Omens of Decline for Russia’s Once World-Leading Energy Industry - The New York Times
It was to be a hugely ambitious project on the frigid Gulf of Ob, in Russia’s Far North, a steppingstone in Moscow’s rising ambitions to be a power in liquefied natural gas much as it is in oil and gas delivered by pipeline.
When President Vladimir V. Putin of Russia launched his war on Ukraine, the $21 billion project known as Arctic LNG 2 was well underway with dozens of wells drilled, an airport built and most of the equipment ordered.
Now, though, European Union sanctions that prohibit the sale of gas liquefaction equipment to Russia have thrown the giant complex into doubt. The sanctions mean, at best, that just one of three planned liquefaction facilities at Arctic LNG is likely to be completed anytime soon, analysts say.
The project’s key international backer, TotalEnergies, recently wrote off its $4.1 billion investment. It is “difficult to believe that it can be built with the sanctions,” Patrick Pouyanne, the TotalEnergies chief executive, told analysts in late April.
The problems go far beyond L.N.G.
In coming years Russia is likely to be forced into retreat across a wide spectrum of energy. Future growth for its oil and gas exports — for decades the backbone of the country’s economy — are now deeply uncertain. The shock waves from Ukraine even extend into nuclear power, where Finland recently shelved a deal for Russia to build an estimated 7 billion euro ($7.4 billion) reactor.
Oil falls 2.5% as U.S. refiners ramp up output, equities retreat | Reuters
Oil prices fell 2.5% on Wednesday, reversing early gains as traders grew less worried about a supply crunch after government data showed U.S. refiners ramped up output, and as crude futures followed Wall Street lower.
Brent crude settled down $2.82, or 2.5%, at $109.11 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2.81, or 2.5%, to $109.59 a barrel.
Both benchmarks gave up early gains of $2-$3 a barrel following a change in risk sentiment as equity markets fell, said UBS analyst Giovanni Staunovo.
Brent remained at an unusual discount to WTI a day after settling below the U.S. benchmark for the first time since May 2020. Traders and analysts cited strong export demand and tightening U.S. crude stockpiles.
Oil falls 2% as U.S. refiners ramp up output, equities retreat | Reuters
Oil prices reversed course and fell over 2% on Wednesday after government data showed U.S. refiners ramped up output, easing worries of a supply crunch, and as traders took cues from a drop in equities market.
Brent crude was down $2.41 cents, or 2.4%, at $109.52 a barrel at 12:05 a.m. ET (1605 GMT), while U.S. West Texas Intermediate (WTI) crude fell $2.5 cents, or 2.2%, to $1 09.85 a barrel.
Brent settled below WTI on Tuesday - the first time since May 2020 - and was still unusually trading at a discount due to strong export demand and tightening U.S. crude stockpiles.
U.S. crude inventories (USOILC=ECI) fell by 3.4 million barrels last week, government data said, an unexpected drawdown as refiners ramped up output in response to tight product inventories and near-record exports that have forced diesel and gasoline prices to record levels in the United States.
Capacity use on both the East Coast and Gulf Coast was above 95%, putting those refineries close to their highest possible running rates.
Most Gulf markets rise; Dubai down | Reuters
Most stock markets in the Gulf extended gains from the previous session to end higher on Wednesday as crude prices gained, but the Dubai index bucked the trend to close lower.
Oil prices, a key catalyst for the Gulf's financial markets, rose on expectations that easing COVID-19 restrictions in China will boost demand and as supply concerns grew.
In Abu Dhabi, stocks (.FTFADGI) advanced 1.4%, with International Holding Co (IHC) (IHC.AD) jumping 6.9% after the conglomerate completed a 7.3-billion-dirham ($1.99 billion) investment deal for three Adani companies.
IHC, which is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates' national security adviser, will provide capital to Adani Green Energy (ADNA.NS), Adani Transmission (ADAI.NS) and Adani Enterprises (ADEL.NS), through preferential allotment route.
The Qatari index (.QSI) climbed 1.3%, extending gains from the previous session when it snapped a three-day losing streak.
Qatar Islamic Bank (QISB.QA) finished 2.5% higher, while Qatar International Islamic Bank (QIIB.QA) leapt 4.2%.
Saudi Arabia's benchmark index (.TASI) edged up 0.2%, trimming earlier gains, with the kingdom's largest lender Saudi National Bank (1180.SE) rising 2.9%.
