Trump’s tweet for oil and Saudi Arabia’s OPEC diplomacy | Arab News:
Once again the US President Donald Trump’s penchant for policy-making by Twitter has raised questions regarding clarity. The president tweeted on Saturday about a phone call with King Salman of Saudi Arabia, in which Trump had asked the king to pump an extra 2 million barrels of oil per day because the price of crude was “to (sic) high.” Guess what? “He agreed!” Trump exclaimed. That was not exactly how the Kingdom — nor the White House — recalled the conversation, and the White House later concurred with the view from Riyadh. “King Salman affirmed that the Kingdom maintains a 2 million barrel per day (bpd) spare capacity, which it will prudently use if and when necessary to ensure market balance,” a later statement said.
Monday 2 July 2018
Rising Oil Price Has Gulf Arab Borrowing at Lowest Since 2014 - Bloomberg
Rising Oil Price Has Gulf Arab Borrowing at Lowest Since 2014 - Bloomberg:
Gulf Arab energy companies retreated from debt markets in the first half of 2018 after a banner year for borrowing as higher oil prices curbed financing needs for existing operations and new projects. Oil and gas producers, pipeline operators and refiners in Kuwait, the United Arab Emirates, Saudi Arabia, Oman, Bahrain and Qatar borrowed $6 billion through loans and bonds in the first half of 2018, the slowest start in four years, according to data compiled by Bloomberg. By comparison, U.S. energy companies, driven by resurgent shale production, issued a record $74.3 billion in debt so far in 2018. The diverging debt appetites between the six Arab exporters and U.S. suppliers shows that Gulf Cooperation Council, or GCC, producers are bringing in more cash to finance operations and expansion after crude prices rose 18 percent this year.
Gulf Arab energy companies retreated from debt markets in the first half of 2018 after a banner year for borrowing as higher oil prices curbed financing needs for existing operations and new projects. Oil and gas producers, pipeline operators and refiners in Kuwait, the United Arab Emirates, Saudi Arabia, Oman, Bahrain and Qatar borrowed $6 billion through loans and bonds in the first half of 2018, the slowest start in four years, according to data compiled by Bloomberg. By comparison, U.S. energy companies, driven by resurgent shale production, issued a record $74.3 billion in debt so far in 2018. The diverging debt appetites between the six Arab exporters and U.S. suppliers shows that Gulf Cooperation Council, or GCC, producers are bringing in more cash to finance operations and expansion after crude prices rose 18 percent this year.
Saudi Arabia Names Neom CEO as Adviser to Crown Prince - Bloomberg
Saudi Arabia Names Neom CEO as Adviser to Crown Prince - Bloomberg:
Klaus Kleinfeld, a German executive who ran Siemens AG and Arconic Inc., will take a new role advising Saudi Arabia’s Crown Prince on his reform plans and leave his current position as chief executive officer of a planned mega-project in the kingdom called Neom. Kleinfeld, the CEO of Neom -- a $500 billion new city on Saudi Arabia’s Red Sea coast -- will “take over wider responsibilities to enhance the economic, technological and financial development” of the kingdom as an adviser to Crown Prince Mohammed bin Salman, according to a statement to Bloomberg News on Monday. In the change effective Aug. 1, Kleinfeld will retain a role at Neom as a board member. Nadhmi Al-Nasr, who led the development of Neom Bay, the project’s initial stage, will take over as Neom’s CEO, according to the statement.
Klaus Kleinfeld, a German executive who ran Siemens AG and Arconic Inc., will take a new role advising Saudi Arabia’s Crown Prince on his reform plans and leave his current position as chief executive officer of a planned mega-project in the kingdom called Neom. Kleinfeld, the CEO of Neom -- a $500 billion new city on Saudi Arabia’s Red Sea coast -- will “take over wider responsibilities to enhance the economic, technological and financial development” of the kingdom as an adviser to Crown Prince Mohammed bin Salman, according to a statement to Bloomberg News on Monday. In the change effective Aug. 1, Kleinfeld will retain a role at Neom as a board member. Nadhmi Al-Nasr, who led the development of Neom Bay, the project’s initial stage, will take over as Neom’s CEO, according to the statement.
