Oil settles up despite OPEC+ output hike plan; supply still tight | Reuters
Oil settled higher on Friday, supported by expectations that OPEC's decision to increase production targets by slightly more than planned will not add that much to global supply which should tighten as China eases COVID restrictions.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, on Thursday agreed to boost output by 648,000 barrels per day (bpd) a month in July and August rather than 432,000 bpd as previously agreed. read more
Brent crude rose $2.11, or 1.8%, to settle at $119.72 a barrel by 1338 GMT. U.S. West Texas Intermediate (WTI) crude advanced $2, or 1.7%, to $118.87. Both benchmarks were up by $3 in after hours trading.
U.S. crude notched a sixth weekly gain on tight U.S. supply, which has prompted talk of fuel export curbs or a windfall tax on oil and gas producers. read more
Friday 3 June 2022
#Dubai’s resurrected ‘World’ archipelago gets its first hotel | Financial Times
Dubai’s resurrected ‘World’ archipelago gets its first hotel | Financial Times
In a Dubai courtroom 11 years ago, a lawyer representing Nakheel, the state-run developer, faced accusations that its most ostentatious project was “dead”. Subsequent newspaper headlines gleefully warned: “Dubai fears end of The World”.
In a Dubai courtroom 11 years ago, a lawyer representing Nakheel, the state-run developer, faced accusations that its most ostentatious project was “dead”. Subsequent newspaper headlines gleefully warned: “Dubai fears end of The World”.
The collection of 300 man-made islands off the Gulf coast, arranged to resemble a world map and surrounded by a 27km breakwater, was announced in 2003 and intended to be the ultimate trophy real-estate project. Soon sand was being dredged, the islands began to appear and a bidding frenzy ensued; in a 2006 publicity stunt Richard Branson posed on the island representing Britain wearing a Union Jack suit.
But then came the global financial crisis, bringing the ambitious emirate into recession. Legal wrangles consumed the city. Work on the World Islands stopped but the Nakheel lawyer insisted the project wasn’t dead, only merely like a patient in a “coma” — implying that it would, in time, wake up and be successful.
Now, a decade on, that seemingly optimistic appraisal is closer to coming true. In line with Dubai’s rollercoaster history, the city’s services-and tourism-oriented economy is back on the way up, buoyed first by an influx of wealthy people thanks to the United Arab Emirates’ successful handling of the pandemic and, more recently, a flood of rich Russians seeking a financial haven. In December, the artificial archipelago got its first hotel: a five-star resort operated by Anantara that sits on the island representing Argentina and offers 70 beachfront villas with panoramic views of Dubai’s skyscraper-strewn skyline.
Hedge-Fund Trader Facing Danish Cum-Ex Charges Arrested in #Dubai - Bloomberg
Hedge-Fund Trader Facing Danish Cum-Ex Charges Arrested in Dubai - Bloomberg
Hedge-fund trader Sanjay Shah was arrested in Dubai this week for possible extradition to Denmark, where Shah faces charges in connection with a $1.9 billion cum-ex case, the government said.
“We will push for an extradition as soon as possible,” Danish Foreign Minister Jeppe Kofod said in a tweet on Friday. The Danish broadcaster DR reported that a local judge will soon decide if Shah is to be handed over to Danish authorities.
Danish prosecutors have alleged that Shah was the mastermind behind a scam involving a global network of bankers, lawyers and agents who illegally sought refunds on dividend taxes they never paid, on stocks they never owned. Shah has maintained his innocence.
Denmark and the United Arab Emirates signed a deal in March on mutual extradition on suspects, with Shah’s handover being one of the main purposes.
Danish Justice Minister Mattias Tesfaye said in a separate statement on Friday that Shah’s arrest makes clear how important the agreement with the UAE is. Denmark was swindled out of a “staggering amount,” he said, and “it shouldn’t be possible for suspects to hide in the Middle East and escape accountability in a Danish courtroom.”
Hedge-fund trader Sanjay Shah was arrested in Dubai this week for possible extradition to Denmark, where Shah faces charges in connection with a $1.9 billion cum-ex case, the government said.
“We will push for an extradition as soon as possible,” Danish Foreign Minister Jeppe Kofod said in a tweet on Friday. The Danish broadcaster DR reported that a local judge will soon decide if Shah is to be handed over to Danish authorities.
Danish prosecutors have alleged that Shah was the mastermind behind a scam involving a global network of bankers, lawyers and agents who illegally sought refunds on dividend taxes they never paid, on stocks they never owned. Shah has maintained his innocence.
