Oil Updates – prices ease on fears of higher output, sluggish demand

Oil Updates – prices ease on fears of higher output, sluggish demand
Brent crude futures fell 35 cents, or 0.5 percent, to $71.93 a barrel by 7:00 a.m. Saudi time. Shutterstock
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Oil Updates – prices ease on fears of higher output, sluggish demand

Oil Updates – prices ease on fears of higher output, sluggish demand

LONDON: Oil prices slipped in early trade on Thursday, reversing most of the previous session’s gains, weighed down by worries of higher global production amid slow demand growth, with a firmer dollar exacerbating the declines.

Brent crude futures fell 35 cents, or 0.5 percent, to $71.93 a barrel by 7:00 a.m. Saudi time. US West Texas Intermediate crude futures declined 42 cents, or 0.6 percent, to $68.01.

“Oil is tackling the (earlier) weaker demand forecast narrative by OPEC, who deferred rolling back additional production for yet another month, fearing the adverse effect on prices,” said Phillip Nova’s senior market analyst Priyanka Sachdeva in an email.

On Tuesday, OPEC cut its global oil demand growth forecast to 1.82 million bpd in 2024, down from 1.93 million bpd forecast last month, on weak demand in China, India and other regions, sending oil prices to their lowest in nearly two weeks.

Meanwhile, the US Energy Information Administration has slightly raised its expectation of US oil output to an average 13.23 million barrels per day this year, or 300,000 bpd higher than last year’s record 12.93 million bpd, and up from 13.22 million bpd forecast earlier.

The agency also raised its global oil output forecast for 2024 to 102.6 million bpd, from its prior forecast of 102.5 million bpd. For next year, it expects world output of 104.7 million bpd, up from 104.5 million bpd previously.

The EIA’s oil demand growth forecasts are weaker than OPEC’s, at about 1 million bpd in 2024, although that is up from its prior forecast of about 900,000 bpd.

Market participants are now waiting for the International Energy Agency’s oil market report, due later in the day, and the EIA’s US crude oil and product stockpile data for further trading cues.

Concerns about China’s demand remains a key contributor to softening prices, analysts say.

“Despite various stimulus measures implemented by Chinese authorities, there has been little to no improvement in economic activity or sentiment within mainland China,” said Phillip Nova’s Sachdeva.

China continues to be the “sore joint” for oil demand and the primary reason why oil markets are bracing for an oversupply in 2025, she added.

Also weighing on prices, the US dollar rose to near a seven-month high against major currencies on Wednesday after data showed US inflation for October increased in line with expectations, suggesting the Federal Reserve will keep cutting rates.

“..the stronger USD is creating strong headwinds for commodities,” ANZ Research said in a note.

A firmer dollar makes commodities priced in the greenback expensive for buyers using other currencies.


Mizuho to launch Saudi ETF with sovereign fund PIF

Mizuho to launch Saudi ETF with sovereign fund PIF
Updated 11 sec ago
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Mizuho to launch Saudi ETF with sovereign fund PIF

Mizuho to launch Saudi ETF with sovereign fund PIF

TOKYO: Japan’s Mizuho Financial Group is partnering with Saudi Arabia’s Public Investment Fund to create a Tokyo-listed exchange-traded fund featuring Saudi shares, providing retail investors easier access to a promising emerging market.

A report from leading Japanese business publication Nikkei says Asset Management One, a joint venture between Mizuho and Dai-ichi Life Holdings, plans to create an ETF this fiscal year, linked to the FTSE Saudi Arabia Index.

The fund will mainly track large, creditworthy stocks such as banks and Saudi Aramco, making it accessible for inexperienced retail investors. The minimum investment is expected to be in the thousands to tens of thousands of yen, putting it under $1,000.

The goal is to attract capital for the fund from a wide range of investors, with PIF and Mizuho Bank as the anchors. Mizuho also will aid PIF’s efforts to raise capital overseas as it aims to strengthen ties with the Saudi finance sector. The Japanese bank will use its fundraising expertise to coach personnel from the sovereign wealth fund, as well as provide support for the country’s transition away from oil.

