Oil dives nearly $6 a barrel on demand fears, Iraq exports | Reuters
Oil prices fell nearly $6 a barrel on Tuesday, the steepest decline in about a month, on fears that fuel demand could soften as global central banks hike rates to fight surging inflation, and as unrest in Iraq failed to dent the OPEC nation's crude exports.
Brent crude futures for October settled down $5.78, or 5.5%, at $99.31 a barrel after touching a session low of $97.55 a barrel.
The October contract expires on Wednesday and the more active November contract was at $97.84, down 4.9%.
U.S. West Texas Intermediate crude dropped by $5., or 5.5%, to $91.64.
Inflation is near double-digit territory in many of the world's biggest economies. This could prompt central banks to resort to more aggressive interest rate increases, which could slow economic growth and fuel demand. read more
Tuesday 30 August 2022
Russia gives 12.5% stake in Sakhalin Energy to Mitsui unit | Reuters
Russia gives 12.5% stake in Sakhalin Energy to Mitsui unit | Reuters
The Russian government on Tuesday said it approved handing over a 12.5% stake in operator of Russia's Sakhalin 2 liquefied natural gas plant to Dubai-based MIT SEL Investment Ltd, a subsidiary of Japanese trading house Mitsui & Co (8031.T).
The move comes after Russian President Vladimir Putin signed a decree in June, which created a new legal entity Sakhalin Energy LLC to deal with for buyers and shareholders, which apart from Mitsui & Co also include Shell (SHEL.L) and Mitsubishi Corp (8058.T). read more
The decree, which followed Western sanctions imposed on Moscow over what it calls a "special military operation" in Ukraine, indicated the Kremlin will now decide whether the foreign partners can stay.
Earlier on Tuesday, Japan's biggest city gas supplier Tokyo Gas Co Ltd (9531.T) said it signed a long-term contract with Sakhalin Energy LLC to buy liquefied gas. read more
The Russian government on Tuesday said it approved handing over a 12.5% stake in operator of Russia's Sakhalin 2 liquefied natural gas plant to Dubai-based MIT SEL Investment Ltd, a subsidiary of Japanese trading house Mitsui & Co (8031.T).
The move comes after Russian President Vladimir Putin signed a decree in June, which created a new legal entity Sakhalin Energy LLC to deal with for buyers and shareholders, which apart from Mitsui & Co also include Shell (SHEL.L) and Mitsubishi Corp (8058.T). read more
The decree, which followed Western sanctions imposed on Moscow over what it calls a "special military operation" in Ukraine, indicated the Kremlin will now decide whether the foreign partners can stay.
Earlier on Tuesday, Japan's biggest city gas supplier Tokyo Gas Co Ltd (9531.T) said it signed a long-term contract with Sakhalin Energy LLC to buy liquefied gas. read more
Mideast Diesel Floods Europe in Taster of Trading Without Russia - Bloomberg
Mideast Diesel Floods Europe in Taster of Trading Without Russia - Bloomberg
Oil refineries in the Middle East are ramping up diesel deliveries to Europe, giving the continent an early glimpse of how it might fare without supplies from Russia.
About about 435,000 barrels a day of diesel-type fuels are expected to arrive at European ports from the Middle East, this month, according to tanker tracking and Vortexa Ltd. data compiled by Bloomberg. That’s the highest since at least the start of 2019.
Europe will ban imports of diesel from Russia starting early February as punishment for the country’s invasion of Ukraine. While that’s still five months away, the restriction will be felt far sooner in the trading market. The measure will create an acute need for deliveries from elsewhere since Russia has long been Europe’s top external supplier.
The “Middle East is likely to be a prime supplier” this winter, said Steve Sawyer, director of refining at industry consultant FGE, who expects European demand to rise year-on-year by then.
Oil refineries in the Middle East are ramping up diesel deliveries to Europe, giving the continent an early glimpse of how it might fare without supplies from Russia.
