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Tuesday, 13 November 2018

Tale of Two Economies: IMF Tallies Up Sanctions Wreckage in Iran - Bloomberg

Tale of Two Economies: IMF Tallies Up Sanctions Wreckage in Iran - Bloomberg:

The re-imposition of U.S. sanctions on Iran’s oil exports is undoing every assumption the International Monetary Fund had about its economy.

Instead of a growth spurt the IMF anticipated only months ago, it now projects a recession starting in 2018, a deepening fiscal shortfall and inflation more than tripling from last year, according to its regional economic outlook released on Tuesday.

“Sanctions against Iran will undercut its near-term trade and growth prospects, increasing the risk of spillovers,” the Washington-based lender said in the report.

Qatar National Bank Said to Hire Lenders for $1 Billion Bond - Bloomberg

Qatar National Bank Said to Hire Lenders for $1 Billion Bond - Bloomberg:

Qatar National Bank QPSC hired banks to raise at least $1 billion in its first public dollar bond since the start of a regional standoff last year, people familiar with knowledge of the matter said.

The Middle East’s largest lender by assets is working with banks including Bank of America Corp. and Mizuho Financial Group Inc. on the deal that could be announced as early as this week, said the people, asking not to be identified because the talks are private. QNB didn’t respond to an email seeking comment.

QNB has been using different sources of financing such as private placements in various currencies after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut economic and diplomatic ties with Qatar in June last year, accusing the country of financing terrorist groups and having close ties with Iran. Qatar rejects the charges.

Oil down 4 percent as rout runs to 12 days on supercharged selling | Reuters

Oil down 4 percent as rout runs to 12 days on supercharged selling | Reuters:

Oil’s slide accelerated on Tuesday, with U.S. futures dropping to lows not seen in 11 months due to ongoing worries about weakening global demand, oversupply and sell offs across other asset classes, including equities.

Oil prices were hit on Monday after U.S. President Donald Trump put pressure on the Organization of the Petroleum Exporting Countries not to cut supply to prop up the market. That came after reports that Saudi Arabia was considering a production cut at the December OPEC meeting, on increased alarm that supply has started to outpace consumption.

“Twelve days in a row is insane - but there are a lot of pieces putting pressure on the market,” said Bob Yawger, director of energy futures at Mizuho.

Mideast Stocks: Gulf falls as Trump comment trips up oil; Dubai and Qatar sharply lower | ZAWYA MENA Edition

Mideast Stocks: Gulf falls as Trump comment trips up oil; Dubai and Qatar sharply lower | ZAWYA MENA Edition:

Most Gulf stock markets fell on Tuesday, with Saudi Arabia marginally lower and Dubai and Qatar sharply down, after oil prices retreated on comments by U.S. President Donald Trump pressuring OPEC not to go ahead with a supply cut.

Brent oil hovered near multi-month lows under $70 a barrel following a decline for a record 11th consecutive session amid softening demand, and after Trump said he hoped there would be no oil output reductions. 

Saudi Arabia's main index was down 0.3 percent. Saudi Basic Industries lost 0.8 percent, and Al-Rajhi Bank fell 0.7 percent.

Opec lowers oil demand growth forecast and warns of oversupply in 2019 | Financial Times

Opec lowers oil demand growth forecast and warns of oversupply in 2019 | Financial Times:

Opec has again lowered its forecast for 2019 oil demand growth, in a further sign Saudi Arabia and its partners inside and outside the cartel could be forced to cut supplies to bring the market into balance.

Opec’s research arm said on Tuesday world oil demand growth is forecast to grow by 1.29m barrels a day next year, which is around 70,000 b/d lower than last month’s prediction and the 1.45m b/d it forecast in July.

Worries are mounting about a slowdown in the world economy, trade tensions, emerging market countries’ currency weakness and the fallout on oil demand.

Eni to Develop Abu Dhabi Gas Fields as Emirate Targets Exports - Bloomberg

Eni to Develop Abu Dhabi Gas Fields as Emirate Targets Exports - Bloomberg:

Eni SpA won rights to develop major natural gas fields in Abu Dhabi, the company’s chief executive officer said, a deal that could help the Middle Eastern emirate become a net exporter of the fuel.

Rome-based Eni expects to achieve daily production of 1.5 billion cubic feet of gas and 150,000 barrels of oil at an offshore block that includes the Hail and Ghasha deposits, CEO Claudio Descalzi said in a Bloomberg TV interview in Abu Dhabi. Investment in the project, which Eni will develop with Abu Dhabi National Oil Co., could total $20 billion over 40 years, he said.

“We are growing, and we are working very well with Adnoc,” Descalzi said. “We are increasing our presence in the country.” The new oil and gas project will reach peak production by 2022 or 2023, he said.

