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 Oil rallied above $114 as a global squeeze on refined products prompted concerns about summertime supplies and continued to pull fuel prices higher. West Texas Intermediate rose 3.4% to the settle at highest level since late March. US gasoline futures topped $4 a gallon for the first time ever, while the national average retail price rose to a fresh record. Rising futures tend to trickle through to the pump quickly, signaling more pain for drivers when the summer driving season starts at the end of this month. “The stronger products get, the more optimistic the market gets on crude runs increasing this summer,” said Scott Shelton, an energy specialist at TP ICAP Group Plc. |
Monday 16 May 2022
Oil Rose to Highest Since March as Fuel Markets Heat Up - Bloomberg
Oil Rose to Highest Since March as Fuel Markets Heat Up - Bloomberg
#Dubai’s GII Buys 51% of Saudi Arabia’s Almeswak for $530 Million - Bloomberg
Dubai’s GII Buys 51% of Saudi Arabia’s Almeswak for $530 Million - Bloomberg
Dubai-based Gulf Islamic Investments LLC has closed a $530 million deal to buy a stake in Saudi Arabia’s largest provider of dental and dermatology care and will look to list the healthcare company in the next three years.
GII, as the investment company is known, bought a majority stake from Saudi-based private equity firm Jadwa Investment Co. in Almeswak Dental Clinics, according to a statement. A spokesperson for GII confirmed that it acquired a 51% stake when contacted.
Bloomberg News reported in November that GII was planning to buy a majority stake of the healthcare company for about $600 million.
“This is a landmark transaction that reflects our capability and reach in the healthcare sector and the Saudi market,” GII Co-Founder Mohammed Al Hassan said in the statement, adding that they’re aiming to list Almeswak on the Saudi stock exchange within the next two to three years.
Almeswak operates more than 80 centers across 20 cities in Saudi Arabia, according to the statement. The sale underscores the growing appeal of healthcare assets in the Gulf where the domestic medical sector has been booming in recent years thanks to an improvement in incomes and as governments invest in medical infrastructure for their citizens.
Jadwa acquired the stake in Almeswak in 2017, according to information on its website.
Dubai-based Gulf Islamic Investments LLC has closed a $530 million deal to buy a stake in Saudi Arabia’s largest provider of dental and dermatology care and will look to list the healthcare company in the next three years.
GII, as the investment company is known, bought a majority stake from Saudi-based private equity firm Jadwa Investment Co. in Almeswak Dental Clinics, according to a statement. A spokesperson for GII confirmed that it acquired a 51% stake when contacted.
Bloomberg News reported in November that GII was planning to buy a majority stake of the healthcare company for about $600 million.
“This is a landmark transaction that reflects our capability and reach in the healthcare sector and the Saudi market,” GII Co-Founder Mohammed Al Hassan said in the statement, adding that they’re aiming to list Almeswak on the Saudi stock exchange within the next two to three years.
Almeswak operates more than 80 centers across 20 cities in Saudi Arabia, according to the statement. The sale underscores the growing appeal of healthcare assets in the Gulf where the domestic medical sector has been booming in recent years thanks to an improvement in incomes and as governments invest in medical infrastructure for their citizens.
Jadwa acquired the stake in Almeswak in 2017, according to information on its website.
US Seeks to Improve #UAE Ties as New President Receives World Leaders - Bloomberg
US Seeks to Improve UAE Ties as New President Receives World Leaders - Bloomberg
The US is sending a high-level delegation to the United Arab Emirates to pay respects to the country’s late ruler and hold talks on Monday with his successor, part of efforts to mend ties frayed over security and oil.
World leaders are descending on the OPEC member state after the death of Sheikh Khalifa bin Zayed Al Nahyan. UK Prime Minister Boris Johnson, US Vice President Kamala Harris and French President Emmanuel Macron are among the world leaders offering their condolences and meeting with new ruler Sheikh Mohammed bin Zayed Al Nahyan.
The US delegation includes Secretary of State Antony Blinken, Defense Secretary Lloyd Austin and Central Intelligence Agency Director William Burns. Their visit will aim to build on efforts behind the scenes to strengthen the bilateral relationship, a US official said.
Sheikh Mohammed, who has long controlled the levers of power in the UAE, presides over the world’s fourth-richest wealth fund and about 6% of proven reserves of crude oil. A powerful regional figure, he’s frequently used his clout to intervene in regional conflicts with one of the Middle East’s best-equipped militaries.
