Oil settles up but posts weekly decline on recession fears | Reuters
Oil prices settled up by more than $3 a barrel on Friday, supported by tight supply, but they notched their second weekly decline on concern that rising interest rates could push the world economy into recession.
Brent crude settled up $3.07, or 2.8%, at $113.12 a barrel by 12:10 p.m. EDT (1610 GMT). U.S. West Texas Intermediate (WTI) crude settled up $3.35, or 3.2%, at $107.62.
The U.S. Federal Reserve "was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data," said John Kilduff, partner at Again Capital LLC in New York.
On Thursday, Fed Chair Jerome Powell said the central bank's focus on curbing inflation was "unconditional", adding to fears about more interest rate hikes. read more
A survey on Friday showed U.S. consumer sentiment hit a record low in June even as the outlook for inflation improved slightly. read more
Russia's invasion of Ukraine exacerbated tight supplies this year just as demand has been recovering from the COVID pandemic, and oil came close to an all-time high of $147 reached in 2008.
Friday, 24 June 2022
#UAE bourses end mixed, extend weekly losses | Reuters
UAE bourses end mixed, extend weekly losses | Reuters
Stock markets in the United Arab Emirates were mixed on Friday, as hopes that declines in copper and other commodities could put a brake on runaway inflation eased economic growth concerns.
In Abu Dhabi, the equities (.FTFADGI) eased 0.1%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) losing 0.3%.
The index fell 2.3% in the week to June 24, down for a third week in a row.
The week has been marked by steep declines in commodities on concern that interest rate hikes will hurt growth, which is prompting traders to pare back some bets.
Copper, a bellwether for economic output with its wide range of industrial and construction uses, is heading for its steepest weekly drop since March 2020, and is down more than 7% for the week. It also fell in London and Shanghai on Friday.
The main share index (.DFMGI) in Dubai added 0.1%, helped by a 1.4% rise in blue-chip developer Emaar Properties (EMAR.DU).
However, the index registered a weekly loss of 1.8%, its third week of losses.
Oil prices, a key catalyst for the Gulf's financial markets, rose by more than $1 a barrel supported by tight supply, although crude was heading for a second weekly fall on concern that rising interest rates could push the world economy into recession.
Stock markets in the United Arab Emirates were mixed on Friday, as hopes that declines in copper and other commodities could put a brake on runaway inflation eased economic growth concerns.
In Abu Dhabi, the equities (.FTFADGI) eased 0.1%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) losing 0.3%.
The index fell 2.3% in the week to June 24, down for a third week in a row.
The week has been marked by steep declines in commodities on concern that interest rate hikes will hurt growth, which is prompting traders to pare back some bets.
Copper, a bellwether for economic output with its wide range of industrial and construction uses, is heading for its steepest weekly drop since March 2020, and is down more than 7% for the week. It also fell in London and Shanghai on Friday.
The main share index (.DFMGI) in Dubai added 0.1%, helped by a 1.4% rise in blue-chip developer Emaar Properties (EMAR.DU).
However, the index registered a weekly loss of 1.8%, its third week of losses.
Oil prices, a key catalyst for the Gulf's financial markets, rose by more than $1 a barrel supported by tight supply, although crude was heading for a second weekly fall on concern that rising interest rates could push the world economy into recession.
#UAE-based Lamprell receives potential cash offer for share capital
UAE-based Lamprell receives potential cash offer for share capital
The board of directors of UAE-based oil rig builder Lamprell Plc said it has received a potential cash offer from a shareholder, to acquire the entire issued and to be issued share capital of Lamprell, even as it seeks to urgently resolve severe liquidity concerns.
In a disclosure on the London Stock Exchange (LSE) where it is listed, Lamprell said its board is considering the possible non-binding indicative cash offer from Blofeld, which owns a 25.06% shareholding, given the company's funding requirements of $75 million over the next two months.
Blofeld's proposal in respect of the possible offer "is at a very significant discount to the prevailing share price and any acceptable offer would need to include an interim funding solution or bridge financing," it said.
The parties have been in discussions for more than two months but did not reach an agreement on the price or conditions of a possible offer, Lamprell said. They will continue to work together to try to reach a workable solution by way of an updated offer, "which also provides a solution to the immediate liquidity needs of the Group," it added.
In a separate statement, the rig builder which has delayed releasing its 2021 financial statements, said the discussions had also been over a potential equity fundraise of up to $150 million and/or some form of interim financing arrangement.
Lamprell said given the anticipated contract awards, it expected the group’s 2022 revenue to be in the range of $400-500 million, with $340 million secured for 2022.
The company said its board is urgently pursuing the options available "to deliver a funding solution that will resolve the Group's immediate and severe liquidity concerns."
The board of directors of UAE-based oil rig builder Lamprell Plc said it has received a potential cash offer from a shareholder, to acquire the entire issued and to be issued share capital of Lamprell, even as it seeks to urgently resolve severe liquidity concerns.
In a disclosure on the London Stock Exchange (LSE) where it is listed, Lamprell said its board is considering the possible non-binding indicative cash offer from Blofeld, which owns a 25.06% shareholding, given the company's funding requirements of $75 million over the next two months.
Blofeld's proposal in respect of the possible offer "is at a very significant discount to the prevailing share price and any acceptable offer would need to include an interim funding solution or bridge financing," it said.
The parties have been in discussions for more than two months but did not reach an agreement on the price or conditions of a possible offer, Lamprell said. They will continue to work together to try to reach a workable solution by way of an updated offer, "which also provides a solution to the immediate liquidity needs of the Group," it added.
In a separate statement, the rig builder which has delayed releasing its 2021 financial statements, said the discussions had also been over a potential equity fundraise of up to $150 million and/or some form of interim financing arrangement.
Lamprell said given the anticipated contract awards, it expected the group’s 2022 revenue to be in the range of $400-500 million, with $340 million secured for 2022.
The company said its board is urgently pursuing the options available "to deliver a funding solution that will resolve the Group's immediate and severe liquidity concerns."
Wall Street Organizes Field Trips to Red-Hot Gulf IPO Market - Bloomberg
Wall Street Organizes Field Trips to Red-Hot Gulf IPO Market - Bloomberg
Top US banks, including Citigroup Inc. and JPMorgan Chase & Co., are whisking fund managers off to the Middle East’s booming IPO market to meet the flood of companies looking to go public, people familiar with the matter said.
Bank of America Corp. and others are also considering organizing so-called reverse roadshows for investors, according to the people. Investment giants BlackRock Inc. and Fidelity, as well as hedge funds, are among those to have either participated in the trips or made their own visits, they said.
Once in the Middle East, the money managers are meeting a range of companies, from those planning an initial public offering to others that may consider doing so in the near term, the people said, asking not to be identified discussing confidential information.
The meet-and-greet trips being organized by the US investment banks come amid a surge in IPOs in the Middle East. The region has been a bright spot in an otherwise bleak landscape for share sales, which are near a two-decade low globally as investor demand craters on recession fears.
Top US banks, including Citigroup Inc. and JPMorgan Chase & Co., are whisking fund managers off to the Middle East’s booming IPO market to meet the flood of companies looking to go public, people familiar with the matter said.
Bank of America Corp. and others are also considering organizing so-called reverse roadshows for investors, according to the people. Investment giants BlackRock Inc. and Fidelity, as well as hedge funds, are among those to have either participated in the trips or made their own visits, they said.
Once in the Middle East, the money managers are meeting a range of companies, from those planning an initial public offering to others that may consider doing so in the near term, the people said, asking not to be identified discussing confidential information.
The meet-and-greet trips being organized by the US investment banks come amid a surge in IPOs in the Middle East. The region has been a bright spot in an otherwise bleak landscape for share sales, which are near a two-decade low globally as investor demand craters on recession fears.
Oil heads for second weekly drop on recession fears | Reuters
Oil heads for second weekly drop on recession fears | Reuters
Oil prices slipped on Friday and were heading for a second weekly fall, as tight supply was overshadowed by concern that rising interest rates could push the world economy into recession.
U.S. Federal Reserve Chair Jerome Powell said on Thursday the central bank's focus on curbing inflation was "unconditional," adding to fears about more interest rate hikes. read more
Stephen Brennock of oil broker PVM said recession fears dominated sentiment, adding: "That being said, the consensus remains that the oil market will see high demand and tight supply over the summer months, thereby limiting the downside."
Brent crude fell 8 cents, or 0.1%, at $109.97 a barrel by 0815 GMT, while U.S. West Texas Intermediate (WTI) crude was also down 8 cents at $104.19. Both benchmarks were heading for their second weekly decline.
"Increasing recession fears appear to be prompting a culling of heavy speculative long positioning in both contracts, even as in the real world, energy tightness is as real as ever," said Jeffrey Halley, analyst at brokerage OANDA.
Oil prices slipped on Friday and were heading for a second weekly fall, as tight supply was overshadowed by concern that rising interest rates could push the world economy into recession.
U.S. Federal Reserve Chair Jerome Powell said on Thursday the central bank's focus on curbing inflation was "unconditional," adding to fears about more interest rate hikes. read more
Stephen Brennock of oil broker PVM said recession fears dominated sentiment, adding: "That being said, the consensus remains that the oil market will see high demand and tight supply over the summer months, thereby limiting the downside."
Brent crude fell 8 cents, or 0.1%, at $109.97 a barrel by 0815 GMT, while U.S. West Texas Intermediate (WTI) crude was also down 8 cents at $104.19. Both benchmarks were heading for their second weekly decline.
"Increasing recession fears appear to be prompting a culling of heavy speculative long positioning in both contracts, even as in the real world, energy tightness is as real as ever," said Jeffrey Halley, analyst at brokerage OANDA.
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