Oil jumps nearly 4% on possible OPEC+ supply tightening | Reuters
Oil prices surged by nearly 4% on Tuesday after Saudi Arabia floated the idea of OPEC+ output cuts to support prices in the case of returning Iranian crude and with the prospect of a drop in U.S. inventories.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg. read more
Global benchmark Brent crude settled at$100.22 a barrel, up $3.74, or 3.9%. U.S. West Texas Intermediate crude closed $3.38, or 3.7%, higher at $93.74 a barrel.
Brent settled at its highest price since Aug. 2 and WTI logged its strongest settlement since Aug. 11.
Tuesday 23 August 2022
Oil jumps almost 3% as tight supply moves back into focus | Reuters
Oil jumps almost 3% as tight supply moves back into focus | Reuters
Oil rose almost 3% on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg in an interview. read more
Global benchmark Brent crude gained $2.52, or 2.6%, to $99.00 a barrel by 1345 GMT. U.S. West Texas Intermediate crude rose $2.34, or 2.6%, to $92.70.
"Whether cutting OPEC or OPEC+ output after September is justified is debatable," said Tamas Varga of oil broker PVM. "Despite the recent inflation-induced weakness, the oil market seemed to have found a bottom lately."
Oil has soared in 2022, coming close in March to an all-time high of $147 after Russia's invasion of Ukraine exacerbated supply concerns. Concern about a global recession, rising inflation and weaker demand has since weighed on prices.
Oil rose almost 3% on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg in an interview. read more
Global benchmark Brent crude gained $2.52, or 2.6%, to $99.00 a barrel by 1345 GMT. U.S. West Texas Intermediate crude rose $2.34, or 2.6%, to $92.70.
"Whether cutting OPEC or OPEC+ output after September is justified is debatable," said Tamas Varga of oil broker PVM. "Despite the recent inflation-induced weakness, the oil market seemed to have found a bottom lately."
Oil has soared in 2022, coming close in March to an all-time high of $147 after Russia's invasion of Ukraine exacerbated supply concerns. Concern about a global recession, rising inflation and weaker demand has since weighed on prices.
Qatar leads most Gulf indexes lower on recession worries | Reuters
Qatar leads most Gulf indexes lower on recession worries | Reuters
Most stock markets in the Gulf ended lower on Tuesday as risk appetite was dampened by recession fears and volatile energy prices, with the Qatari index underperforming the region.
Asian shares were down for a seventh straight session after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows.
Benchmark gas prices in the European Union surged 13% overnight to a record peak.
In Qatar, the index (.QSI) dropped 1.5%, as most of the stocks on the index were in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which was down 3.2%.
According to Ahmed Fouad, head of sales at Emporium Capital, investors moved to secure their gains. "The market could, however, find some support from the elevated natural gas prices."
Saudi Arabia's benchmark index (.TASI) gave up early gains to finish 1.1% lower, with Al Rajhi Bank (1120.SE) losing 1% and petrochemical maker Saudi Basic Industries Corp (2010.SE) retreating more than 2%.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Prince Abdulaziz bin Salman made to Bloomberg in an interview. read more
Crude prices rose $1.32 to $97.80 a barrel, by 1110 GMT, as tight supply moved back into focus over the chances of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
Dubai's main share index (.DFMGI) dropped 0.5%, hit by a 1.4% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Abu Dhabi index (.FTFADGI) eased 0.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 1.1% lower.
The Egyptian index, which is down more than 15% so far this year, has come under pressure because of a sharp slide in foreign portfolio investor holdings and rising costs of key commodity imports, especially since Russia's invasion of Ukraine.
Most stock markets in the Gulf ended lower on Tuesday as risk appetite was dampened by recession fears and volatile energy prices, with the Qatari index underperforming the region.
Asian shares were down for a seventh straight session after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows.
Benchmark gas prices in the European Union surged 13% overnight to a record peak.
In Qatar, the index (.QSI) dropped 1.5%, as most of the stocks on the index were in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which was down 3.2%.
According to Ahmed Fouad, head of sales at Emporium Capital, investors moved to secure their gains. "The market could, however, find some support from the elevated natural gas prices."
