Oil Drop Deepens as Gaza Talks Push Crude Below Key Price Levels Feb. 2 - Bloomberg

Latest Oil Prices, Market News and Analysis for Feb. 2 - Bloomberg

Oil slumped as talks to pause the Israel-Hamas war reduced crude’s geopolitical risk premium, with the decline accelerating after crude slipped below key technical levels.

West Texas Intermediate fell about 2% to trade near $72 a barrel, en route to the biggest weekly tumble since early October.

Early negotiations to halt bombardments and release hostages are bolstering prospects for a resolution to the four-month conflict, which has threatened Middle East energy flows. Headlines on the talks and oil’s drop below its 200-day and 50-day moving averages triggered trend-following algorithms, exacerbating the decline.

Meanwhile, there have been several indications that world markets remain adequately supplied. On Friday, WTI’s prompt spread — the difference between its two nearest contracts — flipped as much as 5 cents into contango, a bearish structure that shows weakening demand for near-term barrels.

Mideast Stocks: #Dubai up ahead of US employment data, #AbuDhabi falls

Mideast Stocks: Dubai up ahead of US employment data, Abu Dhabi falls

The Dubai stock exchange closed higher on Friday, ahead of crucial U.S. employment data that could hasten bets for rate cuts, while Abu Dhabi's index fell.

Economists polled by Reuters estimated the U.S. economy added 180,000 new jobs last month after creating 216,000 in December. The employment data is due at 1330 GMT.

Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely. Oil prices, a key contributor to Gulf's economy, rebounded on Friday after the OPEC+ group decided to keep production policy unchanged. Brent crude was up 0.60% to $79.17 a barrel by 1058 GMT.

Dubai's main index gained 0.2%, helped by a 3.4% jump in Emirates Central Cooling Systems Corporation, while Dubai's top lender Emirates NBD Bank increased 1.4%. Among the gainers, Investment bank Shuaa Capital surged 14.7%, its biggest intraday rise since late March 2019, after the firm denied rumours regarding delisting from the Dubai Financial Market.

The Dubai index notched up 1.6% on a weekly basis, while Abu Dhabi's index logged 1.2% weekly losses according to LSEG data.

However, Abu Dhabi's benchmark index edged 0.1% lower, extending losses to straight seventh session, dragged down by a 1.4% slump in IHC-owned investment firm Multiply Group and a 1.2% decline in UAE's third-largest lender Abu Dhabi Commercial Bank.

The losses in the index were stemmed by a 2.9% jump in petrochemical firm Borouge as the firm reported better than expected Q4 earnings on Thursday. The firm posted a 16% growth in Q4 net profit to $288 million that beat $225.4 million Q4 estimates.

#Dubai-based Shuaa Capital not delisting, board confirms

Dubai-based Shuaa Capital not delisting, board confirms

Investment bank and asset manager Shuaa Capital has denied rumours that it is to de-list from Dubai Financial Market (DFM).

A statement said: “With reference to the recent news about Shuaa Capital PSC going private and the intention of the company’s board of directors to delist it from the Dubai Financial Market, the board wishes to confirm that all such rumours are unfounded.”

The statement said a capital restructuring plan is in progress and shareholders will be informed about developments by February 14th, along with the disclosure of unaudited 2023 full year results.

#SaudiArabia has not yet joined BRICS - Saudi official source

Saudi Arabia has not yet joined BRICS - Saudi official source

Saudi Arabia is still considering an invitation to become a member of the BRICS bloc of countries after being asked to join by the group last year, a Saudi official source told Reuters.

The source commented after South Africa's Foreign Minister Naledi Pandor said on Wednesday the kingdom had joined the grouping.

"Saudi Arabia has not yet responded to the invitation to join BRICS. It is still under consideration," the Saudi official source said in a statement to Reuters.

The group in August invited Saudi Arabia, the United Arab Emirates, Egypt, Iran, Argentina and Ethiopia to join from Jan. 1, although Argentina signalled it would not take up the invitation in November.

The expansion of the BRICS group, whose current members are Brazil, Russia, India, China and South Africa, would give it additional economic heft and could also boost its declared ambition to become a champion of the Global South, helping reshuffle a world order it views as outdated.

Faisal Alibrahim, Saudi Arabia's economy minister, earlier this month said the kingdom was still looking into the matter.

Riyadh is weighing its options against a backdrop of rising geopolitical tensions between the United States, China and Russia, and as the kingdom's warming ties with Beijing have caused concern in Washington.

Fellow Gulf Cooperation Council (GCC) member the UAE United Arab Emirates has said it had joined the bloc.