Oil gains $5 on weaker dollar, tight supplies | Reuters
Oil prices rose more than $5 on Monday, boosted by dollar weakness and expectations that the U.S. Federal Reserve won't raise interest rates by a full percentage point at its next meeting to combat inflation.
Brent crude futures for September settlement gained $5.11, or 5.1%, to settle at $106.27 a barrel, after rising 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery settled up $5.01, or 5.1%, at $102.60 after rising by 1.9% in the previous session.
On Friday two U.S. Federal Reserve officials indicated the central bank would likely only raise interest rates by 75 basis points at its July 26-27 meeting. Previous reports that the Fed was considering a 100 basis point decision sent markets lower late last week.
Monday, 18 July 2022
#Qatar Airways Mulls Boeing 777X Deal in Boost to Flagging Sales - Bloomberg
Qatar Airways Mulls Boeing 777X Deal in Boost to Flagging Sales - Bloomberg
Qatar Airways is considering another order for Boeing Co.’s 777X jetliner, a potential boost for the hulking airplane that’s running years behind schedule and struggling to gain sales.
When asked if Qatar intends to stick with the 777X, Chief Executive Officer Akbar Al Baker responded, “Absolutely, we will even give them a bigger order.”
The Doha-based carrier is a launch customer for both passenger and freighter versions of the new 777 family, the largest aircraft in Boeing’s product line-up and an heir to the hump-backed 747 jumbo, whose production is slated to end in a few months.
Al Baker didn’t specify which version he’s considering or any potential deal size. He affirmed his interest in the 777X to reporters at the Farnborough International Airshow in the wake of the latest delay, which pushes the jet’s commercial debut to 2025 -- about five years behind schedule.
Qatar Airways is considering another order for Boeing Co.’s 777X jetliner, a potential boost for the hulking airplane that’s running years behind schedule and struggling to gain sales.
When asked if Qatar intends to stick with the 777X, Chief Executive Officer Akbar Al Baker responded, “Absolutely, we will even give them a bigger order.”
The Doha-based carrier is a launch customer for both passenger and freighter versions of the new 777 family, the largest aircraft in Boeing’s product line-up and an heir to the hump-backed 747 jumbo, whose production is slated to end in a few months.
Al Baker didn’t specify which version he’s considering or any potential deal size. He affirmed his interest in the 777X to reporters at the Farnborough International Airshow in the wake of the latest delay, which pushes the jet’s commercial debut to 2025 -- about five years behind schedule.
Oil market sees support from physical tightness | Reuters
Oil market sees support from physical tightness | Reuters
Benchmark oil prices have dropped by about $15 a barrel in the past 10 days as the threat of recession clouds the demand outlook, but the physical oil trade and the futures market structure tell a quite different story.
Growing concern about the economic outlook pushed Brent crude below $100 a barrel last week for the first time since April.
But in the physical market, premiums have been at record levels. Nigerian Qua Iboe crude was offered at $11.50 a barrel above dated Brent this week, while North Sea grade Forties was bid at dated Brent plus $5.35 on Tuesday - both all-time highs.
And while the outright Brent price has fallen almost 20% since May, the premium at which the nearby contract is trading to the second month - a structure known as backwardation, which implies tight prompt supply - has widened to $4.09 a barrel.
That suggests strong underlying support for near-term prices despite the drop in the benchmark Brent contract.
"Outright prices and the structure are out of sync," said Tamas Varga of oil broker PVM. "It implies genuine strength on the physical front that goes against the sentiment in the futures market."
Benchmark oil prices have dropped by about $15 a barrel in the past 10 days as the threat of recession clouds the demand outlook, but the physical oil trade and the futures market structure tell a quite different story.
Growing concern about the economic outlook pushed Brent crude below $100 a barrel last week for the first time since April.
But in the physical market, premiums have been at record levels. Nigerian Qua Iboe crude was offered at $11.50 a barrel above dated Brent this week, while North Sea grade Forties was bid at dated Brent plus $5.35 on Tuesday - both all-time highs.
And while the outright Brent price has fallen almost 20% since May, the premium at which the nearby contract is trading to the second month - a structure known as backwardation, which implies tight prompt supply - has widened to $4.09 a barrel.
