Oil pares losses after Saudi oilmin says OPEC+ has options including cuts | Reuters
Oil prices bounced off session lows to trade nearly flat in a volatile session on Monday as markets weighed Saudi Arabia's warning that OPEC+ production could cut output against the possibility of a nuclear deal that could return sanctioned Iranian oil to the market.
Brent crude futures for October settled at $96.48 per barrel, down 24 cents, or 0.25%. It had fallen as much as 4.5% earlier in the day, breaking a three-day streak of gains.
U.S. West Texas Intermediate (WTI) crude for September delivery, which expired on Monday, was down 54 cents, or 0.6%, at $90.23. The more active October contract was down 4 cents, or 0.03%, at $90.41.
Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ has the commitment, flexibility, and means to deal with challenges and provide guidance including cutting production at any time and in different forms, state news agency SPA reported. read more
Monday, 22 August 2022
Oil falls 2% on concerns economic slowdown may dent fuel demand | Reuters
Oil falls 2% on concerns economic slowdown may dent fuel demand | Reuters
Oil prices fell 2% in volatile trading on Monday, ending a three-day streak of gains, on fears that aggressive U.S. interest rate hikes may lead to a global economic slowdown and dent fuel demand.
Brent crude futures for October settlement fell $2.33, or 2.3%, to $94.39 a barrel by 11:35 a.m. ET (1535 GMT).
U.S. West Texas Intermediate (WTI) crude for September delivery - due to expire on Monday - was down $2.14, or 2.4%, at $88.63. The more active October contract was down $2.10, or 2.2%, at $88.34.
"The short- to medium-term trends for oil is down at present ... oil prices are reflecting the diminishing economic growth outlook right now as key demand-side regions such as the U.S. and China have shown signs of negative (U.S.) and slowing (China) growth," said Shaun Murison, Senior Market Analyst at foreign exchange trading provider IG.
The U.S. Federal Reserve will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll. read more
Oil prices fell 2% in volatile trading on Monday, ending a three-day streak of gains, on fears that aggressive U.S. interest rate hikes may lead to a global economic slowdown and dent fuel demand.
Brent crude futures for October settlement fell $2.33, or 2.3%, to $94.39 a barrel by 11:35 a.m. ET (1535 GMT).
U.S. West Texas Intermediate (WTI) crude for September delivery - due to expire on Monday - was down $2.14, or 2.4%, at $88.63. The more active October contract was down $2.10, or 2.2%, at $88.34.
"The short- to medium-term trends for oil is down at present ... oil prices are reflecting the diminishing economic growth outlook right now as key demand-side regions such as the U.S. and China have shown signs of negative (U.S.) and slowing (China) growth," said Shaun Murison, Senior Market Analyst at foreign exchange trading provider IG.
The U.S. Federal Reserve will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll. read more
Mideast Stocks: Most major Gulf bourses ease on growth worries
Mideast Stocks: Most major Gulf bourses ease on growth worries
Most major stock markets in the Gulf fell on Monday on concerns that inflation-busting interest-rate hikes in the United States and Europe will weaken the global economy.
U.S. Federal Reserve Chair Jerome Powell headlines a host of policymakers at a symposium in Jackson Hole, Wyoming later in the week, with expectations growing of further rate hikes rather than a pivot to a more dovish policy. A Reuters poll of economists forecast the Fed will raise rates by 50 basis points in September, with the risks skewed towards a higher peak.
The Qatari benchmark index dropped 1.2% with most of its stocks in negative territory including Qatar Islamic Bank , which was down 1.4%.
Dubai's main share index finished 0.3% lower, hit by a 1.2% fall in blue-chip developer Emaar Properties. Emaar Properties said on Saturday it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF). Emaar said in a bourse filing its board has in principle approved the sale, which values Namshi at $335.2 million, as a divestment to a related party.
In Abu Dhabi, the index fell 0.4%, with telecoms firm e&, formerly known as Emirates Telecommunications Group, dropping 1%.
Saudi Arabia's benchmark index reversed early losses to edge 0.1% higher, helped by a 0.9% rise in Al Rajhi Bank . However, the index's gains were limited by a 1.2% fall in Saudi Aramco as the oil giant went ex-dividend.
Outside the Gulf, Egypt's blue-chip index declined 0.9%, with top lender Commercial International Bank retreating 2.1%.
U.S. Federal Reserve Chair Jerome Powell headlines a host of policymakers at a symposium in Jackson Hole, Wyoming later in the week, with expectations growing of further rate hikes rather than a pivot to a more dovish policy. A Reuters poll of economists forecast the Fed will raise rates by 50 basis points in September, with the risks skewed towards a higher peak.
