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Monday, 9 January 2017

Oil in retreat towards $55 as bullish bets stall

Oil in retreat towards $55 as bullish bets stall:
"Oil prices slid towards $55 a barrel on Monday as fears mounted that funds betting on a price rally have started to pare back positions, with traders waiting for more evidence that Opec supply cuts will be substantial enough to balance the market.

By the end of December hedge funds had amassed the biggest ever bet across international marker Brent and US benchmark West Texas Intermediate that prices would continue to rise, contributing to a 30 per cent rally in the last two months of 2016.

However, the latest exchange and regulatory data indicates the momentum generated by funds has stalled, with some starting to add short positions that would benefit if prices reversed while the accumulation of longs has slowed."

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MIDEAST STOCKS-Egypt corrects, Saudi extends losses and UAE outperforms | Reuters

MIDEAST STOCKS-Egypt corrects, Saudi extends losses and UAE outperforms | Reuters:
"Egypt's main stock index corrected on Monday as local traders booked profits and Gulf markets diverged with United Arab Emirates markets outperforming as traders focused on financial shares while a retreat in oil prices weighed on Saudi Arabian petrochemical producers.

Cairo's main index fell 0.9 percent, snapping four straight sessions of gains. Local institutions were net sellers of Egyptian shares by a large margin, while foreign funds were net buyers, bourse data showed.

Many analysts believe this is a normal correction, not uncommon after a market has climbed 45 percent since the floatation of the currency on Nov. 3 last year."

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Kuwait Says Saudi Arabia to U.A.E. Comply With OPEC Output Cuts - Bloomberg

Kuwait Says Saudi Arabia to U.A.E. Comply With OPEC Output Cuts - Bloomberg:
"Oil producers from Saudi Arabia to the United Arab Emirates are complying with production cuts promised last year to stabilize the market, Kuwait’s governor to the Organization of Petroleum Exporting Countries said.

Qatar, Kuwait and Oman are also complying, having announced cuts to customers, Nawal Al-Fezaia, Kuwait’s OPEC governor, said in an interview Monday in Kuwait City where OPEC’s Secretary General Mohammad Barkindo is scheduled to have talks on the cuts with Kuwait Oil Minister Essam Al-Marzouk and other officials."

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Saudi Arabia Said to Hire PwC to Advise on $20 Billion Cost Cuts - Bloomberg

Saudi Arabia Said to Hire PwC to Advise on $20 Billion Cost Cuts - Bloomberg:
"Saudi Arabia is working with PricewaterhouseCoopers on plans to cancel about $20 billion of projects as the kingdom seeks to shore up its finances, two people familiar with the matter said.

The Ministry of Economy and Planning hired the consultancy firm to review $69 billion of government contracts with a view to cutting about a third of them, the people said, asking not to be identified as the discussions are private. Projects under review include contracts awarded by the ministries of housing, transport, health and education, they said, adding that PwC’s role also includes advising on ways to cut project costs or privatize them.
Under Deputy Crown Prince Mohammed bin Salman, the world’s biggest oil exporter is seeking to rein in spending to narrow a budget shortfall that reached nearly 300 billion riyals ($80 billion) last year after oil prices slumped. The kingdom set up an office to limit government spending, according to this year’s budget that was announced in December. "

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What the Death of Hashemi Rafsanjani Means for Iran - Bloomberg | Click through for video

What the Death of Hashemi Rafsanjani Means for Iran - Bloomberg:
"Trita Parsi, National Iranian American Council founder and chief executive officer, reacts to the death of Iranian President Ayatollah Ali Akbar Hashemi Rafsanjani, a co-founder of the Islamic Republic who later proposed freeing the economy from state control and promoted more moderate views than many of his peers. He speaks with Bloomberg's Yousef Gamal El-Din on "Bloomberg Markets: Middle East." (Source: Bloomberg)"

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Oil slips $1 on concerns U.S. production is rising | Reuters

Oil slips $1 on concerns U.S. production is rising | Reuters:
"Oil fell by $1 a barrel on Monday as signs of growing U.S. production outweighed optimism that many other producers, including Russia, were sticking to a deal to cut supplies in a bid to bolster the market.

