Fracking News: Shale Oil Surge Poses Threat to OPEC’s Crude Prices - Bloomberg

Fracking News: Shale Oil Surge Poses Threat to OPEC’s Crude Prices - Bloomberg

OPEC’s one-time nemesis — US shale — is rearing its head just months after the sector was all but written off as a threat to the cartel’s sway over worldwide oil markets.

Drillers from the Permian Basin in West Texas to the Bakken Shale of North Dakota have ramped up oil production well beyond what analysts foresaw, pushing output to a record just as OPEC and its allies put the brakes on supplies in a bid to arrest price declines.

This time last year, US government forecasters predicted domestic production would average 12.5 million barrels a day during the current quarter. In recent days, that estimate was bumped to 13.3 million; the difference is equivalent to adding a new Venezuela to global supplies.

That growth is reverberating around the world, calling into question the OPEC+ group’s strategy of curbing supplies to prevent the potentially catastrophic price impacts of a glut. It also makes clear that the legions of companies that pump oil from US shale fields still wield enough power to bedevil the cartel’s efforts.

“The US clearly played a huge role in the global market in 2023, including pressuring OPEC+ to curtail their output,” Wood Mackenzie Ltd. analyst Ryan Duman said during an interview.

Goldman-Backed #Saudi Firm Tamara Hits Unicorn Valuation - Bloomberg

Goldman-Backed Saudi Firm Tamara Hits Unicorn Valuation - Bloomberg

Saudi Arabian financial technology company Tamara, which is backed by Goldman Sachs Group Inc., has been valued at over $1 billion in its latest equity funding round.

Tamara raised $340 million from investors including Sanabil, a unit of the Saudi sovereign wealth fund, and SNB Capital, a unit of the kingdom’s largest bank, according to a statement from the fintech firm.

Many startups in the Middle East faced a tougher fundraising environment this year as a global slowdown in venture deals that begun in 2022 spread to the region. Venture funding volumes for Middle East and North Africa based startups dropped 44% in the first nine months of the year, according to data provider Magnitt.

Tamara, one of the Middle East’s biggest buy now, pay later startups, is starting to consider an initial public offering in the next few years, Chief Executive Officer Abdulmajeed Alsukhan said in an interview.

“An IPO in the Saudi market is something we believe is not only attainable but desirable,” said Alsukhan, who is also co-founder of the three-year-old firm. “There’s huge demand for companies like Tamara to IPO,” although a share offering is probably a few years away, he said.

The latest equity funding round for Tamara follows a debt raise last month that was backed by Goldman Sachs. The US bank also helped fund a debt facility for the company earlier this year.

Tamara operates in the United Arab Emirates, Saudi Arabia and Kuwait. It has over 10 million users and works with more than 30,000 merchants.

Some of the region’s bigger startups have seen significant equity fundraising as they grow and plan share sales.

Tabby, another Saudi-based fintech company, hit a $1.5 billion valuation in a pre-IPO fundraising, the company said last month. Middle Eastern e-commerce firm Floward is working with Goldman Sachs and HSBC Holdings Plc for a planned IPO in Saudi Arabia, people familiar with the matter told Bloomberg in November.

#UAE markets fall as rate cut hopes teeter; #Saudi, Egypt gain | Reuters

UAE markets fall as rate cut hopes teeter; Saudi, Egypt gain | Reuters

Stock markets in the United Arab Emirates ended lower on Monday after a top U.S. central bank policymaker pushed back against expectations of imminent rate cuts, while the Saudi index gained on rising oil prices.

New York Fed President John Williams said on Friday the central bank remained focused on bringing inflation down to its target of 2% and added it was just "premature" to discuss rate cuts at this point.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

Dubai's main share index (.DFMGI) fell 0.3%, hit by a 1.5% fall in top lender Emirates NBD (ENBD.DU) and a 1.5% decrease in Taaleem Holdings (TAALEEM.DU).

In Abu Dhabi, the index (.FTFADGI) dropped 0.2%.

The Abu Dhabi bourse moved to the downside after a series of gains last week. The market could remain exposed to some risks with investors' expectations changing, said Daniel Takieddine, CEO MENA at BDSwiss.

