Opec expects oil price at $70 per barrel in 2020 | GulfNews.com:
"It may take many years for oil prices to recover and reach the level of more than $110 per barrel witnessed in June 2014, according to World Oil Outlook Report released by the Organisation of Petroleum Exporting Countries (Opec) released on Wednesday.
Opec expects the price of its basket of crudes to rise to $70 a barrel in 2020 and $95 a barrel in 2040, compared with$30.74 a barrel on Monday.
Oil prices have been falling continuously since last year as supply outstrips demand. From $115 per barrel in June last year, oil prices fell to less than $40 in recent times. Brent, the global benchmark, was trading at $36.63 per barrel on Wednesday at 4:32 UAE time."
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Wednesday, 23 December 2015
The Oil Price Crash Is Taking a Heavy Toll On Canada. And the Worst Is Yet to Come - Bloomberg Business
The Oil Price Crash Is Taking a Heavy Toll On Canada. And the Worst Is Yet to Come - Bloomberg Business:
"Crime is rising, home prices are falling and food banks are overwhelmed in Calgary as job losses spread. And the worst isn’t yet over in the heart of Canada’s oil patch.
Some of the city’s largest employers are poised to cut more jobs in 2016 as they reduce spending for a second straight year, adding to an estimated 40,000 oil and natural gas positions lost across the nation since the crude price rout began 18 months ago.
“We all know someone who has lost a job,” Naheed Nenshi, the city’s mayor, said in a speech this month, lamenting the “funeral"-like atmosphere in the business community."
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"Crime is rising, home prices are falling and food banks are overwhelmed in Calgary as job losses spread. And the worst isn’t yet over in the heart of Canada’s oil patch.
Some of the city’s largest employers are poised to cut more jobs in 2016 as they reduce spending for a second straight year, adding to an estimated 40,000 oil and natural gas positions lost across the nation since the crude price rout began 18 months ago.
“We all know someone who has lost a job,” Naheed Nenshi, the city’s mayor, said in a speech this month, lamenting the “funeral"-like atmosphere in the business community."
'via Blog this'
Saudi Stocks Sink as King Signals Changes to Government Spending - Bloomberg Business
Saudi Stocks Sink as King Signals Changes to Government Spending - Bloomberg Business:
"Saudi stocks declined after a speech by the king stoked speculation the Arab world’s biggest economy will probably cut spending next year as the plunge in oil prices pressures the nation’s finances.
The Tadawul All Share Index reversed gains of as much as 0.6 percent to close 1.6 percent lower after King Salman said in an annual address published by the state-run Saudi Press Agency that the country will focus on "raising the efficiency of government spending."
“Now it is becoming clear that the government will be reducing spending and it’s a reality check for investors,” John Sfakianakis, a Riyadh-based Middle East director at Ashmore Group Plc, said by phone. “This means the economy will be slowing down and that will have an impact on the wider market.”"
'via Blog this'
"Saudi stocks declined after a speech by the king stoked speculation the Arab world’s biggest economy will probably cut spending next year as the plunge in oil prices pressures the nation’s finances.
The Tadawul All Share Index reversed gains of as much as 0.6 percent to close 1.6 percent lower after King Salman said in an annual address published by the state-run Saudi Press Agency that the country will focus on "raising the efficiency of government spending."
“Now it is becoming clear that the government will be reducing spending and it’s a reality check for investors,” John Sfakianakis, a Riyadh-based Middle East director at Ashmore Group Plc, said by phone. “This means the economy will be slowing down and that will have an impact on the wider market.”"
'via Blog this'
MIDEAST STOCKS-Saudi stocks erase previous gains on profit-taking | Reuters
MIDEAST STOCKS-Saudi stocks erase previous gains on profit-taking | Reuters:
"Saudi Arabia's stock market fell back on profit-taking by short-term retail investors on Wednesday, while other Gulf markets were mixed.
The Saudi index, which had gained 1.7 percent on Tuesday, rose in early trade on Wednesday but dropped in the late afternoon to close 1.6 percent lower. Alinma Bank retreated 3.7 percent.
Much activity focused on second- or third-tier speculative stocks. Tihama Advertising rose 2.0 percent after it said it sold land in Jeddah for 33 million riyals ($8.8 million), while Saudi Fisheries sank 5.9 percent."
'via Blog this'
"Saudi Arabia's stock market fell back on profit-taking by short-term retail investors on Wednesday, while other Gulf markets were mixed.
The Saudi index, which had gained 1.7 percent on Tuesday, rose in early trade on Wednesday but dropped in the late afternoon to close 1.6 percent lower. Alinma Bank retreated 3.7 percent.
Much activity focused on second- or third-tier speculative stocks. Tihama Advertising rose 2.0 percent after it said it sold land in Jeddah for 33 million riyals ($8.8 million), while Saudi Fisheries sank 5.9 percent."
'via Blog this'
Opec sees lacklustre oil demand growth over next five years | The National
Opec sees lacklustre oil demand growth over next five years | The National:
"Opec said in its annual outlook that it expects lacklustre economic growth and other factors to keep a lid on demand growth for its members’ oil over the next five years.
