US oil stocks hit on rising supply worries:
"The US energy sector took a hit on Monday amid rising concerns that American drillers will be pumping oil more aggressively with crude prices sitting north of $50 a barrel.
The S&P 500 energy sector slipped on Monday by 1 per cent, leading the decline on the benchmark index. Transocean, an operator of offshore oil rigs, was among the worst performers, falling by 3 per cent to $13.45.
Meanwhile, exploration and production companies that are seen as sensitive to fluctuations in the oil price also took a hit. Marathon Oil declined by 3.7 per cent to $16.59, while Apache was down by 2.9 per cent to $57.94."
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Monday, 6 February 2017
Hedge funds make record bet on rising oil prices
Hedge funds make record bet on rising oil prices:
"Hedge funds have amassed the biggest ever bet on rising oil prices as investors back Opec’s bid to tighten the crude market and seek protection against fears of inflation.
Data from regulators and exchanges showed speculators have built long positions equivalent to almost 1bn barrels of crude across the major contracts, while short positions amount to just 111m barrels.
This one-sided bet has left speculative investors holding a record net long position — the difference between bets on rising and falling prices — in Brent crude and West Texas Intermediate futures and options contracts equivalent to 885m barrels by January 31."
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"Hedge funds have amassed the biggest ever bet on rising oil prices as investors back Opec’s bid to tighten the crude market and seek protection against fears of inflation.
Data from regulators and exchanges showed speculators have built long positions equivalent to almost 1bn barrels of crude across the major contracts, while short positions amount to just 111m barrels.
This one-sided bet has left speculative investors holding a record net long position — the difference between bets on rising and falling prices — in Brent crude and West Texas Intermediate futures and options contracts equivalent to 885m barrels by January 31."
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Liquidity conditions to constrain loan growth | GulfNews.com
Liquidity conditions to constrain loan growth | GulfNews.com:
"Liquidity remains a major constraint to credit growth across the GCC. In the UAE, there is a 4 per cent rise in delay of payments, because of a lack of bank lending and a liquidity crunch. “Notifications of overdue have increased in key sectors of the country’s economy. Comparing figures of third quarter 2016 from the previous quarter of the same year, the highest increase of overdue notifications in the UAE was registered from the metal traders and building materials or construction sector (+26 per cent), followed by the general trading sector (+22 per cent),” said Massimo Falcioni, CEO of Middle East Countries at Coface. Based on Coface’s monitoring of 23,000 companies in the UAE and Saudi Arabia, a total of 814 runaway cases of UAE-based businesses was registered from Q3 2015 to Q4 2016 (six quarters), yielding a 200 per cent increase from the previous year. More than half (55 per cent) of these runaway cases were businesses in the general trading sector."
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"Liquidity remains a major constraint to credit growth across the GCC. In the UAE, there is a 4 per cent rise in delay of payments, because of a lack of bank lending and a liquidity crunch. “Notifications of overdue have increased in key sectors of the country’s economy. Comparing figures of third quarter 2016 from the previous quarter of the same year, the highest increase of overdue notifications in the UAE was registered from the metal traders and building materials or construction sector (+26 per cent), followed by the general trading sector (+22 per cent),” said Massimo Falcioni, CEO of Middle East Countries at Coface. Based on Coface’s monitoring of 23,000 companies in the UAE and Saudi Arabia, a total of 814 runaway cases of UAE-based businesses was registered from Q3 2015 to Q4 2016 (six quarters), yielding a 200 per cent increase from the previous year. More than half (55 per cent) of these runaway cases were businesses in the general trading sector."
