Oil settles up more than 4% on prospect of OPEC+ supply cut | Reuters
Oil prices settled up more than 4% on Monday, extending last week's gain, as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.
Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC), last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. read more
OPEC+, comprising OPEC, Russia and allied producers, meets to set policy on Sept. 5.
Brent crude settled up $4.10, or 4.1%, at $105.09 a barrel, having risen by 4.4% last week. U.S. West Texas Intermediate (WTI) crude gained $3.95, or 4.2%, to$ 97.01, after rallying 2.5% last week.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
Monday, 29 August 2022
Oil Rises as Musk, Van Beurden Warn of Energy Supply Challenges - Bloomberg
Oil Rises as Musk, Van Beurden Warn of Energy Supply Challenges - Bloomberg
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Oil climbed as traders weighed supply risks and executive warnings of further energy crunches against central bank pledges to raise interest rates further.
West Texas Intermediate rose above $94 a barrel after gaining 2.5% last week. In Libya, clashes between militias in the capital left at least 23 dead, sparking fears of further upheaval in the OPEC nation. While Libya’s output so far remains stable, investors are watching for signs that the violence may again put oil shipments at risk just as Europe reels from an energy crisis.
It’s a “fantasy” that the global energy crunch will be easy to overcome, Ben Van Beurden, chief executive officer of oil and gas giant Shell Plc, said at a conference in Norway. Speaking at the same event, Tesla Inc. CEO Elon Musk said the world needs more oil and gas now while also pushing to transition to renewable supplies.
Iran, meanwhile, said exchanges with the US over a European Union proposal to revive a nuclear deal will drag on into next month, undercutting speculation that an agreement paving the way for increased oil flows is imminent.
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Oil climbed as traders weighed supply risks and executive warnings of further energy crunches against central bank pledges to raise interest rates further.
West Texas Intermediate rose above $94 a barrel after gaining 2.5% last week. In Libya, clashes between militias in the capital left at least 23 dead, sparking fears of further upheaval in the OPEC nation. While Libya’s output so far remains stable, investors are watching for signs that the violence may again put oil shipments at risk just as Europe reels from an energy crisis.
It’s a “fantasy” that the global energy crunch will be easy to overcome, Ben Van Beurden, chief executive officer of oil and gas giant Shell Plc, said at a conference in Norway. Speaking at the same event, Tesla Inc. CEO Elon Musk said the world needs more oil and gas now while also pushing to transition to renewable supplies.
Iran, meanwhile, said exchanges with the US over a European Union proposal to revive a nuclear deal will drag on into next month, undercutting speculation that an agreement paving the way for increased oil flows is imminent.
#Dubai Diamond Exchange sees trade worth $19.8 bln in first half of year -DMCC Chairman | Reuters
Dubai Diamond Exchange sees trade worth $19.8 bln in first half of year -DMCC Chairman | Reuters
Around $19.8 billion worth of diamonds have been traded through the United Arab Emirates in the first half of 2022, the head of the Dubai Multi Commodities Centre (DMCC) said on Monday, a 24.7% increase year-on-year.
Dubai has grown its diamond industry by leveraging its proximity to Africa and Russia, where many diamonds are mined, and India, where 90% of the world's diamonds are polished.
DMCC Chief Executive Ahmed Bin Sulayem said, "business owners from all countries are welcome equally to conduct their business in what is one of the safest environments of its kind."
The polished diamond trade in the Gulf state increased 52.5% from a year ago, with a gross trade of $6.7 billion, while the value of rough diamonds traded in the first half of 2022 was $13 billion, he said.
Since its establishment in 2012, 90 billion carats of polished diamonds and 120 billion carats of rough diamonds have been traded through the Dubai Diamond Exchange, housed in the DMCC.
Around $19.8 billion worth of diamonds have been traded through the United Arab Emirates in the first half of 2022, the head of the Dubai Multi Commodities Centre (DMCC) said on Monday, a 24.7% increase year-on-year.
