Oil rises as EU to phase in Russian oil ban, Shanghai ends lockdown | Reuters
Oil prices rose on Wednesday after European Union leaders agreed to a phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai, which could bolster demand in an already tight market.
Oil benchmarks have marched steadily higher for several weeks as Russian shipments are squeezed by EU and U.S. sanctions and as India and China can only buy so much from Russia, the world's largest exporter of crude and fuel.
Brent crude settled at $116.29 a barrel, a gain of 69 cents, or 0.6%, while U.S. West Texas Intermediate crude gained 59 cents, or 0.5%, to $115.26.
EU leaders agreed in principle on Monday to cut 90% of oil imports from Russia by the end of this year, the bloc's toughest sanctions yet since the start of the invasion of Ukraine, which Moscow calls a "special military operation". read more
Wednesday, 1 June 2022
#Oman Backs U.S. Firm Mining Crypto to Cut Natural Gas Flaring - Bloomberg
Oman Backs U.S. Firm Mining Crypto to Cut Natural Gas Flaring - Bloomberg
Oman’s sovereign wealth fund took an equity stake in a U.S. firm that says it helps fossil-fuel producers cut flaring by using stranded natural gas to power cryptocurrency mining instead.
Oman Investment Authority was part of the $350 million equity round that Crusoe Energy Systems Inc. raised in April, according to a statement. Ismail Ibrahim Al-Harthi, senior manager of technology investments at Oman Investment Authority, said the firm’s policy doesn’t comment on the size of stakes. Crusoe also declined to reveal terms.
Denver-based Crusoe will open an office in Muscat, Oman, to help deploy power generators and mining equipment for capturing gas at well sites, said Chief Executive Officer Chase Lochmiller. The Middle East and North Africa account for about 38% of the world’s flaring -- the burning of excess natural gas from oilfields. The practice has come under fire for releasing harmful greenhouse gases and worsening climate change.
“We’ve always felt it was important for us to have a presence in the MENA region,” given its share of global flaring, Lochmiller said. “Having the buy-in from nations that are actively trying to solve the flaring issues is what we are looking for.”
Crypto mining has come under scrutiny for being energy intensive and reliant on burning natural gas. Crusoe, meanwhile, has faced criticism from climate experts who say the fact the company uses gas that would otherwise go to waste doesn’t negate the fact that it burns fossil fuel to mine crypto.
Oman’s sovereign wealth fund took an equity stake in a U.S. firm that says it helps fossil-fuel producers cut flaring by using stranded natural gas to power cryptocurrency mining instead.
Oman Investment Authority was part of the $350 million equity round that Crusoe Energy Systems Inc. raised in April, according to a statement. Ismail Ibrahim Al-Harthi, senior manager of technology investments at Oman Investment Authority, said the firm’s policy doesn’t comment on the size of stakes. Crusoe also declined to reveal terms.
Denver-based Crusoe will open an office in Muscat, Oman, to help deploy power generators and mining equipment for capturing gas at well sites, said Chief Executive Officer Chase Lochmiller. The Middle East and North Africa account for about 38% of the world’s flaring -- the burning of excess natural gas from oilfields. The practice has come under fire for releasing harmful greenhouse gases and worsening climate change.
“We’ve always felt it was important for us to have a presence in the MENA region,” given its share of global flaring, Lochmiller said. “Having the buy-in from nations that are actively trying to solve the flaring issues is what we are looking for.”
Crypto mining has come under scrutiny for being energy intensive and reliant on burning natural gas. Crusoe, meanwhile, has faced criticism from climate experts who say the fact the company uses gas that would otherwise go to waste doesn’t negate the fact that it burns fossil fuel to mine crypto.
Luberef IPO: Citigroup Among Banks Leading Aramco Refinery Unit’s Listing - Bloomberg
Luberef IPO: Citigroup Among Banks Leading Aramco Refinery Unit’s Listing - Bloomberg
Citigroup Inc. is among the banks leading the planned initial public offering of Saudi Aramco Base Oil Co., a unit of the state-controlled oil producer, according to people familiar with the matter.
