Russia Is Bigger Problem for Saudis Than Oil Short-Sellers, Sankey Says - Bloomberg
As Saudi Arabia blames US short-sellers for weighing down oil prices, its bigger concern should be competition from OPEC+ ally Russia, said veteran industry analyst Paul Sankey.
“I don’t know why they’re so obsessed with speculators,” the founder of Sankey Research LLC said during a Bloomberg Television interview. “The real issue is: Can the Saudis corral Russia?”
Saudi Energy Minister Prince Abdulaziz bin Salman on Tuesday issued a warning to short-sellers, prompting some investors to exit bearish bets and sending prices for the US oil benchmark surging. But “the real problem is the overall oil balance,” not speculators, Sankey said, adding that Saudi Arabia’s focus on traders is like “crying wolf.”
Instead, it’s the export of Russian crude to Asia that’s eroding Saudi Arabia’s long-term premium in the region, he said. “This is a much bigger deal than people appreciate between Russia and Saudi here in terms of market share and competition,” he said.
Wednesday, 24 May 2023
Mideast Stocks: Gulf stocks slide as impasse over US debt talks weigh; Egypt gains
Mideast Stocks: Gulf stocks slide as impasse over US debt talks weigh; Egypt gains
Most major Gulf stock markets ended lower on Wednesday, tracking weakness in global peers as an impasse over U.S. debt ceiling negotiations weighed on investor sentiment.
Saudi Arabia's benchmark stock index fell 0.4%, in its fourth consecutive session of declines, as the index was pulled down by losses in almost all sectors, led by financials and healthcare stocks. Al Rajhi Banking & Investment Corp, Saudi Arabia's second-largest lender by assets, fell over 1% and Mouwasat Medical Services Co plummeted 4.3%, its worst day in nearly three months.
Representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress, as the deadline to raise the government's $31.4 trillion borrowing limit or risk default ticked closer.
Traders in GCC stock markets reacted to the developments in global markets as debt ceiling issue in the U.S. remained a focal point for many, said Farah Mourad, senior market analyst at XTB MENA.
Dubai's main share index eased 0.1%, led by a decline in almost all sectors, with utilities and financials leading the losses. District cooling provider Emirates Central Cooling Systems Corp dropped 1.7% while Dubai Islamic Bank was down nearly 1%.
In Abu Dhabi, the benchmark index was down 0.3%, led by a decline of nearly 1% in First Abu Dhabi Bank, the United Arab Emirates' biggest lender, and a 2.6% dive in Abu Dhabi Islamic Bank.
The Qatari benchmark stock index declined 0.8%, extending losses for a third straight session, as financials were among the top losers. Most banks traded in negative territory, including Qatar Islamic Bank QPSC and Commercial Bank PSQC, which fell 1.3% and 1.6% respectively, while Qatar National Bank QPSC, the Gulf's biggest lender, was down nearly 0.8%.
Outside the Gulf, Egypt's blue-chip index climbed 1.8% as 26 of the 31 constituent stocks moved in positive territory, boosted by a 6.5% surge in country's lone cigarette maker Eastern Company and a 0.9% leap in Commercial International Bank, Egypt's biggest private bank.
Egyptian stock market rebounded to a certain extent after a series of losses as local investors flocked to the market, while international investors maintained their selling spree in the face of currency risks and increasing risk aversion, added Farah Mourad.
Most major Gulf stock markets ended lower on Wednesday, tracking weakness in global peers as an impasse over U.S. debt ceiling negotiations weighed on investor sentiment.
Saudi Arabia's benchmark stock index fell 0.4%, in its fourth consecutive session of declines, as the index was pulled down by losses in almost all sectors, led by financials and healthcare stocks. Al Rajhi Banking & Investment Corp, Saudi Arabia's second-largest lender by assets, fell over 1% and Mouwasat Medical Services Co plummeted 4.3%, its worst day in nearly three months.
Representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress, as the deadline to raise the government's $31.4 trillion borrowing limit or risk default ticked closer.
Traders in GCC stock markets reacted to the developments in global markets as debt ceiling issue in the U.S. remained a focal point for many, said Farah Mourad, senior market analyst at XTB MENA.
Dubai's main share index eased 0.1%, led by a decline in almost all sectors, with utilities and financials leading the losses. District cooling provider Emirates Central Cooling Systems Corp dropped 1.7% while Dubai Islamic Bank was down nearly 1%.
In Abu Dhabi, the benchmark index was down 0.3%, led by a decline of nearly 1% in First Abu Dhabi Bank, the United Arab Emirates' biggest lender, and a 2.6% dive in Abu Dhabi Islamic Bank.
