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Thursday, 14 April 2016

Corporate winners and losers amid the oil price crash - FT.com

Corporate winners and losers amid the oil price crash - FT.com:

"Oil price crashes have profound consequences. The fall in crude after the 1997 Asian financial crisis ushered in today’s oil and gas supermajors after a flurry of megamergers that included BP’s tie-up with Amoco, Exxon with Mobil and Texaco with Chevron.

The latest collapse in oil is having an enormous impact — even though the benchmark Brent price has rebounded in 2016, it is still about 60 per cent down since mid-2014.

But the consequences of this oil decline have not been the ones that history might suggest would occur, either within or outside the oil industry."



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Business leaders debate Brexit | FT World - YouTube

Business leaders debate Brexit | FT World - YouTube: ""



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Saudi Arabia and its US dollar peg dilemma | The National

Saudi Arabia and its US dollar peg dilemma | The National:

"The fall in oil prices has strained Arabian Gulf countries’ cur­rency policy, and increased the cost of carrying a US dollar peg.

Most GCC countries are pegged to the US dollar to avoid currency fluctuation and eliminate uncertainties in international transactions (Kuwait is pegged to a basket of currencies dominated by the US dollar).

This comes at the expense of monetary policy flexibility. Stable domestic currency and a fixed exchange rate imply that traders do not have to face currency risks, and therefore will be more willing to invest and facilitate trade. Since oil is the chief commodity in the GCC, and the oil price is fixed in dollars, any exchange rate fluctuation could drastically reduce revenue if the currencies were unpegged."



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Limited impact from oil output freeze at Doha | GulfNews.com

Limited impact from oil output freeze at Doha | GulfNews.com:

"A deal to freeze oil production by Opec and non-Opec producers will have a limited impact on global supply and markets are unlikely to rebalance before 2017, the International Energy Agency (IEA) said on Thursday.

The IEA, which oversees the energy policies of industrialised nations, said even though the decline in U.S. output was gathering pace and Iran was not adding as many barrels as expected, the world would still produce more oil than it consumes throughout 2016.

Oil has collapsed since mid-2014 to as low as $27 per barrel, from as high as $115, due to booming Opec and U.S. supplies.

"



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How Saudi Arabia plans to shake up its economy | Reuters

How Saudi Arabia plans to shake up its economy | Reuters:

"In late February, several hundred Saudi officials, company executives and foreign consultants gathered in a luxury Riyadh hotel to discuss how Saudi Arabia's economy could survive an era of cheap oil.

One company manager at the event told Reuters that officials from about 30 Saudi government bodies manned booths in which they described their challenges. Corporate bosses were encouraged to "figure out ways to do partnerships to address those needs, to offer feedback, to complain, and to plan future ventures or even just future meetings," the manager said. "It was like a private sector version of a national parliament."

The workshop was part of Saudi government attempts to work out how to restructure the economy so it no longer relies on oil."



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MIDEAST STOCKS-Gulf rises after strong earnings, foreigners buy Egypt | Reuters

MIDEAST STOCKS-Gulf rises after strong earnings, foreigners buy Egypt | Reuters:

"Gulf stock markets rose on Thursday after strong corporate earnings in Saudi Arabia and Oman, while Egypt climbed moderately as foreign investors accumulated shares.

Saudi companies tend to announce first-quarter earnings slightly earlier than firms elsewhere in the Gulf, and some positive surprises suggest the damage to the region caused by low oil prices may not be quite as bad as feared.

Petrochemical firm Yanbu (Yansab) jumped 1.2 percent after it reported a 41-percent rise in net profit to 402 million riyals ($107 million), far exceeding analyst forecasts."



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Limited impact from oil output freeze at Doha | GulfNews.com

Limited impact from oil output freeze at Doha | GulfNews.com:

"A deal to freeze oil production by Opec and non-Opec producers will have a limited impact on global supply and markets are unlikely to rebalance before 2017, the International Energy Agency (IEA) said on Thursday.

The IEA, which oversees the energy policies of industrialised nations, said even though the decline in U.S. output was gathering pace and Iran was not adding as many barrels as expected, the world would still produce more oil than it consumes throughout 2016.

Oil has collapsed since mid-2014 to as low as $27 per barrel, from as high as $115, due to booming Opec and U.S. supplies.

"



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MIDEAST STOCKS-Gulf markets upbeat; Dubai's Emaar surges | Reuters

MIDEAST STOCKS-Gulf markets upbeat; Dubai's Emaar surges | Reuters:

"Strong earnings lifted stock markets in Saudi Arabia and Oman in early trade on Thursday, while Emaar Properties supported Dubai's index after it announced a planned exit from an Indian partnership.

Saudi's Yanbu (Yansab) jumped 3.9 percent after the petrochemical firm reported a 41 percent jump in net profit to 401.9 million riyals ($107.21 million), beating analysts' average forecast of 310.8 million riyals. Yanbu is the second petchem to report quarterly earnings this season.

Shares in Saudi Basic Industries, which has a stake of over 50 percent in Yansab, were up 0.3 percent.

"



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Commodities traders forced to adapt | FT Markets - YouTube

Commodities traders forced to adapt | FT Markets - YouTube: ""



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