BP Says $100 Oil to Prove Fleeting as U.S.-China Trade War Bites - Bloomberg:
Oil bulls cheered by the prospect of $100 oil beware. A rally in prices may be short-lived.
That’s according to Janet Kong, who heads energy giant BP Plc’s trading business in Asia. Any spike on the loss of Iranian supply due to U.S. sanctions probably won’t be sustainable in the long run, she said. That’s because the negative impact on demand from a trade war between the world’s two biggest economies hasn’t been priced into crude yet.
Kong’s comments stand in contrast to views from officials at major oil-trading firms Trafigura Group and Mercuria Energy Group Ltd., who see a looming supply crunch driving global benchmark Brent crude to $100 a barrel for the first time in four years. In recent weeks, prices have largely shrugged off escalating U.S.-China trade tensions, with speculation over the impact of American sanctions on Iran dominating investor sentiment.
Monday 24 September 2018
OPEC World Oil Outlook Sees An Unlikely Future - Bloomberg
OPEC World Oil Outlook Sees An Unlikely Future - Bloomberg:
By delivering a half-shrug to President Donald Trump over the weekend, OPEC’s other message was somewhat lost in the shuffle.
Sunday’s meeting of the committee overseeing the oil exporters’ club’s supply agreement with some other producers (Russia, mainly) didn’t produce the output hike Trump’s latest tweet all but demanded. Oil prices duly rallied Monday morning.
This weekend also saw the release of OPEC’s World Oil Outlook, its annual forecast-fest known colloquially as the “WOO.” The 400-odd pages actually frame the weekend’s main event quite nicely.
By delivering a half-shrug to President Donald Trump over the weekend, OPEC’s other message was somewhat lost in the shuffle.
Sunday’s meeting of the committee overseeing the oil exporters’ club’s supply agreement with some other producers (Russia, mainly) didn’t produce the output hike Trump’s latest tweet all but demanded. Oil prices duly rallied Monday morning.
This weekend also saw the release of OPEC’s World Oil Outlook, its annual forecast-fest known colloquially as the “WOO.” The 400-odd pages actually frame the weekend’s main event quite nicely.
UAE's Al Dahra to invest further $500 mln in Romania | Reuters
UAE's Al Dahra to invest further $500 mln in Romania | Reuters:
Abu Dhabi-based Al Dahra Holding said on Monday it will invest a further $500 million in various sectors in the Romanian market after acquiring the largest farm producer there.
Al Dahra, which has been expanding aggressively in eastern Europe in the last five years, said it had bought Romania’s Agricost and Braila Island “recently”, but did not disclose a figure for the transactions.
Countries in the Gulf, one of the world’s biggest food importing regions, have stepped up efforts to buy and lease farmland in emerging economies to secure food supplies since 2007-2008, when food prices rose to record levels.
Abu Dhabi-based Al Dahra Holding said on Monday it will invest a further $500 million in various sectors in the Romanian market after acquiring the largest farm producer there.
Al Dahra, which has been expanding aggressively in eastern Europe in the last five years, said it had bought Romania’s Agricost and Braila Island “recently”, but did not disclose a figure for the transactions.
Countries in the Gulf, one of the world’s biggest food importing regions, have stepped up efforts to buy and lease farmland in emerging economies to secure food supplies since 2007-2008, when food prices rose to record levels.
UAE banks group considers asking for ease in mortgage rules
UAE banks group considers asking for ease in mortgage rules:
The United Arab Emirates’ banking group is considering whether to ask the central bank to relax mortgage lending rules to stimulate a fragile real estate market, sources familiar with the matter said.
At the moment, first-time buyers of a home worth up to 5 million dirhams can only borrow up to 80 percent of the property value if they are UAE citizens, while the cap is 75 percent for foreigners.
The UAE Banks Federation’s retail banking committee has proposed that the limit be raised to 85 percent for UAE nationals and 80 percent for foreigners, the sources said. They added that the CEO Advisory Council, made up of bank chief executives, is considering the proposal and, if approved, will suggest it to the central bank.
