Oil up more than 5%, as Russia-EU energy quarrel intensifies | Reuters
Oil prices rose more than 5% on Wednesday after flows of Russian gas to Europe fell and Russia sanctioned some European gas companies, adding to uncertainty in world energy markets.
Oil and gas prices have risen since Moscow invaded Ukraine in February and the United States and allies subsequently imposed heavy sanctions on Russia. Crude trade has been curtailed, and Russia has threatened to cut off gas supply to Europe, though it has stopped short of that move.
Russian gas flows to Europe via Ukraine fell by a quarter after Kyiv halted use of a major transit route, blaming interference by occupying Russian forces. It was the first time exports via Ukraine have been disrupted since the invasion. read more
That move raised concerns that similar interruptions could follow even as prices are already soaring. Russia on Wednesday sanctioned 31 companies based in countries that imposed sanctions on Moscow after Russia invaded Ukraine in February. read more
Brent crude settled up $5.05, or 4.9%, to $107.51 a barrel, while U.S. West Texas Intermediate crude climbed $5.95 a barrel to $105.71, a 6% increase.
Wednesday, 11 May 2022
Aramco Topping Apple (AAPL) Shows Oil’s Primacy in Energy-Short 2022 - Bloomberg
Aramco Topping Apple (AAPL) Shows Oil’s Primacy in Energy-Short 2022 - Bloomberg
Saudi Aramco taking the crown of the world’s most valuable company from Apple Inc. underscores investors’ appetite for oil and gas as the countries around the globe battle rampant inflation and fear of energy shortages.
Buying the future through tech stocks is taking a back seat to the concerns of the present, as fossil fuels reassert their critical importance in all aspects of daily life. Elevated inflation is underpinned by rising energy costs that ripple through all aspects of the economy, from food to flying.
For much of the past decade, low oil and gas prices and muffled inflation allowed central banks to reduce rates to spur their economies in the long exit from the financial crisis in 2008. Investors took the opportunity to buy into the new economy built on technology as the consumers transitioned toward a low-carbon future.
But the global economy still runs on oil and gas, and surging demand after the pandemic combined with Russia’s invasion of Ukraine is causing a shortfall in supplies that plays right into the hands of traditional energy producers. Aramco now trades near the highest on record and nine of the top ten stocks in the S&P 500 Index this year are oil and gas companies. Energy has nearly doubled its share of the index this year, with domestic shale producers and refiners leading the charge.
Even so, the reversal from tech to oil and gas still has some way to go. Despite losing a third of its value this year, Tesla Inc.’s market capitalization is more than double that of Exxon Mobil Corp.
Saudi Aramco taking the crown of the world’s most valuable company from Apple Inc. underscores investors’ appetite for oil and gas as the countries around the globe battle rampant inflation and fear of energy shortages.
Buying the future through tech stocks is taking a back seat to the concerns of the present, as fossil fuels reassert their critical importance in all aspects of daily life. Elevated inflation is underpinned by rising energy costs that ripple through all aspects of the economy, from food to flying.
For much of the past decade, low oil and gas prices and muffled inflation allowed central banks to reduce rates to spur their economies in the long exit from the financial crisis in 2008. Investors took the opportunity to buy into the new economy built on technology as the consumers transitioned toward a low-carbon future.
But the global economy still runs on oil and gas, and surging demand after the pandemic combined with Russia’s invasion of Ukraine is causing a shortfall in supplies that plays right into the hands of traditional energy producers. Aramco now trades near the highest on record and nine of the top ten stocks in the S&P 500 Index this year are oil and gas companies. Energy has nearly doubled its share of the index this year, with domestic shale producers and refiners leading the charge.
Even so, the reversal from tech to oil and gas still has some way to go. Despite losing a third of its value this year, Tesla Inc.’s market capitalization is more than double that of Exxon Mobil Corp.
#Dubai has no current plans to allow 'gaming', official says | Reuters
Dubai has no current plans to allow 'gaming', official says | Reuters
Dubai has no current plans to allow gaming, an official said on Wednesday, as a neighbouring emirate gears up to welcome a resort to be built by a U.S. casino operator and plans to license the activity - a first for the region.
An announcement in January by Ras Al Khaimah, one of the United Arab Emirates' seven emirates, that it would regulate gaming ahead of the arrival of Las Vegas casino giant Wynn Resorts (WYNN.O) in 2026, has revived speculation that gambling could be allowed in Dubai, where a Caesars Palace opened in 2018.
"As far as I'm concerned, there is no gaming that's coming around the corner for us," said Dubai senior tourism official Issam Kazim.