Luberef, as the refining company is also known, plans to launch its IPO in the second half of the year, the people said, asking not to be identified discussing private information. The local unit of HSBC Holdings Plc and SNB Capital are also advising on the offering, which could raise about $1 billion.
Luberef would join several Aramco subsidiaries already listed on Saudi Arabia’s stock exchange, including chemicals maker Saudi Basic Industries Corp. and Rabigh Refining & Petrochemical Co.
Aramco is separately considering selling stakes in its trading business and retail fuels unit, and also mulling a secondary stock offering of its own, Bloomberg News has reported. If these share sales materialize, they could add billions to an already hefty IPO haul in the Middle East.
Citigroup Inc. is among the banks leading the planned initial public offering of Saudi Aramco Base Oil Co., a unit of the state-controlled oil producer, according to people familiar with the matter.
Luberef, as the refining company is also known, plans to launch its IPO in the second half of the year, the people said, asking not to be identified discussing private information. The local unit of HSBC Holdings Plc and SNB Capital are also advising on the offering, which could raise about $1 billion.
Luberef would join several Aramco subsidiaries already listed on Saudi Arabia’s stock exchange, including chemicals maker Saudi Basic Industries Corp. and Rabigh Refining & Petrochemical Co.
Aramco is separately considering selling stakes in its trading business and retail fuels unit, and also mulling a secondary stock offering of its own, Bloomberg News has reported. If these share sales materialize, they could add billions to an already hefty IPO haul in the Middle East.
Oil up on EU's Russian oil ban, end of Shanghai lockdown | Reuters
Oil up on EU's Russian oil ban, end of Shanghai lockdown | Reuters
Oil prices strengthened on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai, which could bolster demand in an already tight market.
Brent crude was up $1.83, or 1.6%, at $117.46 a barrel as of 11:56 a.m. EDT (1556 GMT). U.S. West Texas Intermediate crude gained $1.77, or 1.6%, to $116.45.
Both benchmarks registered gains over May, marking the sixth straight month of rising prices.
"The mood on the oil market is seemingly turning ever more bullish," said Julius Baer analyst Norbert Rucker.
Oil prices strengthened on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai, which could bolster demand in an already tight market.
Brent crude was up $1.83, or 1.6%, at $117.46 a barrel as of 11:56 a.m. EDT (1556 GMT). U.S. West Texas Intermediate crude gained $1.77, or 1.6%, to $116.45.
Both benchmarks registered gains over May, marking the sixth straight month of rising prices.
"The mood on the oil market is seemingly turning ever more bullish," said Julius Baer analyst Norbert Rucker.
Investcorp-Backed Al Borg Diagnostics Picks Banks for #Saudi IPO - Bloomberg
Investcorp-Backed Al Borg Diagnostics Picks Banks for Saudi IPO - Bloomberg
Al Borg Diagnostics has picked EFG-Hermes Holding Co. and GIB Capital to work on a planned initial public offering in Saudi Arabia, according to people familiar with the matter.
The private laboratory chain, backed by the Middle East’s biggest alternative asset manager Investcorp, could look to raise about $350 million in the share sale, the people said, asking not to be identified as the information isn’t public. The IPO could happen as soon as in the second half of the year, one of the people said.
Details of the offering such as the size and timing are still being discussed and are subject to change, the people added. A spokesperson for Investcorp declined to comment. Representatives for Al Borg, EFG and GIB didn’t immediately respond to requests for comment.
Al Borg would join a long list of companies seeking to go public in the Middle East’s most active IPO market. The region as a whole is enjoying a listings boom, helped by high oil prices and equity inflows.
Al Borg Diagnostics has picked EFG-Hermes Holding Co. and GIB Capital to work on a planned initial public offering in Saudi Arabia, according to people familiar with the matter.
