Crude prices could rise once more in 2023 on the back of sanctions on Russian crude and higher global demand, the International Energy Agency (IEA) said yesterday. Western sanctions on Russian crude including an EU and UK ban and the G7 price cap could see oil supply from the country fall 14% by the end of 1Q 2023, while demand is set to increase by 300k barrels per day, the organization wrote in its latest monthly report. “As we move through the winter months and toward a tighter oil balance in 2Q 2023, another price rally cannot be ruled out,” the report reads.

The IEA report sent prices higher for the third consecutive day yesterday, even as the Federal Reserve warned it would continue to raise interest rates into 2023. Brent gained 2.6% to hit its highest level in over a week, while US crude closed 2.8% higher.

More promising data on inflation in developed markets: UK inflation dropped to 10.7% in November from a 41-year high of 11.1% in October, according to data from the Office for National Statistics. The country is the latest major developed market to record a steeper than expected decline in the rate of inflation last month, following the US and EU, in a sign that price hikes are cooling from recent decades-high peaks, Reuters reports. The Bank of England and the European Central Bank are expected to follow the Federal Reserve and hike rates by a more modest 50 bps when they meet later today.

Also worth noting this morning: Abu Dhabi’s sovereign fund is considering buying a 25-30% stake in Tel Aviv-listed financial services firm Phoenix Group. ADQ is discussing a potential USD 855 mn investment in the Israeli firm with shareholders Centerbridge Partners and Gallatin Point Capital. (Bloomberg)

	EGX30	15,378	+1.5% (YTD: +28.7%)
	USD (CBE)	Buy 24.65	Sell 24.73
	USD at CIB	Buy 24.65	Sell 24.72
	Interest rates CBE	13.25% deposit	14.25% lending
	Tadawul	10,248	+0.3% (YTD: -9.2%)
	ADX	10,056	+0.1% (YTD: +18.5%)
	DFM	3,311	+0.3% (YTD: +3.6%)
	S&P 500	3,995	-0.6% (YTD: -16.2%)
	FTSE 100	7,496	-0.1% (YTD: +1.5%)
	Euro Stoxx 50	3,975	-0.3% (YTD: -7.5%)
	Brent crude	USD 82.86	+2.7%
	Natural gas (Nymex)	USD 6.36	-8.3%
	Gold	USD 1,807.68	-0.4%
	BTC	USD 17,821	+0.3% (YTD: -61.4%)

THE CLOSING BELL-

The EGX30 rose 1.5% at yesterday’s close on turnover of EGP 3.86 bn (167% above the 90-day average). Local investors were net buyers. The index is up 28.7% YTD.

In the green: GB Auto (+9.6%), Ezz Steel (+6.9%) and Oriental Weavers (+6.6%).

In the red: Eastern Company (-4.0%), Sidi Kerir Petrochemicals (-3.0%) and Abu Qir Fertilizers (-2.6%).