Oil edges up ahead of OPEC meeting despite recession worries | Reuters
Oil futures edged up less than 1% on Tuesday ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply amid concerns a possible global recession could limit energy demand.
Brent futures rose 51 cents, or 0.5%, to settle at $100.54 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 53 cents, or 0.6%, to settle at $94.42.
Also giving oil prices a slight lift were analyst expectations that U.S. crude inventories declined by around 600,000 barrels last week.
The American Petroleum Institute (API), an industry group, will issue its U.S. inventory report at 4:30 p.m. EDT (2030 GMT). The U.S. Energy Information Administration (EIA) reports at 10:30 a.m. EDT (1430 GMT) on Wednesday.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, meet on Wednesday. Two of eight sources said a modest output hike would be discussed. The rest said a boost was unlikely.
Tuesday 2 August 2022
Most Gulf bourses retreat on profit-taking, U.S.-China tensions | Reuters
Most Gulf bourses retreat on profit-taking, U.S.-China tensions | Reuters
Most stock markets in the Gulf ended lower on Tuesday as investors moved to secure recent gains, while taking account of U.S.-China tensions, with the Qatari index snapping a 12-day winning streak.
The MSCI world equity index (.MIWD00000PUS), which tracks shares in 47 countries, fell 0.5%, on worries a visit by U.S. House of Representatives Speaker Nancy Pelosi to Taiwan would further harm relations between China and the United States. read more
Saudi Arabia's benchmark index (.TASI) fell 0.2%, hit by a 0.9% fall in Banque Saudi Fransi (1050.SE) and a 1.3% decrease in Yamama Cement Company (3020.SE).
Investors in the Gulf moved to take profits and at the same time are wary of the tensions between the U.S. and China concerning Taiwan, which could impact economic conditions further, said Farah Mourad, senior market analyst of XTB MENA.
Dubai's main share index (.DFMGI) dropped 0.9%, with top lender Emirates NBD (ENBD.DU) losing 1.1% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) closing 0.8% lower.
Separately, the United States on Monday imposed sanctions on Chinese and other firms it said helped to sell tens of millions of dollars in Iranian oil and petrochemical products to East Asia as it seeks to raise pressure on Tehran to curb its nuclear programme. read more
The U.S. Treasury and the State Department imposed sanctions on a total of six companies, four based in Hong Kong, one in Singapore, and one in the United Arab Emirates (UAE) in actions that were announced in separate statements.
In Qatar, the benchmark (.QSI) retreated 1.2%, ending 12 consecutive sessions of gains, weighed down by a 2.6% fall in Qatar Islamic Bank (QISB.QA).
The Abu Dhabi index (.FTFADGI) advanced 1.2%, nearing a one-month high, boosted by a 1.3% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.2%, helped by a 4.5% jump in Misr Fertilizers Production Co (MFPC.CA).
Most stock markets in the Gulf ended lower on Tuesday as investors moved to secure recent gains, while taking account of U.S.-China tensions, with the Qatari index snapping a 12-day winning streak.
The MSCI world equity index (.MIWD00000PUS), which tracks shares in 47 countries, fell 0.5%, on worries a visit by U.S. House of Representatives Speaker Nancy Pelosi to Taiwan would further harm relations between China and the United States. read more
Saudi Arabia's benchmark index (.TASI) fell 0.2%, hit by a 0.9% fall in Banque Saudi Fransi (1050.SE) and a 1.3% decrease in Yamama Cement Company (3020.SE).
Investors in the Gulf moved to take profits and at the same time are wary of the tensions between the U.S. and China concerning Taiwan, which could impact economic conditions further, said Farah Mourad, senior market analyst of XTB MENA.
Dubai's main share index (.DFMGI) dropped 0.9%, with top lender Emirates NBD (ENBD.DU) losing 1.1% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) closing 0.8% lower.
Separately, the United States on Monday imposed sanctions on Chinese and other firms it said helped to sell tens of millions of dollars in Iranian oil and petrochemical products to East Asia as it seeks to raise pressure on Tehran to curb its nuclear programme. read more
The U.S. Treasury and the State Department imposed sanctions on a total of six companies, four based in Hong Kong, one in Singapore, and one in the United Arab Emirates (UAE) in actions that were announced in separate statements.
In Qatar, the benchmark (.QSI) retreated 1.2%, ending 12 consecutive sessions of gains, weighed down by a 2.6% fall in Qatar Islamic Bank (QISB.QA).
