OPEC+ likely to stick to its guns despite price slump, delegates say | Reuters
OPEC+ is likely to stick to its deal on output cuts of 2 million barrels per day (bpd) until the end of the year, even after a banking crisis sent crude prices plunging, three delegates from the producer group told Reuters.
Oil prices hit 15-month lows on Monday in response to the banking crisis that followed the collapse of two U.S. lenders and resulted in Credit Suisse being rescued by Switzerland's biggest bank UBS (UBSG.S).
Brent crude was trading around $75 a barrel on Wednesday morning.
Last October OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, agreed steep output cuts of 2 million bpd from November until the end of 2023 despite major consumers calling for increases to production.
That decision helped to push Brent close to $100 a barrel, but prices have come under pressure since then as rising interest rates to combat high inflation threaten to stymie oil demand growth.
Wednesday 22 March 2023
Mideast Stocks: Most Gulf bourses end higher ahead of Fed rate decision
Mideast Stocks: Most Gulf bourses end higher ahead of Fed rate decision
Most Gulf stock markets ended higher on Wednesday as fears of a banking crisis receded and hopes of a more modest interest rate hike by the U.S. Federal Reserve lifted investor sentiment. The markets now await the Fed's monetary policy decision, due later in the day, with most analysts expecting the Fed to raise the rate by 25 bps to tame inflation, but Goldman Sachs said a pause would be "warranted".
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
The Qatari Stock index rose 1%, extending its previous session gains with all sectors in the positive territory, led by industry and finance. The index heavyweight Islamic banks Qatar Islamic Bank and Qatar International Islamic Bank added 0.7% and 1.5% respectively, while conglomerate Industries Qatar climbed 5.2%.
In Abu Dhabi, the index rose 0.6%, snapping two sessions decline, supported by a 5.4% jump in ADNOC Gas and a 2.8% rise in Alpha Dhabi Holding. The United Arab Emirates' biggest lender, First Abu Dhabi Bank and third-largest bank Abu Dhabi Commercial Bank climbed 1.6% and 2.5% respectively.
Dubai's benchmark index extended its previous sessions rally and ended 0.4% higher. The index was lifted by gains in most sectors with Emaar Properties rising 1.6% and cooling solutions provider Emirates Central Cooling adding 2.5%. The emirate's largest bank Emirates NBD gained 0.8%.
Saudi Arabia's benchmark index dropped 0.1%, ending three sessions gains. The index dragged down by losses in materials, health and finance sectors with Dr Sulaiman Al-Habib Medical shedding 1.9% and Saudi Basic Industries losing 1.2%. Al Rajhi Bank , the world's largest Islamic bank by assets, slid 2%, the steepest intraday fall in a month as it was trading ex-dividend. Shares of Mouwasat Medical Services shot up 10%, the highest intraday rise since March 2020. The healthcare service provider reported on Wednesday a rise in full-year net profit, beating analysts' expectations.
Outside the Gulf, Egypt's blue-chip index fell 0.5%, snapping two sessions gains with almost all sectors in the red with Fawry Banking dropping 2.8% and Telecom Egypt losing 4.2%%. Meanwhile, Egypt has decided to suspend the sale of a stake in state-controlled telecoms services provider because of market conditions.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
The Qatari Stock index rose 1%, extending its previous session gains with all sectors in the positive territory, led by industry and finance. The index heavyweight Islamic banks Qatar Islamic Bank and Qatar International Islamic Bank added 0.7% and 1.5% respectively, while conglomerate Industries Qatar climbed 5.2%.
In Abu Dhabi, the index rose 0.6%, snapping two sessions decline, supported by a 5.4% jump in ADNOC Gas and a 2.8% rise in Alpha Dhabi Holding. The United Arab Emirates' biggest lender, First Abu Dhabi Bank and third-largest bank Abu Dhabi Commercial Bank climbed 1.6% and 2.5% respectively.
Dubai's benchmark index extended its previous sessions rally and ended 0.4% higher. The index was lifted by gains in most sectors with Emaar Properties rising 1.6% and cooling solutions provider Emirates Central Cooling adding 2.5%. The emirate's largest bank Emirates NBD gained 0.8%.
Saudi Arabia's benchmark index dropped 0.1%, ending three sessions gains. The index dragged down by losses in materials, health and finance sectors with Dr Sulaiman Al-Habib Medical shedding 1.9% and Saudi Basic Industries losing 1.2%. Al Rajhi Bank , the world's largest Islamic bank by assets, slid 2%, the steepest intraday fall in a month as it was trading ex-dividend. Shares of Mouwasat Medical Services shot up 10%, the highest intraday rise since March 2020. The healthcare service provider reported on Wednesday a rise in full-year net profit, beating analysts' expectations.
Outside the Gulf, Egypt's blue-chip index fell 0.5%, snapping two sessions gains with almost all sectors in the red with Fawry Banking dropping 2.8% and Telecom Egypt losing 4.2%%. Meanwhile, Egypt has decided to suspend the sale of a stake in state-controlled telecoms services provider because of market conditions.
Moody’s affirms #AbuDhabi’s Aa2 rating, maintains stable outlook
Moody’s affirms Abu Dhabi’s Aa2 rating, maintains stable outlook
Moody’s Investors Service (Moody’s) has affirmed the Abu Dhabi government’s long-term local and foreign currency issuer ratings at Aa2 and kept the outlook stable.
