Interpreting Middle East Economic News and Analyzing Market Trends

Archive for October, 2014

Supply and demand fundamentals no longer move the price of oil

NASDAQ WTI 10 Year Oil Price to 28-10-2014

WTI Crude Oil price from 2004 to 2014. Source: NASDAQ

I wish the so-called experts in the oil sector would stop talking about the fundamentals affecting the price of oil and start talking about what really moves the oil market – banks and commodity trading firms.  Can an oil analyst tell you with a straight face that the trippling of the oil price from 2005 to 2008 (see chart above) was due to a record rise in consumption or a record fall in production?

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Kuwait government investments are approaching $800 billion, much larger than previous estimates

IFSWF 2014

Bader Al-Saad (center), Chairman of the Kuwait Investment Authority (KIA)

 

On October 22, 2014, Kuwaiti newspaper Alrai published figures from a report it had received detailing the Kuwaiti government’s finances and investments.  In it, the report states that the government’s total investments are valued at $782 billion as of June 30th this year.  Total investments are expected to top $800 billion by the end of the year.  This figure is much higher than previous estimates reported by the media.

 

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Is it too late to join the IPO party?

Saudi Tadawul

Saudi Arabia’s Tadawul is the Arab world’s largest stock exchange.

 

The IPO has been set for Saudi Arabia’s National Commercial Bank’s (NCB), the largest bank in the country and one of the largest banks in the Middle East. If all goes well, the IPO will be the second largest IPO globally for 2014 after Alibaba, which debuted last month.  Has the IPO market topped or is this market just getting warmed up?

   

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