Aramco Hunts for Asia Deals to Boost Refining and Chemicals - Bloomberg
Saudi Aramco, the world’s biggest oil exporter, is seeking refining and chemicals deals in Asia as it looks to rapidly expand the business and secure long-term buyers for its crude.
The company is looking at China and India for more acquisitions, president of the downstream unit, Mohammed Al Qahtani, said. The majority of Aramco’s crude is sold in Asia, and demand for oil and related products is expected to keep expanding in the region, he said.
The state-run company, which has made more than $80 billion of downstream investments since 2016, is already making moves in China. It bought a stake in one company last year and is in talks for two others. Saudi Arabia sees demand for petrochemicals that are used to make goods such as plastics continuing to rise over the coming decades, even as oil’s use in transportation is likely to wane with the global energy transition.
“Really, the big growth markets for us are China, India and southeast Asia,” Al Qahtani said in an interview in Dhahran, Saudi Arabia. The company is looking for “organic and inorganic” opportunities, he said, referring to acquisitions and expanding existing projects. “As we speak today we have teams in China negotiating deals.”
Talks in China are proceeding faster than in India, where Aramco is in discussions with partners and customers for “actual investments on the ground,” Al Qahtani said, declining to give more details.
Friday, 26 January 2024
#Qatar Lifted by Moody’s to Match France, #UAE and Overtake UK - Bloomberg
Qatar Lifted by Moody’s to Match France, UAE and Overtake UK - Bloomberg
Qatar’s already high credit rating was upgraded by Moody’s Investors Service for the first time since 2007, as strong global demand for liquefied natural gas boosts the Gulf state’s long-term prospects.
Moody’s lifted Qatar one level to Aa2, its third-highest investment grade, according to a statement late Thursday. It’s now on par with France, South Korea and the United Arab Emirates, and a level above the UK.
The rating company also changed Qatar’s outlook from positive to stable, meaning another upgrade is unlikely in the short term. Qatar’s rated the same level by S&P Global Ratings and one step below by Fitch Ratings.
“The upgrade reflects Moody’s view that the significant improvement in Qatar’s fiscal metrics, achieved during 2021-2023, will be sustained in the medium term,” Moody’s analysts including David Rogovic wrote. “The government will continue to maintain fiscal prudence, including by continuing to wind down its infrastructure spending program.”
Qatar’s already high credit rating was upgraded by Moody’s Investors Service for the first time since 2007, as strong global demand for liquefied natural gas boosts the Gulf state’s long-term prospects.
Moody’s lifted Qatar one level to Aa2, its third-highest investment grade, according to a statement late Thursday. It’s now on par with France, South Korea and the United Arab Emirates, and a level above the UK.
The rating company also changed Qatar’s outlook from positive to stable, meaning another upgrade is unlikely in the short term. Qatar’s rated the same level by S&P Global Ratings and one step below by Fitch Ratings.
“The upgrade reflects Moody’s view that the significant improvement in Qatar’s fiscal metrics, achieved during 2021-2023, will be sustained in the medium term,” Moody’s analysts including David Rogovic wrote. “The government will continue to maintain fiscal prudence, including by continuing to wind down its infrastructure spending program.”
#UAE’s largest lender says oil prices will average at $80 per barrel in 2024
UAE’s largest lender says oil prices will average at $80 per barrel in 2024
The UAE’s largest lender is expecting oil prices to average $80 per barrel in 2024 in a “cautiously optimistic” forecast following record crude demand from India and China in 2023 and strong recovery in global air travel.
First Abu Dhabi Bank (FAB) said in its newly launched ‘Global Investment Outlook 2024’ that geopolitical risks are expected to remain in play during the year, but certain fuel product inventories are still tight.
Saudi Arabia will increase its crude production at some point during the year, it is just a question of when, the report said, with Russian flows expected to stay close to current levels and US output close to peaking with the dollar softening.
Brent crude averaged $82 in 2023, close to FAB’s revised forecast in June of $84, the bank said, and potential headwinds and tailwinds remain in play in 2024.
The bank said the ‘war-risk’ premium which saw both Brent and WTI jump above $90 a barrel following the outbreak of the Israel-Hamas conflict in October 2023 has since dissipated.
“But the longer the fighting there continues, the risk of a broader escalation lingers, highlighted by the several attacks launched by Houthi rebels in Yemen against commercial vessels sailing in the Red Sea late last year,” the bank said.
“This ongoing threat to shipping should not be underestimated as almost 10% of the world’s seaborne oil supplies travel via this maritime route, as do significant flows of LNG.”
Other geopolitical issues including the suspension of oil production in the semi-autonomous Kurdistan region as well as Iran’s level of oil exports will be factors that could impact prices to observe in 2024, the bank said.
The UAE’s largest lender is expecting oil prices to average $80 per barrel in 2024 in a “cautiously optimistic” forecast following record crude demand from India and China in 2023 and strong recovery in global air travel.
First Abu Dhabi Bank (FAB) said in its newly launched ‘Global Investment Outlook 2024’ that geopolitical risks are expected to remain in play during the year, but certain fuel product inventories are still tight.
Saudi Arabia will increase its crude production at some point during the year, it is just a question of when, the report said, with Russian flows expected to stay close to current levels and US output close to peaking with the dollar softening.
Brent crude averaged $82 in 2023, close to FAB’s revised forecast in June of $84, the bank said, and potential headwinds and tailwinds remain in play in 2024.
