U.S. crude ends below $95/bbl as EU tweaks Russian oil sanctions | Reuters
U.S. crude prices settled below $95 a barrel for the first time since April in choppy trading on Friday after the European Union said it would allow Russian state-owned companies to ship oil to third countries under an adjustment of sanctions agreed by member states this week.
U.S. West Texas Intermediate crude (WTI) settled $1.65, or 1.7%, lower at $94.70 a barrel, while Brent crude futures fell 66 cents, or 0.6%, to $103.20.
WTI closed lower for the third straight week, pummelled over the past two sessions after data showed that U.S. gasoline demand had dropped nearly 8% from a year earlier in the midst of the peak summer driving season, hit by record prices at the pump. read more
In contrast, signs of strong demand in Asia propped up the Brent benchmark, which settled higher for the first time in six weeks.
Trading in oil futures has been volatile in recent weeks as traders try to reconcile possibilities of further interest rate hikes that could cut demand against tight supply from the loss of Russian barrels.
Friday, 22 July 2022
Oil prices rise 1% on supply concerns after price cap on Russian oil | Reuters
Oil prices rise 1% on supply concerns after price cap on Russian oil | Reuters
Oil prices rose more than 1% on Friday after Russia said it won't supply crude to countries that decide to impose a price cap on its oil.
Brent crude futures climbed $1.39, or 1.3%, to $105.25 a barrel by 12:10 p.m. ET (1410 GMT), while U.S. West Texas Intermediate crude (WTI) rose 90 cents, or 0.9%, to $97.03 a barrel.
Russian Central Bank Governor Elvira Nabiullina said crude and oil products will be redirected to countries which are ready to "cooperate" with Russia, adding that a cap would spur on global oil prices. read more
"Perceptions are growing that the U.S. and EU will implement price caps on Russian oil by year end," said Dennis Kissler, senior vice president of trading at BOK Financial.
"Past history shows that government-induced price caps on commodities are usually short lived and can result in exaggerated prices soon after," he added.
Oil prices rose more than 1% on Friday after Russia said it won't supply crude to countries that decide to impose a price cap on its oil.
Brent crude futures climbed $1.39, or 1.3%, to $105.25 a barrel by 12:10 p.m. ET (1410 GMT), while U.S. West Texas Intermediate crude (WTI) rose 90 cents, or 0.9%, to $97.03 a barrel.
Russian Central Bank Governor Elvira Nabiullina said crude and oil products will be redirected to countries which are ready to "cooperate" with Russia, adding that a cap would spur on global oil prices. read more
"Perceptions are growing that the U.S. and EU will implement price caps on Russian oil by year end," said Dennis Kissler, senior vice president of trading at BOK Financial.
"Past history shows that government-induced price caps on commodities are usually short lived and can result in exaggerated prices soon after," he added.
Russia's Putin, #Saudi Crown Prince MBS Agree OPEC+ Should Keep Cooperating - Bloomberg
Russia's Putin, Saudi Crown Prince MBS Agree OPEC+ Should Keep Cooperating - Bloomberg
Russia’s President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman discussed continued cooperation within OPEC+ in a phone call on Thursday, according to a statement from the Kremlin.
“It was emphasized that a further coordination within OPEC+ is important,” according to the statement. “It was noted with satisfaction that member states are consistently meeting their obligations to support the necessary balance and stability in the global energy market.”
The phone call between Russia’s president and the de-facto Saudi leader comes less than two weeks before the Organization of Petroleum Exporting Countries and its allies meet to discuss production strategy. Those talks could determine whether the group delivers additional oil, as requested by US President Joe Biden earlier this month in a visit to the Middle Eastern kingdom.
Russia’s President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman discussed continued cooperation within OPEC+ in a phone call on Thursday, according to a statement from the Kremlin.
“It was emphasized that a further coordination within OPEC+ is important,” according to the statement. “It was noted with satisfaction that member states are consistently meeting their obligations to support the necessary balance and stability in the global energy market.”
The phone call between Russia’s president and the de-facto Saudi leader comes less than two weeks before the Organization of Petroleum Exporting Countries and its allies meet to discuss production strategy. Those talks could determine whether the group delivers additional oil, as requested by US President Joe Biden earlier this month in a visit to the Middle Eastern kingdom.
#AbuDhabi’s Wealth Fund Buys Stake in CVC-Owned TMF Group - Bloomberg
Abu Dhabi’s Wealth Fund Buys Stake in CVC-Owned TMF Group - Bloomberg
Abu Dhabi Investment Authority has agreed to invest in TMF Group, the corporate-trust services provider owned by CVC Capital Partners that had been exploring an initial public offering, according to people familiar with the matter.
The Middle East sovereign wealth fund will take a significant minority stake in TMF and a seat on the company’s board, the people said, asking not to be identified discussing confidential information.
TMF provides services including bookkeeping, payroll, fund administration and compliance to multinational corporations and financial institutions. CVC agreed to buy the company in 2017 for a total consideration of 1.75 billion euros ($1.78 billion). TMF expects to post double-digit revenue growth this year, the people said.
Representatives for ADIA, CVC and TMF declined to comment.
Earlier this year, CVC considered taking TMF public. That was before the market for listings was hit by multiple risk factors, including inflation, hawkish central bank policy, the war in Ukraine and threat of recessions. As a result, IPO candidates are increasingly exploring other options for raising funds.
CVC in 2021 attempted to take over Dutch tax administration specialist Intertrust NV and merge it with TMF in a deal that would have created a global giant in tax administration and corporate trust services. It lost out to rival bidder CSC, a US provider of compliance and legal services.
