Oil settles down on lower U.S. consumer confidence, coming SPR release | Reuters
Oil prices reversed early gains and settled lower on Tuesday, as investors worried about lower consumer confidence and braced for another 20 million barrels of crude oil to be released from the U.S Strategic Petroleum Reserve.
Brent crude futures fell 75 cents, or 0.7%, to settle at $104.40. U.S. West Texas Intermediate (WTI) crude fell $1.72 cents, or 1.8%, to $94.98.
The Biden administration said it will sell an additional 20 million barrels of SPR crude oil as part of a previous plan to tap the facility to calm oil prices boosted by Russia’s invasion of Ukraine in February and recovery in demand that cratered early in the pandemic.
In late March, the administration said it would release a record 1 million barrels per day of SPR crude oil for six months. read more
"The market reacts to these SPR announcement and has helped keep a lid on things, to an extent," said John Kilduff, partner at Again Capital LLC in New York.
U.S. consumer confidence dropped to nearly a 1-1/2-year low in July on nagging worries about inflation and rising interest rates, a Conference Board survey showed. read more It also showed consumers were less optimistic about the labor market.
Tuesday, 26 July 2022
#Saudi Family Office Builds Largest Stake in Israel’s Otonomo - Bloomberg
Saudi Family Office Builds Largest Stake in Israel’s Otonomo - Bloomberg
A Saudi family investment vehicle with ties to the world’s largest Islamic bank has become the biggest shareholder in Israeli mobility intelligence company Otonomo Technologies Ltd.
Mithaq Capital SPC, a family office for the AlRajhi family that is incorporated in the Cayman Islands but headquartered in Riyadh, recently increased its stake in the Israel-based company to 20.41%, according to a July 20 regulatory filing.
Israel and Saudi Arabia do not have official diplomatic or business ties, although they are believed to have security and defense links based around their shared concerns over Iran’s regional ambitions.
The two Middle Eastern countries agreed to a number of small steps that fell short of the normalization of ties during US President Joe Biden’s recent visit to the region, with Saudi Arabia agreeing to ease flight restrictions over its airspace for commercial airlines traveling to and from Tel Aviv.
A Saudi family investment vehicle with ties to the world’s largest Islamic bank has become the biggest shareholder in Israeli mobility intelligence company Otonomo Technologies Ltd.
Mithaq Capital SPC, a family office for the AlRajhi family that is incorporated in the Cayman Islands but headquartered in Riyadh, recently increased its stake in the Israel-based company to 20.41%, according to a July 20 regulatory filing.
Israel and Saudi Arabia do not have official diplomatic or business ties, although they are believed to have security and defense links based around their shared concerns over Iran’s regional ambitions.
The two Middle Eastern countries agreed to a number of small steps that fell short of the normalization of ties during US President Joe Biden’s recent visit to the region, with Saudi Arabia agreeing to ease flight restrictions over its airspace for commercial airlines traveling to and from Tel Aviv.
#Kuwait Wealth Fund’s London Chief Removal Exposes Internal Feud - Bloomberg
Kuwait Wealth Fund’s London Chief Removal Exposes Internal Feud - Bloomberg
The abrupt departure of a key executive at the $769 billion Kuwait Investment Authority was triggered by an internal feud, a spat that’s offering a rare public glimpse into the workings of the secretive fund.
The KIA last week removed the head of its London arm, Saleh Al-Ateeqi. In question is whether Al-Ateeqi was a reformer looking to modernize the direct investing arm of Kuwait’s wealth fund, or an executive who fueled a toxic culture that led to departures and lawsuits, according to people with direct knowledge of the dispute.
Al-Ateeqi’s removal highlights internal divisions within the Kuwaiti fund that risk spilling out into the public domain. Such spats are unusual in the Middle East, where sovereign funds -- key tools for oil-rich states to diversify their economies -- operate in secrecy at the highest ranks of society. Some have tried to modernize, with Mubadala, Qatar Investment Authority and Abu Dhabi Investment Authority among entities who’ve revamped their approach to investing.
A former McKinsey & Co. partner, Al-Ateeqi was hired in 2018 to modernize the Kuwait Investment Office, or KIO as the London branch is known. Unlike its parent, the KIO mainly invests directly, predominantly in public equities and fixed income. It wasn’t immediately clear if his ouster would lead to a change in strategy.
A representative for Al-Ateeqi declined to comment. The Kuwait Investment Authority wasn’t immediately available for comment.
The KIA last week removed the head of its London arm, Saleh Al-Ateeqi. In question is whether Al-Ateeqi was a reformer looking to modernize the direct investing arm of Kuwait’s wealth fund, or an executive who fueled a toxic culture that led to departures and lawsuits, according to people with direct knowledge of the dispute.