The Abu Dhabi index (.FTFADGI) advanced 1.2%, nearing a one-month high, boosted by a 1.3% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.2%, helped by a 4.5% jump in Misr Fertilizers Production Co (MFPC.CA).
Vapiano, Gail’s Investors Raise $512 Million Fund Backed by #AbuDhabi - Bloomberg
Vapiano, Gail’s Investors Raise $512 Million Fund Backed by Abu Dhabi - Bloomberg
Food industry entrepreneurs Henry McGovern and Steven Winegar, who’ve backed brands including craft bakery Gail’s and pasta chain Vapiano, have raised 500 million euros ($512 million) to invest in restaurants.
McGovern and Winegar have launched their McWin Restaurant Fund with primary backing from the Abu Dhabi Investment Authority, according to a statement Tuesday. It brings total capital managed by McWin, which also runs smaller food tech and ecosystem funds, to more than 1 billion euros.
The new vehicle will make equity investments of at least 100 million euros to help localized restaurant brands become more digital and expand abroad.
McGovern said there’s opportunity to invest in successful brands as the food industry adapts to new trends, including the increased use of delivery apps, as it emerges from the Covid-19 pandemic.
“We’re in a really some ways difficult time, but strategically very interesting time, because you have to look at how to change your business model,” McGovern said in an interview. The new fund is already in discussions about a few deals, he said.
McGovern is the founder of AmRest Holdings SE, while Winegar started Restauravia Grupo Empresarial. Along with Gail’s, which they invested in alongside Bain Capital Credit, the duo have also backed meat substitute company Impossible Foods and franchisee Burger King Germany.
Food industry entrepreneurs Henry McGovern and Steven Winegar, who’ve backed brands including craft bakery Gail’s and pasta chain Vapiano, have raised 500 million euros ($512 million) to invest in restaurants.
McGovern and Winegar have launched their McWin Restaurant Fund with primary backing from the Abu Dhabi Investment Authority, according to a statement Tuesday. It brings total capital managed by McWin, which also runs smaller food tech and ecosystem funds, to more than 1 billion euros.
The new vehicle will make equity investments of at least 100 million euros to help localized restaurant brands become more digital and expand abroad.
McGovern said there’s opportunity to invest in successful brands as the food industry adapts to new trends, including the increased use of delivery apps, as it emerges from the Covid-19 pandemic.
“We’re in a really some ways difficult time, but strategically very interesting time, because you have to look at how to change your business model,” McGovern said in an interview. The new fund is already in discussions about a few deals, he said.
McGovern is the founder of AmRest Holdings SE, while Winegar started Restauravia Grupo Empresarial. Along with Gail’s, which they invested in alongside Bain Capital Credit, the duo have also backed meat substitute company Impossible Foods and franchisee Burger King Germany.
Boursa Kuwait’s H1 net profit up 36.8%
Boursa Kuwait’s H1 net profit up 36.8%
In a meeting of its Board members on 1 August 2022, Boursa Kuwait announced net profits (attributable to equity holders of the Parent Company) of KD 10.7 million for the six month period ended 30 June 2022, an increase of 36.8% compared to the same period in 2021, when the company recorded net profits of around KD 7.8 million.
The company generated 53.37 fils Earnings per Share, an increase of 36.8% compared to its total of 39.03 fils over the same period in 2021, while the Group’s total assets came in at approximately KD 110.8 million, which is an almost 4% increase versus its 2021 total assets for the same period of KD 106.5 million. Equity (attributable to equity holders of the Parent Company) increased from KD 52.6 million at 30 June 2021 to KD 58.3 million at 30 June 2022, an increase of 10.8%, while total operating revenue came in at KD 18.4 million, an increase of 21.8% over the same period in 2021, which stood at approximately KD 15.1 million.
Boursa Kuwait Chairman Mr. Hamad Meshari Al-Humaidhi commented: “We are pleased to have recorded a net profit of around KD 10.7 million for the first half of 2022, which is an almost 36.8% increase over its total in the corresponding period in 2021. The company has continued to improve on its results year by year, which shows not only the strength of our operational model, strategy, and underlying financial health, but were also indicators of the company’s resilience as well as that of the Kuwaiti capital market.”
