Oil settles lower ahead of potential large U.S. rate hike | Reuters
Oil prices settled lower on Thursday, but pared nearly all losses after falling more than $4 earlier in the session as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand.
Brent crude futures for September settled down 47 cents, or 0.5% to $99.10 a barrel and finished a third session in a row below $100.
U.S. West Texas Intermediate crude for August delivery settled down $95.78 a barrel, or 0.5%, down 52 cents.
Both contracts hit lows on Thursday which were below the Feb. 23 close, the day before Russia invaded Ukraine, with Brent reaching its lowest level since Feb. 21.
The U.S. Federal Reserve is seen ramping up its battle with 40-year high inflation with a supersized 100 basis-point rate hike this month after a grim inflation report showed price pressures accelerating. The Fed policy meeting is scheduled for July 26-27.
Thursday 14 July 2022
#UAE's Agthia seeks to buy 60% stake in Egypt snacks firm Abu Auf | Reuters
UAE's Agthia seeks to buy 60% stake in Egypt snacks firm Abu Auf | Reuters
United Arab Emirates food and beverages group Agthia said on Thursday its board approved a proposed acquisition of 60% of Egyptian snacks company Abu Auf Holding worth 2.92 billion Egyptian pounds ($154.99 million).
Agthia (AGTHIA.AD), majority owned by the Abu Dhabi government through state investor ADQ, has since late 2020 made a string of acquisitions in the region, including previously in Egypt, as it seeks to become one of the top food industry players in the Middle East.
ADQ's acquisitions in Egypt include buying $1.85 billion worth of stakes in five listed companies in April. In May, the UAE's state news agency said ADQ will allocate $10 billion in investment for projects with Egypt and Jordan, including agriculture, pharmaceuticals, minerals, petrochemicals and textiles. read more
Agthia is seeking to acquire the majority stake in Abu Auf, also known as Auf Group, through its subsidiary AG Synergy Holding 1 RSC Ltd (Synergy Holdco) from existing shareholders Ahmed Auf, Mohamed Auf, Ayman Auf and Tanmeya Energy BV, a vehicle managed by Tanmiya Capital Ventures (TCV), it said in a stock exchange filing.
United Arab Emirates food and beverages group Agthia said on Thursday its board approved a proposed acquisition of 60% of Egyptian snacks company Abu Auf Holding worth 2.92 billion Egyptian pounds ($154.99 million).
Agthia (AGTHIA.AD), majority owned by the Abu Dhabi government through state investor ADQ, has since late 2020 made a string of acquisitions in the region, including previously in Egypt, as it seeks to become one of the top food industry players in the Middle East.
ADQ's acquisitions in Egypt include buying $1.85 billion worth of stakes in five listed companies in April. In May, the UAE's state news agency said ADQ will allocate $10 billion in investment for projects with Egypt and Jordan, including agriculture, pharmaceuticals, minerals, petrochemicals and textiles. read more
Agthia is seeking to acquire the majority stake in Abu Auf, also known as Auf Group, through its subsidiary AG Synergy Holding 1 RSC Ltd (Synergy Holdco) from existing shareholders Ahmed Auf, Mohamed Auf, Ayman Auf and Tanmeya Energy BV, a vehicle managed by Tanmiya Capital Ventures (TCV), it said in a stock exchange filing.
Oil prices fall ahead of potential large U.S. rate hike | Reuters
Oil prices fall ahead of potential large U.S. rate hike | Reuters
Oil prices fell more than $2 before paring losses on Thursday as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand.
Brent crude futures for September were down $1.23 to $98.34 a barrel at 1245 GMT after losing more than $2 in the session and on track for a third finish below $100 in a row.
U.S. West Texas Intermediate crude for August delivery was at $94.89 a barrel, down $1.41, paring losses after tumbling by more than $2.
Oil prices have tumbled in the past two weeks on recession concerns despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya. read more
"Clearly, focus is now on the demand side of the oil equation. Yesterday's weekly EIA (U.S. Energy Information Administration) report showed sizeable builds in product inventories," Tamas Varga, analyst at PVM Oil Associates, said.
