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Sunday, 23 October 2016

Iraq Balks at Joining OPEC Cuts, Making Oil Output Deal Harder - Bloomberg

Iraq Balks at Joining OPEC Cuts, Making Oil Output Deal Harder - Bloomberg:

"OPEC’s second-largest producer threw an obstacle in the group’s path toward a final deal to stabilize oil markets when Iraq balked at joining efforts to trim output to prop up crude prices.
Iraq should be exempted from cutting production because it’s embroiled in a war with Islamic militants, Oil Minister Jabber Al-Luaibi said Sunday at a news conference in Baghdad. The country currently produces more than 4.7 million barrels a day it pumped in September, and Iraq’s output could rise higher still as the government urges international companies to boost production at its fields, he said. The minister disputed Organization of Petroleum Exporting Countries figures that peg Iraqi output at less than 4.2 million barrels daily.
“We are with OPEC policy and OPEC unity,” Al-Luaibi said. “But this should not be at our expense.” A meeting in Algeria last month of the group’s 14 members stretched to seven hours as Iraq argued over the level of production that should be used as a baseline for setting quotas."



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Dubai's Mashreq Q3 net profit falls 24.8 pct as bad loans weigh | Reuters

Dubai's Mashreq Q3 net profit falls 24.8 pct as bad loans weigh | Reuters:

"Mashreq continued its earnings slump on Sunday as Dubai's third-biggest lender by assets posted a 24.8 percent fall in third-quarter net profit, weighed by putting aside more cash to cover for bad loans.

The lender made a net profit of 414.95 million dirhams ($112.98 million) in the three months to Sept. 30, it said in a statement, a decrease on the 551.44 million dirhams recorded for the corresponding period of 2015.

Mashreq, which had reported falling profits in the preceding four quarters, suffered in the latest quarter as allowances for impairments jumped by 82 percent over the period to reach 470 million dirhams."



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Saudi Arabia looks to Russia to boost non-OPEC cooperation | Reuters

Saudi Arabia looks to Russia to boost non-OPEC cooperation | Reuters:

"Saudi Arabia's Energy Minister Khalid al-Falih said on Sunday he had invited his Russian counterpart Alexander Novak to meet Gulf Arab energy ministers in Riyadh as part of efforts to cooperate with non-OPEC members to stabilize the oil market.

"Russia is one of the world's biggest oil producers ... and is one of the influential parties in the stability of the oil market," Falih said at the opening session of the six-member Gulf Cooperation Council (GCC).

Falih said Novak had welcomed the invitation, "as a clear indication of sincere desire to continue cooperation and coordination with the oil producing and exporting countries for more stability in the market.""



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Saudi retailer Jarir says retail slump may be near ending | Reuters

Saudi retailer Jarir says retail slump may be near ending | Reuters:

"The slump in Saudi Arabia's retail sector may be close to ending as consumption starts to stabilize after shrinking because of low oil prices and government austerity policies, the chairman of one of the kingdom's biggest retail chains said.

"We think the sharp decline is fundamentally over, or will be over by the end of this year," said Muhammad Alagil, chairman of Jarir Marketing Co 4190.SE, which focuses on selling consumer electronics, books and office supplies.

Next year, the company may be able to grow both profit and sales at rates in the high single digits or low double digits, he added - though much of that growth would come from opening new stores rather than increasing business at existing outlets."



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MIDEAST STOCKS-Buoyant investor sentiment lifts Saudi, Egypt cools | Reuters

MIDEAST STOCKS-Buoyant investor sentiment lifts Saudi, Egypt cools | Reuters:

"Major stock markets in the Gulf rose on Sunday with Saudi Arabia outperforming it peers, continuing to climb on the back of upbeat investor sentiment following the mammoth international bond sale at the end of last week. Egypt's index slipped on profit taking.

Riyadh's index added a further 1.6 percent, taking its gains since Wednesday to 5.1 percent as a little over 80 percent of the traded shares rose.

