Latest News
-
Carlyle is in talks with potential UAE partners about Lukoil assets.
Three sources familiar with the process have confirmed that U.S. Private Equity firm Carlyle is in exploratory "talks" with UAE investors, to find partners if its initial agreement to purchase Russian firm Lukoil’s international assets proceeds. Carlyle and Lukoil announced on Thursday a preliminary agreement that would transfer assets, including oilfields and refineries located in eastern Europe and Iraq to the U.S. company. A separate source told us on Thursday that neither company had disclosed an estimate for the deal. This excludes Lukoil’s Kazakh assets. Three sources said that state-controlled Abu Dhabi investor Mubadala and XRG had talked to Carlyle about taking stakes on the Lukoil Portfolio if 'the U.S. company completes the acquisition, but no deal has been reached. Four sources said that the assets are valued at around $20 billion. Five sources said that UAE investors were interested in Lukoil’s trading arm Litasco. Carlyle has not yet indicated when it might be bringing in partners, if the deal proceeds. One source said that the U.S. company intends to maintain the portfolio. Private equity buyers typically hold assets in the energy industry for five years before trying to sell them?at profit. Lukoil Mubadala XRG have not responded to our requests for comment. Carlyle declined comment. IHC stated that it would make any necessary announcements in accordance with "applicable market requirements and regulations" and in accordance to any required timeframe. Carlyle stated on Thursday that it needed to finish due diligence on Lukoil's assets. The deal will be structured according to the rules of?the Office of Foreign Assets Control, the U.S. sanction authority. Lukoil said that it is still in discussions with potential buyers. OFAC's website states that any cash proceeds from a sale must be "placed into an account under U.S. law, with funds being frozen until sanctions against Lukoil have been lifted." The U.S. Treasury gave Lukoil a deadline of February 28 for selling its global portfolio. This has attracted interest from multiple potential bidders. (Reporting from Shadia Nasralla and Anna Hirtenstein. Shariq Khan and Andres Gonzalez contributed additional reporting. Alex Lawler, Simon Webb, Mark Potter and Alex Lawler edited the article.
-
Saudi economy grows 4.9% in the fourth quarter, as the oil sector drives growth
According to government estimates, Saudi Arabia's fourth-quarter economy grew by 4.9% on an annual basis, thanks in part to strong growth in nonoil activities, and increased oil production. The oil sector grew 10.4% in the last quarter of 2008 as production increased in the second half of the year. Non-oil activity grew by around 4% compared to the previous year. The preliminary estimates of the Statistics Agency show that the real GDP will grow by 4.5% for the full year 2025. Oil activities are expected to increase by 5.6% and non-oil activities by 4.9%. Saudi Arabia, which is the top oil exporter in the world and a member of OPEC+, a group of nations that includes Russia, began easing its oil production curbs in April. As part of a recalibration?of priorities, the kingdom has also advanced to its third phase of economic transformation, Vision 2030. This phase emphasizes implementation of ambitious strategies and projects to expand the non-oil sector, such as tourism, AI, and manufacturing. In order to re-calibrate its priorities, the kingdom is shifting from spending heavily on futuristic projects like NEOM's The Line to more urgent and profitable initiatives, taking into consideration mounting?fiscal concerns. In a recent?note, Daniel Richards, senior economic advisor at Emirates NBD said that there are concerns about how long Saudi Arabia can maintain its current pace of growth as it reviews its spending priorities. In the short term, however we do not believe that Saudi Arabia's massive spending plans will be enough to sustain robust growth. The government forecasts growth of 4.6% by 2026. Reporting by Rachna uppal, Editing by Kirby Donovan
-
Silver rout causes a massive sell-off of stocks
Global shares dropped on Monday as investors rushed to sell precious metals to offset any losses. This was just before a week filled with corporate earnings and central bank meetings, along with major economic data. Silver is on track to suffer its worst two-day loss since the 1980s. It fell another 7%, adding to Friday's 30 percent drop. Dealers say that pressure on several?silver?futures funds from China contributed to the crash late last week. The CME raised margins for a variety of futures contracts including silver and gold on Monday. The oil prices fell by more than 4% after President Donald Trump announced that Iran had been "seriously" talking with Washington over the weekend, possibly reducing the risk of an American military strike. European shares fell 0.5% ahead of the week when around 30% of STOXX600 constituents will report earnings. Wall Street futures also dropped around 1%. The dollar's rise on Friday was a result of Trump naming Kevin Warsh, who many view as less friendly to ultra-loose monetary policies. This dented Wall Street stocks and compounded a fall in silver prices that had already begun. Silver frenzy The price of silver had more than doubled over the past six weeks, reaching a record high of $121.64 per ounce in January 29. This unprecedented rally was fuelled by investors' appetite for non-dollar investments, and retail traders' enthusiasm for high returns. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that there has been a huge retail frenzy in these markets. We've seen record turnovers in the options markets relating to silver products. Hansen said that those who sell options which give the buyer the right to purchase silver, would have to hold a position in silver themselves. He said that when the market turns around, it is important to exit the position quickly because the original reason for the investment has vanished. Gold spot, which also reached a record of $5,594.82 per ounce in the previous week, is down 5%. The Chinese commodities market has been under pressure, as trading in silver futures was suspended due to the extreme volatility. MSCI's broadest Asia-Pacific share index outside Japan dropped nearly 3% as a result of the knock-on effects. Japan's Nikkei also fell 1.3% in advance of Sunday's lower-house election. The VIX volatility index spiked again, indicating that the stock market was already tense ahead of this week's earnings from Alphabet, Amazon, and AMD. Investors are waiting to see if billions invested in artificial intelligence will begin to pay off. DOLLAR STEADIES as YEN SLIPS The dollar was steady, up 0.1% versus the yen, at 155.00. Meanwhile, the euro made a slight move into the positive, moving to $1.185 and recouping some of the Friday's 1 % drop. Following Trump's announcement that?former Federal Reserve Governor Kevin Warsh would be the next chairman of the central banks, the dollar rose by the most since May last year. Many believe that Warsh will not push for more rate cuts than his rivals, but he recently stated that he thinks a 'looser monetary policies may be needed, which is in line with Trump's belief that borrowing costs must drop quickly. Ray Attrill is the head of FX Strategy at NAB. He said that Trump is unlikely to have nominated Warsh, if he did not support lower interest rates. There is also plenty of evidence Warsh thinks the economy is capable of higher non-inflationary rates of growth. The Fed is expected to cut rates twice this year. However, the January non-farm payroll report on Friday could alter that if it comes in above or below forecasts. On Thursday, the European Central Bank will meet with the Bank of England. However, neither bank is expected to change its monetary policy. This week, the Reserve Bank of Australia could also raise interest rates. Brent crude fell 4.7% to $66 per barrel as the threat of a military attack on Iran, a major oil exporter, waned. (Reporting and editing by Stephen Coates, Emelia Sithole Matarrise and Wayne Cole)
-
Nigeria's Dangote Refinery extends gas agreements with NNPC in order to secure fuel for expansion programs
Three Dangote Group subsidiary companies announced on Monday that they have bolstered 'gas supply contracts' with NNPC units to support expansion plans. This is in line with a shift by Nigeria towards cleaner energy and industrial development. Dangote Petroleum Refinery and Dangote Fertiliser plant, as well as Dangote Cement Plc announced on Monday that contracts had been signed with NNPC Gas Infrastructure Company and Nigerian Gas?Master Plan?Limited at the Nigeria Gas 'Master Plan 2026 event in Abuja. The companies did not reveal the contracted volumes. Nigeria launched its master plan for the 'gas sector' on Friday. It aims to fix the?gas industry by improving the supply, attracting investments, and making gas a major driver of economic development. The plan aims to increase the national production to 10 billion cubic foot per day (bcf/d), from 8 bcf/d at present, and 12?bcf/d in 2030. It also attracts more than 60 billion dollars of investments along the entire gas value chain. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), said that the plan moves from policy formulation to implementation. He emphasized that Nigeria's biggest challenge is in converting its oil reserves into "reliable supply" and "economic value". Bashir Bayo 'Ojulari, CEO of NNPC Ltd Group, said that the plan aims at boosting national gas production and attracting new investment. It also aims at strengthening supply for users. (Reporting and editing by Bernadette B. Baum; Isaac Anyaogu)
-
MIDEAST STOCKS- Major Gulf bourses rise on signs of deescalation between US & Iran
The major stock markets in the Gulf region rose on Monday morning after a?U.S. Donald Trump stated that Iran is "seriously" talking with Washington. This comment signals a?potential de-escalation of tensions. Esmaeil baghaei, spokesperson for the Foreign Ministry, said that Iran was reviewing the details of diplomatic channels to ease tensions with the United States. Baghaei added that Tehran hopes?for progress over the next few days. Trump said last week that Iran "seriously talks" with Washington, despite the U.S. Navy's buildup in close proximity to Iran. Trump's remarks came hours after Iran’s?top official for security, Ali Larijani wrote on X that preparations were in progress. Saudi Arabia's benchmark index of stocks rose by 0.2% a day after it fell the most since nearly 10 months. Shares in Saudi Arabian Mining Company gained 2.9%. Saudi Aramco, the oil giant, was up 0.2%. Dubai's main stock index rose 1.3% led by a 3.0% jump in blue-chip developer Emaar Properties. In Abu Dhabi the index increased by 0.2%. Iran's leadership warned on Sunday of a possible regional conflict if the U.S. attacked it. It also designated the armed forces of the European Union as "terrorists" as a form of retaliation after the EU had designated the Revolutionary Guards in Iran as a terrorist organization. Qatar National Bank, the Gulf's largest lender in terms of assets, rose 0.7%.