About about 435,000 barrels a day of diesel-type fuels are expected to arrive at European ports from the Middle East, this month, according to tanker tracking and Vortexa Ltd. data compiled by Bloomberg. That’s the highest since at least the start of 2019.
Europe will ban imports of diesel from Russia starting early February as punishment for the country’s invasion of Ukraine. While that’s still five months away, the restriction will be felt far sooner in the trading market. The measure will create an acute need for deliveries from elsewhere since Russia has long been Europe’s top external supplier.
The “Middle East is likely to be a prime supplier” this winter, said Steve Sawyer, director of refining at industry consultant FGE, who expects European demand to rise year-on-year by then.
Oil slides more than $4 on inflation and Iraq exports | Reuters
Oil slides more than $4 on inflation and Iraq exports | Reuters
Oil prices fell about $4 a barrel on Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand and as unrest in Iraq has not put a dent in the OPEC nation's crude exports.
Brent crude futures for October settlement were down $4.43, or 4.2%, at $100.62 a barrel by 11:00 a.m. ET (1500 GMT) after touching a session low of $99.66 a barrel.
The October contract expires on Wednesday and the more active November contract was at $99.19, down 3.6%.
U.S. West Texas Intermediate crude dropped by $4.00, or 4.1%, to $93.01.
Inflation is near double-digit territory in many of the world's biggest economies. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate increases, which could slow economic growth and weigh on fuel demand. read more
"Investors are now waiting for the monthly employment data on Friday" said Kunal Sawhney, chief executive of equity researcher Kalkine Group.
Oil prices fell about $4 a barrel on Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand and as unrest in Iraq has not put a dent in the OPEC nation's crude exports.
Brent crude futures for October settlement were down $4.43, or 4.2%, at $100.62 a barrel by 11:00 a.m. ET (1500 GMT) after touching a session low of $99.66 a barrel.
The October contract expires on Wednesday and the more active November contract was at $99.19, down 3.6%.
U.S. West Texas Intermediate crude dropped by $4.00, or 4.1%, to $93.01.
Inflation is near double-digit territory in many of the world's biggest economies. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate increases, which could slow economic growth and weigh on fuel demand. read more
"Investors are now waiting for the monthly employment data on Friday" said Kunal Sawhney, chief executive of equity researcher Kalkine Group.
Most Gulf bourses in red as oil slide weighs on region | Reuters
Most Gulf bourses in red as oil slide weighs on region | Reuters
Most stock markets in the Gulf ended lower on Tuesday, following a sharp decline in oil prices and worries about a potential global recession.
Crude prices, a key catalyst for the Gulf's financial markets, fell by over $3 a barrel on fears an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.
Brent crude futures for October settlement fell $3.81, or 3.63%, to $101.28 a barrel by 1156 GMT, after hitting a session low of $100.90 a barrel.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to half a century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more
Saudi Arabia's benchmark index (.TASI) declined 0.6%, weighed down by a 2.9% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.6% decrease in Al Rajhi Bank (1120.SE).
The Qatari index (.QSI) eased 0.1%, with Qatar Islamic Bank (QISB.QA) losing 1.3%.
In Abu Dhabi, the index (.FTFADGI) closed flat after a more than 1% decline in the previous session, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) edging 0.2% higher.
Dubai's main share index (.DFMGI), however, bucked the trend to close 0.8%, buoyed by a 2.7% jump in blue-chip developer Emaar Properties (EMAR.DU).
Outside the Gulf, Egypt's blue-chip index (.EGX30) firmed 0.1%, ending two sessions of losses, helped by a 2.7% rise in Abu Qir Fertilizers (ABUK.CA).
The 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, following a sharp decline in oil prices and worries about a potential global recession.
Crude prices, a key catalyst for the Gulf's financial markets, fell by over $3 a barrel on fears an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.
Brent crude futures for October settlement fell $3.81, or 3.63%, to $101.28 a barrel by 1156 GMT, after hitting a session low of $100.90 a barrel.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to half a century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more
Saudi Arabia's benchmark index (.TASI) declined 0.6%, weighed down by a 2.9% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.6% decrease in Al Rajhi Bank (1120.SE).