Etihad Airways-linked bonds face restructuring amid Abu Dhabi silence | ZAWYA MENA Edition
Etihad Airways-linked bonds face restructuring amid Abu Dhabi silence | ZAWYA MENA Edition:
The issuer of $500 million in bonds directly linked to Etihad Airways is looking at restructuring options as Abu Dhabi, which owns the carrier, has not intervened to avoid a default. An Amsterdam-based special purpose vehicle called SPV Equity Alliance Partners (EAP) issued a $700 million bond in 2015 and $500 million bond in 2016 for Etihad and other airlines it partially owned at the time, including Alitalia and Air Berlin. The bonds have been trading at a discount of over 25 points since last year, when Alitalia entered special administration and Air Berlin filed for bankruptcy, but the notes kept afloat because of market expectations of financial backing by Etihad, the borrower of reference under the special purpose vehicle, or by other Abu Dhabi entities.
The issuer of $500 million in bonds directly linked to Etihad Airways is looking at restructuring options as Abu Dhabi, which owns the carrier, has not intervened to avoid a default. An Amsterdam-based special purpose vehicle called SPV Equity Alliance Partners (EAP) issued a $700 million bond in 2015 and $500 million bond in 2016 for Etihad and other airlines it partially owned at the time, including Alitalia and Air Berlin. The bonds have been trading at a discount of over 25 points since last year, when Alitalia entered special administration and Air Berlin filed for bankruptcy, but the notes kept afloat because of market expectations of financial backing by Etihad, the borrower of reference under the special purpose vehicle, or by other Abu Dhabi entities.
COLUMN-White House must choose between tough Iran sanctions and moderate gasoline prices: Kemp | Reuters
COLUMN-White House must choose between tough Iran sanctions and moderate gasoline prices: Kemp | Reuters:
The White House can drive Iran’s oil exports to zero, or it can have moderate U.S. gasoline prices, but it probably cannot have both.
The awkward tension between the administration’s foreign policy priority (tough Iran sanctions) and its electoral calculation (to keep gasoline prices low) explains its increasingly frequent comments about oil prices.
President Donald Trump has already blamed the Organization of the Petroleum Exporting Countries for the sharp rise in prices that has pushed the average cost of U.S. gasoline close to $3 per gallon.
The White House can drive Iran’s oil exports to zero, or it can have moderate U.S. gasoline prices, but it probably cannot have both.
The awkward tension between the administration’s foreign policy priority (tough Iran sanctions) and its electoral calculation (to keep gasoline prices low) explains its increasingly frequent comments about oil prices.
President Donald Trump has already blamed the Organization of the Petroleum Exporting Countries for the sharp rise in prices that has pushed the average cost of U.S. gasoline close to $3 per gallon.
India's Carnival in talks to buy cinemas in UAE, Bahrain - sources | Reuters
India's Carnival in talks to buy cinemas in UAE, Bahrain - sources | Reuters:
India’s Carnival Cinemas and a partner in the United Arab Emirates (UAE) are in talks to buy Qatar-based Novo Cinemas’ theatres in the UAE and Bahrain, three sources familiar with the matter told Reuters. The potential deal highlights moves to separate cross-border businesses in the Gulf following a boycott imposed on Qatar by Saudi Arabia, the UAE, Bahrain and Egypt since June 2017. Carnival Cinemas has been in talks with UAE-based Emirates National Holdings as a potential co-investor, one of the sources said. Carnival operates in 115 cities in India, according to its website.
India’s Carnival Cinemas and a partner in the United Arab Emirates (UAE) are in talks to buy Qatar-based Novo Cinemas’ theatres in the UAE and Bahrain, three sources familiar with the matter told Reuters. The potential deal highlights moves to separate cross-border businesses in the Gulf following a boycott imposed on Qatar by Saudi Arabia, the UAE, Bahrain and Egypt since June 2017. Carnival Cinemas has been in talks with UAE-based Emirates National Holdings as a potential co-investor, one of the sources said. Carnival operates in 115 cities in India, according to its website.
Oil falls as OPEC output rises, more production planned | Reuters
Oil falls as OPEC output rises, more production planned | Reuters:
Oil futures fell Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid escalating trade disputes with the United States.
A flurry of announcements over the weekend unsettled oil markets. Global benchmark Brent fell 2.4 percent in the session, changing direction from last week when it gained more than 5 percent.
Brent crude LCOc1 fell $1.93 to settle at $77.30. U.S. light crude CLc1 fell to settle down 21 cents at $73.94.
Oil futures fell Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid escalating trade disputes with the United States.
A flurry of announcements over the weekend unsettled oil markets. Global benchmark Brent fell 2.4 percent in the session, changing direction from last week when it gained more than 5 percent.
