Shale’s big boost comes with newfound thrift as oil hits $70:
"The shale boom’s back in full swing, with fracking crews the busiest since 2014. The novelty this time around: Oil executives stressing their prudence, along with their production. The combination of surging output, oil prices at three-year highs and spending under control means that the shale patch – which has notoriously burnt more cash than it makes as investors bankroll their expansion – got closer to a milestone in the first-quarter: Positive free cash flow. As oil rises above $70 a barrel, the outlook for the coming quarters looks even brighter. It’s a shift that came with the help of new high-tech well systems, and at the insistence of investors pushing payback over growth. Here are five key takeaways from the first quarter to track moving forward: Production is thriving EOG Resources Inc and Pioneer Natural Resources Co are among producers that posted record output, while keeping capital expenditures in check."
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Sunday, 13 May 2018
Mideast Bond Saga Set to End as Dana Reaches Deal With Creditors - Bloomberg
Mideast Bond Saga Set to End as Dana Reaches Deal With Creditors - Bloomberg:
"Almost a year of claims, counterclaims and litigation is beginning to wind down for Dana Gas PJSC bondholders, including BlackRock Inc. and Goldman Sachs Group Inc. The Sharjah, United Arab Emirates-based energy company reached a deal with its key bondholders on restructuring $700 million of sukuk, avoiding protracted litigation in two jurisdictions and ending a dispute that fixated the Islamic finance industry. A committee representing bondholders agreed on terms that offer two options to creditors, including one involving full repayment, the company said Sunday. Dana Gas and creditors also entered into an agreement to dismiss all pending litigation."
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"Almost a year of claims, counterclaims and litigation is beginning to wind down for Dana Gas PJSC bondholders, including BlackRock Inc. and Goldman Sachs Group Inc. The Sharjah, United Arab Emirates-based energy company reached a deal with its key bondholders on restructuring $700 million of sukuk, avoiding protracted litigation in two jurisdictions and ending a dispute that fixated the Islamic finance industry. A committee representing bondholders agreed on terms that offer two options to creditors, including one involving full repayment, the company said Sunday. Dana Gas and creditors also entered into an agreement to dismiss all pending litigation."
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Bolton Warns Sanctions Possible for Doing Business With Iran - Bloomberg
Bolton Warns Sanctions Possible for Doing Business With Iran - Bloomberg:
"European countries and companies that continue to do business with Iran could face U.S. sanctions, National Security Adviser John Bolton said Sunday.
Part of the flaw with the Iran deal that President Donald Trump rejected was it enticed Europe and the U.S. into economic relations with Iran that would work against holding the country accountable for violations of the agreement, Bolton said.
“Why would any business, why would the shareholders of any business, want to do business with the world’s central banker of international terrorism?” Bolton said on ABC’s “This Week.”"
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"European countries and companies that continue to do business with Iran could face U.S. sanctions, National Security Adviser John Bolton said Sunday.
Part of the flaw with the Iran deal that President Donald Trump rejected was it enticed Europe and the U.S. into economic relations with Iran that would work against holding the country accountable for violations of the agreement, Bolton said.
“Why would any business, why would the shareholders of any business, want to do business with the world’s central banker of international terrorism?” Bolton said on ABC’s “This Week.”"
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Goldman Eyes Multibillion Dollar Deal to Fuel Saudi Expansion - Bloomberg
Goldman Eyes Multibillion Dollar Deal to Fuel Saudi Expansion - Bloomberg:
"Goldman Sachs Group Inc. has approached a Saudi state-owned entity about a multibillion-dollar deal, according to the bank’s chief executive officer for the Middle East and North Africa. “We’re very keen on deploying our principal capital in the region in both forms: credit and equity capital,” Wassim Younan said in an interview in Riyadh. “We continue to prospect for opportunities to do so, and we’ve put forward at least one meaningful, multibillion-dollar proposal to a state-owned enterprise.” Younan declined to name the enterprise or to be more specific about the type of deal. He said the bank is waiting for a response."