In April, PIF announced a partnership with BlackRock, the world’s largest asset manager, under which the fund will contribute up to $5 billion to an investment platform that aims to draw money for domestic and overseas investment. Mizuho is the first Japanese private-sector financial institution to partner with PIF.

Nikkei describes Saudi Arabia as “increasingly appealing as an investment destination,” noting how the country’s stock market ranked eighth in the world by market capitalization last year.

This article also appears on Arab News Japan


Saudi PIF raises over $1bn with 2% stc stake sale 

Saudi PIF raises over $1bn with 2% stc stake sale 
Updated 24 min 14 sec ago
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Saudi PIF raises over $1bn with 2% stc stake sale 

Saudi PIF raises over $1bn with 2% stc stake sale 

RIYADH: Saudi Arabia’s Public Investment Fund has raised SR3.86 billion ($1.03 billion) through the sale of a 2 percent stake in telecom firm stc. 

The offering, consisting of 100 million shares priced at SR38.6 each, was met with strong demand from both local and international institutional investors, according to a statement. 

The transaction represents the largest accelerated bookbuild offering ever conducted in Saudi Arabia and the broader Middle East and North Africa region, underscoring robust investor appetite for exposure to the region’s telecom sector and strategic assets managed by PIF. 

“PIF reiterates the strategic importance of its ownership in stc and its diverse partnerships with the company through a number of PIF portfolio companies,” the statement said.  

“PIF looks forward to supporting stc’s leading role in shaping the future of the ICT sector in Saudi Arabia, one of its priority sectors,” it added.  

Following the sale, PIF retains a 62 percent ownership in stc, equivalent to 3.1 billion shares.  

The sale aligns with PIF’s broader strategy to recycle capital into emerging sectors within the local economy, as the fund moves toward its vision of becoming a global investment powerhouse.  

Currently managing around $925 billion in assets, PIF aims to drive economic transformation in Saudi Arabia and influence global markets. 

In a disclosure on the Saudi Exchange on Wednesday, it was noted that Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF in the transaction. The was to be executed as off-market negotiated deals on Nov. 14, under the Negotiated Deals Framework set by the Saudi Exchange. 

PIF has actively invested in both public and private sectors since its re-launch in 2017, establishing 99 companies and supporting a shift towards a sustainable economy.  

This approach positions Saudi Arabia as an emerging leader in economic and social transformation, providing avenues for both local and global stakeholders to engage in the Kingdom’s evolution. 

With this latest transaction, PIF continues to underscore its dual objectives of capital growth and strategic reinvestment, supporting both economic diversification in Saudi Arabia and the fund's role as a catalyst for sustainable global investment. 


Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE
Updated 14 November 2024
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Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE
  • Dogecoin got a bump after US President-elect Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE

NEW YORK: Wow, much bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been racing higher in value since Donald Trump won the presidential election last week. It got another bump after Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.
All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here’s some explanation about what’s going on:
What is dogecoin?
It’s a cryptocurrency, whose value rises and falls against the US dollar based on however much people will pay for it.
At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the Internet without having to worry about a central bank or government affecting how many are in circulation.
How much has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It’s since more than doubled to nearly 38 cents, as of Wednesday afternoon, according to CoinDesk. It briefly got above 43 cents earlier Wednesday.
Why is it climbing so much?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is the most famous digital currency, has set an all-time high above $93,000 after starting the year below $43,000.
Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk have to do with any of this?
Musk has become one of Trump’s close allies. He’s also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”
In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.
It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”
It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.
This all sounds weird.
Dogecoin’s history is interesting.
In 2021, on April 20, dogecoin fans tried but failed to get its value above $1 on what they were calling “Doge Day.”
April 20 has long been an unofficial holiday for marijuana devotees, and Musk himself has referred to 420 several times in his career, including his tweet in 2018 saying he had secured funding to take Tesla private at a price of $420 per share.
Is the Shiba Inu whose picture is in the meme getting special treats because of all this?
Sadly, no. The dog, whose real name was Kabosu, passed away in Japan earlier this year at 18 years old. Much rest, may she have.


