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Wednesday, 21 December 2016

Brent curve signals oil tanks will start emptying in second half of 2017: Kemp | Reuters

Brent curve signals oil tanks will start emptying in second half of 2017: Kemp | Reuters:
"OPEC and non-OPEC oil producers have agreed to reduce their combined output by more than 1.7 million barrels per day for six months from January 2017.

But the agreement contains a provision that it can be extended for a further six months, subject to market conditions.

Oil traders are betting on an extension, with most of the rebalancing of the oil market expected to occur in the second half of 2017."

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Saudis to Unveil Roadmap to Balanced Budget, Possible Surplus - Bloomberg

Saudis to Unveil Roadmap to Balanced Budget, Possible Surplus - Bloomberg:
"Saudi authorities will on Thursday unveil steps to balance one of the highest budget deficits in the Middle East and possibly achieve a surplus in 2020, according to a senior government official with knowledge of the matter.

The plan will focus on bolstering non-oil revenue and will seek to shield middle- and low-income earners from the impact of the planned measures, the official said on condition of anonymity. The economic council chaired by Deputy Crown Prince Mohammed bin Salman devised the plan, the official said."

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MIDEAST STOCKS-Saudi market rises before 2017 budget, Egypt extends bull run | Reuters

MIDEAST STOCKS-Saudi market rises before 2017 budget, Egypt extends bull run | Reuters:
"Saudi Arabia's stock market rose on Wednesday on the eve of the government's release of its 2017 budget, and Egypt's extended a bull run fuelled by foreign money and last month's float of the Egyptian pound.

The Saudi stock index climbed 0.4 percent, though trading volume shrank to its lowest level in two months as many investors became cautious before the budget announcement.

Sources familiar with budget planning told Reuters the government would reveal substantial progress in cutting the budget deficit from a record high in 2015, and that state spending would be raised to support economic growth. Domestic energy prices are expected to be increased to ease the government's subsidy burden."

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Saudi Arabia Plans Payouts to Offset Subsidy Cuts in 2017 - Bloomberg

Saudi Arabia Plans Payouts to Offset Subsidy Cuts in 2017 - Bloomberg:
"Saudi Arabia is weighing plans to raise retail fuel prices again next year and will start a cash-transfer program to compensate all but the wealthiest for cuts in universal subsidies as it pursues an unprecedented plan to overhaul the economy.

The government is expected to announce the increase in retail gasoline and diesel prices before the end of the year, a person familiar with the matter said. Families affected by the measures can register for cash transfers from Feb. 1 and the payments will start in June, according to two people familiar with the plan. The two spoke on condition of anonymity because they’re not authorized to release the details.

Government officials weren’t immediately available for comment."

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Inside Brexit: How Britain lost Europe

Consolidation among UAE brokerages is the need of the hour | The National

Consolidation among UAE brokerages is the need of the hour | The National:
"Some sectors are more stressed than others and the brokerage sector in the UAE is one of them. Just as the UAE is overbanked, it is also overbrokered.

Built on soaring volumes and value traded before the global financial crisis, the industry was aided by heavy retail participation mostly trading for speculative purpose than investing reasons. Lack of investor sophistication meant more volume and value traded and, hence, juicy commissions. No wonder more than 100 players were attracted to set up in what was thought to be a super growth industry. The narrative has changed completely now thanks to the global financial crisis and low oil prices.


Despite its recent rally, the price of a barrel of Brent crude, at US$55.25 yesterday afternoon, is still more than half its peaks of mid-2014. And the Dubai Financial Market General Index is about 43 per cent below its peak level in 2008."

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Etihad Airways to review European investment strategy | GulfNews.com

Etihad Airways to review European investment strategy | GulfNews.com:
"Abu Dhabi-based Etihad Airways is reviewing its strategy of investing in European airlines and is seeking an exit in a shake-up that could lead to the departure of CEO James Hogan, company and industry sources told Reuters on Tuesday.
Etihad saw a strategy to take equity stakes in carriers like Air Berlin, Alitalia and Air Serbia as a way to expand its European network but losses have mounted with Air Berlin and Alitalia failing to turn a profit.
Etihad announced on Sunday it was cutting jobs, with local rival Emirates following a day later in reviewing its workforce as overcapacity and a stronger dollar squeeze earnings."