The private laboratory chain, backed by the Middle East’s biggest alternative asset manager Investcorp, could look to raise about $350 million in the share sale, the people said, asking not to be identified as the information isn’t public. The IPO could happen as soon as in the second half of the year, one of the people said.
Details of the offering such as the size and timing are still being discussed and are subject to change, the people added. A spokesperson for Investcorp declined to comment. Representatives for Al Borg, EFG and GIB didn’t immediately respond to requests for comment.
Al Borg would join a long list of companies seeking to go public in the Middle East’s most active IPO market. The region as a whole is enjoying a listings boom, helped by high oil prices and equity inflows.
Middle East IPOs on Track for Best Ever First Half as Oil Surges - Bloomberg
Middle East IPOs on Track for Best Ever First Half as Oil Surges - Bloomberg
Initial public offerings in the Middle East are on track for their best ever first half as high oil prices and foreign inflows shield the region from the volatility that has scuppered listings worldwide.
IPOs in the Middle East have fetched $11.4 billion in the first five months of the year, already eclipsing the amount raised in any other first half, data compiled by Bloomberg show. The tally is only set to increase, with petrochemicals company Borouge starting trading in Abu Dhabi on Friday after raising $2 billion.
The energy-rich region is a rare bright spot for IPOs this year, with a 50% surge in oil prices boosting Gulf economies and stock markets. While share sales have plunged to a two decade-low in Europe because of roaring inflation, rising interest rates and a grim economic outlook, the Middle East has largely escaped the turmoil and has attracted investors from elsewhere.
“IPOs have held up very well in the GCC due to high interest from international and regional investors in recent offerings and in the upcoming ECM pipeline,” said Rudy Saadi, head of ECM in the Middle East and North Africa at Citigroup Inc. “We’ve seen continuous net foreign inflows across all GCC exchanges, even during the recent selloff, a sign that foreign investors are buying this market despite the global volatility.”
Initial public offerings in the Middle East are on track for their best ever first half as high oil prices and foreign inflows shield the region from the volatility that has scuppered listings worldwide.
IPOs in the Middle East have fetched $11.4 billion in the first five months of the year, already eclipsing the amount raised in any other first half, data compiled by Bloomberg show. The tally is only set to increase, with petrochemicals company Borouge starting trading in Abu Dhabi on Friday after raising $2 billion.
The energy-rich region is a rare bright spot for IPOs this year, with a 50% surge in oil prices boosting Gulf economies and stock markets. While share sales have plunged to a two decade-low in Europe because of roaring inflation, rising interest rates and a grim economic outlook, the Middle East has largely escaped the turmoil and has attracted investors from elsewhere.
“IPOs have held up very well in the GCC due to high interest from international and regional investors in recent offerings and in the upcoming ECM pipeline,” said Rudy Saadi, head of ECM in the Middle East and North Africa at Citigroup Inc. “We’ve seen continuous net foreign inflows across all GCC exchanges, even during the recent selloff, a sign that foreign investors are buying this market despite the global volatility.”
Most Gulf bourses in red over fears of rising inflation | Reuters
Most Gulf bourses in red over fears of rising inflation | Reuters
Most Gulf bourses ended lower on Wednesday, in line with global peers as rising inflation fears around the globe deepened worries over growth prospects, with Dubai bucking the trend.
Soaring food and energy costs drove euro zone inflation to a record high of 8.1% in May, figures on Tuesday showed, stoking concern about interest rate rises not just in Europe but globally. read more
In Abu Dhabi, the index (.FTFADGI) closed 1.7% lower, ending a three-day rally, dragged down by a 3.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Saudi Arabia's benchmark index (.TASI) dropped 1.2%, with the country's biggest Islamic lender Al Rajhi Bank (1120.SE) falling 2.3% and oil giant Saudi Aramco (2222.SE) retreating 2%.
The Saudi stock market recorded a decrease as investors moved to secure their gains. The market had been impacted by the uncertainty around inflation and the volatility in oil prices, said Eman AlAyyaf, CEO of EA Trading.
The Qatari index (.QSI) edged down 0.7%, hit by a 2.8% drop in Qatar Islamic Bank (QISB.QA).
