Oil Closes Below $50 for First Time in a Year as Glut Fears Grow - Bloomberg:
OPEC has its work cut out to persuade the market that its output caps will stabilize oil prices -- and U.S. producers aren’t helping.
Crude settled below $50 a barrel in New York on Monday for the first time in more than a year and continued falling in after-hours trading. The slide began after data provider Genscape Inc. was said to report growing inventories at the biggest American storage hub and intensified as the U.S. Energy Department forecast higher output in the country’s shale plays.
Oil prices are on track for a third straight monthly decline despite efforts by OPEC, Russia and other major exporters to halt the slide. Crude had slunk near $50 in recent weeks but always rebounded. Crossing the threshold was “significant," said Michael Loewen, a commodities strategist at Scotiabank in Toronto.
Monday 17 December 2018
#Dubai Aerospace Enterprise announces portfolio sale of 18 aircrafts | ZAWYA MENA Edition
Dubai Aerospace Enterprise announces portfolio sale of 18 aircrafts | ZAWYA MENA Edition:
Dubai Aerospace Enterprise, DAE, has entered into a definitive sale agreement to sell a portfolio of 18 mid-life aircraft to institutional investors. The 18 aircraft in this portfolio are on lease to 15 airlines in 13 countries and have a weighted average age of approximately nine years with a weighted average remaining lease term of 4.5 years.
The portfolio is made up of 69 per cent current generation narrow body aircraft, 24 per cent wide body aircraft, and seven percent ATR72-600 turboprop aircraft. DAE will act as portfolio servicer.
Commenting on the announcement, Firoz Tarapore, Chief Executive Officer of DAE, said, "We continue to build our managed aircraft portfolio. This transaction takes us one step closer to our stated goal of having US$5 billion of managed aircraft assets.
Dubai Aerospace Enterprise, DAE, has entered into a definitive sale agreement to sell a portfolio of 18 mid-life aircraft to institutional investors. The 18 aircraft in this portfolio are on lease to 15 airlines in 13 countries and have a weighted average age of approximately nine years with a weighted average remaining lease term of 4.5 years.
The portfolio is made up of 69 per cent current generation narrow body aircraft, 24 per cent wide body aircraft, and seven percent ATR72-600 turboprop aircraft. DAE will act as portfolio servicer.
Commenting on the announcement, Firoz Tarapore, Chief Executive Officer of DAE, said, "We continue to build our managed aircraft portfolio. This transaction takes us one step closer to our stated goal of having US$5 billion of managed aircraft assets.
Mideast Stocks: Banks drive Egypt gain, petrochemicals boost Saudi | ZAWYA MENA Edition
Mideast Stocks: Banks drive Egypt gain, petrochemicals boost Saudi | ZAWYA MENA Edition:
A rebound in bank shares lifted Egypt's blue-chip stock index on Monday, while petrochemicals boosted Saudi Arabia's index.
The Egyptian blue-chip index was up 1.7 percent- about twice the rise of the broader EGX100 index- as the biggest bank, Commercial International Bank (COMI), increased 3.5 percent.
The market has suffered sharp corrections since May and that has taken a lot of stocks to attractive entry points, said Radwa El-Swaify, head of research at Pharos Holding in Cairo.
A rebound in bank shares lifted Egypt's blue-chip stock index on Monday, while petrochemicals boosted Saudi Arabia's index.
The Egyptian blue-chip index was up 1.7 percent- about twice the rise of the broader EGX100 index- as the biggest bank, Commercial International Bank (COMI), increased 3.5 percent.
The market has suffered sharp corrections since May and that has taken a lot of stocks to attractive entry points, said Radwa El-Swaify, head of research at Pharos Holding in Cairo.
Oil drops as oversupply, economic growth worries weigh | Reuters
Oil drops as oversupply, economic growth worries weigh | Reuters:
Oil prices fell more than 2 percent on Monday, with U.S. crude hitting the lowest since September 2017, on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand.
Brent crude oil LCOc1 fell 67 cents, or 1.11 percent, to settle at $59.61 a barrel after dropping to a session low of $58.83 a barrel. U.S. crude CLc1 dropped $1.32, or 2.58 percent to end the session at $49.88 a barrel and tumbled to a low of $49.09 a barrel.
U.S. crude futures fell after inventories at the storage hub of Cushing, Oklahoma rose by more than 1 million barrels from Dec. 11-14, traders said, citing data from market intelligence firm Genscape.
Oil prices fell more than 2 percent on Monday, with U.S. crude hitting the lowest since September 2017, on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand.
