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New Gas Field Discovered in Sharjah

The new discoveries of oil and gas reserves in Abu Dhabi will further boost the UAE economy. WAM
The new discoveries of oil and gas reserves in Abu Dhabi will further boost the UAE economy. WAM
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New Gas Field Discovered in Sharjah

The new discoveries of oil and gas reserves in Abu Dhabi will further boost the UAE economy. WAM
The new discoveries of oil and gas reserves in Abu Dhabi will further boost the UAE economy. WAM

The Sharjah National Oil Corporation (SNOC) and its Italian partner ENI have announced a successful discovery of natural gas and condensate onshore at the Mahani field in Sharjah with a flow rate of up to 50 million standard cubic feet per day.

This represents the first onshore discovery of gas in the emirate since the early 1980s.

Mahani-1 well was drilled at a total depth of 14,597 feet, which resulted in the discovery of gas with the associated capacitors in the formation of the Thumama. The size of the discovery will be estimated in time in light of expectations for further evaluation and development.

Mahani-1, located in the Area B Concession, is the first exploration well drilled by SNOC following the acquisition of a new 3D seismic survey covering the territory, SNOC said in a statement.

Deputy Ruler of Sharjah and Chairman of Sharjah Oil Council Sheikh Ahmed bin Sultan al-Qasimi said the discovery is set to bolster the emirate's economy and contribute to its energy reserves.

The discovery will bring about a "major transformation" in Sharjah's industrial and commercial sectors by providing energy resources and attracting top global companies to invest in various sectors in the emirate, he added.

Sheikh Ahmed continued that “Sharjah provides strategic energy infrastructure to help the nation meet the growing demand for energy by residential, industrial and utility consumers.”

Further, President of SNOC Sheikh Sultan Bin Ahmed al-Qasimi said that the discovery will reflect positively on the economic sector in Sharjah and the goals of sustainable development, energy security, decent livelihoods and the well-being of people.

He pointed out that the new gas field constitutes an important addition to support the Emirate’s economy, which is classified as strong and stable, and would enhance its economic competitiveness.

Sheikh Sultan expressed confidence that this would help attract more industrial investments to Sharjah and generate greater revenue resources, contributing to the Emirate’s stability and financial sustainability.

Sheikh Khalid bin Abdullah bin Sultan al-Qasimi, chairman of the Department of Seaports and Customs in Sharjah, said the natural gas discovery will stimulate various sectors by generating more commercial and industrial projects.

Speaking on the same occasion, CEO of SNOC Hatem al-Mosa added: “This is the first onshore discovery in Sharjah in 37 years and marks the beginning of an exciting time for SNOC and Sharjah’s energy sector.”

SNOC owns and operates over 50 wells distributed in three fields, a gas processing complex, and 2 hydrocarbon liquid storage and export terminals. Its Sajaa complex is the hub of gas pipelines connecting all northern Emirates.

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Dollar Mauled by Trump Trade War

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Mauled by Trump Trade War

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar hit three-month lows on Wednesday as the US' trade war with its partners escalated, while a major overhaul to German government borrowing triggered the biggest sell-off in the country's debt since the late 1990s.

In addition to the cocktail of tariffs and a seismic shift in German fiscal policy, investors also scrutinized the start of China's annual sessions of its parliament, the National People's Congress, at which Beijing retained a goal of roughly 5% economic growth for 2025.

The euro hit its highest in four months, while European stocks surged. The biggest casualties were longer-dated German government bonds, caught up in their worst one-day selloff in more than 25 years as yields ripped higher, Reuters reported.

Overnight, German political parties agreed to a 500 billion-euro ($534.75 billion) infrastructure fund and, crucially, an overhaul in borrowing limits that economists billed as "a really big bazooka".

"Last night Germany announced plans for one of the largest fiscal regime shifts in post-war history, perhaps with reunification 35 years ago being the only rival," Deutsche Bank strategist Jim Reid said.

"Everything you thought you knew about Germany's economic prospects three months ago, or even three weeks ago, should be ripped up and you should start your analysis from fresh," he said.

German 30-year yields - the rate the government pays to borrow over the very long term - rose by almost a quarter of a percentage point in early trading, on track for their largest rise since October 1998.

The 30-year bond yield was last up 20 basis points at 3.03%.

"It’s a recognition that something has changed. Germany is the benchmark against which all these other markets are measured. And so this big transition in German fiscal policy is significant," Dario Perkins, managing director, global macro at TS Lombard, said.

"We’re a long way away from worrying about German fiscal problems. People have been pleading that Germany spends for the last 20 years."

Longer-dated yields elsewhere rose too, with French 30-year rates up 15 basis points at 4.0% and Italian 30-year bonds yielding 4.517%, up 17 bps.

Europe's STOXX 600 jumped by more than 1.2% to record highs. The prospect of a meaningful increase in European spending on security has sent the region's defence stocks soaring this month.

 

TRADE WAR INCOMING

 

US tariffs on imports from Canada, Mexico and China went into effect on Tuesday, when President Donald Trump also delivered his State of the Union address, in which he touted his successes since taking office six weeks ago.

Canada and China retaliated immediately, while Mexican President Claudia Sheinbaum vowed to respond likewise, without giving details.

With a full-on trade war underway, crude oil hit six-month lows, while bitcoin found its feet around $87,800 following a volatile week.

"Fears about weaker US and global economic activity are manifesting in the markets, with cyclicals driving the sell-off," said Kyle Rodda, senior financial markets analyst at Capital.com.

In China, the offshore yuan was a touch weaker at 7.2629, having staged its biggest one-day rally the previous session since Trump's inauguration as investors ditched the dollar.

Along with its unchanged economic growth target, Beijing committed more fiscal resources than last year to mitigate the impact of rising US tariffs.

China aims for a budget deficit of about 4% of gross domestic product in 2025, up from 3% in 2024.

Overnight, the US S&P 500 slid 1.2%, but futures rose 0.7% on Wednesday.

The US dollar index tumbled 0.5% to 105.03, bringing its losses over the last three days to 2.3%, the most in this timeframe since late 2022.

In the ascendant was the euro, which rose 0.6% to $1.0693, the most since mid-November, prompting a flurry of bullish forecasts from major investment banks.

Oil fell for a third day on Wednesday, under pressure from concern over energy demand as tit-for-tat tariffs ramp up and from OPEC+ plans to raise output in April.

Brent futures fell 1.3% to $70.09 a barrel, having hit $69.75 the previous day, the lowest since September.