OPEC+ ministers meet amid tremors from Trump tariffs
Energy ministers from OPEC+ meet today as oil and gas customers around the world gird for the expected fallout from the U.S. trade war taking shape with Canada, Mexico and China.
Oil prices rose today after U.S. President Donald Trump imposed tariffs on the three countries, sparked by fears that the feuds would disrupt supplies. Brent crude futures rose 78 cents, or 1.03%, to $76.45 a barrel at 1:33 p.m. UAE time after touching a high of $77.34. U.S. West Texas Intermediate crude futures were up $1.36, or 1.88%, to $73.89.
The OPEC+ members, led by Saudi Arabia and Russia, will meet online for a monthly review at which they’re expected to leave production and supply plans unchanged through March and gradually lift the current quotas that were designed to keep prices from falling, Reuters reports.
While Trump has urged the petroleum producers bloc to cut prices, several OPEC+ delegates have said they won’t adjust the plan for now since crude markets remain fragile amid faltering demand in China and plentiful supply across the Americas, Bloomberg reports.
Goldman Sachs issued a report on Sunday that suggests the Trump tariffs are likely to have a limited near-term impact on global oil and gas prices.
“Potential tariff-driven decline in U.S. natural gas imports from Canada is too small to significantly raise U.S. natural gas prices,” the investment bank said.
The Daily Circuit: Saudi business conference tallies billions in deals
👋 Hello from the Middle East!
In the Daily Circuit today, we’re looking at Day 3 of the Future Investment Initiative conference in Riyadh, the Saudi Public Investment Fund’s deal with Canada’s Brookfield Asset Managment, ACWA Power’s $690 million financing deal from Kuwait and ADQ’s acquisition of a minority stake in Sotheby’s auction house.
After three days of working the vast marble halls and plush meeting rooms of the Ritz Carlton Hotel in Riyadh, corporate chiefs are shaking hands on billions of dollars in deals arranged at Saudi Arabia’s annual Future Investment conference.
With FII’s outgoing CEO Richard Attias estimating that the conference would spawn some $28 billion in investments, executives from Wall Street, the Gulf, China and elsewhere vied for attention in announcing their latest deals.
Among the most watched tie-ups was the preliminary agreement announced by the Saudi Public Investment Fund to back Brookfield Asset Management’s new $2 billion Middle East fund, boosting the Canadian investment firm’s ability to finance deals in the Gulf.
New York-based Z Capital Group pledged as much as $2 billion for investments in Saudi Arabia, Bloomberg reports. It said the bank will launch a direct lending fund with approximately $1 billion early next year that offers senior secured and asset-backed loans to small and medium-sized businesses.
The National Bank of Kuwait signed $1.6 billion in deals at the FII conference, including a $690 million agreement with ACWA Power to support the Saudi energy and desalination company’s expansion plans in and outside the kingdom, KUNA reports.
Throughout this week, The Circuit’s Jonathan Ferziger and Omnia Al Desoukie have been on the conference floor, bringing you the deals, insights and chatter emanating from FII. We would like to know your thoughts and receive your feedback. You can reach us by replying to this newsletter or emailing us at [email protected].
ACWA Power works to cut desalination costs, fossil fuel use
ACWA Power, the Saudi power and desalination company that operates in more than a dozen countries across the Middle East, Africa and Asia, says it has cut energy consumption by 80% over the past decade while reducing its use of fossil fuels, The Circuit’s Omnia Al Desoukie reports.
With its main offices in Riyadh and Jeddah, ACWA Power started moving away from conventional thermal plants two decades ago to adopt more efficient membrane technology. It devotes formidable resources to research and development to address water scarcity in some of the world’s most arid regions. At the FII conference, the company signed a $690 million financing deal with the National Bank of Kuwait.
In an interview with The Circuit, ACWA Power Executive Vice President for Innovation & New Technology Thomas Altmann talks about the company’s efforts to bring down the cost of desalination while embracing hydrogen and other more sustainable sources of energy.