Brent crude oil LCOc1 fell 67 cents, or 1.11 percent, to settle at $59.61 a barrel after dropping to a session low of $58.83 a barrel. U.S. crude CLc1 dropped $1.32, or 2.58 percent to end the session at $49.88 a barrel and tumbled to a low of $49.09 a barrel.
U.S. crude futures fell after inventories at the storage hub of Cushing, Oklahoma rose by more than 1 million barrels from Dec. 11-14, traders said, citing data from market intelligence firm Genscape.
UPDATE 2-U.S. shale oil output to top 8 mln bpd by year-end: EIA | Reuters
UPDATE 2-U.S. shale oil output to top 8 mln bpd by year-end: EIA | Reuters:
Oil production from seven major U.S. shale basins is expected to surpass 8 million barrels per day (bpd) by the end of the year, the U.S. Energy Information Administration said in a monthly report on Monday.
The United States has surpassed Russia and Saudi Arabia as the world’s biggest oil producer, with overall crude production climbing to a weekly record of 11.7 million bpd.
When December ends, shale production is expected to climb to 8.03 million bpd for the first time on record and forecast to rise by about 134,000 barrels per day (bpd) in January to 8.17 million bpd.
Oil production from seven major U.S. shale basins is expected to surpass 8 million barrels per day (bpd) by the end of the year, the U.S. Energy Information Administration said in a monthly report on Monday.
The United States has surpassed Russia and Saudi Arabia as the world’s biggest oil producer, with overall crude production climbing to a weekly record of 11.7 million bpd.
When December ends, shale production is expected to climb to 8.03 million bpd for the first time on record and forecast to rise by about 134,000 barrels per day (bpd) in January to 8.17 million bpd.
MIDEAST DEBT- #UAE lenders unshaken by troubles at Sharjah's Invest Bank | Reuters
MIDEAST DEBT-UAE lenders unshaken by troubles at Sharjah's Invest Bank | Reuters:
Banks in the United Arab Emirates were unaffected on Monday by the central bank’s statement in support of Sharjah’s loss-making Invest Bank, which has been hit by exposure to the UAE’s troubled real estate and construction markets.
“It’s a small bank and won’t create ripples,” a Gulf finance banker said of Invest Bank, which said on Friday that the government of Sharjah planned to take a majority stake in it.
UAE interbank money rates have not moved unusually sharply in the last few days and several bankers said they did not believe Invest Bank signalled any systemic instability among banks in the UAE, where liquidity is ample after two years of sluggish credit growth and rising energy prices.
Banks in the United Arab Emirates were unaffected on Monday by the central bank’s statement in support of Sharjah’s loss-making Invest Bank, which has been hit by exposure to the UAE’s troubled real estate and construction markets.
“It’s a small bank and won’t create ripples,” a Gulf finance banker said of Invest Bank, which said on Friday that the government of Sharjah planned to take a majority stake in it.
UAE interbank money rates have not moved unusually sharply in the last few days and several bankers said they did not believe Invest Bank signalled any systemic instability among banks in the UAE, where liquidity is ample after two years of sluggish credit growth and rising energy prices.
#SaudiArabia condemns US Senate ‘interference’ over Khashoggi | Financial Times
Saudi Arabia condemns US Senate ‘interference’ over Khashoggi | Financial Times:
Saudi Arabia fired back at its critics in Washington for their “interference” in its affairs after the US Senate blamed the Saudi crown prince for the killing of journalist Jamal Khashoggi.
In a statement late on Sunday, Riyadh said the Senate vote “was based on unsubstantiated claims and allegations, and contained blatant interferences in the kingdom’s internal affairs, undermining the kingdom’s regional and international role”.
In two votes last week the US Senate blamed Crown Prince Mohammed bin Salman for the murder of Khashoggi at the Saudi consulate in Istanbul and called for the US to pull out of a Saudi-led war in Yemen.
Saudi Arabia fired back at its critics in Washington for their “interference” in its affairs after the US Senate blamed the Saudi crown prince for the killing of journalist Jamal Khashoggi.
In a statement late on Sunday, Riyadh said the Senate vote “was based on unsubstantiated claims and allegations, and contained blatant interferences in the kingdom’s internal affairs, undermining the kingdom’s regional and international role”.
In two votes last week the US Senate blamed Crown Prince Mohammed bin Salman for the murder of Khashoggi at the Saudi consulate in Istanbul and called for the US to pull out of a Saudi-led war in Yemen.