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Saudi Aramco Hires Banks for First Bond Sale Ahead of IPO - Bloomberg
Saudi Aramco Hires Banks for First Bond Sale Ahead of IPO - Bloomberg:
"Saudi Arabian Oil Co. picked four banks to advise on its first bond sale, two people familiar with the matter said, ahead of plans for the world’s largest initial public offering. Saudi Aramco, as the company is known, selected HSBC Holdings Plc’s local unit and Riyad Capital to help with the sale of riyal-denominated Islamic bonds, or sukuk, before the end of June, said the people, asking not to be identified as the information is private. NCB Capital Co. and Alinma Investment Co. are also working on the deal that could be followed by dollar-denominated bonds, two other people said. The sukuk is part of Aramco’s plans to raise as much as $10 billion in bonds this year, one of the people said. Aramco and HSBC Saudi Arabia declined to comment, while Riyad Capital, NCB Capital and Alinma Investment didn’t respond to requests for comment. "
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"Saudi Arabian Oil Co. picked four banks to advise on its first bond sale, two people familiar with the matter said, ahead of plans for the world’s largest initial public offering. Saudi Aramco, as the company is known, selected HSBC Holdings Plc’s local unit and Riyad Capital to help with the sale of riyal-denominated Islamic bonds, or sukuk, before the end of June, said the people, asking not to be identified as the information is private. NCB Capital Co. and Alinma Investment Co. are also working on the deal that could be followed by dollar-denominated bonds, two other people said. The sukuk is part of Aramco’s plans to raise as much as $10 billion in bonds this year, one of the people said. Aramco and HSBC Saudi Arabia declined to comment, while Riyad Capital, NCB Capital and Alinma Investment didn’t respond to requests for comment. "
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Qatar Petroleum is in growth mode, seeks international projects: CEO | Reuters
Qatar Petroleum is in growth mode, seeks international projects: CEO | Reuters:
"State-owned energy giant Qatar Petroleum aims to expand its liquefied natural gas (LNG) assets abroad, increasing its reserves and production capacity, chief executive Saad al-Kaabi said on Monday.
"You will see us going internationally with some of the partners we have in Qatar, this year and next year...We are in growth mode," Kaabi told reporters at the company's headquarters in Doha.
"We will continue to be in growth mode for a while. Some (growth) will be national but the majority will be international.""
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"State-owned energy giant Qatar Petroleum aims to expand its liquefied natural gas (LNG) assets abroad, increasing its reserves and production capacity, chief executive Saad al-Kaabi said on Monday.
"You will see us going internationally with some of the partners we have in Qatar, this year and next year...We are in growth mode," Kaabi told reporters at the company's headquarters in Doha.
"We will continue to be in growth mode for a while. Some (growth) will be national but the majority will be international.""
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Fitch: GCC VAT a Test for Islamic Finance | Reuters
Fitch: GCC VAT a Test for Islamic Finance | Reuters:
"The plan to introduce Value Added Tax (VAT) in Gulf Cooperation Council (GCC) member states could be a key test for the region's Islamic finance industry regarding tax parity between conventional and Islamic finance transactions, Fitch Ratings says. It could affect all the main pillars of the industry: Islamic banks, Sukuk, Takaful and sharia-compliant corporates and fund managers. According to media reports last week, Saudi Arabia and Bahrain approved the implementation of VAT in the GCC; however, local implementation laws must still be agreed in each country. This paves the way for the introduction of an expected 5% VAT rate as early as the beginning of 2018, in a region with little history of taxation. Without tax neutrality or equality rules, the introduction of VAT would put Islamic finance transactions at a disadvantage to conventional transactions. In principal, Islamic finance activities should have a real economic purpose, involving services and/or asset-based or asset-backed transactions. For example, a murabaha sukuk, a simple, commonly used contract, can be summarised as the sale of an agreed asset or commodity at cost plus an agreed profit margin, which may then be financed in instalments."
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"The plan to introduce Value Added Tax (VAT) in Gulf Cooperation Council (GCC) member states could be a key test for the region's Islamic finance industry regarding tax parity between conventional and Islamic finance transactions, Fitch Ratings says. It could affect all the main pillars of the industry: Islamic banks, Sukuk, Takaful and sharia-compliant corporates and fund managers. According to media reports last week, Saudi Arabia and Bahrain approved the implementation of VAT in the GCC; however, local implementation laws must still be agreed in each country. This paves the way for the introduction of an expected 5% VAT rate as early as the beginning of 2018, in a region with little history of taxation. Without tax neutrality or equality rules, the introduction of VAT would put Islamic finance transactions at a disadvantage to conventional transactions. In principal, Islamic finance activities should have a real economic purpose, involving services and/or asset-based or asset-backed transactions. For example, a murabaha sukuk, a simple, commonly used contract, can be summarised as the sale of an agreed asset or commodity at cost plus an agreed profit margin, which may then be financed in instalments."
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MIDEAST STOCKS-UAE outperforms in an otherwise flat Gulf; Egypt dips | Reuters
MIDEAST STOCKS-UAE outperforms in an otherwise flat Gulf; Egypt dips | Reuters:
"Most stock markets in the Gulf moved little on Monday but United Arab Emirates bourses outperformed with mid-to-large sized companies boosting Dubai, while Egypt's index slipped in thin volume.
