Oil slumps 6% to four-week low on recession worries, strong dollar | Reuters
Oil prices tumbled about 6% to a four-week low on Friday on worries that interest rate hikes by major central banks could slow the global economy and cut demand for energy.
Also pressuring prices, the U.S. dollar this week rose to its highest level since December 2002 against a basket of currencies, making oil more expensive for buyers using other currencies.
Brent futures fell $6.69, or 5.6%, to settle at $113.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $8.03, or 6.8%, to settle at $109.56.
That was the lowest close for Brent since May 20 and the lowest for WTI since May 12. It was also the biggest daily percentage decline for Brent since early May and the biggest for WTI since late March.
For the week, Brent futures declined for the first time in five weeks, while WTI dropped for the first time in eight weeks.
There will be no U.S. trading on Monday, the Juneteenth holiday.
Friday 17 June 2022
Oil drops on recession concerns, heading for weekly fall | Reuters
Oil drops on recession concerns, heading for weekly fall | Reuters
Oil prices fell almost 2% on Friday and were on track for a weekly decline as interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.
Brent crude was down $2.19, or 1.8%, at $117.62 a barrel at 1334 GMT, and U.S. West Texas Intermediate (WTI) crude fell $2.56, or 2.2%, to $115.03.
Brent was on track for its first weekly dip in five weeks, and U.S. crude for its first decline in eight weeks, in line with a fall in equity markets amid fears of a possible recession as several central banks delivered big rate hikes. read more
Oil prices fell almost 2% on Friday and were on track for a weekly decline as interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.
Brent crude was down $2.19, or 1.8%, at $117.62 a barrel at 1334 GMT, and U.S. West Texas Intermediate (WTI) crude fell $2.56, or 2.2%, to $115.03.
Brent was on track for its first weekly dip in five weeks, and U.S. crude for its first decline in eight weeks, in line with a fall in equity markets amid fears of a possible recession as several central banks delivered big rate hikes. read more
#UAE index falls on concerns of economic growth | Reuters
UAE index falls on concerns of economic growth | Reuters
Bourses in United Arab Emirates closed lower on Friday, tracking global equities as aggressive interest rate hikes around the world made investors nervous about global economic growth.
The Central Bank of the United Arab Emirates said on Wednesday it increased its base rate by three quarters of a percentage point to 3%, moving in parallel with the U.S. Federal Reserve's biggest hike since 1994 as its currency is pegged to the dollar.
In Abu Dhabi, the index (.FTFADGI) declined 0.6% as the country's largest lender First Abu Dhabi Bank (FAB.AD) dropped 1.1%, while Aldar Properties (ALDAR.AD) slipped dipped 2.5%.
However, Abu Dhabi National Hotel (ADNH.AD) jumped 2.8% after the Abu Dhabi Securities Exchange implemented increase in company's foreign ownership limit to 100%.
The Abu Dhabi stock market declined as the atmosphere among investors turns to caution while oil prices recorded some volatility. The market could see additional decreases under these conditions, said Eman AlAyyaf, CEO of EA Trading.
Dubai's main stock index (.DFMGI) slipped 0.6%, pressured by a 2.8% fall in blue-chip developer Emaar Properties (EMAR.DU) and 1.9% decrease in budget carrier Air Arabia (AIRA.DU).
Amongh other stock, Shuaa Capital (SHUA.DU) lost 3.1%, its biggest intraday fall since November 11, 2021, after the firm replaced CFO Joachim Mueller with Gunshyam kripa.
Bourses in United Arab Emirates closed lower on Friday, tracking global equities as aggressive interest rate hikes around the world made investors nervous about global economic growth.
The Central Bank of the United Arab Emirates said on Wednesday it increased its base rate by three quarters of a percentage point to 3%, moving in parallel with the U.S. Federal Reserve's biggest hike since 1994 as its currency is pegged to the dollar.
In Abu Dhabi, the index (.FTFADGI) declined 0.6% as the country's largest lender First Abu Dhabi Bank (FAB.AD) dropped 1.1%, while Aldar Properties (ALDAR.AD) slipped dipped 2.5%.
However, Abu Dhabi National Hotel (ADNH.AD) jumped 2.8% after the Abu Dhabi Securities Exchange implemented increase in company's foreign ownership limit to 100%.
The Abu Dhabi stock market declined as the atmosphere among investors turns to caution while oil prices recorded some volatility. The market could see additional decreases under these conditions, said Eman AlAyyaf, CEO of EA Trading.
Dubai's main stock index (.DFMGI) slipped 0.6%, pressured by a 2.8% fall in blue-chip developer Emaar Properties (EMAR.DU) and 1.9% decrease in budget carrier Air Arabia (AIRA.DU).
