Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks

Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks
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Updated 29 November 2021

Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks

Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks
  • Oil rebounded by almost 5 percent on Monday to $76 a barrel

Morgan Stanley on Monday cut its first-quarter 2022 Brent crude price forecast to $82.50 per barrel from $95 on market expectations that the Omicron coronavirus variant could turn into a major headwind for oil demand.


The market appears to be pricing in the possibility that the new variant could prompt restrictions and cut oil demand, amid expectations of oversupply driven by planned release from the Strategic Petroleum Reserve adding to monthly output from the Organization of the Petroleum Exporting Countries and allies, the bank said in a note.


Oil rebounded by almost 5 percent on Monday to $76 a barrel as some investors viewed Friday's more than 10 percent slump in oil on concern about the Omicron coronavirus variant as overdone.


But while the beginning of next year could see excess supply, spare oil capacity was likely to be eroded by the end of 2022 as inventories draw down further from already low levels.


OPEC+ may not increase supply by 400,000 barrels per day (bpd) since the group does not have the capacity to do so, nor the incentive to oversupply the market, the bank said, adding the market was expected to be more under-supplied in 2022 than the International Energy Agency has suggested.


"Brent prices rising above recent highs again is probably something from mid 2022 and beyond," the bank said, while raising its third quarter Brent outlook to $90 a barrel from $85.


The market could see a supply deficit in 2023 that would deepen further, it added. 


TASI rises as investors await earnings, assess rising inflation: Closing bell

TASI rises as investors await earnings, assess rising inflation: Closing bell
Updated 15 sec ago

TASI rises as investors await earnings, assess rising inflation: Closing bell

TASI rises as investors await earnings, assess rising inflation: Closing bell

RIYADH: Saudi stocks ended Monday’s session higher, as investors awaited more earnings reports while trying to assess the impact of rising inflation.

The Tadawul All Share Index edged up 0.23 percent to finish at 12,543, while the parallel market, Nomu, gained 0.31 percent to end at 22,110.

Wafrah for Industry and Development Co. soared 5.09 percent, after the company swung to a profit of SR11 million ($2.92 million) during the first half of 2022.

Arabian Internet and Telecommunication Co., known as solutions by stc, increased 1.55 percent, following the Saudi competition authority’s approval of Egypt’s Giza Systems’ acquisition.

Saudi Tadawul Group Holding Co. added 0.75 percent, despite the announcement of a 23 percent decline in profits during the first half of the year to SR278 million.

Saudi Aramco closed flat, after it achieved its highest quarterly profit since going public in 2019 with SR182 billion ($48.4 billion), a 90 percent jump over analysts’ expectations.

Saudi jeweler L’azurde fell 2.15 percent, despite reporting a 22 percent profit rise in the first half of 2022 to SR22.2 million

Basic Chemical Industries Co. lost 2.19 percent, despite achieving a 63 percent profit increase to SR46 million for the first half.

Red Sea International Co. declined 0.14 percent to lead the gainers, after the real estate firm announced that its accumulated losses have been cut to zero, following a reduction in the company’s capital by SR298 million.

Saudi Printing and Packaging Co. fell 2.25 percent, after the company narrowed its losses by 91.8 percent to SR2 million during the first half.

Arabian Shield Cooperative Insurance Co. slipped 0.64 percent, after posting a 30 percent profit decline to SR16 million for the first half.


Increasing demand for NEOM project fuels recovery of Tabuk Cement: CEO

Increasing demand for NEOM project fuels recovery of Tabuk Cement: CEO
Updated 10 min 54 sec ago

Increasing demand for NEOM project fuels recovery of Tabuk Cement: CEO

Increasing demand for NEOM project fuels recovery of Tabuk Cement: CEO

RIYADH: Increasing cement demand from Giga projects such as NEOM has helped Tabuk Cement swing into profit in the second quarter of 2022 despite a trend of the dismal performance of the Kingdom's cement sector.

The strategic location of Tabuk Cement made it a reliable supplier for the NEOM project, which in turn benefited the company, the firm’s CEO told Al-Arabiya.

Tabuk Cement is set to thrive, thanks to high demand from Saudi’s Red Sea, Amaala, and NEOM projects, which will boost the cement industry, Ali Al-Qahtani said.

The cement producer swung to a profit of SR2.5 million ($665,712) during the second quarter of the year, compared with a loss of SR1.13 million in the same period last year. Revenues jumped 51 percent during the period.


