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Monday, 18 April 2016

Abu Dhabi Plans First Bond Since 2009 as Oil Curbs Finances - Bloomberg

Abu Dhabi Plans First Bond Since 2009 as Oil Curbs Finances - Bloomberg:

"Abu Dhabi, the capital of the United Arab Emirates, is sounding out investors about plans to issue bonds for the first time in more than seven years as the government seeks to bolster its finances against a slumping oil price.
The emirate, holder of about 6 percent of the world’s oil reserves, will hold meetings with fixed-income investors in the U.A.E., Europe and the U.S. starting April 19, according to a person with knowledge of the plan. A sale of dollar-denominated benchmark-sized Regulation S and 144A securities may follow, subject to market conditions, said the person, asking not to be identified because the information is private.
Abu Dhabi is the “highest-quality” credit in the Middle East and demand for the issue will be “strong from both local as well as international investors,” Apostolos Bantis, a credit analyst at Commerzbank AG, said by e-mail from Dubai. “Despite the drop in crude prices, the collapse of the latest oil talks, Abu Dhabi’s new bond issue should manage an attractive price that will set the stage for other government-related entities to follow.”"



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Kuwait Oil-Worker Strike Slashes Crude Production for Second Day - Bloomberg

Kuwait Oil-Worker Strike Slashes Crude Production for Second Day - Bloomberg:

"Kuwait was seeking to boost crude production as oil workers stayed off their jobs for a second day in a strike that’s slashed the OPEC member’s output by about 1.7 million barrels a day, an amount larger than the current global surplus. 
Oil production plunged 60 percent to 1.1 million barrels a day when the strike began on Sunday, while the state refining company slowed operations at its three oil-processing plants to less than 60 percent of their combined capacity. Kuwait Petroleum Corp.’s oil-production and refining units are working to restart units and raise fuel-processing rates to full capacity, officials said Monday.
The efforts came a day after more than a dozen of the world’s major oil producers failed to reach an agreement to freeze output in a bid to halt a price rout of more than 30 percent over the past year amid a global glut. Kuwait produced 2.81 million barrels a day last month, making it OPEC’s fourth-largest member, while worldwide supply exceeded demand by 1.6 million barrels in the first quarter, according to the International Energy Agency."



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MIDEAST STOCKS-Gulf ends firm despite Doha talks' failure; Egypt surges | Reuters

MIDEAST STOCKS-Gulf ends firm despite Doha talks' failure; Egypt surges | Reuters:

"Major stock markets in the Gulf rebounded in late trade on Monday to close higher despite the collapse of oil producers' talks in Doha, while Egypt's bourse surged to a six-month closing high.

The failure of Sunday's Doha meeting to agree on an oil output freeze was a blow to sentiment in the oil market, and Brent crude tumbled more than 5 percent at one stage. But it later came well off its lows to stand only 2.6 percent down at $42 a barrel.

This was a relief to Gulf bourses, which were also encouraged by some positive first-quarter earnings in Saudi Arabia that suggested the region's economic slowdown was not hurting corporate profits as much as feared."



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UAE’s Ipic terminates financial support agreement with Malaysia’s 1MDB | The National

UAE’s Ipic terminates financial support agreement with Malaysia’s 1MDB | The National:

"International Petroleum Investment Company (Ipic) said on Monday a June agreement to provide financial support to Malaysia’s 1MDB had been terminated after the troubled sovereign vehicle failed to meet obligations to the Abu Dhabi fund.

Ipic said in a bourse filing in London that the Malaysian state fund and the Asian country’s Ministry of Finance had failed to meet obligations including to pay $1.1 billion plus interest and was now in default.

While the obligations of Ipic and its subsidiary, Aabar Investments, under the June agreement had now been terminated, the Abu Dhabi fund still expected the Malaysian side to honour its commitments.

