Wednesday 8 June 2022

All About the Prince at the Center of US-#Saudi Reset: QuickTake - Bloomberg

All About the Prince at the Center of US-Saudi Reset: QuickTake - Bloomberg


Not since the reign of the country’s founder, Abdulaziz Al Saud, has so much power been concentrated in one man’s hands in Saudi Arabia. Crown Prince Mohammed bin Salman isn’t king, yet. But the 36-year-old royal essentially runs the country for his father, King Salman bin Abdulaziz, who is 86. The prince leapfrogged a generation of older uncles and cousins to become heir to the throne in one of the world’s last remaining absolute monarchies. He’s overseen changes that have shaken the kingdom to its core, loosening the religious restrictions that shaped the conservative Islamic society for decades. He’s also attempted to reduce the crude exporter’s dependence on oil and redefine its place in the world -- pushing for development in new sectors like tourism -- while increasing political repression. His supporters say his bold ambition and iron fist is what’s needed to salvage an unsustainable economy. His critics say he’s dictatorial, power-hungry and reckless.

The Situation
When Joe Biden took office as US president in 2021, after calling Saudi Arabia a “pariah” during his campaign, he avoided dealing with Prince Mohammed, often dubbed MBS. The insistence by Biden’s administration that the president would only engage with his “counterpart,” King Salman, was perceived as insulting and counterproductive in Saudi Arabia, particularly given MBS’s all-encompassing role and the strong probability that he’ll eventually become king. Since Russia’s invasion of Ukraine, rising oil prices have made gas more expensive at the pump, and put Biden under pressure to bring down inflation -- and to repair ties with Saudi Arabia, a swing producer that can ramp oil exports up or down. Saudi commentators have crowed at this turn of events, painting Saudi Arabia as an ascendant world power and mocking the US as an empire in decline. Any decision for Biden to speak to the prince is complicated by deep anti-Saudi sentiment in the US -- and by a US intelligence assessment that concluded MBS had likely approved an operation to capture or kill Washington Post columnist Jamal Khashoggi. A Saudi citizen who was critical of MBS’s government, Khashoggi was murdered by Saudi agents at the kingdom’s consulate in Istanbul in 2018. MBS has denied any involvement while accepting symbolic responsibility as the kingdom’s de facto ruler.

Oil Prices Are ‘Nowhere Near’ Peak Yet, Says Key OPEC Member UAE - Bloomberg

Oil Prices Are ‘Nowhere Near’ Peak Yet, Says Key OPEC Member UAE - Bloomberg


Oil prices are “nowhere near” their peak as an impending rebound in Chinese demand threatens to strain a global market already pinched by tight supplies, said key OPEC member the United Arab Emirates.

The comments serve as an acknowledgment that last week’s decision by the OPEC+ coalition to bolster output will give consumers little respite from the soaring cost of energy this summer. The Organization of Petroleum Exporting Countries is struggling to restore production as planned, with spare capacity confined to just a few members, the UAE minister conceded.

“With the pace of consumption we have, we are nowhere near the peak because China is not back yet,” Energy Minister Suhail Al-Mazrouei said at a conference on Wednesday in Jordan. “China will come with more consumption.”

Al-Mazrouei warned that without more investment across the globe, OPEC+ can’t guarantee sufficient oil supplies as demand fully recovers from the coronavirus pandemic. Prices can reach “unseen” levels if Russian oil and gas is completely taken off the market, he said.

Oil jumps to 13-week high on rising U.S. gasoline demand | Reuters

Oil jumps to 13-week high on rising U.S. gasoline demand | Reuters

Oil prices jumped over 2% to a 13-week high on Wednesday as U.S. demand for gasoline keeps rising despite record pump prices, while expectations that China's oil demand will increase faced growing supply concerns in several countries, including Iran.

Iran said it was removing two International Atomic Energy Agency surveillance cameras at a uranium enrichment facility as the board of the United Nations' nuclear watchdog passed a resolution criticizing Iran for failing to fully explain uranium traces at undeclared sites. read more

The move has raised tensions with the United States and other countries negotiating with Iran over its nuclear program, and will likely keep sanctions in place and Iranian oil out of the global market for longer. read more

Analysts have said a nuclear deal with Iran could add about 1 million barrels per day (bpd) of crude to world supply.

Brent futures rose $3.01, or 2.5%, to settle at $123.58 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.70, or 2.3%, to end at $122.11.

