Opec might not reach a deal, but here are seven bright spots | The National:
"Opec oil ministers head into Monday’s meeting amid fading hopes of any grand bargain to try to lift oil prices, but there is plenty Saudi Arabia can point to in support of its steady-as-she goes policy.
As ever, when the market story turns bearish, the trading world tends to focus on the bearish news, such as rising production in Kazakhstan, and possibly Nigeria, Libya etc.
But the oil world is a large and complicated one, and there are bullish stories too. Here are seven from the past week or so:"
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Sunday, 25 September 2016
Citigroup Accelerates Saudi Return Plans With Megabond Mandate - Bloomberg
Citigroup Accelerates Saudi Return Plans With Megabond Mandate - Bloomberg:
"More than a decade after quitting Saudi Arabia, Citigroup Inc. is winning more high-profile deals in the kingdom and quietly plans to compete for more.
The New York-based bank has set up a company-wide task force to target opportunities in Saudi Arabia and holds weekly calls to coordinate the push, people familiar with the firm’s strategy said, asking not to be identified because the plan is private. Those leading the charge include Alberto Verme, banking chairman for Europe, the Middle East and Africa, and regional Chief Executive Officer Atiq Ur Rehman, according to three of the people.
The bank’s efforts may be paying off after it won a role as lead adviser on Saudi Arabia’s first international bond sale, which could raise at least $10 billion as soon as next month. Citigroup is keen to profit from a potential fee bonanza as the nation undergoes an unprecedented economic shakeup, including plans to create the world’s largest sovereign wealth fund and sell shares of crude giant Saudi Arabia Oil Co. in an initial public offering."
'via Blog this'
"More than a decade after quitting Saudi Arabia, Citigroup Inc. is winning more high-profile deals in the kingdom and quietly plans to compete for more.
The New York-based bank has set up a company-wide task force to target opportunities in Saudi Arabia and holds weekly calls to coordinate the push, people familiar with the firm’s strategy said, asking not to be identified because the plan is private. Those leading the charge include Alberto Verme, banking chairman for Europe, the Middle East and Africa, and regional Chief Executive Officer Atiq Ur Rehman, according to three of the people.
The bank’s efforts may be paying off after it won a role as lead adviser on Saudi Arabia’s first international bond sale, which could raise at least $10 billion as soon as next month. Citigroup is keen to profit from a potential fee bonanza as the nation undergoes an unprecedented economic shakeup, including plans to create the world’s largest sovereign wealth fund and sell shares of crude giant Saudi Arabia Oil Co. in an initial public offering."
'via Blog this'
Saudi Arabia Injects $5.3 Billion in Bank System Amid Crunch - Bloomberg
Saudi Arabia Injects $5.3 Billion in Bank System Amid Crunch - Bloomberg:
"Saudi Arabia’s central bank stepped up efforts to support lenders in the Arab world’s biggest economy as they grapple with the effects of low oil prices.
The Saudi Arabian Monetary Agency, as the central bank is known, said it decided to give banks about 20 billion riyals ($5.3 billion) in the form of time deposits “on behalf of government entities.” It’s also introducing seven-day and 28-day repurchase agreements, as part of its “supportive monetary policy.”
The plunge in oil prices over the past two years forced the government to draw down on its deposits in the banking system, squeezing domestic liquidity. That’s pushed up the three-month Saudi Interbank Offered Rate, a key benchmark used for pricing loans, to the highest level since 2009. The central bank was said to have offered lenders 15 billion riyals in short-term loans in June to help ease liquidity constraints."
'via Blog this'
"Saudi Arabia’s central bank stepped up efforts to support lenders in the Arab world’s biggest economy as they grapple with the effects of low oil prices.
The Saudi Arabian Monetary Agency, as the central bank is known, said it decided to give banks about 20 billion riyals ($5.3 billion) in the form of time deposits “on behalf of government entities.” It’s also introducing seven-day and 28-day repurchase agreements, as part of its “supportive monetary policy.”
The plunge in oil prices over the past two years forced the government to draw down on its deposits in the banking system, squeezing domestic liquidity. That’s pushed up the three-month Saudi Interbank Offered Rate, a key benchmark used for pricing loans, to the highest level since 2009. The central bank was said to have offered lenders 15 billion riyals in short-term loans in June to help ease liquidity constraints."
'via Blog this'
MIDEAST STOCKS-Major Gulf bourses retreat after crude tumbled; Telcos mixed | Reuters
MIDEAST STOCKS-Major Gulf bourses retreat after crude tumbled; Telcos mixed | Reuters:
"Petrochemical shares were the main drag on Saudi Arabia's equity index after oil prices fell 4 percent at the end of last week, while Qatar's main index regained some ground.
Riyadh's main index fell 0.6 percent to 5,913 points in low volumes, hitting a fresh 7-month low. Bellwether petrochemical producer Saudi Basic Industries declined 2.4 percent.
The retail segment was also weak, with one of the largest electronics stores, Jarir Marketing, dropping 2.0 percent."
'via Blog this'
"Petrochemical shares were the main drag on Saudi Arabia's equity index after oil prices fell 4 percent at the end of last week, while Qatar's main index regained some ground.