The US is sending a high-level delegation to the United Arab Emirates to pay respects to the country’s late ruler and hold talks on Monday with his successor, part of efforts to mend ties frayed over security and oil.
World leaders are descending on the OPEC member state after the death of Sheikh Khalifa bin Zayed Al Nahyan. UK Prime Minister Boris Johnson, US Vice President Kamala Harris and French President Emmanuel Macron are among the world leaders offering their condolences and meeting with new ruler Sheikh Mohammed bin Zayed Al Nahyan.
The US delegation includes Secretary of State Antony Blinken, Defense Secretary Lloyd Austin and Central Intelligence Agency Director William Burns. Their visit will aim to build on efforts behind the scenes to strengthen the bilateral relationship, a US official said.
Sheikh Mohammed, who has long controlled the levers of power in the UAE, presides over the world’s fourth-richest wealth fund and about 6% of proven reserves of crude oil. A powerful regional figure, he’s frequently used his clout to intervene in regional conflicts with one of the Middle East’s best-equipped militaries.
Oil prices rise on China demand optimism, gasoline strength | Reuters
Oil prices rise on China demand optimism, gasoline strength | Reuters
Oil prices rose on Monday on optimism that China would see significant demand recovery after positive signs that coronavirus pandemic was receding in the hardest-hit areas.
Brent crude rose $1.34, or 1.2%, at $112.89 a barrel at 12:10 p.m. EDT (1710 EDT) 1342 GMT, while U.S. West Texas Intermediate (WTI) crude rose $2.22, or less than 0.1%, to $$112.71 a barrel.
Shanghai aims to reopen broadly and allow normal life to resume for the city's 25 million people from June 1, a city official said on Monday, after declaring that 15 of its 16 districts had eliminated cases outside quarantine areas. read more
However, it is estimated that 46 cities in China are under lockdowns, hitting shopping, factory output and energy usage.
Oil prices rose on Monday on optimism that China would see significant demand recovery after positive signs that coronavirus pandemic was receding in the hardest-hit areas.
Brent crude rose $1.34, or 1.2%, at $112.89 a barrel at 12:10 p.m. EDT (1710 EDT) 1342 GMT, while U.S. West Texas Intermediate (WTI) crude rose $2.22, or less than 0.1%, to $$112.71 a barrel.
Shanghai aims to reopen broadly and allow normal life to resume for the city's 25 million people from June 1, a city official said on Monday, after declaring that 15 of its 16 districts had eliminated cases outside quarantine areas. read more
However, it is estimated that 46 cities in China are under lockdowns, hitting shopping, factory output and energy usage.
Mideast Stocks: Most Gulf bourses in red
Mideast Stocks: Most Gulf bourses in red
Saudi Arabia's stock market gave up early gains to end lower on Monday, as investor sentiment struggled to recover from last week's selloff amid fears of a slowdown in economic growth.
Gulf stock markets lost ground last week, reflecting investors' anxiety about fast-rising inflation that will drive a sharp rise in interest rates and put global economy growth at risk.
Saudi Arabia's benchmark index dropped 1.8%, dragged down by a 3.7% slide in Al Rajhi Bank and a 4.5% decline in the country's largest lender Saudi National Bank . However, oil giant Saudi Aramco added 0.4% after it reported an almost 82% rise in first-quarter net profit, broadly in line with analyst forecasts. Aramco, which is at par with Apple Inc as the world's most valuable company, reported a net income of $39.5 billion for the quarter to March 31, from $21.7 billion a year earlier.
Brent crude prices ended the first quarter up almost 70% at $107.91 a barrel from end of March 2021, as the Russian invasion of Ukraine exacerbated concerns over petroleum supplies.
The Qatari index dropped 1.6%, with Commercial Bank declining 6.2% and Masraf Al Rayan down 4.4%. Oil prices, a key catalyst for the Gulf's financial market, fell as widespread lockdowns in China and the country's weak economic data fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Outside the Gulf, Egypt's blue-chip index retreated 0.7%.
Saudi Arabia's stock market gave up early gains to end lower on Monday, as investor sentiment struggled to recover from last week's selloff amid fears of a slowdown in economic growth.
