The Real Cost Of Saudi Arabia’s Gas Ambitions | OilPrice.com:
The world’s liquefied natural gas (LNG) market will become even more competitive within the next several years. Saudi Arabia, the world’s largest oil exporter, is now vying to become a major LNG exporter, joining the ranks of LNG heavyweights Qatar, Australia and the U.S.
State-owned Saudi Aramco’s chief executive said yesterday that the company needs $150 billion worth of investments over the next decade as the company plans to increase output and become an exporter. The company is also pushing ahead with gas development plans to offset domestic oil consumption to provide more oil available for export, a Reuters report said. Saudi Arabia also plans to produce 10 percent of its power from renewable sources in the next five to six years to diversify its energy mix and free up even more crude oil for export purposes.
The kingdom, and OPEC de facto leader, is developing around 30 solar and wind projects targeting 9.5 GW of renewable energy by 2023, as well as plans to build 17.6 GW of nuclear capacity by 2032.
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Wednesday 28 November 2018
Khashoggi Case Makes MBS and Saudi Arabia 'Toxic,' Analyst Says - Bloomberg
Khashoggi Case Makes MBS and Saudi Arabia 'Toxic,' Analyst Says - Bloomberg:
Saudi Arabia's Crown Prince Mohammed bin Salman is miscalculating that the scandal over his role in the murder of a Washington Post columnist will fade away, starting with his presence this weekend at the G-20 meeting of global leaders in Argentina.
"He'll have his picture with world leaders and say, 'See, it's all coming back to normal,'" said Bruce Riedel, a leading U.S. expert on the Middle East. "He's wrong. Saudi Arabia and MBS now are toxic, and will be as long as he's in power."
Riedel's assessment is harsher on the crown prince than that of most other analysts, but his credentials make it well worth considering. Now a senior fellow at the Brookings Institution, he was for three decades a top Middle East expert at the Central Intelligence Agency and the White House. He wrote a book last year on U.S.-Saudi relations, "Kings and Presidents: Saudi Arabia and the United States Since FDR."
Saudi Arabia's Crown Prince Mohammed bin Salman is miscalculating that the scandal over his role in the murder of a Washington Post columnist will fade away, starting with his presence this weekend at the G-20 meeting of global leaders in Argentina.
"He'll have his picture with world leaders and say, 'See, it's all coming back to normal,'" said Bruce Riedel, a leading U.S. expert on the Middle East. "He's wrong. Saudi Arabia and MBS now are toxic, and will be as long as he's in power."
Riedel's assessment is harsher on the crown prince than that of most other analysts, but his credentials make it well worth considering. Now a senior fellow at the Brookings Institution, he was for three decades a top Middle East expert at the Central Intelligence Agency and the White House. He wrote a book last year on U.S.-Saudi relations, "Kings and Presidents: Saudi Arabia and the United States Since FDR."
Putin Says $60 Oil `Absolutely Fine,' Praises Saudi Crown Prince - Bloomberg
Putin Says $60 Oil `Absolutely Fine,' Praises Saudi Crown Prince - Bloomberg:
Russian President Vladimir Putin said current oil prices around $60 a barrel are “absolutely fine” for his country, adding that Moscow is ready if needed to work with OPEC on stabilizing the market after a major drop. Two weeks ago, Putin said a level of $70 suited Russia.
He pointed to the success of the OPEC+ agreement on output cuts, singling out Saudi Crown Prince Mohammed bin Salman for praise.
“This is effectively an achievement of Saudi Arabia and the crown prince, he was the initiator of this work,” Putin told an investment conference in Moscow on Wednesday. “It led to positive results.”
Russian President Vladimir Putin said current oil prices around $60 a barrel are “absolutely fine” for his country, adding that Moscow is ready if needed to work with OPEC on stabilizing the market after a major drop. Two weeks ago, Putin said a level of $70 suited Russia.
He pointed to the success of the OPEC+ agreement on output cuts, singling out Saudi Crown Prince Mohammed bin Salman for praise.