Oil prices fell more than $2 before paring losses on Thursday as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand.
Brent crude futures for September were down $1.23 to $98.34 a barrel at 1245 GMT after losing more than $2 in the session and on track for a third finish below $100 in a row.
U.S. West Texas Intermediate crude for August delivery was at $94.89 a barrel, down $1.41, paring losses after tumbling by more than $2.
Oil prices have tumbled in the past two weeks on recession concerns despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya. read more
"Clearly, focus is now on the demand side of the oil equation. Yesterday's weekly EIA (U.S. Energy Information Administration) report showed sizeable builds in product inventories," Tamas Varga, analyst at PVM Oil Associates, said.
Saudi index hits 6-month low amid recession fears | Reuters
Saudi index hits 6-month low amid recession fears | Reuters
Most stock markets in the Gulf fell on Thursday, with the Saudi index wiping out its gains so far this year, as a red-hot U.S. inflation reading bolsters the case for supersized rate hikes by the Federal Reserve.
Wednesday's data showed U.S. consumer prices jumped 9.1% year-on-year in June, the largest annual increase in inflation in 40-1/2 years. read more
The data was seen as firming the case for the Federal Reserve to raise rates aggressively. Policymakers might consider a 100-basis-point increase in the July meeting, Atlanta Federal Reserve Bank President Raphael Bostic said. read more
Saudi Arabia's benchmark index (.TASI) dropped 1.1%, hitting its lowest since late-December, dragged down by a 1% fall in Retal Urban Development Company (4322.SE) and Sahara International Petrochemical Co (2310.SE) which dropped 8%.
Oil prices, a key catalyst for the Gulf's financial markets fell more than $2 as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand. read more
Worries of COVID-19 curbs in multiple Chinese cities to rein in new cases of a highly infectious subvariant have also kept a lid on oil prices.
In Qatar, the index (.QSI) eased 0.1%, hit by a 3.7% decline in petrochemical maker Industries Qatar (IQCD.QA).
Elsewhere, the Kuwaiti index (.BKP), which traded after a four-session break, concluded 0.5% lower.
Dubai's main share index (.DFMGI) advanced 1.3%, led by a 3.4% rise in top lender Emirates NBD (ENBD.DU) and a 2.4% gain in blue-chip developer Emaar Properties (EMAR.DU).
The Dubai bourse rebounded from the previous session's fall, supported by the real estate sector which is seeing strong sales, said Eman AlAyyaf, CEO of EA Trading.
"However, the sector and the market as a whole remain exposed to a more aggressive monetary policy in the U.S.."
Abu Dhabi stocks (.FTFADGI) added 0.9%, with the coutry's biggest lender First Abu Dhabi Bank (FAB.AD) closing 2% higher.
Most stock markets in the Gulf fell on Thursday, with the Saudi index wiping out its gains so far this year, as a red-hot U.S. inflation reading bolsters the case for supersized rate hikes by the Federal Reserve.
Wednesday's data showed U.S. consumer prices jumped 9.1% year-on-year in June, the largest annual increase in inflation in 40-1/2 years. read more
The data was seen as firming the case for the Federal Reserve to raise rates aggressively. Policymakers might consider a 100-basis-point increase in the July meeting, Atlanta Federal Reserve Bank President Raphael Bostic said. read more
Saudi Arabia's benchmark index (.TASI) dropped 1.1%, hitting its lowest since late-December, dragged down by a 1% fall in Retal Urban Development Company (4322.SE) and Sahara International Petrochemical Co (2310.SE) which dropped 8%.
Oil prices, a key catalyst for the Gulf's financial markets fell more than $2 as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand. read more
Worries of COVID-19 curbs in multiple Chinese cities to rein in new cases of a highly infectious subvariant have also kept a lid on oil prices.
In Qatar, the index (.QSI) eased 0.1%, hit by a 3.7% decline in petrochemical maker Industries Qatar (IQCD.QA).
Elsewhere, the Kuwaiti index (.BKP), which traded after a four-session break, concluded 0.5% lower.