Denmark and the United Arab Emirates signed a deal in March on mutual extradition on suspects, with Shah’s handover being one of the main purposes.
Danish Justice Minister Mattias Tesfaye said in a separate statement on Friday that Shah’s arrest makes clear how important the agreement with the UAE is. Denmark was swindled out of a “staggering amount,” he said, and “it shouldn’t be possible for suspects to hide in the Middle East and escape accountability in a Danish courtroom.”
#Qatar LNG Output Falls Despite Surging Demand Amid Energy Crisis - Bloomberg
Qatar LNG Output Falls Despite Surging Demand Amid Energy Crisis - Bloomberg
Qatar’s liquefied natural gas production dropped this year, despite requests from European countries hungry for bigger deliveries to replace Russian fuel.
European utilities are scrambling to secure the commodity from producers around the world to reduce dependence on their top supplier after the invasion of Ukraine. The drop in output is partly due to several liquefaction trains being unavailable due to scheduled maintenance.
The Persian Gulf country exported less than 35 million tons of LNG between January and May, down from 36 million tons a year earlier, according to ship-tracking data compiled by Bloomberg. Qatar Energy didn’t respond to a request for comment.
European nations have tried to tap Qatar for more LNG and the US has attempted to lobby Doha on their behalf. Germany’s Economy Minister Robert Habeck visited Qatar in March and received the emir, Sheikh Tamim bin Hamad Al Thani, in Berlin last month, but such efforts yielded modest results.
Qatar’s liquefied natural gas production dropped this year, despite requests from European countries hungry for bigger deliveries to replace Russian fuel.
European utilities are scrambling to secure the commodity from producers around the world to reduce dependence on their top supplier after the invasion of Ukraine. The drop in output is partly due to several liquefaction trains being unavailable due to scheduled maintenance.
The Persian Gulf country exported less than 35 million tons of LNG between January and May, down from 36 million tons a year earlier, according to ship-tracking data compiled by Bloomberg. Qatar Energy didn’t respond to a request for comment.
European nations have tried to tap Qatar for more LNG and the US has attempted to lobby Doha on their behalf. Germany’s Economy Minister Robert Habeck visited Qatar in March and received the emir, Sheikh Tamim bin Hamad Al Thani, in Berlin last month, but such efforts yielded modest results.
Oil rises despite OPEC+ output hike plan; supply still tight | Reuters
Oil rises despite OPEC+ output hike plan; supply still tight | Reuters
Oil rose higher on Friday, supported by expectations that OPEC's decision to increase production targets by slightly more than planned won't much affect tight global supply and by rising demand as China eases COVID restrictions.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, on Thursday agreed to boost output by 648,000 barrels per day (bpd) a month in July and August rather than 432,000 bpd as previously agreed. read more
Brent crude rose $1.76, or 1.5%, to $119.37 a barrel by 1338 GMT. U.S. West Texas Intermediate (WTI) crude advanced $1.70, or 1.3%, to $118.57.
U.S. crude was heading for a sixth weekly gain on tight U.S. supply, which has prompted talk of fuel export curbs or a windfall tax on oil and gas producers. read more
Oil rose higher on Friday, supported by expectations that OPEC's decision to increase production targets by slightly more than planned won't much affect tight global supply and by rising demand as China eases COVID restrictions.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, on Thursday agreed to boost output by 648,000 barrels per day (bpd) a month in July and August rather than 432,000 bpd as previously agreed. read more
Brent crude rose $1.76, or 1.5%, to $119.37 a barrel by 1338 GMT. U.S. West Texas Intermediate (WTI) crude advanced $1.70, or 1.3%, to $118.57.
U.S. crude was heading for a sixth weekly gain on tight U.S. supply, which has prompted talk of fuel export curbs or a windfall tax on oil and gas producers. read more
#AbuDhabi, #Dubai bourses close lower; Borouge surges on debut | Reuters
Abu Dhabi, Dubai bourses close lower; Borouge surges on debut | Reuters
Bourses in the United Arab Emirates ended lower on Friday, as oil prices extended losses after OPEC+ increased production targets by slightly more than planned.
OPEC+, the Organization of the Petroleum Exporting Countries and allies, agreed on Thursday to boost output by 648,000 barrels per day (bpd) in July - or 0.7% of global demand - and a similar amount in August versus the initial plan to add 432,000 bpd a month over three months until September. read more
In Abu Dhabi, the index (.FTFADGI) declined by 0.2%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) dropping 1%, registering a third day of losses.
