Oil eases on pandemic worries, strong U.S. dollar | Reuters
Oil prices eased in volatile trade on Tuesday, pressured by a rising U.S. dollar and growing worries that new coronavirus cases could slow demand but losses were limited by supply concerns due to sanctions on Russia for alleged war crimes.
Early in the session, prices rose over $2 a barrel after Japan's Industry Minister said the International Energy Agency (IEA) was still discussing a coordinated release of oil reserves that many traders thought was a done deal. After that, prices traded either side of unchanged for most of the day. read more
Demand worries mounted after authorities in top oil importer China extended a lockdown in Shanghai to cover all of the financial center's 26 million people. read more
"Early dollar weakness today gradually gave way to strength in providing additional impetus behind today’s oil price swing back to the downside," Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Brent futures fell 89 cents, or 0.8%, to settle at $106.64 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.32, or 1.3% to settle at $101.96.
Tuesday, 5 April 2022
Gulf States Eye Egypt Power Plant, Fuel Company in Investment Surge - Bloomberg
Gulf States Eye Egypt Power Plant, Fuel Company in Investment Surge - Bloomberg
Gulf Arab nations are interested in buying stakes in a fuel-distribution company owned by Egypt’s army and a power plant co-built by Siemens AG among their multi-billion-dollar investment pledges, according to the CEO of the North African country’s sovereign wealth fund.
“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Chief Executive Officer Ayman Soliman said in an interview Tuesday. The sales are planned for this year through either an initial public offering, a partnership with a strategic investor or a combination of the two, he said.
“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”
Oil-rich Gulf countries are looking to bolster Egypt’s economy as it comes under increasing strain from soaring commodity prices due to the war in Ukraine and seeks International Monetary Fund assistance. Some of the help also reflects a political focus. Saudi Arabia and the United Arab Emirates pumped billions of dollars into Egypt after the 2013 ouster of a president who hailed from an Islamist political organization many Gulf states see as a threat.
Gulf Arab nations are interested in buying stakes in a fuel-distribution company owned by Egypt’s army and a power plant co-built by Siemens AG among their multi-billion-dollar investment pledges, according to the CEO of the North African country’s sovereign wealth fund.
“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Chief Executive Officer Ayman Soliman said in an interview Tuesday. The sales are planned for this year through either an initial public offering, a partnership with a strategic investor or a combination of the two, he said.
“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”
Oil-rich Gulf countries are looking to bolster Egypt’s economy as it comes under increasing strain from soaring commodity prices due to the war in Ukraine and seeks International Monetary Fund assistance. Some of the help also reflects a political focus. Saudi Arabia and the United Arab Emirates pumped billions of dollars into Egypt after the 2013 ouster of a president who hailed from an Islamist political organization many Gulf states see as a threat.
Oil dips as coronavirus worries offset more Russia sanctions | Reuters
Oil dips as coronavirus worries offset more Russia sanctions | Reuters
Oil prices steadied in volatile trade on Tuesday as growing worries about coronavirus demand destruction offset supply concerns after the United States and Europe planned to impose new sanction on Russia for alleged war crimes in Ukraine.
Brent futures fell 47 cents, or 0.4%, to $107.06 a barrel by 11:31 a.m. EDT (1531 GMT). U.S. West Texas Intermediate (WTI) crude fell 31 cents, or 0.3%, to $102.97.
Chinese authorities extended a lockdown in Shanghai to cover all of the financial center's 26 million people, despite growing anger over quarantine rules in the city. read more
Mizuho executive director of energy futures Robert Yawger said oil traders were also worried about a report from the Johns Hopkins Coronavirus Resource Center that new U.S. deaths from COVID-19 rose on Monday to what he said was an all-time high of 14,562, which would push total U.S. deaths over 1 million since the start of the pandemic.
Oil prices steadied in volatile trade on Tuesday as growing worries about coronavirus demand destruction offset supply concerns after the United States and Europe planned to impose new sanction on Russia for alleged war crimes in Ukraine.
Brent futures fell 47 cents, or 0.4%, to $107.06 a barrel by 11:31 a.m. EDT (1531 GMT). U.S. West Texas Intermediate (WTI) crude fell 31 cents, or 0.3%, to $102.97.
Chinese authorities extended a lockdown in Shanghai to cover all of the financial center's 26 million people, despite growing anger over quarantine rules in the city. read more
Mizuho executive director of energy futures Robert Yawger said oil traders were also worried about a report from the Johns Hopkins Coronavirus Resource Center that new U.S. deaths from COVID-19 rose on Monday to what he said was an all-time high of 14,562, which would push total U.S. deaths over 1 million since the start of the pandemic.
