Oil extends rally to multiyear peaks as energy crunch bites: Energy market wrap

Oil extends rally to multiyear peaks as energy crunch bites: Energy market wrap
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Updated 11 October 2021

Oil extends rally to multiyear peaks as energy crunch bites: Energy market wrap

Oil extends rally to multiyear peaks as energy crunch bites: Energy market wrap

RIYADH: Oil prices extended gains to scale multiyear peaks on Monday, fueled by the rebound in global demand that has also contributed to power and gas shortages in key economies like China.

Brent crude was up $1.49, or 1.8 percent, at $83.88 a barrel by 01:18 p.m. EDT (1718 GMT), after hitting its highest since October 2018 at $84.60 earlier in the session.

US West Texas Intermediate crude rose $1.69, or 2.1 percent, to $81.03, after touching its highest since late 2014 at $82.18.

Aramco’s Asian customers

Saudi Aramco has agreed to supply additional crude to at least three Asian buyers in November, while meeting full contractual volume for four others, sources with knowledge of the matter told Reuters.

Acquisition

Eneos Holdings, the biggest refinery in Japan, said on Monday it would buy Japan Renewable Energy for about $1.8 billion to expand its low-carbon business, joining a list of major global companies moving away from climate-changing fossil fuels.

China’s rust belt

Analysts and traders forecast a 12 percent drop in industrial power consumption in the fourth quarter this year because coal supply is expected to fall short this winter in China’s northeast rust belt.

Liaoning province issued its second-highest alert level, which indicates a power shortage equivalent to 10-20 percent of total demand for power, warning that the shortfall could reach nearly 5 GW.

LNG 

China’s ENN Natural Gas Co. Ltd. signed a long-term deal to buy liquefied natural gas from Cheniere Energy, the company said on Monday. The deal starts in July 2022, is for 900,000 tons of LNG a year, and was purchased on a free-on-board basis, it added.

Emissions

Australian Energy Minister Angus Taylor on Monday rejected a call from a lobby group for the country’s biggest companies to set stricter emissions limits on polluters but gave no indication what targets the government may announce ahead of UN climate talks this month.

“A substantial tightening of the Safeguard Mechanism is a backdoor carbon tax consumers will ultimately have to pay for, and that's not acceptable,” Taylor said at a conference organized by the Australian Financial Review.

Canada, Nigeria, Japan, and Pakistan are among 31 parties to join a global pledge, led by the US and EU, to slash planet-warming methane emissions by 30 percent by the end of the decade, US climate envoy John Kerry announced on Monday.

Shale oil and gas producer APA Corp. on Monday said it has ended routine gas flaring in the US, after demands from environmentalists and investors to reduce carbon emissions, to counter global warming.


Bezos donates $443m to fight climate change 

Bezos donates $443m to fight climate change 
Updated 15 sec ago

Bezos donates $443m to fight climate change 

Bezos donates $443m to fight climate change 

JEDDAH: Jeff Bezos has handed over $443 million to climate organizations as part of his $10 billion commitment to tackle global warming.

About $130 million is allocated to help the Justice40 initiative, an environmentally focused effort by President Joe Biden’s administration, according to Bloomberg.

Another $261 million will fund a plan to protect 30 percent of land and sea by 2030, concentrating on the Congo Basin and tropical Andes. 

The world’s second-richest person gave out $791 million to 16 organizations last year, promising to distribute the full $10 billion amount by 2030, Bloomberg reported.


UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 
Updated 12 min 6 sec ago

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

RIYADH: Egyptian billionaire Naguib Sawiris has announced a $100 million deal with Abu Dhabi’s Chimera for investment in Egypt’s real estate.

Through its subsidiary, Chimera subscribed to a capital increase in Egypt’s Gemini Global Development in return for acquiring a minority stake in the company, Asharq reported.

This capital increase aims to develop and expand the real estate activities of Gemini Global Development Egypt through Ora Developers.

Naguib Sawiris said Ora Developers has always aimed to search for opportunities that expand their offerings to a larger base of customers in various markets, while partnering with global investors, contractors and retailers. 

“Through this partnership, Chimera continues to grow and further enhance its global portfolio by investing in a prominent player operating in a high growth sector in Egypt,” Chimera Chairman Syed Basar Shueb said. 


BitMart pledges to compensate users for $150m hack: Crypto Wrap

BitMart pledges to compensate users for $150m hack: Crypto Wrap
Updated 34 min 7 sec ago

BitMart pledges to compensate users for $150m hack: Crypto Wrap

BitMart pledges to compensate users for $150m hack: Crypto Wrap

RIYADH: Crypto exchange BitMart has experienced a security breach that has led to hackers withdrawing around $150 million in cryptocurrency, Bloomberg reported.

Blockchain security firm PeckShield estimates the total loss could run as high as $200 million.

Last week, BitMart closed a Series B funding round led by New York-based private equity firm Alexander Capital Ventures that valued the crypto exchange at more than $300 million.

BitMart will use its own funding to compensate users affected by this hack, according to CEO Sheldon Xia's tweet.

“No user assets will be harmed,” he tweeted, adding the company expects to resume deposit and withdrawal functions on Tuesday.

Also last week, crypto lender Celsius network, which has raised funds from major investors including Canadian pension fund Caisse de Dépôt et Placement du Québec, confirmed that it lost funds as a result of the hack of BadgerDAO, a decentralized finance platform.

Mining

Authorities in Russia and Ukraine have shut down a number of farms involved in the illegal mining of cryptocurrencies allegedly powered by stolen electricity.

"An audit revealed an unauthorized connection to the power grid, theft of electricity and illegal seizure of land for the operation of equipment designed to perform cryptographic calculations related to the mining of digital currencies," Ekaterina Korotkova from the Moscow Interregional Transport Prosecutor’s Office said.

The cost of illegally consumed electricity used to operate mining equipment exceeds 500,000 rubles per day ($7,000), Korotkova explained.

The authorities have filed a criminal case and intend to prosecute the owners of the crypto-mining facility.

Trading

Bitcoin, the leading cryptocurrency in trading internationally, traded higher on Tuesday, rising by 5.39 percent to $51,010 at 4:43 p.m Riyadh time.

Ether, the second most traded cryptocurrency, traded at $4,355, up 7.47 percent, according to data from Coindesk.


Hilton plans to boost Saudi hotel portfolio, says tourism minister

Hilton plans to boost Saudi hotel portfolio, says tourism minister
Updated 35 min 55 sec ago

Hilton plans to boost Saudi hotel portfolio, says tourism minister

Hilton plans to boost Saudi hotel portfolio, says tourism minister

RIYADH: Hilton plans to increase the number of its hotels in Saudi Arabia from 15 to 75, the Saudi tourism minister said on Tuesday.

 


Saudi sukuk market sees three special deals worth $13.7m

Saudi sukuk market sees three special deals worth $13.7m
Updated 42 min 18 sec ago

Saudi sukuk market sees three special deals worth $13.7m

Saudi sukuk market sees three special deals worth $13.7m

RIYADH: Three special deals were completed on Tuesday in the Saudi sukuk and bond market, with a total value of SR51.7 million ($13.7 million), Argaam reported.

Special deals are orders executed when a seller and a buyer agree to trade specific securities at a certain price in order to comply with the Saudi Stock Exchange, Tadawul. 

Tadawul reported that controls and the regulations are issued by the relevant Capital Market Authority. 

Also, special deals do not affect the price of the last deal, the highest or lowest price of the instrument, the opening or closing price, the market index or sector indices.