Shares in Borouge closed at 3 dirhams, more than 22% up from an initial public offering price of 2.45 dirhams per share, Refinitiv Eikon data showed.
Borouge had raised more than $2 billion after demand for its IPO topped $83.4 billion, making it the biggest IPO yet in Abu Dhabi.
The Abu Dhabi index posted a weekly gain of 1.5%.
Dubai's main market index (.DFMGI), closed 0.3% lower, weighed down by a 1.2% fall in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Elsewhere, blue-chip developer Emaar Properties (EMAR.DU) slipped 0.3% despite S&P Global's upgrading its rating to 'BBB-' on strong performance.
The Dubai index posted weekly gain of 2.7%, ending four weeks of losses.
Bourses in the United Arab Emirates ended lower on Friday, as oil prices extended losses after OPEC+ increased production targets by slightly more than planned.
OPEC+, the Organization of the Petroleum Exporting Countries and allies, agreed on Thursday to boost output by 648,000 barrels per day (bpd) in July - or 0.7% of global demand - and a similar amount in August versus the initial plan to add 432,000 bpd a month over three months until September. read more
In Abu Dhabi, the index (.FTFADGI) declined by 0.2%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) dropping 1%, registering a third day of losses.
Shares in Borouge closed at 3 dirhams, more than 22% up from an initial public offering price of 2.45 dirhams per share, Refinitiv Eikon data showed.
Borouge had raised more than $2 billion after demand for its IPO topped $83.4 billion, making it the biggest IPO yet in Abu Dhabi.
The Abu Dhabi index posted a weekly gain of 1.5%.
Dubai's main market index (.DFMGI), closed 0.3% lower, weighed down by a 1.2% fall in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Elsewhere, blue-chip developer Emaar Properties (EMAR.DU) slipped 0.3% despite S&P Global's upgrading its rating to 'BBB-' on strong performance.
The Dubai index posted weekly gain of 2.7%, ending four weeks of losses.
South Korean companies to build $1 bln green hydrogen plant in #UAE | Reuters
South Korean companies to build $1 bln green hydrogen plant in UAE | Reuters
Three South Korean companies have signed an agreement to build a $1 billion green hydrogen and ammonia production plant in the United Arab Emirates, their UAE partner said on Friday.
Korea Electric Power Corporation (015760.KS), Samsung C&T Corporation (028260.KS) and Korea Western Power, alongside the UAE's Petrolyn Chemie, will build a plant that can produce up to 200,000 tonnes of green ammonia a year, Petrolyn said.
Green hydrogen - obtained by passing renewably-produced electricity through water to split the element from oxygen - has been touted by some as a key fuel for energy users looking to cut greenhouse gas emissions.
Both the UAE and neighbour Saudi Arabia have set out ambitious plans for hydrogen, amid a deepening economic rivalry between them.
The plant will be built in two phases in the KIZAD Industrial Area near the capital Abu Dhabi, with the first phase producing 35,000 tonnes before the second phase takes the project to full scale.
"Participating companies will achieve their respective Net-Zero vision through the Project. They are expected to...expand the drive of future growth in the global green hydrogen market by expanded reproduction of their future business model," Petrolyn said.
Three South Korean companies have signed an agreement to build a $1 billion green hydrogen and ammonia production plant in the United Arab Emirates, their UAE partner said on Friday.
Korea Electric Power Corporation (015760.KS), Samsung C&T Corporation (028260.KS) and Korea Western Power, alongside the UAE's Petrolyn Chemie, will build a plant that can produce up to 200,000 tonnes of green ammonia a year, Petrolyn said.
Green hydrogen - obtained by passing renewably-produced electricity through water to split the element from oxygen - has been touted by some as a key fuel for energy users looking to cut greenhouse gas emissions.
Both the UAE and neighbour Saudi Arabia have set out ambitious plans for hydrogen, amid a deepening economic rivalry between them.
The plant will be built in two phases in the KIZAD Industrial Area near the capital Abu Dhabi, with the first phase producing 35,000 tonnes before the second phase takes the project to full scale.
"Participating companies will achieve their respective Net-Zero vision through the Project. They are expected to...expand the drive of future growth in the global green hydrogen market by expanded reproduction of their future business model," Petrolyn said.
Inflation Doesn’t Stop #UAE’s Biggest Business Upswing This Year - Bloomberg
Inflation Doesn’t Stop UAE’s Biggest Business Upswing This Year - Bloomberg
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Business conditions in the United Arab Emirates improved in May to the strongest this year even as companies came under pressure from inflation and largely chose to absorb higher costs.
