according to data compiled by Bloomberg.
DEWA is looking to raise as much as $2.2 billion in its initial public offering, in what would be the emirate’s biggest listing since DP World in 2007. Abu Dhabi National Energy Co PJSC will remain the largest listed utility in the Persian Gulf, while Saudi Electricity Co. will drop to third place in the region.
Oman to Use Oil Windfall to Cut Public Debt, Boost Spending - Bloomberg
Oman plans to use the windfall from surging oil prices to trim its public debt and boost spending on developmental projects, according to the Gulf nation’s ruler.
“We will seek to exploit the high oil revenues as much as possible to get rid of the state’s public debt,” Sultan Haitham bin Tariq said, according to state-run Oman News Agency. “What is left will be spent on development projects.”
Oil’s surge on the back of Russia’s invasion of Ukraine has pushed crude above the break-even level for almost all the Middle East’s producers, raising the prospect of significant budget surpluses for even the weakest economies if prices remain high.
Oman has implemented a series of reforms to balance its budget and lower its debt, including the introduction of value-added tax last year. The sultanate’s finance ministry in January projected a budget deficit of $3.9 billion for this year, based on oil prices at $50 a barrel.
Dubai’s DEWA Seeks $2.2 Billion in Biggest IPO Since DP World - Bloomberg
Dubai’s main power and water company is looking to raise as much as $2.2 billion in its initial public offering, in what would be the emirate’s biggest listing since DP World in 2007.
Dubai Electricity & Water Authority plans to sell a 6.5% stake, or 3.25 billion shares, at 2.25 dirhams to 2.48 dirhams apiece, valuing the firm at as much as $33.8 billion. The listing, which will make DEWA the biggest company on the emirate’s bourse, marks the first step in Dubai’s ambitious plan to reinvigorate its flagging capital markets.
The deal drew in six cornerstone investors, including wealth funds Emirates Investment Authority and Abu Dhabi’s ADQ, who agreed to subscribe for shares worth as much as 4.7 billion dirhams ($1.3 billion) at the offer price.
DEWA is seeking to take advantage of strong investor interest for new share offerings in the region even as equity markets around the world are roiled by Russia’s invasion of Ukraine, rising inflation and hawkish central bank policies. High oil prices have been a boon for the energy-rich Persian Gulf, however, allowing IPOs to go ahead while issuers elsewhere sit on the sidelines.
“The volatility we’re seeing exists in equity markets outside our region. This is a boom time for our region,” Akber Khan, a senior director at Doha-based Al Rayan Investment, said to Bloomberg Television. Khan added that he see energy prices remaining high for several years.
Markets fall amid fears of higher inflation | Reuters
Major Gulf bourses inched lower on Thursday, mirroring sentiment across the globe as fears of higher inflation spooked investors amid see-sawing oil prices.
Asian shares struggled, weighed down by concerns over the latest developments in the Ukraine war and more hawkish comments from U.S. central bank officials, while crude prices remained unstable as investors assessed the potential for new supply in a tight market amid prospects of a new Iran deal.
Oil prices had jumped on Wednesday following reports that crude exports from Kazakhstan's Caspian Pipeline Consortium terminal had completely halted following storm damage. Russia's deputy prime minister said oil supplies could be stopped for two months. read more
U.S. President Joe Biden arrived in Brussels for a series of summit meetings on the Ukraine War, with Biden set to announce a U.S. package of Russia-related sanctions on political figures and oligarchs on Thursday.
Saudi Arabia's benchmark index (.TASI) was down 0.1%, with losses in financials offset by gains in energy and utility stocks.
Shares of Al Sagr Cooperative Insurance (8180.SE) rose 3.2% after the company posted a smaller annual loss.
Abu Dhabi's index (.FTFADGI) was flat, while Dubai's main share index (.DFMGI) edged 0.1% lower.
Dubai Islamic Bank (DISB.DU) was the top drag on the index with a 0.3% fall.
The Qatari index (.QSI) was trading flat after rising for three straight sessions.
Oil prices see-saw amid hopes of Iran deal, supply woes linger | Reuters
Crude prices declined in volatile trading on Thursday as investors assessed the potential for new supply in tight markets amid prospects of a new Iran deal.
Brent futures were down 15 cents, or 0.12%, at $121.45 a barrel, after falling more than $1 earlier in the session.
U.S. West Texas Intermediate futures fell 75 cents, or 0.65%, to $114.18 a barrel at 0729 GMT, after shedding over $2 earlier.
The contracts had gained $2 and $1, respectively, in morning trade.
