Oil edges up after U.S. stock build, big inflation figure | Reuters
Oil prices rose modestly on Wednesday even after U.S. oil inventories rose and after U.S. inflation figures bolstered the case for another big Federal Reserve interest rate increase.
Brent crude settled up 8 cents at $99.57 a barrel, while U.S. West Texas Intermediate crude gained 46 cents to $96.30 a barrel.
Global benchmark Brent is down sharply since hitting $139 in March, which was close to the all-time high in 2008, as investors have been selling oil of late on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand.
Prices fell by more than 7% on Tuesday in volatile trade to settle below $100 for the first time since April, and are in an oversold condition based on the relative strength indicator, a measure of market sentiment.
"I wouldn’t say this uptrend is over yet," said Thomas Saal, senior vice president at StoneX Financial. "Inventory levels are still pretty low worldwide, and that’s been a big factor in this rally."
Wednesday, 13 July 2022
#UAE Will Keep Using #AbuDhabi’s Oil to Draw Global Investors - Bloomberg
UAE Will Keep Using Abu Dhabi’s Oil to Draw Global Investors - Bloomberg
The United Arab Emirates aims to continue using its hydrocarbon wealth to attract international investors as the Persian Gulf state aims to expand its economy and prepare for a post-oil age.
Government-owned Abu Dhabi National Oil Co., which holds most of the country’s crude and natural gas reserves, has attracted $64.5 billion in foreign direct investment since 2016, the emirate’s media office said in a statement. In that time, Adnoc has listed shares in service stations and drilling units and sold stakes in pipeline and real estate assets.
The company should continue expanding its “investor base to drive foreign direct investment to the UAE” and build new partnerships to help adapt to the energy transition, according to the statement released after a meeting of the executive committee of Adnoc’s board of directors.
The UAE is the third-largest producer in the Organization of Petroleum Exporting Countries, behind Saudi Arabia and Iraq. It’s spending billions to pump more, with crude output capacity set to rise by about 25% to 5 million barrels a day by 2030. At the same time, the country is building renewable energy capacity to cut emissions and driving investment in financial markets, technology and tourism to cut reliance on oil.
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, a son of the UAE ruler and himself mooted as a potential candidate to be the emirate’s next crown prince, chaired the meeting.
The United Arab Emirates aims to continue using its hydrocarbon wealth to attract international investors as the Persian Gulf state aims to expand its economy and prepare for a post-oil age.
Government-owned Abu Dhabi National Oil Co., which holds most of the country’s crude and natural gas reserves, has attracted $64.5 billion in foreign direct investment since 2016, the emirate’s media office said in a statement. In that time, Adnoc has listed shares in service stations and drilling units and sold stakes in pipeline and real estate assets.
The company should continue expanding its “investor base to drive foreign direct investment to the UAE” and build new partnerships to help adapt to the energy transition, according to the statement released after a meeting of the executive committee of Adnoc’s board of directors.
The UAE is the third-largest producer in the Organization of Petroleum Exporting Countries, behind Saudi Arabia and Iraq. It’s spending billions to pump more, with crude output capacity set to rise by about 25% to 5 million barrels a day by 2030. At the same time, the country is building renewable energy capacity to cut emissions and driving investment in financial markets, technology and tourism to cut reliance on oil.
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, a son of the UAE ruler and himself mooted as a potential candidate to be the emirate’s next crown prince, chaired the meeting.
Oil mixed after U.S. stock build, big inflation figure | Reuters
Oil mixed after U.S. stock build, big inflation figure | Reuters
Oil prices were little changed on Wednesday after U.S. oil inventories rose and after U.S. inflation figures bolstered the case for another big Federal Reserve interest rate increase.
Brent crude was down 39 cents to $99.10 a barrel as of 1:18 p.m. ET (1718 GMT), while U.S. West Texas Intermediate crude fell 10 cents to $96.74 a barrel.
Investors have been selling oil of late on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trade to settle below $100 for the first time since April.
"Demand issues are catching up to high prices. The U.S. dollar is causing downside pressure on all commodities. There’s been a shift in mentality over the last couple of weeks," said Tony Headrick, energy markets analyst at CHS Hedging.