That suggests strong underlying support for near-term prices despite the drop in the benchmark Brent contract.
"Outright prices and the structure are out of sync," said Tamas Varga of oil broker PVM. "It implies genuine strength on the physical front that goes against the sentiment in the futures market."
#Saudi index outperforms Gulf peers as oil prices rise | Reuters
Saudi index outperforms Gulf peers as oil prices rise | Reuters
Most stock markets in the Gulf ended higher on Monday as an uptick in oil prices lifted sentiment in the oil-producing region, with the Saudi index leading the gains.
Crude prices, a key catalyst for the Gulf's financial markets, extended gains on a weaker dollar and tight supplies as concerns deepened around gas shipments from Russia. read more
The benchmark Saudi Arabian index (.TASI) added 2.3%, buoyed by a 3.3% rise in Riyad Bank (1010.SE) and a 2.8% increase in Banque Saudi Fransi (1050.SE).
The Saudi market saw a positive performance after the U.S. president's visit and as oil prices rose, said Farah Mourad, senior market analyst of XTB MENA.
"However, the market remains exposed to another round of price corrections since global economic conditions remain uncertain," Mourad added.
The recent pullback in oil prices and mounting recession fears had pushed the Saudi index to its lowest in more than six months on Thursday.
In Dubai, the main share index (.DFMGI) rose 0.3% on the back of a 2.7% jump in blue-chip developer Emaar Properties (EMAR.DU).
On the other hand, emirati supermarket chain Union Coop plunged about 9% in its market debut. The company, which operates 23 branches, is the largest consumer cooperative in the UAE, according to its website.
The Abu Dhabi market (.FTFADGI) edged 0.1% higher, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) rising 0.3%.
The Qatari index (.QSI) finished 1% higher, driven by a 10% jump in Qatar Navigation (Milaha) (QNNC.QA) after the shipping conglomerate won a more than 1.4 billion riyals ($384.62 million) contract from QatarEnergy.
Outside the Gulf, EGypt's blue-chip index (.EGX30) gained 1.1% as most of the stocks on the index were in positive territory.
Crude prices, a key catalyst for the Gulf's financial markets, extended gains on a weaker dollar and tight supplies as concerns deepened around gas shipments from Russia. read more
The benchmark Saudi Arabian index (.TASI) added 2.3%, buoyed by a 3.3% rise in Riyad Bank (1010.SE) and a 2.8% increase in Banque Saudi Fransi (1050.SE).
The Saudi market saw a positive performance after the U.S. president's visit and as oil prices rose, said Farah Mourad, senior market analyst of XTB MENA.
"However, the market remains exposed to another round of price corrections since global economic conditions remain uncertain," Mourad added.
The recent pullback in oil prices and mounting recession fears had pushed the Saudi index to its lowest in more than six months on Thursday.
In Dubai, the main share index (.DFMGI) rose 0.3% on the back of a 2.7% jump in blue-chip developer Emaar Properties (EMAR.DU).
On the other hand, emirati supermarket chain Union Coop plunged about 9% in its market debut. The company, which operates 23 branches, is the largest consumer cooperative in the UAE, according to its website.
The Abu Dhabi market (.FTFADGI) edged 0.1% higher, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) rising 0.3%.
The Qatari index (.QSI) finished 1% higher, driven by a 10% jump in Qatar Navigation (Milaha) (QNNC.QA) after the shipping conglomerate won a more than 1.4 billion riyals ($384.62 million) contract from QatarEnergy.
Outside the Gulf, EGypt's blue-chip index (.EGX30) gained 1.1% as most of the stocks on the index were in positive territory.
Oil jumps on soft dollar and supply jitters | Reuters
Oil jumps on soft dollar and supply jitters | Reuters
Oil prices extended gains on Monday, boosted by a weaker dollar and tight supplies as concerns over gas supply from Russia mounted, offsetting demand fears brought on by a possible recession and China lockdowns.
Brent crude futures for September settlement rose by $2.34, or 2.3%, to $103.50 a barrel by 1235 GMT, having gained 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery were up $1.89, or 1.9%, at $99.48 after rising by 1.9% in the previous session.
Both Brent and WTI last week registered their biggest weekly declines for about a month on fears of a recession that would hit oil demand.