Al-Ateeqi’s removal highlights internal divisions within the Kuwaiti fund that risk spilling out into the public domain. Such spats are unusual in the Middle East, where sovereign funds -- key tools for oil-rich states to diversify their economies -- operate in secrecy at the highest ranks of society. Some have tried to modernize, with Mubadala, Qatar Investment Authority and Abu Dhabi Investment Authority among entities who’ve revamped their approach to investing.
A former McKinsey & Co. partner, Al-Ateeqi was hired in 2018 to modernize the Kuwait Investment Office, or KIO as the London branch is known. Unlike its parent, the KIO mainly invests directly, predominantly in public equities and fixed income. It wasn’t immediately clear if his ouster would lead to a change in strategy.
A representative for Al-Ateeqi declined to comment. The Kuwait Investment Authority wasn’t immediately available for comment.
Most Gulf bourses rebound on rising crude prices | Reuters
Most Gulf bourses rebound on rising crude prices | Reuters
Most stock markets in the Gulf rebounded on Tuesday amid rising oil prices, although the Abu Dhabi index bucked the trend to close lower.
Crude prices, a key catalyst for the Gulf's financial markets, rose for a second day on increasing concerns about tightening European supply after Russia, a key energy supplier to the region, cut gas supply through a major pipeline.
Europe's crude, oil product and gas supplies have been disrupted by a combination of Western sanctions and payment disputes with Russia since its Feb. 24 invasion of Ukraine, which Moscow calls a "special military operation."
Saudi Arabia's benchmark index (.TASI) gained 0.8%, with Banque Saudi Fransi (1050.SE) advancing 2% and Arab National Bank (1080.SE) putting on 1.7%.
Saudi Crown Prince Mohammed bin Salman said the NEOM business zone would likely be publicly listed in 2024, al-Ekhbariya TV reported. read more
"NEOM will add a trillion riyals ($266 billion) to the Saudi stock market value. At least 1.2 trillion riyals in the beginning and the overall will increase after project completion to exceed 5 trillion," said the crown prince, who is the kingdom's de-facto ruler.
The Qatari benchmark (.QSI) gained 0.6%, with Qatar Navigation (QNNC.QA) advancing 5%.
The Qatari stock market extended its gains boosted by the rise in natural gas prices, said Farah Mourad, senior market analyst of XTB MENA.
"Russia's steps to reduce volumes could create an opportunity for Qatari energy exports."
Dubai's main share index (.DFMGI) finished 0.4% higher, led by a 1.1% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%, hit by a 1.7% fall in telecoms firm e&, formerly called Etisalat (ETISALAT.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%, boosted by a 1.5% increase in top lender Commercial International Bank (COMI.CA), a day after it reported a rise in second-quarter profit.
The Egyptian bourse saw a small rebound as international investors returned, according to Mourad.
"The market could find some support thanks to the effort Russia is deploying to secure grain delivery to Egypt."
Most stock markets in the Gulf rebounded on Tuesday amid rising oil prices, although the Abu Dhabi index bucked the trend to close lower.
Crude prices, a key catalyst for the Gulf's financial markets, rose for a second day on increasing concerns about tightening European supply after Russia, a key energy supplier to the region, cut gas supply through a major pipeline.
Europe's crude, oil product and gas supplies have been disrupted by a combination of Western sanctions and payment disputes with Russia since its Feb. 24 invasion of Ukraine, which Moscow calls a "special military operation."
Saudi Arabia's benchmark index (.TASI) gained 0.8%, with Banque Saudi Fransi (1050.SE) advancing 2% and Arab National Bank (1080.SE) putting on 1.7%.
Saudi Crown Prince Mohammed bin Salman said the NEOM business zone would likely be publicly listed in 2024, al-Ekhbariya TV reported. read more
"NEOM will add a trillion riyals ($266 billion) to the Saudi stock market value. At least 1.2 trillion riyals in the beginning and the overall will increase after project completion to exceed 5 trillion," said the crown prince, who is the kingdom's de-facto ruler.
The Qatari benchmark (.QSI) gained 0.6%, with Qatar Navigation (QNNC.QA) advancing 5%.
The Qatari stock market extended its gains boosted by the rise in natural gas prices, said Farah Mourad, senior market analyst of XTB MENA.
"Russia's steps to reduce volumes could create an opportunity for Qatari energy exports."