“This is effectively an achievement of Saudi Arabia and the crown prince, he was the initiator of this work,” Putin told an investment conference in Moscow on Wednesday. “It led to positive results.”
Exclusive: Abraaj founder Naqvi pitches last-ditch rescue bid to investors | Reuters
Exclusive: Abraaj founder Naqvi pitches last-ditch rescue bid to investors | Reuters:
Arif Naqvi, founder of troubled buyout firm Abraaj, is making a last-ditch effort to rescue the remaining business of what was once one of the largest investors in emerging markets.
The $13.6 billion company crumbled this year following turmoil triggered by a row with investors, including the Gates Foundation, over the use of their money in a healthcare fund.
Naqvi has met limited partners and creditors in an effort to win back their support for a plan to restructure the debt of Abraaj Holdings and some of its older funds to avert liquidation for the Dubai-based firm, two sources said.
Arif Naqvi, founder of troubled buyout firm Abraaj, is making a last-ditch effort to rescue the remaining business of what was once one of the largest investors in emerging markets.
The $13.6 billion company crumbled this year following turmoil triggered by a row with investors, including the Gates Foundation, over the use of their money in a healthcare fund.
Naqvi has met limited partners and creditors in an effort to win back their support for a plan to restructure the debt of Abraaj Holdings and some of its older funds to avert liquidation for the Dubai-based firm, two sources said.
Bahrain readies austerity push, keeping wary eye on opposition | Reuters
Bahrain readies austerity push, keeping wary eye on opposition | Reuters:
Bahrain’s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S.-allied government may implement the belt-tightening in stages to avoid provoking public anger.
The Sunni-led authorities have kept a lid on dissent since a Shi’ite uprising in the island kingdom in 2011 was quelled with the help of neighboring Saudi Arabia, which fears instability in Bahrain will encourage unrest among its own Shi’ite minority.
But Bahrain, a cornerstone of U.S. military power in the region, could face a fresh test of its ability to curb opposition unrest as it implements reforms to subsidies and pensions required by Gulf Arab donors to avert a debt crisis.
Bahrain’s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S.-allied government may implement the belt-tightening in stages to avoid provoking public anger.
The Sunni-led authorities have kept a lid on dissent since a Shi’ite uprising in the island kingdom in 2011 was quelled with the help of neighboring Saudi Arabia, which fears instability in Bahrain will encourage unrest among its own Shi’ite minority.
But Bahrain, a cornerstone of U.S. military power in the region, could face a fresh test of its ability to curb opposition unrest as it implements reforms to subsidies and pensions required by Gulf Arab donors to avert a debt crisis.
France, Germany taking charge of EU-Iran trade move but oil sales in doubt | Reuters
France, Germany taking charge of EU-Iran trade move but oil sales in doubt | Reuters:
France and Germany are to take joint responsibility for an EU-Iran trade mechanism to minimize the risk of U.S. punishment but few now believe it will cover oil sales, heightening fears for the fate of the landmark international nuclear deal with Iran.
Diplomats said the French-German gambit is a “safety-in-numbers” tactic to overcome the refusal of individual EU states to host the mechanism to sidestep the risk of being targeted by the revived U.S. sanctions regime against Iran.
But with U.S. threats of retribution for sanctions-busting unrelenting, they told Reuters that the goals of the nascent trade mechanism could be scaled back to encompass only less sensitive items such as humanitarian and food products.
France and Germany are to take joint responsibility for an EU-Iran trade mechanism to minimize the risk of U.S. punishment but few now believe it will cover oil sales, heightening fears for the fate of the landmark international nuclear deal with Iran.
Diplomats said the French-German gambit is a “safety-in-numbers” tactic to overcome the refusal of individual EU states to host the mechanism to sidestep the risk of being targeted by the revived U.S. sanctions regime against Iran.
But with U.S. threats of retribution for sanctions-busting unrelenting, they told Reuters that the goals of the nascent trade mechanism could be scaled back to encompass only less sensitive items such as humanitarian and food products.