Russian gas export monopoly Gazprom declared force majeure on gas supplies to Europe to at least one major customer, according to the letter seen by Reuters, potentially ratcheting up the continent's supply crunch. read more
Oil prices extended gains on Monday, boosted by a weaker dollar and tight supplies as concerns over gas supply from Russia mounted, offsetting demand fears brought on by a possible recession and China lockdowns.
Brent crude futures for September settlement rose by $2.34, or 2.3%, to $103.50 a barrel by 1235 GMT, having gained 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery were up $1.89, or 1.9%, at $99.48 after rising by 1.9% in the previous session.
Both Brent and WTI last week registered their biggest weekly declines for about a month on fears of a recession that would hit oil demand.
Russian gas export monopoly Gazprom declared force majeure on gas supplies to Europe to at least one major customer, according to the letter seen by Reuters, potentially ratcheting up the continent's supply crunch. read more
#Dubai’s Union Coop Slumps on Debut as Gulf IPO Boom Loses Steam - Bloomberg
Dubai’s Union Coop Slumps on Debut as Gulf IPO Boom Loses Steam - Bloomberg
Union Coop traded 18% below an indicated price on its Dubai debut, the latest sign of waning demand for Middle Eastern offerings.
Shares in the supermarket operator pared some losses to trade down 13% at 3.41 dirhams at 12 p.m. in Dubai, valuing the company at 6 billion dirhams ($1.64 billion.) The indicative share price had been set at 3.9 dirhams.
Union Coop’s slump is the latest indication that the Gulf IPO boom may be losing momentum. The Middle East was one of the few bright spots in the market for new share sales, but demand for risky assets has waned and equity benchmarks are trading well below their peaks in May.
Business park operator Tecom Group slumped 17% on debut this month, becoming the first Dubai listing in over four years to end the day in the red. Dubai Electricity & Water Authority surged 20% on debut in April, but has since given up most gains.
The slowdown is hitting listings in neighboring Saudi Arabia as well. The Al Othaim family scrapped plans to sell shares in its malls business this month, while shares in developer Retal Urban Development Co. are down about 1% since listing in Riyadh.
Dubai said in November it plans to sell shares in 10 companies, and has been encouraging private and family-owned businesses to follow suit. The United Arab Emirates, of which Dubai is part, in February allowed cooperative societies in the country to list shares locally.
The city is planning to privatize its Salik road-toll collection system later this year.
Union Coop traded 18% below an indicated price on its Dubai debut, the latest sign of waning demand for Middle Eastern offerings.
Shares in the supermarket operator pared some losses to trade down 13% at 3.41 dirhams at 12 p.m. in Dubai, valuing the company at 6 billion dirhams ($1.64 billion.) The indicative share price had been set at 3.9 dirhams.
Union Coop’s slump is the latest indication that the Gulf IPO boom may be losing momentum. The Middle East was one of the few bright spots in the market for new share sales, but demand for risky assets has waned and equity benchmarks are trading well below their peaks in May.
Business park operator Tecom Group slumped 17% on debut this month, becoming the first Dubai listing in over four years to end the day in the red. Dubai Electricity & Water Authority surged 20% on debut in April, but has since given up most gains.
The slowdown is hitting listings in neighboring Saudi Arabia as well. The Al Othaim family scrapped plans to sell shares in its malls business this month, while shares in developer Retal Urban Development Co. are down about 1% since listing in Riyadh.
Dubai said in November it plans to sell shares in 10 companies, and has been encouraging private and family-owned businesses to follow suit. The United Arab Emirates, of which Dubai is part, in February allowed cooperative societies in the country to list shares locally.
The city is planning to privatize its Salik road-toll collection system later this year.
Mideast Stocks: Major Gulf bourses gain in early trade
Mideast Stocks: Major Gulf bourses gain in early trade
Major stock markets in the Gulf rose on Monday, tracking oil prices and Asian shares higher, with the Dubai index on course to gain for a third session.
Saudi Arabia's benchmark index added 0.4%, led by a 0.6% rise in Al Rajhi Bank and a 0.7% increase in oil behemoth Saudi Aramco.