Dubai's main share index (.DFMGI) advanced 1.3%, led by a 3.4% rise in top lender Emirates NBD (ENBD.DU) and a 2.4% gain in blue-chip developer Emaar Properties (EMAR.DU).
The Dubai bourse rebounded from the previous session's fall, supported by the real estate sector which is seeing strong sales, said Eman AlAyyaf, CEO of EA Trading.
"However, the sector and the market as a whole remain exposed to a more aggressive monetary policy in the U.S.."
Abu Dhabi stocks (.FTFADGI) added 0.9%, with the coutry's biggest lender First Abu Dhabi Bank (FAB.AD) closing 2% higher.
#Oman’s Bank Muscat H1 2022 net profit rises 5% to $258mln
Oman’s Bank Muscat H1 2022 net profit rises 5% to $258mln
Bank Muscat, Oman’s largest bank by assets, saw its H1 2022 net profit rise by 5% to 99.26 million riyals ($258 million) despite lower net interest income and higher operating expenses.
Net interest income from conventional banking and net income from Islamic financing reached 166.25 million riyals for the first six months of the year, compared to 168.44 million riyals for the same period in 2021, the bank stated in a bourse filing on Thursday.
Operating expenses went up by 8% to 102.71 million riyals. However, net impairment for credit and other losses fell to 28.40 million riyals from 35.33 million riyals on improving crude oil prices. In addition, for the prior-year period, the bank had made higher provisions in view of the pandemic slowdown.
Bank Muscat did not disclose net profit for the most recent quarter. However, according to Zawya calculations, the bank made a net profit of 51 million riyals for Q2. The effort beat analysts’ estimates of 48 million riyals, according to data provider Refinitiv.
Bank Muscat, Oman’s largest bank by assets, saw its H1 2022 net profit rise by 5% to 99.26 million riyals ($258 million) despite lower net interest income and higher operating expenses.
Net interest income from conventional banking and net income from Islamic financing reached 166.25 million riyals for the first six months of the year, compared to 168.44 million riyals for the same period in 2021, the bank stated in a bourse filing on Thursday.
Operating expenses went up by 8% to 102.71 million riyals. However, net impairment for credit and other losses fell to 28.40 million riyals from 35.33 million riyals on improving crude oil prices. In addition, for the prior-year period, the bank had made higher provisions in view of the pandemic slowdown.
Bank Muscat did not disclose net profit for the most recent quarter. However, according to Zawya calculations, the bank made a net profit of 51 million riyals for Q2. The effort beat analysts’ estimates of 48 million riyals, according to data provider Refinitiv.
#UAE Residents Cut Spending Despite Relatively Muted Inflation - Bloomberg
UAE Residents Cut Spending Despite Relatively Muted Inflation - Bloomberg
The United Arab Emirates may have one of the lowest levels of inflation globally, but residents have still cut back on spending over the past six months and many plan to continue trimming expenses this year, an online survey showed.
Inflation in the Gulf nation is expected at 3.7% this year before sliding to 2.8% in 2023, according to the International Monetary Fund. That’s lower than levels seen around the world -- including in the US, where inflation roared to a four-decade high last month.
Still, over half of the 1,006 UAE residents surveyed in the YouGov poll indicated their cost of living had increased substantially compared with a year ago. In response, 47% of those surveyed said they’ve cut spending on eating out and just over a third have pulled back on gadgets.
Two-fifths expect to reduce spending in those two areas going forward. The survey indicated that residents expect to cut back on takeaways and non-essential food items, grooming services, and leisure activities.
The United Arab Emirates may have one of the lowest levels of inflation globally, but residents have still cut back on spending over the past six months and many plan to continue trimming expenses this year, an online survey showed.
Inflation in the Gulf nation is expected at 3.7% this year before sliding to 2.8% in 2023, according to the International Monetary Fund. That’s lower than levels seen around the world -- including in the US, where inflation roared to a four-decade high last month.
Still, over half of the 1,006 UAE residents surveyed in the YouGov poll indicated their cost of living had increased substantially compared with a year ago. In response, 47% of those surveyed said they’ve cut spending on eating out and just over a third have pulled back on gadgets.
