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.
Wednesday, 29 August 2018
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.
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