Energy crunch concerns keep oil prices near $84

Energy crunch concerns keep oil prices near $84
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Updated 12 October 2021

Energy crunch concerns keep oil prices near $84

Energy crunch concerns keep oil prices near $84

RIYADH: Oil held near $84 a barrel on Tuesday, within sight of a three-year high, supported by a rebound in global demand that is contributing to energy shortages in big economies such as China.

With demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries and allied producers, collectively known as OPEC+, are sticking to plans to restore output gradually rather than boost supply quickly.

“OPEC+ will push ahead with its cautious approach to supply in the year-end period. Set against this backdrop, oil bears will remain in hibernation mode,” said Stephen Brennock of oil broker PVM.

Brent crude was up 1 cent at $83.66 a barrel by 1325 GMT. On Monday it hit $84.60, its highest since October 2018. US oil fell 50 cents, or 0.6 percent, to $80.02, having hit its highest since late 2014 on Monday at $82.18.

Jeffrey Halley, analyst at brokerage OANDA, said the lack of significant change in prices on Tuesday could be because the market looks overbought based on short-term technical indicators such as the relative strength index.

“It would not surprise me in the least if we saw a sharp sell-off of $5 to $8 a barrel at some stage this week,” he said.

The price of Brent has surged by more than 60 percent this year. As well as OPEC+ supply restraint, the rally has been spurred by record European gas prices, which have encouraged a switch to oil for power generation in some places.

European gas at the Dutch TTF hub on Tuesday stood at a crude oil equivalent of about $169 a barrel, based on the relative value of the same amount of energy from each source, Reuters calculations based on Eikon data showed.

Power prices have surged to record highs in recent weeks, driven by energy shortages in Asia, Europe and the United States. The energy crisis affecting China is expected to last through to the end of the year.

With prices rising, OPEC+ has come under pressure from consumer nations. A US official on Monday said the White House stands by its calls for oil-producing countries to “do more.”


Masdar-Mitrabara collaboration to boost renewable energy market

Masdar-Mitrabara collaboration to boost renewable energy market
Updated 12 sec ago

Masdar-Mitrabara collaboration to boost renewable energy market

Masdar-Mitrabara collaboration to boost renewable energy market

The Indonesian commercial and industrial segment of the renewable energy market is set to benefit from a joint venture between UAE leading renewable energy firm Masdar and domestic energy group Mitrabara.

The collaboration is to run under Solar Radiance, which builds and maintains high-efficiency commercial solar solutions and utility solar projects.

The aim is to boost the availability of green sources and renewable energy solutions in the country in order to meet carbon footprint reduction goals.

“We believe that Solar Radiance will be able to accelerate the implementation of solar power solutions in Indonesia, especially since it is an abundant resource that is still underutilized,” a statement said, citing Khoirudin, Chief Executive Officer of Mitrabara.

The collaboration also aims to propel energy diversification attempts in the country and tackle climate action in the pursuit of net zero goals.

This comes as both the UAE and Indonesia share similar energy diversification, climate action, and sustainable future objectives.

It also aligns with Indonesia’s objective of generating at least 51 percent of power capacity from green sources by 2030.

 


UAE restructures board of directors for its Securities and Commodities Authority

UAE restructures board of directors for its Securities and Commodities Authority
Image: Shutterstock
Updated 16 min 5 sec ago

UAE restructures board of directors for its Securities and Commodities Authority

UAE restructures board of directors for its Securities and Commodities Authority

RIYADH: The UAE’s cabinet announced a restructuring of the board of directors of Securities and Commodities Authority as it moves ahead with reforms to position the country as a leader on the global financial stage.

The board members affected include Ali M. Al-Rumaithi, Abdullah A. Al-Khatib, and Faisal Y. Solitin, as their positions will last for 3 years, the albayan newspaper reported.

Under the restructuring and as per SCA's duties, the board members will work to strengthen and develop the legislative and administrative system for the financial markets in the country.

However, their remit extends further to also encompass a focus on supporting the supervisory and regulatory systems to set UAE as a global leader in this field.

The restructuring is conducted under the supervision of Deputy Chairman of SCA, Muhammad A. Al-Hammadi, UAE Government Media Office announced. 

Established in 2002 following federal decree No.4, the Abu Dhabi-based SCA is a legal entity aiming to supervise and monitor the markets. 


Saudi TASI rallies for a tenth day as investors eye earnings: Closing bell

Saudi TASI rallies for a tenth day as investors eye earnings: Closing bell
Updated 29 min 23 sec ago

Saudi TASI rallies for a tenth day as investors eye earnings: Closing bell

Saudi TASI rallies for a tenth day as investors eye earnings: Closing bell

RIYADH: Saudi Arabia’s main stock index closed higher on Thursday, holding onto strong gains from the past nine sessions, as investor sentiment rose with the start of the earnings season.