Dubai is the only one of U.S. giant Caesars Entertainment' resorts globally without a casino and a luxury resort by Las Vegas gambling stalwart MGM Resorts International is being built on an artificial island about 10 km away.
Dubai has no current plans to allow gaming, an official said on Wednesday, as a neighbouring emirate gears up to welcome a resort to be built by a U.S. casino operator and plans to license the activity - a first for the region.
An announcement in January by Ras Al Khaimah, one of the United Arab Emirates' seven emirates, that it would regulate gaming ahead of the arrival of Las Vegas casino giant Wynn Resorts (WYNN.O) in 2026, has revived speculation that gambling could be allowed in Dubai, where a Caesars Palace opened in 2018.
"As far as I'm concerned, there is no gaming that's coming around the corner for us," said Dubai senior tourism official Issam Kazim.
Dubai is the only one of U.S. giant Caesars Entertainment' resorts globally without a casino and a luxury resort by Las Vegas gambling stalwart MGM Resorts International is being built on an artificial island about 10 km away.
#UAE raises 1.5 bln dirhams in first local currency-denominated bond sale | Reuters
UAE raises 1.5 bln dirhams in first local currency-denominated bond sale | Reuters
The United Arab Emirates has raised 1.5 billion dirhams ($408.43 million) in its first local currency-denominated bond auction, the state news agency WAM reported on Wednesday.
The sale of the two- and three-year tranches, each at 750 million dirhams, attracted 9.4 billion dirhams in offers combined, it added. The auction was the first of several planned for this year.
The United Arab Emirates has raised 1.5 billion dirhams ($408.43 million) in its first local currency-denominated bond auction, the state news agency WAM reported on Wednesday.
The sale of the two- and three-year tranches, each at 750 million dirhams, attracted 9.4 billion dirhams in offers combined, it added. The auction was the first of several planned for this year.
Oil jumps as Russia gas flow to Europe falls, EU Russian oil ban looms | Reuters
Oil jumps as Russia gas flow to Europe falls, EU Russian oil ban looms | Reuters
Oil prices jumped almost 5% on Wednesday after plunging nearly 10% in the last two sessions, buoyed by supply concerns as flows of Russian gas to Europe fell and the European Union worked on gaining support for a Russian oil embargo.
Russian gas flows to Europe via Ukraine fell by a quarter on Wednesday after Kyiv halted use of a major transit route blaming interference by occupying Russian forces. It was the first time exports via Ukraine have been disrupted since the invasion. read more
Brent crude rose $4.59 to $107.05 a barrel by 11:13 a.m. EDT (1543 GMT). U.S. West Texas Intermediate crude climbed $5.02 to $104.78.
"I suspect the gas disruptions in Ukraine are having a steadily increasing impact," said Jeffrey Halley, analyst at brokerage OANDA.
Oil prices jumped almost 5% on Wednesday after plunging nearly 10% in the last two sessions, buoyed by supply concerns as flows of Russian gas to Europe fell and the European Union worked on gaining support for a Russian oil embargo.
Russian gas flows to Europe via Ukraine fell by a quarter on Wednesday after Kyiv halted use of a major transit route blaming interference by occupying Russian forces. It was the first time exports via Ukraine have been disrupted since the invasion. read more
Brent crude rose $4.59 to $107.05 a barrel by 11:13 a.m. EDT (1543 GMT). U.S. West Texas Intermediate crude climbed $5.02 to $104.78.
"I suspect the gas disruptions in Ukraine are having a steadily increasing impact," said Jeffrey Halley, analyst at brokerage OANDA.
Oil rises as Russia gas flow to Europe falls, EU Russian oil ban looms | Reuters
Oil rises as Russia gas flow to Europe falls, EU Russian oil ban looms | Reuters
Oil rose on Wednesday after plunging nearly 10% in the last two sessions, buoyed by supply concerns as flows of Russian gas to Europe fell and the European Union worked on gaining support for a Russian oil embargo.
Russian gas flows to Europe via Ukraine fell by a quarter on Wednesday after Kyiv halted use of a major transit route blaming interference by occupying Russian forces, the first time exports via Ukraine have been disrupted since the invasion. read more
Brent crude was up $3.87, or 3.8%, to $106.33 a barrel at 1140 GMT, while U.S. West Texas Intermediate crude climbed $3.97, or 4%, to $103.73.
"I suspect the gas disruptions in Ukraine are having a steadily increasing impact," said Jeffrey Halley, analyst at brokerage OANDA.
Oil rose on Wednesday after plunging nearly 10% in the last two sessions, buoyed by supply concerns as flows of Russian gas to Europe fell and the European Union worked on gaining support for a Russian oil embargo.