Saudi-based Nama Ventures leads a seed funding round for Bahraini startup Faceki

Saudi-based Nama Ventures leads a seed funding round for Bahraini startup Faceki
Updated 15 August 2022

Saudi-based Nama Ventures leads a seed funding round for Bahraini startup Faceki

Saudi-based Nama Ventures leads a seed funding round for Bahraini startup Faceki

RIYADH: Saudi-based venture capital firm, Nama Ventures, led a seed funding round for an undisclosed amount for Bahrain-based award-winning fraud protection and identity verification platform, Faceki.

“We plan to expand our global footprint, and continue innovating and provide compliant, secure, and user-friendly identity verification solutions,” Hamza Al-Ghatam, co-founder and CEO of Faceki, said in a statement.

The round also saw participation from venture capital firm Vision Ventures along with other angel investors.

Founded in 2020, the platform uses cloud biometrics and digital identity verification solutions powered by machine learning to serve its customer base in over 175 countries. 


Egypt In-focus: Unemployment rate remains unchanged in Q2, Saudi firm signs MoU with Egyptian online grocery store

Egypt In-focus: Unemployment rate remains unchanged in Q2, Saudi firm signs MoU with Egyptian online grocery store
Updated 15 August 2022

Egypt In-focus: Unemployment rate remains unchanged in Q2, Saudi firm signs MoU with Egyptian online grocery store

Egypt In-focus: Unemployment rate remains unchanged in Q2, Saudi firm signs MoU with Egyptian online grocery store

CAIRO: The unemployment rate in the North African country remained unchanged at 7.2 percent in the second quarter of 2022, according to a report from the Central Agency of Public Mobilization and Statistics.

The Egyptian labor force grew to 29.99 million from 29.89 million in the previous quarter, where the employment figures increased from 27.75 million to 27.83 million. 

The unemployment level also slightly increased from 2.15 million in the first quarter of 2022 to 2.15 million in the second quarter of 2022.  

New ministers take charge

On Aug. 13, 13 new ministers took oath including Ahmed Issa, the new minister of tourism and antiquities.

Ahmed Issa brings years of banking experience to the table as the former CEO of retail banking at Commercial International Bank.

Apetito and Purity sign MOU

Saudi-based Purity has signed a memorandum of understanding with Apetito— an Egyptian online grocery store operating in Egypt, Tunisia, and Morocco — to help expand its services in Saudi Arabia and the Middle East and North Africa region.

Purity is known for its expertise in IT infrastructure and app development; therefore, it would serve Apetitio in achieving its $25 million investment goal.

Moreover, Purity CEO Abdullah Al-Namlah will become part of Appetito’s board of directors, reported Daily News Egypt.

“We are very pleased with this partnership with Purity, which is a regional leader in IT and investments,” stated Apetito CEO Shehab Mokhtar.

 “We aim to massively expand our operations in Saudi Arabia, as well as prospective presence across neighboring markets,” he added.

BONBELL closes $350K deal

BONBELL— a foodtech startup founded in Egypt in 2022— has secured a $350,000 investment from a Canadian angel investor.

 The startup provides an online platform for food orders and deliveries with its restaurant partners, in addition to providing in-app table reservations.

 This new investment will be used to increase its partnership with other restaurants,  aiming at 750 restaurants by the end of this year.

Moreover, BONBELL is targeting another $10 million investment with two venture capital funds from Europe and the Gulf, reported WAMDA.

 


Saudi Arabia’s King Abdulaziz Port sets new container throughput record

Saudi Arabia’s King Abdulaziz Port sets new container throughput record
Updated 45 min 34 sec ago

Saudi Arabia’s King Abdulaziz Port sets new container throughput record

Saudi Arabia’s King Abdulaziz Port sets new container throughput record

RIYADH: Saudi Arabia’s King Abdulaziz Port has set a new container throughput record by handling 188,578 TEUs during June 2022, surpassing the previous record of 867 TEUs set in 2015, said Saudi Ports Authority, also known as Mawani in a statement. 

The record-breaking performance of the port is attributed to the rise in export and import volumes, as the Kingdom moves in line with the National Transport and Logistics Strategy aimed at turning Saudi Arabia into a global logistics hub.

 “The port’s strategic location on the Arabian Gulf lends it a distinct status as a trade gateway to the Kingdom’s eastern and central regions, which provides investors interested in setting up integrated logistics facilities that offer value-added services a competitive edge like no other,” said Mawani in the statement. 

In 2021, the port had re-engineered its transshipment handling processes, along with launching new transhipment services to connect with ports in the Gulf Cooperation Council countries and East Asia. 

The statement noted that these initiatives brought about a 142.72 percent growth in transshipments compared to the previous year. 

Mawani is currently working on upgrading the 19 sq. km. port to make it capable of receiving giant vessels and handling up to 105 million tons annually.