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Sunday, 11 December 2016

Global oil pact underscores Saudi-Russian energy alliance

Global oil pact underscores Saudi-Russian energy alliance:
"The first global crude supply pact in 15 years has underlined the growing energy alliance between Saudi Arabia and Russia, as the depth of the two-year oil slump forces co-operation between once unlikely partners.

Russia led the main oil producers from outside the Opec cartel, including Mexico and Kazakhstan, in a deal signed this weekend to reduce supply by 568,000 barrels a day — with Moscow, the largest non-Opec exporter, agreeing to shoulder just over half the cut.

The agreement follows almost a year of petro-diplomacy that led Russian president Vladimir Putin and Saudi Arabian leaders to put aside differences over the war in Syria as their economies struggle to adapt to the halving in oil prices since mid-2014."

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Iran signs $16bn deal to buy 80 Boeing aircraft - BBC News

Iran signs $16bn deal to buy 80 Boeing aircraft - BBC News:
"State airline Iran Air says it has signed a deal to buy 80 passenger planes from US aircraft maker Boeing.
The 10-year deal includes 50 of the 737 MAX 8 aircraft, and 15 of the 777-300 ERs planes plus 15 777-9s jets.
It is the biggest US-Iran deal since the 1979 Islamic revolution."

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MIDEAST STOCKS-Saudi, Qatar gain after OPEC agrees with non-OPEC oil producers | Reuters

MIDEAST STOCKS-Saudi, Qatar gain after OPEC agrees with non-OPEC oil producers | Reuters:
"Stock markets in Saudi Arabia and Qatar posted broad-based gains on Sunday after OPEC and non-OPEC oil producers a day earlier reached their first deal since 2001 to curtail oil output jointly in a drive to prop up prices.

It is not clear whether oil prices can rise much further in response to the deal, and many fund managers think Saudi petrochemical shares are to a large extent now fairly valued after their rebound in the past six weeks.

Nevertheless, the oil producers' deal supported fresh buying of stocks and the main Saudi index added 1.1 percent to 7,198 points, its highest close this year, in heavy trade."

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World’s biggest wealth fund girds for rise in political risk - Livemint

World’s biggest wealth fund girds for rise in political risk - Livemint:
"Investment risks related to political upheaval and climate change are on the rise, the world’s biggest sovereign wealth fund warned.

“If you look at the physical risk issues, the stress is going to increase around the world, on the fiscal side as well,” Dag Huse, chief risk officer of Norway’s $870 billion wealth fund, said in an interview in Oslo on Friday. “Coupled with political uncertainties, that’s of course an important issue. In isolation, all geopolitical developments are high on our agenda in general. It’s something we discuss from day to day.”

Huse declined to single out any particular political event in 2016, the year electoral results shocked observers with the UK’s decision to exit the European Union and US voters choosing Donald Trump for president. Geopolitical risk has been especially high on the fund’s radar starting with the financial crisis in 2008 and 2009, he said."

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Qatar to merge state-owned giant gas producers | The National

Qatar to merge state-owned giant gas producers | The National:
"Qatar, the world’s largest liquified natural gas producer, announced on Sunday it is to merge state-owned Qatargas and RasGas to create a "truly unique global energy operator".

Saad Sherida Al Kaabi, president and chief executive of state-owned Qatar Petroleum, said the move to the merger would begin right away and the companies would begin operating under a single entity, named Qatargas, within 12 months.


He said the move would save "hundreds of millions of dollars"."

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Saudis signal deeper oil cuts after deal with non-Opec countries | GulfNews.com

Saudis signal deeper oil cuts after deal with non-Opec countries | GulfNews.com:
"Saudi Arabia signalled it’s ready to cut oil production more than expected, a surprise announcement made minutes after Russia and several non-other Opec countries pledged to curb oil production next year.
Taken together, the Organisation of Petroleum Exporting Countries’s first deal with its rivals since 2001 and the Saudi comments represent a forceful effort by producers to wrest back control of the global oil market, depressed by persistent oversupply and record inventories.
“This is shock and awe by Saudi Arabia,” said Amrita Sen, chief oil analyst at Energy Aspects in London. “It shows the commitment of Riyadh to rebalance the market and should end concerns about Opec delivering the deal.”
"

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Dubai's DEWA gets finance for $3.4 bln coal power plant | Reuters

Dubai's DEWA gets finance for $3.4 bln coal power plant | Reuters:
"Dubai Electricity and Water Authority has closed the financing package that will back the construction of a 2,400 megawatt coal-fired power plant in the emirate, according to a statement from one of the developers on Sunday.

The Hassyan plant will be developed through a joint venture, with the Dubai utility firm holding a 51 percent stake and the rest split between China's Harbin Electric and Saudi Arabia's ACWA Power (IPO-ACWA.SE).

The financing package is divided between a senior secured loan and secured mezzanine financing, ACWA said. It did not specify exactly how much of the project's $3.4 billion cost would be covered by the package but previously, officials had indicated around 80 percent would be provided by commercial bank loans.

"

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Oil slump prompts Gulf states to take shine off cushy government jobs | Reuters

Oil slump prompts Gulf states to take shine off cushy government jobs | Reuters:
"Ahmed, a Qatari civil servant, used to arrive at his office at a government ministry in Doha late in the morning and leave for home after lunch, collecting a monthly salary of 40,000 rial ($11,000) and a generous housing and travel allowance.

But last month a government official made a surprise spot check on the ministry's offices and found dozens of employees absent.

"Punctuality is a duty," said a letter Ahmed received from the minister's office. "Qatar expects the best of its citizens.""

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OPEC, non-OPEC agree first global oil pact since 2001 | Reuters

OPEC, non-OPEC agree first global oil pact since 2001 | Reuters:
"OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries.

With the deal finally signed after almost a year of arguing within the Organization of the Petroleum Exporting Countries and mistrust in the willingness of non-OPEC Russia to play ball, the market's focus will now switch to compliance with the agreement.

OPEC has a long history of cheating on output quotas. The fact that Nigeria and Libya were exempt from the deal due to production-denting civil strife will further pressure OPEC leader Saudi Arabia to shoulder the bulk of supply reductions."

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