The United Arab Emirates’ banking group is considering whether to ask the central bank to relax mortgage lending rules to stimulate a fragile real estate market, sources familiar with the matter said.
At the moment, first-time buyers of a home worth up to 5 million dirhams can only borrow up to 80 percent of the property value if they are UAE citizens, while the cap is 75 percent for foreigners.
The UAE Banks Federation’s retail banking committee has proposed that the limit be raised to 85 percent for UAE nationals and 80 percent for foreigners, the sources said. They added that the CEO Advisory Council, made up of bank chief executives, is considering the proposal and, if approved, will suggest it to the central bank.
Oil prices surge as Saudis, Russia won't open spigots | Reuters
Oil prices surge as Saudis, Russia won't open spigots | Reuters:
Global Benchmark Brent crude jumped more than 3 percent on Monday to a four-year high above $80 a barrel after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.
The Organization of the Petroleum Exporting Countries and non-OPEC states, including top producer Russia, gathered in Algiers on Sunday for a meeting that ended with no formal recommendation for any additional supply boost to counter falling supply from Iran.
“The market’s still being driven by concerns about Iranian and Venezuelan supply,” said Gene McGillian, director of market research at Tradition Energy in Stamford. “The failure of the producers to address that adequately this weekend is creating a buying opportunity.”
Global Benchmark Brent crude jumped more than 3 percent on Monday to a four-year high above $80 a barrel after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.
The Organization of the Petroleum Exporting Countries and non-OPEC states, including top producer Russia, gathered in Algiers on Sunday for a meeting that ended with no formal recommendation for any additional supply boost to counter falling supply from Iran.
“The market’s still being driven by concerns about Iranian and Venezuelan supply,” said Gene McGillian, director of market research at Tradition Energy in Stamford. “The failure of the producers to address that adequately this weekend is creating a buying opportunity.”
MIDEAST STOCKS-Trade concerns weigh on Dubai DP World; Orascom Investment shines in Egypt | Reuters
MIDEAST STOCKS-Trade concerns weigh on Dubai DP World; Orascom Investment shines in Egypt | Reuters:
Gulf stocks traded in negative territory on Monday, mirroring a dip in global market as concerns increased over a trade row between the United States and China.
In Dubai, where the index shed 0.3 percent, contractor Drake and Scull International (DSI) continued to weigh on the index.
Shares in the company dropped 2.6 percent, continuing their downward trend after DSI said this month its shareholders would meet on Sept. 27 to decide whether to dissolve it.
Gulf stocks traded in negative territory on Monday, mirroring a dip in global market as concerns increased over a trade row between the United States and China.
In Dubai, where the index shed 0.3 percent, contractor Drake and Scull International (DSI) continued to weigh on the index.
Shares in the company dropped 2.6 percent, continuing their downward trend after DSI said this month its shareholders would meet on Sept. 27 to decide whether to dissolve it.
Oil Traders Say $100 Coming as OPEC Struggles to Fill Iran Gap - Bloomberg
Oil Traders Say $100 Coming as OPEC Struggles to Fill Iran Gap - Bloomberg:
Major oil trading houses are predicting the return of $100 crude for the first time since 2014 as OPEC and its allies struggle to compensate for U.S. sanctions on Iran’s exports.
With Brent crude already jumping to an almost four-year high on Monday, that’s exactly the kind of price surge President Donald Trump has been seeking to prevent by pressuring the Organization of Petroleum Exporting Countries to raise production. Yet the cartel and its allies gave mixed signals at a meeting in Algiers on Sunday, ultimately showing little sign they would heed U.S. demands to rapidly push down crude prices.
OPEC’s reticence, combined with signs of accelerating supply losses from Iran, created a bullish mood the the annual gathering of the Asian oil industry, traders, refiners and bankers in Singapore on Monday.