The Qatari benchmark index dropped 1.2% with most of its stocks in negative territory including Qatar Islamic Bank , which was down 1.4%.
Dubai's main share index finished 0.3% lower, hit by a 1.2% fall in blue-chip developer Emaar Properties. Emaar Properties said on Saturday it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF). Emaar said in a bourse filing its board has in principle approved the sale, which values Namshi at $335.2 million, as a divestment to a related party.
In Abu Dhabi, the index fell 0.4%, with telecoms firm e&, formerly known as Emirates Telecommunications Group, dropping 1%.
Saudi Arabia's benchmark index reversed early losses to edge 0.1% higher, helped by a 0.9% rise in Al Rajhi Bank . However, the index's gains were limited by a 1.2% fall in Saudi Aramco as the oil giant went ex-dividend.
Outside the Gulf, Egypt's blue-chip index declined 0.9%, with top lender Commercial International Bank retreating 2.1%.
#SaudiArabia’s EV Battery Bets Are a Warning to Those Going Slow on Clean Energy - Bloomberg
Saudi Arabia’s EV Battery Bets Are a Warning to Those Going Slow on Clean Energy - Bloomberg
The world’s oil capital wants to go electric and get clean. To do so, it’s getting its hands on minerals critical for batteries and taking a stake in the electric vehicle-supply chain. That should put countries and companies prone to announcing ambitious plans but then doing little to make them a reality on high alert.
As shortages loom and firms attempt to secure prohibitively expensive resources in a bid to scale up manufacturing, Saudi Arabia has drawn in lithium miners and battery makers to set up operations, filling a critical gap. The country wants 30% of cars on its capital city’s roads to be electric by the end of this decade.
Australian battery chemicals and technology company EV Metals Group Plc said it was kicking off the development of its processing plants for lithium hydroxide monohydrate — a key compound for batteries — deepening its plans in the kingdom. The firm has worked with its partners for the past two years on feasibility studies, and the facility now plans to produce high-grade chemicals for cathode materials in powerpacks, an important component that EV makers are trying to get their hands on. Another Australian firm, Avass Group, announced it signed an agreement in February to jointly manufacture electric vehicles and lithium batteries with the country.
Along with these commitments, Saudi Arabia’s Ministry of Industry and Mineral Resources has announced $6 billion of projects as part of a larger push to boost its mining industry. It’s also processing almost 150 exploration license applications from foreign companies. The government signed an agreement to buy as many as 100,000 electric vehicles over 10 years from Lucid Group Inc, an EV maker that the country’s sovereign wealth fund has a stake in. It is allocating more than $3 billion in financing and incentives to set up the plant over the next decade and a half. Foxconn Technology Group, the largest assembler of iPhones, was in talks to establish a $9 billion facility that could make chips and EV parts.
The world’s oil capital wants to go electric and get clean. To do so, it’s getting its hands on minerals critical for batteries and taking a stake in the electric vehicle-supply chain. That should put countries and companies prone to announcing ambitious plans but then doing little to make them a reality on high alert.
As shortages loom and firms attempt to secure prohibitively expensive resources in a bid to scale up manufacturing, Saudi Arabia has drawn in lithium miners and battery makers to set up operations, filling a critical gap. The country wants 30% of cars on its capital city’s roads to be electric by the end of this decade.
Australian battery chemicals and technology company EV Metals Group Plc said it was kicking off the development of its processing plants for lithium hydroxide monohydrate — a key compound for batteries — deepening its plans in the kingdom. The firm has worked with its partners for the past two years on feasibility studies, and the facility now plans to produce high-grade chemicals for cathode materials in powerpacks, an important component that EV makers are trying to get their hands on. Another Australian firm, Avass Group, announced it signed an agreement in February to jointly manufacture electric vehicles and lithium batteries with the country.
Along with these commitments, Saudi Arabia’s Ministry of Industry and Mineral Resources has announced $6 billion of projects as part of a larger push to boost its mining industry. It’s also processing almost 150 exploration license applications from foreign companies. The government signed an agreement to buy as many as 100,000 electric vehicles over 10 years from Lucid Group Inc, an EV maker that the country’s sovereign wealth fund has a stake in. It is allocating more than $3 billion in financing and incentives to set up the plant over the next decade and a half. Foxconn Technology Group, the largest assembler of iPhones, was in talks to establish a $9 billion facility that could make chips and EV parts.
