More Oil Spending Cuts Coming as U.A.E. Warns About Supplies - Bloomberg

More Oil Spending Cuts Coming as U.A.E. Warns About Supplies - Bloomberg:

"International oil companies will probably cut investment spending about $370 billion this year and next, according to Wood MacKenzie Ltd., just as the United Arab Emirates warned about a “massive” number of projects being delayed because of the drop in crude prices.
The investment cuts will mean a 3 percent reduction this year in oil and natural gas production, equivalent to 5 million barrels of oil, and another 4 percent, or 6 million barrels, in 2017, Jessica Brewer, a Middle East analyst for WoodMac, said in an interview at the company’s Dubai office Thursday. The global oil industry has postponed a number of projects, raising the risk of a slump in output and a potential shortfall in supply, U.A.E. Energy Minister Suhail Al Mazrouei told reporters in Abu Dhabi Thursday."



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Saudi economy avoids crisis but outlook murky for deficit, growth | Reuters

Saudi economy avoids crisis but outlook murky for deficit, growth | Reuters:

"Saudi Arabia has avoided an economic crisis due to low oil prices this year but the outlook for state finances and growth will remain murky for many months to come, businessmen and analysts in the kingdom say.

Six months after the government launched its most radical economic reforms in decades, it has scored several victories. Drastic spending cuts seem to be reducing its budget deficit, which totaled a record 367 billion riyals ($98 billion) last year, by much more than originally planned.

A $17.5 billion sovereign bond issue last month opened an overseas borrowing channel which Riyadh can use to slow the drawdown of its foreign reserves, buying more time to adjust its economy to an era of cheap oil, and for the foreseeable future almost eliminating the risk of a currency devaluation."



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MIDEAST STOCKS-Egypt jumps on currency float; Saudi up but Qatar sinks | Reuters

MIDEAST STOCKS-Egypt jumps on currency float; Saudi up but Qatar sinks | Reuters:

"Egypt's blue chip equities index jumped on Thursday after the central bank floated the currency, a step which could eventually resolve its hard currency shortage, while Saudi Arabia gained for a second straight week.

The Egyptian EGX30 index soared as much as 8.4 percent in the first hour of trade after the central bank devalued the pound by 32.3 percent to an initial guidance level of 13 pounds to the U.S. dollar.

But reflecting caution among many investors, and profit-taking by those who had anticipated the devaluation, the index closed only 3.4 percent higher in the heaviest trade since early August. The broader EGX100 index rose just 1.7 percent.

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Saudi October PMI at Record Low - Bloomberg

Saudi October PMI at Record Low - Bloomberg:

"Tim Fox, chief economist at Emirates NBD, discusses the PMI data of the U.S.E. and Saudi Arabia, what the data means for the economies and the outlook for oil. He speaks to Manus Cranny and Angie Lau on "Bloomberg Markets: Middle East." (Source: Bloomberg)"



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MIDEAST STOCKS-Qatar falls after chart support breaks, Saudi rises | Reuters

MIDEAST STOCKS-Qatar falls after chart support breaks, Saudi rises | Reuters:

"Most Gulf stock markets moved little early on Thursday but Qatar's index fell after it broke technical support while Saudi Arabia's bourse continued to outperform the region.

Gulf markets showed little reaction to a big monetary policy change in Egypt, where the central bank said it had floated the pound and hiked interest rates by 300 basis points. This triggered a surge in Egyptian stocks at the opening.

Qatar's stock index sank 1.1 percent to 9,966 points after slipping 1.3 percent on Wednesday to 10,073 points; that broke technical support at 10,153-10,160 points, where the September low coincided with the 200-day average."



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