Output in the country’s non-oil economy increased at the fastest pace since last December and employment saw a renewed increase, according to a survey published by S&P Global on Friday. Its UAE Purchasing Managers’ Index rose to 55.6, from 54.6 in April, remaining above the 50 mark that separates expansion from contraction.
Despite the pickup, inflationary risks emerged more prominently, with business costs rising to the highest level in more than three years, as disruptions to supply chains around the world and Russia’s invasion of Ukraine stoke prices.
“Following the global trend, the main headwind to the non-oil sector in May was inflation,” said David Owen, an economist at S&P Global. “PMI data suggest that companies are choosing to absorb extra costs rather than pass them onto customers, but this is unlikely to continue indefinitely.”
The oil-rich Gulf nation isn’t immune to a recent run-up in global costs even as booming crude prices continue to power its economy. The government has already responded by increasing local fuel prices by more than 50% since the beginning of the year and capping the costs of essential food items.
Still, inflation in the UAE is expected to be at 3.7% this year before sliding to 2.8% in 2023, among the lowest levels globally, according to the International Monetary Fund.
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Business conditions in the United Arab Emirates improved in May to the strongest this year even as companies came under pressure from inflation and largely chose to absorb higher costs.
Output in the country’s non-oil economy increased at the fastest pace since last December and employment saw a renewed increase, according to a survey published by S&P Global on Friday. Its UAE Purchasing Managers’ Index rose to 55.6, from 54.6 in April, remaining above the 50 mark that separates expansion from contraction.
Despite the pickup, inflationary risks emerged more prominently, with business costs rising to the highest level in more than three years, as disruptions to supply chains around the world and Russia’s invasion of Ukraine stoke prices.
“Following the global trend, the main headwind to the non-oil sector in May was inflation,” said David Owen, an economist at S&P Global. “PMI data suggest that companies are choosing to absorb extra costs rather than pass them onto customers, but this is unlikely to continue indefinitely.”
The oil-rich Gulf nation isn’t immune to a recent run-up in global costs even as booming crude prices continue to power its economy. The government has already responded by increasing local fuel prices by more than 50% since the beginning of the year and capping the costs of essential food items.
Still, inflation in the UAE is expected to be at 3.7% this year before sliding to 2.8% in 2023, among the lowest levels globally, according to the International Monetary Fund.
Borouge Shares Soar in Debut After Staging #AbuDhabi’s Biggest IPO - Bloomberg
Borouge Shares Soar in Debut After Staging Abu Dhabi’s Biggest IPO - Bloomberg
Borouge, a chemicals joint venture between the United Arab Emirates’ main oil company and Borealis AG, surged in its trading debut after raising $2 billion in Abu Dhabi’s biggest listing.
The shares rose as much as 20% to 2.95 dirhams on Friday, valuing Borouge at just over 88 billion dirhams ($24 billion). The shares were priced at 2.45 dirhams each.
The IPO attracted $83 billion of orders in the latest sign of strong demand for listings in the region. It drew interest from the likes of BlackRock Inc. and Fidelity, Bloomberg reported last week. Seven cornerstone investors agreed to subscribe for $570 million worth of shares, including Gautam Adani, Asia’s richest man.
Listings on Gulf stock exchanges are on track for their best-ever first half as high oil prices and broad economic reforms draw investors to the region. 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.
In addition to Borouge, Abu Dhabi National Oil Co. has sold stakes in two units over the last year -- Adnoc Drilling and fertilizer firm Fertiglobe. Shares in the drilling unit have risen 41% since listing, while Fertiglobe’s stock has doubled.
Abu Dhabi-based Borouge makes speciality plastics for manufacturing and consumer goods. It has said it will pay $975 million in dividend for the financial year 2022, rising to at least $1.3 billion for 2023.
At the offer price, the projected dividend for next year implies a yield of 6.5%. That’s above the average of 2.7% for listed specialty chemical firms, according to data compiled by Bloomberg Intelligence.
Citigroup Inc., First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley were the joint global coordinators for the IPO.
Borouge, a chemicals joint venture between the United Arab Emirates’ main oil company and Borealis AG, surged in its trading debut after raising $2 billion in Abu Dhabi’s biggest listing.
The shares rose as much as 20% to 2.95 dirhams on Friday, valuing Borouge at just over 88 billion dirhams ($24 billion). The shares were priced at 2.45 dirhams each.
