Oil dives 4% as US data shows weak demand for gasoline | Reuters
Oil prices tumbled by more than 4% on Wednesday following reports that Russia may lift its diesel ban in coming days and U.S. government data that indicated weak demand for gasoline.
Brent crude oil futures were down $3.88, or 4.3%, to $87.04 a barrel at 12:52 p.m. EDT (1752 GMT). U.S. West Texas Intermediate crude (WTI) fell $3.87, or 4.3%, to $85.36.
At their session low, both benchmarks were down by more than $4, and heating oil and gasoline futures fell by 5% .
U.S. nationwide crude stocks fell by 2.2 million barrels to 414.1 million barrels in the week to Sept. 29, the U.S. Energy Information Administration (EIA) reported, but stocks at Cushing, Oklahoma, the WTI delivery hub, rose for the first time in eight weeks.
Gasoline stocks rose by 6.5 million barrels, far exceeding expectations of a 200,000-barrel rise. Finished motor gasoline supplied fell to about 8 million bpd, its lowest since the start of this year.
Wednesday 4 October 2023
Mideast Stocks: Most Gulf markets track oil, global shares lower
Mideast Stocks: Most Gulf markets track oil, global shares lower
Most stock markets in the Gulf ended lower on Wednesday tracking oil prices and global shares lower as investors bet that interest rates will remain persistently high, boding ill for the world economy. A growing sense that interest rates in major economies will stay higher for longer to contain inflation, ever resilient U.S. economic data and a sharp unwinding of traders' positions for a bond rally have hit hard.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Federal Reserve's decision as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index fell 0.2%, hit by a 3.3% drop in blue-chip developer Emaar Properties and a 2.1% decrease in Emirates Central Cooling Systems Corp.
The Dubai bourse retreated, recording some price corrections after hitting a new peak for the year, said Daniel Takieddine, CEO MENA at BDSwiss. "The market could remain exposed to the downside to a certain extent as traders consider the concerns about the direction of monetary policy in the United States." In Abu Dhabi, the index eased 0.2%.
Saudi Arabia's benchmark index declined 1%, as most of the stocks on the index were in negative territory including oil giant Saudi Aramco, which was down 0.7%.
Oil, which fuels the Gulf economy, fell as pledges by Saudi Arabia and Russia to continue crude output cuts to the end of 2023 were offset by demand fears stemming from macroeconomic headwinds. The OPEC+ Joint Ministerial Monitoring Committee (JMMC) online meeting on Wednesday kept the group's output policy unchanged, two sources said while the meeting was underway. According to Takieddine, the Saudi stock market could extend losses if oil prices continue to retreat.
The Qatari benchmark finished 0.8% lower, with almost all the stocks on the index closing in negative territory. Outside the Gulf, Egypt's blue-chip index gained 0.8%, snapping four sessions of losses.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Federal Reserve's decision as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index fell 0.2%, hit by a 3.3% drop in blue-chip developer Emaar Properties and a 2.1% decrease in Emirates Central Cooling Systems Corp.
The Dubai bourse retreated, recording some price corrections after hitting a new peak for the year, said Daniel Takieddine, CEO MENA at BDSwiss. "The market could remain exposed to the downside to a certain extent as traders consider the concerns about the direction of monetary policy in the United States." In Abu Dhabi, the index eased 0.2%.
Saudi Arabia's benchmark index declined 1%, as most of the stocks on the index were in negative territory including oil giant Saudi Aramco, which was down 0.7%.
Oil, which fuels the Gulf economy, fell as pledges by Saudi Arabia and Russia to continue crude output cuts to the end of 2023 were offset by demand fears stemming from macroeconomic headwinds. The OPEC+ Joint Ministerial Monitoring Committee (JMMC) online meeting on Wednesday kept the group's output policy unchanged, two sources said while the meeting was underway. According to Takieddine, the Saudi stock market could extend losses if oil prices continue to retreat.
The Qatari benchmark finished 0.8% lower, with almost all the stocks on the index closing in negative territory. Outside the Gulf, Egypt's blue-chip index gained 0.8%, snapping four sessions of losses.
#Saudi Airlines Considers Bond Sale to Fund Expansion Plans - Bloomberg
Saudi Airlines Considers Bond Sale to Fund Expansion Plans - Bloomberg
Saudi Arabia’s biggest airline is weighing options including a debut bond sale to fund new aircraft orders, as it prepares to almost double its fleet by 2030.
“We will go out to the market, we are evaluating the options,” Ibrahim Alomar, director general of Saudi Arabian Airlines Corp., said in an interview. The potential size of the funding is still being considered, he said.
Saudia, as the state-owned airline is known, is looking to boost its fleet from 177 aircraft to 317 as part of its plans to serve 30 million religious tourists visiting Mecca by 2030, and the government’s wider strategy to attract 70 million international visitors. It could announce new aircraft orders next year as it looks to hit that target, Alomar said.
The airline already has financing in place to cover its needs until mid-2024, he said.