#Dubai Investments Park Is Said to Hire HSBC, Citigroup for Sukuk - Bloomberg
Dubai Investments Park Is Said to Hire HSBC, Citigroup for Sukuk - Bloomberg:
Dubai Investments PJSC’s property unit hired HSBC Holdings Plc and Citigroup Inc. to sell Islamic bonds early next year as it seeks to refinance an existing sukuk, according to people with knowledge of the plans.
Dubai Investments Park Development Co., which develops and manages property for the holding company, is also working with First Abu Dhabi Bank PJSC, Emirates NBD PJSC and Dubai Islamic Bank PJSC to place the five-year notes, said the people, asking not to be identified because the information is private. The sale could raise about $500 million, one of the people said.
“The DIP sukuk 2014 is maturing in February 2019 and DIPDC is considering refinancing the sukuk through various means including a potential sukuk issuance,” Khalid Bin Kalban, chief executive officer and managing director of Dubai Investments, said in an emailed statement without giving further details.
Dubai Investments PJSC’s property unit hired HSBC Holdings Plc and Citigroup Inc. to sell Islamic bonds early next year as it seeks to refinance an existing sukuk, according to people with knowledge of the plans.
Dubai Investments Park Development Co., which develops and manages property for the holding company, is also working with First Abu Dhabi Bank PJSC, Emirates NBD PJSC and Dubai Islamic Bank PJSC to place the five-year notes, said the people, asking not to be identified because the information is private. The sale could raise about $500 million, one of the people said.
“The DIP sukuk 2014 is maturing in February 2019 and DIPDC is considering refinancing the sukuk through various means including a potential sukuk issuance,” Khalid Bin Kalban, chief executive officer and managing director of Dubai Investments, said in an emailed statement without giving further details.
#Qatar denies reported plans to raise stake in Deutsche Bank | ZAWYA MENA Edition
Qatar denies reported plans to raise stake in Deutsche Bank | ZAWYA MENA Edition:
The Qatar Financial Centre released a statement on Monday distancing itself from a newspaper report which said it planned to raise its stake in Deutsche Bank.
German newspaper Handelsblatt reported on Sunday that Qatar is considering increasing its stake in Deutsche Bank from a current 6.1 percent holding.
The state-owned centre's chief executive, Yousuf Mohamed Al-Jaida, reiterated at an event last week that Qatar plans to invest 10 billion euros in Germany over the next decade.
The Qatar Financial Centre released a statement on Monday distancing itself from a newspaper report which said it planned to raise its stake in Deutsche Bank.
German newspaper Handelsblatt reported on Sunday that Qatar is considering increasing its stake in Deutsche Bank from a current 6.1 percent holding.
The state-owned centre's chief executive, Yousuf Mohamed Al-Jaida, reiterated at an event last week that Qatar plans to invest 10 billion euros in Germany over the next decade.
Oil steady but oversupply, economic growth weigh | Reuters
Oil steady but oversupply, economic growth weigh | Reuters:
Oil prices steadied on Monday after slipping by around 2 percent last week, but remained under pressure from oversupply and concern over the prospects for global economic growth and fuel demand.
Brent crude oil LCOc1 was down 10 cents a barrel at $60.18 per barrel by 0945 GMT. U.S. light crude CLc1 was down 5 cents at $51.15.
Both benchmarks fell more than 25 percent through October and November as a supply glut inflated global inventories but have stabilized over the last three weeks, trading within fairly narrow ranges as oil producers have promised to cut production.
Oil prices steadied on Monday after slipping by around 2 percent last week, but remained under pressure from oversupply and concern over the prospects for global economic growth and fuel demand.
Brent crude oil LCOc1 was down 10 cents a barrel at $60.18 per barrel by 0945 GMT. U.S. light crude CLc1 was down 5 cents at $51.15.
Both benchmarks fell more than 25 percent through October and November as a supply glut inflated global inventories but have stabilized over the last three weeks, trading within fairly narrow ranges as oil producers have promised to cut production.
#UAE energy minister says oil market is correcting | Reuters
UAE energy minister says oil market is correcting | Reuters:
The global oil market is “correcting”, UAE energy minister Suhail al-Mazrouei told reporters on Monday.
He said at an event in Dubai that he expects “everyone” to cut oil supply under a agreement reached earlier this month in Vienna between OPEC and non-OPEC exporters.
The global oil market is “correcting”, UAE energy minister Suhail al-Mazrouei told reporters on Monday.
He said at an event in Dubai that he expects “everyone” to cut oil supply under a agreement reached earlier this month in Vienna between OPEC and non-OPEC exporters.