Gulf Tech Bets, #Dubai Inflation Shock, Iran Deal Talks, Expat Hotspots - Bloomberg
Gulf Tech Bets, Dubai Inflation Shock, Iran Deal Talks, Expat Hotspots - Bloomberg
A rout in tech stocks was in part to blame for a record $174 billion loss at Norway’s sovereign wealth fund. But just as others stampeded out, oil-rich Gulf states sensed an opportunity to double down.
With coffers bolstered by a surge in crude prices, countries in the Middle East have seized on lower valuations to hasten their efforts to diversify and prepare for life after oil. With liquidity drying up elsewhere and few investors willing to stomach the volatility, they are in pole position.
Abu Dhabi, one of few cities to control more than $1 trillion in sovereign wealth, has been at the forefront and its efforts have found backing from key stakeholders. United Arab Emirates national security adviser Sheikh Tahnoon Bin Zayed, among the most influential members of the royal family, controls entities that have made aggressive moves particularly within the technology sector.
With coffers bolstered by a surge in crude prices, countries in the Middle East have seized on lower valuations to hasten their efforts to diversify and prepare for life after oil. With liquidity drying up elsewhere and few investors willing to stomach the volatility, they are in pole position.
Abu Dhabi, one of few cities to control more than $1 trillion in sovereign wealth, has been at the forefront and its efforts have found backing from key stakeholders. United Arab Emirates national security adviser Sheikh Tahnoon Bin Zayed, among the most influential members of the royal family, controls entities that have made aggressive moves particularly within the technology sector.
#Dubai IPO: #UAE Forex Company Al Ansari Picks Banks for First Share Sale - Bloomberg
Dubai IPO: UAE Forex Company Al Ansari Picks Banks for First Share Sale - Bloomberg
Al Ansari Exchange has picked EFG-Hermes and Emirates NBD Bank PJSC to lead its planned Dubai initial public offering, according to people with knowledge of the matter.
The United Arab Emirates-based money-exchange firm could list in the first quarter of 2023, the people said, asking not to be identified as the information isn’t public. Preparations for the IPO are ongoing and details such as timing could still change, they said.
Representatives for Al Ansari, Emirates NBD and EFG-Hermes declined to comment.
The Gulf region remains a bright spot for IPOs with a growing pipeline of potential listings despite a handful of lackluster trading debuts in recent months.
After being among the world’s best performers at the start of the year, the region’s main equity indexes have since given up many of their gains. The last two listings in Dubai -- supermarket operator Union Coop and property firm Tecom Group -- tumbled on their first trading days.
Al Ansari Exchange was set up almost 60 years ago and currently has over 200 branches in the UAE, making it one of the largest exchange companies in the country. In addition to exchange services, it offers remittances, services for paying domestic workers and savings plans, according to its website.
Al Ansari Exchange has picked EFG-Hermes and Emirates NBD Bank PJSC to lead its planned Dubai initial public offering, according to people with knowledge of the matter.
The United Arab Emirates-based money-exchange firm could list in the first quarter of 2023, the people said, asking not to be identified as the information isn’t public. Preparations for the IPO are ongoing and details such as timing could still change, they said.
Representatives for Al Ansari, Emirates NBD and EFG-Hermes declined to comment.
The Gulf region remains a bright spot for IPOs with a growing pipeline of potential listings despite a handful of lackluster trading debuts in recent months.
After being among the world’s best performers at the start of the year, the region’s main equity indexes have since given up many of their gains. The last two listings in Dubai -- supermarket operator Union Coop and property firm Tecom Group -- tumbled on their first trading days.
Al Ansari Exchange was set up almost 60 years ago and currently has over 200 branches in the UAE, making it one of the largest exchange companies in the country. In addition to exchange services, it offers remittances, services for paying domestic workers and savings plans, according to its website.
Oil slumps on fears over economic slowdown, stronger dollar | Reuters
Oil slumps on fears over economic slowdown, stronger dollar | Reuters
Oil prices slumped on Monday as investors were concerned that aggressive U.S. interest rate hikes might weaken the global economy and fuel demand while a stronger dollar also weighed.
Brent crude futures for October settlement fell $1.60, or 1.6%, to $95.12 a barrel by 0900 GMT.
U.S. West Texas Intermediate (WTI) crude futures for September delivery, due to expire on Monday, were down $1.56, or 1.7%, at $89.21 a barrel.
The more active October contract was at $88.92, down $1.52, or 1.7%.
On Friday both Brent and WTI climbed for a third straight day, but fell about 1.5% on the week on a stronger dollar and demand concerns.
Oil prices slumped on Monday as investors were concerned that aggressive U.S. interest rate hikes might weaken the global economy and fuel demand while a stronger dollar also weighed.
