U.S. Shale's Blows Leave Middle East Oil Sellers Staggering - Bloomberg:
The U.S. oil industry is delivering a one-two punch to Middle East producers already reeling from a collapse in prices.
A tussle is playing out in the market for so-called light oils, which have a lower sulfur content and are less dense than heavier varieties. When processed, these grades typically yield a higher amount of fuels like gasoline and naphtha. And now, American supplies are weighing on prices for such crudes as well as fuels made from them.
Light oil pumped in U.S. shale fields is increasingly making its way to Asia, undercutting sales by the likes of Saudi Arabia. Additionally, America is exporting a record amount of refined fuel, contributing to a global glut in gasoline and naphtha. That’s hurting some of the biggest members of the Organization of Petroleum Exporting Countries as they prepare to curb crude output in a bid to stabilize the market.
Thursday 27 December 2018
Oil Sell-Off Is Deepest to Follow an OPEC Output Cut in a Decade - Bloomberg
Oil Sell-Off Is Deepest to Follow an OPEC Output Cut in a Decade - Bloomberg:
Crude’s recent sell-off is a grim reminder that OPEC’s management of the oil market isn’t foolproof. The group’s Dec. 7 decision to curb output among members and allied producers was supposed to prop up sinking prices. Instead, it resulted in the worst post-cut price decline in a decade.
Global marker Brent has fallen as much as 16 percent, or nearly $10 a barrel, following the cartel’s announcement that it would trim production by 1.2 million barrels a day. That’s only pressured crude’s nearly 40 percent slide from an October high.
Not since 2008 has oil suffered such a blow in the wake of an OPEC cut -- when the cartel surprised the market with a series of curbs in the aftermath of the financial crisis. The final cut, in December 2008, saw oil sink as much as 18 percent.
Crude’s recent sell-off is a grim reminder that OPEC’s management of the oil market isn’t foolproof. The group’s Dec. 7 decision to curb output among members and allied producers was supposed to prop up sinking prices. Instead, it resulted in the worst post-cut price decline in a decade.
Global marker Brent has fallen as much as 16 percent, or nearly $10 a barrel, following the cartel’s announcement that it would trim production by 1.2 million barrels a day. That’s only pressured crude’s nearly 40 percent slide from an October high.
Not since 2008 has oil suffered such a blow in the wake of an OPEC cut -- when the cartel surprised the market with a series of curbs in the aftermath of the financial crisis. The final cut, in December 2008, saw oil sink as much as 18 percent.
#Saudi Prince's Allies Retain Jobs in Post-Khashoggi Shake-Up - Bloomberg
Saudi Prince's Allies Retain Jobs in Post-Khashoggi Shake-Up - Bloomberg:
Saudi Arabia kept key supporters of Mohammed Bin Salman in their cabinet jobs and brought in some new ones, in the first major government shake-up since the kingdom and its crown prince became the focus of an outcry over the killing of Jamal Khashoggi.
The ministers of finance, energy, economy and trade -- senior members of the crown prince’s team -- retained their positions in an overhaul announced on Thursday, when a series of royal decrees issued by King Salman were read out on national television.
The king also promoted several young royals, many of whom have worked with the 33-year-old heir to the throne. Prince Abdullah bin Bandar bin Abdulaziz was appointed to head the powerful National Guard, while other princes were named as provincial rulers.
Saudi Arabia kept key supporters of Mohammed Bin Salman in their cabinet jobs and brought in some new ones, in the first major government shake-up since the kingdom and its crown prince became the focus of an outcry over the killing of Jamal Khashoggi.
The ministers of finance, energy, economy and trade -- senior members of the crown prince’s team -- retained their positions in an overhaul announced on Thursday, when a series of royal decrees issued by King Salman were read out on national television.
The king also promoted several young royals, many of whom have worked with the 33-year-old heir to the throne. Prince Abdullah bin Bandar bin Abdulaziz was appointed to head the powerful National Guard, while other princes were named as provincial rulers.
#UAE’s real estate market on cusp of robust recovery in 2019: Al Ruwad CEO | ZAWYA MENA Edition
UAE’s real estate market on cusp of robust recovery in 2019: Al Ruwad CEO | ZAWYA MENA Edition:
The UAE’s real estate market has managed to remain stable during 2018 after overcoming the price correction wave and slowdown that began two years ago, the CEO of Al Ruwad Real Estate said.
Catalysts and laws are two key factors that will help the UAE property market witness a robust recovery in 2019, Ismail Al Hammadi told Mubasher in an exclusive interview.
He noted that the market saw the most severe price correction movement resulting from lower oil prices, the foreign-currency exchange rate against the greenback, coupled with the regional political crisis.
The UAE’s real estate market has managed to remain stable during 2018 after overcoming the price correction wave and slowdown that began two years ago, the CEO of Al Ruwad Real Estate said.