Two-fifths expect to reduce spending in those two areas going forward. The survey indicated that residents expect to cut back on takeaways and non-essential food items, grooming services, and leisure activities.
#UAE announces $2 billion investment for India food parks | Reuters
UAE announces $2 billion investment for India food parks | Reuters
The United Arab Emirates (UAE) pledged a $2 billion investment to develop food parks in India in order to tackle food insecurity in South Asia and the Middle East, a joint statement from the UAE, India, the United States and Israel said on Thursday.
The parks will incorporate advanced climate technology, the statement said, in order to help maximize crop yields. "U.S. and Israeli private sectors will be invited to lend their expertise and offer innovative solutions that contribute to the overall sustainability of the project," the statement said.
The United Arab Emirates (UAE) pledged a $2 billion investment to develop food parks in India in order to tackle food insecurity in South Asia and the Middle East, a joint statement from the UAE, India, the United States and Israel said on Thursday.
The parks will incorporate advanced climate technology, the statement said, in order to help maximize crop yields. "U.S. and Israeli private sectors will be invited to lend their expertise and offer innovative solutions that contribute to the overall sustainability of the project," the statement said.
Crypto Exchange OKX Gets Dubai License, Set to Open Hub in City - Bloomberg
Crypto Exchange OKX Gets Dubai License, Set to Open Hub in City - Bloomberg
OKX has received a provisional virtual-asset license in Dubai and plans to set up a regional hub in the city that’s been trying to attract cryptocurrency companies from around the world.
The license will allow OKX -- one of the world’s largest cryptocurrency exchanges by trading volume -- to provide access to some products and services to investors in the United Arab Emirates.
“OKX is committed to building out both its team and necessary infrastructure in the UAE,” General Manager Lennix Lai said in a statement, adding that the market had a growing local crypto ecosystem and “a balanced regulatory framework.”
The UAE is amongst the largest crypto markets in the region, along with Turkey and Lebanon, according to data compiled by Chainalysis. The Gulf nation is seeking to attract some of the world’s biggest crypto and fintech companies -- and firms including Binance and FTX have been granted licenses in Dubai.
OKX has received a provisional virtual-asset license in Dubai and plans to set up a regional hub in the city that’s been trying to attract cryptocurrency companies from around the world.
The license will allow OKX -- one of the world’s largest cryptocurrency exchanges by trading volume -- to provide access to some products and services to investors in the United Arab Emirates.
“OKX is committed to building out both its team and necessary infrastructure in the UAE,” General Manager Lennix Lai said in a statement, adding that the market had a growing local crypto ecosystem and “a balanced regulatory framework.”
The UAE is amongst the largest crypto markets in the region, along with Turkey and Lebanon, according to data compiled by Chainalysis. The Gulf nation is seeking to attract some of the world’s biggest crypto and fintech companies -- and firms including Binance and FTX have been granted licenses in Dubai.
Most Gulf bourses gain in early trade; #Saudi falls | Reuters
Most Gulf bourses gain in early trade; Saudi falls | Reuters
Most stock markets in the Gulf rose in early trade on Thursday as investors digested a report showing U.S. annual consumer prices jumped 9.1% in June, although the Saudi index traded lower, nearing a six-month low.
Dubai's main share index (.DFMGI) advanced 0.9%, buoyed by a 2.2% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The president of the United Arab Emirates said on Wednesday the Gulf OPEC producer would continue to support global energy security as a main driver of global economic growth, ahead of a U.S.-Arab summit in neighbouring Saudi Arabia this week. read more
Sheikh Mohammed bin Zayed al-Nahyan, in his first televised address since becoming president in May, also said the UAE would extend a "hand of friendship" to all countries that share values of peaceful coexistence and mutual respect.
In Abu Dhabi, the index (.FTFADGI) added 0.3%, supported by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
The Qatari benchmark (.QSI) gained 0.7%, with Qatar Islamic Bank (QISB.QA) rising 2.5%.