-
Copper drops from record highs as investors switch to risk-off positions
The price of copper fell on Monday, as investors entered a risk-off mood after Kevin Warsh's nomination to the position of?Federal Reserve Chair. Demand for the metal also dipped in the run-up to China’s Lunar New Year holiday. The Shanghai Futures Exchange's most active?copper? contract hit the lower price limits, falling 9% and closing daytime trading at $14,183.56 a metric tonne, the lowest level since January 9. On Monday, three other SHFE metals - aluminium, tin and nickel - also hit the lower price limit. Shanghai aluminium fell 9%, closing at 23,035 Yuan per ton. Nickel and tin, both down 11%, closed at 129.650 Yuan and 392,650 Yuan respectively. As of?0700 GMT, the benchmark three-month price for copper at the London Metal Exchange fell 4.86%. It was now $12,518 per ton. The price of copper is falling after hitting record highs in both Shanghai and London on Thursday. It reached 114,160 Yuan in Shanghai, and $14,527.50, fueled by speculative purchases. The drop is part of "a wider selloff in metals" led by gold and Silver as investors unwind record-setting speculative rallies after U.S. president Donald Trump nominated Kevin Warsh, a former Fed Governor seen as more likely to push for aggressive rate reductions. Gold spot dropped to $4,500 an ounce after setting a record at $5,600 per ounce on Thursday. After Warsh's nomination, the U.S. Dollar steadied and consolidated gains. The dollar's strength makes commodities priced in greenbacks less affordable to investors who use other currencies. Copper was also under pressure, along with other industrial metals. Demand prospects were weakened as the lead-up to China's 9-day Lunar New Year holidays began on February 15, and the previous high prices dampened consumption. Yangshan Copper Premium After a drop in copper prices, the'measure of Chinese consumers appetite for imported materials' rose to $27 per ton, but is still low when compared to above $40 at the beginning of January. Zinc fell 6.86% on SHFE and lead dropped by 2.31%. Aluminium fell 4.58% on the LME, while zinc dropped 3.84%, and lead fell 2.41%. Nickel also lost 7.26%, and tin declined 9.92%.