The Qatari index (.QSI) eased 0.1%, with Qatar Islamic Bank (QISB.QA) losing 1.3%.
In Abu Dhabi, the index (.FTFADGI) closed flat after a more than 1% decline in the previous session, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) edging 0.2% higher.
Dubai's main share index (.DFMGI), however, bucked the trend to close 0.8%, buoyed by a 2.7% jump in blue-chip developer Emaar Properties (EMAR.DU).
Outside the Gulf, Egypt's blue-chip index (.EGX30) firmed 0.1%, ending two sessions of losses, helped by a 2.7% rise in Abu Qir Fertilizers (ABUK.CA).
The 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.
Gulf banks with Turkey exposure to suffer further losses, Fitch says | Reuters
Gulf banks with Turkey exposure to suffer further losses, Fitch says | Reuters
Gulf banks with exposure to Turkey are expected to make further net monetary losses on their investments in the second half of this year and into 2023, ratings agency Fitch said on Tuesday.
Gulf banks with Turkish subsidiaries are estimated to have registered $950 million of net monetary losses in the first half of 2022, Fitch said, as they account for their exposure in the currency of a hyperinflation economy.
Fitch said Dubai's Emirates NBD (ENBD.DU) and Kuwait Finance House (KFH.KW) were the worst-affected when looking at the ratings firm's core profitability metric, which is operating profit over risk-weighted assets.
Interest rate cuts under President Tayyip Erdogan's new economic programme saw the lira end last year down 44% against the dollar and shed another 27% so far this year, sending inflation to a 24-year high of nearly 80% in July.
Gulf banks with exposure to Turkey are expected to make further net monetary losses on their investments in the second half of this year and into 2023, ratings agency Fitch said on Tuesday.
Gulf banks with Turkish subsidiaries are estimated to have registered $950 million of net monetary losses in the first half of 2022, Fitch said, as they account for their exposure in the currency of a hyperinflation economy.
Fitch said Dubai's Emirates NBD (ENBD.DU) and Kuwait Finance House (KFH.KW) were the worst-affected when looking at the ratings firm's core profitability metric, which is operating profit over risk-weighted assets.
Interest rate cuts under President Tayyip Erdogan's new economic programme saw the lira end last year down 44% against the dollar and shed another 27% so far this year, sending inflation to a 24-year high of nearly 80% in July.
Fintech firm Wise fined $360,000 by #AbuDhabi regulator | Reuters
Fintech firm Wise fined $360,000 by Abu Dhabi regulator | Reuters
The regulator of Abu Dhabi's free zone financial centre said on Tuesday it had fined the local subsidiary of fintech firm Wise $360,000 for breaching anti-money laundering (AML) requirements.
Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA) "found that Wise did not establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations", it said in a statement.
Wise said in response to a Reuters query that it takes its responsibility to protect its customers and prevent money laundering "very seriously", and that neither the FSRA nor the company had identified instances of money laundering or other financial crimes.
The FSRA also said its review had not found instances of actual money laundering as a result of Wise's AML systems and control failures.
It said breaches by Wise Nuqud included it failing to identify and verify the source of funds or wealth held by some customers it had identified as high risk before carrying out transactions on their behalf.
The regulator of Abu Dhabi's free zone financial centre said on Tuesday it had fined the local subsidiary of fintech firm Wise $360,000 for breaching anti-money laundering (AML) requirements.
Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA) "found that Wise did not establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations", it said in a statement.
Wise said in response to a Reuters query that it takes its responsibility to protect its customers and prevent money laundering "very seriously", and that neither the FSRA nor the company had identified instances of money laundering or other financial crimes.
The FSRA also said its review had not found instances of actual money laundering as a result of Wise's AML systems and control failures.