Gulf stock markets lost ground last week, reflecting investors' anxiety about fast-rising inflation that will drive a sharp rise in interest rates and put global economy growth at risk.
Saudi Arabia's benchmark index dropped 1.8%, dragged down by a 3.7% slide in Al Rajhi Bank and a 4.5% decline in the country's largest lender Saudi National Bank . However, oil giant Saudi Aramco added 0.4% after it reported an almost 82% rise in first-quarter net profit, broadly in line with analyst forecasts. Aramco, which is at par with Apple Inc as the world's most valuable company, reported a net income of $39.5 billion for the quarter to March 31, from $21.7 billion a year earlier.
Brent crude prices ended the first quarter up almost 70% at $107.91 a barrel from end of March 2021, as the Russian invasion of Ukraine exacerbated concerns over petroleum supplies.
The Qatari index dropped 1.6%, with Commercial Bank declining 6.2% and Masraf Al Rayan down 4.4%. Oil prices, a key catalyst for the Gulf's financial market, fell as widespread lockdowns in China and the country's weak economic data fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Outside the Gulf, Egypt's blue-chip index retreated 0.7%.
** Dubai and Abu Dhabi bourse were closed for a public holiday.
SAUDI ARABIA fell 1.8% to 12,915QATAR dropped 1.6% to 12,676EGYPT lost 0.7% to 10,462BAHRAIN eased 0.5% to 1,961OMAN rose 0.3% to 4,154KUWAIT declined 2.4% to 8,525
Oil prices fall on China's weak economic data | Reuters
Oil prices fall on China's weak economic data | Reuters
Oil prices fell on Monday as widespread lockdowns in China and weak Chinese economic data fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Brent crude was down 72 cents, or 0.7%, at $110.83 a barrel at 1236 GMT, and U.S. West Texas Intermediate (WTI) crude slipped 58 cents, or 0.5%, to $109.91 a barrel.
The fall in oil prices "is chiefly due to the weak Chinese economic data, as the lockdown measures are having a direct impact on the world’s second-largest market," said Barbara Lambrecht, energy analyst at Commerzbank.
It is estimated that 46 cities in China are under lockdowns, hitting shopping, factory output and energy usage.
Oil prices fell on Monday as widespread lockdowns in China and weak Chinese economic data fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Brent crude was down 72 cents, or 0.7%, at $110.83 a barrel at 1236 GMT, and U.S. West Texas Intermediate (WTI) crude slipped 58 cents, or 0.5%, to $109.91 a barrel.
The fall in oil prices "is chiefly due to the weak Chinese economic data, as the lockdown measures are having a direct impact on the world’s second-largest market," said Barbara Lambrecht, energy analyst at Commerzbank.
It is estimated that 46 cities in China are under lockdowns, hitting shopping, factory output and energy usage.
#Israel Economy in 1Q 2022 Unexpectedly Shrinks 1.6% - Bloomberg
Israel Economy in 1Q 2022 Unexpectedly Shrinks 1.6% - Bloomberg
Israel’s economy unexpectedly shrank an annualized 1.6% in the first quarter, amid worldwide inflationary pressures that are broadly lowering expansion forecasts.
In Israel, exports and spending on private consumption both fell in the first three months of 2022, disappointing economists who had predicted a 2.3% rise in GDP in a Bloomberg survey. Just one of eight analysts forecast a contraction.
2021 was a bumper year for Israel’s economy, which bounced back from the pandemic to grow 8.1%, fueled by a boom in investment in the country’s high-tech industries.
But Russia’s war on Ukraine and the sanctions imposed in response have darkened the outlook for the global economy by sending energy prices surging and straining supply chains that were already reeling from the pandemic.
The tech-heavy Nasdaq index has seen large recent declines, which has had a knock-on effect on Israel, since many of its technology firms are listed in the US.
Bank Hapoalim Ltd. chief economist Victor Bahar said the magnitude of the Israeli contraction had been a surprise but didn’t see it heralding further falls.
“We don’t think we are entering a period of a recession, but it is a sign that the economy is cooling down,” he said, adding the fall in private consumption was due to a combination of inflation and the return of foreign travel.
Israel’s economy unexpectedly shrank an annualized 1.6% in the first quarter, amid worldwide inflationary pressures that are broadly lowering expansion forecasts.
