GULF WEEKLY: Covid variant knocks oil, MBZ visits Turkey, Kuwait fiscal data to October

GULF COUNTRIES - Report 26 Nov 2021 by Justin Alexander

​A skimmable summary overlaid with our analysis and links. Headlines:

* Oil prices took a hit, more from the new Covid variant than the US strategic reserves release plan.
* Gulf states may be split on whether to pause the taper at next week's OPEC+ meeting.
* A $15bn Aramco investment into an Indian oil-to-chemicals business was cancelled on valuation differences.
* Fitch downgraded the viability of Bank of Sharjah, adding to contingent liability pressure on the emirate.
* MBZ visited Turkey, and there was talk of $10bn in UAE investments and a possible swap line.
* Iran’s nuclear negotiator visited the UAE ahead of the restart of JCPOA talks.
* The UAE is financing a solar plant in Jordan that will supply power to Israel.
* Kuwait’s deficit was -$4.1bn in Apr-Oct, with spending up 18% y/y, but this may be a misleading trend given accounting quirks in several chapters' spending.
* Kuwait’s prime minister was reappointed to form a new government, and the Amir appeared in public.
* Oman’s detailed September fiscal data showed that EDO has finally taken over oil and gas costs.
* Oman’s sultan visited Qatar, and his brother visited the UAE, strengthening key Gulf relationships.
* Bahrain announced a $30bn strategic projects plan including dubious plans for new cities on reclaimed land.

Now read on...

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