"



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Abu Dhabi picks banks for benchmark dollar bond – leads | GulfNews.com

Abu Dhabi picks banks for benchmark dollar bond – leads | GulfNews.com:

"The Emirate of Abu Dhabi has mandated banks to arrange a benchmark-sized US dollar bond issue, according to a document from lead managers, marking the sovereign’s return to the international bond market after an absence of seven years.

Abu Dhabi has hired Bank of America-Merrill Lynch, Citigroup and JP Morgan to organise investor meetings in the UAE, Europe and the United States starting from Tuesday, the document showed.

A 144A/Reg S deal, which allows the securities to be sold in the United States, may follow subject to market conditions."



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Oil Outlook: How Low Will the Price Go? - Bloomberg

Oil Outlook: How Low Will the Price Go? - Bloomberg:

"Abhishek Deshpande, oil and oil products research lead at Natixis, and Vasileios Gkionakis, global head of FX strategy at UniCredit, discuss the outlook for oil prices following the failed Doha meeting over the weekend, oil production and currency pegs in the Middle East. They speak to Bloomberg's Anna Edwards and Manus Cranny on "Countdown." (Source: Bloomberg)"



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MIDEAST STOCKS-Saudi shares drop moderately after oil tumbles | Reuters

MIDEAST STOCKS-Saudi shares drop moderately after oil tumbles | Reuters:

"Saudi Arabia's stock market fell moderately in early trade on Monday after oil producers meeting in Doha on Sunday caused crude prices to tumble, although some stocks rose on the back of better-than-expected earnings.

Brent futures are trading at $41.15 per barrel, down 4.6 percent from their last settlement.

The failure of the Doha meeting to agree on an oil output freeze may not make a huge difference to prices in the long term - analysts thought a freeze would have had only a minor impact on market conditions."



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MIDEAST STOCKS-UAE stocks fall after Doha oil talks failure | Reuters

MIDEAST STOCKS-UAE stocks fall after Doha oil talks failure | Reuters:

"Stock markets in the United Arab Emirates fell in early trade on Monday after the collapse of Sunday's talks between oil producers in Doha caused crude prices to tumble.

Dubai's stock index sank 2.0 percent in the first 15 minutes with Emirates NBD, the largest bank, losing 5.0 percent and builder Drake & Scull down 2.7 percent.

But Shuaa Capital, which has been rising for a month partly on rumours that a shareholder is building a major stake, added 2.8 percent."



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Five questions in the wake of Doha - FT.com

Five questions in the wake of Doha - FT.com:

"Talks between some of the world’s biggest oil producers on a deal to freeze output collapsed on Sunday evening after Saudi Arabia insisted Iran, a fierce regional rival, be part of any agreement. Here are five questions oil market participants will now be asking.
How far will the price of oil fall?

Crude oil has jumped more than 40 per cent since mid-February when Saudi Arabia, Russia, Venezuela and Qatar first announced plans for an output freeze. While other factors have played a part in driving prices back above $40 a barrel there’s no doubt the prospect of the first global oil deal in 15 years was a key driver."



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Oil prices tumble after Saudi-Iran tensions sink output deal | Reuters

Oil prices tumble after Saudi-Iran tensions sink output deal | Reuters:

"Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.

Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts.

"OPEC's credibility to coordinate output is now very low," said Peter Lee, oil analyst at BMI Research, a unit of rating agency Fitch. "But this isn't just about oil for the Saudis. It's as much about regional politics.""



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Oil slides after Saudi opposition blocks talks on output freeze - FT.com

Oil slides after Saudi opposition blocks talks on output freeze - FT.com:

"Oil prices sank after attempts by some of the world’s biggest producers to freeze output ended without a deal on Sunday night with Saudi Arabia insisting Iran should be part of any agreement.

Crude oil fell as much as 7 per cent in early trading on Monday in Asia before recovering slightly.

Talks in Doha aimed at achieving the first global oil deal in 15 years had appeared to be on course on Sunday. They broke up late in the day as ministers failed to overcome opposition from Riyadh, which had hardened its stance in recent days."



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