The Qatari benchmark stock index declined 0.8%, extending losses for a third straight session, as financials were among the top losers. Most banks traded in negative territory, including Qatar Islamic Bank QPSC and Commercial Bank PSQC, which fell 1.3% and 1.6% respectively, while Qatar National Bank QPSC, the Gulf's biggest lender, was down nearly 0.8%.
Outside the Gulf, Egypt's blue-chip index climbed 1.8% as 26 of the 31 constituent stocks moved in positive territory, boosted by a 6.5% surge in country's lone cigarette maker Eastern Company and a 0.9% leap in Commercial International Bank, Egypt's biggest private bank.
Egyptian stock market rebounded to a certain extent after a series of losses as local investors flocked to the market, while international investors maintained their selling spree in the face of currency risks and increasing risk aversion, added Farah Mourad.
UK bureaucracy holding back renewable investments, #AbuDhabi power boss says | Financial Times
UK bureaucracy holding back renewable investments, Abu Dhabi power boss says | Financial Times
Slow grid connections and delays over the issuing of permits risk holding back the development of renewable energy in the UK and further afield, the boss of Abu Dhabi renewable energy group Masdar has warned.
Slow grid connections and delays over the issuing of permits risk holding back the development of renewable energy in the UK and further afield, the boss of Abu Dhabi renewable energy group Masdar has warned.
Mohamed Al Ramahi, chief executive of the state-backed company, said the group faced a struggle to “execute as fast as we want to” as it eyes new wind, solar and battery projects around the world.
His comments echo other developers, such as National Grid, that have warned about practical and bureaucratic hurdles getting in the way of new infrastructure such as electricity cables and wind turbines.
Masdar has set a target of growing its portfolio of clean energy projects from 20GW at the end of last year to 100GW by 2030 — potentially enough to power as many as 100mn homes.
Bank Dhofar makes offer to acquire 100% of competitor Ahli Bank
Bank Dhofar makes offer to acquire 100% of competitor Ahli Bank
Oman’s second-biggest lender by market value, Bank Dhofar, has withdrawn its merger offer for Ahli Bank and put a new deal on the table to acquire 100 per cent of its rival.
The lender is offering the same terms for the complete takeover of Ahli Bank that it laid out in its revised merger offer submitted last week, Bank Dhofar said in a statement to the Muscat Securities Exchange, where its shares are traded.
“Having considered its options, the board of directors of Dhofar bank … resolved to make an offer to acquire 100 per cent of issued share capital … and to therefore withdraw our merger offer,” the lender said.
On May 17, Bank Dhofar submitted a non-binding revised offer for its merger with Ahli Bank, just a day after Oman International Development and Investment Company announced its intention to bid for the lender.
Oman’s second-biggest lender by market value, Bank Dhofar, has withdrawn its merger offer for Ahli Bank and put a new deal on the table to acquire 100 per cent of its rival.
The lender is offering the same terms for the complete takeover of Ahli Bank that it laid out in its revised merger offer submitted last week, Bank Dhofar said in a statement to the Muscat Securities Exchange, where its shares are traded.
“Having considered its options, the board of directors of Dhofar bank … resolved to make an offer to acquire 100 per cent of issued share capital … and to therefore withdraw our merger offer,” the lender said.
On May 17, Bank Dhofar submitted a non-binding revised offer for its merger with Ahli Bank, just a day after Oman International Development and Investment Company announced its intention to bid for the lender.
Crude Oil Prices Rise for Third Day as Saudis Tell Short Sellers ‘Watch Out’ - Bloomberg
Crude Oil Prices Rise for Third Day as Saudis Tell Short Sellers ‘Watch Out’ - Bloomberg
The oil market also received bullish impetus from an American Petroleum Institute report showing US nationwide crude inventories declined by 6.8 million barrels last week. If confirmed by government figures later Wednesday, it would be the biggest drop since late March.
Oil is still down for the year as traders grapple with China’s lackluster post-Covid economic recovery, interest-rate hikes from the US Federal Reserve and the US debt conundrum. Russian exports have also remained robust, despite sanctions.
Oil rose for a third day after Saudi Arabia’s latest warning to short-sellers suggested OPEC+ could reduce output further to buoy prices.
West Texas Intermediate futures climbed toward $74 a barrel after adding almost 2% over the previous two days. Saudi Arabian Energy Minister Prince Abdulaziz bin Salman told speculators on Tuesday to “watch out,” just over a week before the Organization of Petroleum Countries and its allies meet to review their output policy for the second half of the year.
“Hard-hitting talk from the OPEC kingpin” is dominating the market, said Stephen Brennock, an analyst at PVM Oil Associates Ltd. “The producer group might have another surprise cut up its sleeve.”
