Lulu Retail (ADX:LULU) opened four new mini market stores in Saudi Arabia, consistent with the group's expansion strategy in the Gulf Cooperation Council.
The Abu Dhabi-listed retailer's new stores are located at Ar Rabi and Khurais Road metro stations and Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, gas station in Riyadh, as well as at an Abu Dhabi National Oil Co, or Adnoc, gas station in Dammam, according to a Monday release.
Oil traded sharply lower midafternoon Monday, falling more than 6% as peace negotiations between Iran and the Untied States continue, raising hopes for a deal that will reopen the blockaded Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen down US$6.21 to US$90.39 per barrel in electronic trade, with markets closed for the Memorial Day holiday, July Brent oil was down US$7.40 to US$96.14.The drop comes as the countries continue talks to end the war that has kept the Strait closed for nearly three months, blocking much of the 20% of daily oil demand supplied by Persian Gulf nations. The Wall Street Journal reported Iran is willing to lift its blockade of the Strait in exchange for the United States ending its blockade of Iranian ports, though Iran warned a final deal is not imminent.The closure of the Strait has boosted oil prices to four-year highs, raising inflation and pressuring U.S. President Trump to come up with a deal to end the war as the high-demand U.S. driving season begins with today's Memorial Day holiday, further squeezing supply."Both Trump and Iran have strong reasons to find a quick way out of the war and crisis, for economic, financial, political and military reasons," SEB Research noted.
(Updates to add statement from Adnoc spokesperson)Abu Dhabi National Oil Co, or Adnoc, is said to be quietly transporting its oil and gas shipments through the Strait of Hormuz using its own fleet by employing so-called dark transit and other practices.Bloomberg News reported Monday, citing tracking data, traders, and people with knowledge of the matter, that the United Arab Emirates-based oil producer continues to export energy despite the Iranian navy and the US warships' blockade by switching off its vessels' tracking transponders while crossing the strait.The vessels include crude and clean petroleum product tankers, and gas carriers controlled by Navig8, which is majority-owned by Adnoc Logistics and Services (ADX:ADNOCLS), the report said.An Adnoc spokesperson said the company does not comment on "the position, movements, or routing of our vessels as a matter of policy."(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Kepler Cheuvreux on Monday increased its price target for oil tanker shipping company Frontline Plc (FRO.OL) to 191 Norwegian kroner from 180 kroner, while maintaining its reduce rating.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)