Number of active mining licenses in Saudi Arabia reaches 2,295

Number of active mining licenses in Saudi Arabia reaches 2,295
Updated 14 November 2024
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Number of active mining licenses in Saudi Arabia reaches 2,295

Number of active mining licenses in Saudi Arabia reaches 2,295
  • The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 35 new mining licenses in September, the Saudi Press Agency reported on Wednesday citing the National Center for Industrial and Mining Information.

These permits included 24 exploration licenses, seven quarry licenses for building materials, three reconnaissance licenses, and 1 mining exploitation and small mine license.

Official spokesperson for the ministry, Jaraah bin Mohammed Al-Jaraah, explained that by the end of September 2024, the total number of active mining licenses in the sector had reached 2,295. The majority of these licenses are quarry licenses for building materials, with 1,461 issued, followed by 566 exploration licenses, 203 mining exploitation and small mine licenses, 42 prospecting licenses, and 23 surplus mineral resource licenses.

Al-Jaraah emphasized that the Ministry of Industry and Mineral Resources is focused on protecting and enhancing the value of the mining sector in alignment with Saudi Arabia’s Vision 2030. The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion.


Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market
Updated 13 November 2024
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Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

RIYADH: Saudi Arabia’s Capital Market Authority has approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

These changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

“By facilitating the listing requirements for debt instrument, we are increasing the attractiveness of the local debt capital market to drive increased participation from issuers and investors,” Mohammed Al-Rumaih, CEO of the Saudi Exchange, said.

The amendments to the listing rules of debt instruments mark a significant milestone in the continued development of Saudi Arabia’s debt capital market, further reinforcing our commitment to building a globally competitive and sophisticated debt capital market.”

The reforms aim to strengthen Saudi Arabia’s regulatory framework for debt instruments, creating a more dynamic and accessible market. Notably, the amendments allow the Kingdom’s development funds, sovereign wealth funds, and development banks to issue debt instruments through exempt offerings, subject to specific conditions.

This flexibility will enable these institutions to better align their financing strategies with Saudi Arabia’s broader development goals.

“As we move forward, the Saudi Exchange remains focused on providing a robust platform for debt financing that supports the Kingdom’s Vision 2030 ambitions, specifically the Financial Sector Development Program aspirations in deepening the debt capital market,” Al-Rumaih said.

The new regulations also simplify the documentation process for public offerings, reducing prospectus requirements by more than 50 percent.

A dedicated section for public offerings will improve regulatory clarity, ensuring that all material information is disclosed to investors while maintaining investor protection.

In addition to easing public offering requirements, the changes introduce more flexibility for private offerings. The CMA has eliminated the prior requirement for advance notification before launching an offering.

Issuers can now notify the CMA and immediately proceed with their offerings, a change that is expected to expedite the financing process and improve efficiency.

These regulatory enhancements are part of Saudi Arabia’s broader efforts to develop its sukuk and debt markets as a crucial funding channel for businesses.

By improving access to financing, the reforms are expected to drive greater economic growth and help position the sukuk and debt markets as central components of the Kingdom’s financial ecosystem.

The reforms align with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the economy and enhance the capital markets. They also reflect the CMA’s ongoing commitment to improving market transparency, protecting investors, and increasing market participation.

In parallel, the CMA recently invited public feedback on amendments to the investment funds regulations, which are also part of efforts to refine the framework for private and foreign investment funds, particularly in retail markets. These changes aim to better protect retail investors, addressing risks that emerged from a 2021 regulation allowing individual retail investments up to SR200,000 ($53,245).

The consultation period for these proposed changes will run for 30 calendar days.

With these far-reaching regulatory reforms, Saudi Arabia is poised to further strengthen its sukuk and debt markets, positioning them as key drivers of economic growth and investment. The CMA’s efforts to enhance transparency and investor protection are expected to boost both domestic and international confidence in the Kingdom’s financial markets.