In Israel, exports and spending on private consumption both fell in the first three months of 2022, disappointing economists who had predicted a 2.3% rise in GDP in a Bloomberg survey. Just one of eight analysts forecast a contraction.
2021 was a bumper year for Israel’s economy, which bounced back from the pandemic to grow 8.1%, fueled by a boom in investment in the country’s high-tech industries.
But Russia’s war on Ukraine and the sanctions imposed in response have darkened the outlook for the global economy by sending energy prices surging and straining supply chains that were already reeling from the pandemic.
The tech-heavy Nasdaq index has seen large recent declines, which has had a knock-on effect on Israel, since many of its technology firms are listed in the US.
Bank Hapoalim Ltd. chief economist Victor Bahar said the magnitude of the Israeli contraction had been a surprise but didn’t see it heralding further falls.
“We don’t think we are entering a period of a recession, but it is a sign that the economy is cooling down,” he said, adding the fall in private consumption was due to a combination of inflation and the return of foreign travel.
Oil prices fall on China's weak economic data | Reuters
Oil prices fall on China's weak economic data | Reuters
Oil prices fell on Monday as widespread lockdowns in China and weak economic data in the country fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Brent crude was down 28 cents, or 0.3%, at $111.27 a barrel at 0934 GMT, and U.S. West Texas Intermediate (WTI) crude slipped 9 cents, or 0.1%, to $110.40 a barrel.
The fall of oil prices "is chiefly due to the weak Chinese economic data, as the lockdown measures are having a direct impact on the world’s second-largest market," said Barbara Lambrecht, energy analyst at Commerzbank.
It is estimated that 46 cities in China are under lockdowns, hitting shopping, factory output and energy usage.
Latest Chinese data showed retail sales in April shrank almost 11% from a year earlier, while factory production fell 2.9% year-on-year. read more
Oil prices fell on Monday as widespread lockdowns in China and weak economic data in the country fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Brent crude was down 28 cents, or 0.3%, at $111.27 a barrel at 0934 GMT, and U.S. West Texas Intermediate (WTI) crude slipped 9 cents, or 0.1%, to $110.40 a barrel.
The fall of oil prices "is chiefly due to the weak Chinese economic data, as the lockdown measures are having a direct impact on the world’s second-largest market," said Barbara Lambrecht, energy analyst at Commerzbank.
It is estimated that 46 cities in China are under lockdowns, hitting shopping, factory output and energy usage.
Latest Chinese data showed retail sales in April shrank almost 11% from a year earlier, while factory production fell 2.9% year-on-year. read more
Vodafone CEO Gains Potential Ally With e&’s $4.4 Billion Stake - Bloomberg
Vodafone CEO Gains Potential Ally With e&’s $4.4 Billion Stake - Bloomberg
Vodafone Group Plc shares halted their month-long slide after Emirates state-backed telecom firm e& bought a surprise 9.8% stake on Saturday, becoming the group’s largest shareholder.
The sudden arrival of Emirates Telecommunications Group Company PJSC -- now known as e& -- could tilt the scales in a growing debate about the phone group’s strategy. Vodafone Chief Executive Officer Nick Read is trying to consolidate in key markets while facing pressure from shareholders including Europe’s largest activist fund, Cevian Capital AB.
A wealthy, supportive shareholder could give Read cover to reset expectations around investment and profits by supporting the share price, Jefferies analyst Jerry Dellis said. That could give him greater freedom to spend to upgrade its network -- such as building fiber over and around Vodafone’s cable footprint in Germany.
“We expect e& to counteract activist pressure, not add to it,” said Dellis in a note to clients. He noted e&’s CEO Hatem Dowidar previously worked at Vodafone for 17 years, including with Read.
Vodafone Group Plc shares halted their month-long slide after Emirates state-backed telecom firm e& bought a surprise 9.8% stake on Saturday, becoming the group’s largest shareholder.
The sudden arrival of Emirates Telecommunications Group Company PJSC -- now known as e& -- could tilt the scales in a growing debate about the phone group’s strategy. Vodafone Chief Executive Officer Nick Read is trying to consolidate in key markets while facing pressure from shareholders including Europe’s largest activist fund, Cevian Capital AB.
A wealthy, supportive shareholder could give Read cover to reset expectations around investment and profits by supporting the share price, Jefferies analyst Jerry Dellis said. That could give him greater freedom to spend to upgrade its network -- such as building fiber over and around Vodafone’s cable footprint in Germany.