It said breaches by Wise Nuqud included it failing to identify and verify the source of funds or wealth held by some customers it had identified as high risk before carrying out transactions on their behalf.
Oil falls by over $3 on inflation woes, Iraq exports | Reuters
Oil falls by over $3 on inflation woes, Iraq exports | Reuters
Oil prices fell by more than $3 a barrel on Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.
Brent crude futures for October settlement fell $3.81, or 3.63%, to $101.28 a barrel by 1156 GMT, after hitting a session low of $100.90 a barrel.
The October contract expires on Wednesday and the more active November contract was at $100.01 a barrel, down 2.84%.
U.S. West Texas Intermediate crude was at $94.12 a barrel, down $2.89, or 2.98%.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more
"The economy will continue to remain slow with the Fed’s aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday," said Kunal Sawhney, chief executive officer, Kalkine Group.
Oil prices fell by more than $3 a barrel on Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.
Brent crude futures for October settlement fell $3.81, or 3.63%, to $101.28 a barrel by 1156 GMT, after hitting a session low of $100.90 a barrel.
The October contract expires on Wednesday and the more active November contract was at $100.01 a barrel, down 2.84%.
U.S. West Texas Intermediate crude was at $94.12 a barrel, down $2.89, or 2.98%.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more
"The economy will continue to remain slow with the Fed’s aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday," said Kunal Sawhney, chief executive officer, Kalkine Group.
Mideast Stocks: Gulf markets rebound after overnight jump in oil prices
Mideast Stocks: Gulf markets rebound after overnight jump in oil prices
Gulf stock markets inched higher on Tuesday, as an overnight jump in crude oil prices outweighed concerns over tightening global monetary policies.
Oil prices jumped more than 4% on Monday, extending last week's gains after Saudi Arabia raised the prospect of the Organization of the Petroleum Exporting Countries and allies cutting output when they meet on Sept. 5.
The move is designed to balance the market in response to a potential supply boost from Iran should it hammer out a nuclear deal with the West.
Gains in the Gulf markets were capped by rising prospects of a slower global economic growth after U.S. Federal Reserve and European Central Bank officials adopted a more hawkish stance to combat a runaway inflation.
Saudi Arabia's benchmark index traded 0.4% higher, led by financial and energy stocks. Oil giant Saudi Aramco rose 0.7% and Al Rajhi Bank added 0.4%.
Saudi Steel Pipes soared nearly 5% and was the top percentage gainer on the index after the manufacturer bagged a new order for oil and gas steel pipes.
The Dubai index climbed 0.5%, recouping most of the losses suffered on Monday when investors turned bearish on tighter monetary policy outlook.
The gains were led by real estate stocks. Emaar Properties , the emirate's largest developer, jumped 1.5%.
Shares in Abu Dhabi also rose after a more than 1% decline in the previous session, with heavyweight lender First Abu Dhabi Bank edging 0.4% higher.
The Qatar index gave up early gains, with energy and industrial stocks trading sideways.
Gulf stock markets inched higher on Tuesday, as an overnight jump in crude oil prices outweighed concerns over tightening global monetary policies.
Oil prices jumped more than 4% on Monday, extending last week's gains after Saudi Arabia raised the prospect of the Organization of the Petroleum Exporting Countries and allies cutting output when they meet on Sept. 5.
The move is designed to balance the market in response to a potential supply boost from Iran should it hammer out a nuclear deal with the West.
Gains in the Gulf markets were capped by rising prospects of a slower global economic growth after U.S. Federal Reserve and European Central Bank officials adopted a more hawkish stance to combat a runaway inflation.
Saudi Arabia's benchmark index traded 0.4% higher, led by financial and energy stocks. Oil giant Saudi Aramco rose 0.7% and Al Rajhi Bank added 0.4%.
Saudi Steel Pipes soared nearly 5% and was the top percentage gainer on the index after the manufacturer bagged a new order for oil and gas steel pipes.
The Dubai index climbed 0.5%, recouping most of the losses suffered on Monday when investors turned bearish on tighter monetary policy outlook.