-
Qatar Wealth Fund plans to invest into five new VC funds
Qatar Investment Authority (QIA), the sovereign wealth fund, announced on Monday that it plans to invest $3 billion in a new venture capital program. In a press release, the new funds, called?Greycroft Ion Pacific Liberty City Ventures Shorooq Speedinvest are set to open Doha offices as part of an effort to establish Qatar as a hub for venture capital, according to the statement. The "Fund of Funds", an initiative launched in 2024, aims to attract venture capital companies to Qatar. It also aims to create a 'robust environment' for entrepreneurs, and diversify the economy away from fossil-fuel revenues. Qatar's Prime Minister announced on Sunday that the fund would be expanded to up to $3 billion. "This year we are moving from momentum to scale," said Sheikh Mohammed bin Abdulrahman Al Thani, as he opened Qatar's edition of the Web Summit Technology Conference. The expansion could potentially target other investments than series A and B funding rounds. Mohsin pirzada is the head of funds for QIA. In an interview, he said: "We're now expanding our scope to do subsequent rounds. That may open conversations with a new set of managers." He said that there were enough credit lending facilities in the country to pursue these opportunities. Global SWF, an independent tracker of sovereign wealth funds, reports that the QIA has assets worth $580 billion under management. Late last year, it launched Qai, its AI-focused subsidiary, as it bets big on this booming industry to drive economic diversity. The country launched a pilot program to provide free computing for Doha-based startups. This could also be applied to managers who are part of the Fund of Funds Scheme. Pirzada stated that the pilot program will be a "big differentiator" in comparison to other programs in the region. Reporting by Andrew Mills; Writing by Federico Maccioni, Tala Ramadan and Thomas Derpinghaus; Editing by Himani Sarkkar and Thomas Derpinghaus
-
China steel mills restock after a rise in stocks, iron ore prices fall
Iron ore futures fell on Monday, as Chinese inventories rose and steel mills finished restocking. Meanwhile, feedstock demand is expected to be sluggish in the run-up to the Lunar New Year. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading down 1.26% at 783 yuan (112.66) per metric ton. As of 0711 GMT, the benchmark March iron ore traded on Singapore Exchange was down 0.95% at $102.8 per ton. According to Steelhome's data released on January 30, iron ore stocks at major Chinese port cities increased by 1.16% in a week. A note from the Shanghai Metals Market stated that around 80% of surveyed?steel?mills had finished restocking and inventories of steel finished products were also accumulating. This indicates that iron ore demand is expected to continue to be weak. The note stated that due to environmental protection regulations, Hebei blast furnaces may reduce hot metal production. A note from Mysteel stated that the end-user demand for products and transactions will be slow in the run up to Chinese Lunar New Year. The note said that the support for steel prices would depend on the speed at which activity could resume after the holiday, and the ability to consume accumulated inventory. An official survey released on Saturday showed that China's factory activity weakened in January due to weak domestic demand. A private sector survey published on Monday showed different results. It claimed that factory activity increased?in January, as export orders recovered and output growth was accelerated. Coking coal and coke, which are both steelmaking ingredients, lost ground on the DCE. They fell by 2.89% and 3.42 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange have declined. Rebar fell 1.56%, while hot-rolled coils dropped 1.24%. Wire rod also lost 7.03%, and stainless steel was down 1.09%. ($1 = 6.9503 Yuan) (Reporting and editing by Eileen Soreng; Ruth Chai)
Analyst Mielke says palm oil and soyoil will rise by $100-$150/ton early in 2026.
Thomas Mielke, a leading industry analyst, said that tightening supply will cause palm oil and soybean oil prices to increase by $100 to 150 per metric tonne between January and 2026.
Mielke, who spoke at the Globoil India Conference, said that both oils would also benefit from an increase in biodiesel production in Brazil, the U.S. and Indonesia.
He said that the global production shortfall will be more pronounced from January to March.
He estimated that the growth in palm oil production, the most popular vegetable oil in the world, is slowing down. Only 1.14 million additional tons are expected to be produced in 2026 compared with the current year.
He said that the Malaysian RBD palm oil prices, which are currently around $1,080 a ton, on a "free-on-board" basis, will rise by more than $150 a ton, if Indonesian government actions to seize palm plants have a negative impact on production.
Agrinas Palma Nusantara is the state-owned palm oil company in Indonesia. It has 1.5 million hectares, which makes it the largest palm oil plantation by area. The company can produce 5.7 million tonnes of crude palm oil per year.
He said that Argentine Soyoil is currently undervalued at around $1,050 a ton FOB and could increase, mainly due to increased biodiesel consumption.
He said that while sunflower oil trades at a premium to rival soyoil in the first quarter of the year, this will disappear by the third quarter, as supplies from Argentina and the Black Sea improve.
He said that imports of sunflower oil in India, China, and other important markets are on the decline. However, this trend will reverse itself once the premium for sunflower oil is removed.
Buyers in India, which is the largest vegetable oil importer in the world, are currently paying a premium of $140 per ton over soyoil.
He said that India's imports of vegetable oil in the 2025/26 year (starting November 1) are expected to increase by 1.5 million tonnes from a previous year. They will reach a record level of 18 million tons. (Reporting and editing by Toby Chopra, Shilpi Majordar, and Rajendra Jadhav)
(source: Reuters)