Dubai's main share index (.DFMGI), however, advanced 1.8%, boosted by a 4.2% surge in top lender Emirates NBD (ENBD.DU) and a 2.4% increase in Sharia-compliant lender Dubai Islamic Bank .
According to AlAyyaf, investors in Dubai continue to look for buying opportunities after large price corrections recorded during the last couple of weeks.
"The banking sector could see additional increases as monetary policy tightening takes place," AlAyyaf added.
Israel signed a free trade agreement with the United Arab Emirates on Tuesday, its first with an Arab state and one which eliminates most tariffs and aims to lift their annual bilateral trade to more than $10 billion. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.7%, with Commercial International Bank Egypt (COMI.CA) slipping 0.5%.
Most Gulf bourses ended lower on Wednesday, in line with global peers as rising inflation fears around the globe deepened worries over growth prospects, with Dubai bucking the trend.
Soaring food and energy costs drove euro zone inflation to a record high of 8.1% in May, figures on Tuesday showed, stoking concern about interest rate rises not just in Europe but globally. read more
In Abu Dhabi, the index (.FTFADGI) closed 1.7% lower, ending a three-day rally, dragged down by a 3.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Saudi Arabia's benchmark index (.TASI) dropped 1.2%, with the country's biggest Islamic lender Al Rajhi Bank (1120.SE) falling 2.3% and oil giant Saudi Aramco (2222.SE) retreating 2%.
The Saudi stock market recorded a decrease as investors moved to secure their gains. The market had been impacted by the uncertainty around inflation and the volatility in oil prices, said Eman AlAyyaf, CEO of EA Trading.
The Qatari index (.QSI) edged down 0.7%, hit by a 2.8% drop in Qatar Islamic Bank (QISB.QA).
Dubai's main share index (.DFMGI), however, advanced 1.8%, boosted by a 4.2% surge in top lender Emirates NBD (ENBD.DU) and a 2.4% increase in Sharia-compliant lender Dubai Islamic Bank .
According to AlAyyaf, investors in Dubai continue to look for buying opportunities after large price corrections recorded during the last couple of weeks.
"The banking sector could see additional increases as monetary policy tightening takes place," AlAyyaf added.
Israel signed a free trade agreement with the United Arab Emirates on Tuesday, its first with an Arab state and one which eliminates most tariffs and aims to lift their annual bilateral trade to more than $10 billion. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.7%, with Commercial International Bank Egypt (COMI.CA) slipping 0.5%.
#Dubai’s 56% Property Price Surge Collides With Ghosts of 2009 Crash - Bloomberg
Dubai’s 56% Property Price Surge Collides With Ghosts of 2009 Crash - Bloomberg
On Dubai’s luxury Palm Jumeirah island, a 10-bedroom mansion sold for a record $76 million in April. Demand for villas is soaring and a futuristic building is being constructed nearby with a 90-meter-high infinity pool and a giant tank of jellyfish.
Yet, right opposite, stand the concrete skeletons of four unfinished buildings from a stalled 20-year-old project called the Dubai Pearl — a reminder of how quickly booms can go bust.
Last year, Dubai saw the biggest increase in high-end property prices globally, partly because the government’s nimble response to the coronavirus pulled in money from around the world. Prime real-estate prices rose 56% in 2021, according to Knight Frank. That topped every other major city and far exceeded increases of 1.3% in London, 3.6% in New York and 19% in San Francisco.
In the midst of Dubai’s resurgence, relics from the property crash that nearly bankrupted the emirate in 2009 still dot its glitzy skyline. Yet the frenzy for real-estate investments in this city has been running so high that mammoth unfinished projects like the Pearl have come into the spotlight once more — even though they are reminders of past excesses.
The Pearl is on a plot of land situated inside a freezone run by business park operator Tecom Group, which is on the verge of listing on the stock market. Tecom is still owed money from a years-ago sale of the Pearl land, according to documents seen by Bloomberg News and people familiar with the matter. Bloomberg News could not independently verify who currently owns the project, which went through a number of developers in its two-decade saga, or the land on which it was meant to be built.