Dubai has grown its diamond industry by leveraging its proximity to Africa and Russia, where many diamonds are mined, and India, where 90% of the world's diamonds are polished.
DMCC Chief Executive Ahmed Bin Sulayem said, "business owners from all countries are welcome equally to conduct their business in what is one of the safest environments of its kind."
The polished diamond trade in the Gulf state increased 52.5% from a year ago, with a gross trade of $6.7 billion, while the value of rough diamonds traded in the first half of 2022 was $13 billion, he said.
Since its establishment in 2012, 90 billion carats of polished diamonds and 120 billion carats of rough diamonds have been traded through the Dubai Diamond Exchange, housed in the DMCC.
Mideast Stocks: Most Gulf markets in red on rate hike fears
Mideast Stocks: Most Gulf markets in red on rate hike fears
Most stock markets in the Gulf finished lower on Monday, as the growing risk of more aggressive interest rate hikes in the United States and Europe spooked investors.
Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole symposium on Friday, said the Fed would raise rates as high as needed to restrict growth, and keep them there "for some time" to bring down inflation running well above its 2% target.
Most Gulf Cooperation Council countries have their currencies pegged to the U.S. dollar and broadly follow the Fed's policy moves, exposing the region to a direct impact from monetary tightening.
In Abu Dhabi, the index dropped 1.1%, dragged down by a 3% slide in the United Arab Emirates' biggest lender First Abu Dhabi Bank. Dubai's main share index closed 0.8% lower, hit by a 1% fall in blue-chip developer Emaar Properties and a 1% decline in sharia-compliant lender Dubai Islamic Bank.
European Central Bank board member Isabel Schnabel added to market jitters. On Saturday, she warned that central banks risk losing public trust and must act forcefully to curb inflation, even if that drags their economies into a recession.
Saudi Arabia's benchmark index gave up early gains to end flat. Oil edged higher to extend last week's gains as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth. Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC), last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.
Outside the Gulf, Egypt's blue-chip index lost 0.6%, with Madinet Nasr For Housing And Development retreating about 7%.
Most stock markets in the Gulf finished lower on Monday, as the growing risk of more aggressive interest rate hikes in the United States and Europe spooked investors.
Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole symposium on Friday, said the Fed would raise rates as high as needed to restrict growth, and keep them there "for some time" to bring down inflation running well above its 2% target.
Most Gulf Cooperation Council countries have their currencies pegged to the U.S. dollar and broadly follow the Fed's policy moves, exposing the region to a direct impact from monetary tightening.
In Abu Dhabi, the index dropped 1.1%, dragged down by a 3% slide in the United Arab Emirates' biggest lender First Abu Dhabi Bank. Dubai's main share index closed 0.8% lower, hit by a 1% fall in blue-chip developer Emaar Properties and a 1% decline in sharia-compliant lender Dubai Islamic Bank.
European Central Bank board member Isabel Schnabel added to market jitters. On Saturday, she warned that central banks risk losing public trust and must act forcefully to curb inflation, even if that drags their economies into a recession.
Saudi Arabia's benchmark index gave up early gains to end flat. Oil edged higher to extend last week's gains as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth. Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC), last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.
Outside the Gulf, Egypt's blue-chip index lost 0.6%, with Madinet Nasr For Housing And Development retreating about 7%.
#Saudi's Alfanar to build $3.5 bln green hydrogen project in Egypt | Reuters
Saudi's Alfanar to build $3.5 bln green hydrogen project in Egypt | Reuters
Saudi Arabian company Alfanar said on Monday it has signed a memorandum of understanding to build a $3.5 billion green hydrogen project in Egypt.
The facility will produce 500,000 tonnes of green ammonia, which is used in agricultural fertilisers, from 100,000 tonnes of green hydrogen per year.
The project is among seven MOUs signed last week between Egypt and international companies, including Globeleq and Actis, to set up green hydrogen and ammonia production facilities in the Egyptian town of Ain Sokhna.