#Russia-Ukraine conflict: How have #UAE and #Saudi banks been affected?
Russia-Ukraine conflict: How have UAE and Saudi banks been affected?
Banks in the UAE and Saudi Arabia remain relatively insulated from the fallout of the Russia-Ukraine conflict due to their limited dealings with the region, according to S&P Global Ratings.
“The conflict will have a limited effect on the UAE’s banking sector, for now. Rated UAE banks have minimal direct exposure to Russian or Ukrainian counterparties. We do not expect to see any significant direct effects of the conflict on their asset quality indicators,” the rating agency said in a report this week.
“The government has significant capacity and willingness to provide support if needed,” it said.
Lenders in Saudi Arabia, the Arab world's largest economy, share a similar outlook.
Banks in the UAE and Saudi Arabia remain relatively insulated from the fallout of the Russia-Ukraine conflict due to their limited dealings with the region, according to S&P Global Ratings.
“The conflict will have a limited effect on the UAE’s banking sector, for now. Rated UAE banks have minimal direct exposure to Russian or Ukrainian counterparties. We do not expect to see any significant direct effects of the conflict on their asset quality indicators,” the rating agency said in a report this week.
“The government has significant capacity and willingness to provide support if needed,” it said.
Lenders in Saudi Arabia, the Arab world's largest economy, share a similar outlook.
London Stock Exchange to help #Qatar bourse launch new trading platform
London Stock Exchange to help Qatar bourse launch new trading platform
The London Stock Exchange Group plc (LSEG) has entered into an agreement to provide its trading and market surveillance technology to Qatar Stock Exchange (QSE).
The new platform will replace QSE's existing trading and market surveillance systems and will enable QSE to expand into derivatives trading in the future, a statement said.
LSEG's financial markets technology products are used by over 25 financial markets infrastructure operators across the globe, including Johannesburg Stock Exchange, Singapore Exchange and LSEG.
The London Stock Exchange Group plc (LSEG) has entered into an agreement to provide its trading and market surveillance technology to Qatar Stock Exchange (QSE).
The new platform will replace QSE's existing trading and market surveillance systems and will enable QSE to expand into derivatives trading in the future, a statement said.
LSEG's financial markets technology products are used by over 25 financial markets infrastructure operators across the globe, including Johannesburg Stock Exchange, Singapore Exchange and LSEG.
Markets gain ahead of expected Russia sanctions, Egypt falls over 1% | Reuters
Markets gain ahead of expected Russia sanctions, Egypt falls over 1% | Reuters
Most Gulf markets closed up on Tuesday as traders across the globe tracked fresh sanctions on Russia, while sentiment in Egypt remained muted on fear of higher commodity prices.
The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders. read more
With investors waiting on the new batch of sanctions - most likely on Wednesday according to France's European Affairs Minister - oil was up 1%, lifting benchmark German Bund and U.S. Treasury bond yields due to the prospect of higher global inflation.
Egypt's main share index (.EGX30) ended lower for the second day, closing 1.3% down, as financials and material stocks weighed.
"The Egyptian stock market remains exposed to the effects of the conflict in Ukraine as commodities prices put pressure on non-oil sectors," said Farah Mourad, senior market analyst at XTB MENA.
Saudi Arabia's benchmark index (.TASI) gained 0.3%.
The world's top oil exporter raised crude prices for all regions, with those to Asia hitting all-time highs, as disruption in Russian supplies supported prices, according to a pricing document seen by Reuters on Monday. read more
In Dubai, the main share index (.DFMGI) reversed early gains to end 0.5% lower.
Investors are looking to book their profits in the region after state utility DEWA's IPO subscription brought cheer last week.
Shares of Gulf Navigation (GNAV.DU) gained 5%, a day after the company signed deals for a gas project in Sharjah.
Abu Dhabi's benchmark index (.FTFADGI) gained 0.3%, while Qatar's main index (.QSI) inched up 0.8%.
The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders. read more
With investors waiting on the new batch of sanctions - most likely on Wednesday according to France's European Affairs Minister - oil was up 1%, lifting benchmark German Bund and U.S. Treasury bond yields due to the prospect of higher global inflation.
Egypt's main share index (.EGX30) ended lower for the second day, closing 1.3% down, as financials and material stocks weighed.
"The Egyptian stock market remains exposed to the effects of the conflict in Ukraine as commodities prices put pressure on non-oil sectors," said Farah Mourad, senior market analyst at XTB MENA.
Saudi Arabia's benchmark index (.TASI) gained 0.3%.
