Oil jumps 4% after week-long selloff, but falls for a fourth week | Reuters
Oil prices jumped more than 4% on Friday, rebounding from a four-month low hit in the previous session, as investors who had taken short positions took profits and while U.S. sanctions on some Russian oil shippers lent support.
Brent crude futures settled up $3.19, or about 4.1%, at $80.61 a barrel, while West Texas Intermediate crude (WTI) rose $2.99, or 4.1%, at $75.89.
"You're getting a natural profit-taking rebound and short covering, to a degree," said John Kilduff, partner at Again Capital LLC in New York.
Some of the losses were offset after the U.S. imposed sanctions this week on maritime companies and vessels for shipping Russian oil sold above the Group of Seven's price cap.
Still, both benchmarks ended the week more than 1% lower, their fourth straight weekly decline, mostly weighed down by a rise in U.S. crude inventories and sustained record-high production.
Friday 17 November 2023
Economics and nature square off in #Dubai Airshow jet engine rift | Reuters
Economics and nature square off in Dubai Airshow jet engine rift | Reuters
A debate over engine performance has exposed a dilemma facing aerospace firms at this week's Dubai Airshow - the hottest part of the jet market is also the hottest part of the world.
Airlines want to save on fuel and have the lowest possible maintenance costs. But those forces are pulling against each other in sandy or dusty environments like the Gulf and India.
"Therein lies the problem for Rolls-Royce (RR.L) and Airbus (AIR.PA), because this is the region that is buying these airplanes and will buy them in big numbers if the engine issue is resolved," Emirates Airline President Tim Clark told reporters this week.
The head of the world's largest international carrier was speaking in the midst of negotiations to buy dozens of Airbus A350-1000 jets powered by Rolls-Royce's XWB-97 engine, which have foundered for now over maintenance and pricing issues.
Emirates and Rolls papered over differences with a last-minute deal for a smaller quantity of the shorter A350-900, whose engine maintenance is seen as easier to predict.
A debate over engine performance has exposed a dilemma facing aerospace firms at this week's Dubai Airshow - the hottest part of the jet market is also the hottest part of the world.
Airlines want to save on fuel and have the lowest possible maintenance costs. But those forces are pulling against each other in sandy or dusty environments like the Gulf and India.
"Therein lies the problem for Rolls-Royce (RR.L) and Airbus (AIR.PA), because this is the region that is buying these airplanes and will buy them in big numbers if the engine issue is resolved," Emirates Airline President Tim Clark told reporters this week.
The head of the world's largest international carrier was speaking in the midst of negotiations to buy dozens of Airbus A350-1000 jets powered by Rolls-Royce's XWB-97 engine, which have foundered for now over maintenance and pricing issues.
Emirates and Rolls papered over differences with a last-minute deal for a smaller quantity of the shorter A350-900, whose engine maintenance is seen as easier to predict.
#Dubai up on expectations of end to rate hikes, #AbuDhabi slips | Reuters
Dubai up on expectations of end to rate hikes, Abu Dhabi slips | Reuters
The Dubai stock market index closed higher on Friday as soft U.S. retail data strengthened expectations of an end to U.S. Federal Reserve rate hikes, while Abu Dhabi dipped.
U.S. retail sales slipped by less than expected in October, after months of strong gains, pointing to slowing demand.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.
Dubai's main index (.DFMGI) inched 0.3% higher, supported by gains in utility stocks with state-run Dubai Electricity and Water Authority (DEWAA.DU) up 2%, while Emirates Central Cooling System Corporation (EMPOWER.DU) rose 1.7%.
"(The) Dubai market could see improving conditions thanks to strong local fundamentals as well as expectations of a softer monetary policy in the U.S.," Khaldoun Hilal, chief executive of KAMA Capital, said.
Abu Dhabi's benchmark index (.FTFADGI) slipped 0.3%, snapping two session's gains, led by losses in investment firms.
Conglomerate International Holding Company (IHC.AD) eased 0.5% and IHC-owned investment firm Alpha Dhabi Holding (ALPHADHABI.AD) lost 0.8%.
Investcorp Capital (ICAP.AD) shares closed flat after falling as much as 4.3% on their first day of trading on the Abu Dhabi Securities Exchange.
The investment unit of Investcorp Holding offered 720 million shares at 2.30 dirhams each in an initial public offering which raised 1.66 billion dirhams ($451 million).
