OPEC Production Falls in June as Cartel Moves to Prolong Cuts - Bloomberg:
OPEC’s output fell for a seventh consecutive month as the group signaled it would keep supplies restrained at least until the end of the year.
Crude production in June dropped to 30 million barrels a day as U.S. sanctions further curtailed Iranian shipments and Saudi Arabia chose to pare back its output. The supply drop underscores the kingdom’s determination to keep the oil market tight, having just secured an agreement with Russia to extend output cuts for as much as nine months.
June output was 130,000 barrels a day lower than May, bringing the total reduction since the group agreed a fresh round of output cuts last year to about 2.5 million barrels a day. Despite that significant curtailment -- a combination of voluntary cuts and involuntary supply disruptions -- crude has been languishing at about $65 a barrel in London due to fears that global demand is weakening.
Sunday 30 June 2019
OPEC Oil Curbs Slash #Saudi Economic Growth by More Than Half - Bloomberg
OPEC Oil Curbs Slash Saudi Economic Growth by More Than Half - Bloomberg:
Saudi Arabia’s economy is feeling the sting of oil output cuts just as it looks to extend the OPEC+ agreement at current production levels for the rest of this year and possibly beyond.
Gross domestic product expanded an annual 1.7% in the first quarter, the kingdom’s statistics authority said on Sunday, down from 3.6% in the previous three months. Growth in the oil sector stood at 1%, compared with 6% in the fourth quarter of 2018.
“The deceleration was expected with the OPEC production cut deal," said Monica Malik, chief economist at Abu Dhabi Commercial Bank. She predicts a contraction in the oil sector from the second quarter onward.
Saudi Arabia’s economy is feeling the sting of oil output cuts just as it looks to extend the OPEC+ agreement at current production levels for the rest of this year and possibly beyond.
Gross domestic product expanded an annual 1.7% in the first quarter, the kingdom’s statistics authority said on Sunday, down from 3.6% in the previous three months. Growth in the oil sector stood at 1%, compared with 6% in the fourth quarter of 2018.
“The deceleration was expected with the OPEC production cut deal," said Monica Malik, chief economist at Abu Dhabi Commercial Bank. She predicts a contraction in the oil sector from the second quarter onward.
#Saudi central bank studying license requests for two new banks: SAMA governor - Reuters
Saudi central bank studying license requests for two new banks: SAMA governor - Reuters:
Saudi Arabia’s central bank is reviewing license requests for two new Saudi banks, Saudi Arabian Monetary Authority (SAMA) Governor Ahmed al-Kholifey said in an interview with Al Arabiya TV on Sunday, without providing any further details.
Saudi Arabia’s central bank is reviewing license requests for two new Saudi banks, Saudi Arabian Monetary Authority (SAMA) Governor Ahmed al-Kholifey said in an interview with Al Arabiya TV on Sunday, without providing any further details.
MIDEAST STOCKS-Trade war truce lifts Gulf markets, #Dubai leads gains - Reuters
MIDEAST STOCKS-Trade war truce lifts Gulf markets, Dubai leads gains - Reuters:
Most major Gulf markets gained on
Sunday, reacting to positive global market sentiment after the
United States and China agreed to a trade war truce at the G20
meeting.
The two powers agreed on Saturday to restart trade talks
after U.S. President Donald Trump offered concessions including
no new tariffs and an easing of restrictions on the Chinese tech
company Huawei.
Dubai's index rose 1.2%, lifted by the largest
lender in the emirate, Emirates NBD, rising 4.1% after
getting banking regulatory approval to acquire shares in
Turkey's Denizbank from Russia's Sberbank.
Most major Gulf markets gained on
Sunday, reacting to positive global market sentiment after the
United States and China agreed to a trade war truce at the G20
meeting.
The two powers agreed on Saturday to restart trade talks
after U.S. President Donald Trump offered concessions including
no new tariffs and an easing of restrictions on the Chinese tech
company Huawei.
Dubai's index rose 1.2%, lifted by the largest
lender in the emirate, Emirates NBD, rising 4.1% after
getting banking regulatory approval to acquire shares in
Turkey's Denizbank from Russia's Sberbank.
#Qatar shows commitment to Lebanon financial stability: finance minister - Reuters
Qatar shows commitment to Lebanon financial stability: finance minister - Reuters:
The Lebanese finance minister said on Sunday that Qatar’s position on purchasing Lebanese government bonds was serious and showed a commitment to the country’s financial stability.
A Qatari government official said earlier that Qatar had bought some Lebanese government bonds as part of a $500 investment in the Lebanese economy.