The gains were led by real estate stocks. Emaar Properties , the emirate's largest developer, jumped 1.5%.
Shares in Abu Dhabi also rose after a more than 1% decline in the previous session, with heavyweight lender First Abu Dhabi Bank edging 0.4% higher.
The Qatar index gave up early gains, with energy and industrial stocks trading sideways.
Oil tumbles on inflation woes, Iraq exports | Reuters
Oil tumbles on inflation woes, Iraq exports | Reuters
Oil prices fell Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.
Brent crude futures for October settlement fell $2.45, or 2.33%, to $102.64 a barrel by 1022 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday and the more active November contract was at $101.12 a barrel, down 1.76%.
U.S. West Texas Intermediate crude was at $95.46 a barrel, down $1.55, or 1.6%, following a 4.2% rise in the previous session.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more
Oil prices fell Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.
Brent crude futures for October settlement fell $2.45, or 2.33%, to $102.64 a barrel by 1022 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday and the more active November contract was at $101.12 a barrel, down 1.76%.
U.S. West Texas Intermediate crude was at $95.46 a barrel, down $1.55, or 1.6%, following a 4.2% rise in the previous session.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more
#Dubai School Operator Taaleem Holdings Pushes Ahead With IPO - Bloomberg
Dubai School Operator Taaleem Holdings Pushes Ahead With IPO - Bloomberg
Dubai school operator Taaleem Holdings shareholders have approved the sale of shares in an initial public offering, joining a steady stream of Gulf firms tapping equity markets.
Shareholders on Monday approved the conversion of Taaleem from a private joint stock company into a public entity through the IPO, according to an advertisement in Gulf News. A book-building process will follow.
Even as share sales globally plummeted from their record levels of last year, the oil-rich Gulf has been in the midst of an unprecedented IPO boom as high oil prices and equity inflows buoyed local markets. However, concerns that the economy is slowing because of aggressive monetary policy tightening have weighed on both crude and regional indexes.
Taaleem, which offers British and American curricula as well as the International Baccalaureate, has picked EFG-Hermes and Emirates NBD Bank to lead the IPO, Bloomberg reported in April.
Shareholders on Monday approved the conversion of Taaleem from a private joint stock company into a public entity through the IPO, according to an advertisement in Gulf News. A book-building process will follow.
Even as share sales globally plummeted from their record levels of last year, the oil-rich Gulf has been in the midst of an unprecedented IPO boom as high oil prices and equity inflows buoyed local markets. However, concerns that the economy is slowing because of aggressive monetary policy tightening have weighed on both crude and regional indexes.
Taaleem, which offers British and American curricula as well as the International Baccalaureate, has picked EFG-Hermes and Emirates NBD Bank to lead the IPO, Bloomberg reported in April.
Oil edges down as inflation expected to impact fuel demand | Reuters
Oil edges down as inflation expected to impact fuel demand | Reuters
Oil prices dipped on Tuesday, paring some gains from the previous session, as the market feared that more aggressive interest rates hikes from central banks may lead to a global economic slowdown and soften fuel demand.
Brent crude futures for October settlement dropped 56 cents, or 0.5%, to $104.53 a barrel by 0620 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday and the more active November contract was at $102.57, down 0.4%.
U.S. West Texas Intermediate crude was at $96.86 a barrel, down 14 cents, or 0.1%, following a 4.2% rise in the previous session.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century, which could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes. read more
Oil prices dipped on Tuesday, paring some gains from the previous session, as the market feared that more aggressive interest rates hikes from central banks may lead to a global economic slowdown and soften fuel demand.
Brent crude futures for October settlement dropped 56 cents, or 0.5%, to $104.53 a barrel by 0620 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday and the more active November contract was at $102.57, down 0.4%.
U.S. West Texas Intermediate crude was at $96.86 a barrel, down 14 cents, or 0.1%, following a 4.2% rise in the previous session.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century, which could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes. read more