Major oil trading houses are predicting the return of $100 crude for the first time since 2014 as OPEC and its allies struggle to compensate for U.S. sanctions on Iran’s exports.
With Brent crude already jumping to an almost four-year high on Monday, that’s exactly the kind of price surge President Donald Trump has been seeking to prevent by pressuring the Organization of Petroleum Exporting Countries to raise production. Yet the cartel and its allies gave mixed signals at a meeting in Algiers on Sunday, ultimately showing little sign they would heed U.S. demands to rapidly push down crude prices.
OPEC’s reticence, combined with signs of accelerating supply losses from Iran, created a bullish mood the the annual gathering of the Asian oil industry, traders, refiners and bankers in Singapore on Monday.
Actis picked to take over Abraaj's Africa funds -sources | Reuters
Actis picked to take over Abraaj's Africa funds -sources | Reuters:
Actis has been picked as the preferred bidder for the management rights of Abraaj’s Africa funds, sources familiar with the matter said, as liquidators begin breaking up the operations of what was once the Middle East’s largest private equity firm.
Among Abraaj’s other operations, Canada’s Brookfield Asset Management is in the frame to take over its Turkey fund, while United States-based Colony Capital its Latin America fund, two of the sources told Reuters.
Abraaj was a $13.6 billion emerging market specialist with more than 200 investments, but late last year four investors questioned its use of their money in a healthcare fund triggering a crisis at Abraaj and its provisional liquidation.
Actis has been picked as the preferred bidder for the management rights of Abraaj’s Africa funds, sources familiar with the matter said, as liquidators begin breaking up the operations of what was once the Middle East’s largest private equity firm.
Among Abraaj’s other operations, Canada’s Brookfield Asset Management is in the frame to take over its Turkey fund, while United States-based Colony Capital its Latin America fund, two of the sources told Reuters.
Abraaj was a $13.6 billion emerging market specialist with more than 200 investments, but late last year four investors questioned its use of their money in a healthcare fund triggering a crisis at Abraaj and its provisional liquidation.
Private equity investors weigh exit from UAE school operator GEMS-sources | Reuters
Private equity investors weigh exit from UAE school operator GEMS-sources | Reuters:
A group of private equity investors, including Fajr Capital, Blackstone and Bahrain’s Mumtalakat, is weighing the sale of their combined stake in the emerging market business of UAE-based GEMS Education, three sources said.
The consortium has held preliminary talks with investors about an outright sale of the more than 20 percent stake after GEMS shelved its plan to list the schools operator in London, which deprived them of an exit in their more than four-year old investment, the sources familiar with the talks said.
The stake is valued at about $1 billion, two of the sources said.
A group of private equity investors, including Fajr Capital, Blackstone and Bahrain’s Mumtalakat, is weighing the sale of their combined stake in the emerging market business of UAE-based GEMS Education, three sources said.
The consortium has held preliminary talks with investors about an outright sale of the more than 20 percent stake after GEMS shelved its plan to list the schools operator in London, which deprived them of an exit in their more than four-year old investment, the sources familiar with the talks said.
The stake is valued at about $1 billion, two of the sources said.
Dubai developer Nakheel plans sukuk sale, mall financing - sources | Reuters
Dubai developer Nakheel plans sukuk sale, mall financing - sources | Reuters:
Nakheel, the developer of the palm shaped islands off Dubai, is working with a group of banks to raise a loan for a new mall and, separately, it is planning to issue U.S. dollar-denominated sukuk, sources familiar with the matter said.
The state-owned firm was one of the developers worst hit by Dubai’s real estate crash at the turn of the decade, forcing it into a massive debt restructuring.
The company is now planning to return to the debt market with a new public issue of U.S. dollar-denominated sukuk, or Islamic bonds, which it could sell over the next few months, said the sources. Asked to comment on its sukuk plans, Nakheel said it does not comment on speculation.
Nakheel, the developer of the palm shaped islands off Dubai, is working with a group of banks to raise a loan for a new mall and, separately, it is planning to issue U.S. dollar-denominated sukuk, sources familiar with the matter said.