“We expect e& to counteract activist pressure, not add to it,” said Dellis in a note to clients. He noted e&’s CEO Hatem Dowidar previously worked at Vodafone for 17 years, including with Read.
#Saudi shares extend rebound on budget surplus; #Qatar dips | Reuters
Saudi shares extend rebound on budget surplus; Qatar dips | Reuters
Saudi Arabia's stock index rose in early trade on Monday, on track to extend a rebound from the previous session, while the Qatari index continued to fall.
The benchmark index (.TASI) in Saudi Arabia gained 0.5%, with oil giant Saudi Aramco (2222.SE) advancing 1.5% after it reported an almost 82% rise in first-quarter net profit, broadly in line with analyst forecasts. read more
The kingdom also posted on Sunday a budget surplus of 57.49 billion riyal ($15.33 billion) for the first three months of 2022, bolstered by a 58% jump in oil revenue as prices surged.
Aramco, which is at par with Apple Inc (AAPL.O) as the world's most valuable company, reported a net income of $39.5 billion for the quarter to March 31, from $21.7 billion a year earlier.
Brent crude prices ended the first quarter up almost 70% to $107.91 a barrel from end of March 2021, as the Russian invasion of Ukraine exacerbated concerns over petroleum supplies.
In Qatar, the index (.QSI) fell 0.5%, stretching losses for a third session, hit by a 4.5% slide in Commercial Bank (COMB.QA).
Most Gulf stock markets lost ground last week, reflecting investors' anxiety about fast-rising inflation that will drive a sharp rise in interest rates and put global economy growth at risk.
** Dubai and Abu Dhabi bourse were closed for a public holiday.
Saudi Arabia's stock index rose in early trade on Monday, on track to extend a rebound from the previous session, while the Qatari index continued to fall.
The benchmark index (.TASI) in Saudi Arabia gained 0.5%, with oil giant Saudi Aramco (2222.SE) advancing 1.5% after it reported an almost 82% rise in first-quarter net profit, broadly in line with analyst forecasts. read more
The kingdom also posted on Sunday a budget surplus of 57.49 billion riyal ($15.33 billion) for the first three months of 2022, bolstered by a 58% jump in oil revenue as prices surged.
Aramco, which is at par with Apple Inc (AAPL.O) as the world's most valuable company, reported a net income of $39.5 billion for the quarter to March 31, from $21.7 billion a year earlier.
Brent crude prices ended the first quarter up almost 70% to $107.91 a barrel from end of March 2021, as the Russian invasion of Ukraine exacerbated concerns over petroleum supplies.
In Qatar, the index (.QSI) fell 0.5%, stretching losses for a third session, hit by a 4.5% slide in Commercial Bank (COMB.QA).
Most Gulf stock markets lost ground last week, reflecting investors' anxiety about fast-rising inflation that will drive a sharp rise in interest rates and put global economy growth at risk.
** Dubai and Abu Dhabi bourse were closed for a public holiday.
#Oman's OQ invites banks to pitch for gas pipeline network IPO - sources | Reuters
Oman's OQ invites banks to pitch for gas pipeline network IPO - sources | Reuters
Oman's state energy company OQ is considering an initial public offering of its gas pipelines network, four sources with knowledge of the matter told Reuters.
The company has invited local and international banks to pitch for roles in a potential offering, according to the sources, who declined to be named as the matter is not public.
OQ did not immediately respond to a request for comment when contacted by Reuters on Monday.
The company is considering local listings for some of its downstream and upstream assets but has no plan to float the parent company at present, a senior executive told Reuters in November. read more
Oman's state energy company OQ is considering an initial public offering of its gas pipelines network, four sources with knowledge of the matter told Reuters.
The company has invited local and international banks to pitch for roles in a potential offering, according to the sources, who declined to be named as the matter is not public.
OQ did not immediately respond to a request for comment when contacted by Reuters on Monday.
The company is considering local listings for some of its downstream and upstream assets but has no plan to float the parent company at present, a senior executive told Reuters in November. read more
#Saudi Wealth Fund Starts Coffee Firm With $320 Million Plan - Bloomberg
Saudi Wealth Fund Starts Coffee Firm With $320 Million Plan - Bloomberg
Saudi Arabia plans to invest 1.2 billion riyals ($320 million) to turn the kingdom’s coffee beans into a global product.
