Oil slumps 7% as U.S. plans record crude reserve release | Reuters
U.S. oil prices fell 7% to close just above $100 on Thursday as President Joe Biden announced the largest ever release from the U.S. Strategic Petroleum Reserve and called on oil companies to increase drilling to boost supply.
U.S. West Texas Intermediate futures for May delivery settled down $7.54, or 7%, at $100.28 a barrel, after touching a low of $99.66.
Brent crude futures for May, which expired on Thursday, closed down $5.54, or 4.8%, at $107.91 a barrel. The more actively traded June futures were down 5.6% at $105.16, after falling by $7 earlier in the session.
Both benchmarks posted their highest quarterly percentage gains since the second quarter of 2020, with Brent soaring 38% and WTI gaining 34%, boosted mainly after Russia's Feb. 24 invasion of Ukraine which Moscow calls a "special operation."
Thursday, 31 March 2022
#Oman to use surplus from higher oil prices to reduce public debt | Reuters
Oman to use surplus from higher oil prices to reduce public debt | Reuters
Oman expects to reduce its public debt to 19.46 billion Omani riyals by using the surplus arising from selling oil at higher prices and repaying some loans by end of April 2022, the finance ministry said on Thursday.
The ministry expects to repay loans worth 2.85 billion Omani riyals by end of April as part of its public debt management strategy.
"The government plans to utilise the financial surplus arising from higher oil prices to repay part of the public debt, reduce the fiscal deficit and minimise the cost and risk of the debt portfolio," the ministry also said.
Oman expects to reduce its public debt to 19.46 billion Omani riyals by using the surplus arising from selling oil at higher prices and repaying some loans by end of April 2022, the finance ministry said on Thursday.
The ministry expects to repay loans worth 2.85 billion Omani riyals by end of April as part of its public debt management strategy.
"The government plans to utilise the financial surplus arising from higher oil prices to repay part of the public debt, reduce the fiscal deficit and minimise the cost and risk of the debt portfolio," the ministry also said.
Oil prices dive as U.S. set to announce record reserves release | Reuters
Oil prices dive as U.S. set to announce record reserves release | Reuters
Oil prices tumbled on Thursday with the United States set to announce the largest ever release from its Strategic Petroleum Reserve, while OPEC+ stuck to its existing deal for May output.
Brent crude futures for May, which expire on Thursday, were down $5.28, or 4.65%, at $108.17 a barrel by 12:31 a.m. ET. The more actively traded June futures were down 3.2% at $107.86, after falling by $7.
U.S. West Texas Intermediate futures for May delivery were down $3.88, or 3.6%, at $103.92 a barrel, off a low of $103.90.
Front-month futures for U.S. crude and Brent were on track for their highest quarterly percentage gains since the second quarter of 2020.
Oil prices tumbled on Thursday with the United States set to announce the largest ever release from its Strategic Petroleum Reserve, while OPEC+ stuck to its existing deal for May output.
Brent crude futures for May, which expire on Thursday, were down $5.28, or 4.65%, at $108.17 a barrel by 12:31 a.m. ET. The more actively traded June futures were down 3.2% at $107.86, after falling by $7.
U.S. West Texas Intermediate futures for May delivery were down $3.88, or 3.6%, at $103.92 a barrel, off a low of $103.90.
Front-month futures for U.S. crude and Brent were on track for their highest quarterly percentage gains since the second quarter of 2020.
#AbuDhabi Wealth Fund ADQ Buys Stake in Unifrutti to Aid Food Supply - Bloomberg
Abu Dhabi Wealth Fund ADQ Buys Stake in Unifrutti to Aid Food Supply - Bloomberg
Abu Dhabi wealth fund ADQ agreed to buy a majority stake in Unifrutti Group as the coronavirus pandemic and the war in Ukraine prompt countries to take more steps to safeguard their food supply.