Catalysts and laws are two key factors that will help the UAE property market witness a robust recovery in 2019, Ismail Al Hammadi told Mubasher in an exclusive interview.
He noted that the market saw the most severe price correction movement resulting from lower oil prices, the foreign-currency exchange rate against the greenback, coupled with the regional political crisis.
#Saudi owes $533mln in arrears to project contractors | ZAWYA MENA Edition
Saudi owes $533mln in arrears to project contractors | ZAWYA MENA Edition:
Saudi Arabia owes nearly two billion Saudi riyals ($533 million) in arrears to local contractors for projects executed several years ago, the Gulf kingdom's top contractor said in press comments on Wednesday.
Although the Finance Ministry has recently promised to pay the debt to the contractors within 60 days, no disbursements have been made yet, Osama Al-Afaliq, chairman of the Saudi Contractors' Authority, told the Saudi Arabic language daily Al-Madina.
"About two billion riyals in stalled payments are owed to the contracting sector….there has been a long delay in paying those funds due to rifts between some contractors and the government over how much they are owed," Afaliq was quoted as saying.
Saudi Arabia owes nearly two billion Saudi riyals ($533 million) in arrears to local contractors for projects executed several years ago, the Gulf kingdom's top contractor said in press comments on Wednesday.
Although the Finance Ministry has recently promised to pay the debt to the contractors within 60 days, no disbursements have been made yet, Osama Al-Afaliq, chairman of the Saudi Contractors' Authority, told the Saudi Arabic language daily Al-Madina.
"About two billion riyals in stalled payments are owed to the contracting sector….there has been a long delay in paying those funds due to rifts between some contractors and the government over how much they are owed," Afaliq was quoted as saying.
Oil prices drop as U.S. stock markets retreat | Reuters
Oil prices drop as U.S. stock markets retreat | Reuters:
Oil prices fell on Thursday, retreating from an 8 percent rally in the previous session as Wall Street stocks also fell and the oil market focused on signs of faltering global economic growth and record production of crude.
Brent crude LCOc1 futures dropped 4.24 percent, or $2.31, to settle at $52.16 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.61 to settle at $44.61 a barrel, down 3.48 percent.
“The market is giving back some of its gains from yesterday that were brought along with the euphoria in the stock market,” said Andrew Lipow, president of Lipow Oil Associates in Houston.
Oil prices fell on Thursday, retreating from an 8 percent rally in the previous session as Wall Street stocks also fell and the oil market focused on signs of faltering global economic growth and record production of crude.
Brent crude LCOc1 futures dropped 4.24 percent, or $2.31, to settle at $52.16 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.61 to settle at $44.61 a barrel, down 3.48 percent.
“The market is giving back some of its gains from yesterday that were brought along with the euphoria in the stock market,” said Andrew Lipow, president of Lipow Oil Associates in Houston.
#Saudi king taps veteran finance chief as foreign minister to improve image | Reuters
Saudi king taps veteran finance chief as foreign minister to improve image | Reuters:
Saudi Arabia’s king put a veteran former finance minister in charge of foreign affairs on Thursday, aiming to improve the kingdom’s image after the crisis caused by the killing of a journalist and greater scrutiny of the Yemen war.
The Saudi government has come under intense international criticism over the murder of U.S.-based journalist Jamal Khashoggi inside the Saudi consulate in Istanbul in October.
It has also faced growing scepticism over its intervention in Yemen, where the United Nations says millions of people could starve to death because of supply lines disrupted by a Saudi-led war against the Houthi movement which controls the capital.
Saudi Arabia’s king put a veteran former finance minister in charge of foreign affairs on Thursday, aiming to improve the kingdom’s image after the crisis caused by the killing of a journalist and greater scrutiny of the Yemen war.
The Saudi government has come under intense international criticism over the murder of U.S.-based journalist Jamal Khashoggi inside the Saudi consulate in Istanbul in October.
It has also faced growing scepticism over its intervention in Yemen, where the United Nations says millions of people could starve to death because of supply lines disrupted by a Saudi-led war against the Houthi movement which controls the capital.
MIDEAST STOCKS-Wall Street surge buoys Gulf, #Saudi banks strong | Reuters
MIDEAST STOCKS-Wall Street surge buoys Gulf, Saudi banks strong | Reuters:
Saudi Arabia and other Gulf stock markets gained on Thursday as the sharp rebound on Wall Street overnight and Brent oil's recovery from below $50 a barrel lifted investor sentiment.
Saudi Arabia's index rose 0.5 percent with Al Rajhi Bank adding 1.1 percent.
Riyad Bank climbed for a fourth straight day, adding 1.3 percent. The stock has been buoyed by news of merger discussions with National Commercial Bank, the kingdom's biggest lender by assets, which edged down 0.3 percent.