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UAE construction sector needs to show more patience | GulfNews.com

UAE construction sector needs to show more patience | GulfNews.com:
"Contractors in the UAE shouldn’t look to the new year and an Expo 2020 project ramp-up for an immediate lift in industry fortunes. Whatever gains there are will emerge in a more measured way, says a senior industry source. “At the moment, it doesn’t feel like a whole barrage of projects,” said Colin Timmons, CEO at Al Naboodah Construction Group. “There will be work other than Expo 2020.
“Tenders are coming through, (but) the process from tendering to winning takes a lot of time. Clients want to look at value engineering for the most economic solutions.”
For more than a year now, the construction sector had been waiting on an Expo 2020-induced boost to get ample funds to once again flow into the sector and ease pressure on payment delays and profitability."

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Exclusive: Saudi budget to boost spending, raise domestic fuel prices - sources | Reuters

Exclusive: Saudi budget to boost spending, raise domestic fuel prices - sources | Reuters:
"Saudi Arabia's state budget for 2017, which is expected to be released on Thursday, will boost spending to support economic growth while raising domestic energy prices to ease the government's subsidy burden, sources told Reuters.

The government is expected to announce its budget deficit fell sharply this year to 297 billion riyals ($79.2 billion), the sources, who are familiar with the budget planning, said on Wednesday.

That would allow Riyadh to claim substantial success in its battle to reduce a huge deficit caused by low oil prices. The deficit totaled a record 367 billion riyals in 2015, and the original budget for this year projected a 326 billion riyal gap."

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Saudis Seen Accelerating Sunward Tilt in Charge for Oil Revenue - Bloomberg

Saudis Seen Accelerating Sunward Tilt in Charge for Oil Revenue - Bloomberg:
"Saudi Arabia’s long-awaited drive to free up more oil revenue by shifting to solar power generation is expected to pick up speed next quarter, according to local developers eyeing contracts.

“I’m fully expecting within the first quarter 500 megawatts to come out in tenders and then it’ll ramp up,” said Paddy Padmanathan, the chief executive officer of Acwa Power International in Riyadh. “That will be a game changer for the region.”

The world’s biggest crude exporter also burns more oil than any other country to generate electricity. According to the most recent International Energy Agency figures, the kingdom consumes at least 900,000 barrels a day to keep the lights on -- an amount worth over $16 billion a year based on current oil spot prices. Integrating more solar power onto the Saudi grid could free up more crude for export."

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Franklin Templeton Likes U.A.E., Egypt in Mideast Stocks Outlook - Bloomberg

Franklin Templeton Likes U.A.E., Egypt in Mideast Stocks Outlook - Bloomberg:
"The United Arab Emirates and Egypt are the Middle East stock markets poised to perform best in 2017, said Bassel Khatoun, Franklin Templeton Investments’ chief investment officer for Middle East and North Africa equity. Khatoun, who manages $87 million in stocks from the region out of Dubai, gave his calls on key markets in the region next year in a Dec. 19 interview.

United Arab Emirates -- Overweight

Areas like tourism, finance, hospitality, trade should continue to grow. And the Expo 2020 in Dubai will serve as a concrete deadline for a lot of that infrastructural spending. Most of the liquidity issues in the country will be overcome, and the banks are operating quite healthy balance sheets. Its growing size on MSCI EM will also continue to attract investors."

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MIDEAST STOCKS-Gulf edges up before Saudi budget, Egypt continues bull run | Reuters

MIDEAST STOCKS-Gulf edges up before Saudi budget, Egypt continues bull run | Reuters:
"Gulf stock markets edged up early on Wednesday ahead of the release of Saudi Arabia's state budget for 2017, which is expected on Thursday.

Egypt's stock market continued its bull run.

The Saudi stock index edged up 0.3 percent in the first 90 minutes of trade.

"

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