Saudi Arabia's benchmark index (.TASI) gave up early gains to finish 1.1% lower, with Al Rajhi Bank (1120.SE) losing 1% and petrochemical maker Saudi Basic Industries Corp (2010.SE) retreating more than 2%.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Prince Abdulaziz bin Salman made to Bloomberg in an interview. read more
Crude prices rose $1.32 to $97.80 a barrel, by 1110 GMT, as tight supply moved back into focus over the chances of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
Dubai's main share index (.DFMGI) dropped 0.5%, hit by a 1.4% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Abu Dhabi index (.FTFADGI) eased 0.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 1.1% lower.
The Egyptian index, which is down more than 15% so far this year, has come under pressure because of a sharp slide in foreign portfolio investor holdings and rising costs of key commodity imports, especially since Russia's invasion of Ukraine.
#Dubai's Emaar says Namshi sale to result in $171mln profit
Dubai's Emaar says Namshi sale to result in $171mln profit
Dubai's Emaar Properties said on Tuesday its sale of fashion e-commerce venture Namshi to e-commerce company Noon, will result in a net profit of AED 628.7 million ($171 million) based on the asset value recorded in Emaar's books as of June 30, 2022.
Last week, Dubai's biggest developer said its board had in principle approved the sale for $335.2 million.
The buyer, Noon, is an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF).
Emaar said the deal, a related party transaction as Alabbar is managing director and board member of Emaar and owns a 54% stake in Noon, was in line with its strategy to divest non-core assets. The proceeds will be invested in the core real estate business, it added.
Emaar Properties said the profit will be recorded in its books on completion of regulatory approvals expected within the next six months. A general meeting will be "held soon" to obtain shareholder approval, it added.
Emaar bought Namshi for a total of $281 million after first acquiring a 51% stake in 2017 before buying the remaining 49% in 2019, according to Reuters.
Dubai's Emaar Properties said on Tuesday its sale of fashion e-commerce venture Namshi to e-commerce company Noon, will result in a net profit of AED 628.7 million ($171 million) based on the asset value recorded in Emaar's books as of June 30, 2022.
Last week, Dubai's biggest developer said its board had in principle approved the sale for $335.2 million.
The buyer, Noon, is an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF).
Emaar said the deal, a related party transaction as Alabbar is managing director and board member of Emaar and owns a 54% stake in Noon, was in line with its strategy to divest non-core assets. The proceeds will be invested in the core real estate business, it added.
Emaar Properties said the profit will be recorded in its books on completion of regulatory approvals expected within the next six months. A general meeting will be "held soon" to obtain shareholder approval, it added.
Emaar bought Namshi for a total of $281 million after first acquiring a 51% stake in 2017 before buying the remaining 49% in 2019, according to Reuters.
#SaudiArabia Makes a Push for $100 Oil: Elements by @JavierBlas - Bloomberg
Saudi Arabia Makes a Push for $100 Oil: Elements by Javier Blas - Bloomberg
For long, Saudi Arabia pretended it didn’t target oil prices. The job of OPEC+ was all about matching supply with demand. Focus on fundamentals, and leave prices to the market, it used to say.
On Monday, in an unusual intervention, Saudi Energy Minister Prince Abdulaziz bin Salman indicated he didn’t like the yo-yo pricing he saw in the oil market. The problem, he said in a written interview with Bloomberg News, is that the physical and financial markets have “become increasingly more disconnected.”
Left unsaid, but clearly implied, is the real concern: oil prices were getting too low – and in the view of Riyadh, for no good reason.
With Brent falling toward a six-month low of $90 a barrel last week, Prince Abdulaziz said “cutting production at any time” was an option for OPEC+. The Saudi royal is a veteran policymaker, who knows very well the impact of those words. If there was any doubt, when the state-run Saudi Press Agency published its own version of the interview, it elevated the “cutting production” remark into the headline.
On Monday, in an unusual intervention, Saudi Energy Minister Prince Abdulaziz bin Salman indicated he didn’t like the yo-yo pricing he saw in the oil market. The problem, he said in a written interview with Bloomberg News, is that the physical and financial markets have “become increasingly more disconnected.”