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"Goldman Sachs Group Inc. has approached a Saudi state-owned entity about a multibillion-dollar deal, according to the bank’s chief executive officer for the Middle East and North Africa. “We’re very keen on deploying our principal capital in the region in both forms: credit and equity capital,” Wassim Younan said in an interview in Riyadh. “We continue to prospect for opportunities to do so, and we’ve put forward at least one meaningful, multibillion-dollar proposal to a state-owned enterprise.” Younan declined to name the enterprise or to be more specific about the type of deal. He said the bank is waiting for a response."
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Bahrain central bank foreign assets hit seven-month low in March
Bahrain central bank foreign assets hit seven-month low in March:
"Foreign assets at Bahrain’s central bank dropped to a seven-month low in March, the bank said on Sunday, depleted by a current account deficit caused by low oil prices in recent years. The assets, which give an indication of Bahrain’s ability to defend its currency against any market pressure, fell to 533.2 million dinars ($1.41 billion) from 604.8 million dinars the previous month."
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"Foreign assets at Bahrain’s central bank dropped to a seven-month low in March, the bank said on Sunday, depleted by a current account deficit caused by low oil prices in recent years. The assets, which give an indication of Bahrain’s ability to defend its currency against any market pressure, fell to 533.2 million dinars ($1.41 billion) from 604.8 million dinars the previous month."
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UAE expects next OPEC meeting to focus on inventory not sanctions | Reuters
UAE expects next OPEC meeting to focus on inventory not sanctions | Reuters:
"OPEC is more focused on identifying the right level of oil inventory at its next meeting than the impact on supplies of new U.S. sanctions on Iran, the United Arab Emirates said.
President Donald Trump said last week that the United States was exiting an international nuclear deal with Iran and would impose new sanctions on OPEC’s third-largest producer.
Asked on Sunday about oil supply worries as a result of the sanctions UAE energy minister Suhail bin Mohammed al-Mazroui told reporters: “That’s not what we are concerned about now”. "
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"OPEC is more focused on identifying the right level of oil inventory at its next meeting than the impact on supplies of new U.S. sanctions on Iran, the United Arab Emirates said.
President Donald Trump said last week that the United States was exiting an international nuclear deal with Iran and would impose new sanctions on OPEC’s third-largest producer.
Asked on Sunday about oil supply worries as a result of the sanctions UAE energy minister Suhail bin Mohammed al-Mazroui told reporters: “That’s not what we are concerned about now”. "
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Geopolitics turn foreign investors net sellers of Saudi stocks last week | Reuters
Geopolitics turn foreign investors net sellers of Saudi stocks last week | Reuters:
"Foreign investors were net sellers of Saudi Arabian equities last week partly because of rising geopolitical tension, exchange data showed on Sunday. In the week through last Thursday, foreigners sold about $33 million of stocks on a net basis. They bought $295 million and sold $327 million; it was only the second week this year that foreigners were net sellers. Foreign portfolio funds have been flooding into Saudi Arabia before Riyadh’s expected inclusion in global emerging market indexes next year. Year-to-date, foreigners are net buyers of stocks to the tune of $2.7 biillion."
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"Foreign investors were net sellers of Saudi Arabian equities last week partly because of rising geopolitical tension, exchange data showed on Sunday. In the week through last Thursday, foreigners sold about $33 million of stocks on a net basis. They bought $295 million and sold $327 million; it was only the second week this year that foreigners were net sellers. Foreign portfolio funds have been flooding into Saudi Arabia before Riyadh’s expected inclusion in global emerging market indexes next year. Year-to-date, foreigners are net buyers of stocks to the tune of $2.7 biillion."
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MIDEAST STOCKS-Blue chips help Saudi stocks lead regional gains | Reuters
MIDEAST STOCKS-Blue chips help Saudi stocks lead regional gains | Reuters:
"Saudi Arabia’s stock market led regional gains on Sunday as investors piled back into blue-chip stocks, while a slight retreat in oil prices from multi-year highs did little to deter buyers elsewhere in the Gulf. The Saudi index closed 1.4 percent higher, with Al Rajhi Bank - the kingdom’s second largest bank by assets and one of the main beneficiaries of a huge inflow of foreign money this year - climbing 1.5 percent. The largest, National Commercial Bank, climbed 3.0 percent. The other big gainer was the biggest petrochemical producer, Saudi Basic Industries, which added 1.6 percent."
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"Saudi Arabia’s stock market led regional gains on Sunday as investors piled back into blue-chip stocks, while a slight retreat in oil prices from multi-year highs did little to deter buyers elsewhere in the Gulf. The Saudi index closed 1.4 percent higher, with Al Rajhi Bank - the kingdom’s second largest bank by assets and one of the main beneficiaries of a huge inflow of foreign money this year - climbing 1.5 percent. The largest, National Commercial Bank, climbed 3.0 percent. The other big gainer was the biggest petrochemical producer, Saudi Basic Industries, which added 1.6 percent."
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A look behind Dubai’s Nakheel Chairman Ali Rashid Lootah’s ‘instrumental’ vision
A look behind Dubai’s Nakheel Chairman Ali Rashid Lootah’s ‘instrumental’ vision:
"Ali Rashid Lootah has a reputation for being a tough businessman. He has certainly led Nakheel through the toughest of times. But nine years on from a crisis that threatened to send the Palm Islands developer to oblivion, the company has quietly built up a retail empire that will soon cover 17 million square feet of leasable area across the city. Nakheel was arguably more instrumental than any other company in awakening the world to the ambition and drive of a small trading sheikhdom called Dubai."
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"Ali Rashid Lootah has a reputation for being a tough businessman. He has certainly led Nakheel through the toughest of times. But nine years on from a crisis that threatened to send the Palm Islands developer to oblivion, the company has quietly built up a retail empire that will soon cover 17 million square feet of leasable area across the city. Nakheel was arguably more instrumental than any other company in awakening the world to the ambition and drive of a small trading sheikhdom called Dubai."
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Total set to develop natural gas resources in Oman - The Peninsula Qatar
Total set to develop natural gas resources in Oman - The Peninsula Qatar:
"French energy group Total said on Sunday it had signed a memorandum of understanding with the government of Oman to develop natural gas resources in the Gulf state. "Total and Shell as operator will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25 percent and 75 percent," Total said in a statement. The project is expected to have initial production of around 500 million cubic feet of gas per day, rising to a potential of 1 bcf/d."
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"French energy group Total said on Sunday it had signed a memorandum of understanding with the government of Oman to develop natural gas resources in the Gulf state. "Total and Shell as operator will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25 percent and 75 percent," Total said in a statement. The project is expected to have initial production of around 500 million cubic feet of gas per day, rising to a potential of 1 bcf/d."
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Qatar-US trade volume witnesses double-digit growth - The Peninsula Qatar
Qatar-US trade volume witnesses double-digit growth - The Peninsula Qatar:
"The bilateral trade volume in goods between Qatar and the US witnessed a double-digit growth (year-on-year) in first quarter of this year (Q1, 2018) compared to the corresponding period last year. The combined value of goods exchanged between the two countries reached at QR4.30bn ($1.18bn) in Q1, 2018, registering a sharp jump of nearly 23 percent compared to QR3.49bn ($961m) in the first three months of the previous year (2017), latest official data released by the US Department of Commerce show. The balance of trade in goods between Qatar and the US in Q1, 2018 stood at QR1.21bn ($333m), which also saw double-digit growth of 16.64 percent compared to QR1.04bn ($285.5m) for the same period in 2017. The trade balance between the two countries continued to be in favour of the US—the world’s largest economy, according to statistics available on US Census Bureau’s official website."
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"The bilateral trade volume in goods between Qatar and the US witnessed a double-digit growth (year-on-year) in first quarter of this year (Q1, 2018) compared to the corresponding period last year. The combined value of goods exchanged between the two countries reached at QR4.30bn ($1.18bn) in Q1, 2018, registering a sharp jump of nearly 23 percent compared to QR3.49bn ($961m) in the first three months of the previous year (2017), latest official data released by the US Department of Commerce show. The balance of trade in goods between Qatar and the US in Q1, 2018 stood at QR1.21bn ($333m), which also saw double-digit growth of 16.64 percent compared to QR1.04bn ($285.5m) for the same period in 2017. The trade balance between the two countries continued to be in favour of the US—the world’s largest economy, according to statistics available on US Census Bureau’s official website."
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Weekly Market Report
Weekly Market Report:
"The Qatar Stock Exchange (QSE) index decreased 56.11 points, or 0.64%, during the trading week to close at 8,749.65. Market capitalisation decreased by 1.25% to QR482.4bn versus QR488.5bn at the end of the previous trading week. Of the 45 listed companies, 15 ended the week higher, while 27 declined and three remained unchanged. Dlala Brokerage & Investments Holding Co (DBIS) was the best performing stock for the week with a gain of 20.9% on 3.0mn shares traded. On the other hand, Aamal Holding (AHCS) was the worst performing stock with a decline of 7.2% on 478k shares traded. QNB Group (QNBK), Qatar Islamic Bank (QIBK) and Barwa Real Estate (BRES) were the primary contributors to the weekly index declines. QNBK was the biggest contributor to the index’s decrease, deleting 42.4 points from the index. QIBK was the second biggest contributor to the mentioned losses, shaving off 18.5 points off the index. Moreover, BRES removed 10.1 points from the index. However, Vodafone Qatar (VFQS) added 12.9 points to the index."
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"The Qatar Stock Exchange (QSE) index decreased 56.11 points, or 0.64%, during the trading week to close at 8,749.65. Market capitalisation decreased by 1.25% to QR482.4bn versus QR488.5bn at the end of the previous trading week. Of the 45 listed companies, 15 ended the week higher, while 27 declined and three remained unchanged. Dlala Brokerage & Investments Holding Co (DBIS) was the best performing stock for the week with a gain of 20.9% on 3.0mn shares traded. On the other hand, Aamal Holding (AHCS) was the worst performing stock with a decline of 7.2% on 478k shares traded. QNB Group (QNBK), Qatar Islamic Bank (QIBK) and Barwa Real Estate (BRES) were the primary contributors to the weekly index declines. QNBK was the biggest contributor to the index’s decrease, deleting 42.4 points from the index. QIBK was the second biggest contributor to the mentioned losses, shaving off 18.5 points off the index. Moreover, BRES removed 10.1 points from the index. However, Vodafone Qatar (VFQS) added 12.9 points to the index."
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Debt Paradox Means Russia Borrows More Even as Oil Prices Rally - Bloomberg
Debt Paradox Means Russia Borrows More Even as Oil Prices Rally - Bloomberg:
"Oil prices near the highest level in over three years are driving the world’s biggest energy exporter deeper into debt.
While Russia stands to reap a windfall from crude’s recent rally, with the budget now on track for its first surplus since 2011, a program of foreign-currency purchases by the Finance Ministry means that it needs more rubles to conduct the operations when the exchange rate appreciates thanks to higher oil prices.
Instead of quenching the government’s financing needs, the result is that borrowing in rubles will actually rise close to last year’s record level to absorb the extra dollars in line with the so-called budget rule."
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"Oil prices near the highest level in over three years are driving the world’s biggest energy exporter deeper into debt.
While Russia stands to reap a windfall from crude’s recent rally, with the budget now on track for its first surplus since 2011, a program of foreign-currency purchases by the Finance Ministry means that it needs more rubles to conduct the operations when the exchange rate appreciates thanks to higher oil prices.
Instead of quenching the government’s financing needs, the result is that borrowing in rubles will actually rise close to last year’s record level to absorb the extra dollars in line with the so-called budget rule."
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Abu Dhabi Plans $45 Billion Refining, Petrochemicals Expansion - Bloomberg
Abu Dhabi Plans $45 Billion Refining, Petrochemicals Expansion - Bloomberg:
"Abu Dhabi National Oil Co. plans to invest $45 billion over five years to expand the Ruwais refining and petrochemicals complex.
The state producer known as Adnoc will expand the complex’s refining capacity by more than 65 percent, or 600,000 barrels a day, by 2025, through the addition of a third refinery, Chief Executive Officer Sultan Al Jaber said at an energy conference in Abu Dhabi. The expansion would create a total capacity of 1.5 million barrels a day for Ruwais, he said.
“We are extending an invitation to both existing and new partners to join with us in building a world-leading refining and petrochemicals complex and manufacturing ecosystem here in Ruwais,” he said."
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"Abu Dhabi National Oil Co. plans to invest $45 billion over five years to expand the Ruwais refining and petrochemicals complex.
The state producer known as Adnoc will expand the complex’s refining capacity by more than 65 percent, or 600,000 barrels a day, by 2025, through the addition of a third refinery, Chief Executive Officer Sultan Al Jaber said at an energy conference in Abu Dhabi. The expansion would create a total capacity of 1.5 million barrels a day for Ruwais, he said.
“We are extending an invitation to both existing and new partners to join with us in building a world-leading refining and petrochemicals complex and manufacturing ecosystem here in Ruwais,” he said."
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Rouhani says Iran may remain part of nuclear accord | Reuters
Rouhani says Iran may remain part of nuclear accord | Reuters:
"Iranian President Hassan Rouhani reiterated on Sunday that Tehran would remain committed to its 2015 nuclear deal if its interests can be protected and said the U.S. withdrawal from the accord was a “violation of morals”.
“The U.S. withdrawal ... is a violation of morals, the correct way to carry out politics and diplomacy and against international regulations,” Rouhani during a meeting with visiting Sri Lanka President Maithripala Sirisena.
“If the remaining five countries continue to abide by the agreement, Iran will remain in the deal despite the will of America,” Rouhani said in remarks carried by state television.
"
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"Iranian President Hassan Rouhani reiterated on Sunday that Tehran would remain committed to its 2015 nuclear deal if its interests can be protected and said the U.S. withdrawal from the accord was a “violation of morals”.
“The U.S. withdrawal ... is a violation of morals, the correct way to carry out politics and diplomacy and against international regulations,” Rouhani during a meeting with visiting Sri Lanka President Maithripala Sirisena.
“If the remaining five countries continue to abide by the agreement, Iran will remain in the deal despite the will of America,” Rouhani said in remarks carried by state television.
"
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Exclusive: Mubadala's attempt to sell Swiss unit hits snag - sources | Reuters
Exclusive: Mubadala's attempt to sell Swiss unit hits snag - sources | Reuters:
"Abu Dhabi state investor Mubadala [MUDEV.UL] is struggling to sell its Swiss private bank, five sources told Reuters, as potential buyers are unwilling to pay up for a firm which is being investigated over alleged financial misconduct.
The business, Falcon Private Bank, is under investigation in Switzerland for allegedly failing to prevent suspected money laundering linked to 1MDB, the scandal-hit Malaysian state fund.
A spokesman for Falcon said the bank is cooperating with the Office of the Attorney General (OAG) of Switzerland which opened criminal proceedings against Falcon in 2016. "
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"Abu Dhabi state investor Mubadala [MUDEV.UL] is struggling to sell its Swiss private bank, five sources told Reuters, as potential buyers are unwilling to pay up for a firm which is being investigated over alleged financial misconduct.