Abu Dhabi Investment Authority has agreed to invest in TMF Group, the corporate-trust services provider owned by CVC Capital Partners that had been exploring an initial public offering, according to people familiar with the matter.
The Middle East sovereign wealth fund will take a significant minority stake in TMF and a seat on the company’s board, the people said, asking not to be identified discussing confidential information.
TMF provides services including bookkeeping, payroll, fund administration and compliance to multinational corporations and financial institutions. CVC agreed to buy the company in 2017 for a total consideration of 1.75 billion euros ($1.78 billion). TMF expects to post double-digit revenue growth this year, the people said.
Representatives for ADIA, CVC and TMF declined to comment.
Earlier this year, CVC considered taking TMF public. That was before the market for listings was hit by multiple risk factors, including inflation, hawkish central bank policy, the war in Ukraine and threat of recessions. As a result, IPO candidates are increasingly exploring other options for raising funds.
CVC in 2021 attempted to take over Dutch tax administration specialist Intertrust NV and merge it with TMF in a deal that would have created a global giant in tax administration and corporate trust services. It lost out to rival bidder CSC, a US provider of compliance and legal services.
Top lender FAB lifts #AbuDhabi shares, #Dubai closes flat | Reuters
Top lender FAB lifts Abu Dhabi shares, Dubai closes flat | Reuters
Abu Dhabi stocks ended higher on Friday, boosted by a rise in heavyweight First Abu Dhabi Bank (FAB.AD) following strong earnings from peers this week, while the Dubai market ended flat in volatile trading.
The index (.FTFADGI) closed 0.7% higher, buoyed by a 1.4% gain in First Abu Dhabi Bank which is set to report earnings on July 27, and a 2.3% jump in conglomerate International Holding Company (IHC.AD).
Among other stocks, Easy Lease Motor Cycle Rental (EASYLEASE.AD) advanced 2.1% after the company reported strong growth in quarterly earnings.
Separately, The United Arab Emirates' economy grew by an estimated 8.2% in the first quarter, buoyed by higher oil production, the central bank said on Wednesday.
Real gross domestic product (GDP) is expected to grow 5.4% this year and 4.2% next year, the central bank said.
Dubai's benchmark index (.DFMGI) reversed early gains to close flat. However, insurance firm Dar Al Takaful jumped 3.3% following the announcement that Ali Saeed Bin Harmal Aldhaheri had been elected as chairman of its board.
The Dubai stock market could see price corrections if investors move to secure their gains in the current uncertain atmosphere. Strong company earnings could provide some support, said Fadi Reyad, Market Analyst at CAPEX.com
Abu Dhabi stocks ended higher on Friday, boosted by a rise in heavyweight First Abu Dhabi Bank (FAB.AD) following strong earnings from peers this week, while the Dubai market ended flat in volatile trading.
The index (.FTFADGI) closed 0.7% higher, buoyed by a 1.4% gain in First Abu Dhabi Bank which is set to report earnings on July 27, and a 2.3% jump in conglomerate International Holding Company (IHC.AD).
Among other stocks, Easy Lease Motor Cycle Rental (EASYLEASE.AD) advanced 2.1% after the company reported strong growth in quarterly earnings.
Separately, The United Arab Emirates' economy grew by an estimated 8.2% in the first quarter, buoyed by higher oil production, the central bank said on Wednesday.
Real gross domestic product (GDP) is expected to grow 5.4% this year and 4.2% next year, the central bank said.
Dubai's benchmark index (.DFMGI) reversed early gains to close flat. However, insurance firm Dar Al Takaful jumped 3.3% following the announcement that Ali Saeed Bin Harmal Aldhaheri had been elected as chairman of its board.
The Dubai stock market could see price corrections if investors move to secure their gains in the current uncertain atmosphere. Strong company earnings could provide some support, said Fadi Reyad, Market Analyst at CAPEX.com
Oil prices fall as Libya resumes output, global demand outlook darkens | Reuters
Oil prices fall as Libya resumes output, global demand outlook darkens | Reuters
Oil prices fell on Friday on a weakening global demand outlook and the resumption of some Libyan crude oil output.
Brent crude futures fell 55 cents to $103.32 a barrel by 1251 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down $1.05 to $95.30 a barrel.
The global economy looks increasingly likely to be heading into a serious slowdown, just as central banks aggressively reverse ultra-loose monetary policy adopted during the pandemic to support growth, data showed on Friday. read more
"Things are still negative on the economic front, but we are still in a structural shortfall for prompt oil and that means physical buyers will be there to support dips knowing the uncertainty of what lies ahead on the geopolitical front," said Stephen Innes, managing partner at SPI Asset Management.
Innes said investors had next week's U.S. Federal Reserve decision on interest rates firmly on their minds. Fed officials have indicated that the central bank would likely raise rates by 75 basis points at its July 26-27 meeting.
Oil prices fell on Friday on a weakening global demand outlook and the resumption of some Libyan crude oil output.
Brent crude futures fell 55 cents to $103.32 a barrel by 1251 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down $1.05 to $95.30 a barrel.
The global economy looks increasingly likely to be heading into a serious slowdown, just as central banks aggressively reverse ultra-loose monetary policy adopted during the pandemic to support growth, data showed on Friday. read more
"Things are still negative on the economic front, but we are still in a structural shortfall for prompt oil and that means physical buyers will be there to support dips knowing the uncertainty of what lies ahead on the geopolitical front," said Stephen Innes, managing partner at SPI Asset Management.
Innes said investors had next week's U.S. Federal Reserve decision on interest rates firmly on their minds. Fed officials have indicated that the central bank would likely raise rates by 75 basis points at its July 26-27 meeting.
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