The state-owned firm was one of the developers worst hit by Dubai’s real estate crash at the turn of the decade, forcing it into a massive debt restructuring.
The company is now planning to return to the debt market with a new public issue of U.S. dollar-denominated sukuk, or Islamic bonds, which it could sell over the next few months, said the sources. Asked to comment on its sukuk plans, Nakheel said it does not comment on speculation.
SABIC hires banks ahead of dual-tenor dollar bond issue | ZAWYA MENA Edition
SABIC hires banks ahead of dual-tenor dollar bond issue | ZAWYA MENA Edition:
Saudi Basic Industries Corp (SABIC) has hired banks to arrange a series of fixed income investor meetings ahead of a planned dual-tenor U.S. dollar-denominated bond issue, a bank document seen by Reuters shows on Monday.
The world's fourth-largest petrochemicals company has mandated BNP Paribas and Citi as global coordinators for the planned debt issue, together with HSBC, MUFG and Standard Chartered as joint lead managers.
It will meet investors in London, New York, Los Angeles and Boston starting on Sept. 25.
Saudi Basic Industries Corp (SABIC) has hired banks to arrange a series of fixed income investor meetings ahead of a planned dual-tenor U.S. dollar-denominated bond issue, a bank document seen by Reuters shows on Monday.
The world's fourth-largest petrochemicals company has mandated BNP Paribas and Citi as global coordinators for the planned debt issue, together with HSBC, MUFG and Standard Chartered as joint lead managers.
It will meet investors in London, New York, Los Angeles and Boston starting on Sept. 25.
RPT-UPDATE 4-Oil jumps 2 pct as market tightens, more gains seen | Reuters
RPT-UPDATE 4-Oil jumps 2 pct as market tightens, more gains seen | Reuters:
Oil prices rose 2 percent on Monday as U.S. sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel.
Brent crude hit its highest since May at $80.47 per barrel, up $1.63 or more than 2 percent, before easing back slightly to around $80.40 by 0730 GMT. U.S. light crude was $1.18 higher at $71.96.
U.S. commercial crude oil inventories C-STK-T-EIA are at their lowest since early 2015 and although U.S. oil production C-OUT-T-EIA is near a record high of 11 million barrels per day (bpd), subdued U.S. drilling activity points towards a slowdown in output.
Oil prices rose 2 percent on Monday as U.S. sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel.
Brent crude hit its highest since May at $80.47 per barrel, up $1.63 or more than 2 percent, before easing back slightly to around $80.40 by 0730 GMT. U.S. light crude was $1.18 higher at $71.96.
U.S. commercial crude oil inventories C-STK-T-EIA are at their lowest since early 2015 and although U.S. oil production C-OUT-T-EIA is near a record high of 11 million barrels per day (bpd), subdued U.S. drilling activity points towards a slowdown in output.
MIDEAST STOCKS-Kuwait slides on day of FTSE entry, DSI continues to hurt Dubai | Reuters
MIDEAST STOCKS-Kuwait slides on day of FTSE entry, DSI continues to hurt Dubai | Reuters:
Gulf stocks opened in negative territory on Monday, mirroring a slide in Asian shares after China’s decision to cancel talks with the United States increased concerns about a protracted trade war.
The Kuwaiti main index slipped 0.3 percent in early trade, reversing some of its recent gains ahead of joining of the FTSE Russell emerging market index this week, a development expected to draw investment from passive funds.
Entry to the emerging market index will be in two phases, on Monday and on Dec. 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
Gulf stocks opened in negative territory on Monday, mirroring a slide in Asian shares after China’s decision to cancel talks with the United States increased concerns about a protracted trade war.
The Kuwaiti main index slipped 0.3 percent in early trade, reversing some of its recent gains ahead of joining of the FTSE Russell emerging market index this week, a development expected to draw investment from passive funds.
Entry to the emerging market index will be in two phases, on Monday and on Dec. 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
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