Dubai's main index added 1.2 percent as Emaar Properties gained 2.7 percent after saying it would recover 1.22 billion dirhams ($332 million) from an insurance claim for a fire that engulfed one of its hotels in late 2015.
The Dubai-listed shares of GFH Financial Group fell as much as 6.5 percent during the day but ended 0.4 percent higher. The Bahrain-based financial firm announced plans for a big increase in share capital to fund a new growth strategy of acquiring financial institutions and infrastructure investments."
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"Most stock markets in the Gulf moved little on Monday but United Arab Emirates bourses outperformed with mid-to-large sized companies boosting Dubai, while Egypt's index slipped in thin volume.
Dubai's main index added 1.2 percent as Emaar Properties gained 2.7 percent after saying it would recover 1.22 billion dirhams ($332 million) from an insurance claim for a fire that engulfed one of its hotels in late 2015.
The Dubai-listed shares of GFH Financial Group fell as much as 6.5 percent during the day but ended 0.4 percent higher. The Bahrain-based financial firm announced plans for a big increase in share capital to fund a new growth strategy of acquiring financial institutions and infrastructure investments."
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UAE’s first residential Reit launched | The National
UAE’s first residential Reit launched | The National:
"The UAE’s first residential real estate investment trust (Reit) has been established to tap improving yields after two years of price declines. The company behind Emirates Reit has teamed up with Al Hamra Real Estate Development and National Bonds to create the investment trust that will comprise about 500 homes in Dubai and Ras Al Khaimah (RAK). "We believe this is the right time to enter the residential market and launch The Residential Reit," said Sylvain Vieujot, the chairman of Equitativa. "Residential yields are attractive in the current environment and are expected to provide medium term upside. There continues to be significant interest in reits across the region from both institutional and private investors.""
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"The UAE’s first residential real estate investment trust (Reit) has been established to tap improving yields after two years of price declines. The company behind Emirates Reit has teamed up with Al Hamra Real Estate Development and National Bonds to create the investment trust that will comprise about 500 homes in Dubai and Ras Al Khaimah (RAK). "We believe this is the right time to enter the residential market and launch The Residential Reit," said Sylvain Vieujot, the chairman of Equitativa. "Residential yields are attractive in the current environment and are expected to provide medium term upside. There continues to be significant interest in reits across the region from both institutional and private investors.""
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Qatar Holding invests $250 million in India’s ArthVeda Fund | GulfNews.com
Qatar Holding invests $250 million in India’s ArthVeda Fund | GulfNews.com:
"Qatar Holding (QH) is investing $250 million in Mumbai-based ArthVeda Fund Management Pvt. Ltd’s (AVFM) affordable low and middle income (LMI) housing fund, which projects an internal rate of return (IRR) of 18 to 21 per cent. The Qatar Holding’s investment in the Indian fund comes close on the heels of the Indian Government declaring affordable housing as infrastructure category in the recently announced federal budget. Qatar Holding LLC is a private equity firm specializing in strategic and direct investments in private and public equity. AVFM is part of the Wadhawan Global Capital which includes the flagship Dewan Housing Finance Corporation Ltd (DHFL). "
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"Qatar Holding (QH) is investing $250 million in Mumbai-based ArthVeda Fund Management Pvt. Ltd’s (AVFM) affordable low and middle income (LMI) housing fund, which projects an internal rate of return (IRR) of 18 to 21 per cent. The Qatar Holding’s investment in the Indian fund comes close on the heels of the Indian Government declaring affordable housing as infrastructure category in the recently announced federal budget. Qatar Holding LLC is a private equity firm specializing in strategic and direct investments in private and public equity. AVFM is part of the Wadhawan Global Capital which includes the flagship Dewan Housing Finance Corporation Ltd (DHFL). "
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Huge Gas Finds Can Keep Europe Warm If the Arguing Stops - Bloomberg
Huge Gas Finds Can Keep Europe Warm If the Arguing Stops - Bloomberg:
"As the helicopter roars its way west from the Tel Aviv coast, two dots emerge from the featureless blue. Closer up, they begin to take shape: Giant platforms for extracting gas from under the Mediterranean Sea.
“A few years ago, there was nothing to see around here,” Yossi Abu yells from the front seats. And soon, according to the Delek Drilling LP CEO, there’ll be more. He points northwards. “Over there, we’ll build a new platform,” he says. “To export gas to Egypt and Turkey.”