The world's top oil exporter raised crude prices for all regions, with those to Asia hitting all-time highs, as disruption in Russian supplies supported prices, according to a pricing document seen by Reuters on Monday. read more
In Dubai, the main share index (.DFMGI) reversed early gains to end 0.5% lower.
Investors are looking to book their profits in the region after state utility DEWA's IPO subscription brought cheer last week.
Shares of Gulf Navigation (GNAV.DU) gained 5%, a day after the company signed deals for a gas project in Sharjah.
Abu Dhabi's benchmark index (.FTFADGI) gained 0.3%, while Qatar's main index (.QSI) inched up 0.8%.
#Oman posts budget surplus of $547 mln at end-Feb | Reuters
Oman posts budget surplus of $547 mln at end-Feb | Reuters
Oman has posted a budget surplus of 210 million riyals ($546.88 million) at the end of February, compared with a deficit of 457 million riyals a year earlier, the finance ministry said on Tuesday.
Net oil revenues reached about 1.1 bln riyals for the same period, up 81.4% year-on-year, as the Gulf sultanate sold its crude for $81 per barrel on average, versus $42 a year earlier.
Average oil production rose to 1.02 million barrels per day (bpd) by the end of February, compared to 953,000 bpd in the same period of the previous year.
Oman has posted a budget surplus of 210 million riyals ($546.88 million) at the end of February, compared with a deficit of 457 million riyals a year earlier, the finance ministry said on Tuesday.
Net oil revenues reached about 1.1 bln riyals for the same period, up 81.4% year-on-year, as the Gulf sultanate sold its crude for $81 per barrel on average, versus $42 a year earlier.
Average oil production rose to 1.02 million barrels per day (bpd) by the end of February, compared to 953,000 bpd in the same period of the previous year.
Column: #Saudi's record crude oil price for Asia shows Russia war impact | Reuters
Column: Saudi's record crude oil price for Asia shows Russia war impact | Reuters
The jump in Saudi Arabia's crude oil prices for its Asian customers is a real world example of how the Russian invasion of Ukraine is starting to force a realignment of global oil markets.
Saudi Aramco (2222.SE), the state-controlled producer, raised its official selling price (OSP) for its flagship Arab Light crude for Asian refiners to a record premium of $9.35 a barrel above the Oman/Dubai regional benchmark. read more
An increase in the OSP had been anticipated, with a Reuters survey of seven refiners estimating the price would rise to a premium of between $10.70 and $11.90. read more
This means the actual increase from April's premium of $5.90 to May's $9.35 was somewhat below market expectations, but still highlights that refiners in Asia are going to be paying considerably more for Middle East crudes.
The jump in Saudi Arabia's crude oil prices for its Asian customers is a real world example of how the Russian invasion of Ukraine is starting to force a realignment of global oil markets.
Saudi Aramco (2222.SE), the state-controlled producer, raised its official selling price (OSP) for its flagship Arab Light crude for Asian refiners to a record premium of $9.35 a barrel above the Oman/Dubai regional benchmark. read more
An increase in the OSP had been anticipated, with a Reuters survey of seven refiners estimating the price would rise to a premium of between $10.70 and $11.90. read more
This means the actual increase from April's premium of $5.90 to May's $9.35 was somewhat below market expectations, but still highlights that refiners in Asia are going to be paying considerably more for Middle East crudes.
European Gas Swings as Traders Weigh Russian Sanctions Outlook - Bloomberg
European Gas Swings as Traders Weigh Russian Sanctions Outlook - Bloomberg
European natural gas fluctuated as traders weighed the prospect of tougher sanctions on Russia against currently stable flows from the country.
Benchmark prices swung between gains and losses with Russian exports again in focus after the European Union said it’s working on additional sanctions to penalize Moscow for what appear to be war crimes in Ukraine. Diplomats are due to discuss new measures this week and the market will closely watch for restrictions on energy. The U.S. also said it may impose further penalties.
Sanctions on oil and coal are among options for the European Commission, said Valdis Dombrovskis, vice president for economy and trade. Penalties on Russian gas are not off the table in the future, Commissioner for Economy Paolo Gentiloni said Monday.
The continent “can’t easily replace supplies from Russia,” James Waddell, head of European gas at consultant Energy Aspects, said in a Bloomberg TV interview. “That means it is very difficult to target gas, in contrast to maybe crude and diesel.”
European natural gas fluctuated as traders weighed the prospect of tougher sanctions on Russia against currently stable flows from the country.
Benchmark prices swung between gains and losses with Russian exports again in focus after the European Union said it’s working on additional sanctions to penalize Moscow for what appear to be war crimes in Ukraine. Diplomats are due to discuss new measures this week and the market will closely watch for restrictions on energy. The U.S. also said it may impose further penalties.