He continued: “Despite the volatility in capital markets across the world, we are hopeful that the results made in the first six months are indications of things to come for Boursa Kuwait, which has made considerable gains in achieving the goals of its strategy since its privatization in 2019. The company’s efficient, sustainable and responsible business practices have made it a model issuer and a standout listed company that has drawn the attention of investors worldwide. I would like to thank my fellow Board members, the Executive Team and the esteemed Boursa Kuwait employees for their monumental efforts to develop and enhance the company, the Kuwaiti capital market and the national economy during the year.”
In a meeting of its Board members on 1 August 2022, Boursa Kuwait announced net profits (attributable to equity holders of the Parent Company) of KD 10.7 million for the six month period ended 30 June 2022, an increase of 36.8% compared to the same period in 2021, when the company recorded net profits of around KD 7.8 million.
The company generated 53.37 fils Earnings per Share, an increase of 36.8% compared to its total of 39.03 fils over the same period in 2021, while the Group’s total assets came in at approximately KD 110.8 million, which is an almost 4% increase versus its 2021 total assets for the same period of KD 106.5 million. Equity (attributable to equity holders of the Parent Company) increased from KD 52.6 million at 30 June 2021 to KD 58.3 million at 30 June 2022, an increase of 10.8%, while total operating revenue came in at KD 18.4 million, an increase of 21.8% over the same period in 2021, which stood at approximately KD 15.1 million.
Boursa Kuwait Chairman Mr. Hamad Meshari Al-Humaidhi commented: “We are pleased to have recorded a net profit of around KD 10.7 million for the first half of 2022, which is an almost 36.8% increase over its total in the corresponding period in 2021. The company has continued to improve on its results year by year, which shows not only the strength of our operational model, strategy, and underlying financial health, but were also indicators of the company’s resilience as well as that of the Kuwaiti capital market.”
He continued: “Despite the volatility in capital markets across the world, we are hopeful that the results made in the first six months are indications of things to come for Boursa Kuwait, which has made considerable gains in achieving the goals of its strategy since its privatization in 2019. The company’s efficient, sustainable and responsible business practices have made it a model issuer and a standout listed company that has drawn the attention of investors worldwide. I would like to thank my fellow Board members, the Executive Team and the esteemed Boursa Kuwait employees for their monumental efforts to develop and enhance the company, the Kuwaiti capital market and the national economy during the year.”
OPEC’s Gulf Nations Boost Oil Production to Relieve Tight Market - Bloomberg
OPEC’s Gulf Nations Boost Oil Production to Relieve Tight Market - Bloomberg
OPEC’s crude production rose to a two-year high last month as Persian Gulf members followed through on a pledge to relieve tight global markets.
The Organization of Petroleum Exporting Countries added 270,000 barrels a day in July, with group leader Saudi Arabia accounting for about two-thirds of the increase, according to a Bloomberg survey.
OPEC and its partners have agreed to accelerate the return of the last of the supplies halted during the Covid-19 pandemic, as peak summer demand and global output disruptions push fuel prices to levels that threaten the global economy. The alliance meets on Wednesday to consider its next move.
While US President Joe Biden said he expected “further steps” from the Saudis after visiting the kingdom last month, Riyadh has been circumspect about its plans. Several OPEC+ delegates said the group may keep production steady when it calibrates September levels this week, conserving spare capacity in case it’s needed later.
OPEC’s crude production rose to a two-year high last month as Persian Gulf members followed through on a pledge to relieve tight global markets.
The Organization of Petroleum Exporting Countries added 270,000 barrels a day in July, with group leader Saudi Arabia accounting for about two-thirds of the increase, according to a Bloomberg survey.
OPEC and its partners have agreed to accelerate the return of the last of the supplies halted during the Covid-19 pandemic, as peak summer demand and global output disruptions push fuel prices to levels that threaten the global economy. The alliance meets on Wednesday to consider its next move.
While US President Joe Biden said he expected “further steps” from the Saudis after visiting the kingdom last month, Riyadh has been circumspect about its plans. Several OPEC+ delegates said the group may keep production steady when it calibrates September levels this week, conserving spare capacity in case it’s needed later.
Fertiglobe's second-quarter profit surges almost fourfold on revenue boost
Fertiglobe's second-quarter profit surges almost fourfold on revenue boost
Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, said its second-quarter net profit surged almost fourfold, as a rise in selling prices and volume of products sold boosted revenue.
Net profit attributable to owners of the company for the three-month period to the end of June climbed to $429.4 million, from $113.3m recorded a year earlier, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Adjusted net profit for the April to June period surged more than 270 per cent to $438m.