Saudi Arabia and other Gulf stock markets gained on Thursday as the sharp rebound on Wall Street overnight and Brent oil's recovery from below $50 a barrel lifted investor sentiment.
Saudi Arabia's index rose 0.5 percent with Al Rajhi Bank adding 1.1 percent.
Riyad Bank climbed for a fourth straight day, adding 1.3 percent. The stock has been buoyed by news of merger discussions with National Commercial Bank, the kingdom's biggest lender by assets, which edged down 0.3 percent.
Close link between oil and rouble falters | Financial Times
Close link between oil and rouble falters | Financial Times:
In simpler times, it was a safe bet that the value of the Russian rouble would follow the price of oil like a shadow. Falling oil meant a falling rouble; rising oil took the currency up with it.
As the first chart shows, this held true for most of the past five years. But times are no longer so simple and this year — shown in more detail in the second chart — the correlation has broken down.
As Brett Diment, head of emerging market debt at Aberdeen Standard, wrote for the FT’s beyondbrics column this month, the rouble fell in April even as oil prices rose after the US imposed sanctions on Russia. In the fourth quarter, the rouble staged a recovery while oil prices collapsed, as the fear of further sanctions receded.
In simpler times, it was a safe bet that the value of the Russian rouble would follow the price of oil like a shadow. Falling oil meant a falling rouble; rising oil took the currency up with it.
As the first chart shows, this held true for most of the past five years. But times are no longer so simple and this year — shown in more detail in the second chart — the correlation has broken down.
As Brett Diment, head of emerging market debt at Aberdeen Standard, wrote for the FT’s beyondbrics column this month, the rouble fell in April even as oil prices rose after the US imposed sanctions on Russia. In the fourth quarter, the rouble staged a recovery while oil prices collapsed, as the fear of further sanctions receded.
#Saudi Politics, Oil and Proxy Wars: Mideast Market Risks in 2019 - Bloomberg
Saudi Politics, Oil and Proxy Wars: Mideast Market Risks in 2019 - Bloomberg:
The list of potential pitfalls for Middle East investors next year is long.
With oil in a bear market, pressure on energy exporters is mounting. Saudi Arabia’s global standing is being questioned and Washington has turned its back on Iran, opening the way for increased -- and some say destabilizing -- Russian influence.
The region has never been for the faint-hearted. Traders who snapped up Saudi assets in the first half of the year, only to see the market turn against them after the murder of columnist Jamal Khashoggi in Istanbul, are nursing steep losses. Bahrain’s friends only bailed out the nation after its bonds got a battering and Aramco’s postponed share sale has dealt a blow to investor confidence.
The list of potential pitfalls for Middle East investors next year is long.
With oil in a bear market, pressure on energy exporters is mounting. Saudi Arabia’s global standing is being questioned and Washington has turned its back on Iran, opening the way for increased -- and some say destabilizing -- Russian influence.
The region has never been for the faint-hearted. Traders who snapped up Saudi assets in the first half of the year, only to see the market turn against them after the murder of columnist Jamal Khashoggi in Istanbul, are nursing steep losses. Bahrain’s friends only bailed out the nation after its bonds got a battering and Aramco’s postponed share sale has dealt a blow to investor confidence.
U.S. Shale's Blows Leave Middle East Oil Sellers Staggering - Bloomberg
U.S. Shale's Blows Leave Middle East Oil Sellers Staggering - Bloomberg:
The U.S. oil industry is delivering a one-two punch to Middle East producers already reeling from a collapse in prices.
A tussle is playing out in the market for so-called light oils, which have a lower sulfur content and are less dense than heavier varieties. When processed, these grades typically yield a higher amount of fuels like gasoline and naphtha. And now, American supplies are weighing on prices for such crudes as well as fuels made from them.
Light oil pumped in U.S. shale fields is increasingly making its way to Asia, undercutting sales by the likes of Saudi Arabia. Additionally, America is exporting a record amount of refined fuel, contributing to a global glut in gasoline and naphtha. That’s hurting some of the biggest members of the Organization of Petroleum Exporting Countries as they prepare to curb crude output in a bid to stabilize the market.
The U.S. oil industry is delivering a one-two punch to Middle East producers already reeling from a collapse in prices.
A tussle is playing out in the market for so-called light oils, which have a lower sulfur content and are less dense than heavier varieties. When processed, these grades typically yield a higher amount of fuels like gasoline and naphtha. And now, American supplies are weighing on prices for such crudes as well as fuels made from them.
Light oil pumped in U.S. shale fields is increasingly making its way to Asia, undercutting sales by the likes of Saudi Arabia. Additionally, America is exporting a record amount of refined fuel, contributing to a global glut in gasoline and naphtha. That’s hurting some of the biggest members of the Organization of Petroleum Exporting Countries as they prepare to curb crude output in a bid to stabilize the market.
