Oil slips as trade war worries outweigh Iran sanctions | Reuters:
Oil prices slipped on Friday, pressured by renewed concerns that a global trade war could dent energy demand, although impending U.S. sanctions on Iran and falling Venezuelan output limited the decline.
Benchmark Brent crude oil LCOc1 fell 35 cents to settle at $77.42 a barrel. U.S. crude CLc1 slipped 45 cents to settle at $69.80.
Brent closed the month 4.3 percent higher while U.S. crude gained 1.5 percent. Oil has been buoyed by tumbling Venezuelan output and declining shipments from Iran ahead of the imposition of U.S. sanctions on Tehran in November.
Friday, 31 August 2018
U.S. crude production rises to record as drilling climbs in Texas: EIA | Reuters
U.S. crude production rises to record as drilling climbs in Texas: EIA | Reuters:
U.S. crude oil production rose 231,000 barrels per day, or 2 percent, to a record 10.674 million bpd in June, the U.S. Energy Information Administration said in a pair of monthly reports on Friday.
The agency also revised its estimate for May up by 1,000 bpd to 10.4 million bpd.
U.S. crude production has been increasing, nearing top producers Russia and Saudi Arabia. Saudi Arabia produced 10.5 million bpd in August, according to a Reuters survey. Russian output was seen at 11.2 million bpd in July, and was expected to hold that level in August.
U.S. crude oil production rose 231,000 barrels per day, or 2 percent, to a record 10.674 million bpd in June, the U.S. Energy Information Administration said in a pair of monthly reports on Friday.
The agency also revised its estimate for May up by 1,000 bpd to 10.4 million bpd.
U.S. crude production has been increasing, nearing top producers Russia and Saudi Arabia. Saudi Arabia produced 10.5 million bpd in August, according to a Reuters survey. Russian output was seen at 11.2 million bpd in July, and was expected to hold that level in August.
OPEC August oil output hits 2018 high despite Iran losses: Reuters survey | Reuters
OPEC August oil output hits 2018 high despite Iran losses: Reuters survey | Reuters:
OPEC oil output has risen this month to a 2018 high as Libyan production recovered and Iraq’s southern exports hit a record, a Reuters survey found, although a cut in Iranian shipments due to U.S. sanctions limited the increase.
The 15-member Organization of the Petroleum Exporting Countries has pumped 32.79 million barrels per day in August, the survey on Friday found, up 220,000 bpd from July’s revised level and the highest this year.
OPEC and allies agreed in June to boost supply as U.S. President Donald Trump urged producers to offset losses caused by the renewed sanctions on Iran and to dampen prices, which this year hit $80 a barrel for the first time since 2014.
OPEC oil output has risen this month to a 2018 high as Libyan production recovered and Iraq’s southern exports hit a record, a Reuters survey found, although a cut in Iranian shipments due to U.S. sanctions limited the increase.
The 15-member Organization of the Petroleum Exporting Countries has pumped 32.79 million barrels per day in August, the survey on Friday found, up 220,000 bpd from July’s revised level and the highest this year.
OPEC and allies agreed in June to boost supply as U.S. President Donald Trump urged producers to offset losses caused by the renewed sanctions on Iran and to dampen prices, which this year hit $80 a barrel for the first time since 2014.
Bruised bankers seek consolation prizes after shelved Aramco IPO | Reuters
Bruised bankers seek consolation prizes after shelved Aramco IPO | Reuters:
Investment banks which lost out on big payouts for the work on the shelved listing of oil giant Aramco are lining up for a raft of other projects as Saudi Arabia pursues reforms.
Banks including JPMorgan (JPM.N) and Morgan Stanley (MS.N) worked for months to prepare what would have been the biggest ever stock market debut. But the plan to sell 5 percent of the company for a targeted $100 billion was pulled.
The bankers were paid retainer fees but were expecting around $200 million would be shared among all the banks involved when the deal was done.
Investment banks which lost out on big payouts for the work on the shelved listing of oil giant Aramco are lining up for a raft of other projects as Saudi Arabia pursues reforms.
Banks including JPMorgan (JPM.N) and Morgan Stanley (MS.N) worked for months to prepare what would have been the biggest ever stock market debut. But the plan to sell 5 percent of the company for a targeted $100 billion was pulled.
The bankers were paid retainer fees but were expecting around $200 million would be shared among all the banks involved when the deal was done.
Oil Set for Monthly Gain as Specter of Supply Cuts Haunts Market - Bloomberg
Oil Set for Monthly Gain as Specter of Supply Cuts Haunts Market - Bloomberg:
At the end of a turbulent month of trading, oil futures are revealing a potential crude crunch outside the U.S. as well as too much supply stuck in the heart of America.
After prices fell in the first half of August on fears that a U.S.-China trade spat and an emerging market crisis stoked by turmoil in Turkey would dent demand, oil has rebounded in recent weeks. Global benchmark Brent crude is poised for a 4.6 percent gain this month, while the advance in U.S. marker West Texas Intermediate is smaller at 2.3 percent.
The bigger jump in London futures has taken their premium over those in New York to the biggest since June, and reflects growing concerns that impending U.S. sanctions on Iran will curb the OPEC member’s exports and create a supply gap that other producers may struggle to fill. Meanwhile, in America, booming output inland is increasingly finding it difficult to reach refineries on the coast and export terminals because of a lack of pipelines.
At the end of a turbulent month of trading, oil futures are revealing a potential crude crunch outside the U.S. as well as too much supply stuck in the heart of America.
After prices fell in the first half of August on fears that a U.S.-China trade spat and an emerging market crisis stoked by turmoil in Turkey would dent demand, oil has rebounded in recent weeks. Global benchmark Brent crude is poised for a 4.6 percent gain this month, while the advance in U.S. marker West Texas Intermediate is smaller at 2.3 percent.
The bigger jump in London futures has taken their premium over those in New York to the biggest since June, and reflects growing concerns that impending U.S. sanctions on Iran will curb the OPEC member’s exports and create a supply gap that other producers may struggle to fill. Meanwhile, in America, booming output inland is increasingly finding it difficult to reach refineries on the coast and export terminals because of a lack of pipelines.
Oil slips as trade war worries outweigh Iran sanctions | Reuters
Oil slips as trade war worries outweigh Iran sanctions | Reuters:
Oil prices slipped on Friday as concerns over the impact of a global trade war depressed sentiment, although impending U.S. sanctions on Iran and falling Venezuelan output limited losses.
Benchmark Brent crude oil LCOc1 was down 40 cents a barrel at $77.37 by 0840 GMT. U.S. light crude CLc1 was 30 cents lower at $69.95.
U.S. President Donald Trump threatened in an interview with Bloomberg News on Thursday to withdraw from the World Trade Organization, his latest salvo in a deepening dispute between the United States and its major trading partners.
Oil prices slipped on Friday as concerns over the impact of a global trade war depressed sentiment, although impending U.S. sanctions on Iran and falling Venezuelan output limited losses.
Benchmark Brent crude oil LCOc1 was down 40 cents a barrel at $77.37 by 0840 GMT. U.S. light crude CLc1 was 30 cents lower at $69.95.
U.S. President Donald Trump threatened in an interview with Bloomberg News on Thursday to withdraw from the World Trade Organization, his latest salvo in a deepening dispute between the United States and its major trading partners.
Thursday, 30 August 2018
Abraaj restructure on smoother path following bounced cheque settlement - The National
Abraaj restructure on smoother path following bounced cheque settlement - The National:
A long-awaited out-of-court settlement in a bounced cheque criminal case against the founder of private equity firm Abraaj Group dislodges concerns of complications in the firm’s provisional liquidation, and should comfort other creditors, analysts said.
“The settlement clears things up a lot, because whenever there is a criminal accusation in the background it complicates restructuring plans and the sale of parts of the business in question,” said Richard Segal, senior analyst at Manulife Asset Management.
The embattled buyout firm – once the Middle East’s largest with almost $14 billion (Dh51.42bn) of assets under management at its peak – has faced a liquidity crisis since some investors accused it in February of mismanaging funds. Abraaj is undergoing a court-supervised restructuring in the Cayman Islands to repay an estimated $1bn of debt.
A long-awaited out-of-court settlement in a bounced cheque criminal case against the founder of private equity firm Abraaj Group dislodges concerns of complications in the firm’s provisional liquidation, and should comfort other creditors, analysts said.
“The settlement clears things up a lot, because whenever there is a criminal accusation in the background it complicates restructuring plans and the sale of parts of the business in question,” said Richard Segal, senior analyst at Manulife Asset Management.
The embattled buyout firm – once the Middle East’s largest with almost $14 billion (Dh51.42bn) of assets under management at its peak – has faced a liquidity crisis since some investors accused it in February of mismanaging funds. Abraaj is undergoing a court-supervised restructuring in the Cayman Islands to repay an estimated $1bn of debt.
Dubai targets Chinese real estate investors in global push
Dubai targets Chinese real estate investors in global push:
The Dubai Land Department (DLD) will host a real estate exhibition in Shanghai today as part of a series of events showcasing the sector worldwide.
It comes as the real estate sector in the emirate struggles with a glut of new homes and comes under pressure from rising interest rates which make mortgage payments more expensive.
Chinese interest in Dubai real estate has increased in recent years amid warnings that the domestic property market in China is becoming over-heated in some cities.
The Dubai Land Department (DLD) will host a real estate exhibition in Shanghai today as part of a series of events showcasing the sector worldwide.
It comes as the real estate sector in the emirate struggles with a glut of new homes and comes under pressure from rising interest rates which make mortgage payments more expensive.
Chinese interest in Dubai real estate has increased in recent years amid warnings that the domestic property market in China is becoming over-heated in some cities.
Qatar Stock Exchange market capitalisation reaches QR519.5bn
Qatar Stock Exchange market capitalisation reaches QR519.5bn:
Qatar Stock Exchange (QSE) has seen its market capitalisation reach QR519.5bn at the end of the trading week that closed on Thursday.
This was 5.2% more than the previous trading week, QNB Financial Services said in its ‘weekly market report.’
The QSE Index increased 438.57 points or 4.64% in five-day sessions to close at 9,886.45 during the trading week, QNB Financial Services said.
Qatar Stock Exchange (QSE) has seen its market capitalisation reach QR519.5bn at the end of the trading week that closed on Thursday.
This was 5.2% more than the previous trading week, QNB Financial Services said in its ‘weekly market report.’
The QSE Index increased 438.57 points or 4.64% in five-day sessions to close at 9,886.45 during the trading week, QNB Financial Services said.
Jobseekers from certain countries to pay security deposit for UAE visa | ZAWYA MENA Edition
Jobseekers from certain countries to pay security deposit for UAE visa | ZAWYA MENA Edition:
Jobseekers from certain countries coming to the UAE may need to pay a security deposit before they are issued visit and tourist visas, the Federal Authority for Identity and Citizenship has said.
Dr Yousuf Al Sharif, legal adviser to the Federal Authority for Identity and Citizenship, said the authority is considering putting in place "special or pre-conditions" for jobseekers. "If pre-conditions are put in place, it will ensure that these visitors leave the country after the expiry of their visas," said Dr Al Sharif.
The tougher regulations will help the UAE authorities reduce the number of visit visa violators.
Jobseekers from certain countries coming to the UAE may need to pay a security deposit before they are issued visit and tourist visas, the Federal Authority for Identity and Citizenship has said.
Dr Yousuf Al Sharif, legal adviser to the Federal Authority for Identity and Citizenship, said the authority is considering putting in place "special or pre-conditions" for jobseekers. "If pre-conditions are put in place, it will ensure that these visitors leave the country after the expiry of their visas," said Dr Al Sharif.
The tougher regulations will help the UAE authorities reduce the number of visit visa violators.
Crude rises to highest since July on sanction concerns | Reuters
Crude rises to highest since July on sanction concerns | Reuters:
Oil prices rose on Thursday to the highest in more than a month, extending gains on growing evidence of disruptions to crude supply from Iran and Venezuela and after a fall in U.S. inventories.
Brent crude oil LCOc1 rose 63 cents a barrel to settle at $77.77. U.S. crude CLc1 settled 74 cents higher at $70.25 a barrel, after earlier hitting a session high of $70.50. Both contracts were at their highest in more than one month.
A rally that started earlier in the day accelerated as U.S. crude rose above $70 a barrel, and more speculators entered the market, said Bob Yawger, director of futures at Mizuho in New York. “There are pretty good tailwinds here that will keep people jumping on board,” he said. Brent’s wide premium to WTI is likely to encourage exports of U.S. crude, keeping U.S. inventories lower and boosting activity following weekly inventory data, he said.
Oil prices rose on Thursday to the highest in more than a month, extending gains on growing evidence of disruptions to crude supply from Iran and Venezuela and after a fall in U.S. inventories.
Brent crude oil LCOc1 rose 63 cents a barrel to settle at $77.77. U.S. crude CLc1 settled 74 cents higher at $70.25 a barrel, after earlier hitting a session high of $70.50. Both contracts were at their highest in more than one month.
A rally that started earlier in the day accelerated as U.S. crude rose above $70 a barrel, and more speculators entered the market, said Bob Yawger, director of futures at Mizuho in New York. “There are pretty good tailwinds here that will keep people jumping on board,” he said. Brent’s wide premium to WTI is likely to encourage exports of U.S. crude, keeping U.S. inventories lower and boosting activity following weekly inventory data, he said.
Now you see it, now you don't: oil surplus vanishes ahead of Iran deadline | Reuters
Now you see it, now you don't: oil surplus vanishes ahead of Iran deadline | Reuters:
An overhang of homeless crude in the Atlantic Basin has halved in recent weeks, suggesting oil traders are bracing for a further supply loss from Iran due to U.S. sanctions and a new rally in prices.
Iran’s oil exports are already dropping fast as refiners scurry to find alternatives ahead of a reimposition of U.S. sanctions in early November, which in turn has helped drain a glut of unsold oil.
The millions of unsold barrels of crude that had pooled around northwest Europe, the Mediterranean and West Africa over July and August are rapidly draining.
An overhang of homeless crude in the Atlantic Basin has halved in recent weeks, suggesting oil traders are bracing for a further supply loss from Iran due to U.S. sanctions and a new rally in prices.
Iran’s oil exports are already dropping fast as refiners scurry to find alternatives ahead of a reimposition of U.S. sanctions in early November, which in turn has helped drain a glut of unsold oil.
The millions of unsold barrels of crude that had pooled around northwest Europe, the Mediterranean and West Africa over July and August are rapidly draining.
MIDEAST STOCKS-Saudi falls for second day on valuation concerns, other Gulf mkts up | Reuters
MIDEAST STOCKS-Saudi falls for second day on valuation concerns, other Gulf mkts up | Reuters:
Saudi stock market fell for the second day in a row on Thursday as investors continued to cut positions in the absence of fresh news and concerns about valuations. Other big Gulf markets rose.
Middle East fund managers have become less positive towards equities in Saudi Arabia and Kuwait after Turkey’s currency crisis triggered volatility in the markets this month, a monthly Reuters poll showed on Thursday.
The Saudi index fell 0.9 percent, hurt by selling in market heavyweight Saudi Basic Industries, which dropped 1.1 percent, and Al Rajhi Bank declined 1 percent. The Saudi index is still up 9.9 percent since the start of the year, but has seen selling this quarter.
Saudi stock market fell for the second day in a row on Thursday as investors continued to cut positions in the absence of fresh news and concerns about valuations. Other big Gulf markets rose.
Middle East fund managers have become less positive towards equities in Saudi Arabia and Kuwait after Turkey’s currency crisis triggered volatility in the markets this month, a monthly Reuters poll showed on Thursday.
The Saudi index fell 0.9 percent, hurt by selling in market heavyweight Saudi Basic Industries, which dropped 1.1 percent, and Al Rajhi Bank declined 1 percent. The Saudi index is still up 9.9 percent since the start of the year, but has seen selling this quarter.
Iran Says It Will Block Middle East Oil Exports If It Can't Ship - Bloomberg
Iran Says It Will Block Middle East Oil Exports If It Can't Ship - Bloomberg:
Iran will halt Middle East oil exports if it’s not allowed to ship its crude through the Strait of Hormuz, according to a top military official.
If the Islamic Republic can’t use the Strait for its oil exports, “there will be no security for others either and no other crude will be exported from this region,” Armed Forces Chief of Staff Mohammad Bagheri said, state-run Mehr news agency reported. The U.S. Army and other military forces present in the Middle East “know full well that the smallest mistake in the region will bear a heavy cost for them.”
Iran has been threatening to halt exports from Hormuz, the world’s most important oil chokepoint, since early July. Bagheri’s comments come after the U.S. reimposed a set of economic sanctions that had been eased against Iran as part of a 2015 international nuclear agreement. The measures are set to intensify in November when they will target Iran’s oil sales - the lifeline of its economy.
Iran will halt Middle East oil exports if it’s not allowed to ship its crude through the Strait of Hormuz, according to a top military official.