Egypt, the host of the upcoming COP27 UN Climate Change Conference, has been trying to position itself as a regional hub for green fuel production. The country has signed a number of MOUs in the past few months including for an $8 billion green hydrogen factory in the Suez Canal Economic Zone. Details such as launch dates have not been disclosed.
Alfanar builds power generation and transmission projects, including renewable power. It operates a 50MW solar project in the Benban Solar Park in Egypt's Aswan.
Saudi Arabian company Alfanar said on Monday it has signed a memorandum of understanding to build a $3.5 billion green hydrogen project in Egypt.
The facility will produce 500,000 tonnes of green ammonia, which is used in agricultural fertilisers, from 100,000 tonnes of green hydrogen per year.
The project is among seven MOUs signed last week between Egypt and international companies, including Globeleq and Actis, to set up green hydrogen and ammonia production facilities in the Egyptian town of Ain Sokhna.
Egypt, the host of the upcoming COP27 UN Climate Change Conference, has been trying to position itself as a regional hub for green fuel production. The country has signed a number of MOUs in the past few months including for an $8 billion green hydrogen factory in the Suez Canal Economic Zone. Details such as launch dates have not been disclosed.
Alfanar builds power generation and transmission projects, including renewable power. It operates a 50MW solar project in the Benban Solar Park in Egypt's Aswan.
Oil edges higher on prospect of OPEC+ supply cut | Reuters
Oil edges higher on prospect of OPEC+ supply cut | Reuters
Oil edged higher on Monday to extend last week's gains as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.
Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. read more
Brent crude was up 13 cents, or 0.1%, at $101.12 a barrel by 1150 GMT, having risen by 4.4% last week. U.S. West Texas Intermediate (WTI) crude was up 10 cents, or 0.1%, at $93.16 after gaining 2.5% last week.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
Oil edged higher on Monday to extend last week's gains as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.
Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. read more
Brent crude was up 13 cents, or 0.1%, at $101.12 a barrel by 1150 GMT, having risen by 4.4% last week. U.S. West Texas Intermediate (WTI) crude was up 10 cents, or 0.1%, at $93.16 after gaining 2.5% last week.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
How policy changes are ushering in a new era for the #UAE’s LNG sector
How policy changes are ushering in a new era for the UAE’s LNG sector
It is one of only five countries that exports and imports liquefied natural gas (LNG) — the others have far-flung territories that need tankers to transfer gas between them. But policy changes in recent years will help to resolve those paradoxes and move the nation’s gas business into a new era.
Much of the UAE’s gas production, which is associated with oil output, is inflexible. Demand varies widely by season, while oil production can be curtailed by factors such as commitments under the Opec+ agreement.
Until the start-up of nuclear and solar power in recent years, the country was almost entirely reliant on gas for generating electricity, while it is also a fuel and feedstock for industries such as petrochemicals.
The strong economic and population growth over the past two decades led to surging demand, outstripping, at least temporarily, the amount that could be produced domestically.
In July 2007, Dolphin Energy, which is majority-owned by Mubadala, began delivering gas to the UAE by pipeline from Qatar.
It is one of only five countries that exports and imports liquefied natural gas (LNG) — the others have far-flung territories that need tankers to transfer gas between them. But policy changes in recent years will help to resolve those paradoxes and move the nation’s gas business into a new era.
Much of the UAE’s gas production, which is associated with oil output, is inflexible. Demand varies widely by season, while oil production can be curtailed by factors such as commitments under the Opec+ agreement.
Until the start-up of nuclear and solar power in recent years, the country was almost entirely reliant on gas for generating electricity, while it is also a fuel and feedstock for industries such as petrochemicals.
The strong economic and population growth over the past two decades led to surging demand, outstripping, at least temporarily, the amount that could be produced domestically.
In July 2007, Dolphin Energy, which is majority-owned by Mubadala, began delivering gas to the UAE by pipeline from Qatar.