Left unsaid, but clearly implied, is the real concern: oil prices were getting too low – and in the view of Riyadh, for no good reason.
With Brent falling toward a six-month low of $90 a barrel last week, Prince Abdulaziz said “cutting production at any time” was an option for OPEC+. The Saudi royal is a veteran policymaker, who knows very well the impact of those words. If there was any doubt, when the state-run Saudi Press Agency published its own version of the interview, it elevated the “cutting production” remark into the headline.
#Dubai’s Damac Explores €1 Billion in Tech Investments in Germany - Bloomberg
Dubai’s Damac Explores €1 Billion in Tech Investments in Germany - Bloomberg
Billionaire Hussain Sajwani’s Damac Group is exploring investment opportunities worth €1 billion in Germany as part of the Dubai firm’s expansion into technology.
Damac is interested in data centers and tech-related investments and is in the process of identifying partners, according to a statement. “I see a lot of opportunity and potential, especially in Eastern Germany that I would like to explore and learn more,” Chairman Sajwani said.
Privately-held Damac, which focuses primarily on real estate in Dubai, has been diversifying into sectors such as technology and fashion. The company in May purchased De Grisogono SA, a Swiss luxury jeweler, after buying Italian fashion group Roberto Cavalli SpA in 2019.
It set up Edgnex in 2021, a digital infrastructure provider to invest in data centers.
Billionaire Hussain Sajwani’s Damac Group is exploring investment opportunities worth €1 billion in Germany as part of the Dubai firm’s expansion into technology.
Damac is interested in data centers and tech-related investments and is in the process of identifying partners, according to a statement. “I see a lot of opportunity and potential, especially in Eastern Germany that I would like to explore and learn more,” Chairman Sajwani said.
Privately-held Damac, which focuses primarily on real estate in Dubai, has been diversifying into sectors such as technology and fashion. The company in May purchased De Grisogono SA, a Swiss luxury jeweler, after buying Italian fashion group Roberto Cavalli SpA in 2019.
It set up Edgnex in 2021, a digital infrastructure provider to invest in data centers.
Top Gulf Aluminum Maker EGA’s Profit Jumps as Metal Prices Rally - Bloomberg
Top Gulf Aluminum Maker EGA’s Profit Jumps as Metal Prices Rally - Bloomberg
Emirates Global Aluminium PJSC, whose shareholders are considering an initial public offering, posted a record first-half profit as prices of the metal soared.
Profit rose almost fourfold to 5.9 billion dirhams ($1.6 billion), the Middle East’s biggest aluminum producer said Tuesday. That exceeded the profit the firm reported for the whole of last year. Revenue jumped about 70% to 18.3 billion dirhams.
Aluminum, used in everything from beer cans to plane parts, averaged about 36% higher in London over the first half of the year compared with the year-earlier period after Russia’s invasion of Ukraine roiled markets. Prices have since dropped from the highs reached in March, with aluminum trading at $2,394 a ton on the London Metal Exchange. EGA warned of tougher conditions.
“We expect the market conditions to be more challenging the second half of the year,” Chief Executive Officer Abdulnasser bin Kalban said in an interview. “We remain well on the course for a strong and incredible year overall.”
Emirates Global Aluminium PJSC, whose shareholders are considering an initial public offering, posted a record first-half profit as prices of the metal soared.
Profit rose almost fourfold to 5.9 billion dirhams ($1.6 billion), the Middle East’s biggest aluminum producer said Tuesday. That exceeded the profit the firm reported for the whole of last year. Revenue jumped about 70% to 18.3 billion dirhams.
Aluminum, used in everything from beer cans to plane parts, averaged about 36% higher in London over the first half of the year compared with the year-earlier period after Russia’s invasion of Ukraine roiled markets. Prices have since dropped from the highs reached in March, with aluminum trading at $2,394 a ton on the London Metal Exchange. EGA warned of tougher conditions.
“We expect the market conditions to be more challenging the second half of the year,” Chief Executive Officer Abdulnasser bin Kalban said in an interview. “We remain well on the course for a strong and incredible year overall.”