Revenue in the second quarter rose 105 per cent on an annual basis to $1.47 billion, while adjusted earnings before interest, taxes, depreciation and amortisation rose 155 per cent year on year to $770m.
Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, said its second-quarter net profit surged almost fourfold, as a rise in selling prices and volume of products sold boosted revenue.
Net profit attributable to owners of the company for the three-month period to the end of June climbed to $429.4 million, from $113.3m recorded a year earlier, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Adjusted net profit for the April to June period surged more than 270 per cent to $438m.
Revenue in the second quarter rose 105 per cent on an annual basis to $1.47 billion, while adjusted earnings before interest, taxes, depreciation and amortisation rose 155 per cent year on year to $770m.
Oil edges up OPEC+ meeting eyed, global demand concerns weigh | Reuters
Oil edges up OPEC+ meeting eyed, global demand concerns weigh | Reuters
Oil edged up on Tuesday ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply, although concern about a possible global recession limited gains.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, meets on Wednesday. Two of eight sources said a modest hike would be discussed, while the rest said a boost was unlikely. read more
Brent crude was up 31 cents, or 0.3%, to $100.34 a barrel by 1156 GMT, while U.S. West Texas Intermediate crude added 40cents, or 0.4%, to $94.29.
"There's a lot more uncertainty this time around," said Craig Erlam of brokerage OANDA of the OPEC+ meeting. "The decision this week will tell us just how unified the group still is."
Oil soared earlier in 2022, with Brent in March coming close to its all time high of $147 a barrel after Russia's invasion of Ukraine added to supply concerns. Concerns about slowing growth have since eclipsed tight supply.
Oil edged up on Tuesday ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply, although concern about a possible global recession limited gains.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, meets on Wednesday. Two of eight sources said a modest hike would be discussed, while the rest said a boost was unlikely. read more
Brent crude was up 31 cents, or 0.3%, to $100.34 a barrel by 1156 GMT, while U.S. West Texas Intermediate crude added 40cents, or 0.4%, to $94.29.
"There's a lot more uncertainty this time around," said Craig Erlam of brokerage OANDA of the OPEC+ meeting. "The decision this week will tell us just how unified the group still is."
Oil soared earlier in 2022, with Brent in March coming close to its all time high of $147 a barrel after Russia's invasion of Ukraine added to supply concerns. Concerns about slowing growth have since eclipsed tight supply.
#Kuwait Investment Authority: Why The World’s Oldest Sovereign Fund Is in Turmoil - Bloomberg
Kuwait Investment Authority: Why The World’s Oldest Sovereign Fund Is in Turmoil - Bloomberg
Kuwait’s sovereign wealth fund, the world’s oldest and one of the largest, has played a key role in preparing OPEC’s fourth-largest producer for a post-oil future and helping prop up the economy as it was battered by the pandemic. The $769 billion Kuwait Investment Authority is also a leading global investor, with holdings in BlackRock Inc. and Mercedes-Benz Group AG. In a rare move, it ousted the head of its London arm in July, sending shock waves through the normally sedate and secretive world of Gulf sovereign funds.
2. What does it invest in?
The KIA is the second-biggest sovereign wealth fund in the Gulf region, with a significant proportion of its investments in the US. During the 2008 crisis, it bought into banks including Citigroup Inc. KIO, its London arm, has been a prolific investor in the past year and participated in the US listing of private equity firm TPG Inc. Unlike parent KIA, the KIO mainly invests directly, predominantly in public equities and fixed income. The KIA owns stakes in ports, airports and power distribution systems globally, as well as in regional firms including Mobile Telecommunications Co., National Hotels, and Kuwait Telecommunications Co. KIA Managing Director Ghanem Al-Ghenaiman has said the fund is on the lookout for opportunities in real estate, energy and IT.
Kuwait’s sovereign wealth fund, the world’s oldest and one of the largest, has played a key role in preparing OPEC’s fourth-largest producer for a post-oil future and helping prop up the economy as it was battered by the pandemic. The $769 billion Kuwait Investment Authority is also a leading global investor, with holdings in BlackRock Inc. and Mercedes-Benz Group AG. In a rare move, it ousted the head of its London arm in July, sending shock waves through the normally sedate and secretive world of Gulf sovereign funds.