Sanctions on oil and coal are among options for the European Commission, said Valdis Dombrovskis, vice president for economy and trade. Penalties on Russian gas are not off the table in the future, Commissioner for Economy Paolo Gentiloni said Monday.
The continent “can’t easily replace supplies from Russia,” James Waddell, head of European gas at consultant Energy Aspects, said in a Bloomberg TV interview. “That means it is very difficult to target gas, in contrast to maybe crude and diesel.”
#Saudi Oil Buyers in Asia May Seek Alternatives After Price Hike - Bloomberg
Saudi Oil Buyers in Asia May Seek Alternatives After Price Hike - Bloomberg
Asian oil buyers will likely purchase more U.S. and Middle Eastern crude on the spot market and may take less contracted supplies from Saudi Arabia after the kingdom hiked its prices to a record.
Omani crude was selling for $4 to $4.50 a barrel above its benchmark price on the Dubai Mercantile Exchange this week. That compares with the official selling price for Arab Light, which is now at a $9.35 premium to an average of Oman and Dubai prices. Long-haul flows from the U.S. have also become more viable following the announcement of the strategic reserves release.
The cost advantages mean many Saudi Aramco customers are unlikely to seek extra term supplies and may even opt to reduce volumes, while buying more from the spot market, according to traders. At least three Asian refiners said they were nominating regular volumes from Aramco this month, a change from a few weeks ago when some were requesting additional crude.
Crude has become cheaper on the spot market after the U.S. said it would drip-feed 1 million barrels a day of oil into the market for around six months. A cloudier demand outlook due to China’s worsening Covid-19 outbreaks, as well as continued flows of Russian crude to Asia, have also pushed down premiums for Middle Eastern oil, making it more attractive than Saudi term supplies.
Aramco customers had urged the oil giant to try and keep a lid on price rises given the reserves release and the weaker Chinese demand, and were disappointed at the magnitude of the increase announced on Monday, the traders said. The buyers have to submit monthly nominations, requests for how much crude they want, to the Saudis by the end of Tuesday.
Asian oil buyers will likely purchase more U.S. and Middle Eastern crude on the spot market and may take less contracted supplies from Saudi Arabia after the kingdom hiked its prices to a record.
Omani crude was selling for $4 to $4.50 a barrel above its benchmark price on the Dubai Mercantile Exchange this week. That compares with the official selling price for Arab Light, which is now at a $9.35 premium to an average of Oman and Dubai prices. Long-haul flows from the U.S. have also become more viable following the announcement of the strategic reserves release.
The cost advantages mean many Saudi Aramco customers are unlikely to seek extra term supplies and may even opt to reduce volumes, while buying more from the spot market, according to traders. At least three Asian refiners said they were nominating regular volumes from Aramco this month, a change from a few weeks ago when some were requesting additional crude.
Crude has become cheaper on the spot market after the U.S. said it would drip-feed 1 million barrels a day of oil into the market for around six months. A cloudier demand outlook due to China’s worsening Covid-19 outbreaks, as well as continued flows of Russian crude to Asia, have also pushed down premiums for Middle Eastern oil, making it more attractive than Saudi term supplies.
Aramco customers had urged the oil giant to try and keep a lid on price rises given the reserves release and the weaker Chinese demand, and were disappointed at the magnitude of the increase announced on Monday, the traders said. The buyers have to submit monthly nominations, requests for how much crude they want, to the Saudis by the end of Tuesday.
Biggest Arab Economies #SaudiArabia, #UAE Escape Stagflation Despite Price Shocks - Bloomberg
Biggest Arab Economies Saudi Arabia, UAE Escape Stagflation Despite Price Shocks - Bloomberg
The two largest Arab economies are powering ahead as new business and demand helped insulate them from a sharp acceleration in global energy and commodity prices after Russia’s invasion of Ukraine.
Concern is building worldwide that the crisis in eastern Europe will result in stagflation, or rapidly rising prices and weak economic growth. But for now, non-oil output gains were intact in Saudi Arabia and the United Arab Emirates, according to March surveys of purchasing managers by S&P Global that offered a first glimpse at the conflict’s spillover effects in the region.
A Purchasing Managers’ Index compiled for Saudi Arabia rose to 56.8 from 56.2 in February, with output growing at the fastest in over four years. A similar gauge for the neighboring UAE remained at 54.8, well above the 50 mark that separates expansion from contraction, even as input cost inflation reached a 40-month record.
In the UAE, “a strong rise in demand across the non-oil economy in March masked the concerning threat posed by global commodity prices,” said David Owen, economist at S&P Global.