The bank said the ‘war-risk’ premium which saw both Brent and WTI jump above $90 a barrel following the outbreak of the Israel-Hamas conflict in October 2023 has since dissipated.
“But the longer the fighting there continues, the risk of a broader escalation lingers, highlighted by the several attacks launched by Houthi rebels in Yemen against commercial vessels sailing in the Red Sea late last year,” the bank said.
“This ongoing threat to shipping should not be underestimated as almost 10% of the world’s seaborne oil supplies travel via this maritime route, as do significant flows of LNG.”
Other geopolitical issues including the suspension of oil production in the semi-autonomous Kurdistan region as well as Iran’s level of oil exports will be factors that could impact prices to observe in 2024, the bank said.
Mideast Stocks: #UAE markets track oil price lower
Mideast Stocks: UAE markets track oil price lower
Stock exchanges in the United Arab Emirates declined on Friday, tracking oil prices on the prospect that oil shipping disruptions in the Red Sea may ease as Chinese officials have asked Iran to help rein in attacks on ships by the Iran-backed Houthis.
Adding to the market woes, Fitch Ratings said broader Gaza conflict fallout adds to risks for neighbouring sovereigns.
Oil price - a key catalyst for the Gulf's financial markets - was down 0.58% at $81.95 a barrel by 1127 GMT. Abu Dhabi's benchmark index shed 0.6%, extending losses to the second session, dragged down by a 2.3% decline in IHC-owned investment firm Multiply Group and 1.7% loss in UAE's largest lender First Abu Dhabi Bank.
Among other stock, Sharjah-based Dana Gas dropped 2.8%, hitting nearly a three-year low of 0.730 dirham a share after the firm said that a drone strike damaged a liquid storage tank at the Khor Mor facility in the Kurdistan Region Of Iraq. Dana Gas said production was temporarily suspended to put out a fire, which was extinguished, and a resumption of operations was expected soon.
Abu Dhabi market could find some support if oil prices remain on an uptrend, although geopolitical tensions could continue to weigh on sentiment, said Daniel Takieddine, CEO of MENA at BDSwiss. Dubai's main index slipped 0.2% as top lender Emirates NBD Bank fell 1.6%, while low-cost carrier Air Arabia lost 1%.
The Dubai index notched up 2% on a weekly basis, while the Abu Dhabi index logged 1.5% weekly losses, according to LSEG data.
Stock exchanges in the United Arab Emirates declined on Friday, tracking oil prices on the prospect that oil shipping disruptions in the Red Sea may ease as Chinese officials have asked Iran to help rein in attacks on ships by the Iran-backed Houthis.
Adding to the market woes, Fitch Ratings said broader Gaza conflict fallout adds to risks for neighbouring sovereigns.
Oil price - a key catalyst for the Gulf's financial markets - was down 0.58% at $81.95 a barrel by 1127 GMT. Abu Dhabi's benchmark index shed 0.6%, extending losses to the second session, dragged down by a 2.3% decline in IHC-owned investment firm Multiply Group and 1.7% loss in UAE's largest lender First Abu Dhabi Bank.
Among other stock, Sharjah-based Dana Gas dropped 2.8%, hitting nearly a three-year low of 0.730 dirham a share after the firm said that a drone strike damaged a liquid storage tank at the Khor Mor facility in the Kurdistan Region Of Iraq. Dana Gas said production was temporarily suspended to put out a fire, which was extinguished, and a resumption of operations was expected soon.
Abu Dhabi market could find some support if oil prices remain on an uptrend, although geopolitical tensions could continue to weigh on sentiment, said Daniel Takieddine, CEO of MENA at BDSwiss. Dubai's main index slipped 0.2% as top lender Emirates NBD Bank fell 1.6%, while low-cost carrier Air Arabia lost 1%.
The Dubai index notched up 2% on a weekly basis, while the Abu Dhabi index logged 1.5% weekly losses, according to LSEG data.
#Dubai's property boom shows signs of fizzling out | Reuters
Dubai's property boom shows signs of fizzling out | Reuters
Still, the real-estate industry remains a key barometer of its success, accounting for 8.9% of the economy.
"Dubai's vulnerability to correction lies in its dependence on foreign capital, particularly from China and Russia," Ronan Hannan, principal at consultancy Proven Partners, told Reuters.
Massive infrastructure spending, generous income tax policies and an 'open-door' approach to immigration reinforced after the pandemic have attracted thousands of foreigners.
As cranes speckle the Dubai skyline and ultra-luxury homes change hands at record prices, signs that the city-state's property boom is fizzling out are coming into view.
Developers, investors and brokers are privately asking how quickly one of last year's hottest real estate markets could turn and whether a painful correction akin to the slump that rocked the emirate in 2008 can be ruled out.
Since then Dubai has pursued an economic reboot anchored on what it hopes is sustainable growth, including a 10-year plan known as D33, to double output and become one of the world's top four financial centres.
Still, the real-estate industry remains a key barometer of its success, accounting for 8.9% of the economy.
"Dubai's vulnerability to correction lies in its dependence on foreign capital, particularly from China and Russia," Ronan Hannan, principal at consultancy Proven Partners, told Reuters.
Massive infrastructure spending, generous income tax policies and an 'open-door' approach to immigration reinforced after the pandemic have attracted thousands of foreigners.