Abu makes it sound easy. It won’t be. Hundreds of miles of undersea pipelines will cost billions of dollars and pose a technical challenge for their designers. And even that task is dwarfed by the political engineering required to build stable energy routes through a conflict-ridden region."
'via Blog this'
"As the helicopter roars its way west from the Tel Aviv coast, two dots emerge from the featureless blue. Closer up, they begin to take shape: Giant platforms for extracting gas from under the Mediterranean Sea.
“A few years ago, there was nothing to see around here,” Yossi Abu yells from the front seats. And soon, according to the Delek Drilling LP CEO, there’ll be more. He points northwards. “Over there, we’ll build a new platform,” he says. “To export gas to Egypt and Turkey.”
Abu makes it sound easy. It won’t be. Hundreds of miles of undersea pipelines will cost billions of dollars and pose a technical challenge for their designers. And even that task is dwarfed by the political engineering required to build stable energy routes through a conflict-ridden region."
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Iran says U.S. sanctions stop American oil firms taking part in projects | Reuters
Iran says U.S. sanctions stop American oil firms taking part in projects | Reuters:
"Iran has imposed no restrictions on U.S. oil firms willing to participate in energy projects in the country but American sanctions make such cooperation impossible, Iran's deputy oil minister said on Monday.
"Iran has not imposed any restrictions on the U.S. companies, but they cannot participate in our (oil and gas) tenders due to the U.S. laws," Amir Hossein Zamaninia, deputy oil minister for trade and international affairs, was quoted as saying by state news agency IRNA.
"Based on the U.S. Congress sanctions, the American oil companies cannot work in Iran," he added."
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"Iran has imposed no restrictions on U.S. oil firms willing to participate in energy projects in the country but American sanctions make such cooperation impossible, Iran's deputy oil minister said on Monday.
"Iran has not imposed any restrictions on the U.S. companies, but they cannot participate in our (oil and gas) tenders due to the U.S. laws," Amir Hossein Zamaninia, deputy oil minister for trade and international affairs, was quoted as saying by state news agency IRNA.
"Based on the U.S. Congress sanctions, the American oil companies cannot work in Iran," he added."
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Ahead of merger, UAE banks NBAD, FGB finalise second-tier management | Reuters
Ahead of merger, UAE banks NBAD, FGB finalise second-tier management | Reuters:
"National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) have picked the second level management team for the combined entity to be created through their merger, sources told Reuters on Monday. In October the two Abu Dhabi lenders said they had appointed the top level management team to run the combined bank, set to be one of the largest in the Middle East and Africa with assets of around $175 billion. Around 70 senior positions have now been filled at what the bank calls the N-2 level, sources said, citing an internal memo sent late Sunday."
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"National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) have picked the second level management team for the combined entity to be created through their merger, sources told Reuters on Monday. In October the two Abu Dhabi lenders said they had appointed the top level management team to run the combined bank, set to be one of the largest in the Middle East and Africa with assets of around $175 billion. Around 70 senior positions have now been filled at what the bank calls the N-2 level, sources said, citing an internal memo sent late Sunday."
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MIDEAST STOCKS-Dubai outperforms early on in otherwise lethargic Gulf | Reuters
MIDEAST STOCKS-Dubai outperforms early on in otherwise lethargic Gulf | Reuters:
"Most stock markets in the Gulf moved little in early trade on Monday because of flat global equity markets and crude oil prices, but Dubai outperformed on the back of advances in mid-to-large sized companies. Dubai's index added 0.5 percent as Emaar Properties gained 0.8 percent after saying it would recover 1.22 billion dirhams ($332 million) from an insurance claim for a fire that engulfed one of its hotels, The Address Downtown, on New Year's Eve 2015. But GFH Financial Group droppped 3.9 percent after announcing plans for a big increase in share capital to fund a new growth strategy of acquiring financial institutions and infrastructure investments."
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"Most stock markets in the Gulf moved little in early trade on Monday because of flat global equity markets and crude oil prices, but Dubai outperformed on the back of advances in mid-to-large sized companies. Dubai's index added 0.5 percent as Emaar Properties gained 0.8 percent after saying it would recover 1.22 billion dirhams ($332 million) from an insurance claim for a fire that engulfed one of its hotels, The Address Downtown, on New Year's Eve 2015. But GFH Financial Group droppped 3.9 percent after announcing plans for a big increase in share capital to fund a new growth strategy of acquiring financial institutions and infrastructure investments."
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