On Dubai’s luxury Palm Jumeirah island, a 10-bedroom mansion sold for a record $76 million in April. Demand for villas is soaring and a futuristic building is being constructed nearby with a 90-meter-high infinity pool and a giant tank of jellyfish.
Yet, right opposite, stand the concrete skeletons of four unfinished buildings from a stalled 20-year-old project called the Dubai Pearl — a reminder of how quickly booms can go bust.
Last year, Dubai saw the biggest increase in high-end property prices globally, partly because the government’s nimble response to the coronavirus pulled in money from around the world. Prime real-estate prices rose 56% in 2021, according to Knight Frank. That topped every other major city and far exceeded increases of 1.3% in London, 3.6% in New York and 19% in San Francisco.
In the midst of Dubai’s resurgence, relics from the property crash that nearly bankrupted the emirate in 2009 still dot its glitzy skyline. Yet the frenzy for real-estate investments in this city has been running so high that mammoth unfinished projects like the Pearl have come into the spotlight once more — even though they are reminders of past excesses.
The Pearl is on a plot of land situated inside a freezone run by business park operator Tecom Group, which is on the verge of listing on the stock market. Tecom is still owed money from a years-ago sale of the Pearl land, according to documents seen by Bloomberg News and people familiar with the matter. Bloomberg News could not independently verify who currently owns the project, which went through a number of developers in its two-decade saga, or the land on which it was meant to be built.
Mideast Stocks: Most Gulf bourses track global shares lower; #Dubai gains
Mideast Stocks: Most Gulf bourses track global shares lower; Dubai gains
Most Gulf bourses tumbled in early trade on Wednesday, in line with global peers as rising inflation fears around the globe deepened worries over growth prospects.
The MSCI world equity index, which tracks shares in 50 countries, was down 0.61%. The pan-European STOXX 600 index fell 0.72%.
In Abu Dhabi, the index dropped 0.8%, set to end a three-session rally, weighed down by a 1.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank.
Response Plus Holding, however, jumped 3.1% after the company's board approved opening of its unit's branch in Riyadh.
Saudi Arabia's benchmark index declined 0.6%, with the country's biggest lender Saudi National Bank and oil giant Saudi Aramco retreating 1.1% each.
Oil prices, a key catalyst for the Gulf's financial market, turned negative after a report that some producers were exploring the idea of suspending Russia's participation in the OPEC+ production deal.
The energy index in Saudi Arabia was down 1.3%.
Exempting Russia could pave the way for Saudi Arabia, the United Arab Emirates and other OPEC members to produce more to meet production targets.
The Qatari index dropped 0.6%, hit by a 1.2% drop in Gulf's largest lender Qatar National Bank.
Dubai's main share index gained 1.1%, boosted by a 2.7% rise in top lender Emirates NBD and a 1.7% increase in Sharia-compliant lender Dubai Islamic Bank .
Dubai's housing prices are set to rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
Most Gulf bourses tumbled in early trade on Wednesday, in line with global peers as rising inflation fears around the globe deepened worries over growth prospects.
The MSCI world equity index, which tracks shares in 50 countries, was down 0.61%. The pan-European STOXX 600 index fell 0.72%.
In Abu Dhabi, the index dropped 0.8%, set to end a three-session rally, weighed down by a 1.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank.
Response Plus Holding, however, jumped 3.1% after the company's board approved opening of its unit's branch in Riyadh.
Saudi Arabia's benchmark index declined 0.6%, with the country's biggest lender Saudi National Bank and oil giant Saudi Aramco retreating 1.1% each.
Oil prices, a key catalyst for the Gulf's financial market, turned negative after a report that some producers were exploring the idea of suspending Russia's participation in the OPEC+ production deal.
The energy index in Saudi Arabia was down 1.3%.