However, the physical market remains tight. Key benchmarks, such as Forties crude and U.S. Midland crude, are trading at premiums to the futures market, painting a different picture than what is happening in futures.
Oil prices were little changed on Wednesday after U.S. oil inventories rose and after U.S. inflation figures bolstered the case for another big Federal Reserve interest rate increase.
Brent crude was down 39 cents to $99.10 a barrel as of 1:18 p.m. ET (1718 GMT), while U.S. West Texas Intermediate crude fell 10 cents to $96.74 a barrel.
Investors have been selling oil of late on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trade to settle below $100 for the first time since April.
"Demand issues are catching up to high prices. The U.S. dollar is causing downside pressure on all commodities. There’s been a shift in mentality over the last couple of weeks," said Tony Headrick, energy markets analyst at CHS Hedging.
However, the physical market remains tight. Key benchmarks, such as Forties crude and U.S. Midland crude, are trading at premiums to the futures market, painting a different picture than what is happening in futures.
#Dubai surpasses world's top financial hubs in attracting FDI projects
Dubai surpasses world's top financial hubs in attracting FDI projects
Dubai outranked some of the world's major financial hubs in promoting foreign direct investments (FDI) last year and attracted 5.2 billion dirhams ($1.4 billion) in projects between 2017 and 2021.
The Dubai International Financial Centre (DIFC) also ranked first as a free zone globally in attracting FDI in the financial services sector last year and during the period of 2017-2021, according to a report by the Dubai Investment Development Agency (Dubai FDI).
According to the report, which is based on Financial Times 'data, Dubai surpassed major financial cities, such as London, Singapore, New York and Paris in attracting FDI projects. The city's financial services sector alone attracted 58 FDI projects worth 926.2 million dirhams and generated around 1,432 jobs in 2021.
"By the end of 2021, Dubai ranked first globally in the financial services sector in attracting FDI projects, third in job creation and fifth in FDI capital generated," the report said.
Dubai outranked some of the world's major financial hubs in promoting foreign direct investments (FDI) last year and attracted 5.2 billion dirhams ($1.4 billion) in projects between 2017 and 2021.
The Dubai International Financial Centre (DIFC) also ranked first as a free zone globally in attracting FDI in the financial services sector last year and during the period of 2017-2021, according to a report by the Dubai Investment Development Agency (Dubai FDI).
According to the report, which is based on Financial Times 'data, Dubai surpassed major financial cities, such as London, Singapore, New York and Paris in attracting FDI projects. The city's financial services sector alone attracted 58 FDI projects worth 926.2 million dirhams and generated around 1,432 jobs in 2021.
"By the end of 2021, Dubai ranked first globally in the financial services sector in attracting FDI projects, third in job creation and fifth in FDI capital generated," the report said.
Most Gulf indexes drop ahead of U.S. inflation data | Reuters
Most Gulf indexes drop ahead of U.S. inflation data | Reuters
Most stock markets in the Gulf slipped into negative territory on Wednesday, as traders awaited U.S. inflation data for cues on a large Federal Reserve rate hike this month.
Saudi Arabia's benchmark index (.TASI) fell 1.1% to a near six-month low, with oil behemoth Saudi Aramco (2222.SE) losing 3.4% and Sahara International Petrochemical Co (2310.SE) plunging about 10%.
The U.S. dollar will remain strong for at least the next three months as it basks in both expectations for aggressive Federal Reserve interest rate rises and safe-haven appeal stemming from global recession fears, a Reuters poll of FX analysts showed. read more
Worries that higher rates could bring the global economy to a standstill, or even into a recession, have been the key driver for the slump in world stocks this year and the surge in the safe-haven U.S. dollar.
Dubai's main share index (.DFMGI) dropped 0.5%, weighed down by a 2.9% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.6% decline in logistic firm Aramex (ARMX.DU).
In Abu Dhabi, stocks (.FTFADGI) finished 0.8% lower, hit by a 0.7% fall in the United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD).
However, Abu Dhabi Ports (ADPORTS.AD) jumped 3.8%, after it signed an agreement to support Hayat Biotech's global expasion.