Developer Damac Sees `Difficult Year' Ahead for Dubai Property - Bloomberg

Developer Damac Sees `Difficult Year' Ahead for Dubai Property - Bloomberg:

Damac Properties PJSC sees Dubai’s real estate slump lasting another two years, revising previous projections of a recovery before the city’s much touted World Expo 2020.

“Next year is going to be another difficult year,” Chairman Hussain Sajwani said at a World Economic Forum event in Dubai on Monday. “I would hope by end of 2020, or 2021, we start coming out of this slowdown.”

The developer’s chief financial officer in May said he expected a rebound in Dubai’s real estate market as oil prices climbed and ahead of the World Expo 2020, coveted for its potential to transform the sheikhdom’s economy.

Qatar Airways Renews Threat to Exit Oneworld Over Qantas Rift - Bloomberg

Qatar Airways Renews Threat to Exit Oneworld Over Qantas Rift - Bloomberg:

Qatar Airways Chief Executive Officer Akbar Al Baker renewed his threat to abandon the Oneworld global alliance, citing a letter he said Australian partner Qantas Airways Ltd. had sent to staff attacking his carrier’s expansion there.

Al Baker’s comments on Tuesday mark a further deterioration in relations with Qantas, which has a joint venture with Qatar Air’s Dubai-based rival Emirates. The CEO reiterated remarks from October saying he could abandon Oneworld if other members fail to act “in the spirit” of the partnership.

“I don’t see any point in us continuing to stay a part of Oneworld when other partners see us as a threat,” Al Baker said at an International Air Transport Association conference in Madrid. “We have put the chips on the table.” He added that Qatar Air’s expansion on routes to Australia had been at the invitation of the country’s government.

Airline Emirates warns oil, dollar to hit first-half profit | Reuters

Airline Emirates warns oil, dollar to hit first-half profit | Reuters:

Emirates earnings are being squeezed by higher oil prices, a strong dollar, and instability in the global economy, the airline’s chief commercial officer said on Tuesday.

The warning came ahead of Emirates’ half-year financial results for the period ending September 30, which will be released on Thursday.

“The profit will be badly hit by the fuel,” Thierry Antinori said at an aviation conference in Dubai, adding that the airline’s fuel costs had risen by 40 percent. “It’s difficult to manage.”

Over 90 million passengers expected to use Dubai's main airport in 2018 - CEO | Reuters

Over 90 million passengers expected to use Dubai's main airport in 2018 - CEO | Reuters:

Just over 90 million passengers are expected to use Dubai International Airport in 2018, Dubai Airports Chief Executive Paul Griffiths said on Tuesday at an aviation industry conference.

Passengers using the airport, the hub for Middle East airline giant Emirates and a major source of income for Dubai, rose 5.5 percent to 88.2 million in 2017.

IMF: Mideast oil producers buoyed by higher prices, for now

IMF: Mideast oil producers buoyed by higher prices, for now:

Higher oil prices are helping to offset increases in public spending by the Middle East’s oil exporting heavyweights like Saudi Arabia, with these countries narrowing their budget deficit by $77 billion, the International Monetary Fund said on Tuesday.

However, the rosier outlook for some oil exporters is not consistent across the region. In Iran, the re-imposition of U.S. sanctions last week on oil exports is expected to drive up inflation there to more than 40 percent by year’s end.

The findings, which came in the IMF’s new regional outlook report, said the overall fiscal deficit for the Mideast’s oil exporters is projected to decline from around $118 billion last year to $41 billion this year, before narrowing to $3 billion in 2019.

Oil down 2 percent after Trump urges OPEC not to cut supply | Reuters

Oil down 2 percent after Trump urges OPEC not to cut supply | Reuters:

Oil prices fell more than 2 percent on Tuesday after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market. 

Brent LCOc1 dropped $1.97 a barrel, or 2.8 percent, to a low of $68.15 and was trading at around $68.40 by 1045 GMT. U.S. light crude CLc1 was $1.55 lower at $58.38.

Both crude benchmarks have fallen more than 20 percent since peaking at four-year highs in early October.

Mideast Stocks - Gulf falls as oil slips on Trump comment; Saudi down marginally | ZAWYA MENA Edition

Mideast Stocks - Gulf falls as oil slips on Trump comment; Saudi down marginally | ZAWYA MENA Edition:

Gulf stock markets generally fell early on Tuesday, with Saudi Arabia marginally lower and Dubai and Qatar declining by bigger margins, after comments by U.S. President Donald Trump on OPEC's planned supply cut drove oil prices lower.

Brent oil LCOc1 hovered near multi-month lows under $70 a barrel following a decline for a record 11th consecutive session amid softening demand, and after Trump said he hoped there would be no oil output reductions.

The Saudi stock index was down 0.2 percent after 75 minutes. Saudi Basic Industries fell 0.5 percent while Al-Rajhi Bank and National Commercial Bank were flat.