If the Islamic Republic can’t use the Strait for its oil exports, “there will be no security for others either and no other crude will be exported from this region,” Armed Forces Chief of Staff Mohammad Bagheri said, state-run Mehr news agency reported. The U.S. Army and other military forces present in the Middle East “know full well that the smallest mistake in the region will bear a heavy cost for them.”
Iran has been threatening to halt exports from Hormuz, the world’s most important oil chokepoint, since early July. Bagheri’s comments come after the U.S. reimposed a set of economic sanctions that had been eased against Iran as part of a 2015 international nuclear agreement. The measures are set to intensify in November when they will target Iran’s oil sales - the lifeline of its economy.
Actis bids for Abraaj's emerging market funds -sources | Reuters
Actis bids for Abraaj's emerging market funds -sources | Reuters:
Actis, a leading emerging market investor, has bid to buy the bulk of the private equity funds’ business of stricken Dubai-based Abraaj, two sources familiar with the matter said.
Actis’ joins other potential buyers such as Kuwait’s Agility , which has teamed up with New York-based Centerbridge Partners for its bid, York Capital and Abu Dhabi Financial Group.
Abraaj received bids this week to manage the funds and is expected to close the deal with the successful bidder by the end of the year, one of the two sources said.
Actis, a leading emerging market investor, has bid to buy the bulk of the private equity funds’ business of stricken Dubai-based Abraaj, two sources familiar with the matter said.
Actis’ joins other potential buyers such as Kuwait’s Agility , which has teamed up with New York-based Centerbridge Partners for its bid, York Capital and Abu Dhabi Financial Group.
Abraaj received bids this week to manage the funds and is expected to close the deal with the successful bidder by the end of the year, one of the two sources said.
Mideast funds less positive on Saudi, Kuwait after Turkey shock: Poll | ZAWYA MENA Edition
Mideast funds less positive on Saudi, Kuwait after Turkey shock: Poll | ZAWYA MENA Edition:
Middle East fund managers have become less positive towards equities in Saudi Arabia and Kuwait after Turkey's currency crisis triggered volatility in the markets this month, a monthly Reuters poll showed on Thursday.
For most of this year, Saudi Arabia and Kuwait were favourites of the funds, because of expectations for Riyadh to join emerging market indexes next year and FTSE Russell's decision to upgrade Kuwait to secondary emerging market status.
But even though Turkey is likely to have little direct impact on Middle Eastern economies, the market volatility has made investors more cautious about buying Saudi and Kuwaiti stocks at rich valuations relative to the United Arab Emirates and other emerging markets.
Middle East fund managers have become less positive towards equities in Saudi Arabia and Kuwait after Turkey's currency crisis triggered volatility in the markets this month, a monthly Reuters poll showed on Thursday.
For most of this year, Saudi Arabia and Kuwait were favourites of the funds, because of expectations for Riyadh to join emerging market indexes next year and FTSE Russell's decision to upgrade Kuwait to secondary emerging market status.
But even though Turkey is likely to have little direct impact on Middle Eastern economies, the market volatility has made investors more cautious about buying Saudi and Kuwaiti stocks at rich valuations relative to the United Arab Emirates and other emerging markets.
Russia’s Lukoil to begin $3bn share buyback | Financial Times
Russia’s Lukoil to begin $3bn share buyback | Financial Times:
Russian oil company Lukoil on Thursday announced the start of its $3bn share buyback program, part of a slew of recent investor-friendly initiatives by the country’s energy groups.
Russia’s oil and gas majors have cashed in over the past year as oil prices have risen and the rouble has weakened, mainly due to geopolitical tensions with the west.
Energy companies have been the star performers on the Moscow stock market this year, with the market’s oil and gas index up 35 per cent so far in 2018. The divergent fortunes of oil prices and the rouble — which had previously moved roughly in tandem — means that a barrel of crude today sells for around Rbs5,300, versus Rbs3,000 a year ago.
Russian oil company Lukoil on Thursday announced the start of its $3bn share buyback program, part of a slew of recent investor-friendly initiatives by the country’s energy groups.
Russia’s oil and gas majors have cashed in over the past year as oil prices have risen and the rouble has weakened, mainly due to geopolitical tensions with the west.
Energy companies have been the star performers on the Moscow stock market this year, with the market’s oil and gas index up 35 per cent so far in 2018. The divergent fortunes of oil prices and the rouble — which had previously moved roughly in tandem — means that a barrel of crude today sells for around Rbs5,300, versus Rbs3,000 a year ago.
Fitch Expects Etihad Airways to Keep Losing Money Through 2022 - Bloomberg
Fitch Expects Etihad Airways to Keep Losing Money Through 2022 - Bloomberg:
Etihad Airways will continue losing money through 2022, Fitch Ratings forecast, citing the “high execution risk” in the state-owned carrier’s turnaround plan.
The credit ratings company affirmed the airline’s long-term rating at ‘A’ with a stable outlook, given the support provided by the government of Abu Dhabi, Etihad’s owner.
“We continue to rate Etihad three notches below its ultimate sole shareholder Abu Dhabi, despite the change in criteria,” the company said in a statement Wednesday.
Etihad Airways will continue losing money through 2022, Fitch Ratings forecast, citing the “high execution risk” in the state-owned carrier’s turnaround plan.
The credit ratings company affirmed the airline’s long-term rating at ‘A’ with a stable outlook, given the support provided by the government of Abu Dhabi, Etihad’s owner.
“We continue to rate Etihad three notches below its ultimate sole shareholder Abu Dhabi, despite the change in criteria,” the company said in a statement Wednesday.
Saudi Bulls Retreat as Aramco Letdown Adds to Shock Over Policy - Bloomberg
Saudi Bulls Retreat as Aramco Letdown Adds to Shock Over Policy - Bloomberg:
The Arab world’s biggest bourse is losing its appeal to foreigners just two months after it won inclusion in MSCI Inc.’s emerging-market index.
That’s because the initial euphoria surrounding Crown Prince Mohammed bin Salman’s efforts to overhaul the nation’s economy has given way to skepticism as the kingdom put on hold the initial public offering of oil giant Aramco. A dispute over Canada’s criticism of the jailing of Saudi rights activists has also heightened concerns over the prince’s increasingly assertive policy and the impact it would have on capital flows.
Overseas money managers turned net sellers of Saudi stocks in six of the past eight weeks after MSCI said it will include the country in its emerging-market equity indexes starting June 2019. Global factors, including the roll-back of crisis-era stimulus and a global trade skirmish, have also dented demand for riskier assets.
The Arab world’s biggest bourse is losing its appeal to foreigners just two months after it won inclusion in MSCI Inc.’s emerging-market index.
That’s because the initial euphoria surrounding Crown Prince Mohammed bin Salman’s efforts to overhaul the nation’s economy has given way to skepticism as the kingdom put on hold the initial public offering of oil giant Aramco. A dispute over Canada’s criticism of the jailing of Saudi rights activists has also heightened concerns over the prince’s increasingly assertive policy and the impact it would have on capital flows.
Overseas money managers turned net sellers of Saudi stocks in six of the past eight weeks after MSCI said it will include the country in its emerging-market equity indexes starting June 2019. Global factors, including the roll-back of crisis-era stimulus and a global trade skirmish, have also dented demand for riskier assets.
Oil rises on Iran sanctions, lower U.S. fuel inventories | Reuters
Oil rises on Iran sanctions, lower U.S. fuel inventories | Reuters:
Oil prices rose on Thursday, extending gains on growing evidence of serious disruptions to crude supply from Iran and Venezuela and after a fall in U.S. crude inventories.
Benchmark Brent crude oil LCOc1 was up 30 cents a barrel at $77.44 by 0745 GMT. U.S. light crude CLc1 was 30 cents higher at $69.81.
Brent has risen by almost 10 percent over the last two weeks on widespread perceptions that the global oil market is tightening and may run short in the next few months as U.S. sanctions restrict crude exports from Iran.
Oil prices rose on Thursday, extending gains on growing evidence of serious disruptions to crude supply from Iran and Venezuela and after a fall in U.S. crude inventories.
Benchmark Brent crude oil LCOc1 was up 30 cents a barrel at $77.44 by 0745 GMT. U.S. light crude CLc1 was 30 cents higher at $69.81.
Brent has risen by almost 10 percent over the last two weeks on widespread perceptions that the global oil market is tightening and may run short in the next few months as U.S. sanctions restrict crude exports from Iran.
MIDEAST STOCKS-Saudi market slips in early trade as Dubai, Abu Dhabi rise | Reuters
MIDEAST STOCKS-Saudi market slips in early trade as Dubai, Abu Dhabi rise | Reuters:
Saudi Arabia’s stock market slipped in early trade on Thursday as investors continued to book profits after gains at the start of the week, while Dubai’s bourse saw support from financials.
Saudi Arabia’s main index was down 0.5 percent, with National Commercial Bank down 0.9 percent, Al Rajhi Bank 0.6 percent lower, and Arab Bank dropping 1.0 percent.
The index closed lower on Wednesday, ending a three day winning streak.
Saudi Arabia’s stock market slipped in early trade on Thursday as investors continued to book profits after gains at the start of the week, while Dubai’s bourse saw support from financials.
Saudi Arabia’s main index was down 0.5 percent, with National Commercial Bank down 0.9 percent, Al Rajhi Bank 0.6 percent lower, and Arab Bank dropping 1.0 percent.
The index closed lower on Wednesday, ending a three day winning streak.
Wednesday, 29 August 2018
Oil pushes higher after latest US inventory draw | Financial Times
Oil pushes higher after latest US inventory draw | Financial Times:
Oil prices climbed to multi-week highs on Wednesday, after data pointed earlier on Wednesday to a larger-than-expected decline in US crude stockpiles last week.
West Texas Intermediate, the US standard, was up 1.7 per cent to $69.70 a barrel, approaching the $70 a barrel mark for the first time in a month. Brent, the international benchmark, was up 1.84 per cent to $77.33 a barrel, its highest in seven weeks.
The gains come after the US Energy Information Administration said that US crude inventories fell by 2.6m barrels in the week ended August 24, versus analysts’ expectations for a smaller 686,000-barrel decrease, according to Thomson Reuters.
Oil prices climbed to multi-week highs on Wednesday, after data pointed earlier on Wednesday to a larger-than-expected decline in US crude stockpiles last week.
West Texas Intermediate, the US standard, was up 1.7 per cent to $69.70 a barrel, approaching the $70 a barrel mark for the first time in a month. Brent, the international benchmark, was up 1.84 per cent to $77.33 a barrel, its highest in seven weeks.
The gains come after the US Energy Information Administration said that US crude inventories fell by 2.6m barrels in the week ended August 24, versus analysts’ expectations for a smaller 686,000-barrel decrease, according to Thomson Reuters.
Mideast oil to trade through Shanghai crude futures contract
Mideast oil to trade through Shanghai crude futures contract:
Five companies will deliver Middle East crude next month to buyers through the Shanghai International Energy Exchange’s (INE) oil futures, the first physical settlement of the contract that China hopes will compete with global benchmarks.
The companies, including state-owned Unipec and Zhenhua Oil, will deliver a combined 600,00 barrels of crude to buyers of the INE’s September crude futures contract, said five sources with knowledge of the matter.
The INE launched the contract in March with September as the first month of delivery to give participants time to accumulate supplies for the physical delivery and for the contract to develop.
Five companies will deliver Middle East crude next month to buyers through the Shanghai International Energy Exchange’s (INE) oil futures, the first physical settlement of the contract that China hopes will compete with global benchmarks.
The companies, including state-owned Unipec and Zhenhua Oil, will deliver a combined 600,00 barrels of crude to buyers of the INE’s September crude futures contract, said five sources with knowledge of the matter.
The INE launched the contract in March with September as the first month of delivery to give participants time to accumulate supplies for the physical delivery and for the contract to develop.
Qatar’s banking sector 'very stable' and on solid footing: Dr al-Shaibei
Qatar’s banking sector 'very stable' and on solid footing: Dr al-Shaibei:
Qatar’s banking sector is now very stable and on a solid footing thanks to QCB’s prudent policies, said prominent Qatari banker and CEO of Qatar International Islamic Bank Dr Abdulbasit Ahmad al-Shaibei.
“Whenever the dollar rates go up, the QCB will have to consider increasing their rates, because the riyal is pegged to the dollar. Qatar Central Bank is ensuring there is no big gap between dollar and riyal rates and is properly tracking the dollar rates,” Dr al-Shaibei said in an interview with Gulf Times.
Dr al-Shaibei said a careful look at the balance sheet of Qatari banks will show that the costs of the funds are going up because of the increasing dollar rates.
Qatar’s banking sector is now very stable and on a solid footing thanks to QCB’s prudent policies, said prominent Qatari banker and CEO of Qatar International Islamic Bank Dr Abdulbasit Ahmad al-Shaibei.
“Whenever the dollar rates go up, the QCB will have to consider increasing their rates, because the riyal is pegged to the dollar. Qatar Central Bank is ensuring there is no big gap between dollar and riyal rates and is properly tracking the dollar rates,” Dr al-Shaibei said in an interview with Gulf Times.
Dr al-Shaibei said a careful look at the balance sheet of Qatari banks will show that the costs of the funds are going up because of the increasing dollar rates.
Oil rises as U.S. stockpiles draw down, Iran exports fall | Reuters
Oil rises as U.S. stockpiles draw down, Iran exports fall | Reuters:
Oil prices rose about 1 percent on Wednesday, supported by a drawdown in U.S. crude and gasoline stockpiles and on news of falling Iranian crude shipments as U.S. sanctions deter buyers.
Brent crude oil LCOc1 was up 57 cents at $76.52 a barrel by 11:38 a.m. EDT (1538 GMT). U.S. crude CLc1 was 77 cents higher at $69.30 a barrel.
U.S. crude inventories USOILC=ECI fell 2.6 million barrels last week, the Energy Information Administration said, exceeding the 686,000-barrel draw forecast by analysts polled by Reuters.
Oil prices rose about 1 percent on Wednesday, supported by a drawdown in U.S. crude and gasoline stockpiles and on news of falling Iranian crude shipments as U.S. sanctions deter buyers.
Brent crude oil LCOc1 was up 57 cents at $76.52 a barrel by 11:38 a.m. EDT (1538 GMT). U.S. crude CLc1 was 77 cents higher at $69.30 a barrel.
U.S. crude inventories USOILC=ECI fell 2.6 million barrels last week, the Energy Information Administration said, exceeding the 686,000-barrel draw forecast by analysts polled by Reuters.
Saudi Aramco IPO collapse delivers a blow to the crown prince | Financial Times
Saudi Aramco IPO collapse delivers a blow to the crown prince | Financial Times:
Saudi Arabia’s decision to shelve plans to list state oil company Saudi Aramco is more of a shock than a surprise. Despite protestations from Riyadh that it is postponing rather than abandoning the initial public offering, it seems clear King Salman has overruled Mohammed bin Salman, his headstrong young heir.
The planned sale of 5 per cent of the Saudi oil company was billed as the biggest IPO ever. It was the linchpin of MbS’s ambitious Vision 2030 programme to turn Saudi Arabia from an oil-dependent rentier state into a private investment-driven economy of entrepreneurs and innovators. There can be no question that the collapse of the IPO plan is a blow to his prestige.
But that was partly self-inflicted. It was the crown prince who insisted that Saudi Aramco is worth $2tn, seen by many analysts as an outlandish valuation. Other hurdles were also high: the increased scrutiny and disclosure requirements that would come with a public listing; a rigorous audit of the oil and gas reserves that support the value of the company; even the risk of litigation in the US against Saudi Arabia for alleged complicity in terror attacks such as the 9/11 assault on New York and Washington. The MbS team powered ahead regardless.
Saudi Arabia’s decision to shelve plans to list state oil company Saudi Aramco is more of a shock than a surprise. Despite protestations from Riyadh that it is postponing rather than abandoning the initial public offering, it seems clear King Salman has overruled Mohammed bin Salman, his headstrong young heir.
The planned sale of 5 per cent of the Saudi oil company was billed as the biggest IPO ever. It was the linchpin of MbS’s ambitious Vision 2030 programme to turn Saudi Arabia from an oil-dependent rentier state into a private investment-driven economy of entrepreneurs and innovators. There can be no question that the collapse of the IPO plan is a blow to his prestige.
But that was partly self-inflicted. It was the crown prince who insisted that Saudi Aramco is worth $2tn, seen by many analysts as an outlandish valuation. Other hurdles were also high: the increased scrutiny and disclosure requirements that would come with a public listing; a rigorous audit of the oil and gas reserves that support the value of the company; even the risk of litigation in the US against Saudi Arabia for alleged complicity in terror attacks such as the 9/11 assault on New York and Washington. The MbS team powered ahead regardless.
MIDEAST STOCKS-Saudi market takes breather amid profit-taking, regional markets mostly up | Reuters
MIDEAST STOCKS-Saudi market takes breather amid profit-taking, regional markets mostly up | Reuters:
Saudi shares slipped on Wednesday as investors booked profits after three days of gains, while regional markets ended mostly higher on a rise in oil prices.