In its annual outlook, the producers group said it expects world oil demand will grow from 91.3 million barrels per day last year to 97.4 million bpd in 2020, which is 500,000 bpd higher than in its previous outlook.
But that rate of growth trails behind expected economic growth, which itself is expected to be “below potential” in the medium term, with the result that Opec foresees little actual growth in demand for its members’ crude through 2020."
'via Blog this'
"Opec said in its annual outlook that it expects lacklustre economic growth and other factors to keep a lid on demand growth for its members’ oil over the next five years.
In its annual outlook, the producers group said it expects world oil demand will grow from 91.3 million barrels per day last year to 97.4 million bpd in 2020, which is 500,000 bpd higher than in its previous outlook.
But that rate of growth trails behind expected economic growth, which itself is expected to be “below potential” in the medium term, with the result that Opec foresees little actual growth in demand for its members’ crude through 2020."
'via Blog this'
Gulf states must counter misinformation campaigns | GulfNews.com
Gulf states must counter misinformation campaigns | GulfNews.com:
"The recent economic developments in the Gulf topped the agenda at the symposium organised last week by the Emirates Centre for Strategic Studies and Research and the Oxford Centre for Islamic Studies.
The situation is getting complex for many reasons. First, some local and foreign parties are exploiting some of the economic measures adopted by the GCC countries, especially after the collapse in oil prices, to boost their financial situation. Among these are reforms integral to stabilising the economic conditions and diversify sources of income. Unfortunately, these have been deliberately twisted for the purpose of incitement.
Second, there is Iran’s non-stop interventions in the GCC’s internal affairs and its continuing occupation of three UAE islands, as well as its support to the Houthi rebels in Yemen. These add salt to the region’s open wounds."
'via Blog this'
"The recent economic developments in the Gulf topped the agenda at the symposium organised last week by the Emirates Centre for Strategic Studies and Research and the Oxford Centre for Islamic Studies.
The situation is getting complex for many reasons. First, some local and foreign parties are exploiting some of the economic measures adopted by the GCC countries, especially after the collapse in oil prices, to boost their financial situation. Among these are reforms integral to stabilising the economic conditions and diversify sources of income. Unfortunately, these have been deliberately twisted for the purpose of incitement.
Second, there is Iran’s non-stop interventions in the GCC’s internal affairs and its continuing occupation of three UAE islands, as well as its support to the Houthi rebels in Yemen. These add salt to the region’s open wounds."
'via Blog this'
OPEC Sees Demand for Its Crude Oil Falling for Rest of Decade - Bloomberg Business
OPEC Sees Demand for Its Crude Oil Falling for Rest of Decade - Bloomberg Business:
"OPEC said demand for its crude will slide to 2020, though less steeply than previously expected, as rival supplies continue to grow.
The organization will need to pump 30.7 million barrels a day by the end of the decade, OPEC said Wednesday in its annual World Oil Outlook. That’s 1.7 million barrels more than projected a year ago, and 1 million less than the group pumped in November.
The forecast underlines the struggle faced by the Organization of Petroleum Exporting Countries as it seeks to defend market share against a surge in output from rivals such as the U.S. and Russia. While OPEC is slowly taming the expansion of competitors, the collapse in oil prices means the financial costs of its strategy are immense. Brent crude futures touched an 11-year low of $36.04 a barrel on Dec. 21."
'via Blog this'
"OPEC said demand for its crude will slide to 2020, though less steeply than previously expected, as rival supplies continue to grow.
The organization will need to pump 30.7 million barrels a day by the end of the decade, OPEC said Wednesday in its annual World Oil Outlook. That’s 1.7 million barrels more than projected a year ago, and 1 million less than the group pumped in November.
The forecast underlines the struggle faced by the Organization of Petroleum Exporting Countries as it seeks to defend market share against a surge in output from rivals such as the U.S. and Russia. While OPEC is slowly taming the expansion of competitors, the collapse in oil prices means the financial costs of its strategy are immense. Brent crude futures touched an 11-year low of $36.04 a barrel on Dec. 21."
'via Blog this'
MIDEAST STOCKS-Saudi edges up before king's speech | Reuters
MIDEAST STOCKS-Saudi edges up before king's speech | Reuters:
"Saudi Arabia's stock market edged up in early trade on Wednesday before a speech by King Salman to the advisory Shura Council, with much activity focusing on second- or third-tier speculative stocks.
The Saudi index climbed 0.4 percent. Tihama Advertising was up 5.6 percent after it said it sold land in Jeddah for 33 million riyals ($8.8 million), while Saudi Fisheries gained 3.0 percent.
It is not clear whether the king's speech will announce any policy details, and he may instead simply outline his priorities in general terms. The state budget for 2016, expected to be released on Monday, is likely to give a more comprehensive idea of fiscal policy next year."
