Good morning, folks. We have a lot of ground to cover this morning with PMI updates to unpack from Saudi and Egypt, along with an LNG export and storage update from Jordan. Let’s dive right in.

WATCH THIS SPACE-

#1- Egypt is exploring the possibility of exporting electricity to Syria through its interconnection link with Jordan, Egypt’s Electricity Minister Mahmoud Esmat told Asharq Business. The plan hinges on stabilizing the security situation in the country and Egypt’s electricity production vs consumption. An unconfirmed report citing a government official earlier this week pencilled in either 2029 or 2030 as when the country will finally be able to close the gap between domestic production and consumption.

#2- Libya’s Misrata International Airport project is slated to be completed by the end of 2025 with 50% of the project completed, according to a statement. The airport — which covers 24k sqm — has a 3.5 mn annual passenger capacity and includes four aircraft gates and 15 stations dedicated to passenger boarding procedures in a bid to enhance operational efficiency.

Cargo included: Libya’s Trade Ministry greenlit a Libyan-Spanish joint venture back in August 2023 for air cargo and aircraft maintenance services—which will set up an air cargo and aircraft maintenance station dubbed ADVCO at Misrata International Airport.

#3- Hapag-Lloyd expects lower profitability in 4Q: German shipping giant Hapag-Lloyd expects profitability to decrease in 4Q 2024 on the back of a spike in freight rates, but to remain “at a good level,” Reuters reports, citing comments made by CEO Rolf Habben Jansen at a press conference. The firm’s bottom line decreased 46.5% y-o-y to USD 1.8 mn in 9M 2024, and uncertainty looks to extend beyond 2024 as unstable freight rates, route diversions and geopolitical challenges continue.

MARKET WATCH-

#1– Oil prices traded within a narrow range this morning as traders await the outcome of the upcoming Opec+ meeting this week, Reuters reports. Brent crude futures rose USD 0.14 trading at USD 71.97 a barrel by GMT 04.04, while US West Texas Intermediate crude (WTI) futures gained USD 0.08 to USD 68.18 a barrel. The organization will likely push back output increases on the back of weak global oil demand at its Thursday meeting.

#2- Saudi Arabia ramps up oil exports to Asia as Russian supplies dwindle: Saudi Arabia’s oil exports to the Asian markets rose to 5.83 mn barrels per day (bbl / d) in November, adding 550k bbl / d m-o-m, Reuters reports, citing data from LSEG Oil Research. This came as supplies from Russia to the region shed 450k bbl / d m-o-m to reach 3.51 mn.

Doubling down: The Kingdom is also looking to bring prices for Asian buyers to at least a four-year low in January, with selling prices for Arab Light set to fall by around USD 0.7-0.9 per barrel from December prices, Reuters reports, citing six sources at Asian refineries that took part in its survey.

MEANWHILE- Aramco left December prices for liquefied petroleum gas (LPG) unchanged, with propane still going for USD 635 per ton and butane for USD 630, Reuters reports, citing traders.

#3- Baltic index is on a losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell nearly 4.1% to 1,298 points on Monday, dropping to its lowest since September 2023. The capesize index fell 160 points to 1,973 points, while the panamax index dipped 9 points to a 16-month low of 1,009 points. The smaller supramax index shed 1 point to 979 points.

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CIRCLE YOUR CALENDAR-

Morocco will host the Rail Industry Summit from Tuesday, 10 December to Wednesday, 11 December in Casablanca. The two-day summit includes pre-scheduled business meetings with potential partners, conferences, and themed workshops on new market trends and future strategies presented by OEMs on infrastructure, rolling stock, embedded equipment and railway vehicle interiors.

The UAE will host the Middle East Business Aviation Show from Tuesday, 10 December to Thursday, 11 December in Dubai. The event will showcase innovations from over 135 exhibitors and will have over 25 jets on display, with over 55 speakers offering insight on market trends.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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