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Wednesday, 31 May 2017

Here’s what could go wrong for oil if OPEC is wrong about its future

Here’s what could go wrong for oil if OPEC is wrong about its future:

"From giant companies like Exxon Mobil Corp. to OPEC members such as Saudi Arabia, oil producers say their industry will enjoy decades of growth as they feed the energy needs of the world’s expanding middle classes. But what if they’re wrong? There’s a host of reasons to think they might be. Here’s what happens when you test their central assumptions.

The International Energy Agency sees oil demand rising more than 10 percent, to 103.5 million barrels a day by 2040, while companies predict even faster growth."



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MIDEAST STOCKS-Ezdan spooks Qatar; Dana jumps, MSCI shares lift Egypt | Reuters

MIDEAST STOCKS-Ezdan spooks Qatar; Dana jumps, MSCI shares lift Egypt | Reuters:

"A sharp drop in property developer Ezdan Holding rippled across Qatar's stock market on Wednesday while profit-taking in blue chips dragged Abu Dhabi lower, although Dana Gas jumped on hopes for payments from the Kurdistan Regional Government (KRG). Shares in Ezdan, Qatar's largest listed developer, tumbled by a further 9.3 percent. They have plunged since the end of last week, when shareholders gave preliminary approval for the company to delist. The exchange said it had removed Ezdan from the QSE index after Monday's close because of the decision, but the steep drop soured sentiment toward other stocks."



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Middle East borrowing sets record pace as investors seek yield

Middle East borrowing sets record pace as investors seek yield:

"Middle Eastern governments have set a debt-raising record in the first five months of this year, taking advantage of substantial investor demand for high-yielding emerging market bonds. Middle Eastern countries have sold $38.5bn of syndicated sovereign bonds in 2017, more than double the amount issued over the same period last year which was itself a record, according to figures from data provider Dealogic. Jan Dehn, head of research at Ashmore Investment Management, which has bought into some of the recent issuance, said that many Middle Eastern countries needed to raise debt to replace the oil revenues they had previously relied on."



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MIDEAST STOCKS-Weak oil weighs, but Dana Gas gains on Kurdistan legal hopes | Reuters

MIDEAST STOCKS-Weak oil weighs, but Dana Gas gains on Kurdistan legal hopes | Reuters:

"Stock markets in the Gulf were mixed early on Wednesday as Brent oil's fall near $51.50 a barrel weighed on sentiment, though Abu Dhabi's Dana Gas jumped on hopes for legal action to recover payments from the Kurdistan Regional Government (KRG). Riyadh's index was up 0.2 percent after an hour, but the largest listed petrochemical maker, Saudi Basic Industries , fell 0.8 percent and most other petrochemicals producers were also weak. Oil shipper National Shipping Co(Bahri) rose 0.8 percent on news it had signed a joint venture agreement with state oil giant Aramco, London-listed Lamprell and South Korea's Hyundai Heavy Industries to build and operate a shipyard on the kingdom's east coast."



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Renaissance's CEO Says Investors Cautious on Saudi Arabia - Bloomberg

Renaissance's CEO Says Investors Cautious on Saudi Arabia - Bloomberg:

"Ahmed Badr, MENA chief executive officer at Renaissance Capital, discusses the tensions in the gulf and the outlook for the Saudi markets. He speaks on "Bloomberg Markets: Middle East." (Source: Bloomberg)"



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Once Costly Deep-Sea Oil Turns Cheap, to OPEC's Dismay - Bloomberg

Once Costly Deep-Sea Oil Turns Cheap, to OPEC's Dismay - Bloomberg:

"Reports of deep-sea drilling’s demise in a world of sub-$100 oil may have been greatly exaggerated, much to OPEC’s dismay. Pumping crude from seabeds thousands of feet below water is turning cheaper as producers streamline operations and prioritize drilling in core wells, according to Wood Mackenzie Ltd. That means oil at $50 a barrel could sustain some of these projects by next year, down from an average break-even price of about $62 in the first quarter and $75 in 2014, the energy consultancy estimates."



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