Oil extends loss on India COVID-19 cases, US pipeline restart

Oil extends loss on India COVID-19 cases, US pipeline restart
Palestinian children sleep in a UN school in Gaza City. Oil traders are monitoring the latest clashes. (AFP)
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Updated 14 May 2021

Oil extends loss on India COVID-19 cases, US pipeline restart

Oil extends loss on India COVID-19 cases, US pipeline restart
  • Raising rates typically boosts the US dollar, which in turn pressures oil prices because it makes crude more expensive for holders of other currencies

SINGAPORE: Oil prices fell on Friday after dropping about 3 percent a day earlier as coronavirus cases remained high in major oil consumer India and as a key fuel pipeline in the United States resumed operations after being shut due to a cyberattack.
Brent crude oil futures were down 10 cents, or 0.2 percent, at $66.95 a barrel by 0518 GMT, while West Texas Intermediate (WTI) was down three cents, or 0.1 percent, at $63.79 a barrel. Both prices are heading for their first weekly loss in three weeks.
“The commodity super cycle rally just hit a hard stop and the energy market doesn’t know what to make of Wall Street’s fixation over inflation and the slow flattening of the curve in India,” said Edward Moya, senior market analyst at OANDA. India is the world’s third biggest oil consumer.
“The crude demand story is still upbeat for the second half of the year and that should prevent any significant dips in oil prices,” he added.
Prices came under pressure as a broader surge in commodity prices and stronger-than-expected US consumer prices data this week stoked inflation concerns that could force the Federal Reserve to raise interest rates.
Raising rates typically boosts the US dollar, which in turn pressures oil prices because it makes crude more expensive for holders of other currencies.
India on Friday reported 343,144 new coronavirus cases over the past 24 hours, taking its overall caseload past the 24 million mark, while deaths from COVID-19 rose by 4,000.
In the United States, President Joe Biden reassured motorists that fuel supplies should start returning to normal this weekend, even as more filling stations ran out of gasoline across the Southeast nearly a week after a cyberattack on the nation’s top fuel pipeline.
Colonial Pipeline said late on Thursday it had restarted its entire pipeline system and had begun deliveries in all of its markets.
Traders were also watching the situation in the Middle East after Israel fired artillery and mounted more air strikes on Friday against Palestinian militants in the Gaza Strip amid constant rocket fire deep into Israel’s commercial center.


IHC’s Alpha Dhabi to list on ADX with $2.72bn paid-in-capital

IHC’s Alpha Dhabi to list on ADX with $2.72bn paid-in-capital
Updated 55 min 26 sec ago

IHC’s Alpha Dhabi to list on ADX with $2.72bn paid-in-capital

IHC’s Alpha Dhabi to list on ADX with $2.72bn paid-in-capital
  • Abu Dhabi IPO slated for June 27

ABU DHABI: Alpha Dhabi Holding (ADH) announced its intention to proceed with an IPO and listing of its ordinary shares on the Abu Dhabi Securities Exchange (ADX) on Sunday 27th June with 10 billion Emirati dirhams ($2.72 billion) paid-in capital, WAM reported.

The offering is expected to involve a sale of existing shares to individuals and other investors in the UAE and to qualified institutional and other investors.

“We have made the journey to become a public company in a way that’s going to have a positive reflection on our growth plan, and as a public company we will have a stronger capital structure to invest in additional verticals, expand commercially and accelerate growth both organically and through acquisitions,” said ADH Chairman Mohamed Thani Murshed Al Rumaithi.

IHC acquired a 45 percent stake purchase in ADH in April.

“We invested in Alpha Dhabi in early 2021 and we have used our sector experience to reorganize, integrate and transform Alpha Dhabi into a leading UAE holding company with special focus on construction and hospitality,” said Syed Basar Shueb, CEO IHC.

“The business is growing fast, highlighted by the 30 percent jump in first quarter revenue and gaining a listing on a major stock exchange will enhance its already strong platform and reputation. We are delighted to have supported its management team to deliver on its Abu Dhabi Stock Exchange IPO,” he said.

Incorporated in 2013, Alpha Dhabi operates across five industries, including health care, construction and hospitality. The company’s investment portfolio, local and international, includes 25 subsidiaries and 40,000 employees active in different fields.


Branson’s Virgin Galactic gets FAA approval to fly people to space

Branson’s Virgin Galactic gets FAA approval to fly people to space
Updated 54 min 31 sec ago

Branson’s Virgin Galactic gets FAA approval to fly people to space

Branson’s Virgin Galactic gets FAA approval to fly people to space
  • Company completed its first manned space flight from its home port in New Mexico in May
  • SpaceShipTwo craft can hold six passengers

WASHINGTON: Billionaire Richard Branson’s spaceship company Virgin Galactic Holdings Inc. said on Friday it received approval from the US aviation safety regulator to fly people to space, following a successful test flight last month.