Brent crude LCOc1 fell $1.93 to settle at $77.30. U.S. light crude CLc1 fell to settle down 21 cents at $73.94.
MIDEAST STOCKS-Oil price hit Saudi market, Dubai hurt by property stocks | Reuters
MIDEAST STOCKS-Oil price hit Saudi market, Dubai hurt by property stocks | Reuters:
An oil price slump hit Saudi stocks, the Gulf’s best performing market this year, on Monday while the Dubai exchange gave up its early gains due to renewed selling of property stocks. Oil prices fell following comments from the White House that the leader of Saudi Arabia promised President Donald Trump that he can raise oil production if needed. The Saudi index fell 0.8 percent, with petrochemicals firm SABIC falling 1.6 percent, while refiner Petro Rabigh also dropped 1.6 percent.
An oil price slump hit Saudi stocks, the Gulf’s best performing market this year, on Monday while the Dubai exchange gave up its early gains due to renewed selling of property stocks. Oil prices fell following comments from the White House that the leader of Saudi Arabia promised President Donald Trump that he can raise oil production if needed. The Saudi index fell 0.8 percent, with petrochemicals firm SABIC falling 1.6 percent, while refiner Petro Rabigh also dropped 1.6 percent.
Political upheaval in Libya threatens oil production | Financial Times
Political upheaval in Libya threatens oil production | Financial Times:
Libya’s national oil company has suspended crude loadings at two major oil terminals, which together with a separate port blockade is estimated to trigger a drop in production of 850,000 barrels a day just as global outages have tightened the market and fuelled prices.
The dramatic fall in the country’s output, equivalent to almost 80 per cent of its production, comes as Brent has again been rising towards $80 a barrel. This spurred US president Donald Trump to call on Saudi Arabia to release 2m b/d of extra oil on to the market to offset a drop in Venezuela’s output and an expected fall in Iranian barrels.
Libya has two rival governments — one in the east controlled by military strongman Khalifa Haftar and another UN-backed authority in the west — but it is local militias that have taken effective power in the Opec country.
Libya’s national oil company has suspended crude loadings at two major oil terminals, which together with a separate port blockade is estimated to trigger a drop in production of 850,000 barrels a day just as global outages have tightened the market and fuelled prices.
The dramatic fall in the country’s output, equivalent to almost 80 per cent of its production, comes as Brent has again been rising towards $80 a barrel. This spurred US president Donald Trump to call on Saudi Arabia to release 2m b/d of extra oil on to the market to offset a drop in Venezuela’s output and an expected fall in Iranian barrels.
Libya has two rival governments — one in the east controlled by military strongman Khalifa Haftar and another UN-backed authority in the west — but it is local militias that have taken effective power in the Opec country.
Iran’s Policy to Stem Currency Decline Backfires - Bloomberg
Iran’s Policy to Stem Currency Decline Backfires - Bloomberg:
The Iranian central bank’s efforts to stem the rial’s decline and stamp out the currency black market have backfired, undercutting President Hassan Rouhani’s case that he can parry the U.S. war on the Iranian economy. Rather than choking off the illegal transactions, the introduction of a fixed exchange rate in April has encouraged some traders to profiteer by charging higher black market prices for goods they imported with dollars bought at the lower official rate, officials say. Ordinary Iranians are up in arms over the enrichment of wealthy businesses while they’re being squeezed financially by the looming Nov. 4 renewal of U.S. sanctions. “Corruption is like a termite and a main factor in economic instability in our country,” Minister for Information and Communications Technology Jalal Azari Jahromi, who released details about the importers’ financial maneuvers, wrote on Twitter on Saturday.
The Iranian central bank’s efforts to stem the rial’s decline and stamp out the currency black market have backfired, undercutting President Hassan Rouhani’s case that he can parry the U.S. war on the Iranian economy. Rather than choking off the illegal transactions, the introduction of a fixed exchange rate in April has encouraged some traders to profiteer by charging higher black market prices for goods they imported with dollars bought at the lower official rate, officials say. Ordinary Iranians are up in arms over the enrichment of wealthy businesses while they’re being squeezed financially by the looming Nov. 4 renewal of U.S. sanctions. “Corruption is like a termite and a main factor in economic instability in our country,” Minister for Information and Communications Technology Jalal Azari Jahromi, who released details about the importers’ financial maneuvers, wrote on Twitter on Saturday.