Public Investment Fund: PIF-owned Riyadh Air, Saudi Arabia’s budding new national carrier, has ordered 60 Airbus narrowbody A321 jets with a value of approximately $4 billion as it prepares to start commercial flights next year, Reuters reports.
ADQ: The Abu Dhabi sovereign wealth fund completed its deal to take a minority stake in Sotheby’s, joining owner Patrick Drahi in providing the auction house with a cash infusion of approximately $1 billion, Bloomberg reports.
Mubadala: Investcorp Holdings, the Bahrain-based alternative investment firm backed by the UAE’s Mubadala sovereign wealth fund, has completed three deals through a new $1 billion investment fund established with China Investment Corp., Investcorp Chief Investment Officer Rishi Kapoor told Bloomberg.
↪↩ Closing Circuit
🌀 Green Hydrogen: Morocco’s Ministry of Energy Transition and Sustainable Development has signed a $1 billion agreement with France’s TotalEnergies to produce green hydrogen in the Guelmim-Oued Noun region, leveraging Morocco’s solar and wind resources, Sabah Agadir reported.
🚝 Train Ride: King Abdullah Financial District Development and Management Company announced a construction agreement with a consortium led by China’s CRRC Nanjing Puzhen and Hassan Allam Construction Saudi, for a 3.6-kilometer monorail project in Riyadh.
🔒 Data Guard: MIND, an Israeli startup that uses AI to detect and prevent data leaks, raised $11 million in seed funding round led by YL Ventures.
🗣 Circuit Chatter
📈 ETF Trade: Saudi Arabia’s first ETFs that track the shares of Hong Kong-listed companies began trading on Wednesday on the Saudi Stock Exchange, with $1.2 billion raised at the launch.
🛢️ Risky Business: The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani, Bloomberg reports.
⛏️ Copper Talks: Saudi Arabia is in advanced negotiations over a stake in a copper mine in Zambia and expects a deal by the end of the year, Robert Wilt, the CEO of Saudi mining company Ma’aden, told Reuters.
🌍 Power Circuit
Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi, visited AI Singapore, meeting with executive management to discuss efforts supporting research, startups and local talent development to build an integrated AI ecosystem.
Pakistani Prime Minister Muhammad Shehbaz Sharifheld a meeting with Saudi Minister of Investment Khalid Al-Falih on Wednesday on the sidelines of the FII conference, where they discussed some $2.8 billion in trade deals between the two countries.
➿ On the Circuit
Princess Reema bint Bandar, Saudi Arabia’s ambassador to the U.S., addressed the FII conference on Wednesday about the need to preserve marine environments and the importance of the world’s oceans to the global economy.
Mohammed Aldekmaryhas been appointed CEO of ZCG Arabia to lead the new Riyadh office and oversee activities in asset management, consulting and technology.
🗓️ Ahead on The Circuit
Oct. 31, Abu Dhabi, UAE: Transition Investment Workshop. NYU Abu Dhabi’s Transition Investment Lab holds a day of discussions on aligning investment decisions with social values. NYU Abu Dhabi, East Forum.
Nov 4-7, Abu Dhabi, UAE: ADIPEC. The event is the biggest gathering for energy leaders, policy makers, and key industry players. It is often attended by heads of multilateral organizations, ADNEC.
Nov. 12-13, Abu Dhabi, UAE: CyberQ: Security in the Quantum Era. Brings together international experts, key policymakers and industry players to discuss challenges in the quantum age of cybersecurity. ADNEC.
Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globe’s most pressing issues. St. Regis Saadiyat Island.
Dec. 5-8, Abu Dhabi: Abu Dhabi Grand Prix 2024. World’s fastest race drivers compete in Abu Dhabi leg of the Formula One season. Yas Marina Circuit.
Dec . 9-10, Abu Dhabi: The Bitcoin Conference. The conference connects with industry leaders, and experiences a dynamic expo hall featuring a fusion of technology and art. ADNEC.
Dec. 9-12, Abu Dhabi: Abu Dhabi Finance Week. Market experts and entrepreneurs from all over the world discuss the latest market trends. Al Maryah Island, ADGM Square.