With company earnings out of the way and the end of an extended holiday last week, equity investors cut their exposure to risky assets.
“The market decline is just profit taking as there is no material news to impact it especially after the second quarter earnings season a week before Eid break,” said Iyad Ghulam, senior equity research analyst at Riyadh’s NCB Capital.
Saudi shares slipped on Wednesday as investors booked profits after three days of gains, while regional markets ended mostly higher on a rise in oil prices.
With company earnings out of the way and the end of an extended holiday last week, equity investors cut their exposure to risky assets.
“The market decline is just profit taking as there is no material news to impact it especially after the second quarter earnings season a week before Eid break,” said Iyad Ghulam, senior equity research analyst at Riyadh’s NCB Capital.
Oil Reflects Iran Supply Risk as Price Premium Takes Hold - Bloomberg
Oil Reflects Iran Supply Risk as Price Premium Takes Hold - Bloomberg:
Brent crude is signaling that U.S. sanctions against Iran’s oil exports are starting to be felt in global markets.
Futures for settlement in November -- when the American measures will go into effect -- are trading higher than contracts for later months. That market structure, known as backwardation, is reflecting fears of a supply crunch. Meanwhile, Brent’s premium to New York prices has risen as U.S. crude is weighed down by pipeline bottlenecks and speculation that President Donald Trump will pursue efforts to lower fuel costs.
Brent crude is signaling that U.S. sanctions against Iran’s oil exports are starting to be felt in global markets.
Futures for settlement in November -- when the American measures will go into effect -- are trading higher than contracts for later months. That market structure, known as backwardation, is reflecting fears of a supply crunch. Meanwhile, Brent’s premium to New York prices has risen as U.S. crude is weighed down by pipeline bottlenecks and speculation that President Donald Trump will pursue efforts to lower fuel costs.
Commentary: Bullish hedge fund managers continue to pull oil positions | Reuters
Commentary: Bullish hedge fund managers continue to pull oil positions | Reuters:
Hedge fund managers continued to liquidate their bullish positions in crude and fuels, amid negative sentiment towards petroleum, before prices rallied sharply in the second half of last week.
Hedge funds and other money managers cut their combined net long position in the six most important petroleum futures and options contracts by another 49 million barrels in the week to Aug. 20.
Fund managers have reduced their net long position in 13 of the last 18 weeks, by a total of 508 million barrels (36 percent), according to an analysis of records published by regulators and exchanges.
Hedge fund managers continued to liquidate their bullish positions in crude and fuels, amid negative sentiment towards petroleum, before prices rallied sharply in the second half of last week.
Hedge funds and other money managers cut their combined net long position in the six most important petroleum futures and options contracts by another 49 million barrels in the week to Aug. 20.
Fund managers have reduced their net long position in 13 of the last 18 weeks, by a total of 508 million barrels (36 percent), according to an analysis of records published by regulators and exchanges.
Qatari Islamic banks grow despite regional rift -IFSB data | Reuters
Qatari Islamic banks grow despite regional rift -IFSB data | Reuters:
Assets and revenues at Qatar’s Islamic banks have grown over the past year but an increase in problem loans and a drop in foreign currency lending underscore the impact of a diplomatic rift in the region.
Qatar has been under a diplomatic and commercial boycott since June last year, when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with the world’s top exporter of liquefied natural gas.
The tiny state’s four full-fledged Islamic banks have not been immune, although their focus on Qatar’s domestic market may have helped them to some extent, according to data from the Islamic Financial Services Board.
Assets and revenues at Qatar’s Islamic banks have grown over the past year but an increase in problem loans and a drop in foreign currency lending underscore the impact of a diplomatic rift in the region.
Qatar has been under a diplomatic and commercial boycott since June last year, when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with the world’s top exporter of liquefied natural gas.
The tiny state’s four full-fledged Islamic banks have not been immune, although their focus on Qatar’s domestic market may have helped them to some extent, according to data from the Islamic Financial Services Board.
MIDEAST STOCKS-Qatar slips on profit-taking in banks, Saudi snaps winning streak | Reuters
MIDEAST STOCKS-Qatar slips on profit-taking in banks, Saudi snaps winning streak | Reuters:
Qatar’s stock market fell on Wednesday as investors took profits in banks, while the Saudi market eased in early trading after three days of gains.
The Qatar index was down 0.5 percent, with Qatar National Bank falling 2.3 percent, Masraf Al Rayan declining 1.1 percent and Qatar Islamic Bank dropping nearly 1 percent.
QNB had been a major gainer in the previous two sessions after investors sought bargains in the aftermath of its recent sell-off on concerns about its exposure to Turkey.
Qatar’s stock market fell on Wednesday as investors took profits in banks, while the Saudi market eased in early trading after three days of gains.
The Qatar index was down 0.5 percent, with Qatar National Bank falling 2.3 percent, Masraf Al Rayan declining 1.1 percent and Qatar Islamic Bank dropping nearly 1 percent.
QNB had been a major gainer in the previous two sessions after investors sought bargains in the aftermath of its recent sell-off on concerns about its exposure to Turkey.
Tuesday, 28 August 2018
Aramco-Sabic deal to spur consolidation in regional petchems - The National
Aramco-Sabic deal to spur consolidation in regional petchems - The National:
The proposed stake sale of Sabic, the region’s biggest chemicals manufacturer, to the world's top oil producing company Saudi Aramco is expected to set into motion more consolidation in the regional industry, analysts said.
"If Aramco acquires a substantial stake in Sabic, a new consolidation will emerge in the Saudi petrochemicals sector," said Ehsan Khoman, head of Mena research and strategy at Japan's MUFG Bank. "In-turn, there will be a requirement to revisit the existing Aramco and Sabic joint-ventures currently prevailing, as these will be impacted by reassessments or ongoing amendments.”
Aramco in July said it was in talks to acquire a stake in Sabic as the state-owned oil company looks to become a more integrated energy player. Aramco, the primary feedstock supplier for Sabic, has already partnered with it to develop a $20 billion venture to process oil into chemicals on the kingdom's Red Sea coast.
The proposed stake sale of Sabic, the region’s biggest chemicals manufacturer, to the world's top oil producing company Saudi Aramco is expected to set into motion more consolidation in the regional industry, analysts said.
"If Aramco acquires a substantial stake in Sabic, a new consolidation will emerge in the Saudi petrochemicals sector," said Ehsan Khoman, head of Mena research and strategy at Japan's MUFG Bank. "In-turn, there will be a requirement to revisit the existing Aramco and Sabic joint-ventures currently prevailing, as these will be impacted by reassessments or ongoing amendments.”
Aramco in July said it was in talks to acquire a stake in Sabic as the state-owned oil company looks to become a more integrated energy player. Aramco, the primary feedstock supplier for Sabic, has already partnered with it to develop a $20 billion venture to process oil into chemicals on the kingdom's Red Sea coast.
Abraaj founder settles $300m bounced check case
Abraaj founder settles $300m bounced check case:
Arif Naqvi, the founder and chief executive of the embattled Abraaj Group, has avoided a three-year prison sentence in the UAE with a last-minute deal struck with Hamid Jafar, the Sharjah based businessman, over $300 million of checks written by Naqvi and a lieutenant that were dishonored on presentation.
Lawyers for Naqvi and Jafar issued statements yesterday that halted proceedings over the bounced checks — a criminal offense in the UAE — after talks in London agreed the transfer of certain assets from Naqvi to Jafar as part-payment of the debts, and an agreement to potentially pay more on the disposal of Abraaj assets.
Habib Al-Mulla, Naqvi’s lawyer and executive chairman of the law firm Baker & McKenzie Habib Al Mulla, said: “I am pleased to inform you that the parties have reached a full settlement on all disputes with Jafar. Under UAE criminal law, charges based on bounced checks get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced checks.
Arif Naqvi, the founder and chief executive of the embattled Abraaj Group, has avoided a three-year prison sentence in the UAE with a last-minute deal struck with Hamid Jafar, the Sharjah based businessman, over $300 million of checks written by Naqvi and a lieutenant that were dishonored on presentation.
Lawyers for Naqvi and Jafar issued statements yesterday that halted proceedings over the bounced checks — a criminal offense in the UAE — after talks in London agreed the transfer of certain assets from Naqvi to Jafar as part-payment of the debts, and an agreement to potentially pay more on the disposal of Abraaj assets.
Habib Al-Mulla, Naqvi’s lawyer and executive chairman of the law firm Baker & McKenzie Habib Al Mulla, said: “I am pleased to inform you that the parties have reached a full settlement on all disputes with Jafar. Under UAE criminal law, charges based on bounced checks get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced checks.
Saudi Arabia’s inflation quickens on rising food costs
Saudi Arabia’s inflation quickens on rising food costs:
The rising cost of food and drink in Saudi Arabia helped push up the Kingdom’s inflation rate last month, though it still remained below its recent peak of 3 percent in January.
Consumer prices rose by 2.2 percent year-on-year in July compared to 2.1 percent in June, an increase driven by increasing food prices, particularly vegetables.
“The breakdown of the data showed that the slight rise in headline inflation last month was driven by a jump in food inflation,” read a note from Jason Tuvey, senior emerging markets economist at Capital Economics.
The rising cost of food and drink in Saudi Arabia helped push up the Kingdom’s inflation rate last month, though it still remained below its recent peak of 3 percent in January.
Consumer prices rose by 2.2 percent year-on-year in July compared to 2.1 percent in June, an increase driven by increasing food prices, particularly vegetables.
“The breakdown of the data showed that the slight rise in headline inflation last month was driven by a jump in food inflation,” read a note from Jason Tuvey, senior emerging markets economist at Capital Economics.
Qatar’s trade surplus hits QR16.9bn in July - The Peninsula Qatar
Qatar’s trade surplus hits QR16.9bn in July - The Peninsula Qatar:
Qatar’s trade surplus, which is the difference between total exports and imports, reached a surplus of QR16.9bn, showing an increase of QR5bn or 42.7 percent compared to July 2017. The huge rise in surplus shows that Qatar’s economy remains on firm footing.
According to preliminary figures of the value of exports of domestic goods, re-exports, and imports released yesterday by the Ministry of Development Planning and Statistics the trade balance decreased by nearly QR1.1bn or 6.1 percent compared to June 2018.
In July 2018, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR26.6bn, registering an increase of 45.3 percent compared to July last year, while it fell by 1.1 percent compared to June this year.
Qatar’s trade surplus, which is the difference between total exports and imports, reached a surplus of QR16.9bn, showing an increase of QR5bn or 42.7 percent compared to July 2017. The huge rise in surplus shows that Qatar’s economy remains on firm footing.
According to preliminary figures of the value of exports of domestic goods, re-exports, and imports released yesterday by the Ministry of Development Planning and Statistics the trade balance decreased by nearly QR1.1bn or 6.1 percent compared to June 2018.
In July 2018, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR26.6bn, registering an increase of 45.3 percent compared to July last year, while it fell by 1.1 percent compared to June this year.
Credit Suisse to Buy Back $6 Billion in Qatar, Saudi Debt - Bloomberg
Credit Suisse to Buy Back $6 Billion in Qatar, Saudi Debt - Bloomberg:
Credit Suisse Group AG plans to buy back about 5.9 billion francs ($6 billion) of debt issued after the financial crisis to the Qatar Investment Authority and Saudi Arabia’s Olayan family to cut funding costs.
The bank will redeem the contingent convertible bonds -- which automatically become equity when reserves fall below pre-set levels -- on Oct. 23, the first opportunity to do so, according to a statement from the bank on Tuesday. Qatar holds about $4.2 billion of the debt and Olayan the remainder, with the two top shareholders entitled to interest of as much as 9.5 percent on the securities.
The withdrawal of the debt is another sign of Credit Suisse’s emergence from a three-year restructuring that’s cut its reliance on investment banking in favor of a pivot to wealth management, tapping shareholders for billions of francs in funding along the way. Chief Executive Officer Tidjane Thiam is refocusing the bank as new regulations after the financial crisis -- including higher capital requirements -- forced it to abandon the investment bank-led strategy.
Credit Suisse Group AG plans to buy back about 5.9 billion francs ($6 billion) of debt issued after the financial crisis to the Qatar Investment Authority and Saudi Arabia’s Olayan family to cut funding costs.
The bank will redeem the contingent convertible bonds -- which automatically become equity when reserves fall below pre-set levels -- on Oct. 23, the first opportunity to do so, according to a statement from the bank on Tuesday. Qatar holds about $4.2 billion of the debt and Olayan the remainder, with the two top shareholders entitled to interest of as much as 9.5 percent on the securities.
The withdrawal of the debt is another sign of Credit Suisse’s emergence from a three-year restructuring that’s cut its reliance on investment banking in favor of a pivot to wealth management, tapping shareholders for billions of francs in funding along the way. Chief Executive Officer Tidjane Thiam is refocusing the bank as new regulations after the financial crisis -- including higher capital requirements -- forced it to abandon the investment bank-led strategy.
Oil dips on profit-taking, trade deal limits decline | Reuters
Oil dips on profit-taking, trade deal limits decline | Reuters:
Oil prices fell on Tuesday as some investors took profits on recent strong gains, but losses were limited the day after a U.S.-Mexico trade agreement eased worries about tensions between the two countries.
Brent crude LCOc1 futures fell 26 cents to settle at $75.95 a barrel. The global benchmark touched $76.97 early in the session, the highest since July 11.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 34 cents to settle at $68.53 a barrel.
Oil prices fell on Tuesday as some investors took profits on recent strong gains, but losses were limited the day after a U.S.-Mexico trade agreement eased worries about tensions between the two countries.
Brent crude LCOc1 futures fell 26 cents to settle at $75.95 a barrel. The global benchmark touched $76.97 early in the session, the highest since July 11.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 34 cents to settle at $68.53 a barrel.
UPDATE 1-Abraaj founder's bounced cheque case settled after court ruling | Reuters
UPDATE 1-Abraaj founder's bounced cheque case settled after court ruling | Reuters:
A dispute over a $218 million bounced cheque signed by the founder of stricken private equity firm Abraaj and another executive has been settled, ending criminal proceedings against the two men, lawyers from both sides said on Tuesday.
The statements by the two lawyers came after a United Arab Emirates (UAE) court sentenced Abraaj founder Arif Naqvi and the other executive to three years in prison.
“Under UAE Criminal Law, charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases,” Naqvi’s lawyer Habib al-Mulla told Reuters.
A dispute over a $218 million bounced cheque signed by the founder of stricken private equity firm Abraaj and another executive has been settled, ending criminal proceedings against the two men, lawyers from both sides said on Tuesday.
The statements by the two lawyers came after a United Arab Emirates (UAE) court sentenced Abraaj founder Arif Naqvi and the other executive to three years in prison.
“Under UAE Criminal Law, charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases,” Naqvi’s lawyer Habib al-Mulla told Reuters.
MIDEAST STOCKS-Saudi index rise for third straight day, banks lift Qatar | Reuters
MIDEAST STOCKS-Saudi index rise for third straight day, banks lift Qatar | Reuters:
Saudi Arabia’s stock market rose on Tuesday for a third consecutive day, fuelled by gains in energy and telecommunications shares, while Qatari stocks were lifted by financials.
Saudi Arabia’s main index added 0.5 percent, with Saudi Telecom rising 1.8 percent and oil refiner Petro Rabigh up 1.4 percent.
Saudi market, which has added about 11 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Arabia’s stock market rose on Tuesday for a third consecutive day, fuelled by gains in energy and telecommunications shares, while Qatari stocks were lifted by financials.
Saudi Arabia’s main index added 0.5 percent, with Saudi Telecom rising 1.8 percent and oil refiner Petro Rabigh up 1.4 percent.
Saudi market, which has added about 11 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Abraaj founder reaches out-of-court settlement over bounced cheque case - The National
Abraaj founder reaches out-of-court settlement over bounced cheque case - The National:
Arif Naqvi, the founder of embattled private equity firm Abraaj Goup, has reached an out-of-court settlement with a founding shareholder, Hamid Jafar, in regards to a case over a Dh798 million bounced cheque, lawyers said on Tuesday.
"The parties have reached a full settlement on all disputes with Mr Jafar," Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla, which is acting for Mr Naqvi. "Under UAE Criminal Law charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques."
Mr Al Mulla told The National an arrest warrant for Mr Naqvi has been lifted.
Arif Naqvi, the founder of embattled private equity firm Abraaj Goup, has reached an out-of-court settlement with a founding shareholder, Hamid Jafar, in regards to a case over a Dh798 million bounced cheque, lawyers said on Tuesday.
"The parties have reached a full settlement on all disputes with Mr Jafar," Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla, which is acting for Mr Naqvi. "Under UAE Criminal Law charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques."
Mr Al Mulla told The National an arrest warrant for Mr Naqvi has been lifted.