“The Qatari talk is serious and expresses a commitment to the promise that was previously made to support financial stability in Lebanon,” Finance Minister Ali Hassan Khalil told Reuters.
The Lebanese finance minister said on Sunday that Qatar’s position on purchasing Lebanese government bonds was serious and showed a commitment to the country’s financial stability.
A Qatari government official said earlier that Qatar had bought some Lebanese government bonds as part of a $500 investment in the Lebanese economy.
“The Qatari talk is serious and expresses a commitment to the promise that was previously made to support financial stability in Lebanon,” Finance Minister Ali Hassan Khalil told Reuters.
MENA fund managers continue to increase investments in Kuwait: Poll | ZAWYA MENA Edition
MENA fund managers continue to increase investments in Kuwait: Poll | ZAWYA MENA Edition:
Middle Eastern funds plan to continue increasing their investments in Kuwait over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
A third of the managers who took part in the poll said they would increase investment in Egypt, and the same proportion said they would decrease investment in Qatar.
Six of the 11 fund managers polled said they would increase their investments in Kuwait, continuing a trend from previous months.
Middle Eastern funds plan to continue increasing their investments in Kuwait over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
A third of the managers who took part in the poll said they would increase investment in Egypt, and the same proportion said they would decrease investment in Qatar.
Six of the 11 fund managers polled said they would increase their investments in Kuwait, continuing a trend from previous months.
ADNOC closes $4bln pipeline deal with KKR and BlackRock | ZAWYA MENA Edition
ADNOC closes $4bln pipeline deal with KKR and BlackRock | ZAWYA MENA Edition:
Abu Dhabi National Oil Company (ADNOC) has completed a deal for BlackRock and KKR to acquire a 40 per cent stake in ADNOC Oil Pipelines for $4 billion.
In a statement, ADNOC said that the KKR and BlackRock investment was successfully funded through their global infrastructure funds and financed by a syndicate of international banks.
The agreement will see BlackRock and KKR acquiring a combined 40 per cent stake in a newly formed entity, ADNOC Oil Pipelines.
Abu Dhabi National Oil Company (ADNOC) has completed a deal for BlackRock and KKR to acquire a 40 per cent stake in ADNOC Oil Pipelines for $4 billion.
In a statement, ADNOC said that the KKR and BlackRock investment was successfully funded through their global infrastructure funds and financed by a syndicate of international banks.
The agreement will see BlackRock and KKR acquiring a combined 40 per cent stake in a newly formed entity, ADNOC Oil Pipelines.
#AbuDhabi Securities Exchange cut trading commission by up to 90% | ZAWYA MENA Edition
Abu Dhabi Securities Exchange cut trading commission by up to 90% | ZAWYA MENA Edition:
The Abu Dhabi Securities Exchange (ADX) said on Sunday it was cutting its trading commission fees by between 50% and 90% as it seeks to attract investors into the market.
The measure comes amid Abu Dhabi's wider plans to lower costs and reduce barriers for doing business as part of a 50 billion dirhams ($13.62 billion) stimulus package launched last year to bolster the emirate's economy.
The new trading commission fees will be effective from July 1, 2019, ADX said in a statement.
The Abu Dhabi Securities Exchange (ADX) said on Sunday it was cutting its trading commission fees by between 50% and 90% as it seeks to attract investors into the market.
The measure comes amid Abu Dhabi's wider plans to lower costs and reduce barriers for doing business as part of a 50 billion dirhams ($13.62 billion) stimulus package launched last year to bolster the emirate's economy.
The new trading commission fees will be effective from July 1, 2019, ADX said in a statement.
Shale Fight Makes OPEC Accept Lowest Market Share Since 1991 - Bloomberg
Shale Fight Makes OPEC Accept Lowest Market Share Since 1991 - Bloomberg:
For almost three decades, OPEC has always pumped at least 30% of the world’s crude oil, creating an informal floor for Saudi Arabia and its allies in the cartel. The level has survived everything from wars and economic crises to terrorist attacks and diplomatic spats.
Yet, with OPEC set to extend output cuts for the rest of the year and potentially into early 2020, its share of the oil market is all but certain to drop below 30% for the first time since 1991, according to Bloomberg News calculations.
The sliding market share of the Organization of Petroleum Exporting Countries, which meets in Vienna on Monday, highlights how the cartel keeps giving ground to rising U.S. shale production in pursuit of higher prices.
For almost three decades, OPEC has always pumped at least 30% of the world’s crude oil, creating an informal floor for Saudi Arabia and its allies in the cartel. The level has survived everything from wars and economic crises to terrorist attacks and diplomatic spats.