Most major Gulf bourses ease on recession worries | Reuters
Most major Gulf bourses ease on recession worries | Reuters
Most major stock markets in the Gulf slipped in early deals on Tuesday, tracking losses in Asian shares, while Saudi Arabia bucked the trend to trade higher on the back of gains in banks.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dipped 0.4% after a renewed spike in European energy prices stoked fears of recession. The index has fallen every day in the past week.
Benchmark gas prices in the European Union surged 13% overnight to a record peak.
In Qatar, the stock index (.QSI) declined 1.4%, dragged down by a 1.8% drop in Qatar National Bank (QNBK.QA), the Gulf's biggest lender, and a 1.5% fall in Qatar Islamic Bank (QISB.QA).
Dubai's main share index (.DFMGI) lost 0.2%, hit by a 0.7% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, shares (.FTFADGI) eased 0.1%, with conglomerated International Holding Co (IHC.AD) down 0.2%.
Saudi Arabia's benchmark index (.TASI), however, added 0.2%, helped by a 0.7% increase in Al Rajhi Bank (1120.SE) and a 0.6% rise in Saudi National Bank (1180.SE).
Crude prices, a key catalyst for the Gulf's financial markets, rose as renewed concerns over tight supply dominated market sentiment after Saudi Arabia warned that the major oil producer could cut output to correct a recent oil price decline.
The Organization of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply, OPEC's leader Saudi Arabia said on Monday. read more
Most major stock markets in the Gulf slipped in early deals on Tuesday, tracking losses in Asian shares, while Saudi Arabia bucked the trend to trade higher on the back of gains in banks.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dipped 0.4% after a renewed spike in European energy prices stoked fears of recession. The index has fallen every day in the past week.
Benchmark gas prices in the European Union surged 13% overnight to a record peak.
In Qatar, the stock index (.QSI) declined 1.4%, dragged down by a 1.8% drop in Qatar National Bank (QNBK.QA), the Gulf's biggest lender, and a 1.5% fall in Qatar Islamic Bank (QISB.QA).
Dubai's main share index (.DFMGI) lost 0.2%, hit by a 0.7% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, shares (.FTFADGI) eased 0.1%, with conglomerated International Holding Co (IHC.AD) down 0.2%.
Saudi Arabia's benchmark index (.TASI), however, added 0.2%, helped by a 0.7% increase in Al Rajhi Bank (1120.SE) and a 0.6% rise in Saudi National Bank (1180.SE).
Crude prices, a key catalyst for the Gulf's financial markets, rose as renewed concerns over tight supply dominated market sentiment after Saudi Arabia warned that the major oil producer could cut output to correct a recent oil price decline.
The Organization of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply, OPEC's leader Saudi Arabia said on Monday. read more
Oil climbs as tight supply moves back into focus | Reuters
Oil climbs as tight supply moves back into focus | Reuters
Oil rose $1 a barrel on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg in an interview. read more
Global benchmark Brent crude gained $1.32, or 1.4%, to $97.80 a barrel by 1110 GMT. U.S. West Texas Intermediate crude rose $1.65, or 1.8%, to $92.01.
"Whether cutting OPEC or OPEC+ output after September is justified is debatable," said Tamas Varga of oil broker PVM. "Despite the recent inflation-induced weakness, the oil market seemed to have found a bottom lately."
Oil has soared in 2022, coming close in March to an all-time high of $147 after Russia's invasion of Ukraine exacerbated supply concerns. Concern about a global recession, rising inflation and weaker demand has since weighed on prices.
Oil rose $1 a barrel on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg in an interview. read more
Global benchmark Brent crude gained $1.32, or 1.4%, to $97.80 a barrel by 1110 GMT. U.S. West Texas Intermediate crude rose $1.65, or 1.8%, to $92.01.
"Whether cutting OPEC or OPEC+ output after September is justified is debatable," said Tamas Varga of oil broker PVM. "Despite the recent inflation-induced weakness, the oil market seemed to have found a bottom lately."
Oil has soared in 2022, coming close in March to an all-time high of $147 after Russia's invasion of Ukraine exacerbated supply concerns. Concern about a global recession, rising inflation and weaker demand has since weighed on prices.
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