Virgin Galactic completed its first manned space flight from its new home port in New Mexico in May, as its SpaceShipTwo craft, which can hold six passengers, glided to a landing on a runway safely with its two pilots.
The approval from the Federal Aviation Administration (FAA) comes at a critical time for Branson as his space venture faces competition from Amazon.com founder Jeff Bezos’ Blue Origin.
“Today’s approval by the FAA...give us confidence as we proceed toward our first fully crewed test flight this summer,” Virgin Galactic Chief Executive Officer Michael Colglazier said in a statement.
Virgin Galactic has about 600 people who have paid deposits and are waiting to experience weightlessness and see the curvature of the Earth at a cost of $250,000 each.
The craft will take off from a dedicated spaceport in the New Mexico desert in the US.
Branson is expected to take one of the flights this summer.


PIF appoints former Samba CEO as head of compliance

PIF appoints former Samba CEO as head of compliance
Updated 25 June 2021

PIF appoints former Samba CEO as head of compliance

PIF appoints former Samba CEO as head of compliance
  • Rania Nashar was a senior advisor to the governor since January

RIYADH: Saudi Arabia’s Public Investment Fund (PIF) said it appointed Rania Nashar, former CEO of Samba Financial Group, as its head of compliance and governance, Al Arabiya reported.

Nashar joined the fund as a senior adviser to its governor, Yasir Al Rumayyan, in January of this year. She brings with her more than two decades of experience in the banking sector.

PIF recently announced the appointment of Eyas Al-Dossari and Omar Al-Madhi as senior directors to its MENA investments division, and Abdullah Shaker as senior director to its Global Capital Finance Division.

The fund said this month that it had created the position of deputy governor to support the fund’s continued growth and expansion.

Saudi Arabia’s $430 billion PIF is one of the largest and most influential sovereign wealth funds in the world, and the main driver that supports the economic transformation of the Kingdom in accordance with the Kingdom’s Vision 2030 goals.

PIF has increased its employees from 40 in 2016 to more than 1,100 employees today.


Digital banks in Saudi Arabia to reduce costs and stimulate competition — SAMA

Digital banks in Saudi Arabia to reduce costs and stimulate competition — SAMA
Updated 25 June 2021

Digital banks in Saudi Arabia to reduce costs and stimulate competition — SAMA

Digital banks in Saudi Arabia to reduce costs and stimulate competition — SAMA
  • The new lenders will rank 12th and 13th in the Kingdom in terms of capital

RIYADH: Digital banks licensed in Saudi Arabia will help improve the quality and user experience for customers in the Kingdom, supporting innovation and reducing costs, said Yazeed Alsheikh, director for general of banking control at Saudi Central Bank (SAMA).

This will directly contribute to stimulating competition with local banks and financial technology companies, he told Al Eqtisadiah paper.

The Saudi Cabinet gave its nod to the Kingdom’s finance minister to issue licenses for the country’s first digital banks, STC Bank and Saudi Digital Bank, the Saudi Press Agency (SPA) reported on Tuesday.

STC Pay will be converted into a local digital bank, STC Bank, with capital of SR2.5 billion. A second lender, Saudi Digital Bank, will be formed by investors led by Abdul Rahman bin Saad Al-Rashed and Sons Company with capital of SR1.5 billion.

There is a difference between financial technology companies and digital banks, Alsheikh said.

“The financial technology companies are based mainly on innovation in the use of technology for a specific activity, and providing a specific financial product or service to the target segment of beneficiaries, through digital platforms or smart applications,” Al Sheikh said.

“Digital banks’ concept is broader and more comprehensive in providing Integrated banking products and services, such as accepting deposits, financing and other banking services through digital channels exclusively, and have different regulatory and supervisory requirements,” he said.

The two new digital banks in Saudi Arabia will rank 12th and 13th among the national banks operating in the Kingdom in terms of capital, once they obtain the final license to operate.


Suspected cases of corporate collusion in Saudi Arabia surge in 2021

Suspected cases of corporate collusion in Saudi Arabia surge in 2021
Updated 25 June 2021

Suspected cases of corporate collusion in Saudi Arabia surge in 2021

Suspected cases of corporate collusion in Saudi Arabia surge in 2021
  • Cases investigated rises to 86 in 2021 from 55 in 2020
  • Value of cases more than SR1 billion

RIYADH: Cases of suspected collusion in tenders being investigated by the Saudi General Authority for Competition (GAC) rose to 86 in 2021, up from 55 last year and 15 in 2019, Al Arabiya reported.

The value of projects being investigated in the Kingdom amounted to more than SR1 billion ($267 million), Abdulaziz Alzoom, governor of GAC, said in a statement.

In a previous statement, GAC said it had started investigations, research and gathering of evidence with a number of establishments, based on communications it had received from other authorities, and complaints from individuals and companies.