Yet, with OPEC set to extend output cuts for the rest of the year and potentially into early 2020, its share of the oil market is all but certain to drop below 30% for the first time since 1991, according to Bloomberg News calculations.
The sliding market share of the Organization of Petroleum Exporting Countries, which meets in Vienna on Monday, highlights how the cartel keeps giving ground to rising U.S. shale production in pursuit of higher prices.
#Dubai's DP World in `Very Advanced' Talks to Buy Topaz Energy - Bloomberg
Dubai's DP World in `Very Advanced' Talks to Buy Topaz Energy - Bloomberg:
DP World Plc is in advanced discussions to acquire Topaz Energy & Marine Plc in what would be the Dubai-based company’s first venture into the oil and gas sector.
The world’s largest port operator is in "very advanced" discussions to acquire Dubai-based Topaz, DP World said in a statement. There can be no certainty of a transaction, the company said.
Sky News reported earlier that a $1.3 billion deal could be announced as early as Monday, without specifying whether the valuation was referring to the equity or enterprise value of the transaction.
DP World Plc is in advanced discussions to acquire Topaz Energy & Marine Plc in what would be the Dubai-based company’s first venture into the oil and gas sector.
The world’s largest port operator is in "very advanced" discussions to acquire Dubai-based Topaz, DP World said in a statement. There can be no certainty of a transaction, the company said.
Sky News reported earlier that a $1.3 billion deal could be announced as early as Monday, without specifying whether the valuation was referring to the equity or enterprise value of the transaction.
Endorsed by Trump, #Saudi Prince Steps Back Out on World Stage - Bloomberg
Endorsed by Trump, Saudi Prince Steps Back Out on World Stage - Bloomberg:
Seven months ago Saudi Arabia’s Crown Prince Mohammed Bin Salman seemed like the loneliest leader at the party.
Attending the Group of 20 summit in Argentina, he spent two days holed up in the Saudi residence in a posh neighborhood in the capital, avoiding a firestorm over the murder of columnist and Saudi critic Jamal Khashoggi.
When he did emerge he was lectured by the leaders of the U.K., Canada and France. U.S. President Donald Trump dodged a chat with him. A rare bright spot was Russian President Vladimir Putin, with whom he shared a firm handshake and smiles.
Seven months ago Saudi Arabia’s Crown Prince Mohammed Bin Salman seemed like the loneliest leader at the party.
Attending the Group of 20 summit in Argentina, he spent two days holed up in the Saudi residence in a posh neighborhood in the capital, avoiding a firestorm over the murder of columnist and Saudi critic Jamal Khashoggi.
When he did emerge he was lectured by the leaders of the U.K., Canada and France. U.S. President Donald Trump dodged a chat with him. A rare bright spot was Russian President Vladimir Putin, with whom he shared a firm handshake and smiles.
Top five MENA venture capital deals in Q2 2019 | ZAWYA MENA Edition
Top five MENA venture capital deals in Q2 2019 | ZAWYA MENA Edition:
Venture capital (VC) firms in the UAE and Saudi Arabia played a key role in driving many deals in the second quarter of 2019. The top five disclosed VC deals in MENA region amounted to $98.5 million. The credit goes to Egypt-based Swvl for bagging the biggest venture capital investment in the second quarter of 2019.
Here are the top five VC deals in the second quarter of 2019.
Venture capital (VC) firms in the UAE and Saudi Arabia played a key role in driving many deals in the second quarter of 2019. The top five disclosed VC deals in MENA region amounted to $98.5 million. The credit goes to Egypt-based Swvl for bagging the biggest venture capital investment in the second quarter of 2019.
Here are the top five VC deals in the second quarter of 2019.
#SaudiArabia's economy grows 1.66% in first quarter - Reuters
Saudi Arabia's economy grows 1.66% in first quarter - Reuters:
Saudi Arabia’s economy grew 1.66% in the first quarter, in line with expectations of a modest pick up as oil production cuts weigh on the world’s top crude exporter.
The Saudi oil sector grew 1% in the first quarter, government data showed on Sunday. This was almost twice the rate reached in the same period a year ago but a massive slowdown from the previous quarter, when the oil sector grew by almost 6% year-on-year.
The Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies agreed in December to slash oil production by more than the market had expected.
Saudi Arabia’s economy grew 1.66% in the first quarter, in line with expectations of a modest pick up as oil production cuts weigh on the world’s top crude exporter.