Saudia partnered with Riyadh Air, a new airline being launched by the kingdom’s sovereign wealth fund, in March to buy as many as 121 Boeing 787 Dreamliners between the two carriers. The airlines will operate independently but look to collaborate in areas like maintenance and other services, Alomar said.
Saudi Arabia, which until 2019 was largely closed off to foreign holidaymakers, is spending huge sums building hotels and resorts along the Red Sea coast. That push is part of Crown Prince Mohammed bin Salman’s ambition to diversify the oil-dependent economy. The de facto ruler wants tourism to account for 10% of gross domestic product by 2030, and also to transform the country into a logistics hub.
Saudi Arabia’s biggest airline is weighing options including a debut bond sale to fund new aircraft orders, as it prepares to almost double its fleet by 2030.
“We will go out to the market, we are evaluating the options,” Ibrahim Alomar, director general of Saudi Arabian Airlines Corp., said in an interview. The potential size of the funding is still being considered, he said.
Saudia, as the state-owned airline is known, is looking to boost its fleet from 177 aircraft to 317 as part of its plans to serve 30 million religious tourists visiting Mecca by 2030, and the government’s wider strategy to attract 70 million international visitors. It could announce new aircraft orders next year as it looks to hit that target, Alomar said.
The airline already has financing in place to cover its needs until mid-2024, he said.
Saudia partnered with Riyadh Air, a new airline being launched by the kingdom’s sovereign wealth fund, in March to buy as many as 121 Boeing 787 Dreamliners between the two carriers. The airlines will operate independently but look to collaborate in areas like maintenance and other services, Alomar said.
Saudi Arabia, which until 2019 was largely closed off to foreign holidaymakers, is spending huge sums building hotels and resorts along the Red Sea coast. That push is part of Crown Prince Mohammed bin Salman’s ambition to diversify the oil-dependent economy. The de facto ruler wants tourism to account for 10% of gross domestic product by 2030, and also to transform the country into a logistics hub.
Watch #Dubai Party Hotel Operator FIVE Plans IPO in City in 2025 - Bloomberg video
Watch Dubai Party Hotel Operator FIVE Plans IPO in City in 2025 - Bloomberg
FIVE Holdings Ltd., which operates luxury hotels in Dubai and Switzerland synonymous with partying, is considering an initial public offering in about two years. The Chairman and Founder Kabir Mulchandani speaks with Bloomberg's Yousef Gamal El-Din on "Bloomberg Daybreak Middle East and Africa." (Source: Bloomberg)
#Dubai luxury home sales hit $1.6 bln in Q3, property consultancy says | Reuters
Dubai luxury home sales hit $1.6 bln in Q3, property consultancy says | Reuters
Sales of homes worth $10 million or more in Dubai hit about $1.6 billion in the third quarter, according to an industry report published on Wednesday, up from $1.13 billion in the same period a year ago.
The total value of sales stood at almost $5 billion between January and September this year, property consultancy Knight Frank said in a statement.
Dubai is racing to attract people and capital to drive long-term growth as part of an economic model focused on property investment, tourism and inflows of foreign capital.
Property is booming - helped by Russian demand amid THE war in Ukraine and laxer residency rules - and analysts this time see more guard rails in place against a repeat of the problems that subdued Dubai after the 2008 global credit crunch.
"Demand for luxury homes in Dubai remains resilient and supply continues to stubbornly lag demand," said Faisal Durrani, partner and head of research for Middle East and Africa at Knight Frank.
The total number of sales of homes worth more than $10 million in the nine month period to September hit a record high of 277 in Dubai, building on its status as the top market for such deals in the first half, ahead of New York, Hong Kong and London, Knight Frank said.
Activity is dominated by cash buyers, the consultancy said.
Sales of homes worth $10 million or more in Dubai hit about $1.6 billion in the third quarter, according to an industry report published on Wednesday, up from $1.13 billion in the same period a year ago.
The total value of sales stood at almost $5 billion between January and September this year, property consultancy Knight Frank said in a statement.
Dubai is racing to attract people and capital to drive long-term growth as part of an economic model focused on property investment, tourism and inflows of foreign capital.
Property is booming - helped by Russian demand amid THE war in Ukraine and laxer residency rules - and analysts this time see more guard rails in place against a repeat of the problems that subdued Dubai after the 2008 global credit crunch.
"Demand for luxury homes in Dubai remains resilient and supply continues to stubbornly lag demand," said Faisal Durrani, partner and head of research for Middle East and Africa at Knight Frank.
The total number of sales of homes worth more than $10 million in the nine month period to September hit a record high of 277 in Dubai, building on its status as the top market for such deals in the first half, ahead of New York, Hong Kong and London, Knight Frank said.
Activity is dominated by cash buyers, the consultancy said.
#UAE's non-oil business growth picks up in Sept on strong demand-PMI | Reuters
UAE's non-oil business growth picks up in Sept on strong demand-PMI | Reuters
Non-oil business activity in the United Arab Emirates expanded at a faster rate in September than the previous month, a survey showed on Wednesday, as new orders came in at the fastest rate in four years.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index jumped to 56.7 in September from 55.0 in August, far above the 50.0 mark signalling growth in activity.