Russian gas flows to Europe via Ukraine fell by a quarter on Wednesday after Kyiv halted use of a major transit route blaming interference by occupying Russian forces, the first time exports via Ukraine have been disrupted since the invasion. read more
Brent crude was up $3.87, or 3.8%, to $106.33 a barrel at 1140 GMT, while U.S. West Texas Intermediate crude climbed $3.97, or 4%, to $103.73.
"I suspect the gas disruptions in Ukraine are having a steadily increasing impact," said Jeffrey Halley, analyst at brokerage OANDA.
Emirates says its Boeing 787 deliveries delayed by at least a year | Reuters
Emirates says its Boeing 787 deliveries delayed by at least a year | Reuters
Emirates Chief Operating Officer Adel Al Redha said on Wednesday the airline would not receive its Boeing (BA.N) 787 Dreamliners in 2023 and may not even receive its first until 2025 due to production issues at the U.S. plane maker.
"The 787 was supposed to be delivered in 2023. Now we know for sure that's not going to happen in 2023. It may not happen even in 2024 because Boeing still haven't recommenced that production," he told reporters at the Arabian Travel Market trade fair in Dubai.
Boeing suspended deliveries nearly a year ago over structural flaws. Sources told Reuters in April that deliveries would resume in the second half of 2022.
Emirates Chief Operating Officer Adel Al Redha said on Wednesday the airline would not receive its Boeing (BA.N) 787 Dreamliners in 2023 and may not even receive its first until 2025 due to production issues at the U.S. plane maker.
"The 787 was supposed to be delivered in 2023. Now we know for sure that's not going to happen in 2023. It may not happen even in 2024 because Boeing still haven't recommenced that production," he told reporters at the Arabian Travel Market trade fair in Dubai.
Boeing suspended deliveries nearly a year ago over structural flaws. Sources told Reuters in April that deliveries would resume in the second half of 2022.
#AbuDhabi state fund Mubadala posts record income in 2021 | Reuters
Abu Dhabi state fund Mubadala posts record income in 2021 | Reuters
Abu Dhabi state investor Mubadala posted a record income of 122 billion dirhams ($33 billion) in 2021, citing strong investment returns, the monetisation of some assets and new partnerships.
"2021 was Mubadala's strongest financial year in its 20-year history," Group CEO Khaldoon Khalifa al-Mubarak said in a statement.
The 2021 result for so-called total comprehensive income was up 69.4% on the 72 billion dirhams achieved in 2020.
Mubadala's assets under management rose to 1,045 billion dirhams, from 894 billion in 2020, it said.
It invested 125 billion dirhams during 2021 in key sectors in the United Arab Emirates and internationally, including 2.5 billion dirhams in CityFibre, Britain's largest independent fibre infrastructure platform.
It also expanded an existing partnership with Bpifrance with 4 billion euros to invest in developing French enterprises.
Abu Dhabi state investor Mubadala posted a record income of 122 billion dirhams ($33 billion) in 2021, citing strong investment returns, the monetisation of some assets and new partnerships.
"2021 was Mubadala's strongest financial year in its 20-year history," Group CEO Khaldoon Khalifa al-Mubarak said in a statement.
The 2021 result for so-called total comprehensive income was up 69.4% on the 72 billion dirhams achieved in 2020.
Mubadala's assets under management rose to 1,045 billion dirhams, from 894 billion in 2020, it said.
It invested 125 billion dirhams during 2021 in key sectors in the United Arab Emirates and internationally, including 2.5 billion dirhams in CityFibre, Britain's largest independent fibre infrastructure platform.
It also expanded an existing partnership with Bpifrance with 4 billion euros to invest in developing French enterprises.
Major Gulf bourses turn higher in early trade | Reuters
Major Gulf bourses turn higher in early trade | Reuters
Major Gulf bourses rebounded in early trade on Wednesday, amid rising oil prices and ahead of keenly awaited U.S. inflation data that will offer a guide to how aggressively the Federal Reserve will raise rates.
Saudi Arabia's benchmark index (.TASI), which saw its biggest intraday fall in over five months in the previous session, gained 0.4%, with petrochemical maker Saudi Basic Industries Corp (2010.SE) advancing 2.5%.
Saudi banks' standalone credit profiles will be supported by high oil prices, rising interest rates and strong credit growth in 2022-2023, Fitch Ratings said on Tuesday.
The ratings agency expects higher interest rates to underpin profitability and capital generation, and banks to maintain strong capital ratios.
Among other gainers, the kingdom's largest lender Saudi National Bank (1180.SE) climbed 1.4%.
Crude prices, a key catalyst for the Gulf's financial markets, rebounded after plunging nearly 10% over the previous two sessions, buoyed by supply concerns as the European Union works on gaining support for a ban on Russian oil and as major producers warned they may struggle to fill the gap when demand improves.