The proposed investment will help Unifrutti, a producer and distributor of fresh fruits and vegetables, expand its global footprint and bolster the food security of the United Arab Emirates, of which Abu Dhabi is the capital, according to a statement. Terms of the deal weren’t disclosed.
The pandemic has forced a rethink among many nations on how to feed their people. Oil-rich but water-scarce countries like the UAE, which imports most of its food, have been working on boosting domestic output and investing in farming abroad. Russia’s invasion of Ukraine, two of the major producers of grains, is now accelerating those plans.
For ADQ, the investment in Unifrutti will build on its food and agriculture portfolio. In 2020, the fund bought a 45% stake in Louis Dreyfus Co., one of the world’s largest traders of grains, oilseeds and sugar. Its agriculture portfolio also includes investments in Abu Dhabi-based companies such as Silal, Al Dahra Holding and Agthia Group.
“Our investment in Unifrutti would enable ADQ to develop a global platform for fresh produce that complements our other portfolio companies throughout the food value chain,” said Gil Adotevi, executive director of food and agriculture at ADQ.
Unifrutti, founded by Guido de Nadai in the 1940s as a fruit and vegetable import and export firm, operates in more than 50 countries, according to its website. With head office in Cyprus, the company had a pro forma consolidated turnover of $709 million in 2020 and employs about 11,000 people.
Abu Dhabi wealth fund ADQ agreed to buy a majority stake in Unifrutti Group as the coronavirus pandemic and the war in Ukraine prompt countries to take more steps to safeguard their food supply.
The proposed investment will help Unifrutti, a producer and distributor of fresh fruits and vegetables, expand its global footprint and bolster the food security of the United Arab Emirates, of which Abu Dhabi is the capital, according to a statement. Terms of the deal weren’t disclosed.
The pandemic has forced a rethink among many nations on how to feed their people. Oil-rich but water-scarce countries like the UAE, which imports most of its food, have been working on boosting domestic output and investing in farming abroad. Russia’s invasion of Ukraine, two of the major producers of grains, is now accelerating those plans.
For ADQ, the investment in Unifrutti will build on its food and agriculture portfolio. In 2020, the fund bought a 45% stake in Louis Dreyfus Co., one of the world’s largest traders of grains, oilseeds and sugar. Its agriculture portfolio also includes investments in Abu Dhabi-based companies such as Silal, Al Dahra Holding and Agthia Group.
“Our investment in Unifrutti would enable ADQ to develop a global platform for fresh produce that complements our other portfolio companies throughout the food value chain,” said Gil Adotevi, executive director of food and agriculture at ADQ.
Unifrutti, founded by Guido de Nadai in the 1940s as a fruit and vegetable import and export firm, operates in more than 50 countries, according to its website. With head office in Cyprus, the company had a pro forma consolidated turnover of $709 million in 2020 and employs about 11,000 people.
Oil Production: OPEC+ Insists on Steady Hikes as U.S. Plans Stockpile Releases - Bloomberg
Oil Production: OPEC+ Insists on Steady Hikes as U.S. Plans Stockpile Releases - Bloomberg
OPEC and its allies stood back from the crisis engulfing oil markets, refusing to deviate from their schedule of gradual production increases as the U.S. considered an unprecedented release from emergency crude stockpiles.
The cartel ratified the 432,000 barrel-a-day supply increase scheduled for May at an online meeting on Thursday, according to a statement. The decision was in line with expectations and very much peripheral to the main driver of prices on the market -- President Joe Biden’s plan to release about 1 million barrels a day from crude reserves for several months to ease the disruption caused by Russia’s invasion of Ukraine.
Brent crude, the international benchmark, was down 5.6% at $107.05 as of 1:05 p.m. in London.
Consumers are taking matters into their own hands because the Organization of Petroleum Exporting Countries and its allies are resisting being drawn into the political crisis caused by the military aggression of one of their leading members.
