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Saturday, 26 December 2015

Hoping for a price surge, oil companies keep wells in reserve | GulfNews.com

Hoping for a price surge, oil companies keep wells in reserve | GulfNews.com:

"The price of oil keeps dropping. But that didn’t stop a work crew from drilling a well recently on what was once a cornfield, carefully guiding the last sections of 13,000 feet of pipe spiralling into the hard Niobrara shale with a diamond-tipped bit.

Their well, one of hundreds drilled by Anadarko Petroleum in eastern Colorado’s Wattenberg field this year, could someday gush as many as 800 barrels of crude oil a day. But Anadarko is not planning to produce a drop of crude from the well for at least another year because the price of oil is now so low.

The well here is just one of more than 4,000 drilled oil and natural gas wells across the country producing nothing, but ready to be tapped quickly."



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Continued signs of strength in UAE markets | GulfNews.com

Continued signs of strength in UAE markets | GulfNews.com:

"Last week the Dubai Financial Market General Index (DFMGI) was up 64.25 or 2.09 per cent to close at 3,137.32. Even with the shortened four-day trading week volume managed to almost match the prior week’s level. Most issues participated in the rally, with 27 advancing and only eight declining.

We had bullish upside follow-through last week from the bounce that started two weeks ago off a strong long-term support zone. The 2,851.24 low from two weeks ago identifies the key medium-term support level now. Multiple indicators verify the significance of that low, with the odds that it will hold for at least the near-term strengthened given last week’s price action. This means that a rally of some note has a good chance of occurring, and that, if and when that low is broken a new long-term bearish signal will be indicated.

After dipping earlier in the week the DFMGI managed to close at a two-week high and in the top quarter of the week’s range. Near-term resistance is the high of the week at 3,173.1. A rally above that price level will give the next bullish signal, with the next key area to watch for resistance starting around the three-week high of 3,227, and going up to the five-week high around 3,302."



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UAE investor outlook 2016: property, stocks, gold, personal debt, commodities | The National

UAE investor outlook 2016: property, stocks, gold, personal debt, commodities | The National:

"This year was tough for investors with volatile share prices, property market uncertainty and growing fears over China.

The UAE felt the impact as plunging oil and commodity stocks rattled the Middle East and spooked property investors.

Speculation leading up to the US Federal Reserve decision to finally raise interest rates only added to investor unease.

"



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Ukraine Budget Vote Seeks to Clear Way for Next IMF Tranche - Bloomberg Business

Ukraine Budget Vote Seeks to Clear Way for Next IMF Tranche - Bloomberg Business:

"Ukraine’s parliament approved next year’s budget as it seeks to clear the way for the government to receive delayed funds from a $17.5 billion bailout to help the economy recover from recession.
The budget, a compromise between lawmakers and the cabinet, was passed by 263 votes in the 450-seat legislature. It envisages a shortfall of 3.7 percent of gross domestic product, in line with demands set out by the International Monetary Fund.
“The budget approval is an important step to receive the next tranche from the IMF and other international financial aid linked to it,” the Finance Ministry said early Friday in an e-mailed statement as debates dragged on until 4 a.m. in Kiev. “However, the IMF’s experts will analyze separately whether the budget meets IMF program criteria.”"



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Egypt Raises Rates as Central Bank Sets Targets With Government - Bloomberg Business

Egypt Raises Rates as Central Bank Sets Targets With Government - Bloomberg Business:

"Egypt raised interest rates for the first time in more than a year in an attempt to curb inflation, and the central bank said it has agreed with the government to collaborate on designing policies that “will contribute positively to economic growth and job creation.”
The Monetary Policy Committee, headed by Governor Tarek Amer, increased the benchmark overnight deposit rate by 50 basis points to 9.25 percent, according to a statement on the central bank’s website. The overnight lending rate was also increased by the same amount to 10.25 percent. Headline urban inflation accelerated to 11.1 percent at the end of November, the highest in five months.
“The MPC judges that a rate hike is warranted to address inflationary pressures and anchor inflation expectations,” the bank said in the statement."



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Gulf states must ramp up pace of economic reforms | GulfNews.com

Gulf states must ramp up pace of economic reforms | GulfNews.com:

"The Gulf countries have to make some tough economic choices in 2016, with the focus likely to be on ensuring steady reforms to circumvent the impact from the extraordinarily low oil prices. The prices have been declining for 18 consecutive months and, seemingly, with no end in sight.

Changes to oil prices — in either direction — have their impact on economic choices.

The petroleum sector is essential for the well-being of GCC economies, being the primary source for treasury and export revenues. In fact, oil revenues provide the necessary financing for public expenditures."



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2015 the year of the dollar's reign, emerging market pain | Reuters

2015 the year of the dollar's reign, emerging market pain | Reuters:

"The dollar reigned supreme in 2015, having been pumped up all year by expectations of a rate rise the Federal Reserve finally delivered this week, while emerging markets, oil and metals have been the big losers.

The dollar index, which measures the greenback against other top currencies, is up 10 percent for the year, after gaining nearly 13 percent in 2014."



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