The Dubai stock market index closed higher on Friday as soft U.S. retail data strengthened expectations of an end to U.S. Federal Reserve rate hikes, while Abu Dhabi dipped.
U.S. retail sales slipped by less than expected in October, after months of strong gains, pointing to slowing demand.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.
Dubai's main index (.DFMGI) inched 0.3% higher, supported by gains in utility stocks with state-run Dubai Electricity and Water Authority (DEWAA.DU) up 2%, while Emirates Central Cooling System Corporation (EMPOWER.DU) rose 1.7%.
"(The) Dubai market could see improving conditions thanks to strong local fundamentals as well as expectations of a softer monetary policy in the U.S.," Khaldoun Hilal, chief executive of KAMA Capital, said.
Abu Dhabi's benchmark index (.FTFADGI) slipped 0.3%, snapping two session's gains, led by losses in investment firms.
Conglomerate International Holding Company (IHC.AD) eased 0.5% and IHC-owned investment firm Alpha Dhabi Holding (ALPHADHABI.AD) lost 0.8%.
Investcorp Capital (ICAP.AD) shares closed flat after falling as much as 4.3% on their first day of trading on the Abu Dhabi Securities Exchange.
The investment unit of Investcorp Holding offered 720 million shares at 2.30 dirhams each in an initial public offering which raised 1.66 billion dirhams ($451 million).
Investcorp Capital Has Muted Debut After $451 Million Abu Dhabi IPO - Bloomberg
Investcorp Capital Has Muted Debut After $451 Million Abu Dhabi IPO - Bloomberg
Investcorp Capital Plc, an investment vehicle backed by the Middle East’s biggest alternative asset manager, dropped on its first day of trading after its $451 million initial public offering in a rare poor debut in the region.
Shares in the company opened flat at the offering price of 2.30 dirhams in Abu Dhabi on Friday before climbing to as much as 2.40 dirhams. The stock then pared all of those gains to trade 2.6% lower at 11:41 a.m. local time.
The lackluster performance comes after the IPO had been priced at the top of the range and upsized by 12% on strong demand from international and regional institutional investors. IPOs in the Persian Gulf have held up well despite the uncertainty from the Israel-Hamas war and concerns about higher interest rates.
Other recent major listings in the region have soared on debut, such as Saudi cargo firm SAL Saudi Logistics Services, and oil driller ADES Holding Co which jumped as much as 30%. Investcorp Capital’s debut is the worst for IPOs raising at least $100 million in the Middle East in almost a year, since Saudi Aramco Base Oil Co.’s slump at the end of 2022.
More than half of the offering — $250 million — had been taken up by a cornerstone investor, a special purpose vehicle including about 160 investors from across the Gulf, including existing Investcorp clients. Volumes are also in focus as Investcorp Capital debuted on Friday, the day all markets in the Gulf are closed except in the UAE.
Investcorp Capital, which is backed by Investcorp Holdings, invests in private equity, real estate, credit and general partner positions in North America, Europe, the Middle East and Asia. Investcorp sold 398.5 million shares in the IPO, while the rest were new shares from the company.
Investcorp Capital Plc, an investment vehicle backed by the Middle East’s biggest alternative asset manager, dropped on its first day of trading after its $451 million initial public offering in a rare poor debut in the region.
Shares in the company opened flat at the offering price of 2.30 dirhams in Abu Dhabi on Friday before climbing to as much as 2.40 dirhams. The stock then pared all of those gains to trade 2.6% lower at 11:41 a.m. local time.
The lackluster performance comes after the IPO had been priced at the top of the range and upsized by 12% on strong demand from international and regional institutional investors. IPOs in the Persian Gulf have held up well despite the uncertainty from the Israel-Hamas war and concerns about higher interest rates.
Other recent major listings in the region have soared on debut, such as Saudi cargo firm SAL Saudi Logistics Services, and oil driller ADES Holding Co which jumped as much as 30%. Investcorp Capital’s debut is the worst for IPOs raising at least $100 million in the Middle East in almost a year, since Saudi Aramco Base Oil Co.’s slump at the end of 2022.
More than half of the offering — $250 million — had been taken up by a cornerstone investor, a special purpose vehicle including about 160 investors from across the Gulf, including existing Investcorp clients. Volumes are also in focus as Investcorp Capital debuted on Friday, the day all markets in the Gulf are closed except in the UAE.
Investcorp Capital, which is backed by Investcorp Holdings, invests in private equity, real estate, credit and general partner positions in North America, Europe, the Middle East and Asia. Investcorp sold 398.5 million shares in the IPO, while the rest were new shares from the company.
