Egypt plans to conclude oil, gas deal with UAE company

Egypt plans to conclude oil, gas deal with UAE company
Short Url
Updated 08 September 2021

Egypt plans to conclude oil, gas deal with UAE company

Egypt plans to conclude oil, gas deal with UAE company

Egypt has said it intends to conclude an agreement with the UAE’s Dragon Oil Co. to increase oil and gas production.


Tarek El-Molla, Egypt’s minister of petroleum and mineral resources, said there are new investments in the Gulf of Suez to explore for oil and gas.


He described these investments as being a priority for his ministry, which is trying to develop and modernize Egypt’s petroleum sector.


He said a seismic survey and data collection program is being implemented in the Gulf of Suez in order to provide new opportunities for exploration and production.


El-Molla added that rising global oil prices have encouraged international companies to increase investment in the sector.


NY-based crypto firm plans to raise $500m in debt

NY-based crypto firm plans to raise $500m in debt
Updated 6 sec ago

NY-based crypto firm plans to raise $500m in debt

NY-based crypto firm plans to raise $500m in debt

CAIRO: Galaxy Digital, a New York-based crypto investment company, intends to raise $500 million in the debt market, the Financial Times reported on Wednesday.

The firm seeks to utilize the funds to expand the business.

“Galaxy is seeking to become the Goldman Sachs of crypto,” Financial Times reported on behalf of Novogratz, a former Fortress Investment Group executive.

“The company is growing quickly, with net income rising in the third quarter to $517 million, from $41.5 million in the same three months last year,” he added.

Galaxy detailed that the deal will only serve persons who qualify as professional investors.

The convertible note deal is expected to close this year, subject to Toronto Stock Exchange approval, where Galaxy’s shares are listed.

 


OPEC+ starts two days of talks amid oil price gyrations, Omicron fears

OPEC+ starts two days of talks amid oil price gyrations, Omicron fears
Image: Shutterstock
Updated 10 min 19 sec ago

OPEC+ starts two days of talks amid oil price gyrations, Omicron fears

OPEC+ starts two days of talks amid oil price gyrations, Omicron fears
  • But some analysts have suggested OPEC+ might put its plans to add 400,000 bpd to supply in January on hold

OPEC and its allies begin two days of meetings on Wednesday to decide whether to release more oil into the market or restrain supply amid big gyrations in crude prices and uncertainty about the impact of the Omicron coronavirus variant on energy demand.


Oil prices fell to near $70 a barrel on Tuesday, after hitting a three-year high above $86 in October, posting their biggest monthly decline in November since the start of the pandemic, as the new variant raised fears of a glut.


In November, Brent fell by 16.4 percent, while US crude fell 20.8 percent, the biggest monthly fall since March 2020.

Both contracts rebounded sharply on Wednesday, gaining about 5 percent.


Iraqi oil minister Ihsan Abdul Jabbar said he expected the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to extend existing output policy in the short term, the state news agency reported.


OPEC+ ministers, including those from the group’s biggest producers Russia and Saudi Arabia, have said there was no need for a knee-jerk reaction to amend policy.


Since August, the group has been adding an additional 400,000 barrels per day of output to global supply, as it gradually winds down record cuts agreed in 2020, when demand cratered because of the pandemic.


Algerian energy minister Mohamed Arkab said on Tuesday that OPEC+ would supply the global market with enough oil but urged caution about the impact of the Omicron variant, Algerian state news agency APS reported.


“The threat to oil demand is genuine,” said Louise Dickson, senior oil markets analyst at Rystad Energy. “Another wave of lockdowns could result in up to 3 million bpd of oil demand lost in the first quarter of 2022.”


But Goldman Sachs said the oil price slide in recent days had been excessive, with the market now pricing in a 7 million bpd hit to demand.


Adding pressure to prices, Federal Reserve Chair Jerome Powell said the US central bank was likely to discuss speeding up its reduction of bond purchases amid a strong economy and expectations that a surge in inflation would persist.


OPEC meets on Wednesday at 1300 GMT. That meeting will be followed on Thursday by a gathering of the wider OPEC+ group.


A delegate from the OPEC+ alliance said Wednesday’s OPEC meeting “should be straightforward.” 


But some analysts have suggested OPEC+ might put its plans to add 400,000 bpd to supply in January on hold.


Even before concerns about Omicron emerged, the group had been weighing the effects of last week’s announcement by the United States and other countries to release emergency crude reserves to temper energy prices.


