Oil's Rollercoaster Ride: Crude Soars and Slumps in One Month - Bloomberg:
In the space of about a month, oil has gone from riding a rocket toward $100 to slumping into a bear market.
Futures fell 1.6 percent Thursday in New York, extending a decline from its October high to 21 percent. A further drop Friday would make it the longest-ever streak of losses. Oil’s retreat has increased pressure on OPEC and its allies to cut supply just months after adding barrels. U.S. crude production is accelerating, OPEC output is the highest in years and waivers will allow some Iranian crude exports despite U.S. sanctions.
“Sentiment has shifted,” said Bart Melek, head of global commodity strategy at TD Securities in Toronto. “OPEC has put on more crude than we thought and second of all, these waivers are becoming an impediment to price support.”
Thursday, 8 November 2018
Russian Oil May Gain a Lot by Giving a Little on OPEC U-Turn - Bloomberg
Russian Oil May Gain a Lot by Giving a Little on OPEC U-Turn - Bloomberg:
Russia’s oil industry is feeling the pressure of a possible return of production caps. In fact, by sacrificing a fraction of output, the companies could see their stocks rise.
Fresh output curbs may push crude prices up, benefiting Russian producers just as they did during the cuts that began last year. The Moscow Oil & Gas Index has gained about 40 percent since the initial output pact between OPEC and Russia was reached almost two years ago.
The Organization of Petroleum Exporting Countries has signaled it will consider a return to cutting supply next year as oil prices wilt in the face of another surge in U.S. shale production. A new deal would come just as Russia’s production climbs to a post-Soviet high -- following its June agreement with OPEC to ease supply caps -- and its oil companies generate record cash.
Russia’s oil industry is feeling the pressure of a possible return of production caps. In fact, by sacrificing a fraction of output, the companies could see their stocks rise.
Fresh output curbs may push crude prices up, benefiting Russian producers just as they did during the cuts that began last year. The Moscow Oil & Gas Index has gained about 40 percent since the initial output pact between OPEC and Russia was reached almost two years ago.
The Organization of Petroleum Exporting Countries has signaled it will consider a return to cutting supply next year as oil prices wilt in the face of another surge in U.S. shale production. A new deal would come just as Russia’s production climbs to a post-Soviet high -- following its June agreement with OPEC to ease supply caps -- and its oil companies generate record cash.
Oil prices drop as ‘trifecta of trouble’ may cause glut | Reuters
Oil prices drop as ‘trifecta of trouble’ may cause glut | Reuters:
Oil prices fell nearly 2 percent on Thursday as investors focused on swelling global crude supply, which is increasing more quickly than many had expected.
The market focused on record U.S. crude production and signals from Iraq, Abu Dhabi and Indonesia that output will grow more quickly than expected in 2019. Fears of the potential supply glut dampened a rally early in the session driven by Chinese data that showed record oil imports.
“There’s a trifecta of trouble created by U.S. stockpile builds, OPEC overproduction and the watering down of Iran sanctions,” said Bob Yawger, director of futures at Mizuho in New York.
Brent crude futures, the global benchmark, fell $1.42, or 1.97 percent, to settle at $70.65 a barrel, the lowest since mid-August. U.S. crude futures fell $1.00, or 1.6 percent, to $60.67 a barrel, the lowest since March 14.
Oil prices fell nearly 2 percent on Thursday as investors focused on swelling global crude supply, which is increasing more quickly than many had expected.
The market focused on record U.S. crude production and signals from Iraq, Abu Dhabi and Indonesia that output will grow more quickly than expected in 2019. Fears of the potential supply glut dampened a rally early in the session driven by Chinese data that showed record oil imports.
“There’s a trifecta of trouble created by U.S. stockpile builds, OPEC overproduction and the watering down of Iran sanctions,” said Bob Yawger, director of futures at Mizuho in New York.
Brent crude futures, the global benchmark, fell $1.42, or 1.97 percent, to settle at $70.65 a barrel, the lowest since mid-August. U.S. crude futures fell $1.00, or 1.6 percent, to $60.67 a barrel, the lowest since March 14.
MIDEAST STOCKS-Banks support Qatar recovery, Oman up sharply | Reuters
MIDEAST STOCKS-Banks support Qatar recovery, Oman up sharply | Reuters:
Qatar’s bourse gained sharply and recovered some of its losses from the last two sessions, while the Oman index registered its best day in nearly two months as telecom and bank stocks gained. Other Gulf markets were mixed.
Qatar’s main index booked a 1.1 percent rise and snapped two sessions of losses, buoyed by a 3.1 percent rise in Qatar National Bank and a 4.5 percent rise in Qatar Fuel Co.
The main Saudi index moved lower by 0.6 percent, dragged down by industry heavyweights Al Rajhi Banking & Investment and Saudi Basic Industries Corp, which both fell nearly 1 percent.
Qatar’s bourse gained sharply and recovered some of its losses from the last two sessions, while the Oman index registered its best day in nearly two months as telecom and bank stocks gained. Other Gulf markets were mixed.