Second Abraaj cheque case nearing settlement | GulfNews.com
Second Abraaj cheque case nearing settlement | GulfNews.com:
A second cheque bounce case against Arif Naqvi, founder of the beleaguered private equity firm is settled out of court today, according to Dr Habib Al Mulla, executive chairman at Baker McKenzie Habib Al Mulla, who represents Naqvi.
The case relates to a cheque worth $217 million (Dh798 million) issued by Naqvi to Sharjah-based Crescent Group founder Hamid Jafar.
“I am pleased to inform you that the parties have reached a full settlement on all disputes with Mr. Jafar. Under UAE Criminal Law charges based on bounced cheques gets extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques,” Dr Al Mulla said in a statement to Gulf News.
A second cheque bounce case against Arif Naqvi, founder of the beleaguered private equity firm is settled out of court today, according to Dr Habib Al Mulla, executive chairman at Baker McKenzie Habib Al Mulla, who represents Naqvi.
The case relates to a cheque worth $217 million (Dh798 million) issued by Naqvi to Sharjah-based Crescent Group founder Hamid Jafar.
“I am pleased to inform you that the parties have reached a full settlement on all disputes with Mr. Jafar. Under UAE Criminal Law charges based on bounced cheques gets extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques,” Dr Al Mulla said in a statement to Gulf News.
Qatar's Barwa Bank, International Bank of Qatar agree to merge | Reuters
Qatar's Barwa Bank, International Bank of Qatar agree to merge | Reuters:
Qatari lenders Barwa Bank and the International Bank of Qatar (IQB) have reached a final merger agreement, creating a combined group with total assets of 80 billion riyals ($22 billion), the banks said on Tuesday.
The unlisted banks will work to complete the necessary steps for the merger, including obtaining regulatory approval, before the end of the year, according to the statement carried on Barwa’s website.
The deal creates a sharia-compliant financial institution, with a shareholder equity base of over 12 billion riyals ($3.30 billion), the statement said.
Qatari lenders Barwa Bank and the International Bank of Qatar (IQB) have reached a final merger agreement, creating a combined group with total assets of 80 billion riyals ($22 billion), the banks said on Tuesday.
The unlisted banks will work to complete the necessary steps for the merger, including obtaining regulatory approval, before the end of the year, according to the statement carried on Barwa’s website.
The deal creates a sharia-compliant financial institution, with a shareholder equity base of over 12 billion riyals ($3.30 billion), the statement said.
UAE court sentences Abraaj CEO in bounced cheque case, lawyer says settlement reached | Reuters
UAE court sentences Abraaj CEO in bounced cheque case, lawyer says settlement reached | Reuters:
A United Arab Emirates court sentenced the founder of private equity firm Abraaj, Arif Naqvi, and another executive to three years in prison for issuing a cheque without sufficient funds, according to court documents and two court clerks on Tuesday.
But Naqvi’s lawyer Habib Al Mulla said in an email that the parties had reached a settlement.
The criminal case in the emirate of Sharjah relates to a cheque for 798.9 million dirhams ($218 million), signed by Naqvi and Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in Abraaj.
A United Arab Emirates court sentenced the founder of private equity firm Abraaj, Arif Naqvi, and another executive to three years in prison for issuing a cheque without sufficient funds, according to court documents and two court clerks on Tuesday.
But Naqvi’s lawyer Habib Al Mulla said in an email that the parties had reached a settlement.
The criminal case in the emirate of Sharjah relates to a cheque for 798.9 million dirhams ($218 million), signed by Naqvi and Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in Abraaj.
Saudi Prince Salman Should Be More Practical About Reform - Bloomberg
Saudi Prince Salman Should Be More Practical About Reform - Bloomberg:
Two years ago, Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, began what he hoped would be a thoroughgoing reform of the country’s economy. Changes were certainly needed: The economy was too dependent on oil revenues, which were distributed inefficiently through patronage networks. It was clear that the country needed a vibrant, competitive private sector and to develop non-oil industries, the better to prepare for a future when it could no longer depend on the wealth lying beneath its sands.
The prince also recognized the need for social reforms. The conservative clergy had too much say in public life, whereas women had too little. He promised to bring to heel the more obscurantist preachers, and to allow women the right to drive.
But MBS, as the prince is known, got off on the wrong foot by deciding to make a public sale of shares in Saudi Arabian Oil Co., the world’s largest oil company. That plan was overly ambitious: the company was extravagantly valued at $2 trillion, and the enormous initial public offering was to have been completed by this year. Now that deal has been indefinitely postponed, giving the crown prince a chance to recalibrate his strategy for reform by pursuing more practical measures.
Two years ago, Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, began what he hoped would be a thoroughgoing reform of the country’s economy. Changes were certainly needed: The economy was too dependent on oil revenues, which were distributed inefficiently through patronage networks. It was clear that the country needed a vibrant, competitive private sector and to develop non-oil industries, the better to prepare for a future when it could no longer depend on the wealth lying beneath its sands.
The prince also recognized the need for social reforms. The conservative clergy had too much say in public life, whereas women had too little. He promised to bring to heel the more obscurantist preachers, and to allow women the right to drive.
But MBS, as the prince is known, got off on the wrong foot by deciding to make a public sale of shares in Saudi Arabian Oil Co., the world’s largest oil company. That plan was overly ambitious: the company was extravagantly valued at $2 trillion, and the enormous initial public offering was to have been completed by this year. Now that deal has been indefinitely postponed, giving the crown prince a chance to recalibrate his strategy for reform by pursuing more practical measures.
Aramco's IPO Delay Brings Silver Lining for Saudi Stocks - Bloomberg
Aramco's IPO Delay Brings Silver Lining for Saudi Stocks - Bloomberg:
There’s a silver lining for Riyadh-traded stocks in the delay to Saudi Arabian Oil Co.’s massive initial public offering.
While putting the oil giant’s market debut on hold has reduced Saudi Arabia’s likely profile on emerging-market equity indexes when the kingdom joins them next year, the decision has also removed a threat to investments in other Saudi stocks from what was set to be the world’s largest IPO.
Listing Aramco would be “very positive long term, but at the time of the IPO, our biggest concern would be a drain of liquidity, because you would see a lot of investors selling off their shares in order to fund their applications for the IPO,” Fahd Iqbal, head of Middle East research at Credit Suisse Group AG, said in an interview with Bloomberg Television. “With the removal of that IPO for the time being, it removes a little bit of that overhang.”
There’s a silver lining for Riyadh-traded stocks in the delay to Saudi Arabian Oil Co.’s massive initial public offering.
While putting the oil giant’s market debut on hold has reduced Saudi Arabia’s likely profile on emerging-market equity indexes when the kingdom joins them next year, the decision has also removed a threat to investments in other Saudi stocks from what was set to be the world’s largest IPO.
Listing Aramco would be “very positive long term, but at the time of the IPO, our biggest concern would be a drain of liquidity, because you would see a lot of investors selling off their shares in order to fund their applications for the IPO,” Fahd Iqbal, head of Middle East research at Credit Suisse Group AG, said in an interview with Bloomberg Television. “With the removal of that IPO for the time being, it removes a little bit of that overhang.”
MIDEAST STOCKS-Saudi posts third-day of gains, Dubai weak on Emirates NBD | Reuters
MIDEAST STOCKS-Saudi posts third-day of gains, Dubai weak on Emirates NBD | Reuters:
The Saudi index edged up 0.13 percent on Tuesday morning trade, staying in positive territory for the third day running, while Dubai stocks fell, driven by Emirates NBD and Emaar Properties
The Saudi market, which has added 10.94 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Telecom rose 0.6 percnet and Samba Financial climbed 0.5 percent.
The Saudi index edged up 0.13 percent on Tuesday morning trade, staying in positive territory for the third day running, while Dubai stocks fell, driven by Emirates NBD and Emaar Properties
The Saudi market, which has added 10.94 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Telecom rose 0.6 percnet and Samba Financial climbed 0.5 percent.
Monday, 27 August 2018
Iranian anger at elite corruption grows as sanctions bite | Financial Times
Iranian anger at elite corruption grows as sanctions bite | Financial Times:
Iran’s currency crisis has left ordinary citizens enduring soaring living costs, but prosecutors allege that corrupt business people have turned it into a moneymaking opportunity.
In one case the name of a dead person was used to import 10,500 mobile phones using foreign currency issued at Iran’s favourable official rate. In another an unskilled worker thought to be someone else’s pawn managed to buy 38,000 gold coins from the central bank at below-market rates.
Both examples are likely to be aired by Tehran’s state prosecutors when dozens of businessmen go on trial for “economic disruption”. The first cases began on Sunday when three mobile phone importers appeared in court. The hearings are the first in about two decades to be given high-profile broadcast slots on state television. Their prominence reflects the regime’s desire to show it is tackling graft as public anger grows over what many Iranians believe is endemic corruption among their leaders and the business elite.
Iran’s currency crisis has left ordinary citizens enduring soaring living costs, but prosecutors allege that corrupt business people have turned it into a moneymaking opportunity.
In one case the name of a dead person was used to import 10,500 mobile phones using foreign currency issued at Iran’s favourable official rate. In another an unskilled worker thought to be someone else’s pawn managed to buy 38,000 gold coins from the central bank at below-market rates.
Both examples are likely to be aired by Tehran’s state prosecutors when dozens of businessmen go on trial for “economic disruption”. The first cases began on Sunday when three mobile phone importers appeared in court. The hearings are the first in about two decades to be given high-profile broadcast slots on state television. Their prominence reflects the regime’s desire to show it is tackling graft as public anger grows over what many Iranians believe is endemic corruption among their leaders and the business elite.
Exclusive: Dubai Aerospace Enterprise to double fleet by 2030, CEO says - The National
Exclusive: Dubai Aerospace Enterprise to double fleet by 2030, CEO says - The National:
Dubai Aerospace Enterprise, the Middle East’s biggest aircraft lessor, plans to double its fleet over the coming decade from 375 planes, as it expands after the acquisition of Ireland’s Awas last August, its chief executive said.
Dubai government-owned DAE is in talks with plane makers Boeing and Airbus for a potential multibillion dollar order of around 400 narrow-body jets, said Firaz Tarapore.
“If you look at where we are today size-wise and in terms of industry evolution – the technology changes going through the fleets – we have to sell about 300 aircraft and buy about 500 new aircraft over the next eight to 10 years,” he said.
Dubai Aerospace Enterprise, the Middle East’s biggest aircraft lessor, plans to double its fleet over the coming decade from 375 planes, as it expands after the acquisition of Ireland’s Awas last August, its chief executive said.
Dubai government-owned DAE is in talks with plane makers Boeing and Airbus for a potential multibillion dollar order of around 400 narrow-body jets, said Firaz Tarapore.
“If you look at where we are today size-wise and in terms of industry evolution – the technology changes going through the fleets – we have to sell about 300 aircraft and buy about 500 new aircraft over the next eight to 10 years,” he said.
Abraaj Fund Investors Claim They Are Owed at Least $300 Million - Bloomberg
Abraaj Fund Investors Claim They Are Owed at Least $300 Million - Bloomberg:
Investors in a $1.6 billion-Abraaj Group fund said they are owed at least $300 million by the floundering Middle Eastern private equity firm, according to a letter seen by Bloomberg News. They also ask to remove the company as manager.
The estimate of what is owed to Private Equity Fund IV by Abraaj is nearly triple the $94.6 million found after a review by Abraaj’s accounting firm Deloitte LLP in June. The investors are also seeking to stop paying management fees to Abraaj, citing breach of duties to the fund, according to the letter dated Aug. 13.
The investors’ council has said it would take legal action if it is unable to reach an acceptable agreement with court-appointed liquidators Deloitte and PricewaterhouseCoopers LLP. It said since Deloitte and PwC were appointed on June 18, they have made "insufficient progress” to stem losses tied to “mismanagement and apparent fraudulent activity” by Abraaj and the general partner.
Investors in a $1.6 billion-Abraaj Group fund said they are owed at least $300 million by the floundering Middle Eastern private equity firm, according to a letter seen by Bloomberg News. They also ask to remove the company as manager.
The estimate of what is owed to Private Equity Fund IV by Abraaj is nearly triple the $94.6 million found after a review by Abraaj’s accounting firm Deloitte LLP in June. The investors are also seeking to stop paying management fees to Abraaj, citing breach of duties to the fund, according to the letter dated Aug. 13.
The investors’ council has said it would take legal action if it is unable to reach an acceptable agreement with court-appointed liquidators Deloitte and PricewaterhouseCoopers LLP. It said since Deloitte and PwC were appointed on June 18, they have made "insufficient progress” to stem losses tied to “mismanagement and apparent fraudulent activity” by Abraaj and the general partner.
Qatar sovereign assets totalling more than 100% of GDP to remain 'solid' until 2021: S&P
Qatar sovereign assets totalling more than 100% of GDP to remain 'solid' until 2021: S&P:
Qatar’s sovereign assets totalling more than 100% of GDP are expected to remain “solid” until 2021, premier rating agency S&P Global said Monday.
Qatar is among the seven sovereigns whose assets exceed 100% of GDP and rated by S&P. The others are Kuwait, Norway, Abu Dhabi, Singapore, Jersey and Guernsey.
Combined, the seven sovereigns have accumulated $3tn in assets (200% of GDP on average) to date, it said.
Qatar’s sovereign assets totalling more than 100% of GDP are expected to remain “solid” until 2021, premier rating agency S&P Global said Monday.
Qatar is among the seven sovereigns whose assets exceed 100% of GDP and rated by S&P. The others are Kuwait, Norway, Abu Dhabi, Singapore, Jersey and Guernsey.
Combined, the seven sovereigns have accumulated $3tn in assets (200% of GDP on average) to date, it said.
Crude Edges Higher Amid Low-Volume Trading and Dollar's Decline - Bloomberg
Crude Edges Higher Amid Low-Volume Trading and Dollar's Decline - Bloomberg:
Crude closed at the highest in almost three weeks, largely influenced by moves in the U.S. currency.
Futures settled 0.2 percent higher in New York on Monday. Trading in benchmark American oil futures was almost 60 percent below normal, in part because of a U.K. holiday. Meanwhile, the fading greenback breathed life into commodities priced in dollars.
“London’s closed, you have an end-of-summer situation where liquidity is just really not there,” said Bob Yawger, director of futures division at Mizuho Securities USA LLC.
Crude closed at the highest in almost three weeks, largely influenced by moves in the U.S. currency.
Futures settled 0.2 percent higher in New York on Monday. Trading in benchmark American oil futures was almost 60 percent below normal, in part because of a U.K. holiday. Meanwhile, the fading greenback breathed life into commodities priced in dollars.
“London’s closed, you have an end-of-summer situation where liquidity is just really not there,” said Bob Yawger, director of futures division at Mizuho Securities USA LLC.
Natural Gas Market Should Be Panicking, But Whatever - Bloomberg
Natural Gas Market Should Be Panicking, But Whatever - Bloomberg:
With Labor Day looming, it’s obviously time to start thinking about winter. Obvious, that is, if you follow that battered, crushed, flayed corner of the energy market called U.S. natural gas.
America is awash in the stuff. Production will jump 10 percent this year, according to the Department of Energy, hitting a new record — just ahead of probably hitting another one in 2019. Export terminals can’t be built fast enough. This isn’t helpful for the dogged, if shrunken, cohort of gas bulls still out there.
What is helpful, though, is that, for all the gas coming out of the ground, there’s a surprising shortage of it underneath — in storage.
With Labor Day looming, it’s obviously time to start thinking about winter. Obvious, that is, if you follow that battered, crushed, flayed corner of the energy market called U.S. natural gas.
America is awash in the stuff. Production will jump 10 percent this year, according to the Department of Energy, hitting a new record — just ahead of probably hitting another one in 2019. Export terminals can’t be built fast enough. This isn’t helpful for the dogged, if shrunken, cohort of gas bulls still out there.
What is helpful, though, is that, for all the gas coming out of the ground, there’s a surprising shortage of it underneath — in storage.
Saudi Arabia Is Said to Grant Aramco 40-Year Oil Concession - Bloomberg
Saudi Arabia Is Said to Grant Aramco 40-Year Oil Concession - Bloomberg:
Saudi Arabia has granted its state-owned oil company a 40-year concession to exploit the kingdom’s hydrocarbon reserves as part of Aramco’s preparation for a potential initial public offering, a person familiar with the matter said.
The pact replaces norms dating in some cases from 1933, when the kingdom first agreed to let companies drill for oil there, the person said, asking not to be named discussing internal matters. Saudi Aramco declined to comment.
The legal change may mean little initially since the IPO’s been put on hold while Aramco closes a deal to buy a majority stake in a local petrochemical company worth as much as $70 billion. But Khalid al-Falih, the Saudi oil minister, said last week that the kingdom remained “committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum.”
Saudi Arabia has granted its state-owned oil company a 40-year concession to exploit the kingdom’s hydrocarbon reserves as part of Aramco’s preparation for a potential initial public offering, a person familiar with the matter said.
