|2011-03-19 (1432/04/14) 02:05:05|
Saturday, 19 March 2011
National Oil Corporation Chairman Shukri Ghanem said Libya's crude production had fallen to less than 400,000 barrels per day from about 1.6 million before the crisis and warned that oil exports might halt altogether if output is not restored.
"Because of the situation, we will be looking at giving direct block contracts to countries ready to come and work in the country because we want to increase production," he said.
The exchange has been closed since January 30, early in the 18-day uprising that toppled President Hosni Mubarak from power. Prior to that, the main index had fallen 21 percent since the start of the year.
Batelco teamed up with Saudi billionaire Prince Alwaleed bin Talal's Kingdom Holding 4280.SE to bid for Zain's 25 percent stake in Zain Saudi Arabia 7030.SE [ID:nLDE72F056]
"We were not buying Zain, we were buying a stake in Zain KSA and we are still interested in that," Batelco CEO Peter Kaliaropoulos told Reuters from Riyadh. "Now the question is will Zain still sell it. But we will proceed."
"Etisalat has to announce unfortunately that negotiations ... towards acquiring a controlling stake in Zain have ended," the statement said.
The Gulf's largest telecom firm offered last September to buy a 46-percent stake in Zain, worth about $12 billion, for 1.7 dinars a share from a consortium led by Kharafi Group.
The timing of Abu Dhabi’s first euro and sterling denominated bond issue last week might have been judged unfortunate given the unrest across the region and the declaration of a state of emergency in Bahrain. But the issue was ‘extremely well received’ and three times oversubscribed by 350 investors.
Perhaps Abu Dhabi partly sought to demonstrate that it is still business as usual in the Emirates. $4.4 billion was no mean sum, not that the Abu Dhabi Government needs the money at all. This is simply a financing to improve the internal rate-of-return on this purchase, something like mortgaging a house when you actually have the money available.
It was also the first time the Tribunal enforced an arbitration decision from another court, which could set a precedent for other disputes involving the developer.
The Dubai International Arbitration Centre last May ruled that Vinod Kumar Dang should be paid Dh2.5m plus interest and legal costs in a row over construction defects in a villa. The property owner then took the matter before the Tribunal to have the award verified and paid out.
Oil dropped 0.4 percent after Muammar Qaddafi’s regime made the announcement that it’s ready to end hostilities. President Barack Obama said Qaddafi must stop violence and repression or face a military response by an international coalition. A United Nations vote yesterday cleared the way for the use of air attacks and a no-fly zone over Libya to protect civilians.
“There was a dramatic reversal after the Libyan announcement,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. “The market’s reaction is understandable because there were fears that ordinance would be in the air over Libya this weekend.”
Commercial banks' overall investments in securities increased by 41.2 percent to RO 2,204.4 million at the end of January 2011 from RO 1,561 million a year ago. Outstanding investments in CBO CDs increased to RO 1,535.8 million in January 2011 from RO 1,118.9 million in January 2010. Investments in foreign securities also increased by 26.8 percent to RO 203.3 million at the end of January 2011 from RO 160.3 million during the same period in 2010. Commercial banks' investment in government development bonds increased to RO 286.1 million in January 2011 compared to RO 144.1 million in January 2010.
On the liabilities side of the balance sheet, aggregate deposits (Rial Omani plus foreign currency) witnessed a year-on-year growth of 13 % to RO 10,558.6 million at the end of January 2011 from RO 9,345.9 million in January 2010. Government deposits with commercial banks increased by 23.1 percent to RO 2,308.5 million, and deposits of public enterprises rose by 18.4 percent to RO 904.1 million during the same period. Private sector deposits with commercial banks registered an increase of 8.8 percent to RO 7,229.4 million by the end of January 2011 from RO 6,646.8 million a year ago. For the first month of the year, provisional figures for net profits stood higher at RO 22.1 million at the end of January 2011 compared to RO 20.8 million a year ago.
With unrest in the Middle East pushing oil prices higher, there is one scenario that is not to be taken lightly – the risk of stagflation: higher inflation against a backdrop of slowing global growth.
Ten out of 11 postwar recessions in the US have been preceded by sharp increases in oil prices. Investors are right to wonder whether history will repeat itself and might be the impact on emerging markets.
Oil prices and growth seem positively correlated ie crude and GDP growth tend to rise and fall in tandem. However, uncovering the correct relationship between economic activity and oil prices is difficult.