The two largest Arab economies are powering ahead as new business and demand helped insulate them from a sharp acceleration in global energy and commodity prices after Russia’s invasion of Ukraine.
Concern is building worldwide that the crisis in eastern Europe will result in stagflation, or rapidly rising prices and weak economic growth. But for now, non-oil output gains were intact in Saudi Arabia and the United Arab Emirates, according to March surveys of purchasing managers by S&P Global that offered a first glimpse at the conflict’s spillover effects in the region.
A Purchasing Managers’ Index compiled for Saudi Arabia rose to 56.8 from 56.2 in February, with output growing at the fastest in over four years. A similar gauge for the neighboring UAE remained at 54.8, well above the 50 mark that separates expansion from contraction, even as input cost inflation reached a 40-month record.
In the UAE, “a strong rise in demand across the non-oil economy in March masked the concerning threat posed by global commodity prices,” said David Owen, economist at S&P Global.
Stocks gain as global sentiment recovers | Reuters
Stocks gain as global sentiment recovers | Reuters
Gulf bourses rose on Tuesday, in tandem with global stocks, while oil prices edged higher amid prospects of United States and Europe imposing fresh sanctions on Russia.
Asian stocks rose to their highest in more than a month, underpinned by a broad recovery on Wall Street, while the euro was stuck near a one-week low against the dollar.
The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders. read more
Meanwhile, fears over tighter global oil supply lingered as Iran nuclear talks stalled.
Saudi Arabia's benchmark index (.TASI) rose 0.4%, with the energy index (.TENI) up 0.3%. State-run Saudi Aramco (2222.SE) was up 0.2%.
The world's top oil exporter raised crude prices for all regions, with those to Asia hitting all-time highs, as disruption in Russian supplies supported prices, according to a pricing document seen by Reuters on Monday. read more
Dubai's main share index (.DFMGI) rose 0.5%, boosted by Dubai Islamic Bank (DISB.DU) and Emirates Integrated Telecommunications Company (DU.DU).
In Abu Dhabi, the index (.FTFADGI) was 0.4% higher, while the Qatari index (.QSI) traded 0.2% up.
Gulf bourses rose on Tuesday, in tandem with global stocks, while oil prices edged higher amid prospects of United States and Europe imposing fresh sanctions on Russia.
Asian stocks rose to their highest in more than a month, underpinned by a broad recovery on Wall Street, while the euro was stuck near a one-week low against the dollar.
The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders. read more
Meanwhile, fears over tighter global oil supply lingered as Iran nuclear talks stalled.
Saudi Arabia's benchmark index (.TASI) rose 0.4%, with the energy index (.TENI) up 0.3%. State-run Saudi Aramco (2222.SE) was up 0.2%.
The world's top oil exporter raised crude prices for all regions, with those to Asia hitting all-time highs, as disruption in Russian supplies supported prices, according to a pricing document seen by Reuters on Monday. read more
Dubai's main share index (.DFMGI) rose 0.5%, boosted by Dubai Islamic Bank (DISB.DU) and Emirates Integrated Telecommunications Company (DU.DU).
In Abu Dhabi, the index (.FTFADGI) was 0.4% higher, while the Qatari index (.QSI) traded 0.2% up.
Oil extends rally on prospect of fresh Russia sanctions | Reuters
Oil extends rally on prospect of fresh Russia sanctions | Reuters
Oil prices rose on Tuesday as the United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine, raising concerns of tighter global supply, while Iran's nuclear talks with world powers stalled.
Brent crude was up 90 cents, or 0.8%, to $108.43 a barrel at 0801 GMT, and U.S. West Texas Intermediate was up 78 cents, or 0.8%, at $104.06 a barrel.
"With the European Union working on new sanctions that may target Russia’s oil industry, crude prices could edge up in the near term," said Lukman Otunuga, analyst at FXTM.
The West is planning new sanctions to punish Russia over civilian killings in Ukraine. U.S President Joe Biden's national security adviser said new U.S. sanctions against Moscow would be announced this week. read more
Oil prices rose on Tuesday as the United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine, raising concerns of tighter global supply, while Iran's nuclear talks with world powers stalled.
Brent crude was up 90 cents, or 0.8%, to $108.43 a barrel at 0801 GMT, and U.S. West Texas Intermediate was up 78 cents, or 0.8%, at $104.06 a barrel.
"With the European Union working on new sanctions that may target Russia’s oil industry, crude prices could edge up in the near term," said Lukman Otunuga, analyst at FXTM.
The West is planning new sanctions to punish Russia over civilian killings in Ukraine. U.S President Joe Biden's national security adviser said new U.S. sanctions against Moscow would be announced this week. read more