Crude prices, a key catalyst for the Gulf's financial markets, extended gains propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
Last week, Brent crude and U.S. West Texas Intermediate (WTI) crude posted their biggest weekly drops in about a month on fears of a recession that will hit oil demand. Mass COVID testing exercises continued in parts of China this week, raising oil demand concerns at the world's second-largest oil consumer.
Dubai's main share index added 0.5%, with blue-chip developer Emaar Properties advancing 1.7% and diversified investment group Dubai Investments leaping 2.3%.
However, emirati supermarket chain Union Coop plunged more than 11% in its debut trade.
Union Coop, which operates 23 branches, is the largest consumer cooperative in the UAE, according to its website.
In Abu Dhabi, the index edged 0.1% higher, helped by a 0.3% increase in conglomerate International Holding .
Separately, the United Arab Emirates on Sunday launched a 3 billion UAE dirham ($816.84 million) fund to support its space programme and a new initiative to develop radar satellites, the Gulf country's president Sheikh Mohammed bin Zayed al-Nahyan said on Twitter.
The Qatari index rose 0.6%, driven by a 10% jump in Qatar Navigation (Milaha) after the shipping conglomerate won engineering, procurement, construction and installation (EPCI) contract from QatarEnergy valued at more than 1.4 billion riyals ($384.62 million).
Major stock markets in the Gulf rose on Monday, tracking oil prices and Asian shares higher, with the Dubai index on course to gain for a third session.
Saudi Arabia's benchmark index added 0.4%, led by a 0.6% rise in Al Rajhi Bank and a 0.7% increase in oil behemoth Saudi Aramco.
Crude prices, a key catalyst for the Gulf's financial markets, extended gains propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
Last week, Brent crude and U.S. West Texas Intermediate (WTI) crude posted their biggest weekly drops in about a month on fears of a recession that will hit oil demand. Mass COVID testing exercises continued in parts of China this week, raising oil demand concerns at the world's second-largest oil consumer.
Dubai's main share index added 0.5%, with blue-chip developer Emaar Properties advancing 1.7% and diversified investment group Dubai Investments leaping 2.3%.
However, emirati supermarket chain Union Coop plunged more than 11% in its debut trade.
Union Coop, which operates 23 branches, is the largest consumer cooperative in the UAE, according to its website.
In Abu Dhabi, the index edged 0.1% higher, helped by a 0.3% increase in conglomerate International Holding .
Separately, the United Arab Emirates on Sunday launched a 3 billion UAE dirham ($816.84 million) fund to support its space programme and a new initiative to develop radar satellites, the Gulf country's president Sheikh Mohammed bin Zayed al-Nahyan said on Twitter.
The Qatari index rose 0.6%, driven by a 10% jump in Qatar Navigation (Milaha) after the shipping conglomerate won engineering, procurement, construction and installation (EPCI) contract from QatarEnergy valued at more than 1.4 billion riyals ($384.62 million).
Oil jumps as soft dollar and tight supply supports | Reuters
Oil jumps as soft dollar and tight supply supports | Reuters
Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
Brent crude futures for September settlement rose $2.44, or 2.4%, to $103.60 a barrel by 0900 GMT, having advanced by 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery gained $2.17, or 2.2%, to $99.76 after rising by 1.9% in the previous session.
Both Brent and WTI last week registered their biggest weekly declines for about a month on fears of a recession that would hit oil demand. Mass COVID-testing exercises continue in parts of China this week, raising concerns over oil demand from the world's second-largest oil consumer. read more
However, oil supplies remain tight. As expected, U.S. President Joe Biden's trip to Saudi Arabia failed to yield any pledge from the top OPEC producer to boost oil supply. read more
Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
Brent crude futures for September settlement rose $2.44, or 2.4%, to $103.60 a barrel by 0900 GMT, having advanced by 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery gained $2.17, or 2.2%, to $99.76 after rising by 1.9% in the previous session.
Both Brent and WTI last week registered their biggest weekly declines for about a month on fears of a recession that would hit oil demand. Mass COVID-testing exercises continue in parts of China this week, raising concerns over oil demand from the world's second-largest oil consumer. read more
However, oil supplies remain tight. As expected, U.S. President Joe Biden's trip to Saudi Arabia failed to yield any pledge from the top OPEC producer to boost oil supply. read more