OPEC and its allies stood back from the crisis engulfing oil markets, refusing to deviate from their schedule of gradual production increases as the U.S. considered an unprecedented release from emergency crude stockpiles.
The cartel ratified the 432,000 barrel-a-day supply increase scheduled for May at an online meeting on Thursday, according to a statement. The decision was in line with expectations and very much peripheral to the main driver of prices on the market -- President Joe Biden’s plan to release about 1 million barrels a day from crude reserves for several months to ease the disruption caused by Russia’s invasion of Ukraine.
Brent crude, the international benchmark, was down 5.6% at $107.05 as of 1:05 p.m. in London.
Consumers are taking matters into their own hands because the Organization of Petroleum Exporting Countries and its allies are resisting being drawn into the political crisis caused by the military aggression of one of their leading members.
Putin Says Gas Exports to Be Halted If Ruble Payments Not Made - Bloomberg
Putin Says Gas Exports to Be Halted If Ruble Payments Not Made - Bloomberg
Russia will halt gas supplies to buyers from ‘unfriendly’ states unless they switch to payments in rubles from April 1, President Vladimir Putin said, the latest strike in a struggle with Europe over energy sales.
“To buy Russian gas, they need to open ruble accounts in Russian banks,” Putin told officials in a televised speech Thursday. “It is from those accounts that gas will be paid for starting April 1. If such payments aren’t made, we will consider this a failure by the client to comply with its obligations.”
Buyers should open special accounts in state-controlled Gazprombank to allow foreign currency to be swapped to rubles for settlements, according to an order signed by Putin.
Russia will halt gas supplies to buyers from ‘unfriendly’ states unless they switch to payments in rubles from April 1, President Vladimir Putin said, the latest strike in a struggle with Europe over energy sales.
“To buy Russian gas, they need to open ruble accounts in Russian banks,” Putin told officials in a televised speech Thursday. “It is from those accounts that gas will be paid for starting April 1. If such payments aren’t made, we will consider this a failure by the client to comply with its obligations.”
Buyers should open special accounts in state-controlled Gazprombank to allow foreign currency to be swapped to rubles for settlements, according to an order signed by Putin.
#Kuwait's sovereign wealth fund says #Russia investments 'negligible', document shows | Reuters
Kuwait's sovereign wealth fund says Russia investments 'negligible', document shows | Reuters
Kuwait's sovereign wealth fund said the exposure of its main long-term investment fund to Russia and Ukraine was no more than 0.29% of total investments as it had been underweight on the region even before the war, a document reviewed by Reuters showed.
The Kuwait Investment Authority held cash worth 13% of its total assets at the end of 2021, higher than global asset managers' average, that it could deploy, it said in the document dated March 22. It was sent to the finance ministry in response to a parliamentary query about the impact on KIA's investments from Western sanctions on Russia after its invasion of Ukraine.
Kuwait's sovereign wealth fund said the exposure of its main long-term investment fund to Russia and Ukraine was no more than 0.29% of total investments as it had been underweight on the region even before the war, a document reviewed by Reuters showed.
The Kuwait Investment Authority held cash worth 13% of its total assets at the end of 2021, higher than global asset managers' average, that it could deploy, it said in the document dated March 22. It was sent to the finance ministry in response to a parliamentary query about the impact on KIA's investments from Western sanctions on Russia after its invasion of Ukraine.
Most markets recoup losses; #AbuDhabi gets Etisalat boost | Reuters
Most markets recoup losses; Abu Dhabi gets Etisalat boost | Reuters
Most Gulf markets ended flat or slightly higher on Thursday, recovering from earlier losses after oil prices plunged on news the United States was weighing its largest-ever drawdown from its oil reserves to control rising prices.
The United States is considering releasing up to 180 million barrels of oil over several months from strategic reserves, four U.S. sources said. read more
European stocks were set for their biggest quarterly drop since the start of 2020, as eastern Ukraine braced for fresh Russian attacks.