UK Slams NMC for Misleading Market Over $4 Billion Debt Position - Bloomberg
UK Slams NMC for Misleading Market Over $4 Billion Debt Position - Bloomberg
The UK’s markets regulator censured fallen Middle Eastern hospital operator NMC Health Plc, saying the once-FTSE100 listed firm misled investors about its debt position by as much as $4 billion.
The Financial Conduct Authority didn’t levy a fine, saying that any penalty would reduce the funds available for creditors. The regulator said the healthcare operator used dual sets of accounting records, but repeatedly published financial statements that understated its debts to the tune of billions of dollars.
“The concealment of NMC’s debt position and subsequent collapse has left creditors including investors out of pocket,” said Steve Smart, the FCA’s Joint Executive Director of Enforcement and Market Oversight.
NMC collapsed into administration in April 2020 just two years after its market value had soared to around £8.6 billion ($10.7 billion). Once a top- performing stock, the shares of the company founded by Indian entrepreneur Bavaguthu Raghuram Shetty plunged before trading was suspended amid allegations of fraud.
The case has triggered investigations and lawsuits and dragged in auditors Ernst & Young who are accused of turning a blind eye to multiple misstatements. The auditor, now known as EY, has denied the allegations.
The FCA said it was satisfied that there “was knowledge within NMC at a sufficiently senior level” that the published information was false or misleading.
The UK’s markets regulator censured fallen Middle Eastern hospital operator NMC Health Plc, saying the once-FTSE100 listed firm misled investors about its debt position by as much as $4 billion.
The Financial Conduct Authority didn’t levy a fine, saying that any penalty would reduce the funds available for creditors. The regulator said the healthcare operator used dual sets of accounting records, but repeatedly published financial statements that understated its debts to the tune of billions of dollars.
“The concealment of NMC’s debt position and subsequent collapse has left creditors including investors out of pocket,” said Steve Smart, the FCA’s Joint Executive Director of Enforcement and Market Oversight.
NMC collapsed into administration in April 2020 just two years after its market value had soared to around £8.6 billion ($10.7 billion). Once a top- performing stock, the shares of the company founded by Indian entrepreneur Bavaguthu Raghuram Shetty plunged before trading was suspended amid allegations of fraud.
The case has triggered investigations and lawsuits and dragged in auditors Ernst & Young who are accused of turning a blind eye to multiple misstatements. The auditor, now known as EY, has denied the allegations.
The FCA said it was satisfied that there “was knowledge within NMC at a sufficiently senior level” that the published information was false or misleading.
Oil Collapses Into Bear Market as Robust Supply Pressures OPEC+ - Nov. 17 - Bloomberg
Oil Collapses Into Bear Market as Robust Supply Pressures OPEC+ - Nov. 17 - Bloomberg
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Oil headed for a fourth weekly loss after sinking into a bear market, a development that poses a headache for OPEC+ leaders set to review production targets later this month.
West Texas Intermediate is on course for a weekly drop of about 5%, even as the benchmark edged higher on Friday. It is down more than 20% from a high in September.
The latest slump has been driven by a myriad of factors. Prices for real-world barrels have been steadily softening over the last few weeks, in part as supply exceeds expectations. Shipments from Guyana and the North Sea are set to rise next month, while US exports have been surging.
Those higher volumes muddy the outlook ahead of a meeting of the Organization of Petroleum Exporting Countries and its allies at the end of next week. Saudi Arabia and Russia — the group’s biggest producers — have pledged to keep additional output curbs in place until the end of the year, though Russia’s crude exports have risen in recent weeks.
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Oil headed for a fourth weekly loss after sinking into a bear market, a development that poses a headache for OPEC+ leaders set to review production targets later this month.
West Texas Intermediate is on course for a weekly drop of about 5%, even as the benchmark edged higher on Friday. It is down more than 20% from a high in September.
The latest slump has been driven by a myriad of factors. Prices for real-world barrels have been steadily softening over the last few weeks, in part as supply exceeds expectations. Shipments from Guyana and the North Sea are set to rise next month, while US exports have been surging.
Those higher volumes muddy the outlook ahead of a meeting of the Organization of Petroleum Exporting Countries and its allies at the end of next week. Saudi Arabia and Russia — the group’s biggest producers — have pledged to keep additional output curbs in place until the end of the year, though Russia’s crude exports have risen in recent weeks.
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