Oil falls below $60/bbl after 10th straight U.S. crude build | Reuters
Oil falls below $60/bbl after 10th straight U.S. crude build | Reuters:
Oil fell below $60 per barrel on Wednesday after U.S. crude inventories rose for the 10th straight week amid concerns about excess global supply.
Prices, however, rose from the day’s lows in tandem with a rally in stocks after a speech from Federal Reserve Chair Jerome Powell, who said risks to the U.S. economy are relatively balanced, suggesting the pace of interest-rate hikes may slow in coming months.
In the last three days, oil investors have been more willing to buy on declines after a rout that took crude futures down by 30 percent since the beginning of October.
Oil fell below $60 per barrel on Wednesday after U.S. crude inventories rose for the 10th straight week amid concerns about excess global supply.
Prices, however, rose from the day’s lows in tandem with a rally in stocks after a speech from Federal Reserve Chair Jerome Powell, who said risks to the U.S. economy are relatively balanced, suggesting the pace of interest-rate hikes may slow in coming months.
In the last three days, oil investors have been more willing to buy on declines after a rout that took crude futures down by 30 percent since the beginning of October.
MIDEAST STOCKS-Banks drag down Abu Dhabi, petrochems lift Saudi index | Reuters
MIDEAST STOCKS-Banks drag down Abu Dhabi, petrochems lift Saudi index | Reuters:
Banks led the Abu Dhabi stock market sharply lower on Wednesday, while Saudi Arabia gained on the back of a rise in petrochemical shares.
Abu Dhabi’s index fell 1.6 percent, with much of the loss coming in the final 10 minutes of trade. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, declined 2.6 percent and Abu Dhabi Commercial Bank shed 2.2 percent.
But Abu Dhabi National Hotels gained 6.9 percent. It said on Tuesday that it had acquired five hotels in Dubai from Emaar Properties, which edged up 0.2 percent.
Banks led the Abu Dhabi stock market sharply lower on Wednesday, while Saudi Arabia gained on the back of a rise in petrochemical shares.
Abu Dhabi’s index fell 1.6 percent, with much of the loss coming in the final 10 minutes of trade. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, declined 2.6 percent and Abu Dhabi Commercial Bank shed 2.2 percent.
But Abu Dhabi National Hotels gained 6.9 percent. It said on Tuesday that it had acquired five hotels in Dubai from Emaar Properties, which edged up 0.2 percent.
Abu Dhabi's New Move to Spur Economy: Waiving, Slashing Fees - Bloomberg
Abu Dhabi's New Move to Spur Economy: Waiving, Slashing Fees - Bloomberg:
Abu Dhabi is on another push to stimulate its economy.
This time the sheikhdom is waiving some business fees and slashing others after slowing growth in the non-oil economy has already pushed the United Arab Emirates to introduce a slew of measures, including longer-term visas for expatriates.
Abu Dhabi, the capital of the U.A.E., late Tuesday exempted private-sector companies from economic license fees for two years, waived municipal fees on 75 basic services and reduced others by 10 percent to 15 percent, state-news agency WAM reported. The changes take effect Dec. 1.
Abu Dhabi is on another push to stimulate its economy.
This time the sheikhdom is waiving some business fees and slashing others after slowing growth in the non-oil economy has already pushed the United Arab Emirates to introduce a slew of measures, including longer-term visas for expatriates.
Abu Dhabi, the capital of the U.A.E., late Tuesday exempted private-sector companies from economic license fees for two years, waived municipal fees on 75 basic services and reduced others by 10 percent to 15 percent, state-news agency WAM reported. The changes take effect Dec. 1.
Oil Pares Gains Before U.S. Inventory Data, Saudi-Russia Talks - Bloomberg
Oil Pares Gains Before U.S. Inventory Data, Saudi-Russia Talks - Bloomberg:
Oil pared gains as traders awaited weekly U.S. inventory data and any signs of whether Saudi Arabia and Russia will take steps to prevent a global surplus.