Riyadh's main index fell 0.6 percent to 5,913 points in low volumes, hitting a fresh 7-month low. Bellwether petrochemical producer Saudi Basic Industries declined 2.4 percent.
The retail segment was also weak, with one of the largest electronics stores, Jarir Marketing, dropping 2.0 percent."
'via Blog this'
Russia decries ‘castles in the sky’ as plans converge on $40 oil | GulfNews.com
Russia decries ‘castles in the sky’ as plans converge on $40 oil | GulfNews.com:
"Oil has traded above $40 for five months, but Russia’s future economic plans increasingly revolve around crude prices at that level.
The price of Russia’s main export blend Urals at $40 a barrel will be used to calculate the country’s budget in 2017-2019, and a fiscal mechanism that will go into effect from 2020 should be set at the same level — or $10 less than previously suggested, Finance Minister Anton Siluanov said at a conference in Moscow on Friday. The so-called budget rule, which would prevent the government from spending surplus revenue above a preset oil price, aims to insulate the economy from the ups and downs in crude and shield the exchange rate by withdrawing all additional income into reserves.
“Plans can’t be made under the assumption that prices will grow and demand for our products will rise,” Siluanov said. The Finance Ministry “always advocates a position against building exuberant plans, castles in the sky.”"
'via Blog this'
"Oil has traded above $40 for five months, but Russia’s future economic plans increasingly revolve around crude prices at that level.
The price of Russia’s main export blend Urals at $40 a barrel will be used to calculate the country’s budget in 2017-2019, and a fiscal mechanism that will go into effect from 2020 should be set at the same level — or $10 less than previously suggested, Finance Minister Anton Siluanov said at a conference in Moscow on Friday. The so-called budget rule, which would prevent the government from spending surplus revenue above a preset oil price, aims to insulate the economy from the ups and downs in crude and shield the exchange rate by withdrawing all additional income into reserves.
“Plans can’t be made under the assumption that prices will grow and demand for our products will rise,” Siluanov said. The Finance Ministry “always advocates a position against building exuberant plans, castles in the sky.”"
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Turkey cut to junk as Moody’s concludes its post-coup review | GulfNews.com
Turkey cut to junk as Moody’s concludes its post-coup review | GulfNews.com:
"Turkey’s sovereign credit rating was cut to junk by Moody’s Investor Service, which concluded a review initiated after an unsuccessful coup attempt on July 15.
Moody’s cited rising risks related to Turkey’s external financing needs and a weakening in credit fundamentals as economic growth slows. The rating was cut to Ba1 from Baa3, leaving Fitch Ratings as the only major ratings company to keep Turkey at investment grade.
Erdogan Doesn’t Care at All If Turkey Gets Downgraded to Junk
"
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"Turkey’s sovereign credit rating was cut to junk by Moody’s Investor Service, which concluded a review initiated after an unsuccessful coup attempt on July 15.
Moody’s cited rising risks related to Turkey’s external financing needs and a weakening in credit fundamentals as economic growth slows. The rating was cut to Ba1 from Baa3, leaving Fitch Ratings as the only major ratings company to keep Turkey at investment grade.
Erdogan Doesn’t Care at All If Turkey Gets Downgraded to Junk
"
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No Respite for Battered Saudi Stocks as IPO Pipeline Shrinks - Bloomberg
No Respite for Battered Saudi Stocks as IPO Pipeline Shrinks - Bloomberg:
"Add this to the reasons why 2016 isn’t the year for Saudi stocks: the IPO pipeline is drying up.
Two companies have announced plans for initial public offerings this year, down from six in 2015, putting the Saudi market on track for its slowest lineup since 2004. That compares with nine in Malaysia, another energy-dependent developing economy whose main stock index is poised for its third straight annual drop following the retreat in oil prices."
'via Blog this'
"Add this to the reasons why 2016 isn’t the year for Saudi stocks: the IPO pipeline is drying up.
Two companies have announced plans for initial public offerings this year, down from six in 2015, putting the Saudi market on track for its slowest lineup since 2004. That compares with nine in Malaysia, another energy-dependent developing economy whose main stock index is poised for its third straight annual drop following the retreat in oil prices."
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MIDEAST STOCKS-Gulf bourses start week down, but Qatar slightly up | Reuters
MIDEAST STOCKS-Gulf bourses start week down, but Qatar slightly up | Reuters:
"Petrochemical shares dragged Saudi Arabia's equity index lower in early trade on Sunday after oil prices fell 4 percent at the end of last week, while Qatar's main index regained some ground.
Riyadh's main index slipped 0.3 percent after 15 minutes of trade, with bellwether petrochemical producer Saudi Basic Industries declining 0.9 percent.
The retail segment was also weak, with one of the largest electronics stores, Jarir Marketing, down 1.0 percent."
'via Blog this'
"Petrochemical shares dragged Saudi Arabia's equity index lower in early trade on Sunday after oil prices fell 4 percent at the end of last week, while Qatar's main index regained some ground.
Riyadh's main index slipped 0.3 percent after 15 minutes of trade, with bellwether petrochemical producer Saudi Basic Industries declining 0.9 percent.
The retail segment was also weak, with one of the largest electronics stores, Jarir Marketing, down 1.0 percent."
'via Blog this'
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