The pact replaces norms dating in some cases from 1933, when the kingdom first agreed to let companies drill for oil there, the person said, asking not to be named discussing internal matters. Saudi Aramco declined to comment.
The legal change may mean little initially since the IPO’s been put on hold while Aramco closes a deal to buy a majority stake in a local petrochemical company worth as much as $70 billion. But Khalid al-Falih, the Saudi oil minister, said last week that the kingdom remained “committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum.”
Saudi Arabia issues draft on issuance of global depositary receipts | Reuters
Saudi Arabia issues draft on issuance of global depositary receipts | Reuters:
Saudi Arabia’s capital markets regulator has issued draft rules for local companies to issue depositary receipts abroad, giving them a new channel to attract foreign equity investment.
The draft sets out the requirements for issuing global depositary receipts, which bundle shares of local companies for trade on foreign exchanges. The draft is open to public consultation for 30 days, the Capital Market Authority said on Monday.
The move follows a string of market reforms in Saudi Arabia since 2015, when the Riyadh exchange opened itself to direct investment by foreign institutions and began easing restrictions on foreign ownership of companies.
Saudi Arabia’s capital markets regulator has issued draft rules for local companies to issue depositary receipts abroad, giving them a new channel to attract foreign equity investment.
The draft sets out the requirements for issuing global depositary receipts, which bundle shares of local companies for trade on foreign exchanges. The draft is open to public consultation for 30 days, the Capital Market Authority said on Monday.
The move follows a string of market reforms in Saudi Arabia since 2015, when the Riyadh exchange opened itself to direct investment by foreign institutions and began easing restrictions on foreign ownership of companies.
Exclusive: Saudi king tipped the scale against Aramco IPO plans | Reuters
Exclusive: Saudi king tipped the scale against Aramco IPO plans | Reuters:
The king spoke, and a $2 trillion dream went up in smoke.
For the past two years, Saudi Arabia has prepared to place up to 5 percent of its national oil company on the stock market. Officials talked up the Saudi Aramco initial public offering (IPO) with international exchanges, global banks and U.S. President Donald Trump.
The planned listing was to be the cornerstone of the kingdom’s promised economic overhaul and, at a targeted $100 billion, the biggest IPO ever. It was the brainchild of 32-year-old Crown Prince Mohammed bin Salman, heir apparent of the world’s largest oil exporter.
The king spoke, and a $2 trillion dream went up in smoke.
For the past two years, Saudi Arabia has prepared to place up to 5 percent of its national oil company on the stock market. Officials talked up the Saudi Aramco initial public offering (IPO) with international exchanges, global banks and U.S. President Donald Trump.
The planned listing was to be the cornerstone of the kingdom’s promised economic overhaul and, at a targeted $100 billion, the biggest IPO ever. It was the brainchild of 32-year-old Crown Prince Mohammed bin Salman, heir apparent of the world’s largest oil exporter.
Oil near flat; trade worries, rising output weigh | Reuters
Oil near flat; trade worries, rising output weigh | Reuters:
Oil prices were near flat on Monday, pausing after last week’s substantial gains as a committee monitoring a deal between OPEC and non-OPEC producers saw production increasing and a U.S.-China trade war also weighed on sentiment.
Brent crude LCOc1 futures rose 24 cents to $76.06 a barrel by 1:05 p.m. EDT (1705 GMT).
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 9 cents to $68.81 a barrel.
Oil prices were near flat on Monday, pausing after last week’s substantial gains as a committee monitoring a deal between OPEC and non-OPEC producers saw production increasing and a U.S.-China trade war also weighed on sentiment.
Brent crude LCOc1 futures rose 24 cents to $76.06 a barrel by 1:05 p.m. EDT (1705 GMT).
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 9 cents to $68.81 a barrel.
MIDEAST STOCKS-Saudi trims gains; banks send Qatar 3.8 pct higher | Reuters
MIDEAST STOCKS-Saudi trims gains; banks send Qatar 3.8 pct higher | Reuters:
The Saudi market ended on a positive note for the second day in a row, while a 6 percent gain in Qatar National Bank boosted the Qatar index, as the country’s biggest bank rebounded from recent selling due to concerns about its Turkey exposure.
The Saudi index rose 0.3 percent, off earlier highs, with losers outnumbering gainers by 89 to 68 and with a trading volume close to its lowest levels this year. The index rose 1.4 percent on Sunday.
National Commercial Bank jumped 3.0 percent and Savola added 2.6 percent.
The Saudi market ended on a positive note for the second day in a row, while a 6 percent gain in Qatar National Bank boosted the Qatar index, as the country’s biggest bank rebounded from recent selling due to concerns about its Turkey exposure.
The Saudi index rose 0.3 percent, off earlier highs, with losers outnumbering gainers by 89 to 68 and with a trading volume close to its lowest levels this year. The index rose 1.4 percent on Sunday.
National Commercial Bank jumped 3.0 percent and Savola added 2.6 percent.
Saudi Aramco loses its ‘in perpetuity’ exclusive oil rights | Financial Times
Saudi Aramco loses its ‘in perpetuity’ exclusive oil rights | Financial Times:
Saudi Arabia has cut the length of time that its state energy company has exclusive rights to the kingdom’s vast oil and gasfields, raising questions about Saudi Aramco’s long-term production and revealing a power struggle between the company and the government.
Saudi Aramco’s concession agreement with the state has limited the amount of time in which the group can explore and develop resources to 40 years — from a previous contract that gave it access in perpetuity. There will be an option to renew the contract.
The move, three people briefed on the matter said, came as part of the kingdom’s preparations for a stock market flotation of Saudi Aramco, which has been indefinitely delayed.
Saudi Arabia has cut the length of time that its state energy company has exclusive rights to the kingdom’s vast oil and gasfields, raising questions about Saudi Aramco’s long-term production and revealing a power struggle between the company and the government.
Saudi Aramco’s concession agreement with the state has limited the amount of time in which the group can explore and develop resources to 40 years — from a previous contract that gave it access in perpetuity. There will be an option to renew the contract.
The move, three people briefed on the matter said, came as part of the kingdom’s preparations for a stock market flotation of Saudi Aramco, which has been indefinitely delayed.
Oil dips as trade row weighs, Iran sanctions expected to cut supply | Reuters
Oil dips as trade row weighs, Iran sanctions expected to cut supply | Reuters:
Oil prices fell on Monday on concerns the U.S.-China trade dispute will erode global economic growth, although looming U.S. sanctions against Iran’s oil sector kept crude from falling further, traders said.
International Brent crude oil futures LCOc1 were at $75.63 per barrel at 0654 GMT, down 19 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 30 cents at $68.42 a barrel.
Oil prices fell on Monday on concerns the U.S.-China trade dispute will erode global economic growth, although looming U.S. sanctions against Iran’s oil sector kept crude from falling further, traders said.
International Brent crude oil futures LCOc1 were at $75.63 per barrel at 0654 GMT, down 19 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 30 cents at $68.42 a barrel.
MIDEAST STOCKS-Saudi rises, other markets mixed amid muted trading | Reuters
MIDEAST STOCKS-Saudi rises, other markets mixed amid muted trading | Reuters:
The Saudi market rose on Monday morning, heading for its second consecutive increase, backed by solid gains on selected stocks even though trading volumes were low in Gulf market after last week’s closure for the Muslim festival of Eid Al Adha.
The Saudi index rose 0.8 percent, after jumping 1.4 percent on Sunday, with gainers outnumbering losers by 84 to 33; however, trading volume remained close to its lowest levels this year.
Jabal Omar jumped 4.4 percent after it announced earlier on Monday selling 90 residential units in its second phase of its flagship project in Mecca to Al Bilad Hospitality Fund for 1.15 billion riyals ($306.7 million) and said the deal would reflect positively on second quarter financial statements.
The Saudi market rose on Monday morning, heading for its second consecutive increase, backed by solid gains on selected stocks even though trading volumes were low in Gulf market after last week’s closure for the Muslim festival of Eid Al Adha.
The Saudi index rose 0.8 percent, after jumping 1.4 percent on Sunday, with gainers outnumbering losers by 84 to 33; however, trading volume remained close to its lowest levels this year.
Jabal Omar jumped 4.4 percent after it announced earlier on Monday selling 90 residential units in its second phase of its flagship project in Mecca to Al Bilad Hospitality Fund for 1.15 billion riyals ($306.7 million) and said the deal would reflect positively on second quarter financial statements.
Sunday, 26 August 2018
Qatari issuers raise $19.97bn, lead GCC bonds and sukuk market in H1
Qatari issuers raise $19.97bn, lead GCC bonds and sukuk market in H1:
Qatari issuers led the GCC aggregate bonds and sukuk market in the first half of this year, raising a total of $19.97bn, according to Kuwait Financial Centre.
Qatari bonds and sukuk in H1 were through 47 issuances and represented nearly 32% of the total value raised in the Gulf Co-operation Council region, according to a recent report by Kuwait Financial Centre (Markaz).
The report stated that the aggregate primary issuance of bonds and sukuk by GCC entities, including central banks’ local issuances, GCC sovereign and corporate issuances, totalled $95.25bn in H1, 2018, which represents a 9.64% increase on H1, 2017.
Qatari issuers led the GCC aggregate bonds and sukuk market in the first half of this year, raising a total of $19.97bn, according to Kuwait Financial Centre.
Qatari bonds and sukuk in H1 were through 47 issuances and represented nearly 32% of the total value raised in the Gulf Co-operation Council region, according to a recent report by Kuwait Financial Centre (Markaz).
The report stated that the aggregate primary issuance of bonds and sukuk by GCC entities, including central banks’ local issuances, GCC sovereign and corporate issuances, totalled $95.25bn in H1, 2018, which represents a 9.64% increase on H1, 2017.
Turkish lira plunge sees Gulf property investors flock to Istanbul
Turkish lira plunge sees Gulf property investors flock to Istanbul:
The plunge in the value of the Turkish lira has fueled a foreign investor buying spree for Istanbul apartments, with the most interest coming from Gulf countries, according to market observers interviewed by Arab News.
Investors from the region are seeking to exploit the near 40 percent depreciation of the local currency against the dollar since January as a political spat with the US and market concern about the fragile Turkish economy has stoked a massive sell-off of the lira.
In an interview with Arab News, Cameron Deggin, founder of PropertyTurkey.com said: “In the last few weeks, unique visitor traffic to our site has more than doubled to over 5,000 a day. We can see from the data that most of the interest is from GCC countries, with Saudi Arabia — as the most populous GCC state — in the lead by a significant margin.”
The plunge in the value of the Turkish lira has fueled a foreign investor buying spree for Istanbul apartments, with the most interest coming from Gulf countries, according to market observers interviewed by Arab News.
Investors from the region are seeking to exploit the near 40 percent depreciation of the local currency against the dollar since January as a political spat with the US and market concern about the fragile Turkish economy has stoked a massive sell-off of the lira.
In an interview with Arab News, Cameron Deggin, founder of PropertyTurkey.com said: “In the last few weeks, unique visitor traffic to our site has more than doubled to over 5,000 a day. We can see from the data that most of the interest is from GCC countries, with Saudi Arabia — as the most populous GCC state — in the lead by a significant margin.”
Qatari Banks Said to Reveal Merger Plans as Early as This Week - Bloomberg
Qatari Banks Said to Reveal Merger Plans as Early as This Week - Bloomberg:
Barwa Bank QSC and International Bank of Qatar QSC may announce plans to merge as early as this week, according to people with knowledge of the matter.
Talks between the two closely held banks are advanced, though they could still be delayed or fall apart, the people said, asking not to be identified because the matter is private.
Combining Barwa and IBQ would partially salvage a proposed three-way merger with Masraf Al Rayan QSC that was abandoned in June after 18 months of talks. That consolidation would have created the country’s largest Shariah-compliant bank and the Middle East’s third-biggest Islamic lender with more than 178 billion riyals ($49 billion) of assets.
Barwa Bank QSC and International Bank of Qatar QSC may announce plans to merge as early as this week, according to people with knowledge of the matter.
Talks between the two closely held banks are advanced, though they could still be delayed or fall apart, the people said, asking not to be identified because the matter is private.
Combining Barwa and IBQ would partially salvage a proposed three-way merger with Masraf Al Rayan QSC that was abandoned in June after 18 months of talks. That consolidation would have created the country’s largest Shariah-compliant bank and the Middle East’s third-biggest Islamic lender with more than 178 billion riyals ($49 billion) of assets.
MIDEAST STOCKS-Saudi outperforms as markets reopen after Eid holidays | Reuters
MIDEAST STOCKS-Saudi outperforms as markets reopen after Eid holidays | Reuters:
Saudi Arabia’s stock market outperformed by a large margin on Sunday, led by petrochemical stocks, as Middle Eastern bourses reopened after a one-week break for the Muslim festival of Eid Al Adha.
The Saudi stock index rose 1.4 percent, although trading volume was the lowest this year as some individual investors had not yet returned from holidays. Gainers outnumbered losers by 146 to 23.
The market has been buoyed this year by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Arabia’s stock market outperformed by a large margin on Sunday, led by petrochemical stocks, as Middle Eastern bourses reopened after a one-week break for the Muslim festival of Eid Al Adha.
The Saudi stock index rose 1.4 percent, although trading volume was the lowest this year as some individual investors had not yet returned from holidays. Gainers outnumbered losers by 146 to 23.
The market has been buoyed this year by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Iranian parliament removes finance minister from office | Reuters
Iranian parliament removes finance minister from office | Reuters:
The Iranian parliament voted on Sunday to remove the minister of economic affairs and finance, Masoud Karbasian, from office, state media said, amid a sharp fall in the rial currency and a deterioration in the economic situation.
The move was the latest in a continuing shakeup of top economic personnel as the United States reimposes economic sanctions on Iran over its nuclear programme and other issues.
In early August Iranian lawmakers voted out the minister of labor and last month President Hassan Rouhani replaced the head of the central bank.
The Iranian parliament voted on Sunday to remove the minister of economic affairs and finance, Masoud Karbasian, from office, state media said, amid a sharp fall in the rial currency and a deterioration in the economic situation.
The move was the latest in a continuing shakeup of top economic personnel as the United States reimposes economic sanctions on Iran over its nuclear programme and other issues.
In early August Iranian lawmakers voted out the minister of labor and last month President Hassan Rouhani replaced the head of the central bank.
MIDEAST STOCKS-Gulf rises in quiet trade as Eid Al Adha holiday ends | Reuters
MIDEAST STOCKS-Gulf rises in quiet trade as Eid Al Adha holiday ends | Reuters:
Gulf stock markets rose in quiet, early trade on Sunday, led by broad-based gains in Saudi Arabia, as they reopened after a one-week break for the Muslim festival of Eid Al Adha.
During that week, the MSCI emerging market index climbed 2.7 percent as Turkish markets stabilised after plunging because of the country’s currency crisis.
This encouraged Gulf institutional investors to buy stocks on Sunday as they returned from holiday, although trading volumes remained modest as many individual investors were still absent.
Gulf stock markets rose in quiet, early trade on Sunday, led by broad-based gains in Saudi Arabia, as they reopened after a one-week break for the Muslim festival of Eid Al Adha.
During that week, the MSCI emerging market index climbed 2.7 percent as Turkish markets stabilised after plunging because of the country’s currency crisis.
This encouraged Gulf institutional investors to buy stocks on Sunday as they returned from holiday, although trading volumes remained modest as many individual investors were still absent.
Judgment in 'bounced check' case against Abraaj CEO postponed to Aug. 28: lawyers | Reuters
Judgment in 'bounced check' case against Abraaj CEO postponed to Aug. 28: lawyers | Reuters:
A United Arab Emirates court postponed judgment until Tuesday in a case against the founder of private equity firm Abraaj, Arif Naqvi, and another executive for issuing a check without sufficient funds, two lawyers close to the case said.
The criminal case in the emirate of Sharjah relates to a check for 798.9 million dirhams ($218 million), signed by Naqvi and fellow executive Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in Abraaj.
Dubai-based Abraaj has filed for provisional liquidation in the Cayman Islands after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund. Liquidators are also seeking to sell its investment management business.
A United Arab Emirates court postponed judgment until Tuesday in a case against the founder of private equity firm Abraaj, Arif Naqvi, and another executive for issuing a check without sufficient funds, two lawyers close to the case said.
The criminal case in the emirate of Sharjah relates to a check for 798.9 million dirhams ($218 million), signed by Naqvi and fellow executive Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in Abraaj.
Dubai-based Abraaj has filed for provisional liquidation in the Cayman Islands after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund. Liquidators are also seeking to sell its investment management business.
Saturday, 25 August 2018
Second bounced cheque case against Abraaj founder scheduled for Sunday | GulfNews.com
Second bounced cheque case against Abraaj founder scheduled for Sunday | GulfNews.com:
A Sharjah court will hear a bounced cheque case against Arif Naqvi, founder of beleaguered private equity firm Abraaj on Sunday.
The court which heard the case on August 14 had reserved its judgement to August 26.