"At the same time, the rebound in oil markets could provide some support."

Saudi Arabia's benchmark index (.TASI) advanced 0.7%, led by a 0.6% rise in oil giant Saudi Aramco (2222.SE) and a 3.4% increase in Saudi National Bank (1180.SE).

Oil rose as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions, although scepticism around Russia's plan to cut exports in December limited gains.

Outside the Gulf, Egypt's blue-chip index (.EGX30) jumped 2.2%, ahead of presidential election results, as most of its constituents were in positive territory.

The results are due to be announced on Monday, with Abdel Fattah al-Sisi expected to secure a third term that would keep him in power till 2030 in a vote in which he faced no serious challengers.

** Markets in Kuwait, Bahrain, Oman and Qatar were closed.

#Oman Seeks to Avoid Financial Gray List, With Iran Ties in Focus - Bloomberg

Oman Seeks to Avoid Financial Gray List, With Iran Ties in Focus - Bloomberg

Oman, a Gulf state known for its neutrality and close ties to both the US and Iran, is gearing up for a key review from a global watchdog on dirty money — hoping to avoid the fate of the neighboring United Arab Emirates.

A delegation from the Paris-based Financial Action Task Force is set to visit Muscat in late January, paving the way for a review later in 2024. After witnessing the UAE’s demotion to the so-called gray list in March 2022, Omani officials have been working to prevent a similar outcome.

Unlike the UAE, which adopted crypto-friendly policies and has a thriving luxury property market open to international investors, Oman’s economy is smaller and more conservative. That, coupled with recent oversight measures, makes Muscat well-positioned to avoid a gray-list designation, according to people familiar with the FATF proceedings.

Still, local officials acknowledge concerns over Oman’s ties to Iran, a country that’s facing significant US sanctions.

“The greatest vulnerability is our location,” central bank chief Tahir Al Amri said in a rare interview from his office in Muscat. “This is the main risk. It’s because of the relationship with Iran.”

The Omani leadership leveraged its close ties to Washington and Tehran during the Obama administration, hosting important diplomatic contacts that ultimately paved the way for the 2015 nuclear deal. Now, with conflicts swirling in the Middle East and Eastern Europe, Muscat’s geopolitical neutrality is set to come under the microscope.

Nio signs to receive $2.2 bln from #AbuDhabi investor CYVN | Reuters

Nio signs to receive $2.2 bln from Abu Dhabi investor CYVN | Reuters

Nio (9866.HK) said on Monday that it signed an agreement with CYVN Holdings, an investment vehicle based in Abu Dhabi, for the latter to invest $2.2 billion in the Chinese electric vehicle maker.

The new investment, with the closing expected in the final week of December, would increase CYVN's shareholding to 20.1% of Nio's total issued and outstanding shares, following an investment of $1 billion in July, according to a Nio statement posted on its website.

CYVN, which will subscribe for 294,000,000 newly issued Class A ordinary shares of Nio at a price of US$7.50 per share, will also be entitled to nominate two directors to Nio's board of directors, Nio added.

Major Gulf markets ease as rate cut hopes teetered | Reuters

Major Gulf markets ease as rate cut hopes teetered | Reuters

Major Gulf markets were subdued in early trade on Monday after the New York Federal Reserve president pushed back against expectations of imminent rate cuts, although rising oil prices limited losses.

New York Fed President John Williams on Friday said the central bank remained focused on bringing inflation down to its target of 2% and added it was "'premature' to discuss rate cuts at this point".

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

Saudi Arabia's benchmark index (.TASI) eased 0.2%, hit by a 1.3% fall in Al Rajhi Bank (1120.SE) and a 0.7% decrease in Alinma Bank (1150.SE).

On the other hand, oil giant Saudi Aramco (2222.SE) added 0.3%.

Oil prices rose in Asian trade, rising nearly 1% in early trade, supported by lower exports from Russia and as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruption.

Dubai's main share index (.DFMGI) lost 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) losing 0.1%.

In Abu Dhabi, the index (.FTFADGI) was down 0.1%.

** Markets in Kuwait, Bahrain, Oman and Qatar were closed.