Supply Disruptions Would Drive Oil Above $90 a Barrel
Crude oil prices would likely rise to roughly $90-$95/barrel if retaliation by Iran disrupts flows of oil from the Middle East, said ANZ.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
16 minutes ago
- USA Today
Oil hits five-month high after US strikes key Iranian nuclear sites
SINGAPORE - Oil prices jumped on Monday, local time, to their highest since January as Washington's weekend move to join Israel in attacking Iran's nuclear facilities stoked supply worries. Brent crude futures rose $1.88 or 2.44% at $78.89 a barrel as of 1122 GMT. U.S. West Texas Intermediate crude advanced $1.87 or 2.53% at $75.71. Both contracts jumped by more than 3% earlier in the session to $81.40 and $78.40, respectively, five-month highs, before giving up some gains. The rise in prices came after President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Iran is OPEC's third-largest crude producer. Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Iran's Press TV reported that the Iranian parliament approved a measure to close the strait. Iran has in the past threatened to close the strait but has never followed through on the move. "The risks of damage to oil infrastructure ... have multiplied," said Sparta Commodities senior analyst June Goh. Although there are alternative pipeline routes out of the region, there will still be crude volumes that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added. Brent has risen 13% since the conflict began on June 13, while WTI has gained around 10%. The current geopolitical risk premium is unlikely to last without tangible supply disruptions, analysts said. Meanwhile, the unwinding of some of the long positions accumulated following a recent price rally could cap an upside to oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a market commentary on Sunday. (Reporting by Siyi Liu in Singapore; Editing by Himani Sarkar)
Yahoo
16 minutes ago
- Yahoo
Middle Eastern Dividend Stocks To Watch In 2023
The Middle Eastern stock markets have shown resilience, with most Gulf bourses ending higher despite geopolitical tensions involving U.S. strikes on Iran, as investors seem to have already factored in potential conflicts and are focusing on regional economic stability supported by robust oil flows and sovereign wealth funds. In this environment, dividend stocks can be appealing for income-focused investors seeking stable returns amidst market volatility, as they often represent companies with strong cash flows and solid financial foundations. Name Dividend Yield Dividend Rating Turkiye Garanti Bankasi (IBSE:GARAN) 3.81% ★★★★★☆ Saudi National Bank (SASE:1180) 5.93% ★★★★★☆ Saudi Awwal Bank (SASE:1060) 6.40% ★★★★★☆ Riyad Bank (SASE:1010) 6.68% ★★★★★☆ National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK) 7.56% ★★★★★☆ Emirates NBD Bank PJSC (DFM:EMIRATESNBD) 4.73% ★★★★★☆ Emaar Properties PJSC (DFM:EMAAR) 8.06% ★★★★★☆ Commercial Bank of Dubai PSC (DFM:CBD) 5.97% ★★★★★☆ Arab National Bank (SASE:1080) 6.31% ★★★★★☆ Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT) 7.94% ★★★★★☆ Click here to see the full list of 75 stocks from our Top Middle Eastern Dividend Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Gulf Medical Projects Company (PJSC) operates hospitals in the United Arab Emirates and has a market cap of AED1.45 billion. Operations: Gulf Medical Projects Company (PJSC) generates revenue from segments including Investments, contributing AED37.79 million, and Health Services & Others, which accounts for AED690.34 million. Dividend Yield: 7.2% Gulf Medical Projects Company (PJSC) offers a dividend yield of 7.21%, placing it in the top 25% of dividend payers in the AE market. However, its dividends are not well covered by earnings, with a high payout ratio of 125.5%, and have been unreliable over the past decade due to volatility and lack of growth consistency. Despite recent earnings growth, dividends remain inadequately supported by earnings, though they are covered by cash flows with a reasonable cash payout ratio of 73.1%. Navigate through the intricacies of Gulf Medical Projects Company (PJSC) with our comprehensive dividend report here. The valuation report we've compiled suggests that Gulf Medical Projects Company (PJSC)'s current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Fourth Milling Company operates in the Kingdom of Saudi Arabia, focusing on the production, packaging, and sale of flour and its byproducts, animal feed, and bran products with a market cap of SAR1.89 billion. Operations: The company's revenue is primarily derived from its Food Processing segment, which generated SAR633.61 million. Dividend Yield: 6.2% Fourth Milling Company offers a dividend yield in the top 25% of Saudi Arabian payers, supported by a sustainable payout ratio of 67.9%, and cash flow coverage at 49.9%. Recent earnings growth and strategic investments, like the SAR 265 million expansion in Al-Kharj city, signal potential for future revenue increases. The company recently appointed KPMG as auditors ensuring financial transparency but has limited dividend history to assess long-term reliability or growth trends. Dive into the specifics of Fourth Milling here with our thorough dividend report. Our comprehensive valuation report raises the possibility that Fourth Milling is priced lower than what may be justified by its financials. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Mizrahi Tefahot Bank Ltd., along with its subsidiaries, offers a variety of international, commercial, domestic, and personal banking services to individuals and businesses both in Israel and abroad, with a market cap of ₪55 billion. Operations: Mizrahi Tefahot Bank Ltd. generates revenue through its diverse range of banking services, catering to both individual and business clients within Israel and on an international scale. Dividend Yield: 4% Mizrahi Tefahot Bank's dividends are well covered by earnings, with a current payout ratio of 40% and forecasted to remain sustainable at 45.6% in three years. Despite a dividend yield of 3.98%, which is below the top tier in Israel, the bank's recent earnings growth of 13.7% supports its payout capacity. However, past dividend payments have been volatile and unreliable over the last decade, raising concerns about long-term consistency for investors seeking stable income streams. Click to explore a detailed breakdown of our findings in Mizrahi Tefahot Bank's dividend report. Insights from our recent valuation report point to the potential overvaluation of Mizrahi Tefahot Bank shares in the market. Navigate through the entire inventory of 75 Top Middle Eastern Dividend Stocks here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ADX:GMPC SASE:2286 and TASE:MZTF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
18 minutes ago
- Yahoo
Watch These Bitcoin Price Levels Amid Volatile Trading After U.S. Strikes Iran
Bitcoin briefly fell below $99,000 on Sunday to its lowest level in more than six weeks as news that the U.S. had struck Iranian nuclear sites caused investors to reassess their appetite for risky assets. After trending sharply higher between early April and late May, the cryptocurrency has consolidated within a descending channel. Investors should watch crucial support levels on Bitcoin's chart around $100,000 and $92,000, while also monitoring resistance levels near $107,000 and $112, (BTCUSD) briefly fell below $99,000 on Sunday as news that the U.S. had struck Iranian nuclear sites caused investors to reassess their appetite for risky assets. The digital currency moved as low as $98,200 on Sunday afternoon, its lowest level since May 8, amid uncertainty about the geopolitical and economic outlook after the U.S. late Saturday entered a conflict between Israel that had intensified over the past week. In recent trading, bitcoin had rebounded to about $101,200 but was still well down from its high last Monday of near $109,000. Below, we take a closer look at bitcoin's chart and apply technical analysis to identify crucial price levels worth watching out for. After trending sharply higher between early April and late May, bitcoin has consolidated within a descending channel. Over the past week, the cryptocurrency's price has retraced toward the pattern's lower trendline, an area on the chart that closely aligns with the psychological $100,000 level. Moreover, recent selling has coincided with the relative strength index falling below its neutral threshold, signaling weakening price momentum. Let's identify crucial support and resistance levels on Bitcoin's chart. Investors should initially monitor the $100,000 level. This area on the chart is likely to gain significant attention near the descending channel's lower trendline and a range of corresponding trading activity stretching back to last November. A decisive close below this level could see the cryptocurrency's price revisit lower support around $92,000. Investors may seek buying opportunities in this area near a horizontal line that links a series of price action on the chart between November and April. The first resistance level to watch sits around $107,000. The cryptocurrency could face overhead selling pressure in this location near the descending channel's top trendline, which also closely aligns with prominent peaks that formed on the chart in December and January. Finally, buying above this level could see BTC bulls push the price toward $112,000. Investors who have accumulated bitcoin during its recent retracement could decide to lock in profits near last month's high, which also marks the cryptocurrency's all-time high. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