1. Why was the fund set up?
The Kuwait Investment Board was established in London in 1953, eight years before the nation gained independence, to invest surplus oil revenue and help diversify the economy. The board was later replaced by the Kuwait Investment Office, and in 1982 the KIA was set up as its parent entity. The KIA controls Kuwait’s General Reserve Fund, which is the main repository of oil revenues and pays out budget expenditures. In addition, it manages the Future Generations Fund, which is meant to safeguard the nation’s wealth for a time after its oil runs out and whose assets have grown to more than $700 billion. The KIA is overseen by a board that includes the finance and oil ministers.
The Kuwait Investment Board was established in London in 1953, eight years before the nation gained independence, to invest surplus oil revenue and help diversify the economy. The board was later replaced by the Kuwait Investment Office, and in 1982 the KIA was set up as its parent entity. The KIA controls Kuwait’s General Reserve Fund, which is the main repository of oil revenues and pays out budget expenditures. In addition, it manages the Future Generations Fund, which is meant to safeguard the nation’s wealth for a time after its oil runs out and whose assets have grown to more than $700 billion. The KIA is overseen by a board that includes the finance and oil ministers.
2. What does it invest in?
The KIA is the second-biggest sovereign wealth fund in the Gulf region, with a significant proportion of its investments in the US. During the 2008 crisis, it bought into banks including Citigroup Inc. KIO, its London arm, has been a prolific investor in the past year and participated in the US listing of private equity firm TPG Inc. Unlike parent KIA, the KIO mainly invests directly, predominantly in public equities and fixed income. The KIA owns stakes in ports, airports and power distribution systems globally, as well as in regional firms including Mobile Telecommunications Co., National Hotels, and Kuwait Telecommunications Co. KIA Managing Director Ghanem Al-Ghenaiman has said the fund is on the lookout for opportunities in real estate, energy and IT.
Fertiglobe: Biggest Mideast Fertilizer Firm Sees More Supply Cuts in Europe - Bloomberg
Fertiglobe: Biggest Mideast Fertilizer Firm Sees More Supply Cuts in Europe - Bloomberg
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Fertiglobe Plc, the largest fertilizer maker in the Middle East, said the global market will remain tight with more European rivals likely to cut production due to surging costs for natural gas, a key feedstock.
“We could see more coming offline” in Europe, Fertiglobe Chief Executive Officer Ahmed El-Hoshy said in an interview with Bloomberg Television. “Even at today’s elevated prices for ammonia and urea, much of Europe is operating well below cash costs. Some companies will have a difficult time with these unprecedented hydrocarbon prices.”
The price of gas, the main input for the nitrogen-based fertilizer produced by Fertiglobe, has surged in the past year, especially since Russia invaded Ukraine in February and slashed supplies to Europe in retaliation to sanctions. Last month, European fertilizer giant Yara International ASA said the energy crisis has forced it to reduce output and warned of more curbs.
Fertiglobe, which has factories in the United Arab Emirates, Egypt and Algeria, has seen sales to Europe rise in the past year as competitors based on the continent come under pressure. The company benefits from being able to buy cheaper gas from the Middle East. Abu Dhabi National Oil Co., the UAE’s state energy firm, owns around 36% of Fertiglobe.
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Fertiglobe Plc, the largest fertilizer maker in the Middle East, said the global market will remain tight with more European rivals likely to cut production due to surging costs for natural gas, a key feedstock.
“We could see more coming offline” in Europe, Fertiglobe Chief Executive Officer Ahmed El-Hoshy said in an interview with Bloomberg Television. “Even at today’s elevated prices for ammonia and urea, much of Europe is operating well below cash costs. Some companies will have a difficult time with these unprecedented hydrocarbon prices.”
The price of gas, the main input for the nitrogen-based fertilizer produced by Fertiglobe, has surged in the past year, especially since Russia invaded Ukraine in February and slashed supplies to Europe in retaliation to sanctions. Last month, European fertilizer giant Yara International ASA said the energy crisis has forced it to reduce output and warned of more curbs.
Fertiglobe, which has factories in the United Arab Emirates, Egypt and Algeria, has seen sales to Europe rise in the past year as competitors based on the continent come under pressure. The company benefits from being able to buy cheaper gas from the Middle East. Abu Dhabi National Oil Co., the UAE’s state energy firm, owns around 36% of Fertiglobe.
