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Sunday, 3 April 2016

A former Opec insider tells how global oil pricing got flipped on its head | The National

A former Opec insider tells how global oil pricing got flipped on its head | The National:

"From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.

That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains.

Today, the producers who used to be price setters through supply control can produce only what costs less than the market price, which they no longer influence. Things will become normal only when we have the horse back before the cart."



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Oil slump has no impact on UAE economy, minister says | GulfNews.com

Oil slump has no impact on UAE economy, minister says | GulfNews.com:

"While the current slump in the world oil prices has posed a real challenge to oil-exporting countries, it did not have any impact on the UAE’s economy, thanks to the economic diversification policy adopted by the country, Suhail Mohammad Faraj Al Mazroui, Minister of Energy, said yesterday.

“Low oil prices should create investment opportunities in non-oil sectors for the purpose of diversifying the economy,” the minister said as he chaired the delegation to the second UAE-Russia Taskforce Meeting held in St. Petersburg to explore the prospects of joint co-operation and investment.

Abu Dhabi hosted the first meeting in November 2015."



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MIDEAST STOCKS-Gulf markets retreat as oil tumbles again; Egypt ends flat | Reuters

MIDEAST STOCKS-Gulf markets retreat as oil tumbles again; Egypt ends flat | Reuters:

"Gulf stock markets retreated on Sunday after Brent crude oil pulled back below $39 a barrel, while Egypt's bourse erased early gains.

Brent fell 3 percent last week, although it finished the first quarter up 6 percent. In response, Riyadh's stock index fell 1.6 percent to a five-week low of 6,126 points, breaking technical support at its mid-March low of 6,202 points.

From Sunday, the Saudi market started trading at 10 a.m. local time (0700 GMT), an hour earlier than previously, and closed at 4 p.m. local time, half an hour earlier, as part of efforts to develop the market and link trading with other regional bourses."



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UAE banks’ solvency profiles stronger than those of GCC peers | GulfNews.com

UAE banks’ solvency profiles stronger than those of GCC peers | GulfNews.com:

"Amidst challenging operating conditions, the UAE’s more diversified economy and the macro-prudential initiatives in real estate and banking regulations since the 2008 global financial crisis will support the solvency profiles of banks, according to rating agency Moody’s.

With the oil slump still pressuring the funding environment for lenders across the GCC, the UAE banking sector remains moderately exposed to a prolonged period of low oil prices.

Deposit growth is expected to slow significantly to around 3 per cent, down from the 2012-14 levels of around 10 per cent."



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MIDEAST STOCKS-Saudi falls after oil retreats, Egypt edges up | Reuters

MIDEAST STOCKS-Saudi falls after oil retreats, Egypt edges up | Reuters:

"Investors in Saudi Arabia sold stocks in early trade on Sunday after oil prices retreated at the end of last week and because of uncertainty over economic policy, while Egypt's bourse edged up.

Riyadh's index fell 1.5 percent in the first hour of trade. Saudi deputy crown prince Mohammed bin Salman told Bloomberg at the weekend that the Public Investment Fund would eventually control more than $2 trillion, partly by taking over shares in national oil giant Saudi Aramco, as it expanded to earn the government more income from investments.

There is uncertainty over how this process would be managed and the effect on the stock market."



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MIDEAST STOCKS-Gulf markets pull back after oil slides | Reuters

MIDEAST STOCKS-Gulf markets pull back after oil slides | Reuters:

"Stock markets in the Gulf pulled back in early trade on Sunday as investors reacted to a 4 percent tumble by oil prices at the end of last week by selling shares which had rebounded strongly in the first quarter.

Saudi Arabia will agree to freeze crude oil production levels only if Iran and other major producers do so, the kingdom's deputy crown prince said in an interview with Bloomberg. Brent crude settled at $38.67 a barrel on Friday; it fell 3 percent for the week but finished the first quarter up 6 percent.

Dubai's index fell 1.2 percent in the first 50 minutes of trade on Sunday. Arabtec and property developer Union Properties were down 1.2 percent and 0.5 percent respectively."



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