Brent crude futures for October settlement fell $1.60, or 1.6%, to $95.12 a barrel by 0900 GMT.
U.S. West Texas Intermediate (WTI) crude futures for September delivery, due to expire on Monday, were down $1.56, or 1.7%, at $89.21 a barrel.
The more active October contract was at $88.92, down $1.52, or 1.7%.
On Friday both Brent and WTI climbed for a third straight day, but fell about 1.5% on the week on a stronger dollar and demand concerns.
Gulf buy now, pay later firm Tamara says it raised $100 million | Reuters
Gulf buy now, pay later firm Tamara says it raised $100 million | Reuters
Gulf buy now, pay later (BNPL) firm Tamara said on Monday it raised $100 million in a second round of fundraising from investors including Sanabil Investments, which is owned by Saudi Arabia's sovereign wealth fund PIF.
The series 'B' funding would support the Saudi-based startup to expand into new markets, and introduce new services and products. It did not specify which markets.
"We believe the region has a different situation today than globally. The region is thriving with high oil prices," Chief Executive Abdulmajeed Alsukhan told Reuters.
"We want to make sure our customers find the right products that suit them and find amazing deals."
Tamara, which has over 3 million active shoppers, is one of the Gulf Arab region's largest BNPL providers and competes with companies including Dubai-based Tabby.
Demand for BNPL, which allow consumers to order and take a product without immediately paying, has risen in recent years, driven by an increase in online shopping.
Gulf buy now, pay later (BNPL) firm Tamara said on Monday it raised $100 million in a second round of fundraising from investors including Sanabil Investments, which is owned by Saudi Arabia's sovereign wealth fund PIF.
The series 'B' funding would support the Saudi-based startup to expand into new markets, and introduce new services and products. It did not specify which markets.
"We believe the region has a different situation today than globally. The region is thriving with high oil prices," Chief Executive Abdulmajeed Alsukhan told Reuters.
"We want to make sure our customers find the right products that suit them and find amazing deals."
Tamara, which has over 3 million active shoppers, is one of the Gulf Arab region's largest BNPL providers and competes with companies including Dubai-based Tabby.
Demand for BNPL, which allow consumers to order and take a product without immediately paying, has risen in recent years, driven by an increase in online shopping.
Most Gulf bourses in red on growth worries | Reuters
Most Gulf bourses in red on growth worries | Reuters
Major stock markets in the Gulf fell in early trade on Monday, as recession worries persisted amid concern the Federal Reserve will continue its steep interest rate hikes.
U.S. Federal Reserve Chair Jerome Powell headlines a host of policy makers at Jackson Hole later in the week and the risks are that he will not meet investor hopes for a dovish pivot on policy.
A Reuters poll of economists forecast the Fed will raise rates by 50 basis points in September, with the risks skewed towards a higher peak. read more
Saudi Arabia's benchmark index (.TASI) eased 0.2%, with Retal Urban Development Co (4322.SE) losing 0.9%, while Saudi Aramco (2222.SE) retreated 1.3% as the oil giant traded ex-dividend.
Elsewhere, Saudi Electricity Co (5110.SE) retreated 2.6% after the utility firm reported a decline in quarterly earnings.
Dubai's main share index (.DFMGI) dropped 0.3%, hit by a 1.2% fall in blue-chip developer Emaar Properties (EMAR.DU).
Emaar Properties said on Saturday it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF). read more
Emaar said in a bourse filing its board has in principle approved the sale, which values Namshi at $335.2 million, as a divestment to a related party.
In Abu Dhabi, the index (.FTFADGI) lost 0.4%, with telecoms firm e& (ETISALAT.AD), formerly know as Emirates Telecommunications, falling 1.3%.
Crude prices, a key catalyst for the Gulf's financial markets, slumped as investors were concerned aggressive U.S. interest rate hikes will weaken the global economy and dent fuel demand while a strengthening dollar also added to pressure.
The Qatari benchmark (.QSI) was down 0.6%, extending losses from the previous session, weighed down by a 5.1% slide in Qatar Navigation (QNNC.QA).
Major stock markets in the Gulf fell in early trade on Monday, as recession worries persisted amid concern the Federal Reserve will continue its steep interest rate hikes.
U.S. Federal Reserve Chair Jerome Powell headlines a host of policy makers at Jackson Hole later in the week and the risks are that he will not meet investor hopes for a dovish pivot on policy.
A Reuters poll of economists forecast the Fed will raise rates by 50 basis points in September, with the risks skewed towards a higher peak. read more
Saudi Arabia's benchmark index (.TASI) eased 0.2%, with Retal Urban Development Co (4322.SE) losing 0.9%, while Saudi Aramco (2222.SE) retreated 1.3% as the oil giant traded ex-dividend.