Amongh other stock, Shuaa Capital (SHUA.DU) lost 3.1%, its biggest intraday fall since November 11, 2021, after the firm replaced CFO Joachim Mueller with Gunshyam kripa.
#Qatar Air Posts Historic Profit After Flying During Crisis - Bloomberg
Qatar Air Posts Historic Profit After Flying During Crisis - Bloomberg
Qatar Airways posted a record annual profit that it said is the highest achieved by an airline since the coronavirus hit, after restoring flights while most other carriers were still operating very limited timetables.
Net income reached a record 5.6 billion riyals ($1.53 billion) in the year through March, rebounding from a loss of almost 15 billion riyals a year earlier, Qatar Airways said in a statement Thursday.
Revenue rebounded 78% to reach 52.3 billion riyals, some 2% higher than in the last full pre-pandemic year.
State-owned Qatar Airways was unique among large, long-distance carriers in continuing to operate an extensive route network through the pandemic. The number of destinations served surpassed 140 in the period as the company quickly resumed links with key cities across Europe, Africa, the Middle East and Asia, while expanding in markets including the U.S., Brazil, Canada and Nigeria.
“This profit is not only a record for Qatar Airways Group, but also a record among all other airlines that have published financial results for this financial year worldwide,” the Doha-based company said, crediting the result to “its agility and successful strategy.”
The 25-year-old carrier, led by Chief Executive Akbar Al Baker, said the decision to grow flights while rivals were retrenching was based on more-accurate forecasting of the global market recovery, and has helped the airline build up customer and trade loyalty.
While Qatar Airways saw traveller numbers rebound from the previous year, the cargo boom spurred by the pandemic was a major profit driver, with the carrier’s dedicated freighter fleet augmented by high volumes of belly capacity on the network of passenger-only routes.
Cargo operations generated 23 billion riyals of revenue, almost the same as passenger ticket sales.
Qatar Airways posted a record annual profit that it said is the highest achieved by an airline since the coronavirus hit, after restoring flights while most other carriers were still operating very limited timetables.
Net income reached a record 5.6 billion riyals ($1.53 billion) in the year through March, rebounding from a loss of almost 15 billion riyals a year earlier, Qatar Airways said in a statement Thursday.
Revenue rebounded 78% to reach 52.3 billion riyals, some 2% higher than in the last full pre-pandemic year.
State-owned Qatar Airways was unique among large, long-distance carriers in continuing to operate an extensive route network through the pandemic. The number of destinations served surpassed 140 in the period as the company quickly resumed links with key cities across Europe, Africa, the Middle East and Asia, while expanding in markets including the U.S., Brazil, Canada and Nigeria.
“This profit is not only a record for Qatar Airways Group, but also a record among all other airlines that have published financial results for this financial year worldwide,” the Doha-based company said, crediting the result to “its agility and successful strategy.”
The 25-year-old carrier, led by Chief Executive Akbar Al Baker, said the decision to grow flights while rivals were retrenching was based on more-accurate forecasting of the global market recovery, and has helped the airline build up customer and trade loyalty.
While Qatar Airways saw traveller numbers rebound from the previous year, the cargo boom spurred by the pandemic was a major profit driver, with the carrier’s dedicated freighter fleet augmented by high volumes of belly capacity on the network of passenger-only routes.
Cargo operations generated 23 billion riyals of revenue, almost the same as passenger ticket sales.
#Dubai’s Shuaa Replaces Finance Chief Days After Naming New CEO - Bloomberg
Dubai’s Shuaa Replaces Finance Chief Days After Naming New CEO - Bloomberg
Shuaa Capital PSC, which oversees nearly $14 billion in assets, has replaced its finance director two days after the Dubai-based firm named a new chief executive officer.
Group Chief Financial Officer Joachim Mueller will depart after almost four years in the role, the company said in a statement on Friday, confirming a Bloomberg News report. Gunshyam Kripa, who has been with the firm for about six years -- most recently as senior vice president of financial control -- has been named as his successor.
Head of risk management Shabana Osmani, who worked at Morgan Stanley for seven years before joining Shuaa in July, is also leaving, people familiar with the matter told Bloomberg earlier.
The firm has cut jobs across departments over the past few weeks, the people said, asking not to be identified as the matter is private. It wasn’t immediately clear how many people have left. Representatives for Shuaa didn’t immediately respond to requests for comment.
“We have hired more than 20 financial services professionals since the beginning of the year and plans to hire more,” the company said in the statement. “This process also includes certain redundancies.”
Earlier this week, Jassim Alseddiqi, Shuaa’s largest shareholder with a 29.9% stake, stepped down as CEO to take on a new role as managing director. He was replaced by Fawad Tariq Khan, who will retain his current position as head of investment banking.