Dubai's main share index (.DFMGI) finished 0.4% higher, led by a 1.1% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%, hit by a 1.7% fall in telecoms firm e&, formerly called Etisalat (ETISALAT.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%, boosted by a 1.5% increase in top lender Commercial International Bank (COMI.CA), a day after it reported a rise in second-quarter profit.
The Egyptian bourse saw a small rebound as international investors returned, according to Mourad.
"The market could find some support thanks to the effort Russia is deploying to secure grain delivery to Egypt."
Aviation sector will be disrupted for years, #Qatar Airways boss says | Financial Times
Aviation sector will be disrupted for years, Qatar Airways boss says | Financial Times
The chief executive of Qatar Airways has warned that disruption across the aviation industry will last for years as companies recover from the effects of the pandemic.
“Covid has damaged the supply chain of the industry . . . I think that it will last for a couple of years — it is not going to go away tomorrow,” Akbar Al Baker told the Financial Times in an interview.
Labour shortages in Europe, delays in aircraft deliveries from manufacturers and a lack of spare parts had all affected Qatar Airways, he added.
Guillaume Faury, chief executive of the world’s largest plane maker Airbus, last week said he expected supply chain issues to continue into next year, with manufacturers facing shortages of raw materials, spare parts and electronic components.
Neom Investment Fund: #Saudi Prince MBS Plans $80 Billion for Desert Megaproject - Bloomberg
Neom Investment Fund: Saudi Prince MBS Plans $80 Billion for Desert Megaproject - Bloomberg
Saudi Arabia will set aside 300 billion riyals ($80 billion) for an investment fund tied to the crown prince’s flagship megaproject, Neom, and plans an initial public offering of the project on the kingdom’s stock market as soon as 2024.
The Neom Investment Fund could potentially expand to 400 billion riyals, Crown Prince Mohammed bin Salman prince told reporters in Jeddah. It would invest in companies that agree to operate at Neom, a huge city planned for Saudi Arabia’s far northwest on the Red Sea coast.
The prince’s announcement on Monday was attended by global investors including Bridgewater Associates founder Ray Dalio, Tim Collins of Ripplewood, Saudi Prince Alwaleed bin Talal and Kuwaiti retail billionaire Mohammed Alshaya.
For the first time, he also outlined details on how he plans to finance Neom -- one of the largest and most complex construction projects in the world.
Saudi Arabia will set aside 300 billion riyals ($80 billion) for an investment fund tied to the crown prince’s flagship megaproject, Neom, and plans an initial public offering of the project on the kingdom’s stock market as soon as 2024.
The Neom Investment Fund could potentially expand to 400 billion riyals, Crown Prince Mohammed bin Salman prince told reporters in Jeddah. It would invest in companies that agree to operate at Neom, a huge city planned for Saudi Arabia’s far northwest on the Red Sea coast.
The prince’s announcement on Monday was attended by global investors including Bridgewater Associates founder Ray Dalio, Tim Collins of Ripplewood, Saudi Prince Alwaleed bin Talal and Kuwaiti retail billionaire Mohammed Alshaya.
For the first time, he also outlined details on how he plans to finance Neom -- one of the largest and most complex construction projects in the world.
#UAE’s Adnoc Buys ZMI Holdings in Offshore Oil and Wind Push - Bloomberg
UAE’s Adnoc Buys ZMI Holdings in Offshore Oil and Wind Push - Bloomberg
The United Arab Emirates’ main energy company has bought privately-owned ZMI Holdings as it looks to bolster its offshore oil, natural gas and wind businesses.
Abu Dhabi National Oil Co. will acquire all of ZMI, which is based in the UAE and also known as Zakher Marine International, according to a statement. Financial details of the transaction were not disclosed.
ZMI said it will probably make record earnings before interest, tax, depreciation and amortization this year of more than $300 million, helped by a surge in oil and gas prices since Russia’s invasion of Ukraine. Companies in the sector are typically valued at anything between five and 15 times Ebitda.
ZMI will retain its brand and continue operating as a standalone entity, though it will come under Adnoc Logistics & Services, an arm that Adnoc is considering listing, Bloomberg reported in February.
Goldman Sachs Group Inc. advised ZMI and Moelis & Co. worked with Adnoc.
The United Arab Emirates’ main energy company has bought privately-owned ZMI Holdings as it looks to bolster its offshore oil, natural gas and wind businesses.
Abu Dhabi National Oil Co. will acquire all of ZMI, which is based in the UAE and also known as Zakher Marine International, according to a statement. Financial details of the transaction were not disclosed.
ZMI said it will probably make record earnings before interest, tax, depreciation and amortization this year of more than $300 million, helped by a surge in oil and gas prices since Russia’s invasion of Ukraine. Companies in the sector are typically valued at anything between five and 15 times Ebitda.