This is second such case against Naqvi to be heard in a court in the UAE. The case relates to a cheque worth $217 million (Dh798 million) issued by Naqvi to Sharjah-based Crescent Group founder Hamid Jafar.
A Sharjah court will hear a bounced cheque case against Arif Naqvi, founder of beleaguered private equity firm Abraaj on Sunday.
The court which heard the case on August 14 had reserved its judgement to August 26.
This is second such case against Naqvi to be heard in a court in the UAE. The case relates to a cheque worth $217 million (Dh798 million) issued by Naqvi to Sharjah-based Crescent Group founder Hamid Jafar.
Iran awaiting European guarantees on oil sales, banking: Zarif | Reuters
Iran awaiting European guarantees on oil sales, banking: Zarif | Reuters:
Iran awaiting European guarantees on the sale of Iranian oil and banking relations, Foreign Minister Mohammad Javad Zarif said on Saturday, according to the Iranian Students’ News Agency (ISNA).
President Donald Trump pulled the United States out of a 2015 nuclear deal between Iran and world powers in May and is reimposing sanctions on Tehran, while other parties to the accord are trying to find ways to save the agreement.
“We are still waiting for Europe to take action on the sale of Iranian oil and the preservation of banking channels,” the Iranian foreign minister said.
Iran awaiting European guarantees on the sale of Iranian oil and banking relations, Foreign Minister Mohammad Javad Zarif said on Saturday, according to the Iranian Students’ News Agency (ISNA).
President Donald Trump pulled the United States out of a 2015 nuclear deal between Iran and world powers in May and is reimposing sanctions on Tehran, while other parties to the accord are trying to find ways to save the agreement.
“We are still waiting for Europe to take action on the sale of Iranian oil and the preservation of banking channels,” the Iranian foreign minister said.
Beyond Saudi Aramco’s stalled IPO | Financial Times
Beyond Saudi Aramco’s stalled IPO | Financial Times:
The indefinite postponement of plans to sell a minority stake in the Saudi state oil company Aramco opens the question of how the country will now manage its finances and its plans for economic diversification.
The sale, intended to raise at least $100bn for a 5 per cent stake in the company, was designed to provide the core funding for the diversification that is needed to generate much-needed jobs and over time enable Saudi Arabia to eliminate its dependence on oil. The concept goes back to a study produced by McKinsey, the international management consultants, in 2014. It was launched under the banner of Vision 2030 by Crown Prince Mohammed bin Salman in 2016.
Directionally, the thinking was right: Saudi Arabia needs to diversify and to find new sources of revenue. The problem is that there was no delivery mechanism to turn the grand vision into practical reality. Now there is no money.
The indefinite postponement of plans to sell a minority stake in the Saudi state oil company Aramco opens the question of how the country will now manage its finances and its plans for economic diversification.
The sale, intended to raise at least $100bn for a 5 per cent stake in the company, was designed to provide the core funding for the diversification that is needed to generate much-needed jobs and over time enable Saudi Arabia to eliminate its dependence on oil. The concept goes back to a study produced by McKinsey, the international management consultants, in 2014. It was launched under the banner of Vision 2030 by Crown Prince Mohammed bin Salman in 2016.
Directionally, the thinking was right: Saudi Arabia needs to diversify and to find new sources of revenue. The problem is that there was no delivery mechanism to turn the grand vision into practical reality. Now there is no money.
UAE's ADNOC in advanced talks to sell refinery stakes: sources | Reuters
UAE's ADNOC in advanced talks to sell refinery stakes: sources | Reuters:
State-owned Abu Dhabi National Oil Co (ADNOC) is in advanced talks with more than one potential buyer, including Italy’s ENI, as it prepares to sell minority stakes in its refining business, two sources familiar with the matter said.
ADNOC began a wide-ranging shake-up in 2016 to tackle competition from new producers such as U.S. shale firms. It listed 10 percent of its fuel distribution business last year and aims to expand its downstream business abroad.
The company also started a sale process for a stake in its $20 billion refining business, which the sources said it was likely to split between two or more parties.
State-owned Abu Dhabi National Oil Co (ADNOC) is in advanced talks with more than one potential buyer, including Italy’s ENI, as it prepares to sell minority stakes in its refining business, two sources familiar with the matter said.
ADNOC began a wide-ranging shake-up in 2016 to tackle competition from new producers such as U.S. shale firms. It listed 10 percent of its fuel distribution business last year and aims to expand its downstream business abroad.
The company also started a sale process for a stake in its $20 billion refining business, which the sources said it was likely to split between two or more parties.
Oil rises as China demand resumes, signs that Iran supply curbed | Reuters
Oil rises as China demand resumes, signs that Iran supply curbed | Reuters:
Oil prices gained more than 1 percent on Friday, ending a run of weekly declines on signs that Iran sanctions may limit global supply and that a trade war may not curb China’s appetite for U.S. crude.
Brent crude oil LCOc1 settled up $1.09 a barrel, or 1.5 percent, at $75.82 a barrel. U.S. crude CLc1 was up 89 cents, or 1.3 percent, at $68.72.
U.S. crude rose more than 4 percent on the week, after seven consecutive declines, and Brent rose 5.3 percent after three weeks of falling prices.
Oil prices gained more than 1 percent on Friday, ending a run of weekly declines on signs that Iran sanctions may limit global supply and that a trade war may not curb China’s appetite for U.S. crude.
Brent crude oil LCOc1 settled up $1.09 a barrel, or 1.5 percent, at $75.82 a barrel. U.S. crude CLc1 was up 89 cents, or 1.3 percent, at $68.72.
U.S. crude rose more than 4 percent on the week, after seven consecutive declines, and Brent rose 5.3 percent after three weeks of falling prices.
Investor Optimism on Global Oil Price Wanes as Demand Woes Loom - Bloomberg
Investor Optimism on Global Oil Price Wanes as Demand Woes Loom - Bloomberg:
Over the past four months, investor optimism that global crude prices will rise has slumped by almost half.
Hedge funds’ net-bullish position on Brent crude, a measure of how positive money managers are that prices will gain, has plunged 49 percent since early April as trade wars cloud the picture for oil consumption. Despite a good week for the benchmark amid strikes at North Sea fields and declines in U.S. stockpiles, Brent remains about 6 percent down from this year’s peak in May.
“When you start to look at the different economies across the globe -- Europe, Asia, the emerging markets are definitely starting to hit some headwinds,” said Mark Watkins, who helps oversee $151 billion at U.S. Bank Wealth Management. Investors “are potentially getting a little bit more concerned about the rest of 2018, and probably going into 2019, that demand might be a little bit softer than previously had been.”
Over the past four months, investor optimism that global crude prices will rise has slumped by almost half.
Hedge funds’ net-bullish position on Brent crude, a measure of how positive money managers are that prices will gain, has plunged 49 percent since early April as trade wars cloud the picture for oil consumption. Despite a good week for the benchmark amid strikes at North Sea fields and declines in U.S. stockpiles, Brent remains about 6 percent down from this year’s peak in May.
“When you start to look at the different economies across the globe -- Europe, Asia, the emerging markets are definitely starting to hit some headwinds,” said Mark Watkins, who helps oversee $151 billion at U.S. Bank Wealth Management. Investors “are potentially getting a little bit more concerned about the rest of 2018, and probably going into 2019, that demand might be a little bit softer than previously had been.”
Friday, 24 August 2018
Iran's Tanker Fleet Gives Oil-Export Lifeline as Sanctions Loom - Bloomberg
Iran's Tanker Fleet Gives Oil-Export Lifeline as Sanctions Loom - Bloomberg:
Iran’s own fleet of tankers may provide a lifeline for its crude and condensate exports that’ll be slashed as U.S. sanctions against the Persian Gulf nation take hold.
As Iran’s customers give in to mounting U.S. pressure, shipments from the OPEC member may drop to under 1 million barrels a day by mid-2019, down from a daily 2.5 million this year, according to industry consultant FGE. Still, the Middle East nation’s cargoes to China in the past few weeks show how changing vessel ownership and contract terms may help it sustain flows to buyers.
Iran’s own fleet of tankers may provide a lifeline for its crude and condensate exports that’ll be slashed as U.S. sanctions against the Persian Gulf nation take hold.
As Iran’s customers give in to mounting U.S. pressure, shipments from the OPEC member may drop to under 1 million barrels a day by mid-2019, down from a daily 2.5 million this year, according to industry consultant FGE. Still, the Middle East nation’s cargoes to China in the past few weeks show how changing vessel ownership and contract terms may help it sustain flows to buyers.
Oil Rises on Supply Risks After Longest Losing Run Since 2015 - Bloomberg
Oil Rises on Supply Risks After Longest Losing Run Since 2015 - Bloomberg:
Oil rose in New York and headed for its first weekly gain in two months amid signs of tighter supply from the North Sea to the Middle East.
Futures in New York gained about 4 percent this week, ending their longest run of weekly losses since 2015. U.S. crude stockpiles dropped by more than twice what analysts expected last week, while strikes at Total SA’s fields in the North Sea could curb supply. Iran’s exports are set to decline sharply as renewed U.S. sanctions take effect, analysts at FGE and Cowen & Co. said.
Oil rose in New York and headed for its first weekly gain in two months amid signs of tighter supply from the North Sea to the Middle East.
Futures in New York gained about 4 percent this week, ending their longest run of weekly losses since 2015. U.S. crude stockpiles dropped by more than twice what analysts expected last week, while strikes at Total SA’s fields in the North Sea could curb supply. Iran’s exports are set to decline sharply as renewed U.S. sanctions take effect, analysts at FGE and Cowen & Co. said.
Shelved Aramco IPO hits at heart of Saudi prince's reforms | Reuters
Shelved Aramco IPO hits at heart of Saudi prince's reforms | Reuters:
Saudi Arabia’s decision to shelve what was billed as the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman but there are other ways to finance reforms to strengthen the economy, bankers and investors say.
The initial public offering (IPO) of 5 percent of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors.
The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.
Saudi Arabia’s decision to shelve what was billed as the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman but there are other ways to finance reforms to strengthen the economy, bankers and investors say.
The initial public offering (IPO) of 5 percent of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors.
The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.
Saudi reforms to boost growth despite any Aramco IPO delay: IMF | Reuters
Saudi reforms to boost growth despite any Aramco IPO delay: IMF | Reuters:
Saudi Arabia is moving ahead with economic reforms and growth in its non-oil economy will pick up this year despite any delay to the planned sale of shares in national oil giant Saudi Aramco, a senior International Monetary Fund official said on Friday.
“Aramco was one part of the reform program. Other parts are moving ahead pretty well,” Tim Callen, the IMF’s mission chief for Saudi Arabia, told reporters after annual consultations with the Saudi government.
He said the IMF’s projections for Saudi economic growth to accelerate in coming years were based on expectations for a broad range of reforms to continue, and did not include the impact of a planned initial public offer of Aramco shares.
Saudi Arabia is moving ahead with economic reforms and growth in its non-oil economy will pick up this year despite any delay to the planned sale of shares in national oil giant Saudi Aramco, a senior International Monetary Fund official said on Friday.
“Aramco was one part of the reform program. Other parts are moving ahead pretty well,” Tim Callen, the IMF’s mission chief for Saudi Arabia, told reporters after annual consultations with the Saudi government.
He said the IMF’s projections for Saudi economic growth to accelerate in coming years were based on expectations for a broad range of reforms to continue, and did not include the impact of a planned initial public offer of Aramco shares.
Norway oil fund should stay in oil and gas — government report | Financial Times
Norway oil fund should stay in oil and gas — government report | Financial Times:
Norway should stay invested in oil and gas shares, according to a government-commissioned report that looked into whether the world’s largest sovereign wealth fund should divest.
The centre-right government in Oslo is not obliged to follow the report but is set to give its own answer in the coming months after the $1tn fund itself recommended selling out to avoid being over-exposed to oil.
“Divestment of the energy stocks in the [oil fund] is not an effective insurance against a permanent decline in oil prices. The energy stocks only contribute marginally to Norway’s oil price risk,” said Oystein Thogersen, the commission’s chairman.
Norway should stay invested in oil and gas shares, according to a government-commissioned report that looked into whether the world’s largest sovereign wealth fund should divest.
The centre-right government in Oslo is not obliged to follow the report but is set to give its own answer in the coming months after the $1tn fund itself recommended selling out to avoid being over-exposed to oil.
“Divestment of the energy stocks in the [oil fund] is not an effective insurance against a permanent decline in oil prices. The energy stocks only contribute marginally to Norway’s oil price risk,” said Oystein Thogersen, the commission’s chairman.
Oil Bounces After Longest Losing Run Since 2015 on Supply Risks - Bloomberg
Oil Bounces After Longest Losing Run Since 2015 on Supply Risks - Bloomberg:
The prospect of tighter supplies from the U.S. to the North Sea and Iran is helping oil recover this week from the longest losing streak since 2015.
Futures in New York are headed for a 3.7 percent gain this week, the first advance in two months. In the U.S., latest data showed stockpiles dropped by more than twice what analysts had expected, while supplies in the North Sea are under threat from labor strikes at Total SA’s fields. Uncertainty also persists over how Iran’s exports will be affected by impending American sanctions against OPEC’s third-biggest producer.
The prospect of tighter supplies from the U.S. to the North Sea and Iran is helping oil recover this week from the longest losing streak since 2015.
Futures in New York are headed for a 3.7 percent gain this week, the first advance in two months. In the U.S., latest data showed stockpiles dropped by more than twice what analysts had expected, while supplies in the North Sea are under threat from labor strikes at Total SA’s fields. Uncertainty also persists over how Iran’s exports will be affected by impending American sanctions against OPEC’s third-biggest producer.
Aramco’s Stalled IPO Tarnishes Saudi Prince’s Grand Vision - Bloomberg
Aramco’s Stalled IPO Tarnishes Saudi Prince’s Grand Vision - Bloomberg:
The sale of shares in Saudi Arabia’s oil giant was supposed to underpin Crown Prince Mohammed bin Salman’s grand plan to transform an insular, oil-dependent kingdom into a 21st century economy. Floating Aramco abroad would expose the most important Saudi company to the scrutiny of global markets, a hard jolt toward the modern world.
So much for that.
Saudi Arabia’s acknowledgement this week that the initial public offering is on hold represents the most significant reversal in Prince Mohammed’s plans. While he will find other ways to fund his vision, it’s likely to give pause to investors considering other deals that depend on government commitments.
The sale of shares in Saudi Arabia’s oil giant was supposed to underpin Crown Prince Mohammed bin Salman’s grand plan to transform an insular, oil-dependent kingdom into a 21st century economy. Floating Aramco abroad would expose the most important Saudi company to the scrutiny of global markets, a hard jolt toward the modern world.
So much for that.
Saudi Arabia’s acknowledgement this week that the initial public offering is on hold represents the most significant reversal in Prince Mohammed’s plans. While he will find other ways to fund his vision, it’s likely to give pause to investors considering other deals that depend on government commitments.
Oil prices rise as U.S. sanctions on Iran cloud supply outlook | Reuters
Oil prices rise as U.S. sanctions on Iran cloud supply outlook | Reuters:
Oil prices rose on Friday as U.S. sanctions on Iran are expected to cut significant volumes of crude from the market.
Brent crude oil futures LCOc1 were at $75.19 per barrel at 0640 GMT, up 46 cents, or 0.6 percent, from their last close. Brent is on track for a 4.7 percent weekly rise.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.32 per barrel, up 49 cents, or 0.7 percent. WTI is heading for a 3.7 percent weekly increase.
Oil prices rose on Friday as U.S. sanctions on Iran are expected to cut significant volumes of crude from the market.
Brent crude oil futures LCOc1 were at $75.19 per barrel at 0640 GMT, up 46 cents, or 0.6 percent, from their last close. Brent is on track for a 4.7 percent weekly rise.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.32 per barrel, up 49 cents, or 0.7 percent. WTI is heading for a 3.7 percent weekly increase.
Thursday, 23 August 2018
Riyadh to seek $11bn in bank loans after Saudi Aramco IPO stalls | Financial Times
Riyadh to seek $11bn in bank loans after Saudi Aramco IPO stalls | Financial Times:
Saudi Arabia’s sovereign wealth fund is primed to choose international banks to lend it $11bn, filling the hole left by the delayed listing of state energy group Saudi Aramco and providing financing for crown prince Mohammed bin Salman’s ambitious economic reforms.
The loans will be the first made to the Public Investment Fund, the vehicle used to drive the young prince’s vision for an economy less dependent on oil, which has placed bold bets on electric car maker Tesla, ride-hailing app Uber and space travel company Virgin Galactic.
The loans are particularly important for the fund after plans to list Saudi Aramco, from which it was due to receive proceeds, were postponed indefinitely. Riyadh’s focus has shifted away from the blockbuster IPO, which had been expected to raise in the region of $100bn, in favour of other means of financing for the PIF.
Saudi Arabia’s sovereign wealth fund is primed to choose international banks to lend it $11bn, filling the hole left by the delayed listing of state energy group Saudi Aramco and providing financing for crown prince Mohammed bin Salman’s ambitious economic reforms.