Most Gulf bourses retreat in line with oil prices, Asian shares | Reuters
Most Gulf bourses retreat in line with oil prices, Asian shares | Reuters
Most stock markets in the Gulf retreated in early trade on Tuesday, tracking oil prices and Asian shares lower, although the Abu Dhabi index bucked the trend to trade higher.
MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) retreated 1.33%, as jitters about an escalation in Sino-U.S. tension over U.S. House of Representatives Speaker Nancy Pelosi's imminent visit to Taiwan, added to fears of a global recession.
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, weighed down by a 1.1% fall in Al Rajhi Bank (1120.SE) and a 2.3% decline in Riyad Bank (1010.SE).
The kingdom will push OPEC+ to increase oil production at an upcoming meeting on Wednesday, a Fox Business news reporter said on Monday. read more
The White House has said it anticipates major oil producers in the OPEC+ alliance will increase crude production following President Joe Biden's trip to the Middle East last month.
Crude prices, a key catalyst for the Gulf's financial market, edged lower as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as major crude producers meet this week to determine whether to increase supply.
Dubai's main share index (.DFMGI) lost 0.6%, hit by a 2.1% drop in top lender Emirates NBD (ENBD.DU).
The Qatari benchmark (.QSI) declined 1.4%, as most of the stocks on the index were in negative territory including Qatar Islamic Bank (QISB.QA), which was down 2.5%.
In Abu Dhabi, the shares (.FTFADGI), however, gained 0.7%, nearing one-month high, helped by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Most stock markets in the Gulf retreated in early trade on Tuesday, tracking oil prices and Asian shares lower, although the Abu Dhabi index bucked the trend to trade higher.
MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) retreated 1.33%, as jitters about an escalation in Sino-U.S. tension over U.S. House of Representatives Speaker Nancy Pelosi's imminent visit to Taiwan, added to fears of a global recession.
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, weighed down by a 1.1% fall in Al Rajhi Bank (1120.SE) and a 2.3% decline in Riyad Bank (1010.SE).
The kingdom will push OPEC+ to increase oil production at an upcoming meeting on Wednesday, a Fox Business news reporter said on Monday. read more
The White House has said it anticipates major oil producers in the OPEC+ alliance will increase crude production following President Joe Biden's trip to the Middle East last month.
Crude prices, a key catalyst for the Gulf's financial market, edged lower as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as major crude producers meet this week to determine whether to increase supply.
Dubai's main share index (.DFMGI) lost 0.6%, hit by a 2.1% drop in top lender Emirates NBD (ENBD.DU).
The Qatari benchmark (.QSI) declined 1.4%, as most of the stocks on the index were in negative territory including Qatar Islamic Bank (QISB.QA), which was down 2.5%.
In Abu Dhabi, the shares (.FTFADGI), however, gained 0.7%, nearing one-month high, helped by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Oil slips as global demand concerns weigh, OPEC+ meeting eyed | Reuters
Oil slips as global demand concerns weigh, OPEC+ meeting eyed | Reuters
Oil slipped on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as OPEC+ producers meet this week to decide whether to increase supply.
Surveys showed on Monday that factories across the United States, Europe and Asia struggled for momentum in July as flagging global demand and China's strict COVID-19 restrictions slowed production. read more
"These readings did nothing to mitigate the fears of recession," said Tamas Varga at oil broker PVM.
Brent crude was down $1.40, or 1.4%, to $98.63 a barrel by 0817 GMT, while U.S. West Texas Intermediate crude fell $1.00, or 1.1%, to $92.89.
Oil soared earlier in 2022, with Brent in March coming close to its all time high of $147 a barrel after Russia's invasion of Ukraine added to supply concerns. Concerns about slowing growth have since eclipsed tight supply.
Oil slipped on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as OPEC+ producers meet this week to decide whether to increase supply.
Surveys showed on Monday that factories across the United States, Europe and Asia struggled for momentum in July as flagging global demand and China's strict COVID-19 restrictions slowed production. read more
"These readings did nothing to mitigate the fears of recession," said Tamas Varga at oil broker PVM.
Brent crude was down $1.40, or 1.4%, to $98.63 a barrel by 0817 GMT, while U.S. West Texas Intermediate crude fell $1.00, or 1.1%, to $92.89.
Oil soared earlier in 2022, with Brent in March coming close to its all time high of $147 a barrel after Russia's invasion of Ukraine added to supply concerns. Concerns about slowing growth have since eclipsed tight supply.
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