Saudi Arabia's benchmark index (.TASI), however, fell 0.5%, nearing a six month low, hit by a 1.3% fall in top lender Saudi National Bank (1180.SE).
Oil prices, a key catalyst for the Gulf's financial markets, fell as investors weighed tight supplies against the prospect of a large U.S. rate hike that could stem inflation and curb crude demand.
Most stock markets in the Gulf rose in early trade on Thursday as investors digested a report showing U.S. annual consumer prices jumped 9.1% in June, although the Saudi index traded lower, nearing a six-month low.
Dubai's main share index (.DFMGI) advanced 0.9%, buoyed by a 2.2% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The president of the United Arab Emirates said on Wednesday the Gulf OPEC producer would continue to support global energy security as a main driver of global economic growth, ahead of a U.S.-Arab summit in neighbouring Saudi Arabia this week. read more
Sheikh Mohammed bin Zayed al-Nahyan, in his first televised address since becoming president in May, also said the UAE would extend a "hand of friendship" to all countries that share values of peaceful coexistence and mutual respect.
In Abu Dhabi, the index (.FTFADGI) added 0.3%, supported by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
The Qatari benchmark (.QSI) gained 0.7%, with Qatar Islamic Bank (QISB.QA) rising 2.5%.
Saudi Arabia's benchmark index (.TASI), however, fell 0.5%, nearing a six month low, hit by a 1.3% fall in top lender Saudi National Bank (1180.SE).
Oil prices, a key catalyst for the Gulf's financial markets, fell as investors weighed tight supplies against the prospect of a large U.S. rate hike that could stem inflation and curb crude demand.
#Saudi June inflation up slightly to 2.3% | Reuters
Saudi June inflation up slightly to 2.3% | Reuters
Saudi Arabia's consumer price index climbed 2.3% in June, inching back up to a pace reached in April, as prices were again pushed higher by rising food, beverage and transport costs, government data showed on Thursday.
Food and beverage prices rose 4.4%, and transport was up 2.5%, Saudi Arabia's General Authority for Statistics said in a statement.
Consumer prices rose 0.2% in June compared to the previous month.
In May, inflation was at 2.2% on a yearly basis and 0.1% on a monthly basis. read more
Saudi Arabia's consumer price index climbed 2.3% in June, inching back up to a pace reached in April, as prices were again pushed higher by rising food, beverage and transport costs, government data showed on Thursday.
Food and beverage prices rose 4.4%, and transport was up 2.5%, Saudi Arabia's General Authority for Statistics said in a statement.
Consumer prices rose 0.2% in June compared to the previous month.
In May, inflation was at 2.2% on a yearly basis and 0.1% on a monthly basis. read more
Oil prices fall ahead of potential large U.S. rate hike | Reuters
Oil prices fall ahead of potential large U.S. rate hike | Reuters
Oil prices fell on Thursday as investors weighed tight supplies against the prospect of a large U.S. rate hike that could stem inflation and curb crude demand.
Brent crude futures for September were down 18 cents to $99.39 a barrel at 0727 GMT after settling below $100 for the second straight session on Wednesday.
U.S. West Texas Intermediate crude for August delivery was at $95.84 a barrel, down 43 cents.
Oil prices have tumbled in the past two weeks on recession concerns despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya. read more
"It is all sentiment driven at the moment and that has caused most of the losses seen in oil markets over the last few weeks," said Howie Lee, an economist at Singapore's OCBC bank.
Oil prices fell on Thursday as investors weighed tight supplies against the prospect of a large U.S. rate hike that could stem inflation and curb crude demand.
Brent crude futures for September were down 18 cents to $99.39 a barrel at 0727 GMT after settling below $100 for the second straight session on Wednesday.
U.S. West Texas Intermediate crude for August delivery was at $95.84 a barrel, down 43 cents.
Oil prices have tumbled in the past two weeks on recession concerns despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya. read more
"It is all sentiment driven at the moment and that has caused most of the losses seen in oil markets over the last few weeks," said Howie Lee, an economist at Singapore's OCBC bank.