The loans will be the first made to the Public Investment Fund, the vehicle used to drive the young prince’s vision for an economy less dependent on oil, which has placed bold bets on electric car maker Tesla, ride-hailing app Uber and space travel company Virgin Galactic.
The loans are particularly important for the fund after plans to list Saudi Aramco, from which it was due to receive proceeds, were postponed indefinitely. Riyadh’s focus has shifted away from the blockbuster IPO, which had been expected to raise in the region of $100bn, in favour of other means of financing for the PIF.
Saudi Aramco IPO delay not likely to impact on economy, says economist | ZAWYA MENA Edition
Saudi Aramco IPO delay not likely to impact on economy, says economist | ZAWYA MENA Edition:
Further delays to the process of listing Saudi Aramco either domestically or on global markets is unlikely to have an impact on the country's markets or its wider economy, according to Capital Economics.
The London-based firm said in a note issued on Thursday that "We don’t think another delay would have a significant direct impact on Saudi Arabia’s economy or financial markets in the near-term.
The firm pointed out in its note that the timeline for the Kingdom's IPO "has already been pushed back quite far". A listing of the company at least on the Saudi stock exchange, Tadawul, had been due to take place this year.
Further delays to the process of listing Saudi Aramco either domestically or on global markets is unlikely to have an impact on the country's markets or its wider economy, according to Capital Economics.
The London-based firm said in a note issued on Thursday that "We don’t think another delay would have a significant direct impact on Saudi Arabia’s economy or financial markets in the near-term.
The firm pointed out in its note that the timeline for the Kingdom's IPO "has already been pushed back quite far". A listing of the company at least on the Saudi stock exchange, Tadawul, had been due to take place this year.
Saudi Arabia insists Aramco IPO remains on course | Financial Times
Saudi Arabia insists Aramco IPO remains on course | Financial Times:
Saudi Arabia has insisted that it remains committed to an initial public offering of national oil company Saudi Aramco, but said the listing would go ahead “at a time of its own choosing, when conditions are optimum”.
The government statement follows months of signs that the kingdom was unwilling or unable to forge ahead with a planned flotation — which could be the largest ever — and a Reuters report saying both the proposed domestic and international stock listings had been called off, with IPO advisers disbanded.
Khalid Al Falih, the Saudi energy minister, issued the statement early on Thursday dismissing “speculation surrounding the cancellation of the IPO as not true”.
Saudi Arabia has insisted that it remains committed to an initial public offering of national oil company Saudi Aramco, but said the listing would go ahead “at a time of its own choosing, when conditions are optimum”.
The government statement follows months of signs that the kingdom was unwilling or unable to forge ahead with a planned flotation — which could be the largest ever — and a Reuters report saying both the proposed domestic and international stock listings had been called off, with IPO advisers disbanded.
Khalid Al Falih, the Saudi energy minister, issued the statement early on Thursday dismissing “speculation surrounding the cancellation of the IPO as not true”.
Oil Trades Near $68 on Bigger-Than-Forecast U.S. Inventory Draw - Bloomberg
Oil Trades Near $68 on Bigger-Than-Forecast U.S. Inventory Draw - Bloomberg:
Oil in New York traded near $68 a barrel following a five-day winning streak after U.S. crude inventories declined more than forecast.
Front-month futures were little changed after posting their longest consecutive run of gains since April. Nationwide stockpiles declined 5.84 million barrels last week, more than double what was expected in a Bloomberg survey of analysts. The dollar, which had helped buoy oil prices after a five-day slide, climbed 0.3 percent on Thursday.
Oil in New York traded near $68 a barrel following a five-day winning streak after U.S. crude inventories declined more than forecast.
Front-month futures were little changed after posting their longest consecutive run of gains since April. Nationwide stockpiles declined 5.84 million barrels last week, more than double what was expected in a Bloomberg survey of analysts. The dollar, which had helped buoy oil prices after a five-day slide, climbed 0.3 percent on Thursday.
Saudi Aramco IPO Concept Was Far Too Premature - Bloomberg
Saudi Aramco IPO Concept Was Far Too Premature - Bloomberg:
I’ve long thought that Crown Prince Mohammed bin Salman’s life overlaps in curious but important ways with one Elon Musk, CEO of Tesla Inc. And now, MBS even has his own take on Musk’s “funding secured” meme.
The long-awaited initial public offering of Saudi Arabian Oil Co., or Saudi Aramco, has been put on hold, according to my colleagues in Bloomberg News. Given it is already two-and-a-half years since the sale was first mooted, “on hold” sounds a lot like “how about never?” For their part, the Saudi authorities, citing preparations made to date, insisted late Wednesday evening that the IPO hadn’t been cancelled — as Reuters had earlier reported — but that it would go ahead at a time of the government’s own choosing.
In any case, it’s fair to say that MBS’s confident proclamations about the mother of all IPOs were a tad premature and that $2 trillion valuation he spoke of was decidedly not secured (still, at least no one could mistake $2,000,000,000,000 for a joke about weed).
I’ve long thought that Crown Prince Mohammed bin Salman’s life overlaps in curious but important ways with one Elon Musk, CEO of Tesla Inc. And now, MBS even has his own take on Musk’s “funding secured” meme.
The long-awaited initial public offering of Saudi Arabian Oil Co., or Saudi Aramco, has been put on hold, according to my colleagues in Bloomberg News. Given it is already two-and-a-half years since the sale was first mooted, “on hold” sounds a lot like “how about never?” For their part, the Saudi authorities, citing preparations made to date, insisted late Wednesday evening that the IPO hadn’t been cancelled — as Reuters had earlier reported — but that it would go ahead at a time of the government’s own choosing.
In any case, it’s fair to say that MBS’s confident proclamations about the mother of all IPOs were a tad premature and that $2 trillion valuation he spoke of was decidedly not secured (still, at least no one could mistake $2,000,000,000,000 for a joke about weed).
Oil slips as trade dispute outweighs U.S. stock decline | Reuters
Oil slips as trade dispute outweighs U.S. stock decline | Reuters:
Oil prices slipped on Thursday as an escalating trade dispute between the United States and China outweighed the bullish impact of a decline in U.S. commercial crude inventories.
Benchmark Brent crude oil LCOc1 was down 30 cents a barrel at $74.48 by 0825 GMT. U.S. light crude CLc1 was 10 cents lower at $67.76.
The trade dispute between the United States and China deepened on Thursday with the imposition of 25 percent tariffs on $16 billion worth of each other’s goods.
Oil prices slipped on Thursday as an escalating trade dispute between the United States and China outweighed the bullish impact of a decline in U.S. commercial crude inventories.
Benchmark Brent crude oil LCOc1 was down 30 cents a barrel at $74.48 by 0825 GMT. U.S. light crude CLc1 was 10 cents lower at $67.76.
The trade dispute between the United States and China deepened on Thursday with the imposition of 25 percent tariffs on $16 billion worth of each other’s goods.
Saudi energy minister denies Aramco IPO will be called off | Reuters
Saudi energy minister denies Aramco IPO will be called off | Reuters:
Saudi Arabia’s energy minister denied a Reuters report that state oil giant Aramco’s initial public offering will be called off, in a statement issued early on Thursday.
“The government remains committed to the initial public offering of Saudi Aramco, in accordance with the appropriate circumstances and appropriate time chosen by the Government,” Energy Minister Khalid al-Falih said in a statement released on Saudi Press Agency.
Reuters reported on Wednesday that four senior industry sources said Saudi Arabia has called off both the domestic and international stock listing of Aramco.
Saudi Arabia’s energy minister denied a Reuters report that state oil giant Aramco’s initial public offering will be called off, in a statement issued early on Thursday.
“The government remains committed to the initial public offering of Saudi Aramco, in accordance with the appropriate circumstances and appropriate time chosen by the Government,” Energy Minister Khalid al-Falih said in a statement released on Saudi Press Agency.
Reuters reported on Wednesday that four senior industry sources said Saudi Arabia has called off both the domestic and international stock listing of Aramco.
Biggest public listing in history put on hold over valuation fears | Business | The Guardian
Biggest public listing in history put on hold over valuation fears | Business | The Guardian:
A partial float of the Saudi oil giant Aramco – the biggest public listing in history – has been “indefinitely postponed” because of fears that its valuation would be much less than expected, according to senior regional sources.
The decision was made earlier in the summer but has been kept under wraps by officials who were worried that shelving what was intended to be the centrepiece of Saudi Arabia’s economic transformation plan may dent investor confidence in the Kingdom, two financiers with knowledge of deliberations revealed.
The development, first reported by Reuters, is a blow to the stock markets in New York and London, which had vied to host the listing.
A partial float of the Saudi oil giant Aramco – the biggest public listing in history – has been “indefinitely postponed” because of fears that its valuation would be much less than expected, according to senior regional sources.
The decision was made earlier in the summer but has been kept under wraps by officials who were worried that shelving what was intended to be the centrepiece of Saudi Arabia’s economic transformation plan may dent investor confidence in the Kingdom, two financiers with knowledge of deliberations revealed.
The development, first reported by Reuters, is a blow to the stock markets in New York and London, which had vied to host the listing.
Wednesday, 22 August 2018
Oil jumps 3 percent on big U.S. crude draw, Iran sanctions | Reuters
Oil jumps 3 percent on big U.S. crude draw, Iran sanctions | Reuters:
Oil prices rose 3 percent on Wednesday, with Brent crude futures hitting a three-week high, after U.S. government data showed a larger-than-expected draw in crude inventories and as Washington’s sanctions on Iran signaled tightening supplies.
Brent crude futures LCOc1 rose $2.15, or 3 percent, to settle at $74.78 a barrel. The global benchmark reached $75.00 during the session, the highest since July 31.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $2.02 to settle at $67.86 a barrel, a 3.1 percent gain.
Oil prices rose 3 percent on Wednesday, with Brent crude futures hitting a three-week high, after U.S. government data showed a larger-than-expected draw in crude inventories and as Washington’s sanctions on Iran signaled tightening supplies.
Brent crude futures LCOc1 rose $2.15, or 3 percent, to settle at $74.78 a barrel. The global benchmark reached $75.00 during the session, the highest since July 31.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $2.02 to settle at $67.86 a barrel, a 3.1 percent gain.
#SaudiArabia has called off Aramco float, report suggests - BBC News
Saudi Arabia has called off Aramco float, report suggests - BBC News:
Saudi Arabia is reported to have cancelled its plans to sell shares in state oil giant Aramco, which had been billed as the largest flotation ever.
The group of financial advisers working on a plan to sell 5% of the company domestically and internationally has been disbanded, Reuters reports.
The wire service quoted a source suggesting the decision was taken some time ago but is not being announced.
Saudi Arabia is reported to have cancelled its plans to sell shares in state oil giant Aramco, which had been billed as the largest flotation ever.
The group of financial advisers working on a plan to sell 5% of the company domestically and internationally has been disbanded, Reuters reports.
The wire service quoted a source suggesting the decision was taken some time ago but is not being announced.
Abu Dhabi boosts Al Hilal Bank's capital by Dh400m, CEO says - The National
Abu Dhabi boosts Al Hilal Bank's capital by Dh400m, CEO says - The National:
Abu Dhabi has increased the share capital of its wholly-owned Al Hilal Bank by Dh400 million, a timely boost for the Islamic lender, which is modernising its branch network and investing in technology.
The increase in capital by the Abu Dhabi Investment Council, the state-owned firm that has tied-up with Mubadala Investment Company, was granted in June, Alex Coelho, the Al Hilal chief executive, told The National. Al Hilal’s share capital has risen to Dh3.5 billion from Dh3.1bn, as it pursues growth plans, he added.
“While the increase will further strengthen the bank’s balance sheet and capital base, from a more long-term perspective, it allows us to meet the growing demand for Islamic finance by investing in areas with the greatest growth prospects,” said Mr Coelho.
Abu Dhabi has increased the share capital of its wholly-owned Al Hilal Bank by Dh400 million, a timely boost for the Islamic lender, which is modernising its branch network and investing in technology.
The increase in capital by the Abu Dhabi Investment Council, the state-owned firm that has tied-up with Mubadala Investment Company, was granted in June, Alex Coelho, the Al Hilal chief executive, told The National. Al Hilal’s share capital has risen to Dh3.5 billion from Dh3.1bn, as it pursues growth plans, he added.
“While the increase will further strengthen the bank’s balance sheet and capital base, from a more long-term perspective, it allows us to meet the growing demand for Islamic finance by investing in areas with the greatest growth prospects,” said Mr Coelho.
OPEC's Good Year Can't Mask Broader Fragility - Bloomberg
OPEC's Good Year Can't Mask Broader Fragility - Bloomberg:
The latest U.S. assessment of how much money OPEC rakes in from oil exports confirmed one thing: Cutting supplies worked.
In its annual OPEC Revenues Fact Sheet, released Tuesday, the Energy Information Administration estimates OPEC’s export revenue was $567 billion in 2017, up 26 percent in real terms. That’s despite the group’s average crude oil production dropping slightly compared with 2016. Such is the magic of higher prices and collective supply restrictions.
Yet the numbers also show just how big a hole OPEC now finds itself in. Because 26 percent growth is great, obviously, but just how great depends on where you’re starting from:
The latest U.S. assessment of how much money OPEC rakes in from oil exports confirmed one thing: Cutting supplies worked.
In its annual OPEC Revenues Fact Sheet, released Tuesday, the Energy Information Administration estimates OPEC’s export revenue was $567 billion in 2017, up 26 percent in real terms. That’s despite the group’s average crude oil production dropping slightly compared with 2016. Such is the magic of higher prices and collective supply restrictions.
Yet the numbers also show just how big a hole OPEC now finds itself in. Because 26 percent growth is great, obviously, but just how great depends on where you’re starting from:
4 Deaths That Will Remake the Middle East - Bloomberg
4 Deaths That Will Remake the Middle East - Bloomberg:
There is now a consensus that any political transformation of the Middle East — a long-cherished goal of both U.S. policymakers and millions who live there — will not be achieved by revolution, foreign intervention or civil war. The failure of the Arab Spring, the disastrous consequences of the U.S.-led invasion of Iraq, and the ongoing catastrophe in Syria have shattered fantasies of sudden change.
It is more fashionable these days to pin hope on demographics and technology — the theory that a massive cohort of young people, armed with smartphones, will succeed where all other efforts have failed.
But we may be overlooking a simpler, surer agent of change: human mortality. Death, especially that of longstanding rulers, has historically been a reliable harbinger of political, economic and social renewal. This is especially true when there’s a generational transfer of power — which is exactly what we’re about to witness in the Middle East.
There is now a consensus that any political transformation of the Middle East — a long-cherished goal of both U.S. policymakers and millions who live there — will not be achieved by revolution, foreign intervention or civil war. The failure of the Arab Spring, the disastrous consequences of the U.S.-led invasion of Iraq, and the ongoing catastrophe in Syria have shattered fantasies of sudden change.
It is more fashionable these days to pin hope on demographics and technology — the theory that a massive cohort of young people, armed with smartphones, will succeed where all other efforts have failed.
But we may be overlooking a simpler, surer agent of change: human mortality. Death, especially that of longstanding rulers, has historically been a reliable harbinger of political, economic and social renewal. This is especially true when there’s a generational transfer of power — which is exactly what we’re about to witness in the Middle East.
Saudi Aramco IPO Called Off: Reuters Reports - Bloomberg
Saudi Aramco IPO Called Off: Reuters Reports - Bloomberg:
Saudi Arabia has called off both the domestic and international stock listing of state oil giant Saudi Aramco and disbanded advisers, Reuters reports, citing four unidentified industry sources.
"The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way - first delay then calling off," an unidentified Saudi source told Reuters.
Saudi Aramco didn’t immediately respond to an emailed request for comment from Reuters.
Saudi Arabia has called off both the domestic and international stock listing of state oil giant Saudi Aramco and disbanded advisers, Reuters reports, citing four unidentified industry sources.
"The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way - first delay then calling off," an unidentified Saudi source told Reuters.
Saudi Aramco didn’t immediately respond to an emailed request for comment from Reuters.
Oil jumps over 2 percent on big U.S. crude draw, Iran sanctions | Reuters
Oil jumps over 2 percent on big U.S. crude draw, Iran sanctions | Reuters:
Oil prices rose more than 2 percent on Wednesday, with Brent crude futures hitting a two-week high, after U.S. government data showed a larger-than-expected draw in domestic crude inventories and as Washington’s sanctions on Iran signaled tightening supplies.
Brent crude LCOc1 futures rose $1.92 to $74.55 a barrel, a 2.6 percent gain, by 12:58 p.m. EDT (1658 GMT). The global benchmark reached $74.77 during the session, the highest since Aug. 8.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.93 to $67.77 a barrel, a 2.9 percent gain.