Dubai's main share index (.DFMGI) edged 0.2% higher, helped by a 1.1% rise in top lender Emirates NBD (ENBD.DU) and a 1.2% gain in Dubai Investments (DINV.DU).
In Abu Dhabi, the index (.FTFADGI) added 0.4%, led by a 1.3% increase in telecoms firm Etisalat (ETISALAT.AD).
The United Arab Emirates will introduce a form of unemployment insurance, the cabinet said on Monday, the latest reform by the Gulf country as it strives to attract talent and investment amid increasing regional economic competition. read more
Insured workers would receive some money for a limited time period if made unemployed, UAE Prime Minister and Vice-President Sheikh Mohammed bin Rashid al-Maktoum, who is also the ruler of trade hub Dubai, said on Twitter, citing a cabinet decision.
The Qatari benchmark (.QSI) rose 0.5%, on course to end five sessions of lossess, with Qatar Aluminium (QAMC.QA) putting on 2.1%.
Major Gulf bourses rebounded in early trade on Wednesday, amid rising oil prices and ahead of keenly awaited U.S. inflation data that will offer a guide to how aggressively the Federal Reserve will raise rates.
Saudi Arabia's benchmark index (.TASI), which saw its biggest intraday fall in over five months in the previous session, gained 0.4%, with petrochemical maker Saudi Basic Industries Corp (2010.SE) advancing 2.5%.
Saudi banks' standalone credit profiles will be supported by high oil prices, rising interest rates and strong credit growth in 2022-2023, Fitch Ratings said on Tuesday.
The ratings agency expects higher interest rates to underpin profitability and capital generation, and banks to maintain strong capital ratios.
Among other gainers, the kingdom's largest lender Saudi National Bank (1180.SE) climbed 1.4%.
Crude prices, a key catalyst for the Gulf's financial markets, rebounded after plunging nearly 10% over the previous two sessions, buoyed by supply concerns as the European Union works on gaining support for a ban on Russian oil and as major producers warned they may struggle to fill the gap when demand improves.
Dubai's main share index (.DFMGI) edged 0.2% higher, helped by a 1.1% rise in top lender Emirates NBD (ENBD.DU) and a 1.2% gain in Dubai Investments (DINV.DU).
In Abu Dhabi, the index (.FTFADGI) added 0.4%, led by a 1.3% increase in telecoms firm Etisalat (ETISALAT.AD).
The United Arab Emirates will introduce a form of unemployment insurance, the cabinet said on Monday, the latest reform by the Gulf country as it strives to attract talent and investment amid increasing regional economic competition. read more
Insured workers would receive some money for a limited time period if made unemployed, UAE Prime Minister and Vice-President Sheikh Mohammed bin Rashid al-Maktoum, who is also the ruler of trade hub Dubai, said on Twitter, citing a cabinet decision.
The Qatari benchmark (.QSI) rose 0.5%, on course to end five sessions of lossess, with Qatar Aluminium (QAMC.QA) putting on 2.1%.
Oil rises on looming EU Russian oil ban, gas disruption | Reuters
Oil rises on looming EU Russian oil ban, gas disruption | Reuters
Oil rose on Wednesday after plunging nearly 10% in the last two sessions, buoyed by supply concerns as the European Union works on gaining support for a Russian oil and flows of Russian gas to Europe through a key transit point in Ukraine dried up.
The EU has proposed an embargo on Russian oil, which analysts say would further tighten the market and shift trade flows. A vote, which needs unanimous support, has been delayed as Hungary has dug in its heels in opposition. read more
Brent crude was up $2.86, or 2.8%, to $105.32 a barrel at 0815 GMT, while U.S. West Texas Intermediate crude climbed $2.53, or 2.5%, to $102.29.
"The oil market is regaining ground this morning as bottom pickers enter the fray," said Stephen Brennock of oil broker PVM.
Oil rose on Wednesday after plunging nearly 10% in the last two sessions, buoyed by supply concerns as the European Union works on gaining support for a Russian oil and flows of Russian gas to Europe through a key transit point in Ukraine dried up.
The EU has proposed an embargo on Russian oil, which analysts say would further tighten the market and shift trade flows. A vote, which needs unanimous support, has been delayed as Hungary has dug in its heels in opposition. read more
Brent crude was up $2.86, or 2.8%, to $105.32 a barrel at 0815 GMT, while U.S. West Texas Intermediate crude climbed $2.53, or 2.5%, to $102.29.
"The oil market is regaining ground this morning as bottom pickers enter the fray," said Stephen Brennock of oil broker PVM.