Futures were 0.2 percent lower in New York after rising as much as 1.9 percent. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman will meet at the Group of 20 summit in Argentina and may discuss oil markets before OPEC and its allies review output policy next week in Vienna. U.S. government data will probably show that crude inventories increased by 1 million barrels last week, according to a Bloomberg survey, while an industry report showed they rose by 3.45 million.
“A significant production cut on the part of OPEC and its allied non-OPEC producers at their meeting next week in Vienna will thus be needed to re-balance the oil market next year and ensure that stocks do not rise any further,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
Oil pared gains as traders awaited weekly U.S. inventory data and any signs of whether Saudi Arabia and Russia will take steps to prevent a global surplus.
Futures were 0.2 percent lower in New York after rising as much as 1.9 percent. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman will meet at the Group of 20 summit in Argentina and may discuss oil markets before OPEC and its allies review output policy next week in Vienna. U.S. government data will probably show that crude inventories increased by 1 million barrels last week, according to a Bloomberg survey, while an industry report showed they rose by 3.45 million.
“A significant production cut on the part of OPEC and its allied non-OPEC producers at their meeting next week in Vienna will thus be needed to re-balance the oil market next year and ensure that stocks do not rise any further,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
Russian fund, UAE's Mubadala, Saudi Arabia in talks on drilling firm stake | Reuters
Russian fund, UAE's Mubadala, Saudi Arabia in talks on drilling firm stake | Reuters:
Russia’s sovereign wealth fund, Mubadala of the United Arab Emirates and Saudi Arabia are in talks to buy a 16 percent stake in Russian oil drilling firm Eurasia Drilling, the head of the Russian fund said on Wednesday.
The deal is awaiting approval from a government commission, Kirill Dmitriev, head of the Russian Direct Investment Fund, said at a conference in Moscow.
Russia’s sovereign wealth fund, Mubadala of the United Arab Emirates and Saudi Arabia are in talks to buy a 16 percent stake in Russian oil drilling firm Eurasia Drilling, the head of the Russian fund said on Wednesday.
The deal is awaiting approval from a government commission, Kirill Dmitriev, head of the Russian Direct Investment Fund, said at a conference in Moscow.
Falih says Saudi Arabia won't cut oil output alone | Reuters
Falih says Saudi Arabia won't cut oil output alone | Reuters:
Saudi Energy Minister Khalid al-Falih said on Wednesday his country would not cut oil output on its own to stabilise the market, as OPEC peer Nigeria said it was too early to signal whether it would take part in any decision to reduce production.
Falih was in Abuja for a meeting with Nigerian oil minister Emmanuel Ibe Kachikwu. The Saudi minister said signals from fellow OPEC members Iraq, Nigeria and Libya were positive ahead of the Dec. 6 OPEC meeting in Vienna as all ministers were keen to bring back stability to oil markets.
Kachikwu said it was too early to say whether Nigeria would participate in any cuts.
Saudi Energy Minister Khalid al-Falih said on Wednesday his country would not cut oil output on its own to stabilise the market, as OPEC peer Nigeria said it was too early to signal whether it would take part in any decision to reduce production.
Falih was in Abuja for a meeting with Nigerian oil minister Emmanuel Ibe Kachikwu. The Saudi minister said signals from fellow OPEC members Iraq, Nigeria and Libya were positive ahead of the Dec. 6 OPEC meeting in Vienna as all ministers were keen to bring back stability to oil markets.
Kachikwu said it was too early to say whether Nigeria would participate in any cuts.
Mideast Stocks: Dubai rebounds slightly, most of Gulf quiet | ZAWYA MENA Edition
Mideast Stocks: Dubai rebounds slightly, most of Gulf quiet | ZAWYA MENA Edition:
The Dubai stock market inched up early on Wednesday after sinking to a 34-month low in the last session, while most major Gulf marketswere little changed.
The Dubai index, which had lost 1.0 percent on Tuesday, added 0.4 percent on Wednesday morning with the emirate's largest lender, Emirates NBD, rising 2.1 percent.
But developer Union Properties , which has been hit by Dubai's weak real estate market, dived to a new 34-month low, dropping 7.0 percent.