"The Dubai stock market stalled after a series of increases as investors move to secure their gains," said Fadi Reyad, market analyst at CAPEX.com MENA.
Dubai's main share index (.DFMGI) ended flat, as losses in real estate stocks were offset by gains in financial stocks.
The index ended the week 3.4% higher, as investors have been flocking to the region after state utility Dubai Electricity and Water Authority (DEWA) opened for subscription last week.
The index has risen over 10% this quarter, while the Abu Dhabi index (.FTFADGI) has jumped 17.2%.
In Abu Dhabi, the index rose 1% on Thursday, after climbing in seven of the previous eight sessions.
Emirates Telecommunications Group (Etisalat) (ETISALAT.AD) boosted sentiment, having ended 2.7% higher, after Nokia said the companies would launch 5G private wireless networks.
Saudi Arabia's benchmark index (.TASI) ended up 0.4%, with state-run Saudi Aramco (2222.SE) gaining 3.4%.
The index has risen 15.7% for the quarter.
The Qatari index (.QSI) inched marginally lower, but rose 16% for the quarter.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended flat.
Most Gulf markets ended flat or slightly higher on Thursday, recovering from earlier losses after oil prices plunged on news the United States was weighing its largest-ever drawdown from its oil reserves to control rising prices.
The United States is considering releasing up to 180 million barrels of oil over several months from strategic reserves, four U.S. sources said. read more
European stocks were set for their biggest quarterly drop since the start of 2020, as eastern Ukraine braced for fresh Russian attacks.
"The Dubai stock market stalled after a series of increases as investors move to secure their gains," said Fadi Reyad, market analyst at CAPEX.com MENA.
Dubai's main share index (.DFMGI) ended flat, as losses in real estate stocks were offset by gains in financial stocks.
The index ended the week 3.4% higher, as investors have been flocking to the region after state utility Dubai Electricity and Water Authority (DEWA) opened for subscription last week.
The index has risen over 10% this quarter, while the Abu Dhabi index (.FTFADGI) has jumped 17.2%.
In Abu Dhabi, the index rose 1% on Thursday, after climbing in seven of the previous eight sessions.
Emirates Telecommunications Group (Etisalat) (ETISALAT.AD) boosted sentiment, having ended 2.7% higher, after Nokia said the companies would launch 5G private wireless networks.
Saudi Arabia's benchmark index (.TASI) ended up 0.4%, with state-run Saudi Aramco (2222.SE) gaining 3.4%.
The index has risen 15.7% for the quarter.
The Qatari index (.QSI) inched marginally lower, but rose 16% for the quarter.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended flat.
Oil prices dive as U.S. considers record reserves release | Reuters
Oil prices dive as U.S. considers record reserves release | Reuters
Oil prices plunged on Thursday on news that the United States was considering the largest ever release from its Strategic Petroleum Reserve, while OPEC+ stuck to its existing deal for May output.
Brent crude futures for May, which expire on Thursday, were down $5.91, or 5.21%, to $107.54 a barrel by 1253 GMT.
The most actively traded June futures were down $5.53 at $105.91, after falling by $7.
U.S. West Texas Intermediate futures for May delivery was down $6.06, or 5.62%, to $101.76 a barrel, off a low of $100.16.
The record U.S. SPR oil release of 180 million barrels is the equivalent to two days of global demand and would hit the market over several months, four U.S. sources said on Wednesday, as the White House tries to lower fuel prices. read more
Oil prices plunged on Thursday on news that the United States was considering the largest ever release from its Strategic Petroleum Reserve, while OPEC+ stuck to its existing deal for May output.
Brent crude futures for May, which expire on Thursday, were down $5.91, or 5.21%, to $107.54 a barrel by 1253 GMT.
The most actively traded June futures were down $5.53 at $105.91, after falling by $7.
U.S. West Texas Intermediate futures for May delivery was down $6.06, or 5.62%, to $101.76 a barrel, off a low of $100.16.