Rouhani Sees Europe Unveiling Package to Save Iran Deal Soon - Bloomberg
Rouhani Sees Europe Unveiling Package to Save Iran Deal Soon - Bloomberg:
Iranian President Hassan Rouhani said he expects European nations to unveil soon a package of measures aimed at saving the nuclear deal that’s been imperiled by the U.S. decision to withdraw. “European nations are meant to present in coming days their suggested package to preserve the nuclear deal,” Rouhani said on Monday before leaving Tehran for official visits to Switzerland and Austria, according to the state-run Mehr news agency. Austria took over the rotating presidency of the European Union on July 1.
Iranian President Hassan Rouhani said he expects European nations to unveil soon a package of measures aimed at saving the nuclear deal that’s been imperiled by the U.S. decision to withdraw. “European nations are meant to present in coming days their suggested package to preserve the nuclear deal,” Rouhani said on Monday before leaving Tehran for official visits to Switzerland and Austria, according to the state-run Mehr news agency. Austria took over the rotating presidency of the European Union on July 1.
Trump Must Be Careful With His Oil Price Wishes - Bloomberg
Trump Must Be Careful With His Oil Price Wishes - Bloomberg:
If oil prices are “to high,” as President Donald Trump tweeted over the weekend, there’s one obvious culprit – a supply side of the global market that’s looking, um, to tight: Consider the position of King Salman bin Abdulaziz, for instance. Saudi Arabia likes to have around 1.5 million to 2 million barrels of capacity a day of crude production spare to help balance out kinks in the oil market – probably one reason the U.S. president hit on that figure.
If oil prices are “to high,” as President Donald Trump tweeted over the weekend, there’s one obvious culprit – a supply side of the global market that’s looking, um, to tight: Consider the position of King Salman bin Abdulaziz, for instance. Saudi Arabia likes to have around 1.5 million to 2 million barrels of capacity a day of crude production spare to help balance out kinks in the oil market – probably one reason the U.S. president hit on that figure.
The Worst May Be Over for the Saudi Economy - Bloomberg
The Worst May Be Over for the Saudi Economy - Bloomberg:
Saudi Arabia’s economy is starting to emerge from the worst slowdown since the global financial crisis, if only due to rebounding oil prices and higher public spending. Gross domestic product grew 1.2 percent in the first three months of 2018 compared with a year ago, the first expansion in five quarters, according to data released on Sunday. The non-oil economy grew 1.6 percent from 1.3 percent in the previous quarter, and analysts said the recovery will gain momentum later in the year as the impact of a government stimulus package filters through. “The budget was very expansionary,” Mohamad Al Hajj, a Dubai-based equities strategist at investment bank EFG-Hermes, told Bloomberg TV on Monday, listing steps that included cash transfers and handouts to offset the impact of subsidy cuts. “You’re seeing the results of all of that translating into stronger growth numbers.”
Saudi Arabia’s economy is starting to emerge from the worst slowdown since the global financial crisis, if only due to rebounding oil prices and higher public spending. Gross domestic product grew 1.2 percent in the first three months of 2018 compared with a year ago, the first expansion in five quarters, according to data released on Sunday. The non-oil economy grew 1.6 percent from 1.3 percent in the previous quarter, and analysts said the recovery will gain momentum later in the year as the impact of a government stimulus package filters through. “The budget was very expansionary,” Mohamad Al Hajj, a Dubai-based equities strategist at investment bank EFG-Hermes, told Bloomberg TV on Monday, listing steps that included cash transfers and handouts to offset the impact of subsidy cuts. “You’re seeing the results of all of that translating into stronger growth numbers.”
Six firms in running to manage $1 bln Abraaj healthcare fund -sources | Reuters
Six firms in running to manage $1 bln Abraaj healthcare fund -sources | Reuters:
Colony Capital, TPG and Cerberus Capital Management are among at least six firms vying to run Abraaj’s $1 billion healthcare fund, three sources familiar with the matter said.
Deloitte, the provisional liquidators of Abraaj, and investors in its healthcare funds are weighing these inquiries, which could pave the way for the healthcare fund to separate from the rest of Abraaj, they told Reuters.
How Abraaj used some of the money in the healthcare fund led to a dispute with four investors including the Bill & Melinda Gates Foundation and the International Finance Corp.
Colony Capital, TPG and Cerberus Capital Management are among at least six firms vying to run Abraaj’s $1 billion healthcare fund, three sources familiar with the matter said.
Deloitte, the provisional liquidators of Abraaj, and investors in its healthcare funds are weighing these inquiries, which could pave the way for the healthcare fund to separate from the rest of Abraaj, they told Reuters.
How Abraaj used some of the money in the healthcare fund led to a dispute with four investors including the Bill & Melinda Gates Foundation and the International Finance Corp.
Trump says Saudis must compensate for drop in Iran oil supply | Reuters
Trump says Saudis must compensate for drop in Iran oil supply | Reuters:
President Donald Trump lashed out at OPEC with a warning to stop manipulating oil markets and piled pressure on U.S. ally Saudi Arabia to raise supplies to compensate for lower exports from Iran.
Trump said in a tweet on Saturday that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to produce more oil.
The White House later walked back the president’s comments, saying the king had said his country could raise oil production if needed.
President Donald Trump lashed out at OPEC with a warning to stop manipulating oil markets and piled pressure on U.S. ally Saudi Arabia to raise supplies to compensate for lower exports from Iran.
Trump said in a tweet on Saturday that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to produce more oil.
The White House later walked back the president’s comments, saying the king had said his country could raise oil production if needed.
Amanat agrees to buy Middlesex University's Dubai campus | Reuters
Amanat agrees to buy Middlesex University's Dubai campus | Reuters:
United Arab Emirates (UAE) education and healthcare investment firm Amanat Holdings said on Monday that it has agreed to acquire Middlesex University’s campus in Dubai, which is partly owned by embattled private equity company Abraaj. Amanat entered into a share purchase agreement on an “arm’s length basis” on June 8 to acquire the university’s owner and operator, Middlesex Associates, from Mocha Education Holdings Limited, it said in a statement to the Dubai bourse. Amanat said that it had been told that Abraaj indirectly owns 6 percent of Middlesex Associates. The transaction is subject to terms, Amanat said, without elaborating.
United Arab Emirates (UAE) education and healthcare investment firm Amanat Holdings said on Monday that it has agreed to acquire Middlesex University’s campus in Dubai, which is partly owned by embattled private equity company Abraaj. Amanat entered into a share purchase agreement on an “arm’s length basis” on June 8 to acquire the university’s owner and operator, Middlesex Associates, from Mocha Education Holdings Limited, it said in a statement to the Dubai bourse. Amanat said that it had been told that Abraaj indirectly owns 6 percent of Middlesex Associates. The transaction is subject to terms, Amanat said, without elaborating.
Oil falls as Saudi, Russian output rises | Reuters
Oil falls as Saudi, Russian output rises | Reuters:
Oil prices fell on Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid an escalating trade dispute with the United States.
Benchmark Brent crude oil LCOc1 fell $1.24 a barrel to a low of $77.99 before recovering to around $78.50, down 73 cents, by 0935 GMT. U.S. light crude CLc1 was down 40 cents at $73.75.
Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46.
Oil prices fell on Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid an escalating trade dispute with the United States.
Benchmark Brent crude oil LCOc1 fell $1.24 a barrel to a low of $77.99 before recovering to around $78.50, down 73 cents, by 0935 GMT. U.S. light crude CLc1 was down 40 cents at $73.75.
Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46.
MIDEAST STOCKS-Property lifts Dubai, Saudi eases on weak oil | Reuters
MIDEAST STOCKS-Property lifts Dubai, Saudi eases on weak oil | Reuters:
Gains in shares of property and contracting firms lifted Dubai stocks in early trade on Monday, but other Gulf markets were weak on concerns about the outlook for oil prices. Oil prices fell by more than 1 percent on Monday as supplies from top exporter Saudi Arabia rose, while additional pressure came from U.S. President Donald Trump tweet over the weekend that Saudi Arabia’s King Salman had agreed to produce more oil. Dubai shares traded 0.3 percent higher lifted by a 0.4 percent rise Emaar Properties and a 2.4 percent gain in contractor Arabtec.
Gains in shares of property and contracting firms lifted Dubai stocks in early trade on Monday, but other Gulf markets were weak on concerns about the outlook for oil prices. Oil prices fell by more than 1 percent on Monday as supplies from top exporter Saudi Arabia rose, while additional pressure came from U.S. President Donald Trump tweet over the weekend that Saudi Arabia’s King Salman had agreed to produce more oil. Dubai shares traded 0.3 percent higher lifted by a 0.4 percent rise Emaar Properties and a 2.4 percent gain in contractor Arabtec.
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