The Hottest Investor in Renewables Is a Big Oil Producer - WSJ

The Hottest Investor in Renewables Is a Big Oil Producer - WSJ

A large-scale solar installation near the Masdar City sustainable urban development project. 
BERND VON JUTRCZENKA/ZUMA PRESS

The United Arab Emirates is emerging as one of the world’s biggest state financiers of clean energy, seeking to become as influential in renewables as it currently is in oil and gas.

Since November, when global nations agreed to accelerate emissions-cutting plans at a United Nations summit, the U.A.E. has said it will fund development of thousands of megawatts of solar-energy projects in countries across the world. It has committed $400 million to enable developing nations’ transition to clean energy and pledged to help supply green electricity to 100 million Africans by 2035.

The Gulf state, alongside the U.S., also has promised to raise $4 billion to invest in technologies that would transform agriculture and food production to limit climate change.

Emirati officials hope the bet on clean energy won’t only help diversify the country’s oil-dependent economy but increase its diplomatic clout and shift perceptions of the Gulf state.

Oil settles higher as major producers flag capacity limits | Reuters

Oil settles higher as major producers flag capacity limits | Reuters

Oil prices settled higher for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.

Brent crude futures climbed $2.89, or 2.5%, to settle at $117.58 a barrel by 12:33 p.m. EDT (1633 GMT). U.S. West Texas Intermediate (WTI) crude settled up$2.19, or 2%, to $111.76 a barrel.

Both contracts extended the previous session's gains of nearly 2% after the Group of Seven economic powers vowed to ratchet up existing Western pressure on Russia from sanctions over its invasion of Ukraine.

G7 leaders have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, aiming to deplete Moscow's war chest. read more

An Esoteric Oil Gauge Has Spiked to an Unprecedented Level - Bloomberg

An Esoteric Oil Gauge Has Spiked to an Unprecedented Level - Bloomberg

The oil market is so strong some gauges are at previously unthinkable levels.

Nowhere in the world is that as stark as in a flagship futures contract in the United Arab Emirates, currently the third-largest producer in the Organization of Petroleum Exporting Countries.

Murban crude oil futures for August are trading at about $8.90 a barrel higher than for the following month. The same spread closed at a record $9.52 on June 24. The jump is so eye-watering that the equivalent marker for global benchmark Brent has never traded at that level.

With oil refining margins at incredibly high levels globally, traders are willing to pay significantly more for get-it-now crudes. Shipments of Middle Eastern crude to Europe, including Murban, have grown in recent months. The flows have likely increased as refiners seek to replace Russian supplies, which have been shunned since it invaded Ukraine.

While the price spike has been enabled by an incredibly strong crude market -- both Brent and US benchmark West Texas Intermediate are back in a superbackwardation that characterizes extremely tight markets -- liquidity in the emergent Murban contract is more limited than for the main benchmarks.

Total open interest across all Murban futures is about 40,000 contracts and volume rarely surpasses 5,000 contracts a day, a fraction of that for Brent or WTI.

But the jump is a reminder of the strength in physical crude oil right now. Key North Sea swaps have also surged in recent days, in another sign of wider market strength.

#Saudi foreign direct investment inflows rise 9.5% in first quarter | Reuters

Saudi foreign direct investment inflows rise 9.5% in first quarter | Reuters

Saudi Arabia recorded 9.5% increase year on year in foreign direct investment (FDI) flows during the first three months of 2022, the investment ministry said on Twitter on Tuesday.

The FDI inflows were at 7.4 billion riyals ($1.97 billion) in the first quarter of 2022, the ministry added.

Most Gulf bourses gain, tracking oil, global shares | Reuters

Most Gulf bourses gain, tracking oil, global shares | Reuters

Most stock markets in the Gulf ended higher on Tuesday, tracking oil prices and global shares as China eased some quarantine requirements for international arrivals which raised hopes for stronger growth and a revival in demand for commodities.

China slashed the quarantine time for inbound travellers by half in a major easing of one of the world's strictest COVID-19 curbs, which have deterred cross-border travel and resulted in international flights running at just 2% of pre-pandemic levels. read more

Saudi Arabia's benchmark index (.TASI) leapt 2.1%, buoyed by a 3.3% rise in oil behemoth Saudi Aramco (2222.SE) and a 3.4% increase in the country's biggest lender Saudi National Bank (1180.SE).

Oil prices, a key factor for the Gulf's financial markets, swung higher after China eased quarantine rules, with focus already on tight supply as G7 leaders agreed to study placing price caps on imports of Russian oil and gas.

The energy index (.TENI) in the kingdom advanced 3.2%.

Dubai's main share index (.DFMGI) added 1.1%, led by a 1.9% gain in Emirates NBD Bank (ENBD.DU) and a 1.6% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($462.87 million) from investors via its initial public offering. read more

Over the short term, the market remains supported by the success of Tecom's IPO, according to Fadi Reyad, market analyst at CAPEX.com.

In Abu Dhabi, the equities (.FTFADGI) finished 1.9% higher, with conglomerate International Holding (IHC.AD) climbing 2%, after its unit Alpha Dhabi Holding (ALPHADHABI.AD) increased the stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.