The record U.S. SPR oil release of 180 million barrels is the equivalent to two days of global demand and would hit the market over several months, four U.S. sources said on Wednesday, as the White House tries to lower fuel prices. read more
First #AbuDhabi Bank gives initial price guidance on green bonds | Reuters
First Abu Dhabi Bank gives initial price guidance on green bonds | Reuters
First Abu Dhabi Bank (FAB.AD) gave initial price guidance of about 85 basis points over mid-swaps for five-year benchmark euro-denominated green bonds, it said in a document on Thursday.
Barclays, Deutsche Bank, First Abu Dhabi Bank and Standard Chartered are arranging the deal, which is expected to launch later on Thursday, the document from one of the banks showed.
First Abu Dhabi Bank (FAB.AD) gave initial price guidance of about 85 basis points over mid-swaps for five-year benchmark euro-denominated green bonds, it said in a document on Thursday.
Barclays, Deutsche Bank, First Abu Dhabi Bank and Standard Chartered are arranging the deal, which is expected to launch later on Thursday, the document from one of the banks showed.
Islamic Finance Deals Have the Best Start Ever With Oil Up 40% - Bloomberg
Islamic Finance Deals Have the Best Start Ever With Oil Up 40% - Bloomberg
Global offerings of sukuk are off to their busiest start on record this year, with bankers at HSBC Holdings Plc and Deutsche Bank AG citing the high price of oil as a driver of the vibrant issuance.
Sales of new sukuk maturing in at least a year have touched nearly $24 billion so far in 2022, the best start to any year, according to Bloomberg-compiled data going back to 1999. Saudi Arabia and Turkey were the two biggest issuers.
Although it slid on Thursday, crude is up roughly 40% this year, leaving investors in oil-producing countries, some of the biggest markets for Islamic finance, flush with cash. With fixed-income markets in upheaval as the U.S. raises interest rates, Shariah-compliant debt has fared better than global bonds with investment-grade ratings, losing only 4% versus their 7% dive so far this year, according to Bloomberg indexes.
“There has been pent-up liquidity and demand for Islamic Sukuk for quite a while and that, coupled with challenging market conditions overall affecting primary and secondary markets, is driving increasing interest in Sukuk issuance relative to conventional bond issuance,” said Khaled Darwish, Middle East and north Africa’s head of debt capital markets at HSBC.
Global offerings of sukuk are off to their busiest start on record this year, with bankers at HSBC Holdings Plc and Deutsche Bank AG citing the high price of oil as a driver of the vibrant issuance.
Sales of new sukuk maturing in at least a year have touched nearly $24 billion so far in 2022, the best start to any year, according to Bloomberg-compiled data going back to 1999. Saudi Arabia and Turkey were the two biggest issuers.
Although it slid on Thursday, crude is up roughly 40% this year, leaving investors in oil-producing countries, some of the biggest markets for Islamic finance, flush with cash. With fixed-income markets in upheaval as the U.S. raises interest rates, Shariah-compliant debt has fared better than global bonds with investment-grade ratings, losing only 4% versus their 7% dive so far this year, according to Bloomberg indexes.
“There has been pent-up liquidity and demand for Islamic Sukuk for quite a while and that, coupled with challenging market conditions overall affecting primary and secondary markets, is driving increasing interest in Sukuk issuance relative to conventional bond issuance,” said Khaled Darwish, Middle East and north Africa’s head of debt capital markets at HSBC.
Mideast Stocks: Oil drags markets lower as U.S. weighs reserves release
Mideast Stocks: Oil drags markets lower as U.S. weighs reserves release
Major Gulf stock markets fell on Thursday, dragged down by a drop in crude prices as the United States weighs its largest-ever drawdown from its oil reserves to control rising prices.
The United States is considering releasing up to 180 million barrels of oil over several months from strategic reserves, four U.S. sources said, as the White House tries to lower fuel prices that have surged since Russia invaded Ukraine late last month.