The Qatari index (.QSI) retreated 1.7%, dragged down by a 5.7% slide in Qatar Islamic Bank (QISB.QA) and a 2.6% fall in the Gulf's biggest lender, Qatar National Bank (QNBK.QA).
The Qatari index, which traded after a three session break, reopened lower as investors take into account the current uncertainties in the energy markets, said Farah Mourad, senior market analyst of XTB MENA.
"The market continues to suffer from the volatility and changing natural gas market conditions."
** Egypt and Kuwait markets were closed for a public holiday.
Most stock markets in the Gulf slipped into negative territory on Wednesday, as traders awaited U.S. inflation data for cues on a large Federal Reserve rate hike this month.
Saudi Arabia's benchmark index (.TASI) fell 1.1% to a near six-month low, with oil behemoth Saudi Aramco (2222.SE) losing 3.4% and Sahara International Petrochemical Co (2310.SE) plunging about 10%.
The U.S. dollar will remain strong for at least the next three months as it basks in both expectations for aggressive Federal Reserve interest rate rises and safe-haven appeal stemming from global recession fears, a Reuters poll of FX analysts showed. read more
Worries that higher rates could bring the global economy to a standstill, or even into a recession, have been the key driver for the slump in world stocks this year and the surge in the safe-haven U.S. dollar.
Dubai's main share index (.DFMGI) dropped 0.5%, weighed down by a 2.9% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.6% decline in logistic firm Aramex (ARMX.DU).
In Abu Dhabi, stocks (.FTFADGI) finished 0.8% lower, hit by a 0.7% fall in the United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD).
However, Abu Dhabi Ports (ADPORTS.AD) jumped 3.8%, after it signed an agreement to support Hayat Biotech's global expasion.
The Qatari index (.QSI) retreated 1.7%, dragged down by a 5.7% slide in Qatar Islamic Bank (QISB.QA) and a 2.6% fall in the Gulf's biggest lender, Qatar National Bank (QNBK.QA).
The Qatari index, which traded after a three session break, reopened lower as investors take into account the current uncertainties in the energy markets, said Farah Mourad, senior market analyst of XTB MENA.
"The market continues to suffer from the volatility and changing natural gas market conditions."
** Egypt and Kuwait markets were closed for a public holiday.
#AbuDhabi Fund Mubadala Deploys Billions Defying Tech Rout - Bloomberg
Abu Dhabi Fund Mubadala Deploys Billions Defying Tech Rout - Bloomberg
An Abu Dhabi sovereign wealth fund is fast emerging as a white knight for tech firms seeking funds in a volatile market.
Mubadala Investment Co., the $284 billion state-owned fund, is defying a rout in technology valuations and becoming a go-to investor in a sector where fortunes have turned overnight. The investor backed raises this week for both Klarna Bank AB and Wefox.
Mubadala is committing its capital at a time its owner, the Abu Dhabi government, benefits from a surge in oil prices driven mainly by the war in Ukraine. The Gulf fund is stepping in to invest in technology-focused businesses just as other investors turn away from what they see as risky and potentially overpriced assets.
“As a long-term investor, Mubadala continues to deploy capital opportunistically across a range of key sectors,” a spokesperson for the fund said.
It led the latest funding round for German insurance-technology firm Wefox, which raised $400 million at a valuation of $4.5 billion this month. The fund also came in as a new investor in the $800 million raise by Klarna, the buy-now-pay-later giant, that saw its valuation plunge to $6.7 billion from the $45.6 billion achieved last year.
An Abu Dhabi sovereign wealth fund is fast emerging as a white knight for tech firms seeking funds in a volatile market.
Mubadala Investment Co., the $284 billion state-owned fund, is defying a rout in technology valuations and becoming a go-to investor in a sector where fortunes have turned overnight. The investor backed raises this week for both Klarna Bank AB and Wefox.
Mubadala is committing its capital at a time its owner, the Abu Dhabi government, benefits from a surge in oil prices driven mainly by the war in Ukraine. The Gulf fund is stepping in to invest in technology-focused businesses just as other investors turn away from what they see as risky and potentially overpriced assets.