The Dubai stock market inched up early on Wednesday after sinking to a 34-month low in the last session, while most major Gulf marketswere little changed.
The Dubai index, which had lost 1.0 percent on Tuesday, added 0.4 percent on Wednesday morning with the emirate's largest lender, Emirates NBD, rising 2.1 percent.
But developer Union Properties , which has been hit by Dubai's weak real estate market, dived to a new 34-month low, dropping 7.0 percent.
UAE financial regulators reach agreement on licensing, promoting investment funds | ZAWYA MENA Edition
UAE financial regulators reach agreement on licensing, promoting investment funds | ZAWYA MENA Edition:
The Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) announced today that they had reached an agreement on facilitating the licensing of domestic funds by each authority for promotion across the UAE.
The three authorities signed the regulatory agreement in Dubai in the presence of Sultan bin Saeed Al Mansouri, Minister of Economy, and the SCA Board Chairman, and Ahmed Ali Al Sayegh, Minister of State, and Chairman of the ADGM. The agreement was entered into by Dr. Obaid Al Zaabi, CEO of the SCA, Bryan Stirewalt, Chief Executive of the DFSA, and Richard Teng, CEO of the FSRA.
Following the signing, Al Mansouri said: "Signing this agreement and implementing its provisions will foster the relations between the three authorities. It will facilitate the licensing and promoting of investment funds to attract foreign investment. It will also pave the way for savings to be directed towards new financial instruments such as investment funds and activate a number of financial services and activities related to investment funds such as custodian, investment management, and promoting, as well as the management of investment funds." He added that the agreement implements passporting "mutual recognition" as a regulatory mechanism for promoting and supervising investment funds as well as encouraging foreign firms licensed in financial free zones in other countries to operate in the UAE market. The agreement contributes to the fulfilment of one of the main roles assigned to the SCA, which is to provide the appropriate environment for the investment of savings and funds in securities, in line with the objectives of the country’s economic development.
The Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) announced today that they had reached an agreement on facilitating the licensing of domestic funds by each authority for promotion across the UAE.
The three authorities signed the regulatory agreement in Dubai in the presence of Sultan bin Saeed Al Mansouri, Minister of Economy, and the SCA Board Chairman, and Ahmed Ali Al Sayegh, Minister of State, and Chairman of the ADGM. The agreement was entered into by Dr. Obaid Al Zaabi, CEO of the SCA, Bryan Stirewalt, Chief Executive of the DFSA, and Richard Teng, CEO of the FSRA.
Following the signing, Al Mansouri said: "Signing this agreement and implementing its provisions will foster the relations between the three authorities. It will facilitate the licensing and promoting of investment funds to attract foreign investment. It will also pave the way for savings to be directed towards new financial instruments such as investment funds and activate a number of financial services and activities related to investment funds such as custodian, investment management, and promoting, as well as the management of investment funds." He added that the agreement implements passporting "mutual recognition" as a regulatory mechanism for promoting and supervising investment funds as well as encouraging foreign firms licensed in financial free zones in other countries to operate in the UAE market. The agreement contributes to the fulfilment of one of the main roles assigned to the SCA, which is to provide the appropriate environment for the investment of savings and funds in securities, in line with the objectives of the country’s economic development.
Oil prices edge lower ahead of G20, OPEC meetings | Reuters
Oil prices edge lower ahead of G20, OPEC meetings | Reuters:
Oil prices dipped on Tuesday, weighed down by uncertainty over the U.S.-China trade war and signs of increased global crude production, but losses were limited by expectations that crude exporters would agree to cut output at an upcoming OPEC meeting.
Brent crude LCOc1 futures fell 27 cents to settle at $60.21 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 7 cents to settle at $51.56 a barrel.
Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.
Oil prices dipped on Tuesday, weighed down by uncertainty over the U.S.-China trade war and signs of increased global crude production, but losses were limited by expectations that crude exporters would agree to cut output at an upcoming OPEC meeting.
Brent crude LCOc1 futures fell 27 cents to settle at $60.21 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 7 cents to settle at $51.56 a barrel.
Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.