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Tuesday, 9 May 2017

US shale groups roar back to life after oil slump

US shale groups roar back to life after oil slump:

"Members of President Donald Trump’s cabinet have a new catchphrase for how they see the future role of the US: not just “energy-independent”, but “energy-dominant”. As Ryan Zinke, the interior secretary, put it at an industry conference in Houston last week: “Dominance is what America needs.”

It would be tempting to dismiss that talk as hype, except that every week the US energy sector is coming up with evidence to justify that ambition. The latest round of earnings reports from US exploration and production companies, the leaders of the shale revolution, has shown fresh evidence of their resilience and growth potential.

The resurgence of the US shale industry after the oil slump of 2014 was a key factor in how crude prices fell sharply last week, to back below $50 per barrel. The market is concerned about whether efforts by Opec, the producers’ cartel, to tackle a supply glut by curbing output will be undermined by reinvigorated US shale companies."



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Air Arabia Fleet Growth Back on Agenda as Morocco Leads Rebound - Bloomberg

Air Arabia Fleet Growth Back on Agenda as Morocco Leads Rebound - Bloomberg:

"Air Arabia PJSC has renewed plans that were put on hold after a dip in demand to expand its fleet, with the biggest discount carrier in the Persian Gulf and North Africa encouraged by rebounding sales at its Moroccan unit.

The airline, an Airbus SE A320 operator, could reach a decision on new jets as early as this year or into 2018, Chief Executive Officer Adel Ali said in an interview in Sharjah, United Arab Emirates, where it is based.

Air Arabia’s net income fell 10 percent to 103 million dirhams ($28 million) in the first quarter, extending declines from last year as the low oil price weighed on Gulf economies, the Egyptian pound fell and concerns about terrorism hurt demand. Bookings from Morocco, which last suffered a major attack in 2011 but remains subject to foreign advisories, suggest the situation is easing, Ali said."



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Oil buckles as concern grows over battle of OPEC vs shale | Reuters

Oil buckles as concern grows over battle of OPEC vs shale | Reuters:

"Oil prices fell on Tuesday, surrendering earlier gains, rattled by concern over slowing demand and the rise in U.S. crude output that has shaken investors' faith in the ability of OPEC to rebalance the market. Brent crude futures LCOc1 were down 39 cents at $48.95 per barrel by 1400 GMT (10 a.m. ET), off an intraday high of $49.72. U.S. West Texas Intermediate futures CLc1 were down 32 cents at $46.11 per barrel, off the day's high of $46.78. Weekly U.S. data on crude production and inventories, plus monthly reports on supply and demand from the Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration this week, should provide a detailed picture of how quickly global crude inventories are falling."



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MIDEAST STOCKS-Markets creep higher, Saudi gets boost from Jarir's strong Q1 results | Reuters

MIDEAST STOCKS-Markets creep higher, Saudi gets boost from Jarir's strong Q1 results | Reuters:

"Shares of companies that beat quarterly earnings estimates outperformed on Tuesday with electronics and bookstore retailer Jarir helping lift the mood on the Saudi Arabian exchange. Markets across the region rose modestly in thin trade. Shares of Jarir surged 6 percent to 141.0 riyals in the heaviest volumes in two weeks after it reported a 26.5 percent rise in first quarter net profit, beating analysts' forecasts."



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Better times ahead for UAE banking sector: CBD’s CEO | GulfNews.com

Better times ahead for UAE banking sector: CBD’s CEO | GulfNews.com:

"The UAE’s banking sector is expected to perform better in 2017 in terms of asset growth, asset quality and profitability compared to 2016, said Dr Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai (CBD). Speaking to reporters at the bank’s headquarters in Dubai on Monday, van Linder said with improvements in macroeconomic conditions in the country and GCC region, the banking sector is expected to witness improved operating environment resulting in better performance. “The UAE’s banking sector is in reasonably good shape. We expect overall loan growth for the sector in the range of 2 to 5 per cent this year. While the overall liquidity situation has improved from last year, provisions have largely stabilised and the capitalisation levels are strong across the sector,” said van Linder."



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UPDATE 1-UAE developer Aldar's Q1 net profit falls, beats forecasts | Reuters

UPDATE 1-UAE developer Aldar's Q1 net profit falls, beats forecasts | Reuters:

"Aldar Properties, the builder of Abu Dhabi's Formula One circuit, reported a small drop in first quarter profit on Tuesday, and said it is seeing growth opportunities in the middle-income market. The results come against a slowing economy and weak property market in the oil-rich capital of the United Arab Emirates. Aldar made a net profit attributable to shareholders of 637.0 million dirhams ($174.0 million) in the three months to March 31 compared with 649.05 million dirhams in the prior-year period, the company said."



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Oil gives up earlier gains as rising U.S. output, China concerns weigh | Reuters

Oil gives up earlier gains as rising U.S. output, China concerns weigh | Reuters:

"Oil prices gave up earlier gains on Tuesday, as concerns over slowing demand and a relentless rise in U.S. crude output undermined the impact of hopes that OPEC-led production cuts could be extended.

Brent crude futures, the international benchmark for oil prices, were at $49.33 per barrel at 0651 GMT on Tuesday, down from a high of $49.60 earlier in the day and near their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were trading at $46.40 per barrel, down from an intra-day high of $46.66 and also little changed from their last settlement."



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Energy Rivals Turn Frenemies Amid Price-Crushing LNG Glut - Bloomberg

Energy Rivals Turn Frenemies Amid Price-Crushing LNG Glut - Bloomberg:

"On the leafy southern shore of Australia’s Curtis Island, a jetty shoots out over a stretch of water to fill tankers the length of city blocks with liquefied natural gas. Another jetty juts out about 2 kilometers south. A further 800 meters down the coast sits a third. For one industry veteran, the crowded shoreline represents a $10-billion missed opportunity. It’s the amount that could have been saved had the energy rivals that built separate LNG plants on the island collaborated on a single facility, according to Martin Wilkes, a consultant with 20 years industry experience. They could have produced the same amount of fuel but eliminated extra jetties, storage tanks and other costly infrastructure, he estimates."



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MIDEAST STOCKS-Region stalls as oil stays below $50, earnings lift some shares | Reuters

MIDEAST STOCKS-Region stalls as oil stays below $50, earnings lift some shares | Reuters:

"Shares of companies that beat quarterly earnings estimates outperformed on Tuesday as Gulf markets were held in check by crude oil trading below $50 a barrel for a third session. Shares of Saudi Arabian electronics and bookstore retailer Jarir were up 5.8 percent to 141.0 riyals after it reported a 26.5 percent rise in first quarter net profit, beating analysts' forecasts. The company's board also recommended distributing 2.2 riyals per share for the period, higher than the 1.75 riyals it paid out in the prior year period."



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Dubai's Good Times on Hold as Construction Companies Feel Pain - Bloomberg

Dubai's Good Times on Hold as Construction Companies Feel Pain - Bloomberg:

"Investors in United Arab Emirates construction stocks can remember the good days -- when oil above $100 a barrel encouraged a seemingly endless stream of lucrative projects. Now, with crude priced at half that, companies are trying to rebuild their balance sheets.

The downturn has translated into pain for investors in two of the largest construction companies in the U.A.E. Arabtec Holding Co. has slumped 90 percent from its May 2014 record, while Drake & Scull International PJSC is down 78 percent from its June 2014 peak. They took on too much debt as oil earnings prompted Gulf Cooperation Council countries to commission developments, said Majd Dola, a senior research analyst at Abu Dhabi-based Al Ramz Capital."



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