A stronger U.S. dollar also weighed as the currency surge made it more expensive to hold dollar-denominated commodities. [FRX/]

Brent crude futures LCOc1 were down $1.01, or 1.8 percent, at $56.09 a barrel at 1006 GMT (5:06 a.m. ET). U.S. crude futures CLc1 were trading at $52.99 per barrel, down $1, or 1.85 percent.

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Investment Corporation of Dubai expected to issue dollar bond this month -sources | Reuters

Investment Corporation of Dubai expected to issue dollar bond this month -sources | Reuters:
"Investment Corporation of Dubai (ICD), the Dubai government's main investment arm, is likely to issue its planned U.S. dollar-denominated bond this month but has yet to decide whether it will be a sukuk or a conventional bond, sources said on Monday.

The bond will be benchmark-sized, which traditionally means upwards of $500 million, and ICD has picked banks to arrange the issue, the sources familiar with the matter told Reuters, speaking on condition of anonymity because the information is private.

An ICD spokeswoman did not respond to a request for comment via email."

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Russia cuts oil output by 100,000 bpd in early January: industry sources | Reuters

Russia cuts oil output by 100,000 bpd in early January: industry sources | Reuters:
"Russia cut its oil production in early January by around 100,000 barrels per day (bpd) from the previous month after an agreement with OPEC to cap global crude output, two sources from the energy sector told Reuters on Monday.

Russia's oil and gas condensate output averaged 11.1 million barrels per day (bpd) in the period from Jan. 1 to Jan. 8, according to the two sources. This was down from 11.21 million bpd in December and October's level of 11.247 million bpd, a starting point for output reduction agreed with the Organization of the Petroleum Exporting Countries.

The sources declined to give the reason for the fall or name the companies that reduced their production. The cuts came amid a cold spell in Russia and in its oil production heartland of Western Siberia in particular, where temperatures reached as low as minus 60 Celsius (minus 76 Fahrenheit)."

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MIDEAST STOCKS-Saudi's Jarir outperforms on Q4 net profit, UAE markets inch up | Reuters

MIDEAST STOCKS-Saudi's Jarir outperforms on Q4 net profit, UAE markets inch up | Reuters:
"One of Saudi Arabia's largest retailers reported an increase in fourth-quarter earnings, helping its shares outperform an otherwise weak market, while stock markets in the United Arab Emirates were supported by gains in speculative shares.

Jarir Marketing added 0.4 percent after the electronics and bookstore retailer reported a 3.5 percent increase in fourth-quarter net profit on Monday as sales of electronic goods rose. Net profit came in at 215.3 million riyals ($57.4 million) in line with the 203.0 million riyals forecast by analysts.

But the overall index extended its decline from the previous session and fell 0.6 percent after 50 minutes of trade. Most petrochemical shares pulled back as Brent crude futures fell towards $56.50 a barrel. Saudi Kayan Petrochemical was down 2.3 percent.

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Turkey left in not so splendid isolation

Turkey left in not so splendid isolation:
"After one of the most tumultuous years in its modern history, Turkey is struggling to convince global investors to look beyond economic weakness and political risk.

Fund houses willing to bet on countries such as South Africa, where a corruption scandal is consuming the ruling ANC party, and Brazil, where President Michel Temer is battling to save his administration from corruption investigations, say the headwinds facing Turkey outweigh those of every other major developing country.

With investors wary of committing money, the rehabilitation trade that has supported bonds, equities and currencies in four of the so-called “Fragile Five” — Brazil, South Africa, Indonesia and India — currently eludes Turkey."

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US bank earnings, Abe meets Duterte