Oil prices rose more than 2 percent on Wednesday, with Brent crude futures hitting a two-week high, after U.S. government data showed a larger-than-expected draw in domestic crude inventories and as Washington’s sanctions on Iran signaled tightening supplies.
Brent crude LCOc1 futures rose $1.92 to $74.55 a barrel, a 2.6 percent gain, by 12:58 p.m. EDT (1658 GMT). The global benchmark reached $74.77 during the session, the highest since Aug. 8.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.93 to $67.77 a barrel, a 2.9 percent gain.
Oil Extends Gains on Signs of Stockpile Slide and Weaker Dollar - Bloomberg
Oil Extends Gains on Signs of Stockpile Slide and Weaker Dollar - Bloomberg:
Oil extended gains after an industry group signaled American crude stockpiles fell more than expected and a weaker dollar raised the allure of commodities priced in the U.S. currency.
October futures in New York climbed as much as 0.6 percent after Tuesday’s 0.6 percent advance. Crude inventories fell by 5.17 million barrels last week, the American Petroleum Institute was said to report, more than double what analysts forecast government data will show. Also boosting prices is a four-day slide in the greenback, increasing the appeal of dollar-based commodities contracts.
Oil extended gains after an industry group signaled American crude stockpiles fell more than expected and a weaker dollar raised the allure of commodities priced in the U.S. currency.
October futures in New York climbed as much as 0.6 percent after Tuesday’s 0.6 percent advance. Crude inventories fell by 5.17 million barrels last week, the American Petroleum Institute was said to report, more than double what analysts forecast government data will show. Also boosting prices is a four-day slide in the greenback, increasing the appeal of dollar-based commodities contracts.
Kuwait, Iraq to study developing shared oilfields: Rashidi | Reuters
Kuwait, Iraq to study developing shared oilfields: Rashidi | Reuters:
Kuwait and Iraq will appoint consultants soon to study the development of shared oilfields, Kuwaiti Oil Minister Bakhit al-Rashidi said on Wednesday.
Production from cross-border oilfields has long been a source of tension between the two OPEC nations.
In the build-up to Iraq’s 1990 invasion of Kuwait, Baghdad accused Kuwait of drilling wells that crossed the border and pumped oil from Iraqi territory. Kuwait denied the charge.
Kuwait and Iraq will appoint consultants soon to study the development of shared oilfields, Kuwaiti Oil Minister Bakhit al-Rashidi said on Wednesday.
Production from cross-border oilfields has long been a source of tension between the two OPEC nations.
In the build-up to Iraq’s 1990 invasion of Kuwait, Baghdad accused Kuwait of drilling wells that crossed the border and pumped oil from Iraqi territory. Kuwait denied the charge.
Germany calls for global payments system free of US | Financial Times
Germany calls for global payments system free of US | Financial Times:
Germany’s foreign minister has called for the creation of a new payments system independent of the US as a means of rescuing the nuclear deal between Iran and the west that Donald Trump withdrew from in May.
Writing in the German daily Handelsblatt, Heiko Maas said Europe should not allow the US to act “over our heads and at our expense”.
“For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system,” he wrote.
Germany’s foreign minister has called for the creation of a new payments system independent of the US as a means of rescuing the nuclear deal between Iran and the west that Donald Trump withdrew from in May.
Writing in the German daily Handelsblatt, Heiko Maas said Europe should not allow the US to act “over our heads and at our expense”.
“For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system,” he wrote.
Tuesday, 21 August 2018
Exclusive: NMC Health targets US and Africa in next wave of acquisitions - The National
Exclusive: NMC Health targets US and Africa in next wave of acquisitions - The National:
NMC Health, which joined the FTSE 100 list of companies last September, is looking to the United States and Africa for future investments, after sealing its first acquisition in the UK this week, its chief executive said.
No deal talks are taking place at present, Prasanth Manghat told The National, but expansion in both markets is a target from 2019.
“The US is a very promising market and we hope it will be our next one to break into, although it’s too early to discuss specific opportunities,” said Mr Manghat .
NMC Health, which joined the FTSE 100 list of companies last September, is looking to the United States and Africa for future investments, after sealing its first acquisition in the UK this week, its chief executive said.
No deal talks are taking place at present, Prasanth Manghat told The National, but expansion in both markets is a target from 2019.
“The US is a very promising market and we hope it will be our next one to break into, although it’s too early to discuss specific opportunities,” said Mr Manghat .
World’s biggest sovereign fund worried about trade wars
World’s biggest sovereign fund worried about trade wars:
The managers of Norway’s sovereign wealth fund, the world’s biggest, expressed concern Tuesday about global trade tensions, which could heavily impact its value.
The fund posted a positive return of 1.8 percent, or 167 billion kroner ($19.8 billion), in the second quarter, helping erase a loss of 171 billion kroner in January-March that was attributed to a volatile stock market.
The Government Pension Fund Global, which saw its total value swell to 8.33 trillion kroner by the end of June, manages the country’s oil revenues in order to finance Norway’s generous welfare state when its oil and gas wells run dry.
The managers of Norway’s sovereign wealth fund, the world’s biggest, expressed concern Tuesday about global trade tensions, which could heavily impact its value.
The fund posted a positive return of 1.8 percent, or 167 billion kroner ($19.8 billion), in the second quarter, helping erase a loss of 171 billion kroner in January-March that was attributed to a volatile stock market.
The Government Pension Fund Global, which saw its total value swell to 8.33 trillion kroner by the end of June, manages the country’s oil revenues in order to finance Norway’s generous welfare state when its oil and gas wells run dry.
Early SPR Release May Reflect Trump's Concern Over Oil Prices - Bloomberg
Early SPR Release May Reflect Trump's Concern Over Oil Prices - Bloomberg:
The U.S. sale of 11 million barrels of oil from its emergency stockpile will likely do little to offset the impact of sanctions on Iran.
That timing of the sale -- with the barrels set to hit the market in October and November -- may reflect the White House’s concern over tight supplies amid the renewal of U.S. sanctions, according to analysts at ClearView Energy Partners LLC. The Trump administration has asked allies to halt all imports of Iranian oil by Nov. 4, stoking global supply fears. Yet an 11-million-barrel sale over two months likely won’t do much to offset the impact of sanctions, which the administration estimates will remove 700,000 to 1 million barrels a day of Iranian crude from the global market by early November.
The U.S. sale of 11 million barrels of oil from its emergency stockpile will likely do little to offset the impact of sanctions on Iran.
That timing of the sale -- with the barrels set to hit the market in October and November -- may reflect the White House’s concern over tight supplies amid the renewal of U.S. sanctions, according to analysts at ClearView Energy Partners LLC. The Trump administration has asked allies to halt all imports of Iranian oil by Nov. 4, stoking global supply fears. Yet an 11-million-barrel sale over two months likely won’t do much to offset the impact of sanctions, which the administration estimates will remove 700,000 to 1 million barrels a day of Iranian crude from the global market by early November.
Oil Advances as Strategic Reserve Release Points to Tight Supply - Bloomberg
Oil Advances as Strategic Reserve Release Points to Tight Supply - Bloomberg:
Crude rose the most in more than two weeks as a U.S. plan to sell strategic oil reserves intensified concerns about tightening global supplies.
Futures in New York rose as much as 2.5 percent on Tuesday. Almost 2 percent of the U.S. petroleum reserve will be released later this year just as sanctions are anticipated to begin choking off Iranian crude exports. In the near term, American oil inventories probably declined last week, and the weakening greenback boosted the appeal of dollar-denominated commodities.
“The strength is really primarily from the weak dollar and also you’re getting another week of expectations that you will see crude stocks drop,” said Gene McGillian, manager of market research at Tradition Energy. “The fundamental picture is tighter than it was a year ago.”
Crude rose the most in more than two weeks as a U.S. plan to sell strategic oil reserves intensified concerns about tightening global supplies.
Futures in New York rose as much as 2.5 percent on Tuesday. Almost 2 percent of the U.S. petroleum reserve will be released later this year just as sanctions are anticipated to begin choking off Iranian crude exports. In the near term, American oil inventories probably declined last week, and the weakening greenback boosted the appeal of dollar-denominated commodities.
“The strength is really primarily from the weak dollar and also you’re getting another week of expectations that you will see crude stocks drop,” said Gene McGillian, manager of market research at Tradition Energy. “The fundamental picture is tighter than it was a year ago.”
UAE-owned Spanish energy company Cepsa ready to launch listing in September- sources | ZAWYA MENA Edition
UAE-owned Spanish energy company Cepsa ready to launch listing in September- sources | ZAWYA MENA Edition:
The Abu Dhabi owner of Spanish energy company Cepsa is expected to opt for an IPO instead of a private stake sale and plans to launch the listing as early as September, according to four banking sources familiar with the deal.
While parallel negotiations for a potential sale are ongoing, sources said a Madrid listing was the more likely option.
Two of the sources said the business would be valued at around 10 billion euros ($11.44 billion). Once companies announce an intention to float the listing usually takes place a few weeks later.
The Abu Dhabi owner of Spanish energy company Cepsa is expected to opt for an IPO instead of a private stake sale and plans to launch the listing as early as September, according to four banking sources familiar with the deal.
While parallel negotiations for a potential sale are ongoing, sources said a Madrid listing was the more likely option.
Two of the sources said the business would be valued at around 10 billion euros ($11.44 billion). Once companies announce an intention to float the listing usually takes place a few weeks later.
Oil hits one-week high as Iran-driven rally gathers pace | Reuters
Oil hits one-week high as Iran-driven rally gathers pace | Reuters:
Oil rose to its highest level in a week on Tuesday, ahead of a forecast drawdown in U.S. crude inventories and buoyed by the prospect of U.S. sanctions on Iran, though the trade dispute between Washington and Beijing kept traders and analysts cautious.
Brent crude LCOc1 futures for October delivery rose 42 cents to settle at $72.63 a barrel. The global benchmark earlier hit $72.95 a barrel, the highest level since Aug. 14.
U.S. West Texas Intermediate crude futures for October delivery CLc2, the most active contract, rose 42 cents to settle at $65.84 a barrel. The September contract CLc1 expired on Tuesday and settled 92 cents higher to $67.35 a barrel.
Oil rose to its highest level in a week on Tuesday, ahead of a forecast drawdown in U.S. crude inventories and buoyed by the prospect of U.S. sanctions on Iran, though the trade dispute between Washington and Beijing kept traders and analysts cautious.
Brent crude LCOc1 futures for October delivery rose 42 cents to settle at $72.63 a barrel. The global benchmark earlier hit $72.95 a barrel, the highest level since Aug. 14.
U.S. West Texas Intermediate crude futures for October delivery CLc2, the most active contract, rose 42 cents to settle at $65.84 a barrel. The September contract CLc1 expired on Tuesday and settled 92 cents higher to $67.35 a barrel.
Oil builds momentum with fourth day of gains | Financial Times
Oil builds momentum with fourth day of gains | Financial Times:
Is the pain finally over for oil bulls? Oil prices are on track for their fourth straight session of gains, suggesting a possible end is in sight to several weeks of steady declines.
In midday trading, the price of West Texas Intermediate, the US standard, was up 1.26 per cent to $67.27 a barrel, while Brent, the international benchmark, had advanced 0.43 per cent to $72.52.
The move higher comes as the market balances the impending bite on supply from Iran sanctions with the announcement yesterday that the US had approved the sale of crude oil from its Strategic Petroleum Reserves to help inject additional supplies into the global oil market.
Is the pain finally over for oil bulls? Oil prices are on track for their fourth straight session of gains, suggesting a possible end is in sight to several weeks of steady declines.
In midday trading, the price of West Texas Intermediate, the US standard, was up 1.26 per cent to $67.27 a barrel, while Brent, the international benchmark, had advanced 0.43 per cent to $72.52.
The move higher comes as the market balances the impending bite on supply from Iran sanctions with the announcement yesterday that the US had approved the sale of crude oil from its Strategic Petroleum Reserves to help inject additional supplies into the global oil market.
Monday, 20 August 2018
US approves sale from strategic oil reserve as Iran sanctions loom | Financial Times
US approves sale from strategic oil reserve as Iran sanctions loom | Financial Times:
The US government has approved the latest sale of crude oil from its Strategic Petroleum Reserve, a move allowed under recent statutes that will inject additional supplies into the world market as Washington tightens screws on Iran.
Eleven million barrels of sour crude will be offered for delivery between October 1 and November 30, the energy department said in a notice of sale posted Monday. The sale, if not its timing, was required under 2015 budget legislation and a healthcare law passed in 2016, according to the notice.
The Strategic Petroleum Reserve was established in the 1970s after the US economy was paralysed by an oil embargo. As recently as 2011 it contained 727m barrels in caverns along the Texas and Louisiana coasts. It was used to address fuel shortfalls caused by emergencies such as Hurricane Katrina in 2005 and the collapse in Libya’s production in 2011.
The US government has approved the latest sale of crude oil from its Strategic Petroleum Reserve, a move allowed under recent statutes that will inject additional supplies into the world market as Washington tightens screws on Iran.
Eleven million barrels of sour crude will be offered for delivery between October 1 and November 30, the energy department said in a notice of sale posted Monday. The sale, if not its timing, was required under 2015 budget legislation and a healthcare law passed in 2016, according to the notice.
The Strategic Petroleum Reserve was established in the 1970s after the US economy was paralysed by an oil embargo. As recently as 2011 it contained 727m barrels in caverns along the Texas and Louisiana coasts. It was used to address fuel shortfalls caused by emergencies such as Hurricane Katrina in 2005 and the collapse in Libya’s production in 2011.
NMC Health makes first UK acquisition with Aspen Healthcare deal - The National
NMC Health makes first UK acquisition with Aspen Healthcare deal - The National:
London-listed NMC Health said it agreed to acquire 100 per cent of the equity of Aspen Healthcare for £10 million – its first acquisition of a UK-based healthcare company.
“The acquisition provides NMC a very cost-effective means of introducing its fertility services to the UK,” the group said on Monday in a statement to the London Stock Exchange.
NMC Health acquired Aspen Healthcare from New York Stock Exchange-listed Tenet Healthcare Corporation. Under the deal, which is yet to complete, NMC will acquire Aspen’s network of nine facilities in the UK, including four hospitals, three of which are in Greater London and one in Edinburgh, as well as clinics elsewhere in the UK.
London-listed NMC Health said it agreed to acquire 100 per cent of the equity of Aspen Healthcare for £10 million – its first acquisition of a UK-based healthcare company.
“The acquisition provides NMC a very cost-effective means of introducing its fertility services to the UK,” the group said on Monday in a statement to the London Stock Exchange.
NMC Health acquired Aspen Healthcare from New York Stock Exchange-listed Tenet Healthcare Corporation. Under the deal, which is yet to complete, NMC will acquire Aspen’s network of nine facilities in the UK, including four hospitals, three of which are in Greater London and one in Edinburgh, as well as clinics elsewhere in the UK.
NMC Health stock jumps as earnings rise and group looks to Saudi Arabia
NMC Health stock jumps as earnings rise and group looks to Saudi Arabia:
The UAE-based private health care operator NMC Health is looking to further expand into Saudi Arabia, buoyed by strong revenue growth and strategic acquisitions made in the first half of the year.
The company reported on Monday a 20.2 percent increase in revenue in the first six months of the year, to reach $932 million. Healthcare revenues alone rose by 25.8 percent to $706 million. Net profit also rose to $116.7 million, a 19.3 percent increase on the same time period the year before.
The stock was up more than 3 percent in early afternoon trade in London.
The UAE-based private health care operator NMC Health is looking to further expand into Saudi Arabia, buoyed by strong revenue growth and strategic acquisitions made in the first half of the year.
The company reported on Monday a 20.2 percent increase in revenue in the first six months of the year, to reach $932 million. Healthcare revenues alone rose by 25.8 percent to $706 million. Net profit also rose to $116.7 million, a 19.3 percent increase on the same time period the year before.
The stock was up more than 3 percent in early afternoon trade in London.
This Is the Tesla Rival That’s Wooing the Saudis - Bloomberg
This Is the Tesla Rival That’s Wooing the Saudis - Bloomberg:
It’s an electric-car maker. It’s in the news. No, it’s not Tesla Inc.
Lucid Motors, a startup co-founded 11 years ago by a Silicon Valley veteran, is in the spotlight following news reports over the weekend that Saudi Arabia’s sovereign wealth fund would be willing to invest $1 billion in it, possibly as an alternative to playing a key role in taking Tesla private.
Regardless of what the Saudi Public Investment Fund does with Tesla, its $250 billion war chest could get Lucid’s Air electric car into production.
It’s an electric-car maker. It’s in the news. No, it’s not Tesla Inc.
Lucid Motors, a startup co-founded 11 years ago by a Silicon Valley veteran, is in the spotlight following news reports over the weekend that Saudi Arabia’s sovereign wealth fund would be willing to invest $1 billion in it, possibly as an alternative to playing a key role in taking Tesla private.
Regardless of what the Saudi Public Investment Fund does with Tesla, its $250 billion war chest could get Lucid’s Air electric car into production.