Meanwhile, OPEC+ sources said on Wednesday the producer alliance which includes Russia was likely to stick to its existing deal to gradually increase oil production, a view echoed by OPEC Secretary General Mohammad Barkindo.
The full ministerial meeting of a joint technical committee that advises OPEC+ on market fundamentals will take place later in the day.
Asian stocks declined as China reported weak manufacturing data and uncertainty over the war in Ukraine dragged on.
Saudi Arabia's benchmark index shed 0.2%, with oil giant Saudi Aramco down 0.4%.
Dubai's main share index edged lower, weighed down by real estate and financial stocks. The index is expected to gain more than 3% for the week.
The region has been an investor favourite over the past week since state utility Dubai Electricity and Water Authority (DEWA) opened for subscription.
Shares of Dubai Financial Market fell 0.4% after the company began trading ex-dividend.
The Abu Dhabi index was trading flat.
The Qatari index dropped 0.3%, dragged lower by Qatar Islamic Bank and Industries Qatar.
Major Gulf stock markets fell on Thursday, dragged down by a drop in crude prices as the United States weighs its largest-ever drawdown from its oil reserves to control rising prices.
The United States is considering releasing up to 180 million barrels of oil over several months from strategic reserves, four U.S. sources said, as the White House tries to lower fuel prices that have surged since Russia invaded Ukraine late last month.
Meanwhile, OPEC+ sources said on Wednesday the producer alliance which includes Russia was likely to stick to its existing deal to gradually increase oil production, a view echoed by OPEC Secretary General Mohammad Barkindo.
The full ministerial meeting of a joint technical committee that advises OPEC+ on market fundamentals will take place later in the day.
Asian stocks declined as China reported weak manufacturing data and uncertainty over the war in Ukraine dragged on.
Saudi Arabia's benchmark index shed 0.2%, with oil giant Saudi Aramco down 0.4%.
Dubai's main share index edged lower, weighed down by real estate and financial stocks. The index is expected to gain more than 3% for the week.
The region has been an investor favourite over the past week since state utility Dubai Electricity and Water Authority (DEWA) opened for subscription.
Shares of Dubai Financial Market fell 0.4% after the company began trading ex-dividend.
The Abu Dhabi index was trading flat.
The Qatari index dropped 0.3%, dragged lower by Qatar Islamic Bank and Industries Qatar.
Oil prices dive as U.S. considers record reserves release | Reuters
Oil prices dive as U.S. considers record reserves release | Reuters
Oil prices plunged on Thursday on news that the United States was considering the release of up to 180 million barrels from its Strategic Petroleum Reserve, the largest in the near 50-year history of the SPR.
Brent crude futures for May fell $4.87, or 4.3%, to $108.58 a barrel by 0855 GMT. The May contract expires on Thursday and the most actively traded June futures were down $5.08 at $106.36, having earlier slid by more than $6.
U.S. West Texas Intermediate futures for May delivery fell $5.90, or 5.5%, to $101.92 a barrel after touching a low of $100.53.
U.S. President Joe Biden will speak later on Thursday regarding his administration's actions aimed at lowering gasoline prices that have risen to record highs since Russia began its invasion of Ukraine. read more
Oil prices plunged on Thursday on news that the United States was considering the release of up to 180 million barrels from its Strategic Petroleum Reserve, the largest in the near 50-year history of the SPR.
Brent crude futures for May fell $4.87, or 4.3%, to $108.58 a barrel by 0855 GMT. The May contract expires on Thursday and the most actively traded June futures were down $5.08 at $106.36, having earlier slid by more than $6.
U.S. West Texas Intermediate futures for May delivery fell $5.90, or 5.5%, to $101.92 a barrel after touching a low of $100.53.
U.S. President Joe Biden will speak later on Thursday regarding his administration's actions aimed at lowering gasoline prices that have risen to record highs since Russia began its invasion of Ukraine. read more