OPEC+ has been gradually scaling back last year’s record output cuts of 10 million bpd, equivalent to about 10 percent of global supply. About 3.8 million bpd of cuts are still in place.


But OPEC’s November oil output has again undershot the level planned, as some OPEC producers have struggled to hike output, a Reuters survey found, after years of low investment and amid global pressures to reduce fossil fuel use.


Nasdaq Inc. to shift to Amazon cloud in 2022

Nasdaq Inc. to shift to Amazon cloud in 2022
Updated 16 min 51 sec ago

Nasdaq Inc. to shift to Amazon cloud in 2022

Nasdaq Inc. to shift to Amazon cloud in 2022

RIYADH: Nasdaq Inc., the multinational financial services corporation that owns and operates three stock exchanges in the US, plans to switch over to Amazon Web Services cloud to reduce costs, Bloomberg reported.

The initiative will involve moving massive amounts of the exchange’s data to the third-party cloud-based service, outsourcing storage and processing capabilities from AWS Outposts.

The migration will take place in phases. The exchange is expected to kickoff cloud trading next year, beginning with Nasdaq MRX, with a long-term plan to host over 25 markets by 2030.

 “The roll-out will happen over a multi-step testing period to ensure existing Nasdaq customers are comfortable with the transition,” Tal Cohen, executive vice president and head of North American markets at NYSE, stated.

 Earlier this month, CME Group Inc. and Alphabet Inc.’s Google struck a deal to move and start trading derivatives data on Google Cloud. 


Qatar Air opts for Boeing freighter amid Airbus paint dispute 

Qatar Air opts for Boeing freighter amid Airbus paint dispute 
Updated 9 min 23 sec ago

Qatar Air opts for Boeing freighter amid Airbus paint dispute 

Qatar Air opts for Boeing freighter amid Airbus paint dispute 

RIYADH: Qatar Airways has placed an order with Boeing for nearly 50 freighter planes amid its dispute with Airbus, Bloomberg reported citing the chief executive officer of the Gulf carrier. 

Akbar Al-Baker is concerned with paint and surface flaws on Airbus’s A350 cargo jets, as the aircraft suggested using copper foil as a lightning-conductor on the fuselage which could require it seeking new regulatory approvals. 

“When we even change the armrests of our seats it has to be recertified,” Bloomberg reported citing Al-Baker. 

The problems of Airbus’s A350 cargo jets surface finish come as the aerospace company seeks to gather buyers for the freighter version. 

Earlier this week, Airbus spokesman said that the company is working on the paint issue with the European Union Aviation Safety Agency. 

Qatar Airlines is ranked as the biggest cargo carrier among passenger airlines. 


Saudi Arabia may raise January oil prices to Asia

Saudi Arabia may raise January oil prices to Asia
Image: Shutterstock
Updated 25 min 27 sec ago

Saudi Arabia may raise January oil prices to Asia

Saudi Arabia may raise January oil prices to Asia
  • Global oil prices have lost about $10 a barrel since Thursday when news of Omicron shook investors

 

Top oil exporter Saudi Arabia may raise crude prices for Asia in January following large gains in the Middle East spot market last month, but weak refining margins and an oil reserves release by consumers may cap gains, trade sources said.

The January official selling price (OSP) for flagship Arab Light crude could stay little changed or rise as much as $1.20 a barrel to track a similar gain in Dubai benchmark on strong spot crude demand last month, a Reuters survey of sources from seven Asian refiners showed.

A decision on Thursday by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, whether to continue increasing production by 400,000 barrels per day in January will also affect how Saudi Arabia sets the OSPs, traders said. read more

In addition to weighing the impact of the 50 million barrels of crude release from the United States which some analysts say could lead to surplus in the first quarter, OPEC+ will also be assessing how the Omicron coronavirus variant could affect fuel demand as nations re-impose border restrictions to curb the disease's spread. read more

Global oil prices have lost about $10 a barrel since Thursday when news of Omicron shook investors.

Two of the seven respondents expect Arab Light's January OSP to rise by more than $1 while forecasts from three others are in the 50-80 cents range. The remaining two expect the price to stay unchanged or rise by 10-20 cents.

Spot premiums for several Middle East and Russian grades hit near two-year highs last month on tight supply and robust winter demand, but the SPR release dented sentiment. read more

There's far too much supply with the SPR release, and refining margins have seen a huge drop, said one respondent, referring to the slide in Singapore complex margins from about $8 to $2

“COVID uncertainty has also set in,” he added.

Another trader said supplies from other regions have improved and Saudi crude prices will have to stay competitive. Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day of crude bound for Asia.

State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs.