Oil Falls Below $75 in London After Saudis Pledge to Boost Supply - Bloomberg:
Crude fell after Saudi Arabia and Russia signaled an impending production increase by OPEC and allied nations will be larger than some estimated. Futures slid 1.1 percent in London on Monday. Oil chiefs from the world’s top two crude exporters indicated that last week’s 24-nation accord will add 1 million barrels to daily supplies, more than the 700,000-barrel figure cited by several cartel members. Meanwhile, U.S. crude futures for prompt delivery fell less than other contracts amid concern supplies may tighten at a key American storage complex in Oklahoma. “It’s really just the OPEC volumes coming to market pressuring” prices, said Michael Loewen, a commodities strategist at Scotiabank in Toronto.
Monday, 25 June 2018
Saudi Aramco CEO says has 2 million barrels per day of spare capacity | Reuters
Saudi Aramco CEO says has 2 million barrels per day of spare capacity | Reuters:
Oil giant Saudi Aramco has spare capacity of 2 million barrels per day (bpd) and can meet additional oil demand in case of any interruption in supplies, the company head said on Monday, days after OPEC agreed a modest increase in oil output from July.
Aramco, the world’s third-largest crude oil producer, is producing about 10 million bpd and has the capacity to produce 12 million bpd, Amin Nasser, the company’s chief executive, said on the sidelines of a conference in New Delhi.
The Organization of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, and non-OPEC producers including Russia agreed over the last few days on a modest increase in oil production from July, following calls from major consumers to curb rising fuel costs.
Oil giant Saudi Aramco has spare capacity of 2 million barrels per day (bpd) and can meet additional oil demand in case of any interruption in supplies, the company head said on Monday, days after OPEC agreed a modest increase in oil output from July.
Aramco, the world’s third-largest crude oil producer, is producing about 10 million bpd and has the capacity to produce 12 million bpd, Amin Nasser, the company’s chief executive, said on the sidelines of a conference in New Delhi.
The Organization of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, and non-OPEC producers including Russia agreed over the last few days on a modest increase in oil production from July, following calls from major consumers to curb rising fuel costs.
Amid Arab boycott, Qatar's new friends find rich openings | Reuters
Amid Arab boycott, Qatar's new friends find rich openings | Reuters:
Six months ago Serkan Ucar arrived in Doha to scope out business opportunities - away from his usual patch. The mission looks set to pay off handsomely, as the Turkish entrepreneur expects to win a first contract to help build an iconic 2022 World Cup stadium.
Since several Arab countries launched an economic boycott of Qatar a year ago, the tiny Gulf state has had to find alternative partners for trade and investment. Aided by its massive natural gas wealth, it has rapidly made new friends.
A year ago Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut transport and trade links with Doha, accusing it of backing terrorism - a charge it strongly denies.
Six months ago Serkan Ucar arrived in Doha to scope out business opportunities - away from his usual patch. The mission looks set to pay off handsomely, as the Turkish entrepreneur expects to win a first contract to help build an iconic 2022 World Cup stadium.
Since several Arab countries launched an economic boycott of Qatar a year ago, the tiny Gulf state has had to find alternative partners for trade and investment. Aided by its massive natural gas wealth, it has rapidly made new friends.
A year ago Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut transport and trade links with Doha, accusing it of backing terrorism - a charge it strongly denies.
India plans to participate in oil block auctions in UAE, says oil minister | Reuters
India plans to participate in oil block auctions in UAE, says oil minister | Reuters:
India is in talks with some UAE-based companies to jointly bid for oil blocks in UAE, India’s oil minister said on Monday.
“We are in talks that India could bid in the next licensing round of UAE with some Middle Eastern nation companies like Mubadala,” Dharmendra Pradhan, India’s oil minister said.
“Oil producers don’t want to miss India’s bus,” Pradhan said referring to India’s enhanced role in global markets.
India is in talks with some UAE-based companies to jointly bid for oil blocks in UAE, India’s oil minister said on Monday.
“We are in talks that India could bid in the next licensing round of UAE with some Middle Eastern nation companies like Mubadala,” Dharmendra Pradhan, India’s oil minister said.
“Oil producers don’t want to miss India’s bus,” Pradhan said referring to India’s enhanced role in global markets.
MIDEAST DEBT-Bahrain bond-sukuk spread balloons as investors disagree on credit outlook | Reuters
MIDEAST DEBT-Bahrain bond-sukuk spread balloons as investors disagree on credit outlook | Reuters:
The price gap between Bahrain’s U.S. dollar conventional and Islamic bonds has widened to record levels, indicating a sharp disagreement between global investors and regional institutions over the country’s ability to avoid a funding crunch. Bahrain’s international sukuk have traditionally yielded less than its conventional paper. But that gap has ballooned in the past few months, suggesting European and U.S. investors - who focus on the conventional bonds - have been dumping the debt while Islamic investors, who are mostly from the Gulf region, have largely maintained their exposure. A huge budget deficit relative to the small size of its economy, and delays in fiscal reforms, have increasingly forced Bahrain to rely on international debt markets since oil prices slumped in 2014.
The price gap between Bahrain’s U.S. dollar conventional and Islamic bonds has widened to record levels, indicating a sharp disagreement between global investors and regional institutions over the country’s ability to avoid a funding crunch. Bahrain’s international sukuk have traditionally yielded less than its conventional paper. But that gap has ballooned in the past few months, suggesting European and U.S. investors - who focus on the conventional bonds - have been dumping the debt while Islamic investors, who are mostly from the Gulf region, have largely maintained their exposure. A huge budget deficit relative to the small size of its economy, and delays in fiscal reforms, have increasingly forced Bahrain to rely on international debt markets since oil prices slumped in 2014.
MIDEAST STOCKS-Dubai hits lowest since Jan 2016 on DSI, Saudi loses momentum | Reuters
MIDEAST STOCKS-Dubai hits lowest since Jan 2016 on DSI, Saudi loses momentum | Reuters:
Dubai stocks slumped on Monday to its lowest since January 2016, led by losses in contractor Drake & Scull, while Saudi stocks slipped after gains ahead of index compiler MSCI’s move to lift Riyadh to its emerging markets benchmark. Drake & Scull shares fell ten percent to close at 0.9 dirhams on retail selling after it fell below a key support level of one dirham. Concerns about Drake & Scull’s business outlook and ongoing investigations against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Dubai stocks slumped on Monday to its lowest since January 2016, led by losses in contractor Drake & Scull, while Saudi stocks slipped after gains ahead of index compiler MSCI’s move to lift Riyadh to its emerging markets benchmark. Drake & Scull shares fell ten percent to close at 0.9 dirhams on retail selling after it fell below a key support level of one dirham. Concerns about Drake & Scull’s business outlook and ongoing investigations against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Russia-Saudi oil cooperation to bring stability to markets - RDIF's Dmitriev | ZAWYA MENA Edition
Russia-Saudi oil cooperation to bring stability to markets - RDIF's Dmitriev | ZAWYA MENA Edition:
The joint deal by OPEC and other oil-producing allies to raise output demonstrates the strength of the Russia-Saudi energy alliance, which will help stabilise the market for many years to come, the head of Russia's sovereign wealth fund said on Monday.
The Organization of the Petroleum Exporting Countries and other top crude producers agreed to raise output from July by about 1 million barrels per day (bpd), after Saudi Arabia persuaded arch-rival Iran to cooperate.
Ahead of OPEC's Vienna meeting, Saudi Arabia and Russia, the world's top oil producers, said they had a general consensus that the OPEC+ format should be "institutionalised" and extended until 2019 and beyond to monitor the market and change output if needed.
The joint deal by OPEC and other oil-producing allies to raise output demonstrates the strength of the Russia-Saudi energy alliance, which will help stabilise the market for many years to come, the head of Russia's sovereign wealth fund said on Monday.
The Organization of the Petroleum Exporting Countries and other top crude producers agreed to raise output from July by about 1 million barrels per day (bpd), after Saudi Arabia persuaded arch-rival Iran to cooperate.
Ahead of OPEC's Vienna meeting, Saudi Arabia and Russia, the world's top oil producers, said they had a general consensus that the OPEC+ format should be "institutionalised" and extended until 2019 and beyond to monitor the market and change output if needed.
Co-CEOs of Abraaj investment management business resign from board | ZAWYA MENA Edition
Co-CEOs of Abraaj investment management business resign from board | ZAWYA MENA Edition:
The co-chief executives of Abraaj Investment Management Ltd (AIML) are stepping down from the board of the unit, days after the Dubai-based firm agreed to sell the bulk of the business to Colony Capital.
This is the latest shakeup at Abraaj, the Middle East and Africa's largest private equity firm, which has been bruised by a dispute with some of its investors over the use of their money in a $1 billion healthcare fund.
The group has denied it misused the funds.
The co-chief executives of Abraaj Investment Management Ltd (AIML) are stepping down from the board of the unit, days after the Dubai-based firm agreed to sell the bulk of the business to Colony Capital.
This is the latest shakeup at Abraaj, the Middle East and Africa's largest private equity firm, which has been bruised by a dispute with some of its investors over the use of their money in a $1 billion healthcare fund.
The group has denied it misused the funds.
Dubai’s Abraaj Sells Middlesex Campus to Amanat for $100 Million - Bloomberg
Dubai’s Abraaj Sells Middlesex Campus to Amanat for $100 Million - Bloomberg:
Abraaj Group, the buyout fund that’s undergoing a court-supervised restructuring, reached an agreement to sell its stake in Middlesex University’s Dubai campus to Amanat Holdings PJSC for about $100 million, people with knowledge of the matter said.
An initial agreement has been signed and the deal is yet to close, the people said, asking not to be identified because the information is private. Dubai-based Amanat would own all of the U.K.-based university’s campus, which had annual revenue of about $40 million, one of the people said. Spokespeople for Dubai-based Abraaj and Amanat declined to comment.
Amanat shares climbed as much as 3.9 percent in Dubai, before paring gains to 1.6 percent at 11:30 a.m. The shares were poised for their biggest increase in more than a month. Dubai’s main stock gauge declined as much as 1.2 percent.
Abraaj Group, the buyout fund that’s undergoing a court-supervised restructuring, reached an agreement to sell its stake in Middlesex University’s Dubai campus to Amanat Holdings PJSC for about $100 million, people with knowledge of the matter said.
An initial agreement has been signed and the deal is yet to close, the people said, asking not to be identified because the information is private. Dubai-based Amanat would own all of the U.K.-based university’s campus, which had annual revenue of about $40 million, one of the people said. Spokespeople for Dubai-based Abraaj and Amanat declined to comment.
Amanat shares climbed as much as 3.9 percent in Dubai, before paring gains to 1.6 percent at 11:30 a.m. The shares were poised for their biggest increase in more than a month. Dubai’s main stock gauge declined as much as 1.2 percent.
Future of Big Oil Increasingly Shaped by the Fate of Global Gas - Bloomberg
Future of Big Oil Increasingly Shaped by the Fate of Global Gas - Bloomberg:
Big Oil’s fortunes are becoming tied more closely to natural gas than ever before.
Majors including Royal Dutch Shell Plc and BP Plc have boosted their proportion of gas output in recent years, helping them trim Exxon Mobil Corp.’s lead as the world’s most valuable oil company. Meanwhile Chevron Corp. added two giant Australian liquefied natural gas projects and Exxon is punching back with two major projects of its own, in Papua New Guinea and Mozambique.
Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward.
Big Oil’s fortunes are becoming tied more closely to natural gas than ever before.
Majors including Royal Dutch Shell Plc and BP Plc have boosted their proportion of gas output in recent years, helping them trim Exxon Mobil Corp.’s lead as the world’s most valuable oil company. Meanwhile Chevron Corp. added two giant Australian liquefied natural gas projects and Exxon is punching back with two major projects of its own, in Papua New Guinea and Mozambique.
Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward.
Fresh-Out-on-Bail Jeweler Vows to Revive Empire - Bloomberg
Fresh-Out-on-Bail Jeweler Vows to Revive Empire - Bloomberg:
Shares of Atlas Jewellery India Ltd. are set for their biggest monthly gain this year as investors bet on a quick resolution of its financial troubles now that the founder is out of prison.
M.M. Ramachandran was released on bail in June more than two years after a Dubai court sentenced him to three years for defaulting on loans. He said the company has paid off part of the money owed to a consortium of banks by selling some assets in Oman.
At a time when Indian authorities are seeking to bring to book absconding jeweler Nirav Modi for allegedly masterminding a $2 billion bank fraud, investors are cheering the release of Ramachandran on hopes he may hasten debt repayment. Shares of the company surged as much as 88 percent in June to a three-year high before paring the advance to 26 percent as of Monday.
Shares of Atlas Jewellery India Ltd. are set for their biggest monthly gain this year as investors bet on a quick resolution of its financial troubles now that the founder is out of prison.
M.M. Ramachandran was released on bail in June more than two years after a Dubai court sentenced him to three years for defaulting on loans. He said the company has paid off part of the money owed to a consortium of banks by selling some assets in Oman.
At a time when Indian authorities are seeking to bring to book absconding jeweler Nirav Modi for allegedly masterminding a $2 billion bank fraud, investors are cheering the release of Ramachandran on hopes he may hasten debt repayment. Shares of the company surged as much as 88 percent in June to a three-year high before paring the advance to 26 percent as of Monday.
Oddity in Bahrain Bonds a Sign Faith in Gulf Aid Not Enough - Bloomberg
Oddity in Bahrain Bonds a Sign Faith in Gulf Aid Not Enough - Bloomberg:
There’s an anomaly forming in Bahrain’s debt market.
The yield on the island kingdom’s dollar bonds maturing July 2022 is about 150 basis points higher than Islamic securities due two years later, according to data compiled by Bloomberg. That’s unusual because longer-dated notes typically have higher yields.
The reason is that demand for the nation’s conventional bonds has waned from investors who were once satisfied with the implicit support Bahrain received from its Gulf allies. Meanwhile, a slowdown in Islamic debt sales has kept demand for Bahrain’s sukuk buoyant by Shariah-compliant investors, who usually buy and hold the notes till maturity.
There’s an anomaly forming in Bahrain’s debt market.
The yield on the island kingdom’s dollar bonds maturing July 2022 is about 150 basis points higher than Islamic securities due two years later, according to data compiled by Bloomberg. That’s unusual because longer-dated notes typically have higher yields.
The reason is that demand for the nation’s conventional bonds has waned from investors who were once satisfied with the implicit support Bahrain received from its Gulf allies. Meanwhile, a slowdown in Islamic debt sales has kept demand for Bahrain’s sukuk buoyant by Shariah-compliant investors, who usually buy and hold the notes till maturity.
MIDEAST STOCKS-Dubai dragged down by DSI, Saudi flat after recent gains | ZAWYA MENA Edition
MIDEAST STOCKS-Dubai dragged down by DSI, Saudi flat after recent gains | ZAWYA MENA Edition:
Dubai stocks fell more than one percent in early trade on Monday, led by losses in contractor Drake & Scull, while Saudi stocks were flat after gains ahead of index compiler MSCI's move to lift Riyadh to its emerging markets benchmark.
Drake & Scull shares were down nine percent at 0.910 dirhams ($0.2478) in morning trade on retail selling after it fell below a key support level of one dirham.
Concerns about Drake & Scull's business outlook and ongoing investigation against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Dubai stocks fell more than one percent in early trade on Monday, led by losses in contractor Drake & Scull, while Saudi stocks were flat after gains ahead of index compiler MSCI's move to lift Riyadh to its emerging markets benchmark.
Drake & Scull shares were down nine percent at 0.910 dirhams ($0.2478) in morning trade on retail selling after it fell below a key support level of one dirham.
Concerns about Drake & Scull's business outlook and ongoing investigation against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Saudi Aramco eyes presence in India's entire energy sector, says CEO | Reuters
Saudi Aramco eyes presence in India's entire energy sector, says CEO | Reuters:
Saudi Arabian state-owned oil company Saudi Aramco wants to be present in the entire “value chain” of India’s energy sector, its Chief Executive Officer Amin Nasser said on Monday in New Delhi.
The company did not spell out specifics of the plan but indicated that fuel marketing is one of them.
The company is looking at “all options” to enter fuel retailing through partnerships with Indian oil companies, Nasser said.
Saudi Arabian state-owned oil company Saudi Aramco wants to be present in the entire “value chain” of India’s energy sector, its Chief Executive Officer Amin Nasser said on Monday in New Delhi.
The company did not spell out specifics of the plan but indicated that fuel marketing is one of them.
The company is looking at “all options” to enter fuel retailing through partnerships with Indian oil companies, Nasser said.
Malaysia arrests Najib ex-aide in 1MDB probe: media | Reuters
Malaysia arrests Najib ex-aide in 1MDB probe: media | Reuters:
Malaysian authorities have made the first arrest in a renewed probe into the multi-billion dollar scandal at state fund 1MDB, remanding a former aide of ousted prime minister Najib Razak to assist in investigations, Bernama news reported on Monday.
Malaysia’s new government led by the 92-year-old Mahathir Mohamad reopened investigations into billions of dollars allegedly siphoned out of 1Malaysia Development Berhad (1MDB)after Najib’s administration lost a general election in May, fuelled by anger over the scandal and rising living costs.
On Monday, a magistrate’s court granted an application by anti-graft officials to remand Najib’s former aide for a week to assist in their investigations into 1MDB, according to a report by national newswire Bernama.
Malaysian authorities have made the first arrest in a renewed probe into the multi-billion dollar scandal at state fund 1MDB, remanding a former aide of ousted prime minister Najib Razak to assist in investigations, Bernama news reported on Monday.
Malaysia’s new government led by the 92-year-old Mahathir Mohamad reopened investigations into billions of dollars allegedly siphoned out of 1Malaysia Development Berhad (1MDB)after Najib’s administration lost a general election in May, fuelled by anger over the scandal and rising living costs.
On Monday, a magistrate’s court granted an application by anti-graft officials to remand Najib’s former aide for a week to assist in their investigations into 1MDB, according to a report by national newswire Bernama.
Oil prices drop on OPEC's output deal, but markets to stay tight | Reuters
Oil prices drop on OPEC's output deal, but markets to stay tight | Reuters:
Oil prices fell on Monday as traders factored in an expected 1 million barrels per day (bpd) output increase in the wake of an Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna last week.
Despite this, analysts said global oil markets would likely remain relatively tight this year.
Brent crude futures LCOc1 were at $74.25 per barrel at 0636 GMT, down 1.7 percent from their last close.
Oil prices fell on Monday as traders factored in an expected 1 million barrels per day (bpd) output increase in the wake of an Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna last week.
Despite this, analysts said global oil markets would likely remain relatively tight this year.
Brent crude futures LCOc1 were at $74.25 per barrel at 0636 GMT, down 1.7 percent from their last close.
Western business schools push into Iran | Financial Times
Western business schools push into Iran | Financial Times:
As the daughter of a company founder, Solmaz Mohammadlou had long harboured ambitions to establish her own business. Shortly after joining her father’s manufacturing company, the 34-year-old chemistry graduate looked for a masters degree that would give her the confidence and technical skills she needed.
However, as an Iranian living in Tehran, Ms Mohammadlou’s business school options were limited. So she signed up for a part-time executive MBA course run by France’s Neoma Business School. The course opened last year.
Now she flies to Paris every month to spend three days attending lectures on campus. Between French visits, she has teaching sessions in Tehran.
As the daughter of a company founder, Solmaz Mohammadlou had long harboured ambitions to establish her own business. Shortly after joining her father’s manufacturing company, the 34-year-old chemistry graduate looked for a masters degree that would give her the confidence and technical skills she needed.
However, as an Iranian living in Tehran, Ms Mohammadlou’s business school options were limited. So she signed up for a part-time executive MBA course run by France’s Neoma Business School. The course opened last year.
Now she flies to Paris every month to spend three days attending lectures on campus. Between French visits, she has teaching sessions in Tehran.
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