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Thursday, 14 December 2017

IEA sees oil surplus in early 2018 | Markets

Fitch: MENA Sovereign Outlook Negative on Political Risk, Slow Reform

Fitch: MENA Sovereign Outlook Negative on Political Risk, Slow Reform:

"Heightened geopolitical risks in the once-stable Gulf Cooperation Council (GCC), combined with the inability of some oil exporters to adjust their budgets to a new oil price reality, result in a negative 2018 outlook for sovereign ratings in Middle East North Africa (MENA), Fitch Ratings says in a new report. Three of the 13 MENA sovereigns rated by Fitch (more than 20%) are on a Negative Outlook. None are on a Positive Outlook. Budget deficits will persist across the GCC and will stay in double digits in Bahrain and Oman, despite the oil price recovery. For the majority of sovereigns, fiscal break-even oil prices are still considerably above current or expected actual oil price levels. This is resulting in worsening sovereign debt and external asset ratios. We expect gross foreign and local market GCC issuance of USD110 billion in 2018, in tandem with drawdowns of around USD50 billion from wealth funds and external reserves. Price reforms have been scaled down and delayed in some parts of the GCC."



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MIDEAST STOCKS-Region mixed, stimulus plan doesn't buoy Saudi

MIDEAST STOCKS-Region mixed, stimulus plan doesn't buoy Saudi:

"Middle Eastern stock markets were mixed on Thursday, with the Saudi Arabian bourse taking little encouragement from the government’s announcement of a 72 billion riyal ($19 billion) stimulus package.

King Salman issued a royal decree approving measures to stimulate growth in the private sector. They include residential loans worth 21.3 billion riyals, a 10 billion riyal fund to support economic projects, and 1.5 billion riyals to support distressed companies.

But some of these steps had already been expected, and it remains unclear how quickly they can be implemented and affect the economy. The government plans to introduce a 5 percent value-added tax and domestic energy price rises next year."



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Rising US shale output may lead to early 2018 oil supply surplus – IEA

Rising US shale output may lead to early 2018 oil supply surplus – IEA:

"US shale oil companies will help production from outside the Opec cartel to grow faster than initially expected next year, with global supply and demand not forecast to balance until late 2018, the International Energy Agency said.

The Paris-based body said in its monthly oil market report, published on Thursday, that US drilling and well completion rates have picked up as prices have rebounded, meaning output is set to rise.

The uptick in production will be watched closely by oil forecasters and global producers, led by the Opec cartel and Russia, which joined forces last month to extend an agreement to curb supplies through 2018."



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Qatar raises repo rate by 25 bps after Fed's hike

Qatar raises repo rate by 25 bps after Fed's hike:

"Qatar’s central bank said on Thursday that it was raising its repo rate by 25 basis points to 2.50 percent, after the U.S. Federal Reserve hiked rates by that margin overnight."



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Qatar Airways Keen to Increase Cathay Pacific Stake From 9.9% - Bloomberg

Qatar Airways Keen to Increase Cathay Pacific Stake From 9.9% - Bloomberg:

"Qatar Airways Ltd. is interested in raising its stake in Cathay Pacific Airways Ltd., provided the move doesn’t “disrupt” the holdings of the top two major investors, Swire Group and Air China Ltd., the Gulf carrier’s Chief Executive Officer Akbar Al Baker said.

The Doha-based airline, which announced buying almost 10 percent of Cathay in November in a bid to gain a foothold in East Asia, wants to bolster its strategic relations with the Hong Kong-based marquee carrier, Al Baker told Bloomberg Television’s Stephen Engle in an interview Thursday. Qatar Air currently owns 9.9 percent of Cathay, he said.

“What happens in the future, of course, I cannot say because the aviation industry is very fluid at times,” Al Baker said. “At the moment, we have no intention to go over the stated goal that we already have in mind. We will not go beyond 10 percent mark in Cathay for the time being.”"



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Factbox: Saudi Arabia's $19 billion private sector stimulus package

Factbox: Saudi Arabia's $19 billion private sector stimulus package:

"Saudi Arabia’s King Salman issued a royal decree approving 72 billion riyals ($19.2 billion) worth of measures to stimulate growth in the private sector next year, state news agency SPA reported on Thursday.

The measures are part of a 200 billion riyal package that is to extend over four years.

Following are next year’s measures:"



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MIDEAST STOCKS-Gulf markets soft, stimulus plan doesn't buoy Saudi

MIDEAST STOCKS-Gulf markets soft, stimulus plan doesn't buoy Saudi:

"Gulf stock markets were mostly soft in early trade on Thursday, with the Saudi Arabian bourse taking little encouragement from the government’s announcement of a 72 billion riyal ($19 billion) stimulus package.

King Salman issued a royal decree approving 72 billion riyals worth of measures to stimulate growth in the private sector next year.

They include residential loans worth 21.3 billion riyals, a 10 billion riyal fund to support economic projects, and 1.5 billion riyals to support distressed companies. A government fund would invest in smaller companies, and 7 billion riyals of government fees would be returned to companies."



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