The ratings agency also affirmed the foreign currency senior unsecured debt rating at Aa2 and the short-term local and foreign currency issuer ratings at P-1.
The affirmation is supported by Moody’s expectation that Abu Dhabi’s balance sheet will remain very strong and its net creditor position very large for the foreseeable future, which provides significant policy buffers and shock absorption capacity.
The emirate’s economic and fiscal reliance on hydrocarbons exposes it to oil price cycles and a potential acceleration in the global carbon transition.
However, Abu Dhabi’s hydrocarbon endowment and low cost of production, combined with its balance sheet size and effective institutions, will help mitigate these credit challenges.
Moreover, the stable outlook reflects the expectation that oil prices will remain supportive and the continued improvement in Abu Dhabi’s net creditor position is resilient to “somewhat” lower oil prices, even with ongoing oil production cuts dampening real GDP growth.
Moody’s Investors Service (Moody’s) has affirmed the Abu Dhabi government’s long-term local and foreign currency issuer ratings at Aa2 and kept the outlook stable.
The ratings agency also affirmed the foreign currency senior unsecured debt rating at Aa2 and the short-term local and foreign currency issuer ratings at P-1.
The affirmation is supported by Moody’s expectation that Abu Dhabi’s balance sheet will remain very strong and its net creditor position very large for the foreseeable future, which provides significant policy buffers and shock absorption capacity.
The emirate’s economic and fiscal reliance on hydrocarbons exposes it to oil price cycles and a potential acceleration in the global carbon transition.
However, Abu Dhabi’s hydrocarbon endowment and low cost of production, combined with its balance sheet size and effective institutions, will help mitigate these credit challenges.
Moreover, the stable outlook reflects the expectation that oil prices will remain supportive and the continued improvement in Abu Dhabi’s net creditor position is resilient to “somewhat” lower oil prices, even with ongoing oil production cuts dampening real GDP growth.
Mideast Stocks: Most Gulf markets rise in early trade; Fed meeting in focus
Mideast Stocks: Most Gulf markets rise in early trade; Fed meeting in focus
Most Stock markets in the Gulf rose in early trade on Wednesday, mirroring gains in global peers ahead of the U.S. Federal Reserve's interest rate decision, as worries on a banking crisis eased.
The markets are awaiting the outcome of the central bank meeting on Wednesday, with most analysts expecting the Fed to raise rate by 25 bps and continue with its fight against inflation.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
The Qatari Stock index rose 0.7%, with gains in most sectors, led by finance and industry.
The region's largest bank Qatar National Bank and Qatar International Islamic Bank gained 0.6% and 1.5% respectively, while conglomerate Industries Qatar climbed 2.9%.
Saudi Arabia's benchmark stock index rose 0.4%, lifted by gains across all sectors led by finance, materials and energy, with real estate developer Retal Urban adding 0.8% and oil giant Saudi Aramco rising 0.6%.
Shares of Gulf Insurance Group slipped 6.1%, the sharpest intraday fall since May 16, after the insurer reported a 44% decline in a full-year pre-Zakat net profit.
In Abu Dhabi, the benchmark stock index was up 0.2%, aided by a 1.7% gain in Alpha Dhabi Holding and 0.9% rise in First Abu Dhabi Bank, the largest lender in the United Arab Emirates.
Dubai's benchmark stock index fell 0.3% in early trade, weighed down by losses in finance and communication sectors, with Emaar Properties dropping 0.5% and Dubai Commercial Bank losing 2.1%.
Telecom services provider Emirates Integrated Telecommunications lost 3.1%, the steepest intraday decline since May 12 as it was trading ex-dividend.
Most Stock markets in the Gulf rose in early trade on Wednesday, mirroring gains in global peers ahead of the U.S. Federal Reserve's interest rate decision, as worries on a banking crisis eased.
The markets are awaiting the outcome of the central bank meeting on Wednesday, with most analysts expecting the Fed to raise rate by 25 bps and continue with its fight against inflation.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
The Qatari Stock index rose 0.7%, with gains in most sectors, led by finance and industry.
The region's largest bank Qatar National Bank and Qatar International Islamic Bank gained 0.6% and 1.5% respectively, while conglomerate Industries Qatar climbed 2.9%.
Saudi Arabia's benchmark stock index rose 0.4%, lifted by gains across all sectors led by finance, materials and energy, with real estate developer Retal Urban adding 0.8% and oil giant Saudi Aramco rising 0.6%.
Shares of Gulf Insurance Group slipped 6.1%, the sharpest intraday fall since May 16, after the insurer reported a 44% decline in a full-year pre-Zakat net profit.
In Abu Dhabi, the benchmark stock index was up 0.2%, aided by a 1.7% gain in Alpha Dhabi Holding and 0.9% rise in First Abu Dhabi Bank, the largest lender in the United Arab Emirates.
Dubai's benchmark stock index fell 0.3% in early trade, weighed down by losses in finance and communication sectors, with Emaar Properties dropping 0.5% and Dubai Commercial Bank losing 2.1%.
Telecom services provider Emirates Integrated Telecommunications lost 3.1%, the steepest intraday decline since May 12 as it was trading ex-dividend.
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