The key driver of the headline index was a strong rebound in new business, with the new orders subindex rising to 64.7 from 57.6 the previous month, with the rate of expansion the fastest since June 2019, the survey showed.
David Owen, senior economist at S&P Global Market Intelligence said that the upturn in new work was supported by firms winning new clients both domestically and in export markets.
The output subindex indicated continued strong expansion in activity, rising to 62.8 in September from 61.9 the previous month, on increased new orders, ongoing projects and new marketing, the survey said.
Business confidence for the year ahead improved in September, linked to continued strong demand and new clients, the survey showed.
Non-oil business activity in the United Arab Emirates expanded at a faster rate in September than the previous month, a survey showed on Wednesday, as new orders came in at the fastest rate in four years.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index jumped to 56.7 in September from 55.0 in August, far above the 50.0 mark signalling growth in activity.
The key driver of the headline index was a strong rebound in new business, with the new orders subindex rising to 64.7 from 57.6 the previous month, with the rate of expansion the fastest since June 2019, the survey showed.
David Owen, senior economist at S&P Global Market Intelligence said that the upturn in new work was supported by firms winning new clients both domestically and in export markets.
The output subindex indicated continued strong expansion in activity, rising to 62.8 in September from 61.9 the previous month, on increased new orders, ongoing projects and new marketing, the survey said.
Business confidence for the year ahead improved in September, linked to continued strong demand and new clients, the survey showed.
Gulf shares drop in early trade on weaker oil prices | Reuters
Gulf shares drop in early trade on weaker oil prices | Reuters
Most stock markets in the Gulf were down in early trade on Wednesday, following declines in oil prices amid worries that the U.S. Federal Reserve will keep interest rates persistently high.
Oil prices - a key catalyst for the Gulf's financial markets - dropped ahead of a panel meeting of OPEC+ ministers, which is expected to keep output policy unchanged.
Brent crude was down 0.6% at $92.49 a barrel at 0740 GMT.
Dubai's benchmark stock index (.DFMGI) declined 0.5% in early trade, with all sectors in the red.
Emaar Properties (EMAR.DU) dropped 1.6% and Emirates Central Cooling Systems (EMPOWER.DU) slid 1.1%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.1%, weighed down by a 3.2% slump in Abu Dhabi National Oil Company for Distribution and a 1.2% decline in ADNOC Drilling (ADNOCDRILL.AD).
The Qatari benchmark index (.QSI) dropped 0.6%, with all sectors trading in the negative territory.
Industries Qatar (IQCD.QA) slumped 1.4% and index heavyweights Qatar Islamic Bank (QISB.QA) and Qatar International Islamic Bank (QIIB.QA) lost 0.5% and 0.8% respectively.
Saudi Arabia's benchmark stock index (.TASI) was down 0.6%, dragged down by losses in almost all sectors, with Lumi Rental (4262.SE) falling 2% and Arabian Internet and Communications Services (7202.SE) dropping 2.1%.
Among the losers, oil major Saudi Aramco (2222.SE) and the kingdom's biggest lender by assets Saudi National Bank (1180.SE) slipped 0.4% and 0.8% respectively.
U.S. job openings unexpectedly increased in August, pointing to a still-tight labor market that could compel the Federal Reserve to raise interest rates next month.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Most stock markets in the Gulf were down in early trade on Wednesday, following declines in oil prices amid worries that the U.S. Federal Reserve will keep interest rates persistently high.
Oil prices - a key catalyst for the Gulf's financial markets - dropped ahead of a panel meeting of OPEC+ ministers, which is expected to keep output policy unchanged.
Brent crude was down 0.6% at $92.49 a barrel at 0740 GMT.
Dubai's benchmark stock index (.DFMGI) declined 0.5% in early trade, with all sectors in the red.
Emaar Properties (EMAR.DU) dropped 1.6% and Emirates Central Cooling Systems (EMPOWER.DU) slid 1.1%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.1%, weighed down by a 3.2% slump in Abu Dhabi National Oil Company for Distribution and a 1.2% decline in ADNOC Drilling (ADNOCDRILL.AD).
The Qatari benchmark index (.QSI) dropped 0.6%, with all sectors trading in the negative territory.
Industries Qatar (IQCD.QA) slumped 1.4% and index heavyweights Qatar Islamic Bank (QISB.QA) and Qatar International Islamic Bank (QIIB.QA) lost 0.5% and 0.8% respectively.
Saudi Arabia's benchmark stock index (.TASI) was down 0.6%, dragged down by losses in almost all sectors, with Lumi Rental (4262.SE) falling 2% and Arabian Internet and Communications Services (7202.SE) dropping 2.1%.
Among the losers, oil major Saudi Aramco (2222.SE) and the kingdom's biggest lender by assets Saudi National Bank (1180.SE) slipped 0.4% and 0.8% respectively.
U.S. job openings unexpectedly increased in August, pointing to a still-tight labor market that could compel the Federal Reserve to raise interest rates next month.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.