Could snap up remaining global oil reserves? The CEO of Saudi Aramco has warned that China will likely snap up spare oil capacity when it lifts its covid-zero strategy, Bloomberg reports. Crude oil prices dropped below USD 90 a barrel partly due to China’s strict covid restrictions suppressing demand. Analysts say there’s only about 2 mn barrels a day of capacity that could be brought online quickly in the event of a supply shutdown. The warning reiterates Aramco and Saudi Arabian officials' call for more investment in exploration projects off the back of this year’s spike in oil and natural gas prices.

The speculation comes as the G7 group of industrialized nations is imposing caps on Russian oil imports rather than a complete ban in a bid to curb economic damage while limiting the Kremlin’s financial ability to fund its invasion of Ukraine, Reuters reports.

Is the price cap good news for emerging markets? The US Treasury says the price cap is expected to save emerging markets around USD 160 bn annually on oil imports, the Financial Times reports, citing a yet to be released study by the US Treasury Department. The price cap would stabilize global energy prices and help ease the impact being felt by emerging markets, according to a Treasury official.

THE CLOSING BELL-

The EGX30 rose 2.6% at yesterday’s close on turnover of EGP 1.1 bn (12.8% above the 90-day average). Foreign investors were net sellers. The index is down 17.0% YTD.

In the green: Mopco (+5.4%), Fawry (+4.9%) and Heliopolis Housing (+3.9%).

In the red: Ibnsina Pharma (-0.9%), and CIRA (-0.7%).

Asian markets are largely up in early trading this morning and futures suggest European indices will open in the green across the board as equities ride a burst of October optimism. Things look less rosy across the pond, with the three major Wall Street indices set to open in the red later today.