A New Middle East Geography Emerges for Biden: Balance of Power - Bloomberg
Fence-mending between Middle Eastern rivals offers an opportunity for Joe Biden when he travels there next month to tackle an issue much closer to home. But there are risks, too.
With Russia’s invasion of Ukraine driving global crude prices higher, the US President is seeking to repair ties with Saudi Arabia after shunning the world’s largest oil producer over its human rights record. Top US ally Israel meanwhile sees the Biden trip as a way to forge regional bonds — including with Riyadh.
US rapprochement with Crown Prince Mohammed Bin Salman, whose nation Biden once vowed to make a “pariah” over the 2018 murder of Saudi critic Jamal Khashoggi, may lead to more Saudi oil on the global market after months of US lobbying, and allow Biden to cast his visit as a political success.
Lower prices for oil (though that is not a given even if the Saudis do increase output) would undercut a key source of income for Russia’s war and help reduce the pain for Americans at the gas pump in the run up to the November midterm elections, with Biden’s Democrats on the back foot domestically already with voters.
Oil ticks higher on strong demand, tight supply | Reuters
Oil prices edged up on Tuesday on high summer fuel demand while supplies remained tight because of sanctions on Russian oil after its invasion of Ukraine.
Brent crude futures settled 52 cents, or 0.5%, higher at $114.65 a barrel. The U.S. West Texas Intermediate (WTI) crude contract for July expired on Tuesday, closing at $110.65, with a gain of $1.09, or 1%. The more active August contract was up $1.53 at $109.52.
Both benchmarks posted a weekly loss last week. For WTI it was the first weekly loss in eight weeks, for Brent the first in five.
"You have some people jumping in here to buy the bottom or what they hope is the bottom of the market," said Robert Yawger, director of energy futures at Mizuho in New York.
The 50-day simple moving average of U.S. front month futures touched its highest since 2008, and Brent's touched its highest since 2013.
ADX launches FADX 15 Futures, the exchange’s first index derivatives
The Abu Dhabi Securities Exchange (ADX) has launched FADX 15 futures contracts trading on its derivatives platform. The futures, based on the FTSE ADX 15 (FADX 15) Index, are the first index derivatives to be listed on the ADX as the exchange accelerates efforts to bolster market liquidity and attract more global investors.
FADX 15 futures are cash-settled contracts that will replicate the price performance of the benchmark FADX 15 index, which comprises the most liquid and the largest 15 companies listed on the ADX main market. Each FADX 15 Index futures contract is equivalent to the dirham (AED) value of the FADX 15 index.
Launched in March 2022 with the aim of supporting the derivatives market, Exchange Traded Funds, and other index tracking products, the FADX 15 selects companies by free float adjusted market capitalization and median trading value.
The introduction of FADX 15 futures will provide a new way for investors to trade equities listed on ADX’s main market, facilitating risk management for portfolio investors during periods of market volatility.
Exxon joins oil majors in Qatar's mega-LNG expansion project | Reuters
QatarEnergy on Tuesday signed a deal with Exxon Mobil Corp (XOM.N) for the Gulf state's North Field East expansion, the world's largest liquefied natural gas (LNG) project, following agreements with TotalEnergies , Eni (ENI.MI) and ConocoPhillips (COP.N).
Qatar is partnering with international companies in the first and largest phase of the nearly $30 billion expansion that will boost Qatar's position as the world's top LNG exporter. read more
The companies will form a joint venture and Exxon will hold a 25% stake in that, QatarEnergy CEO Saad al-Kaabi said.
The arrangement implies a 6.25% stake for Exxon in the North Field East expansion, Kaabi said.
Exxon said in a statement later on Tuesday the joint venture will hold a 25% interest in the 32 million tonnes per annum (mtpa) project, which is equivalent to one 8 mtpa LNG train for Exxon.
Oil prices climb $2 on strong demand, tight supply | Reuters
Oil prices rose almost $2 on Tuesday on high summer fuel demand while supplies remain tight because of sanctions on Russian oil after its invasion of Ukraine.
Brent crude rose $1.80, or 1.6%, to $115.93 a barrel by 1209 GMT.
The U.S. West Texas Intermediate (WTI) crude contract for July, which expires later on Tuesday, rose $2.26, or 2.1%, to $111.82. The more active WTI contract for August was up $2.37 at $110.36.
UBS analyst Giovanni Staunovo said that despite concerns over economic growth, latest data on flight activity and mobility on U.S. roads continues to show solid oil demand.
"We expect oil demand to improve further, benefiting from the reopening of China, summer travel in the northern hemisphere and the weather getting warmer in the Middle East. With supply growth lagging demand growth over the coming months, we continue to expect higher oil prices," he said.
Most Gulf bourses rebound but investors cautious on growth fears | Reuters
Stock markets in the Gulf ended higher on Tuesday, pausing for breath after a steep sell-off, but major central banks' rate hike plans and global recession risks kept investors cautious.
Saudi Arabia's benchmark index (.TASI) advanced 2.6%, its biggest intraday gain in more than a year, buoyed by a 3.4% jump in Al Rajhi Bank (1120.SE) and a 1.6% increase in oil giant Saudi Aramco (2222.SE).