The country’s sovereign wealth fund set up the Saudi Coffee Co., which will spread the investment over the next 10 years with a goal of raising Saudi Arabia’s annual coffee production to 2,500 tons from 300 tons, the Public Investment Fund said in a statement.
The $620 billion sovereign fund has been creating companies across a wide range of industries as it takes on an increasingly assertive role in diversifying the domestic economy away from oil. The announcement also dovetails with officials’ efforts to expand Saudi Arabia’s soft power and the kingdom’s cultural exports.
Earlier this year, the government instructed cafes and shops to rename a spiced hot beverage commonly referred to as “Arabic coffee,” calling it “Saudi coffee” instead, and declared 2022 the “Year of Saudi Coffee.”
Coffee plays a central role in hospitality in the kingdm’s culture. Saudi coffee is grown in more than 2,500 plantations in the country’s southern mountains and is similar to Yemeni beans.
However, farmers of the water-intensive crop have struggled with low rainfall in recent years, according to local media. The Saudi Coffee Co. will focus on “achieving sustainability across the production, distribution, and marketing aspects of the coffee supply chain,” according to the wealth fund.
Saudi Arabia plans to invest 1.2 billion riyals ($320 million) to turn the kingdom’s coffee beans into a global product.
The country’s sovereign wealth fund set up the Saudi Coffee Co., which will spread the investment over the next 10 years with a goal of raising Saudi Arabia’s annual coffee production to 2,500 tons from 300 tons, the Public Investment Fund said in a statement.
The $620 billion sovereign fund has been creating companies across a wide range of industries as it takes on an increasingly assertive role in diversifying the domestic economy away from oil. The announcement also dovetails with officials’ efforts to expand Saudi Arabia’s soft power and the kingdom’s cultural exports.
Earlier this year, the government instructed cafes and shops to rename a spiced hot beverage commonly referred to as “Arabic coffee,” calling it “Saudi coffee” instead, and declared 2022 the “Year of Saudi Coffee.”
Coffee plays a central role in hospitality in the kingdm’s culture. Saudi coffee is grown in more than 2,500 plantations in the country’s southern mountains and is similar to Yemeni beans.
However, farmers of the water-intensive crop have struggled with low rainfall in recent years, according to local media. The Saudi Coffee Co. will focus on “achieving sustainability across the production, distribution, and marketing aspects of the coffee supply chain,” according to the wealth fund.
#SaudiArabia Posts $15 Billion Surplus On Soaring Oil Income - Bloomberg
Saudi Arabia Posts $15 Billion Surplus On Soaring Oil Income - Bloomberg
Saudi Arabia reported a 57.5 billion riyal ($15.3 billion) budget surplus in the first quarter as officials kept spending restrained despite surging oil income.
Total government revenue was 278 billion riyals, 36% more than the same quarter last year, while spending rose 4% over the same period to 220.5 billion riyals. Capital expenditures fell 1% as the kingdom relies more on its sovereign wealth fund for projects and domestic investment.
The boost was mainly driven by oil revenue, which rose 58% compared to last year, as oil prices surged and the kingdom gradually increased production. Crude reached a high of $128 a barrel in the first quarter and averaged nearly $100 over the period.
The kingdom’s finance ministry has said that it will stick with spending plans for 2022 outlined in December’s budget announcement, using higher oil revenues for replenishing its reserves or transferring to one of its investment funds. It wants to break a boom and bust cycle that has followed previous periods of high oil prices.
Earlier on Sunday, state oil giant Saudi Aramco posted its biggest profit since its record stock-market listing, after oil prices surged in the wake of Russia’s invasion of Ukraine.
Oil markets are lifting Saudi Arabia’s fortunes again after the kingdom was hit hard by plummeting crude prices during the pandemic, giving officials greater geopolitical sway and more cash to spend at home and abroad. The International Monetary Fund last month raised its estimate for Saudi Arabia’s economic growth by 3 percentage points.
Saudi Arabia reported a 57.5 billion riyal ($15.3 billion) budget surplus in the first quarter as officials kept spending restrained despite surging oil income.
Total government revenue was 278 billion riyals, 36% more than the same quarter last year, while spending rose 4% over the same period to 220.5 billion riyals. Capital expenditures fell 1% as the kingdom relies more on its sovereign wealth fund for projects and domestic investment.