Mideast Stocks: Gulf markets mixed as firmer oil prices counter global outlook
Mideast Stocks: Gulf markets mixed as firmer oil prices counter global outlook
Stock markets in the Gulf were mixed on Monday after firmer oil prices, a key catalyst for financial markets in the Middle East, partially countered heightened risks of a more hawkish monetary policy in the United States and Europe.
European Central Bank board member Isabel Schnabel urged central banks to act forcefully to combat inflation even at the risk of economies sliding into recession, doubling down on comments by Federal Reserve Chair Jerome Powell signalling a tight policy ahead.
Most markets in the region traded on the back foot in the previous session in anticipation of a watered-down global growth as priorities shifted from supporting economy to combating decades-high inflation.
Most Gulf Cooperation Council countries have their currencies pegged to the U.S. dollar and broadly follow the Fed's policy moves, exposing the region to a direct impact from monetary tightening.
The Abu Dhabi index dropped 0.7% of its value in its first session following comments in support of a tighter monetary policy. The lenders led slide with First Abu Dhabi Bank and Abu Dhabi Islamic Bank shedding 1.7% and 1.2%, respectively.
Banks also drove Dubai's index lower, dragged down by a 0.8% fall in Dubai Islamic Bank and a 0.6% drop in Emirates NBD.
Saudi Arabia's benchmark index, however, rebounded from Sunday's slide as buoyant oil prices offset the impact from tight monetary policy outlook.
Oil prices rose after Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, signalled that they could cut output in order to balance the market.
The 0.4% rise in Saudi stocks was driven mainly by financial stocks, with Al Rajhi Bank up 0.2% and Alinma Bank gaining 0.9%.
The Qatar index traded flat earlier in the day, with financials and industrial stocks pulling the market in opposite directions.
Stock markets in the Gulf were mixed on Monday after firmer oil prices, a key catalyst for financial markets in the Middle East, partially countered heightened risks of a more hawkish monetary policy in the United States and Europe.
European Central Bank board member Isabel Schnabel urged central banks to act forcefully to combat inflation even at the risk of economies sliding into recession, doubling down on comments by Federal Reserve Chair Jerome Powell signalling a tight policy ahead.
Most markets in the region traded on the back foot in the previous session in anticipation of a watered-down global growth as priorities shifted from supporting economy to combating decades-high inflation.
Most Gulf Cooperation Council countries have their currencies pegged to the U.S. dollar and broadly follow the Fed's policy moves, exposing the region to a direct impact from monetary tightening.
The Abu Dhabi index dropped 0.7% of its value in its first session following comments in support of a tighter monetary policy. The lenders led slide with First Abu Dhabi Bank and Abu Dhabi Islamic Bank shedding 1.7% and 1.2%, respectively.
Banks also drove Dubai's index lower, dragged down by a 0.8% fall in Dubai Islamic Bank and a 0.6% drop in Emirates NBD.
Saudi Arabia's benchmark index, however, rebounded from Sunday's slide as buoyant oil prices offset the impact from tight monetary policy outlook.
Oil prices rose after Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, signalled that they could cut output in order to balance the market.
The 0.4% rise in Saudi stocks was driven mainly by financial stocks, with Al Rajhi Bank up 0.2% and Alinma Bank gaining 0.9%.
The Qatar index traded flat earlier in the day, with financials and industrial stocks pulling the market in opposite directions.
Oil rises on prospect of OPEC+ supply cut | Reuters
Oil rises on prospect of OPEC+ supply cut | Reuters
Oil rose almost 1% on Monday as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.
Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. read more
Brent crude rose 65 cents, or 0.6%, to $101.64 a barrel by 0815 GMT, extending last week's 4.4% gain. U.S. West Texas Intermediate (WTI) crude was up $1.22, or 1.3%, at $94.28 after rising by 2.5% last week.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
Oil rose almost 1% on Monday as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.
Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. read more
Brent crude rose 65 cents, or 0.6%, to $101.64 a barrel by 0815 GMT, extending last week's 4.4% gain. U.S. West Texas Intermediate (WTI) crude was up $1.22, or 1.3%, at $94.28 after rising by 2.5% last week.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
#Iran May Drain Offshore Crude Oil Cache If Nuclear Deal Reached - Bloomberg
Iran May Drain Offshore Crude Oil Cache If Nuclear Deal Reached - Bloomberg
Progress toward an Iranian nuclear deal has thrown the spotlight onto a sizeable cache of crude held by Tehran that could be swiftly dispatched to buyers in the event an agreement gets hammered out.
About 93 million barrels of Iranian crude and condensate are currently stored on vessels in the Persian Gulf, off Singapore and near China, according to ship-tracking firm Kpler, while Vortexa Ltd. estimates the holdings at 60 to 70 million barrels. In addition, there are smaller volumes in onshore tanks.
“Iran has built up a sizable flotilla of cargoes that could hit the market fairly soon,” said John Driscoll, chief strategist at JTD Energy Services Pte. Still, it may take “a bit of time” to iron out insurance and shipping issues, as well as spot and term sales post-sanctions, he said.
The possible full readmittance of Iran to the global crude market, with the potential lifting of US sanctions, comes at complex moment for oil traders. Investors are juggling the countdown toward far tighter European Union curbs on Russian crude flows from December as part of the the bloc’s pushback against the war in Ukraine. In addition, the Biden administration’s mammoth sale from the Strategic Petroleum Reserve will end in October.
Progress toward an Iranian nuclear deal has thrown the spotlight onto a sizeable cache of crude held by Tehran that could be swiftly dispatched to buyers in the event an agreement gets hammered out.
About 93 million barrels of Iranian crude and condensate are currently stored on vessels in the Persian Gulf, off Singapore and near China, according to ship-tracking firm Kpler, while Vortexa Ltd. estimates the holdings at 60 to 70 million barrels. In addition, there are smaller volumes in onshore tanks.
“Iran has built up a sizable flotilla of cargoes that could hit the market fairly soon,” said John Driscoll, chief strategist at JTD Energy Services Pte. Still, it may take “a bit of time” to iron out insurance and shipping issues, as well as spot and term sales post-sanctions, he said.
The possible full readmittance of Iran to the global crude market, with the potential lifting of US sanctions, comes at complex moment for oil traders. Investors are juggling the countdown toward far tighter European Union curbs on Russian crude flows from December as part of the the bloc’s pushback against the war in Ukraine. In addition, the Biden administration’s mammoth sale from the Strategic Petroleum Reserve will end in October.
Oil rises on prospect of OPEC supply cut, demand growth | Reuters
Oil rises on prospect of OPEC supply cut, demand growth | Reuters
Oil prices rose 1% on Monday, as expectations that OPEC would cut output if needed to support prices, coupled with conflict in Libya and rising demand amid soaring natural gas prices in Europe, helped offset a dire outlook for U.S. growth.
U.S. West Texas Intermediate (WTI) crude futures were up 45 cents, or 0.48%, to $93.51 a barrel by 0632 GMT, adding to a gain of 2.5% last week.
Brent crude futures rose 16 cents, or 0.16%, to $101.15 a barrel, extending last week's gain of 4.4%.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
Strong U.S. oil exports and a bigger-than-expected draw of oil inventory in the last couple of weeks have also eased some demand concerns amid slowdown fears, Sachdeva added.
Oil prices rose 1% on Monday, as expectations that OPEC would cut output if needed to support prices, coupled with conflict in Libya and rising demand amid soaring natural gas prices in Europe, helped offset a dire outlook for U.S. growth.
U.S. West Texas Intermediate (WTI) crude futures were up 45 cents, or 0.48%, to $93.51 a barrel by 0632 GMT, adding to a gain of 2.5% last week.
Brent crude futures rose 16 cents, or 0.16%, to $101.15 a barrel, extending last week's gain of 4.4%.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
Strong U.S. oil exports and a bigger-than-expected draw of oil inventory in the last couple of weeks have also eased some demand concerns amid slowdown fears, Sachdeva added.
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