“As a long-term investor, Mubadala continues to deploy capital opportunistically across a range of key sectors,” a spokesperson for the fund said.
It led the latest funding round for German insurance-technology firm Wefox, which raised $400 million at a valuation of $4.5 billion this month. The fund also came in as a new investor in the $800 million raise by Klarna, the buy-now-pay-later giant, that saw its valuation plunge to $6.7 billion from the $45.6 billion achieved last year.
#Dubai Business Conditions Climb at Quickest Pace in Three Years - Bloomberg
Dubai Business Conditions Climb at Quickest Pace in Three Years - Bloomberg
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Business conditions in Dubai last month improved at the fastest pace in three years, driven partly by travel, tourism and the construction sector.
The Middle East’s business hub saw a “robust speed of expansion” in its non-oil economy in June, according to a survey published by S&P Global on Wednesday. Its Dubai Purchasing Managers’ Index rose to 56.1 from 55.7 in May, the highest since June 2019 and well above the 50-mark that separates expansion from contraction.
“The Dubai PMI continued to trend upwards in June, reflecting further strength in new business and activity,” said David Owen, an economist at S&P Global. “That said, the economy also faced the challenge of rising inflationary pressures, which led to the quickest increase in input prices since the start of 2018.”
Although less intense than in other parts of the world, cost pressures are also on the rise in the oil-rich Gulf region, prompting countries including Saudi Arabia and the United Arab Emirates, of which Dubai is a part, to set aside billions of dollars to support low-income citizens and stockpile key commodities.
“The sharp uptick in global energy prices weighed heavily on businesses, with consumers also likely to feel the pinch on spending as fuel prices spike,” said Owen. “If cost inflation is sustained at a high level in the second half of 2022, it will become increasingly difficult for firms to keep price increases at bay.”
Dubai’s consumer price inflation rose to 4.7% in May, according to the latest data from the city’s statistics center. That’s the highest since 2016 at least, although companies continued to take on the burden of higher prices to combat strong market competition.
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Business conditions in Dubai last month improved at the fastest pace in three years, driven partly by travel, tourism and the construction sector.
The Middle East’s business hub saw a “robust speed of expansion” in its non-oil economy in June, according to a survey published by S&P Global on Wednesday. Its Dubai Purchasing Managers’ Index rose to 56.1 from 55.7 in May, the highest since June 2019 and well above the 50-mark that separates expansion from contraction.
“The Dubai PMI continued to trend upwards in June, reflecting further strength in new business and activity,” said David Owen, an economist at S&P Global. “That said, the economy also faced the challenge of rising inflationary pressures, which led to the quickest increase in input prices since the start of 2018.”
Although less intense than in other parts of the world, cost pressures are also on the rise in the oil-rich Gulf region, prompting countries including Saudi Arabia and the United Arab Emirates, of which Dubai is a part, to set aside billions of dollars to support low-income citizens and stockpile key commodities.
“The sharp uptick in global energy prices weighed heavily on businesses, with consumers also likely to feel the pinch on spending as fuel prices spike,” said Owen. “If cost inflation is sustained at a high level in the second half of 2022, it will become increasingly difficult for firms to keep price increases at bay.”
Dubai’s consumer price inflation rose to 4.7% in May, according to the latest data from the city’s statistics center. That’s the highest since 2016 at least, although companies continued to take on the burden of higher prices to combat strong market competition.
Most Gulf bourses in red in early trade | Reuters
Most Gulf bourses in red in early trade | Reuters
Most stock markets in the Gulf eased in early trade on Wednesday, ahead of the release of U.S. inflation data for June, as the region resumed trading after a long eid break.
The U.S. dollar will remain strong for at least the next three months as it basks in both expectations for aggressive Federal Reserve interest rate rises and safe-haven appeal stemming from global recession fears, a Reuters poll of FX analysts showed. read more
A high inflation print would likely be read by the Fed as a sign it needs to continue with aggressive interest rate rises to get on top of surging prices, even if this might push the economy into recession.