Elsewhere, Saudi Electricity Co (5110.SE) retreated 2.6% after the utility firm reported a decline in quarterly earnings.
Dubai's main share index (.DFMGI) dropped 0.3%, hit by a 1.2% fall in blue-chip developer Emaar Properties (EMAR.DU).
Emaar Properties said on Saturday it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF). read more
Emaar said in a bourse filing its board has in principle approved the sale, which values Namshi at $335.2 million, as a divestment to a related party.
In Abu Dhabi, the index (.FTFADGI) lost 0.4%, with telecoms firm e& (ETISALAT.AD), formerly know as Emirates Telecommunications, falling 1.3%.
Crude prices, a key catalyst for the Gulf's financial markets, slumped as investors were concerned aggressive U.S. interest rate hikes will weaken the global economy and dent fuel demand while a strengthening dollar also added to pressure.
The Qatari benchmark (.QSI) was down 0.6%, extending losses from the previous session, weighed down by a 5.1% slide in Qatar Navigation (QNNC.QA).
Equity fund managers cautiously optimistic about #Saudi markets - survey
Equity fund managers cautiously optimistic about Saudi markets - survey
Equity fund managers are cautiously optimistic about the Saudi markets, according to a new report by Al Rajhi Capital.
However, only 22% of those surveyed believe that a further rally exceeding 10% is likely.
"This is in contrast to our first survey, when over 90% were optimistic that the Saudi markets will beat the other GCC markets," the brokerage said in the report.
In terms of sentiment, the fund managers are divided with 48% believing further gains of 5-10%, while 30% believe the markets to be in a consolidation phase with gains ranging from 0 to 5%.
Moreover, the cautious sentiment was also reflected in the preference for investment style that is a combination of both growth and value (over 60% votes), while only 16% voted for growth style.
Similarly, in terms of market capitalisation, the majority (57%) of those surveyed preferred large cap stocks.
Equity fund managers are cautiously optimistic about the Saudi markets, according to a new report by Al Rajhi Capital.
However, only 22% of those surveyed believe that a further rally exceeding 10% is likely.
"This is in contrast to our first survey, when over 90% were optimistic that the Saudi markets will beat the other GCC markets," the brokerage said in the report.
In terms of sentiment, the fund managers are divided with 48% believing further gains of 5-10%, while 30% believe the markets to be in a consolidation phase with gains ranging from 0 to 5%.
Moreover, the cautious sentiment was also reflected in the preference for investment style that is a combination of both growth and value (over 60% votes), while only 16% voted for growth style.
Similarly, in terms of market capitalisation, the majority (57%) of those surveyed preferred large cap stocks.
Oil slumps on fears over economic slowdown, stronger dollar | Reuters
Oil slumps on fears over economic slowdown, stronger dollar | Reuters
Oil prices slumped on Monday, ending three days of gains, as investors were concerned aggressive U.S. interest rate hikes will weaken the global economy and dent fuel demand while a strengthening dollar also added to pressure.
Brent crude futures for October settlement declined $1.20, or 1.2%, to $95.52 a barrel by 0458 GMT.
U.S. West Texas Intermediate (WTI) crude futures for September delivery, due to expire on Monday, were down $1.24, or 1.4%, at $89.53 a barrel. The more active October contract was at $89.27, down $1.17, or 1.3%.
Both Brent and WTI climbed for a third straight day on Friday, but fell about 1.5% for the week on a stronger dollar and demand fears.
"Growing fears over a global economic slowdown are behind the fall in oil markets," said Tatsufumi Okoshi, senior economist at Nomura Securities.
"A higher U.S. dollar also prompted fresh selling," he said.
Oil prices slumped on Monday, ending three days of gains, as investors were concerned aggressive U.S. interest rate hikes will weaken the global economy and dent fuel demand while a strengthening dollar also added to pressure.
Brent crude futures for October settlement declined $1.20, or 1.2%, to $95.52 a barrel by 0458 GMT.
U.S. West Texas Intermediate (WTI) crude futures for September delivery, due to expire on Monday, were down $1.24, or 1.4%, at $89.53 a barrel. The more active October contract was at $89.27, down $1.17, or 1.3%.
Both Brent and WTI climbed for a third straight day on Friday, but fell about 1.5% for the week on a stronger dollar and demand fears.
"Growing fears over a global economic slowdown are behind the fall in oil markets," said Tatsufumi Okoshi, senior economist at Nomura Securities.
"A higher U.S. dollar also prompted fresh selling," he said.