When a Big Rally in Oil Prices Only Gets You Back 1 Trading Day - Bloomberg
When a Big Rally in Oil Prices Only Gets You Back 1 Trading Day - Bloomberg:
Crude posted the biggest gain since 2016, but the rally only restored oil to levels last seen on Monday morning.
The U.S. benchmark surged 8.7 percent Wednesday to close at $46.22 a barrel. It was a rare time that oil has climbed more than a few percentage points, amid a rout that has wiped nearly 40 percent off the price of crude. The swing between the Christmas Eve carnage and Wednesday’s exuberance has kept oil market volatility at high levels after a spike in November.
“We saw the market got hit really hard and we’ve had a couple of these strong bounces and they seem to be pretty short-lived,” said Gene McGillian, manager of market research at Tradition Energy, an energy consultancy based in Stamford, Connecticut. There are still “concerns about slowing demand growth and excess supplies.”
Crude posted the biggest gain since 2016, but the rally only restored oil to levels last seen on Monday morning.
The U.S. benchmark surged 8.7 percent Wednesday to close at $46.22 a barrel. It was a rare time that oil has climbed more than a few percentage points, amid a rout that has wiped nearly 40 percent off the price of crude. The swing between the Christmas Eve carnage and Wednesday’s exuberance has kept oil market volatility at high levels after a spike in November.
“We saw the market got hit really hard and we’ve had a couple of these strong bounces and they seem to be pretty short-lived,” said Gene McGillian, manager of market research at Tradition Energy, an energy consultancy based in Stamford, Connecticut. There are still “concerns about slowing demand growth and excess supplies.”
Oil slips back toward 18-month lows on oversupply | Reuters
Oil slips back toward 18-month lows on oversupply | Reuters:
Oil prices fell more than 1 percent on Thursday after rebounding 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support.
Brent crude oil was down 70 cents, or 1.3 percent, at $53.77 a barrel by 0845 GMT. U.S. light crude oil was 50 cents lower at $45.72.
Oil prices reached multi-year highs in early October but have fallen almost 40 percent since then and are now approaching their lowest levels for 18 months.
Oil prices fell more than 1 percent on Thursday after rebounding 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support.
Brent crude oil was down 70 cents, or 1.3 percent, at $53.77 a barrel by 0845 GMT. U.S. light crude oil was 50 cents lower at $45.72.
Oil prices reached multi-year highs in early October but have fallen almost 40 percent since then and are now approaching their lowest levels for 18 months.
#Saudi Real Estate Refinance Co sets up $2.9bln sukuk programme | ZAWYA MENA Edition
Saudi Real Estate Refinance Co sets up $2.9bln sukuk programme | ZAWYA MENA Edition:
Government-owned Saudi Real Estate Refinance Co has established a programme allowing it to issue up to 11 billion riyals ($2.9 billion) of local currency-denominated Islamic bonds, the company said on Thursday.
The company mandated HSBC Saudi Arabia as sole lead manager and bookrunner to arrange meetings, and an initial, senior sukuk issue under the programme will follow, subject to market conditions, it said.
Government-owned Saudi Real Estate Refinance Co has established a programme allowing it to issue up to 11 billion riyals ($2.9 billion) of local currency-denominated Islamic bonds, the company said on Thursday.
The company mandated HSBC Saudi Arabia as sole lead manager and bookrunner to arrange meetings, and an initial, senior sukuk issue under the programme will follow, subject to market conditions, it said.
Mideast Stocks: Wall Street surge boosts Gulf, real estate lifts #Dubai | ZAWYA MENA Edition
Mideast Stocks: Wall Street surge boosts Gulf, real estate lifts Dubai | ZAWYA MENA Edition:
Saudi Arabia and most other major Gulf stock markets rose in early trade on Thursday, buoyed by the sharp rebound on Wall Street overnight and Brent oil's recovery from below $50 a barrel.
Saudi Arabia's index rose 0.8 percent in the first 75 minutes with all 14 petrochemical stocks rising; Saudi Basic Industries increased 0.4 percent.
Riyad Bank climbed for a fourth straight day, adding 1.5 percent. The stock has been buoyed by news of merger discussions with National Commercial Bank, the kingdom's biggest lender by assets, which edged up 0.1 percent.
Saudi Arabia and most other major Gulf stock markets rose in early trade on Thursday, buoyed by the sharp rebound on Wall Street overnight and Brent oil's recovery from below $50 a barrel.
Saudi Arabia's index rose 0.8 percent in the first 75 minutes with all 14 petrochemical stocks rising; Saudi Basic Industries increased 0.4 percent.
Riyad Bank climbed for a fourth straight day, adding 1.5 percent. The stock has been buoyed by news of merger discussions with National Commercial Bank, the kingdom's biggest lender by assets, which edged up 0.1 percent.
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