Bank of England data showed on Tuesday that unsecured lending to British households rose in August at the fastest annual pace since at least 1993, while the number of approved mortgage applications fell to the lowest level in nearly three years.
Net unsecured consumer lending rose by 2.464 billion pounds ($3.26 billion) on a monthly basis, far exceeding economists' expectations for an increase of 1.9 billion pounds, and marking the largest increase since monthly data records began in 1993. This series does not take into account the impact of inflation, according to Reuters.
British lenders approved 54,918 mortgages for home purchases last month, the lowest level since December 2023, and lower than the average forecast of 56,100 loans in a survey conducted by the agency of economists.
Lenders approved 55,928 mortgage loans in July.
The performance of Gulf markets was mixed in early trading on Tuesday, as investors awaited renewed diplomatic efforts to end the conflict between the United States and Iran.
The main index of the Saudi market fell by 0.4 percent, affected by the decline of “Ma’aden” stock by 1.9 percent, while “Saudi Aramco” stock fell by 0.2 percent.
The main index of the Qatar Stock Exchange fell 0.5 percent, with the stock of Qatar National Bank declining. The largest Gulf banks, by 0.9 percent.
On the other hand, the Dubai Financial Market index rose by 0.2 percent, supported by the rise of the Dubai Islamic Bank stock by 0.1 percent, while the Abu Dhabi Securities Market index almost stabilized.
Gas supply disturbance
The continued disruption of liquefied natural gas flows cast a shadow on investor sentiment. Qatar Energy has extended its force majeure notices, and will not be able to deliver shipments of liquefied natural gas to the Italian company Edison and some Asian customers, as long as the Strait of Hormuz is closed, according to Edison and trade sources.
Renewed US-Iranian talks
American and Iranian officials held separate talks with mediators on Monday, according to officials from both countries, in a renewed effort to end the war.
Any new negotiations are expected to focus on a modified version of the proposal that Iran presented for seven days last week, on the sidelines of the UN General Assembly meetings, according to an official familiar with the talks.
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, warned that the increasing talk about declining demand for oil may send a message to investors that it is time to stop investing in the oil industry, at a time when the organization believes that securing future supplies requires huge inflows of capital.
Al-Ghais said, in an interview with Algerian Al-Nahar TV on the sidelines of his visit to Algeria on the occasion of the ten-year anniversary of the “Algiers Agreement” concluded in September 2016, that talk about a decline in demand for oil represents a “dangerous message” that indicates the need to stop investing in the oil industry, considering that this contradicts the position of “OPEC” and what many in the oil and energy sector are demanding.
OPEC estimates cumulative investment needs in the oil sector at about $17.7 trillion until 2050, to meet expected demand growth and maintain the industry’s ability to provide supplies.
Al-Ghais’s warning comes at a time when estimates are increasing that global demand for oil is about to reach its peak, in light of the shift towards low-emission energy sources and the expansion of the use of alternative energy technologies. OPEC, on the other hand, adheres to its vision that sees the continued need for oil within the global energy mix.
Al-Ghais said that oil will continue to constitute more than 30 percent of the global energy mix, noting that fossil fuels are still deeply rooted in the global energy system, and that dealing with the future of energy requires a degree of realism.
Investment and market stability
Al-Ghais links continued investment to the oil industry’s ability to meet demand and secure supplies, at a time when the industry is facing major shifts in the global energy market.
During his visit to Algeria, Al-Ghais stressed that investment, securing supplies, and economic stability are elements closely linked to the stability established by cooperation between OPEC Plus countries.
He also stressed that OPEC is focusing on the stability of the oil market and the balance of supply and demand, rather than targeting specific price levels.
Algiers Agreement
Al-Ghais’s statements came during his visit to Algeria on the occasion of the tenth anniversary of the “Algiers Agreement,” which he described as a historic turning point in cooperation between oil-producing countries and a paving the way for the establishment of “OPEC Plus.”
Al-Ghais praised the Algerian role in reaching the agreement, noting that the consultations that began in Algeria and were completed in Vienna led to a framework of cooperation between OPEC and producing countries outside the organization.
He said that the agreement constituted the first cooperation of this kind between OPEC and ten non-OPEC countries, and that Algeria played a diplomatic role in convincing non-member countries to join the agreement.
He also pointed to other milestones in Algeria's history within OPEC, including hosting the first summit of leaders of member states in Algeria in 1975, which led to the establishment of the OPEC Fund for International Development.