TASI gained 0.3 percent to reach 12,291 points, reversing losses from earlier today, while the parallel market Nomu slipped 0.3 percent to close at 26,071 points.

Saudi oil giant Aramco recouped morning losses to end 0.4 percent higher. The Kingdom’s largest lender, the Saudi National Bank, edged down by 0.13 percent.

The Gulf’s leading miner Saudi Arabian Mining Co., or Ma’aden, closed at its highest value since listing of SR93.7 ($25).

Al Moammar Information Systems Co., MIS, saw a 0.3 percent increase in its share price.

Earlier, MIS announced the launch of a system to provide cloud management solutions in Saudi Arabia, following a deal with BMC Software.

Nama Chemicals Co. topped the gainers, surging 5.9 percent to SR41.5.

Shares in Yanbu National Petrochemical Co., known as Yansab, led the losses, down 2.6 percent despite posting a 126-percent jump in net profit in 2021.

In energy trading, Brent crude reached $88 per barrel, and US WTI crude oil neared $87 per barrel as of 3:34 p.m. Saudi time.


Saudi oil exports and production continue to rise, highest since April 2020: JODI

Saudi oil exports and production continue to rise, highest since April 2020: JODI
Updated 8 min 52 sec ago

Saudi oil exports and production continue to rise, highest since April 2020: JODI

Saudi oil exports and production continue to rise, highest since April 2020: JODI

Saud Arabia's crude oil exports and production went up again in November to reach their highest levels since April 2020, according to the Joint Organisations Data Initiative.

Saudi crude oil exports grew by 116,000 barrels per day in November to 6.95 million barrels per day.

This corresponded to a monthly 1.7 percent increase from 6.83 million bpd in October, JODI revealed in its latest report.

In annual terms, outgoing oil shipments were up by 9.4 percent.

Additionally, crude oil production grew by 132,000 bpd in November to 9.91 million bpd. Crude output rose by 1.3 percent from 9.78 million bpd in October.

This was accompanied by a 10.5 percent yearly growth.

Moreover, crude closing stocks decreased by 4.43 million barrels from October to 132.4 million barrels in November, the lowest ever level on record. Crude stocks also fell by 11.1 million barrels, or 7.7 percent, from November 2020.

Refinery intake increased by 161,000 bpd, or 6.2 percent, from a month earlier to 2.77 million bpd in November.

The direct use of crude oil, which measures oil usage for generating electricity, went up by 3.4 percent to 0.339 million bpd. This followed the steep 40 percent decline experienced in the prior month.

Saudi oil refinery output grew by 0.47 million bpd in November from the same month a year ago to 2.84 million bpd. This translates to a growth rate of 19.6 percent year-on-year. 

Over the same period, exports of refined products grew by 0.49 million bpd, or 45.4 percent, to 1.56 million bpd. This indicates that the bulk of the increase in output was shipped outside the country.

 


Russian central bank proposes banning cryptocurrencies, crypto mining

Russian central bank proposes banning cryptocurrencies, crypto mining
Image: Shutterstock
Updated 20 January 2022

Russian central bank proposes banning cryptocurrencies, crypto mining

Russian central bank proposes banning cryptocurrencies, crypto mining
  • Russians are active cryptocurrency users, the central bank said, with an annual transaction volume of about $5 billion

Russia's central bank on Thursday proposed banning the use and mining of cryptocurrencies on Russian territory, citing threats to financial stability, citizens' wellbeing and its monetary policy sovereignty.


Russia has argued for years against cryptocurrencies, saying they could be used in money laundering or to finance terrorism.

It eventually gave them legal status in 2020 but banned their use as a means of payment.


In December, the price of bitcoin fell after Reuters reported, citing sources, that Russia's regulator was in favour of a complete ban on cryptocurrencies.


In a report published on Thursday, the central bank said speculative demand primarily determined cryptocurrencies' rapid growth and that they carried characteristics of a financial pyramid, warning that bubbles in the market could form, threatening financial stability and citizens.


The bank proposed preventing financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for fiat, or traditional currencies. The proposed ban includes crypto exchanges.


Russians are active cryptocurrency users, the central bank said, with an annual transaction volume of about $5 billion.


Russia is the world's third-largest player in bitcoin mining, behind the United States and Kazakhstan, though the latter may see a miner exodus over fears of tightening regulation following unrest earlier this month.


The central bank said crypto mining created problems for energy consumption.

Bitcoin and other cryptocurrencies are "mined" by powerful computers that compete against others hooked up to a global network to solve complex mathematical puzzles.

The process guzzles electricity and is often powered by fossil fuels.


"The best solution is to introduce a ban on cryptocurrency mining in Russia," the bank said.