Shares of Alpha Dhabi were 2.4% higher, while Aldar advanced 3.7%.

The Qatari index (.QSI) closed 1.1% higher, driven by a 2.4% increase in the Gulf's biggest lender Qatar National Bank (QNBK.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) slipped 0.8%, reaching its lowest since April 2020.

The Egyptian bourse continued its slide as international investors' selling trend is still active said Reyad.

"The market could see some support when new IPOs are launched, attracting liquidity."

Watch ACDB's Malik on #Saudi Banks, OPEC+ Outlook - Bloomberg video

Watch ACDB's Malik on Saudi Banks, OPEC+ Outlook - Bloomberg

Monica Malik, chief economist at Abu Dhabi Commercial Bank, discusses the liquidity relief for Saudi banks after facing the worst funding crunch in over and decade. She also talks about the difficult situation with OPEC+ in a tight oil market. She speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Oil extends gains as major producers flag capacity limits | Reuters

Oil extends gains as major producers flag capacity limits | Reuters

Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.

Brent crude futures climbed by $1.98, or 1.72%, to $117.02 a barrel by 1153 GMT, adding to the previous session's 1.7% gain.

U.S. West Texas Intermediate (WTI) crude futures rose $1.65, or 1.5%, to $111.22, extending the previous session's 1.8% advance.

Leaders of the G7 group of wealthy nations said they will explore a potential ban on transporting Russian oil that has been sold above a certain price as they seek to step up pressure on Moscow over its invasion of Ukraine. read more

#UAE’s Alpha Dhabi increases stake in Aldar Properties

UAE’s Alpha Dhabi increases stake in Aldar Properties

UAE-based conglomerate Alpha Dhabi Holding has become the “parent company” of Abu Dhabi real estate giant Aldar Properties PJSC, by increasing stake and reaffirming itself as the largest shareholder, the company said today.

The holding company said in a statement to Abu Dhabi Securities Exchange (ADX) that it increased its stake in Aldar but did not disclose by what percentage.

Alpha Dhabi last increased its stake in Aldar to 30 percent in January 2022.

Eng. Hamad Al Ameri, CEO of Alpha Dhabi Holding, said: “As a long-term strategic shareholder, Alpha Dhabi will continue to support Aldar’s management team as they execute its transformational growth agenda.

Major Gulf bourses track Asian shares, oil prices higher | Reuters

Major Gulf bourses track Asian shares, oil prices higher | Reuters

Major stock exchanges in the Middle East rose on Tuesday, in line with Asian peers, driven by China's decision to ease some quarantine rules for international arrivals.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.5%, having spent most of the day in negative territory.

China will halve to seven days its COVID-19 quarantine period for visitors from overseas, with a further three days spent at home, health authorities said. read more

In Abu Dhabi, the index (.FTFADGI) rose 0.5%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) gaining 0.9%, while Alpha Dhabi Holding (ALPHADHABI.AD) advanced as much as 3.2% after increasing stake in Aldar Properties (ALDAR.AD), becoming the single-largest shareholder.

Shares of Aldar Properties were up 3.2%.

Dubai's main share index (.DFMGI) edged up 0.2%, helped by a 1% increase in blue-chip developer Emaar Properties (EMAR.DU).

Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($462.87 million) from investors via its initial public offering. read more

Saudi Arabia's benchmark index (.TASI) rose 0.4%, supported by a 0.8% rise in Saudi National Bank (1180.SE) and a 0.4% increase in oil giant Saudi Aramco (2222.SE).

Industrial investment firm Bawan (1302.SE) surged 8.7%, its biggest intraday gain in nearly two years, after the company announced its intention to purchase up to 3 million treasury shares.

Oil prices, a key catalyst for the Gulf's financial markets, rallied for a third session as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.

In Qatar, the index (.QSI) gained 0.5%, with petrochemical maker Industries Qatar (IQCD.QA) rising 1.6%, and Commercial Bank (COMB.QA) adding 1.3%.

Oil extends gains as major producers flag capacity limits | Reuters

Oil extends gains as major producers flag capacity limits | Reuters

Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.

U.S. West Texas Intermediate (WTI) crude futures rose $1.8, or 1.6%, to $111.36 a barrel by 0644 GMT, extending a 1.8% gain in the previous session.

Brent crude futures climbed $1.9, or 1.7%, to $116.99, adding to a 1.7% rise in the previous session.

The UAE and Saudi Arabia have been seen as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with spare capacity available to make up for lost Russian supply and weak output from other member nations.

#Iran applies to join BRICS group of emerging countries | Reuters

Iran applies to join BRICS group of emerging countries | Reuters

Iran has submitted an application to become a member in the group of emerging economies known as the BRICS, an Iranian official said on Monday.

Iran's membership in the BRICS group, which includes Brazil, Russia, India, China and South Africa, "would result in added values for both sides," Iran's Foreign Ministry spokesperson said.

Russian Foreign Ministry spokeswoman Maria Zakharova said separately that Argentina had also applied to join the group. Argentinian officials could not be reached for immediate comment.

Argentina's President Alberto Fernandez, currently in Europe, has in recent days reiterated his desire for Argentina to join BRICS.