Breakingviews - SoftBank writedown will cloud Son’s way forward | Reuters
Breakingviews - SoftBank writedown will cloud Son’s way forward | Reuters:
SoftBank’s Vision Fund is due a writedown. The Saudi Arabia-backed tech investor, with $97 billion at its disposal, reported a 27 percent gain on $28 billion of investments as of September. That success will reverse in 2019.
Since its inception in 2017, the fund has invested at optimistic-looking valuations. Take WeWork, the money-losing office sublessor. The Vision Fund and SoftBank’s investment in 2017 valued it at $20 billion, according to the Wall Street Journal, or 13 times 2018 sales using Moody’s Investors Service estimates. SoftBank bought chip designer ARM in 2016 for around $31 billion and transferred a stake to the fund.
Those prices might make sense to Chief Executive Masayoshi Son, who touts his 300-year investment vision. But they look toppy through the lens of traditional venture-capital and private-equity methods, which SoftBank says it uses. The enterprise value of IWG, WeWork’s listed competitor, is just below one times its 2019 sales, using Refinitiv estimates, making WeWork’s multiple look stratospheric.
SoftBank’s Vision Fund is due a writedown. The Saudi Arabia-backed tech investor, with $97 billion at its disposal, reported a 27 percent gain on $28 billion of investments as of September. That success will reverse in 2019.
Since its inception in 2017, the fund has invested at optimistic-looking valuations. Take WeWork, the money-losing office sublessor. The Vision Fund and SoftBank’s investment in 2017 valued it at $20 billion, according to the Wall Street Journal, or 13 times 2018 sales using Moody’s Investors Service estimates. SoftBank bought chip designer ARM in 2016 for around $31 billion and transferred a stake to the fund.
Those prices might make sense to Chief Executive Masayoshi Son, who touts his 300-year investment vision. But they look toppy through the lens of traditional venture-capital and private-equity methods, which SoftBank says it uses. The enterprise value of IWG, WeWork’s listed competitor, is just below one times its 2019 sales, using Refinitiv estimates, making WeWork’s multiple look stratospheric.
MIDEAST STOCKS-Petchems boost Saudi, telcos move in opposite directions | Reuters
MIDEAST STOCKS-Petchems boost Saudi, telcos move in opposite directions | Reuters:
Saudi Arabia’s stock market rose early on Monday, boosted by petrochemical shares, while Qatar fell as most of its banks slipped.
Oil prices were largely steady after falling 2 percent in the previous session, but remained under pressure amid weaker growth in major economies and concern about oversupply.
The Saudi Arabian index rose 0.6 percent in the first 90 minutes with Saudi Basic Industries adding 1.3 percent. Al Rajhi Bank gained 0.5 percent.
Saudi Arabia’s stock market rose early on Monday, boosted by petrochemical shares, while Qatar fell as most of its banks slipped.
Oil prices were largely steady after falling 2 percent in the previous session, but remained under pressure amid weaker growth in major economies and concern about oversupply.
The Saudi Arabian index rose 0.6 percent in the first 90 minutes with Saudi Basic Industries adding 1.3 percent. Al Rajhi Bank gained 0.5 percent.
#Qatar ready to increase its international investments | Financial Times
Qatar ready to increase its international investments | Financial Times:
Qatar signalled at the weekend that it was ready to increase its international investments and donations to bolster its overseas standing in the face of an embargo by its Gulf neighbours led by a Saudi Arabia.
In two days of diplomatic and financial overtures at the Doha Forum, a Davos-style gathering in the Qatari capital to discuss business and global affairs, Qatar demanded the 18-month blockade against it be lifted.
Speaking at the conference, Tamim bin Hamad Al Thani, the Emir of Qatar, said the only way to resolve the crisis between Qatar and the blockading countries of Saudi Arabia, United Arab Emirates, Bahrain and Egypt was by the others “lifting the siege and resolving difference through dialogue and non-interference in other countries’ internal affairs”.
Qatar signalled at the weekend that it was ready to increase its international investments and donations to bolster its overseas standing in the face of an embargo by its Gulf neighbours led by a Saudi Arabia.
In two days of diplomatic and financial overtures at the Doha Forum, a Davos-style gathering in the Qatari capital to discuss business and global affairs, Qatar demanded the 18-month blockade against it be lifted.
Speaking at the conference, Tamim bin Hamad Al Thani, the Emir of Qatar, said the only way to resolve the crisis between Qatar and the blockading countries of Saudi Arabia, United Arab Emirates, Bahrain and Egypt was by the others “lifting the siege and resolving difference through dialogue and non-interference in other countries’ internal affairs”.
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