#UAE central bank expects real GDP growth to reach 4.2% next year - state news agency | Reuters

UAE central bank expects real GDP growth to reach 4.2% next year - state news agency | Reuters

The United Arab Emirates central bank said on Wednesday it expects real GDP growth to reach 4.2% next year, up from its earlier forecast of 3.3%, state news agency (WAM) reported.

The central bank had projected real GDP growth to reach 5.4% in 2022.

Oil prices advance despite U.S. inventory rise | Reuters

Oil prices advance despite U.S. inventory rise | Reuters

Oil prices rose on Wednesday, despite a likely rise in U.S. oil stocks, on the easing of Chinese COVID-19 related lockdowns and a possible strike by Norwegian oil workers.

Brent crude futures were up $1.19, or 1%, at $121.76 a barrel at 1325 GMT. U.S. West Texas Intermediate crude was at $120.37 a barrel, up 96 cents, or 0.8%.

"Despite the API report showing builds for crude and oil products, oil prices are higher, supported by expectation of China easing the COVID restrictions, translating in higher demand and imports this summer," UBS analyst Giovanni Staunovo said.

A number of Norwegian oil workers plan to strike from June 12 over pay, putting some crude output at risk of shutdown. read more

Egypt index outperforms regional peers; #Saudi, #AbuDhabi slip | Reuters

Egypt index outperforms regional peers; Saudi, Abu Dhabi slip | Reuters


Egypt's blue-chip index outperformed regional peers to close higher on Wednesday, while Saudi stocks slipped on weakness in the financial and petrochemical sectors.

Although Asian stocks strengthened overnight following Wall Street gains, market sentiment was volatile and European indexes were mostly down. read more

Dubai's main share index (.DFMGI) closed 0.7% higher, bolstered by a 0.8% rise in Emirates Integrated Telecommunications (DU.DU) and a 2.1% jump in budget airliner Air Arabia (AIRA.DU).

Blue-chip developer Emaar Properties (EMAR.DU) was the biggest boost with a 2.1% jump after Moody's changed the company's outlook to stable from negative.

Saudi Arabia's benchmark index (.TASI) lost 0.5%. Al Rajhi Bank (1120.SE) dropped 1.2% while Dr Sulaiman Al-Habib Medical Services (4013.SE) declined 1.9%.

Domestic fundamentals provided some support though.

The country's credit rating remains stable along with economic growth, said Daniel Takieddine, CEO MENA BDSwiss.

In Abu Dhabi, equities (.FTFADGI) slipped 0.3%, extending losses to a sixth straight session as Fertiglobe (FERTIGLOBE.AD) dropped more than 2%.

However, conglomerate International Holding Company (IHC.AD) edged up 0.2% on its unit IHC Food Holding's decision to acquire a 25% stake in Invictus Trading FZE.

The Abu Dhabi stock market remained volatile after recent price corrections despite stable local fundamentals and high oil prices as selling pressures came into play, Takieddine added.

Outside the Gulf, the Egypt index (.EGX30) surged 1.9% in its biggest intraday gain since July 13, with Commercial International Bank Egypt (COMI.CA) rising 1.6%.

Among other stocks, Egyptian investment bank EFG Hermes (HRHO.CA) climbed 4.6% after unit Vortex Energy on Tuesday announced an investment of about 222 million euros ($238.38 million) in integrated renewables group Ignis.

The Qatar index (.QSI) closed flat.

OPEC+ efforts to boost oil output 'not encouraging', #UAE minister says | Reuters

OPEC+ efforts to boost oil output 'not encouraging', UAE minister says | Reuters

Efforts by OPEC+ oil producers to boost output are "not encouraging", UAE energy minister Suhail al-Mazrouei said on Wednesday, noting the group was currently 2.6 million barrels per day short of its target.

"According to last month's report, we have seen the conformity (to output cuts) of the OPEC+ group and the conformity was more than 200%," Mazrouei told an energy conference in Jordan.

Conformity above 100% means a country is producing less than what it is supposed to be as OPEC+ looks to gradually remove its production curbs.

"The risk is when China is back," Mazrouei said in an apparent reference to Chinese demand.

Prospects for demand growth in China, which is relaxing lockdowns, have been buoying crude prices recently.

Alghanim Sons Automotive Company lists on Boursa #Kuwait

Alghanim Sons Automotive Company lists on Boursa Kuwait

Boursa Kuwait on June 7 saw the listing of Alghanim & Sons Automotive Company, marking a milestone as the first family-owned automotive firm to be listed on an exchange across the Gulf markets.

The company stated that the public offering, which took place a few days earlier, was oversubscribed about 11 times, mirroring investors’ trust, reflecting the high demand during the subscription process on 45% of the company’s shares.