The IPO attracted $83 billion of orders in the latest sign of strong demand for listings in the region. It drew interest from the likes of BlackRock Inc. and Fidelity, Bloomberg reported last week. Seven cornerstone investors agreed to subscribe for $570 million worth of shares, including Gautam Adani, Asia’s richest man.
Listings on Gulf stock exchanges are on track for their best-ever first half as high oil prices and broad economic reforms draw investors to the region. 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.
In addition to Borouge, Abu Dhabi National Oil Co. has sold stakes in two units over the last year -- Adnoc Drilling and fertilizer firm Fertiglobe. Shares in the drilling unit have risen 41% since listing, while Fertiglobe’s stock has doubled.
Abu Dhabi-based Borouge makes speciality plastics for manufacturing and consumer goods. It has said it will pay $975 million in dividend for the financial year 2022, rising to at least $1.3 billion for 2023.
At the offer price, the projected dividend for next year implies a yield of 6.5%. That’s above the average of 2.7% for listed specialty chemical firms, according to data compiled by Bloomberg Intelligence.
Citigroup Inc., First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley were the joint global coordinators for the IPO.
Oil slips after OPEC+ hike, tight supply limits loss | Reuters
Oil slips after OPEC+ hike, tight supply limits loss | Reuters
Oil slipped on Friday after OPEC+ decided to increase production targets by slightly more than planned, although tight global supply and rising demand as China eases COVID restrictions limited the decline.
The Organization of the Petroleum Exporting Countries and allies, or OPEC+, on Thursday increased their output boost to 648,000 barrels per day (bpd) in July and August rather than 432,000 bpd as previously agreed. read more
Brent crude fell 85 cents, or 0.7%, to $116.76 a barrel by 0925 GMT, after rising $2 intra-day on Thursday. U.S. West Texas Intermediate (WTI) crude slipped 88 cents, or 0.8%, to $115.99.
"I believe it's just a technical move lower after yesterday's giant post-OPEC+ rally," said Jeffrey Halley of brokerage OANDA. "Holidays in China, Hong Kong, Taiwan and the UK are impacting trading volumes."
Oil slipped on Friday after OPEC+ decided to increase production targets by slightly more than planned, although tight global supply and rising demand as China eases COVID restrictions limited the decline.
The Organization of the Petroleum Exporting Countries and allies, or OPEC+, on Thursday increased their output boost to 648,000 barrels per day (bpd) in July and August rather than 432,000 bpd as previously agreed. read more
Brent crude fell 85 cents, or 0.7%, to $116.76 a barrel by 0925 GMT, after rising $2 intra-day on Thursday. U.S. West Texas Intermediate (WTI) crude slipped 88 cents, or 0.8%, to $115.99.
"I believe it's just a technical move lower after yesterday's giant post-OPEC+ rally," said Jeffrey Halley of brokerage OANDA. "Holidays in China, Hong Kong, Taiwan and the UK are impacting trading volumes."
Oil rises 1% as U.S. crude drawdown overshadows OPEC+ boost | Reuters
Oil rises 1% as U.S. crude drawdown overshadows OPEC+ boost | Reuters
Oil rose more than 1% on Thursday after U.S. crude inventories fell more than expected amid high demand for fuel, shrugging off OPEC+'s agreement to boost crude output to compensate for a drop in Russian production.
Prices were also supported by the European Union's sixth package of sanctions against Russia, which will include an immediate ban on new insurance contracts for ships carrying Russian oil and a six month phase-out on existing contracts.
Brent futures settled $1.32, or 1.1%, higher at $117.61 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.61, or 1.4%, to $116.87.
U.S. crude oil and fuel stockpiles fell last week, as demand continued to outstrip supply, with commercial crude inventories drawing down even as more strategic reserves entered the market, government data showed.
Oil rose more than 1% on Thursday after U.S. crude inventories fell more than expected amid high demand for fuel, shrugging off OPEC+'s agreement to boost crude output to compensate for a drop in Russian production.
Prices were also supported by the European Union's sixth package of sanctions against Russia, which will include an immediate ban on new insurance contracts for ships carrying Russian oil and a six month phase-out on existing contracts.
Brent futures settled $1.32, or 1.1%, higher at $117.61 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.61, or 1.4%, to $116.87.
U.S. crude oil and fuel stockpiles fell last week, as demand continued to outstrip supply, with commercial crude inventories drawing down even as more strategic reserves entered the market, government data showed.
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