'via Blog this'
"Saudi Arabia's stock market edged up in early trade on Wednesday before a speech by King Salman to the advisory Shura Council, with much activity focusing on second- or third-tier speculative stocks.
The Saudi index climbed 0.4 percent. Tihama Advertising was up 5.6 percent after it said it sold land in Jeddah for 33 million riyals ($8.8 million), while Saudi Fisheries gained 3.0 percent.
It is not clear whether the king's speech will announce any policy details, and he may instead simply outline his priorities in general terms. The state budget for 2016, expected to be released on Monday, is likely to give a more comprehensive idea of fiscal policy next year."
'via Blog this'
MIDEAST STOCKS-Gulf narrowly mixed in thin trade | Reuters
MIDEAST STOCKS-Gulf narrowly mixed in thin trade | Reuters:
"Gulf stock markets were narrowly mixed in thin early trade on Wednesday with activity deterred by the approach of the Christmas holiday period, when foreign investors become less active, and the release of Saudi Arabia's 2016 state budget, expected on Monday.
Firm global equities and oil prices supported sentiment, but there was very little corporate news to encourage buying.
Dubai's index, which had climbed 1.5 percent on Tuesday, edged down 0.03 percent after the opening on Wednesday. Activity focused on volatile, speculative stocks favoured by local retail investors such as Arabtec, up 3.3 percent, and GFH Financial Group, up 1.6 percent."
'via Blog this'
"Gulf stock markets were narrowly mixed in thin early trade on Wednesday with activity deterred by the approach of the Christmas holiday period, when foreign investors become less active, and the release of Saudi Arabia's 2016 state budget, expected on Monday.
Firm global equities and oil prices supported sentiment, but there was very little corporate news to encourage buying.
Dubai's index, which had climbed 1.5 percent on Tuesday, edged down 0.03 percent after the opening on Wednesday. Activity focused on volatile, speculative stocks favoured by local retail investors such as Arabtec, up 3.3 percent, and GFH Financial Group, up 1.6 percent."
'via Blog this'
Oil Slump to 11-Year Low Just a Taste of Pain Felt by Producers - Bloomberg Business
Oil Slump to 11-Year Low Just a Taste of Pain Felt by Producers - Bloomberg Business:
"If oil’s slump to an 11-year low stung traders, it’s just a taste of the hardship felt by the industry.
Brent’s plunge to $35.98 a barrel on Tuesday, its weakest intraday level since 2004, was probably painful enough for any remaining oil bulls. But that move was just playing catch-up with the annual average price, already at the lowest in 11 years -- a measure more important than intraday fluctuations to those that pump crude from the ground."
'via Blog this'
"If oil’s slump to an 11-year low stung traders, it’s just a taste of the hardship felt by the industry.
Brent’s plunge to $35.98 a barrel on Tuesday, its weakest intraday level since 2004, was probably painful enough for any remaining oil bulls. But that move was just playing catch-up with the annual average price, already at the lowest in 11 years -- a measure more important than intraday fluctuations to those that pump crude from the ground."
'via Blog this'
Oman Advisory Body Approves Corporate Tax Rise as Oil Rout Bites - Bloomberg Business
Oman Advisory Body Approves Corporate Tax Rise as Oil Rout Bites - Bloomberg Business:
"Oman’s Shura Council voted to hike corporate taxes as the Middle East’s largest oil producer outside of OPEC faces another year of shrinking government revenue.
The elected advisory body voted on Tuesday to raise corporate taxes on companies registered in Oman by 3 percentage points to 15 percent and to end corporate tax exemptions, council member Tawfiq Al Lawati said by phone. The council also voted to raise taxes on net income to 35 percent for petrochemical companies and 55 percent for natural gas companies, the official Oman Daily reported. The recommendations need approval from the State Council and cabinet before becoming law.
The oil-rich Sultanate faces a budget deficit of more than 17 percent of economic output this year as the oil price slump cuts into the government’s main source of revenue, pushing officials to study project delays and new taxes. While Oman isn’t the only Gulf country stretched by the oil rout, it has thinner fiscal buffers to fall back on than neighboring Saudi Arabia and the United Arab Emirates.
"
'via Blog this'
"Oman’s Shura Council voted to hike corporate taxes as the Middle East’s largest oil producer outside of OPEC faces another year of shrinking government revenue.
The elected advisory body voted on Tuesday to raise corporate taxes on companies registered in Oman by 3 percentage points to 15 percent and to end corporate tax exemptions, council member Tawfiq Al Lawati said by phone. The council also voted to raise taxes on net income to 35 percent for petrochemical companies and 55 percent for natural gas companies, the official Oman Daily reported. The recommendations need approval from the State Council and cabinet before becoming law.
The oil-rich Sultanate faces a budget deficit of more than 17 percent of economic output this year as the oil price slump cuts into the government’s main source of revenue, pushing officials to study project delays and new taxes. While Oman isn’t the only Gulf country stretched by the oil rout, it has thinner fiscal buffers to fall back on than neighboring Saudi Arabia and the United Arab Emirates.
"
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