The company also stated that the official listing on the Kuwait bourse stems from its sense of responsibility as a leading company in the region in general, and in Kuwait specifically, which aims to adopt the principles of transparency and governance. It also seeks to expand its scope of work, which will contribute to creating unique employment opportunities for youth, while deploying the company’s considerable capabilities and exceptional cadres that represent a further driving force enabling it to fulfil its stated objectives.

Most Gulf bourses rebound tracking rising oil prices | Reuters

Most Gulf bourses rebound tracking rising oil prices | Reuters

Major stock markets in the Gulf rebounded on Wednesday after oil prices drifted higher on expectations of solid demand and low inventories.

Brent crude futures for August had risen 21 cents, or 0.2%, to $120.79 a barrel by 0413 GMT after closing on Tuesday at the highest since May 31. read more

Among global equities, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.9%, narrowing from morning gains but recouping most of its losses in the previous session, while Japan's Nikkei 225 (.N225) index was up 0.8%. read more

Dubai's main share index (.DFMGI) rose 1%, bolstered by a 2.3% jump in the blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% hike in the country's top lender Emirates NBD (ENBD.DU).

Saudi Arabia's benchmark index (.TASI) gained 0.3%, supported by banking and petrochemical stocks. The kingdom's largest lender Saudi National Bank (1180.SE) rose 0.8% and Riyad Bank (1010.SE) was up 1.1%.

Oil giant Saudi Aramco (2222.SE) rose 0.6% after registering a 1.2% fall in the previous session.

In Abu Dhabi, equities (.FTFADGI) gained 0.5% with the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 1.1%.

Among other stocks, conglomerate International Holding Company (IHC.AD) rose 0.1% on its unit IHC Food Holding's decision to acquire a 25% stake in Invictus trading FZE.

The Qatar index (.QSI) added 0.2% with Qatar Islamic Bank (QISB.QA) rising 1.2%.

Qatar has picked Exxon Mobil Corp , TotalEnergies SE (TTEF.PA), Royal Dutch Shell (SHEL.L) and ConocoPhillips (COP.N) as partners in the expansion of the world's largest liquefied natural gas (LNG) project, people with knowledge of the matter said on Tuesday. read more

The North Field expansion will boost Qatar's LNG output by 64% by 2027, strengthening its position as the world's top LNG exporter and help to guarantee long term supply of gas to Europe.


#Saudi Wealth Fund’s Savvy Gaming Takes Stake in Swedish Embracer - Bloomberg

Saudi Wealth Fund’s Savvy Gaming Takes Stake in Swedish Embracer - Bloomberg

Embracer Group AB has sold close to 100 million shares to Savvy Gaming Group through a directed share issue, making it the Swedish gaming firm’s second largest owner after founder and Chief Executive Lars Wingefors.

Savvy Gaming was started earlier this year by Saudi Arabia’s The Public Investment Fund with the intention to develop games locally and abroad. It bought a stake of 8.1% in Embracer for 10.3 billion kronor ($1.05 billion) for 103.47 kronor per share, representing a premium of 15% from the closing price on June 7.

Embracer last month said it was in talks with potential long-term strategic investors. A rapid acquisition pace has helped the company become one of Europe’s largest gaming firms, and it has said it is looking to move to Nasdaq Stockholm’s main market to help broaden the investor base.

The relationship with Savvy Gaming will let Embracer set up a regional hub in Saudi Arabia from which it will be able to make investments in the region, Embracer’s Wingefors said in a statement. The proceeds from the share issue will be used to continue the acquisition strategy.

Oil prices advance on low oil inventories expectation | Reuters

Oil prices advance on low oil inventories expectation | Reuters

Oil prices drifted higher on Wednesday, anticipating a report of low U.S. oil stocks, while expectations of solid demand in the upcoming driving season also lent support.

Brent crude futures for August were up 40 cents, or 0.3%, at $120.97 a barrel at 0649 GMT after closing on Tuesday at the highest since May 31.

U.S. West Texas Intermediate crude for July was at $120.01 a barrel, up 60 cents, or 0.5%, after reaching its highest settlement since March 8 in the previous session.

Analysts polled by Reuters expect data for last week to show another drawdown of U.S. crude inventories, although gasoline and distillates stocks could edge higher.

"The oil market is expected to remain tight as the supply side will continue to tell a story of low inventories. Crude oil inventories will likely post more draws as driving season and vacationing heats up," OANDA analyst Edward Moya said in a note.