The kingdom's April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April, data from the Joint Organizations Data Initiative (JODI) showed on Monday.
Dubai's main share index (.DFMGI) climbed 1.7%, after three sessions of losses, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) closing 2.3% higher.
Investors moved to buy the dip, creating a rebound after a month of price corrections, said Fadi Reyad, market analyst at CAPEX.com.
"Markets could see a small period of calm but they remain exposed to the uncertainties around inflation and economic growth."
In Abu Dhabi, stocks (.FTFADGI) finished up 1.2%, led by a 1.2% rise in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).
Oil prices, a key influence on the Gulf's financial markets, rose almost $2 on high summer fuel demand, while supplies remain tight because of sanctions on Russian oil after its invasion of Ukraine.
The Qatari index (.QSI) edged up 0.1%, snapping a four-day losing streak, helped by a 1% gain in petrochemical maker Industries Qatar (IQCD.QA).
According to Reyad, the positive performance could be short-lived as natural gas prices continue to decline.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.2% higher, with top lender Commercial International Bank (COMI.CA) putting on 0.9%.
Egypt and Saudi Arabia have signed 14 agreements valued at $7.7 billion during a visit to Cairo by Saudi Arabia's de facto ruler Crown Prince Mohammed bin Salman, Egypt's General Authority for Investment and Free Zones said in a statement on Tuesday. read more
Saudi Arabia, Egypt Sign 14 Investment Deals Worth $7.7 Billion - Bloomberg
Egypt and Saudi Arabia signed 14 investment deals valued at $7.7 billion, the Egyptian state-run Middle East News Agency reported Tuesday, as the oil-rich kingdom’s de facto ruler visits the North African nation.
The announcement was made by Saudi Arabia’s commerce minister during a meeting of the Egyptian-Saudi Business Council. The agreements cover a range of sectors, including renewable energy, green hydrogen, pharmaceuticals and e-commerce, MENA said.
Kuwait State Oil Firm Says There’s $30 War Premium on Oil Prices - Bloomberg
The chief executive of Kuwait’s state oil company said a $30 per barrel “war premium” has been built into the cost of oil.
“I see a war premium of about $30 in the price right now,” Kuwait Petroleum Corp.’s Sheikh Nawaf Al-Sabah told Bloomberg TV on the sidelines of the Qatar Economic forum on Tuesday. There’s little sign of demand destruction in oil markets because of high prices, although growth is slowing.
Oil prices have soared almost 50% this year to around $110 a barrel, mainly because of the fallout from Russia’s invasion of Ukraine. Exxon Mobil Corp. said Tuesday in Doha oil markets may remain tight for three to five years largely due to under-investment since the pandemic began.
Kuwait Petroleum’s CEO also said European buyers are asking about more refined oil from the country, partly in anticipation of its Al Zour refinery coming fully onstream. “We’re getting more calls for products,” he said. “By the end of the year, we’ll have about 615,000 barrels of oil a day being converted into mostly diesel and very low sulphur fuel oil.”
Gulf bourses rebound from selloff, follow Asia higher | Reuters
Most stock markets in the Gulf rose on Tuesday, rebounding from a recent selloff, with the Qatari index on track to snap four sessions of losses.
The markets also followed Asian shares higher. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 1.3%, edging up from a more than five-week low and set for its best day in around two weeks.
Saudi Arabia's benchmark index (.TASI) gained 1.9%, led by a 2.4% increase in Al Rajhi Bank (1120.SE) and a 2.7% leap in the country's biggest lender, Saudi National Bank (1180.SE).
The kingdom's April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April, data from the Joint Organizations Data Initiative showed on Monday.
Dubai's main share index (.DFMGI) advanced 1.6%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) rising 2.7% and Emirates NBD Bank (ENBD.DU) gaining 1.9%.
In Abu Dhabi, the index (.FTFADGI) added 0.6%.
State firms in the United Arab Emirates will allocate 110 billion dirhams ($30 billion) in potential purchase agreements for local manufacturers, the minister of industry and advanced technology said on Tuesday.
The Qatari index (.QSI) climbed 1.1%, on track to snap a four-day losing streak. Most stocks were in positive territory, including Industries Qatar (IQCD.QA), which was up 1.8%.
Oil prices, a key influence on the Gulf's financial markets, rose, clawing back more of last week's losses as investors focused on tight supplies of crude and fuel products rather than concerns about a recession dampening future demand.
Oil prices climb on supply and demand fundamentals | Reuters
Oil prices rose on Tuesday on high summer fuel demand while supplies remain tight because of sanctions on Russian oil after its invasion of Ukraine.
Brent crude rose $1.61, or 1.4%, to $115.74 a barrel by 0825 GMT.
U.S. West Texas Intermediate (WTI) crude for July, which expires later on Tuesday, rose $2.29, or 2.1%, to $111.85. The more-active WTI contract for August was up $2.48 at $110.47 a barrel.
UBS analyst Giovanni Staunovo said that despite concerns over economic growth, latest data on flight activity and mobility on U.S. roads continues to show solid oil demand.