ZMI will retain its brand and continue operating as a standalone entity, though it will come under Adnoc Logistics & Services, an arm that Adnoc is considering listing, Bloomberg reported in February.
Goldman Sachs Group Inc. advised ZMI and Moelis & Co. worked with Adnoc.
Record Gulf Funds Pour Into Global Deals as Liquidity Dries Up - Bloomberg
Record Gulf Funds Pour Into Global Deals as Liquidity Dries Up - Bloomberg
When liquidity evaporated from world markets in 2008, the Gulf’s richest monarchies stepped in to lap up everything from stakes in western lenders such as Citigroup Inc. to trophies like the Manchester City Football Club and Harrods. They’re at it again.
Flush with cash from a commodity boom, the region’s biggest sovereign funds -- which control more than $3 trillion in assets -- are pouring billions of dollars into global deals, playing funders of last resort for companies in a volatile market.
In the more than a decade since the 2008 financial crisis, cheap money and access to an array of investors meant companies didn’t really need to turn to the Gulf. As these sources of funding start to dry up, the region’s oil-rich states are being solicited again, giving them an opportunity to cherry-pick assets as well as accelerate a pivot in strategy away from a dependence on the black gold.
Bankers from New York to London and Singapore are seeking out Gulf funds for big deals around the world -- a US-based investment bank is pitching one of the region’s biggest money managers to invest in a $20 billion deal, a person familiar with the matter said. More Middle Eastern money is coming to the market than has been for a while now, said a senior executive at one of the world’s largest investment firms.
The region’s largest sovereign wealth funds have been involved in at least $28.6 billion worth of acquisitions outside the Middle East and Africa this year, according to data compiled by Bloomberg. That’s 45% more than at this point in 2021 and the most for any corresponding period on record, the data show.
When liquidity evaporated from world markets in 2008, the Gulf’s richest monarchies stepped in to lap up everything from stakes in western lenders such as Citigroup Inc. to trophies like the Manchester City Football Club and Harrods. They’re at it again.
Flush with cash from a commodity boom, the region’s biggest sovereign funds -- which control more than $3 trillion in assets -- are pouring billions of dollars into global deals, playing funders of last resort for companies in a volatile market.
In the more than a decade since the 2008 financial crisis, cheap money and access to an array of investors meant companies didn’t really need to turn to the Gulf. As these sources of funding start to dry up, the region’s oil-rich states are being solicited again, giving them an opportunity to cherry-pick assets as well as accelerate a pivot in strategy away from a dependence on the black gold.
Bankers from New York to London and Singapore are seeking out Gulf funds for big deals around the world -- a US-based investment bank is pitching one of the region’s biggest money managers to invest in a $20 billion deal, a person familiar with the matter said. More Middle Eastern money is coming to the market than has been for a while now, said a senior executive at one of the world’s largest investment firms.
The region’s largest sovereign wealth funds have been involved in at least $28.6 billion worth of acquisitions outside the Middle East and Africa this year, according to data compiled by Bloomberg. That’s 45% more than at this point in 2021 and the most for any corresponding period on record, the data show.
#Saudi crown prince says NEOM will raise capital amounting to 500 billion riyals -state TV | Reuters
Saudi crown prince says NEOM will raise capital amounting to 500 billion riyals -state TV | Reuters
Saudi Arabia's Crown Prince Mohammed Bin Salman said the government will raise 500 billion riyals of capital in 2027 and tap the market for an additional 200-300 billion riyals for the country's futuristic city project NEOM, state al-Ekhbariya TV reported early on Tuesday.
The crown prince added in remarks to reporters that NEOM will rely on government support until 2030, then it will become self-sustaining.
The crown prince also said that NEOM will add a trillion riyals to the Saudi stock market's value.
Saudi Arabia's Crown Prince Mohammed Bin Salman said the government will raise 500 billion riyals of capital in 2027 and tap the market for an additional 200-300 billion riyals for the country's futuristic city project NEOM, state al-Ekhbariya TV reported early on Tuesday.
The crown prince added in remarks to reporters that NEOM will rely on government support until 2030, then it will become self-sustaining.
The crown prince also said that NEOM will add a trillion riyals to the Saudi stock market's value.
Mideast Stocks: Major Gulf bourses mixed in early trade
Mideast Stocks: Major Gulf bourses mixed in early trade
Major stock markets in the Gulf were mixed in early trade on Tuesday amid lingering concerns over a slowing growth in the global economy, while rising crude prices provided some support.