On the other hand, Saudi Electricity (5110.SE) slid about 8% after reporting a quarterly net profit of 1.52 billion riyals ($405.23 million), down from 1.69 billion riyals a year earlier.
Gulf stock markets lost ground last week, reflecting investors' anxiety about fast-rising inflation that can drive a sharp rise in interest rates and put global economy growth at risk.
Dubai's main share index (.DFMGI) fell 0.9%, dragged down by a 2.2% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.7% decline in Emirates Integrated Telecommunications (DU.DU).
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.3%, helped by a 1.5% rise in Commercial International Bank (COMI.CA).
Abu Dhabi introduces new initiative to ease investor access to local bourse
The Abu Dhabi Securities Exchange (ADX) announced on Wednesday a new streamlined process that will ease investors’ access to the local bourse, in a move to shore up the country’s capital markets.
The initiative enables investors registered with other UAE stock markets that are licensed by the Securities and Commodities Authority (SCA) to trade on ADX without going through a complicated process.
Under the program, investors holding a National Investor Number (NIN) issued by other exchanges can trade eligible securities on ADX by having their NIN validated by an accredited brokerage firm.
However, in the case of a corporate entity, the ADX requires the investor to provide articles of incorporation, along with a list of authorised signatories.
ADX has taken several steps over the last year to attract more investors, including reducing fees and extending trading hours.
Oil prices rise on China demand recovery expectations, supply concerns | Reuters
Oil prices rose on Wednesday on expectations that easing COVID-19 restrictions in China will boost demand and as supply concerns grew.
Brent crude was up $1.92, or 1.7%, at $113.85 a barrel at 1225 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $2.69, or 2.4%, to $115.09 a barrel, reversing some of the previous session's losses.
Hopes of further lockdown easing in China boosted expectations for demand recovery. The country's authorities allowed 864 of Shanghai's financial institutions to resume work, sources said on Wednesday, a day after the Chinese city achieved a milestone of three consecutive days with no new COVID cases outside quarantine zones. read more
And China has relaxed some COVID test rules for U.S. and other travellers. read more
The market also saw support from rising supply concerns. Russian crude output in April fell by nearly 9% from the previous month, an internal OPEC+ report showed on Tuesday, as Western sanctions on Moscow curbed exports. read more
Watch Gulf Bank Set for MSCI Inclusion - Bloomberg
Tony Daher, CEO of Gulf Bank discusses the Kuwait-based bank's 1Q earnings, its inclusion on MSCI's global standard indexes and outlook for 2022. In this exclusive interview, he speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil prices rise on China demand recovery expectations, supply concerns | Reuters
Oil prices rose on Wednesday on expectations that easing COVID-19 restrictions in China will boost demand and as supply concerns grew.
Brent crude was up $1.24 cents, or 1.1%, at $113.17 a barrel at 0921 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $1.69 cents, or 1.5%, to $114.09 a barrel, reversing some of the previous session's losses.
Hopes of further lockdown easing in China boosted expectations for demand recovery. The country's authorities allowed 864 of Shanghai's financial institutions to resume work, sources said on Wednesday, a day after the Chinese city achieved a milestone of three consecutive days with no new COVID-19 cases outside quarantine zones. read more
The market also saw support from rising supply concerns. Russian crude output in April fell by nearly 9% from the previous month, an internal OPEC+ report showed on Tuesday, as Western sanctions on Moscow following its invasion of Ukraine hit the top oil producer. read more
Saudi Arabia’s PIF Adds to Games Push With 5% Nintendo Stake - Bloomberg
Saudi Arabia’s Public Investment Fund took a 5.01% stake in Nintendo Co., its third investment in a Japanese games company as the industry consolidates.
The PIF, as the $500 billion fund is known, said the Nintendo purchase was made for investment purposes, according to a filing to Japan’s Finance Ministry. That is the same reason it has given with previous investments and the holding is set to make the Saudi fund Nintendo’s fifth-largest shareholder, according to data compiled by Bloomberg.
The PIF has been building stakes in video game makers and e-sports firms over the past two years, turning to the Japanese market just as a weaker yen has made investments more affordable. The Saudi fund disclosed stakes of more than 5% in two Japan-listed gaming firms this year: Capcom Co., the maker of the Street Fighter and Resident Evil franchises, and online games provider Nexon Co.