The Qatari benchmark (.QSI) declined more than 1%, dragged down by a 3.3% slide in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Dubai's main share index (.DFMGI) fell 0.1%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.7% decrease in Emirates Integrated Telecommunications (DU.DU).
In Abu Dhabi, the index (.FTFADGI) dropped 0.1%, with telecoms firm e& (ETISALAT.AD) retreating 0.8%.
Saudi Arabia's benchmark index (.TASI) gained 0.8%, extending gains from the previous session, led by a 2.1% rise in Saudi National Bank (1180.SE) and a 1.8% increase in Riyad Bank (1010.SE).
Oil prices, a key catalyst for the Gulf's financial markets, edged up, a day after prices fell through $100 a barrel for the first time since April, but gains were limited by caution ahead of U.S. inflation data that could weaken the market.
In a monthly report issued on Tuesday, OPEC expected that global oil demand would rise in 2023 and that the market would remain tight. It estimated that an additional 900,000 bpd of oil would be needed from its members in 2023 to balance the market. read more
Most stock markets in the Gulf eased in early trade on Wednesday, ahead of the release of U.S. inflation data for June, as the region resumed trading after a long eid break.
The U.S. dollar will remain strong for at least the next three months as it basks in both expectations for aggressive Federal Reserve interest rate rises and safe-haven appeal stemming from global recession fears, a Reuters poll of FX analysts showed. read more
A high inflation print would likely be read by the Fed as a sign it needs to continue with aggressive interest rate rises to get on top of surging prices, even if this might push the economy into recession.
The Qatari benchmark (.QSI) declined more than 1%, dragged down by a 3.3% slide in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Dubai's main share index (.DFMGI) fell 0.1%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.7% decrease in Emirates Integrated Telecommunications (DU.DU).
In Abu Dhabi, the index (.FTFADGI) dropped 0.1%, with telecoms firm e& (ETISALAT.AD) retreating 0.8%.
Saudi Arabia's benchmark index (.TASI) gained 0.8%, extending gains from the previous session, led by a 2.1% rise in Saudi National Bank (1180.SE) and a 1.8% increase in Riyad Bank (1010.SE).
Oil prices, a key catalyst for the Gulf's financial markets, edged up, a day after prices fell through $100 a barrel for the first time since April, but gains were limited by caution ahead of U.S. inflation data that could weaken the market.
In a monthly report issued on Tuesday, OPEC expected that global oil demand would rise in 2023 and that the market would remain tight. It estimated that an additional 900,000 bpd of oil would be needed from its members in 2023 to balance the market. read more
Oil edges higher after slide below $100 | Reuters
Oil edges higher after slide below $100 | Reuters
Oil edged up on Wednesday, a day after settling below $100 a barrel for the first time since April, and gains were limited by a U.S. supply report showing rising inventories and caution ahead of U.S. inflation data.
Despite a tight physical oil market, investors have sold oil futures on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trade.
Brent crude was up 73 cents, or 0.7%, at $100.22 a barrel at 0813 GMT. U.S. West Texas Intermediate crude gained 68 cents, or 0.7%, to $96.52.
"Although I don't rule out more downside surprises, I believe the recent selloff could be getting a little overdone," said Jeffrey Halley of brokerage OANDA.
Brent is down sharply since hitting $139 in March, close to the all-time high reached in 2008. Renewed COVID-19 curbs in China have weighed on the market this week. read more
Oil edged up on Wednesday, a day after settling below $100 a barrel for the first time since April, and gains were limited by a U.S. supply report showing rising inventories and caution ahead of U.S. inflation data.
Despite a tight physical oil market, investors have sold oil futures on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trade.
Brent crude was up 73 cents, or 0.7%, at $100.22 a barrel at 0813 GMT. U.S. West Texas Intermediate crude gained 68 cents, or 0.7%, to $96.52.
"Although I don't rule out more downside surprises, I believe the recent selloff could be getting a little overdone," said Jeffrey Halley of brokerage OANDA.
Brent is down sharply since hitting $139 in March, close to the all-time high reached in 2008. Renewed COVID-19 curbs in China have weighed on the market this week. read more