That offset a lack of progress in resolving an impasse over the US debt ceiling, which is weighing on broader financial markets and has influenced oil futures in recent days. House Speaker Kevin McCarthy said late Tuesday the two parties had yet to reach a deal to avert a first-ever default.
West Texas Intermediate futures climbed toward $74 a barrel after adding almost 2% over the previous two days. Saudi Arabian Energy Minister Prince Abdulaziz bin Salman told speculators on Tuesday to “watch out,” just over a week before the Organization of Petroleum Countries and its allies meet to review their output policy for the second half of the year.
“Hard-hitting talk from the OPEC kingpin” is dominating the market, said Stephen Brennock, an analyst at PVM Oil Associates Ltd. “The producer group might have another surprise cut up its sleeve.”
That offset a lack of progress in resolving an impasse over the US debt ceiling, which is weighing on broader financial markets and has influenced oil futures in recent days. House Speaker Kevin McCarthy said late Tuesday the two parties had yet to reach a deal to avert a first-ever default.
The oil market also received bullish impetus from an American Petroleum Institute report showing US nationwide crude inventories declined by 6.8 million barrels last week. If confirmed by government figures later Wednesday, it would be the biggest drop since late March.
Oil is still down for the year as traders grapple with China’s lackluster post-Covid economic recovery, interest-rate hikes from the US Federal Reserve and the US debt conundrum. Russian exports have also remained robust, despite sanctions.
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Gulf markets track Asian stocks lower amid US debt limit impasse | Reuters
Gulf markets track Asian stocks lower amid US debt limit impasse | Reuters
Most major Gulf stock markets opened lower on Wednesday, extending losses from the previous session, and tracking weakness in Asian shares as a deadlock in U.S. debt ceiling negotiations weighed on investor sentiment.
Representatives for President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress as the deadline to raise the government's $31.4 trillion borrowing limit or risk default ticked closer.
Saudi Arabia's benchmark stock index (.TASI) fell 0.1%, in its fourth consecutive negative day, as the index was pulled down by healthcare, financial and energy stocks.
Sulaiman Al-Habib Medical Services Group (4013.SE) and Saudi National Bank SJSC (1180.SE), the kingdom's largest lender by assets, dropped 0.6% and 1.1%, respectively, while state oil giant and index heavyweight Saudi Aramco (2222.SE) was down 0.3%.
Among other individual stocks, retailer Fawaz Abdulaziz Alhokair Company SJSC (4240.SE) fell nearly 6% after reporting a quarterly loss on Tuesday.
Dubai's main share index (.DFMGI) was down 0.2%, pressured by a decline in almost all sectors, with real estate and financials leading the losses. Blue-chip developer Emaar Properties PJSC (EMAR.DU) lost 0.9%, while Dubai Islamic Bank PJSC (DISB.DU) was down 0.6%.
The Qatari benchmark stock index (.QSI) eased 0.4%, extending losses for a third straight session, with most of the constituent stocks trading in negative territory. Qatar Islamic Bank QPSC (QISB.QA) dropped 0.5%% and heavyweight Commercial Bank PSQC (COMB.QA) lost 0.6%.
In Abu Dhabi, the benchmark index (.FTFADGI) traded flat.
Most major Gulf stock markets opened lower on Wednesday, extending losses from the previous session, and tracking weakness in Asian shares as a deadlock in U.S. debt ceiling negotiations weighed on investor sentiment.
Representatives for President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress as the deadline to raise the government's $31.4 trillion borrowing limit or risk default ticked closer.
Saudi Arabia's benchmark stock index (.TASI) fell 0.1%, in its fourth consecutive negative day, as the index was pulled down by healthcare, financial and energy stocks.
Sulaiman Al-Habib Medical Services Group (4013.SE) and Saudi National Bank SJSC (1180.SE), the kingdom's largest lender by assets, dropped 0.6% and 1.1%, respectively, while state oil giant and index heavyweight Saudi Aramco (2222.SE) was down 0.3%.
Among other individual stocks, retailer Fawaz Abdulaziz Alhokair Company SJSC (4240.SE) fell nearly 6% after reporting a quarterly loss on Tuesday.
Dubai's main share index (.DFMGI) was down 0.2%, pressured by a decline in almost all sectors, with real estate and financials leading the losses. Blue-chip developer Emaar Properties PJSC (EMAR.DU) lost 0.9%, while Dubai Islamic Bank PJSC (DISB.DU) was down 0.6%.
The Qatari benchmark stock index (.QSI) eased 0.4%, extending losses for a third straight session, with most of the constituent stocks trading in negative territory. Qatar Islamic Bank QPSC (QISB.QA) dropped 0.5%% and heavyweight Commercial Bank PSQC (COMB.QA) lost 0.6%.
In Abu Dhabi, the benchmark index (.FTFADGI) traded flat.