Banks continued their climb with Saudi Hollandi Bank gaining 3.4 percent. At the end of last week bank shares rallied after the kingdom conducted a $17.5 billion international bond sale with success."



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'We're Doomed To Bankruptcy Unless Changes Made,' Says Saudi Official

'We're Doomed To Bankruptcy Unless Changes Made,' Says Saudi Official:

"It’s common knowledge for anybody that follows international news that the more than two year long roil in global oil markets has caused pain across the oil sector, with little immunity offered.

Oil majors have lost billions, globally over 350,000 layoffs in the oil sector have ensued – while oil producing nations, ranging from U.S. shale oil producers, to various OPEC members, to the world’s largest oil producer Russia – have felt the pain.

Saudi Arabia, once thought immune to any prolonged downturn in oil prices, has also felt the pinch as prices have trended downward from $115 per barrel in mid-2014, to dipping into the $20s-range in January and now hovering in the high $40s to low $50s range."



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Asset quality in Saudi, Qatar and the UAE most resilient to oil shock | GulfNews.com

Asset quality in Saudi, Qatar and the UAE most resilient to oil shock | GulfNews.com:

"Banks in Saudi Arabia, Qatar and the UAE are better placed than other Gulf Cooperation Council (GCC) peers to cope with an eventual deterioration in asset quality brought about by a prolonged period of weak oil prices, according to rating agencies.
“We examined the impact of lower for longer oil prices on asset quality across the region and concluded that loss-absorption capacity in the Saudi banking sector ranks highest among GCC countries and that both Saudi Arabia and Qatar would continue to offer the soundest lending opportunities under that scenario, suggesting impaired loan ratios should increase more slowly in these countries than their peers,” Analysts with Fitch ratings wrote in a recent note.
While the operating environment for banks is expected to soften, Moody’s expect the UAE banks’ solid profitability and capitalisation levels are expected to provide protection against rising problem loans, while sufficient liquidity will cushion against reduced flows of government deposits into the banking system as lower oil prices impact government revenues, according to Moody’s."



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Worst Is Over for Dubai Property as Buyers Return, Nakheel Says - Bloomberg

Worst Is Over for Dubai Property as Buyers Return, Nakheel Says - Bloomberg:

"Dubai’s property market is bottoming out as buyers return to the market and the emirate offers an alternative to investors worried about the U.K.’s Brexit vote, according to Nakheel PJSC Chairman Ali Rashid Lootah.
“I think the worst is over,” he said in an interview in Singapore. “Dubai is growing, we are seeing signs of more inquiries -- serious inquiries -- and I think that’s a sign of recovery. The market is maturing, we are seeing more serious, cautious investors, not speculators.”
Real estate sales in the emirate fell almost 30 percent by value in the first seven months of the year, according to data from the Dubai Land Department, as a slump in oil prices led to an economic slowdown in Gulf countries. Real estate analysts see either a flat market or a further slowdown in 2017 with Jesse Downs, managing director at real estate consultant Phidar Advisory predicting a 10 percent drop in values after a 7 percent slide this year."



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MIDEAST STOCKS-Gulf firms with Saudi outperforming on continued optimism | Reuters

MIDEAST STOCKS-Gulf firms with Saudi outperforming on continued optimism | Reuters:

"Stock markets in the Gulf firmed in early trade on Sunday with one of the main property developers in Saudi Arabia jumping on strong quarterly results and banking shares continuing their climb.

Riyadh's index added a further 0.7 percent in the first half an hour as Dar Al Arkan jumped 6.5 percent in the first 15 minutes of trade after it reported a 21.4 percent rise in third-quarter net profit to 112.5 million riyals ($30.0 million), double the forecast by analysts at NCB Capital.

The company attributed the rise to higher revenues from property sales and lower operating expenses, such as payroll and consultancy fees."



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