Shuaa Capital PSC, which oversees nearly $14 billion in assets, has replaced its finance director two days after the Dubai-based firm named a new chief executive officer.
Group Chief Financial Officer Joachim Mueller will depart after almost four years in the role, the company said in a statement on Friday, confirming a Bloomberg News report. Gunshyam Kripa, who has been with the firm for about six years -- most recently as senior vice president of financial control -- has been named as his successor.
Head of risk management Shabana Osmani, who worked at Morgan Stanley for seven years before joining Shuaa in July, is also leaving, people familiar with the matter told Bloomberg earlier.
The firm has cut jobs across departments over the past few weeks, the people said, asking not to be identified as the matter is private. It wasn’t immediately clear how many people have left. Representatives for Shuaa didn’t immediately respond to requests for comment.
“We have hired more than 20 financial services professionals since the beginning of the year and plans to hire more,” the company said in the statement. “This process also includes certain redundancies.”
Earlier this week, Jassim Alseddiqi, Shuaa’s largest shareholder with a 29.9% stake, stepped down as CEO to take on a new role as managing director. He was replaced by Fawad Tariq Khan, who will retain his current position as head of investment banking.
Oil rises on tight supply though interest rate hikes weigh | Reuters
Oil rises on tight supply though interest rate hikes weigh | Reuters
Oil rose on Friday, supported by supply tightness and new sanctions on Iran, but prices were on track for a weekly decline amid interest rate hikes from major central banks that fuelled worries about a sharp economic slowdown.
Brent crude was up $1.13, or 0.9%, to $120.94 a barrel at 1016 GMT, and U.S. West Texas Intermediate (WTI) crude had gained $1.03, or 0.9%, to $118.62.
Both contracts had fallen by more than $1 earlier in the session.
Brent was on track for its first weekly dip in five weeks, and U.S. crude for its first decline in eight weeks, in line with a fall in equity markets amid fears of a possible recession as central banks joined a chorus of outsized rate hikes. read more
"The influence of the macro environment has started to take over from oil specific fundamentals in recent days," said Investec's head of commodities Callum Macpherson.
Oil rose on Friday, supported by supply tightness and new sanctions on Iran, but prices were on track for a weekly decline amid interest rate hikes from major central banks that fuelled worries about a sharp economic slowdown.
Brent crude was up $1.13, or 0.9%, to $120.94 a barrel at 1016 GMT, and U.S. West Texas Intermediate (WTI) crude had gained $1.03, or 0.9%, to $118.62.
Both contracts had fallen by more than $1 earlier in the session.
Brent was on track for its first weekly dip in five weeks, and U.S. crude for its first decline in eight weeks, in line with a fall in equity markets amid fears of a possible recession as central banks joined a chorus of outsized rate hikes. read more
"The influence of the macro environment has started to take over from oil specific fundamentals in recent days," said Investec's head of commodities Callum Macpherson.
China’s CNPC, Sinopec in Talks With #Qatar for Gas Field Stakes, Reuters Says - Bloomberg
China’s CNPC, Sinopec in Talks With Qatar for Gas Field Stakes, Reuters Says - Bloomberg
China’s energy majors are in discussions to invest billions in Qatar’s massive liquefied natural gas expansion project, according to a person familiar with the situation.
State-owned China National Petroleum Corp. and Sinopec are expected to invest in Qatar’s $29 billion North Field East project, said the person, who asked not to be identified discussing a private matter. The companies are looking to procure LNG under long-term contracts, two people familiar with the matter said. Reuters earlier reported the news.
Spokespeople for CNPC and Sinopec weren’t immediately available to comment. State-energy producer Qatar Energy didn’t respond to a request for comment outside of normal business hours.
LNG importers are rushing to secure supply deals as a global shortage is expected to persist for much of the decade amid Europe’s moves to curb Russian pipeline gas. Spot prices for gas in Asia and Europe surged to a record soon after Russia invaded Ukraine, exacerbating a supply crunch for the power plant and heating fuel.
China’s energy majors are in discussions to invest billions in Qatar’s massive liquefied natural gas expansion project, according to a person familiar with the situation.
State-owned China National Petroleum Corp. and Sinopec are expected to invest in Qatar’s $29 billion North Field East project, said the person, who asked not to be identified discussing a private matter. The companies are looking to procure LNG under long-term contracts, two people familiar with the matter said. Reuters earlier reported the news.
Spokespeople for CNPC and Sinopec weren’t immediately available to comment. State-energy producer Qatar Energy didn’t respond to a request for comment outside of normal business hours.
LNG importers are rushing to secure supply deals as a global shortage is expected to persist for much of the decade amid Europe’s moves to curb Russian pipeline gas. Spot prices for gas in Asia and Europe surged to a record soon after Russia invaded Ukraine, exacerbating a supply crunch for the power plant and heating fuel.