The boost was mainly driven by oil revenue, which rose 58% compared to last year, as oil prices surged and the kingdom gradually increased production. Crude reached a high of $128 a barrel in the first quarter and averaged nearly $100 over the period.
The kingdom’s finance ministry has said that it will stick with spending plans for 2022 outlined in December’s budget announcement, using higher oil revenues for replenishing its reserves or transferring to one of its investment funds. It wants to break a boom and bust cycle that has followed previous periods of high oil prices.
Earlier on Sunday, state oil giant Saudi Aramco posted its biggest profit since its record stock-market listing, after oil prices surged in the wake of Russia’s invasion of Ukraine.
Oil markets are lifting Saudi Arabia’s fortunes again after the kingdom was hit hard by plummeting crude prices during the pandemic, giving officials greater geopolitical sway and more cash to spend at home and abroad. The International Monetary Fund last month raised its estimate for Saudi Arabia’s economic growth by 3 percentage points.
Vodafone shares up 4% after #UAE group buys 9.8% stake | Reuters
Vodafone shares up 4% after UAE group buys 9.8% stake | Reuters
Shares in Vodafone (VOD.L) jumped 4% in early trade on Monday after the United Arab Emirates-based telecoms company e& (ETISALAT.AD) revealed it had bought a 9.8% stake in the British mobile operator.
Formerly known as Emirates Telecommunications Group, e& said it had no intention of making an offer for the whole of Vodafone and it had spent $4.4 billion to invest at an "attractive valuation" to benefit from a diversification in currencies.
The company said it was fully supportive of Vodafone's board, which has come under pressure from other investors after the group struggled in its mature European markets where competition and regulation have pushed prices lower.
Vodafone Chief Executive Nick Read has vowed to lead a wave of consolidation in Europe to rebuild markets and boost returns but in recent months he has rejected an approach for the group's Italian assets and missed out on a deal between rivals in Spain. read more
Shares in Vodafone (VOD.L) jumped 4% in early trade on Monday after the United Arab Emirates-based telecoms company e& (ETISALAT.AD) revealed it had bought a 9.8% stake in the British mobile operator.
Formerly known as Emirates Telecommunications Group, e& said it had no intention of making an offer for the whole of Vodafone and it had spent $4.4 billion to invest at an "attractive valuation" to benefit from a diversification in currencies.
The company said it was fully supportive of Vodafone's board, which has come under pressure from other investors after the group struggled in its mature European markets where competition and regulation have pushed prices lower.
Vodafone Chief Executive Nick Read has vowed to lead a wave of consolidation in Europe to rebuild markets and boost returns but in recent months he has rejected an approach for the group's Italian assets and missed out on a deal between rivals in Spain. read more
Oil prices slide as investors take profit; supply fear still looms | Reuters
Oil prices slide as investors take profit; supply fear still looms | Reuters
Oil prices fell on Monday, paring early gains as investors took profit following a surge in the previous session, albeit in the shadow of supply fear as the European Union prepares an import ban on Russian crude and with limited increase in OPEC output.
Brent crude futures were down $1.42, or 1.3%, at $110.13 a barrel at 0653 GMT, while U.S. West Texas Intermediate (WTI) crude futures were $1.10, or 1.0%, lower at $109.39 a barrel.
Both benchmarks, which jumped about 4% last Friday, earlier climbed by more than $1 a barrel, with WTI reaching its highest since March 28 at $111.71.
"Investors scooped up profit after a sharp gain last Friday," said Naohiro Niimura, a partner at Market Risk Advisory.
Oil prices fell on Monday, paring early gains as investors took profit following a surge in the previous session, albeit in the shadow of supply fear as the European Union prepares an import ban on Russian crude and with limited increase in OPEC output.
Brent crude futures were down $1.42, or 1.3%, at $110.13 a barrel at 0653 GMT, while U.S. West Texas Intermediate (WTI) crude futures were $1.10, or 1.0%, lower at $109.39 a barrel.
Both benchmarks, which jumped about 4% last Friday, earlier climbed by more than $1 a barrel, with WTI reaching its highest since March 28 at $111.71.
"Investors scooped up profit after a sharp gain last Friday," said Naohiro Niimura, a partner at Market Risk Advisory.