Exempting Russia could pave the way for Saudi Arabia, the United Arab Emirates and other OPEC members to produce more to meet production targets.
The Qatari index dropped 0.6%, hit by a 1.2% drop in Gulf's largest lender Qatar National Bank.
Dubai's main share index gained 1.1%, boosted by a 2.7% rise in top lender Emirates NBD and a 1.7% increase in Sharia-compliant lender Dubai Islamic Bank .
Dubai's housing prices are set to rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
Insurance broker Acrisure touches $23 bln in valuation after latest funding | Reuters
Insurance broker Acrisure touches $23 bln in valuation after latest funding | Reuters
Acrisure said on Tuesday it had raised $725 million in a fresh funding round led by a wholly owned subsidiary of Abu Dhabi Investment Authority, valuing the insurance brokerage at $23 billion.
The company has benefited from a jump in global commercial insurance premiums that rose 11% on average in the first quarter, according to broker Marsh, with the war in Ukraine worsening pressure on rates. read more
The Michigan-based company, which offers financial, cyber as well as asset and wealth management services to its customers in insurance, reinsurance and real estate services, has grown its revenue from $38 million to $3.5 billion in the last eight years.
Acrisure plans to use the latest funding, supported by certain clients of Guggenheim Investments and Oak Hill Advisors, to increase brand awareness and invest in human and technological infrastructure, according to a statement. https://bwnews.pr/3z8yubK
Founded in 2005, the company was valued at $17.5 billion, including debt, in March this year when it raised $3 billion. https://bwnews.pr/3GxAfRC
Chief Executive Officer Greg Williams with a consortium of minority investors bought Acrisure in a $2.9 billion deal from private equity firm Genstart Capital in November 2016. https://prn.to/38zXwFT
Acrisure said on Tuesday it had raised $725 million in a fresh funding round led by a wholly owned subsidiary of Abu Dhabi Investment Authority, valuing the insurance brokerage at $23 billion.
The company has benefited from a jump in global commercial insurance premiums that rose 11% on average in the first quarter, according to broker Marsh, with the war in Ukraine worsening pressure on rates. read more
The Michigan-based company, which offers financial, cyber as well as asset and wealth management services to its customers in insurance, reinsurance and real estate services, has grown its revenue from $38 million to $3.5 billion in the last eight years.
Acrisure plans to use the latest funding, supported by certain clients of Guggenheim Investments and Oak Hill Advisors, to increase brand awareness and invest in human and technological infrastructure, according to a statement. https://bwnews.pr/3z8yubK
Founded in 2005, the company was valued at $17.5 billion, including debt, in March this year when it raised $3 billion. https://bwnews.pr/3GxAfRC
Chief Executive Officer Greg Williams with a consortium of minority investors bought Acrisure in a $2.9 billion deal from private equity firm Genstart Capital in November 2016. https://prn.to/38zXwFT
Oil firms on EU's Russian oil ban and end of Shanghai lockdown | Reuters
Oil firms on EU's Russian oil ban and end of Shanghai lockdown | Reuters
Oil prices firmed on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai.
Brent crude was up $1.71, or 1.5%, at $117.31 a barrel by 0817 GMT. U.S. West Texas Intermediate (WTI) crude rose $1.67, or 1.5%, to $116.34.
Both benchmarks registered gains over May, marking the sixth straight month of rising prices.
"The mood on the oil market is seemingly turning ever more bullish," said Julius Baer analyst Norbert Rucker. "Europe's embargo and China's partial reopening is fuelling supply fears and lifting oil prices."
Oil prices firmed on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai.
Brent crude was up $1.71, or 1.5%, at $117.31 a barrel by 0817 GMT. U.S. West Texas Intermediate (WTI) crude rose $1.67, or 1.5%, to $116.34.
Both benchmarks registered gains over May, marking the sixth straight month of rising prices.
"The mood on the oil market is seemingly turning ever more bullish," said Julius Baer analyst Norbert Rucker. "Europe's embargo and China's partial reopening is fuelling supply fears and lifting oil prices."
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