Saudi Arabia's benchmark index gained 0.6%, with Saudi National Bank, the kingdom's biggest lender, rising 1% and Sahara International Petrochemical Co advancing 2.7%.
Saudi Crown Prince Mohammed bin Salman said the NEOM business zone would likely be publicly listed in 2024, al-Ekhbariya TV reported.
"NEOM will add a trillion riyals ($266 billion) to the Saudi stock market value. At least 1.2 trillion riyals in the beginning and the overall will increase after project completion to exceed 5 trillion," said the crown prince, who is the kingdom's de-facto ruler.
The Qatari benchmark rose 0.6%, with sharia-compliant lender Masraf Al Rayan jumping 5.2%.
Oil prices, a key catalyst for the Gulf's financial markets, rose for a second day on increasing concerns about tightening European supply after Russia, a key oil and natural gas supplier to the region, cut gas supply through a major pipeline.
Russia's cut in supplies will leave countries unable to meet their goals to refill natural gas storage ahead of the winter demand period. Germany, Europe's biggest economy, faces potentially rationing gas to industry to keep its citizens warm during the winter months.
In Abu Dhabi, equities dropped 0.4%, hit by a 0.6% fall in the country's biggest lender, First Abu Dhabi Bank .
Elsewhere, shares of energy firm Dana Gas retreated 1%, after two small rockets landed within the Khor Mor block in the Kurdistan region of Iraq Monday evening.
There were no injuries and production operations continue as normal.
Dubai's main share index fell 0.2%, with sharia-compliant lender Dubai Islamic Bank down 0.7%.
Major stock markets in the Gulf were mixed in early trade on Tuesday amid lingering concerns over a slowing growth in the global economy, while rising crude prices provided some support.
Saudi Arabia's benchmark index gained 0.6%, with Saudi National Bank, the kingdom's biggest lender, rising 1% and Sahara International Petrochemical Co advancing 2.7%.
Saudi Crown Prince Mohammed bin Salman said the NEOM business zone would likely be publicly listed in 2024, al-Ekhbariya TV reported.
"NEOM will add a trillion riyals ($266 billion) to the Saudi stock market value. At least 1.2 trillion riyals in the beginning and the overall will increase after project completion to exceed 5 trillion," said the crown prince, who is the kingdom's de-facto ruler.
The Qatari benchmark rose 0.6%, with sharia-compliant lender Masraf Al Rayan jumping 5.2%.
Oil prices, a key catalyst for the Gulf's financial markets, rose for a second day on increasing concerns about tightening European supply after Russia, a key oil and natural gas supplier to the region, cut gas supply through a major pipeline.
Russia's cut in supplies will leave countries unable to meet their goals to refill natural gas storage ahead of the winter demand period. Germany, Europe's biggest economy, faces potentially rationing gas to industry to keep its citizens warm during the winter months.
In Abu Dhabi, equities dropped 0.4%, hit by a 0.6% fall in the country's biggest lender, First Abu Dhabi Bank .
Elsewhere, shares of energy firm Dana Gas retreated 1%, after two small rockets landed within the Khor Mor block in the Kurdistan region of Iraq Monday evening.
There were no injuries and production operations continue as normal.
Dubai's main share index fell 0.2%, with sharia-compliant lender Dubai Islamic Bank down 0.7%.
Oil rises for a second day on supply tightness concerns | Reuters
Oil rises for a second day on supply tightness concerns | Reuters
Oil prices rose on Tuesday for a second day on increasing concerns about tightening European supply after Russia, a key oil and natural gas supplier to the region, cut gas supply through a major pipeline.
Brent crude futures for September settlement rose $1.66, or 1.6%, to $106.81 a barrel by 0618 GMT, extending a 1.9% gain in the previous day.
U.S. West Texas Intermediate (WTI) crude futures for September delivery increased $1.47, or 1.5%, to $98.17 a barrel, having gained 2.1% on Monday.
Russia tightened its gas squeeze on Europe on Monday as Gazprom (GAZP.MM) said supplies through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity. read more
Oil prices rose on Tuesday for a second day on increasing concerns about tightening European supply after Russia, a key oil and natural gas supplier to the region, cut gas supply through a major pipeline.
Brent crude futures for September settlement rose $1.66, or 1.6%, to $106.81 a barrel by 0618 GMT, extending a 1.9% gain in the previous day.
U.S. West Texas Intermediate (WTI) crude futures for September delivery increased $1.47, or 1.5%, to $98.17 a barrel, having gained 2.1% on Monday.
Russia tightened its gas squeeze on Europe on Monday as Gazprom (GAZP.MM) said supplies through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity. read more