The business, Falcon Private Bank, is under investigation in Switzerland for allegedly failing to prevent suspected money laundering linked to 1MDB, the scandal-hit Malaysian state fund.
A spokesman for Falcon said the bank is cooperating with the Office of the Attorney General (OAG) of Switzerland which opened criminal proceedings against Falcon in 2016. "
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UAE's Dana Gas agrees with creditors on $700 mln sukuk restructuring | Reuters
UAE's Dana Gas agrees with creditors on $700 mln sukuk restructuring | Reuters:
"Energy producer Dana Gas reached agreement with creditors on restructuring $700 million of sukuk, the firm said on Sunday, potentially ending a protracted legal battle that unsettled the global Islamic finance industry. The United Arab Emirates firm said in June it would not redeem the Islamic bonds, arguing that changes in Islamic financial practice since they were issued made them invalid under UAE law. This led to months of negotiations and a fight in UAE and British courts. Under the deal with the sukuk holders’ committee, investors who want to exit the instruments will be able to do so at 90.5 cents on the dollar, which includes a bonus of 2.5 cents if they accept within seven days of the start of the tender offer."
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"Energy producer Dana Gas reached agreement with creditors on restructuring $700 million of sukuk, the firm said on Sunday, potentially ending a protracted legal battle that unsettled the global Islamic finance industry. The United Arab Emirates firm said in June it would not redeem the Islamic bonds, arguing that changes in Islamic financial practice since they were issued made them invalid under UAE law. This led to months of negotiations and a fight in UAE and British courts. Under the deal with the sukuk holders’ committee, investors who want to exit the instruments will be able to do so at 90.5 cents on the dollar, which includes a bonus of 2.5 cents if they accept within seven days of the start of the tender offer."
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UAE energy minister says focus on oil inventory at next OPEC meeting | Reuters
UAE energy minister says focus on oil inventory at next OPEC meeting | Reuters:
"OPEC is focused on identifying the right level of oil inventory at its next meeting, United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui said on Sunday.
“What we are concerned about in the next meeting is what is the right level of inventory that we should see and can we put this group together for longer,” he said, speaking on the sidelines of an industry event in Abu Dhabi.
“Don’t worry about supply,” he told reporters when asked about the impact on oil supplies from U.S. sanctions on Iran, adding that this was not the first time an OPEC member had been in such a situation. "
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"OPEC is focused on identifying the right level of oil inventory at its next meeting, United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui said on Sunday.
“What we are concerned about in the next meeting is what is the right level of inventory that we should see and can we put this group together for longer,” he said, speaking on the sidelines of an industry event in Abu Dhabi.
“Don’t worry about supply,” he told reporters when asked about the impact on oil supplies from U.S. sanctions on Iran, adding that this was not the first time an OPEC member had been in such a situation. "
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MIDEAST STOCKS-Saudi Arabian stocks lead regional gains with blue-chip boost | Reuters
MIDEAST STOCKS-Saudi Arabian stocks lead regional gains with blue-chip boost | Reuters:
"Saudi Arabia led gains among largely positive Gulf markets on Sunday, bolstered by a surge in blue-chip stocks. The Saudi index was 1.1 percent higher at 0830 GMT with Al Rajhi Bank, the kingdom’s second largest bank by assets and one of the main beneficiaries of a huge inflow of foreign money this year, rising 1.8 percent. Another gainer was the biggest petrochemical producer, Saudi Basic Industries, which added 1.4 percent."
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"Saudi Arabia led gains among largely positive Gulf markets on Sunday, bolstered by a surge in blue-chip stocks. The Saudi index was 1.1 percent higher at 0830 GMT with Al Rajhi Bank, the kingdom’s second largest bank by assets and one of the main beneficiaries of a huge inflow of foreign money this year, rising 1.8 percent. Another gainer was the biggest petrochemical producer, Saudi Basic Industries, which added 1.4 percent."
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