Qatar’s main index booked a 1.1 percent rise and snapped two sessions of losses, buoyed by a 3.1 percent rise in Qatar National Bank and a 4.5 percent rise in Qatar Fuel Co.
The main Saudi index moved lower by 0.6 percent, dragged down by industry heavyweights Al Rajhi Banking & Investment and Saudi Basic Industries Corp, which both fell nearly 1 percent.
Dubai Payments Firm Picks Citigroup, JPMorgan for IPO - Bloomberg
Dubai Payments Firm Picks Citigroup, JPMorgan for IPO - Bloomberg:
The owners of Middle Eastern payment processor Network International have picked six investment banks to manage a potential initial public offering that could value the firm at about $3 billion, according to people familiar with the matter.
Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley were hired as global coordinators for the stock sale, which could take place next year in London, the people said, asking not to be named as the details aren’t public. Barclays Plc, Goldman Sachs Group Inc. and Emirates NBD Capital are acting as bookrunners for the listing, the people said, while Evercore is the financial adviser.
The IPO could see shareholders sell a combined 25 percent to 30 percent of the company, the people said. Warburg Pincus and General Atlantic jointly own a 49 percent stake in Network International, while Emirates NBD PJSC, Dubai’s biggest bank, holds the remaining 51 percent.
The owners of Middle Eastern payment processor Network International have picked six investment banks to manage a potential initial public offering that could value the firm at about $3 billion, according to people familiar with the matter.
Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley were hired as global coordinators for the stock sale, which could take place next year in London, the people said, asking not to be named as the details aren’t public. Barclays Plc, Goldman Sachs Group Inc. and Emirates NBD Capital are acting as bookrunners for the listing, the people said, while Evercore is the financial adviser.
The IPO could see shareholders sell a combined 25 percent to 30 percent of the company, the people said. Warburg Pincus and General Atlantic jointly own a 49 percent stake in Network International, while Emirates NBD PJSC, Dubai’s biggest bank, holds the remaining 51 percent.
Emirates NBD applies for Denizbank takeover: Turkey's competition authority | ZAWYA MENA Edition
Emirates NBD applies for Denizbank takeover: Turkey's competition authority | ZAWYA MENA Edition:
Dubai's biggest lender Emirates NBD has applied to Turkey's competition authority to take over Turkish lender Denizbank, a posting on the competition authority's website showed on Thursday.
In May, Emirates NBD agreed to buy Denizbank from Russia's state-owned Sberbank SBER.MM for $3.2 billion to help establish itself as a leading bank in the Middle East, North Africa and Turkey.
Dubai's biggest lender Emirates NBD has applied to Turkey's competition authority to take over Turkish lender Denizbank, a posting on the competition authority's website showed on Thursday.
In May, Emirates NBD agreed to buy Denizbank from Russia's state-owned Sberbank SBER.MM for $3.2 billion to help establish itself as a leading bank in the Middle East, North Africa and Turkey.
UAE's TAQA rebounds to profit in Q3, fueled by higher oil prices | Reuters
UAE's TAQA rebounds to profit in Q3, fueled by higher oil prices | Reuters:
Abu Dhabi National Energy Co (TAQA) on Thursday reported a third-quarter profit, recovering from a loss a year earlier, as higher oil prices boosted its revenue.
The state-owned oil explorer and power supplier made a profit attributable to equity holders of 153 million dirhams ($42 million) in the three months ended Sept. 30, it said in a bourse statement.
That compared with a 194 million dirhams loss in the same period last year.
Abu Dhabi National Energy Co (TAQA) on Thursday reported a third-quarter profit, recovering from a loss a year earlier, as higher oil prices boosted its revenue.
The state-owned oil explorer and power supplier made a profit attributable to equity holders of 153 million dirhams ($42 million) in the three months ended Sept. 30, it said in a bourse statement.
That compared with a 194 million dirhams loss in the same period last year.
MIDEAST STOCKS-QNB aides Qatar gains, most Gulf markets trade down | Reuters
MIDEAST STOCKS-QNB aides Qatar gains, most Gulf markets trade down | Reuters:
Most Middle Eastern stock markets dropped in quiet trading on Thursday, with Qatar recovering a little after suffering its worst one-day drop since August in the last session.
The Qatar index, which has been the best performing market in the Gulf this year, inched up 0.3 percent, driven by a 2.5 percent rise in Qatar National Bank.
“We are not seeing liquidity move into the local markets yet despite the good (sort of earnings),” Marie Salem, director capital markets at FFA Private Bank in Dubai said.
Most Middle Eastern stock markets dropped in quiet trading on Thursday, with Qatar recovering a little after suffering its worst one-day drop since August in the last session.
The Qatar index, which has been the best performing market in the Gulf this year, inched up 0.3 percent, driven by a 2.5 percent rise in Qatar National Bank.
“We are not seeing liquidity move into the local markets yet despite the good (sort of earnings),” Marie Salem, director capital markets at FFA Private Bank in Dubai said.
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