“Saudi Arabia has been beefing up efforts to create its own content industry, and this series of investments in Japanese game companies is likely a way for them to learn from Japan,” said Hideki Yasuda, a senior analyst at Toyo Securities.
Qatar to invest $5 bln in Spain's EU-funded recovery, Emir says | Reuters
Qatar's $300 billion sovereign wealth fund plans to invest $5 billion in Spanish projects, the Gulf state's ruler said late on Tuesday in a dinner held in his honour in Madrid.
The amount shows how confident Qatar is in the Spanish economy's strength, Emir Sheikh Tamim bin Hamad Al-Thani said in a speech during a dinner held in King Felipe's Palace in Madrid, a government source told Reuters on Tuesday.
Qatar's ruler, who is visiting Spain this week, is expected to sign a bilateral agreement with Spain to invest in the projects funded by the European Union COVID recovery funds, the first such agreements between a member state and a non-EU country. read more
The investments, mainly in sustainability and digitalisation projects, are due to be implemented within two to three years, according to that person, government sources told Reuters.
Adnoc, Borealis Will Sell 10% of Chemical JV Borouge in IPO - Bloomberg
Abu Dhabi National Oil Co. and Borealis AG plan to sell a 10% stake in their petrochemical joint venture in an initial public offering, the latest in a string of blockbuster listings from the Middle East to push ahead even as volatility rocks global markets.
The state-owned energy company and the Austrian chemicals producer will sell 3 billion shares in the Abu Dhabi IPO of Borouge, they said in a statement, without indicating a price range. The sale could raise about $2 billion and value the unit that makes specialty plastics for manufacturing and consumer goods at roughly $20 billion, Bloomberg News reported in April.
Borouge shares are expected to start trading on June 3, Adnoc and Borealis said in the statement. The subscription period for retail investors will be from May 23 to May 28 and qualified investors can sign up to buy the shares from May 23 to May 30.
The Middle East IPO boom has continued to gather steam even as Russia’s invasion of Ukraine, hawkish central banks and soaring inflation have put a lid on share sales in the rest of the world. The region has largely dodged the turbulence, buoyed by high oil prices and significant equity inflows into Gulf markets.
Local energy companies are stepping up efforts to list assets, looking to draw in global investors and support the shift to a post-oil economy. The United Arab Emirates and Saudi Arabia have been leading the way in this drive, with the IPO of oil giant Saudi Aramco in 2019 and the sale of stakes in various Adnoc units.
Mideast Stocks: Major Gulf bourses track oil prices higher
Major stock markets in the Gulf rose in early trade on Wednesday, in line with rising oil prices, with the Dubai index on track to extend gains for a second session.
Crude prices, a key catalyst for the Gulf's financial market, edged up on expectations that easing COVID-19 restrictions in China will push up demand and as industry data showed drawdowns in U.S crude inventories.
Dubai's main share index gained 0.7%, led by a 1.7% rise in sharia-compliant lender Dubai Islamic Bank and a 1.3% increase in blue-chip developer Emaar Properties .
On Friday, Emaar posted a record profit of 2.24 billion dirham ($610 million) in the first quarter, as property sales surged 17%.
Analysts had expected a net profit of 1.06 billion dirhams, according to Refinitiv.
The Abu Dhabi index climbed 2.%, driven by a 1.1% rise in the country's largest lender First Abu Dhabi Bank .
Separately, Abu Dhabi National Oil Company (ADNOC) and its Austrian chemicals partner Borealis plan an initial public offering of their petrochemicals joint venture Borouge, the latest step in the Abu Dhabi state energy group's asset monetisation programme.
Saudi Arabia's benchmark index gained 0.7%, with Al Rajhi Bank rising 1.5%, while Riyad Bank advanced 4%.
The kingdom also posted a budget surplus of 57.49 billion riyal ($15.33 billion) for the first three months of 2022 on Sunday, bolstered by a 58% jump in oil revenue as prices surged.
On the other hand, Saudi Electricity slid about 5% after reporting a quarterly net profit of 1.52 billion riyals ($405.23 million), down from 1.69 billion riyals a year earlier.
In Qatar, the index gained 1.2%, as almost all the stocks on the index were in positive territory including Qatar Islamic Bank, which was up 1.9%.
