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Tuesday, 29 November 2016

Iran outlines proposal for Saudi output cuts ahead of Opec meeting

Iran outlines proposal for Saudi output cuts ahead of Opec meeting:
"An Opec meeting wouldn’t be an Opec meeting without some noisy negotiations – and Iran has just turned the volume up to 11.

It has demanded Saudi Arabia cut production to its November 2014 level of around 9.5m barrels a day – that’s around 1m barrels per day less than Riyadh is currently producing, report Anjli Raval and David Sheppard in Vienna.

The request was made in a letter sent to Opec’s secretariat and marks the latest tit-for-tat exchange between the two regional rivals ahead of Wednesday’s ministerial meeting in Vienna."

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City must apply EU rules to keep lead role, says eurogroup chief

City must apply EU rules to keep lead role, says eurogroup chief:
"The City of London risks losing its role as the continent’s premier financial centre unless the UK agrees to fully apply EU regulations post-Brexit, one of Europe’s most senior policymakers has warned.

The stance of Jeroen Dijsselbloem, who chairs the eurogroup of 17 eurozone finance ministers, would in effect scupper any attempt by Britain to negotiate a special deal for its financial industry to maintain prized “passporting” rights that allow UK-based banks to operate across the EU.

The remarks are some of the starkest yet about the difficult choice facing British negotiators, who may have to pick between retaining access to EU markets or having the freedom to attract business by lowering regulatory standards at home. Mr Dijsselbloem, the Dutch finance minister, was echoing warnings from other EU leaders that the UK would not be allowed to “have its cake and eat it”."

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MIDEAST STOCKS-Saudi pulls back with oil's retreat; profit-taking resumes in Egypt | Reuters

MIDEAST STOCKS-Saudi pulls back with oil's retreat; profit-taking resumes in Egypt | Reuters:
"Saudi Arabia's stock market gave up early gains by the close on Tuesday as oil prices pulled back, while other Gulf bourses were mixed. Profit-taking pulled Egypt' market lower after big gains this month.

The Saudi index has soared over 25 percent - almost entirely erasing its losses this year - since the government's $17.5 billion international bond issue in late October eased fears about its ability to cope with an era of cheap oil, and helped it begin making delayed payments to settle its debts to private companies.

In early trade on Tuesday the index rose as much as 0.7 percent. But Brent crude oil fell around 2 percent to below $47.50 a barrel on Tuesday afternoon on signs that oil exporters were struggling to agree a deal to cut production."

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Opec heavy-hitters rush to rescue supply deal

Opec heavy-hitters rush to rescue supply deal:
"Opec’s most powerful members were rushing on Tuesday to rescue a supply deal designed to end the longest oil price decline in a generation.

Saudi Arabia, Opec’s largest producer, and its arch rival Iran have set out their positions ahead of Wednesday’s ministerial meeting in Vienna, with the kingdom hinting it could walk away from a deal if its conditions are not met and Tehran publicly saying it cannot compromise on its production rights.

But after 10 hours of closed-door talks, delegates from the 14-member group made progress on Monday. There were signs of greater flexibility between the main players, which are trying to support prices that have more than halved since mid-2014."

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In OPEC’s High-Stakes Poker Game, Iran and Iraq Call Saudi Bluff - Bloomberg

In OPEC’s High-Stakes Poker Game, Iran and Iraq Call Saudi Bluff - Bloomberg:
"For decades, Saudi Arabia has had its way at OPEC. All of a sudden the position has turned: Riyadh finds its power waning against a resurgent Iran and Iraq.

As Organization of Petroleum Exporting Countries ministers meet Wednesday, Saudi Arabia is trying to reassert its authority by hinting it’s prepared to walk away from the negotiations. Genuine warning or bluff, Tehran and Baghdad may be willing to take the risk. Both have seen Saudi Arabia gain market share and neither is as dependent on oil prices as Riyadh.

"Iran and Iraq have assumed that Saudi Arabia will cut unilaterally because it wanted higher prices and thought they could put the Saudis into a corner," said Amrita Sen, chief oil analyst at Energy Aspects Ltd. "Riyadh has effectively said it isn’t in a corner and will not do a deal unless everyone else contributes.""

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Saudis Temper Call for Cuts and Russia Digs In - Bloomberg

Saudis Temper Call for Cuts and Russia Digs In - Bloomberg:
"OPEC surprised the market in September with a preliminary agreement to reduce supply to 32.5 million to 33 million barrels a day, breaking a two-year policy to pump at full throttle. The news pushed prices above $50 a barrel in New York for the first time since June, but optimism faded as subsequent meetings failed to decide cuts for individual members.

Ministers gather in Vienna Wednesday for final talks to hammer out a deal with several obstacles remaining. There’s still no agreed mechanism for Iran and Iraq to participate in an accord, while Libya and Nigeria -- both exempt from any cuts -- are boosting output, increasing the burden on other members. Russia, the biggest non-OPEC supplier, doesn’t plan to attend the Vienna talks even though several members have insisted it contribute to cuts.
OPEC’s output swelled to a record 33.6 million barrels a day last month. The group’s own estimates show that the September agreement would barely drain a record global oil surplus next year without the cooperation of producers outside the organization. "

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Saudi Arabian Wealth Fund Takes 50% Stake in Alabbar’s Adeptio - Bloomberg

Saudi Arabian Wealth Fund Takes 50% Stake in Alabbar’s Adeptio - Bloomberg:
"Saudi Arabia’s sovereign wealth fund is deepening ties with Dubai-based businessman Mohamed Alabbar by taking a 50 percent stake in his Adeptio investment vehicle.
The acquisition is part of the Public Investment Fund’s strategy to boost non-oil investments, according to a statement late Monday, which didn’t give financial details of the transaction. Adeptio is working on a takeover of fast food restaurant operator Kuwait Food Co., also known as Americana, and is set to begin a mandatory tender offer for the company’s shares after acquiring a 67 percent stake."

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UPDATE 1-State of Kuwait sends request for proposals for bond | Reuters

UPDATE 1-State of Kuwait sends request for proposals for bond | Reuters:
"The State of Kuwait has sent a request for proposals for a potential debut international bond, according to sources.

The sovereign is expected to issue next year, most likely in the US dollar market, continuing the spree of Gulf sovereign bond deals.

In October, bankers said that Kuwait was in no rush to fund overseas, according to Reuters. Finance Minister Anas al-Saleh had said in July the government planned to sell as much as US$10bn in conventional and Islamic bonds in international markets to help plug Kuwait's budget deficit for the current fiscal year, which will end on March 31."

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MIDEAST STOCKS-Saudi close to technical breakout; UAE firms in speculative trade | Reuters

MIDEAST STOCKS-Saudi close to technical breakout; UAE firms in speculative trade | Reuters:
"Saudi Arabia's stock market neared a bullish technical breakout in early trade on Tuesday while speculative activity in small caps boosted United Arab Emirates markets, though other bourses in the Gulf were little changed.

The Saudi index climbed 0.7 percent in the first half-hour to 6,950 points, its highest level since Jan. 3. A close above major technical resistance on the April peak of 6,876 points would confirm a major double bottom formed by the January and October lows and pointing up to around 8,400 points in the long term.

As on Monday, the banking and petrochemical sectors moved little and much activity focused on smaller stocks.

"

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