The Saudi oil sector grew 1% in the first quarter, government data showed on Sunday. This was almost twice the rate reached in the same period a year ago but a massive slowdown from the previous quarter, when the oil sector grew by almost 6% year-on-year.
The Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies agreed in December to slash oil production by more than the market had expected.
MIDEAST-STOCKS-Financials lift #Dubai, most Gulf markets rise - Reuters
MIDEAST-STOCKS-Financials lift Dubai, most Gulf markets rise - Reuters:
Dubai stocks rose on Sunday, lifted by financials and real estate, while other Gulf markets also gained after falling in recent sessions amid concerns about rising geopolitical risk in the region.
Dubai’s stock index was up 1.3% in early trade with the largest lender in the emirate, Emirates NBD, rising 5.5% after getting banking regulatory approval to acquire the shares of Turkey’s Denizbank from Russia’s Sberbank.
Emirates NBD said in April that it would buy Denizbank from Sberbank for 15.48 billion lira ($2.68 billion), a roughly 20 percent discount to a previously agreed price.
Dubai stocks rose on Sunday, lifted by financials and real estate, while other Gulf markets also gained after falling in recent sessions amid concerns about rising geopolitical risk in the region.
Dubai’s stock index was up 1.3% in early trade with the largest lender in the emirate, Emirates NBD, rising 5.5% after getting banking regulatory approval to acquire the shares of Turkey’s Denizbank from Russia’s Sberbank.
Emirates NBD said in April that it would buy Denizbank from Sberbank for 15.48 billion lira ($2.68 billion), a roughly 20 percent discount to a previously agreed price.
Saturday 29 June 2019
Russia Completes Its OPEC Takeover With Japan Deal: Oil Strategy - Bloomberg
Russia Completes Its OPEC Takeover With Japan Deal: Oil Strategy - Bloomberg:
The trouble with bringing new people into your club, especially if they are bigger than you, is that they might just take over. OPEC is learning that lesson.
Three years ago, suffering a collapse in oil prices, OPEC sought outside help to cut oil supplies in order to drain excess inventories that had built up over the previous two years. It eventually succeeded in securing the help of a group of non-OPEC countries.
Most of them added little to this new OPEC+ club. The output cuts they offered were, in many cases, going to happen anyway, as a result of natural declines through a lack of investment or dwindling reserves.
The trouble with bringing new people into your club, especially if they are bigger than you, is that they might just take over. OPEC is learning that lesson.
Three years ago, suffering a collapse in oil prices, OPEC sought outside help to cut oil supplies in order to drain excess inventories that had built up over the previous two years. It eventually succeeded in securing the help of a group of non-OPEC countries.
Most of them added little to this new OPEC+ club. The output cuts they offered were, in many cases, going to happen anyway, as a result of natural declines through a lack of investment or dwindling reserves.
Russia, #Saudi deal shows commitment to oil market stability: Novak - Reuters
Russia, Saudi deal shows commitment to oil market stability: Novak - Reuters:
Russia’s deal with Saudi Arabia on crude production cuts shows their commitment to stabilizing the oil market, Russian Energy Minister Alexander Novak said in a statement on Saturday.
Russia has agreed with Saudi Arabia to extend by six to nine months a deal with OPEC on reducing oil production.
Russia’s deal with Saudi Arabia on crude production cuts shows their commitment to stabilizing the oil market, Russian Energy Minister Alexander Novak said in a statement on Saturday.
Russia has agreed with Saudi Arabia to extend by six to nine months a deal with OPEC on reducing oil production.
#Iran's OPEC Veteran Weathers Storms From Trump to Saudi Arabia - Bloomberg
Iran's OPEC Veteran Weathers Storms From Trump to Saudi Arabia - Bloomberg:
Iran’s Bijan Namdar Zanganeh is OPEC’s longest serving oil minister.
During 14 years spent shuttling between Tehran and the cartel’s Vienna headquarters, he’s proved himself adept at both the closed-door horsetrading, where policy gets decided, and the uniquely chaotic brand of public diplomacy ministers use to talk to the global oil market.
But he arrives for Monday’s meeting, his 48th, under pressure on several fronts.
Iran’s Bijan Namdar Zanganeh is OPEC’s longest serving oil minister.
During 14 years spent shuttling between Tehran and the cartel’s Vienna headquarters, he’s proved himself adept at both the closed-door horsetrading, where policy gets decided, and the uniquely chaotic brand of public diplomacy ministers use to talk to the global oil market.
But he arrives for Monday’s meeting, his 48th, under pressure on several fronts.
Former #Abraaj executive pleads guilty to U.S. charges | ZAWYA MENA Edition
Former Abraaj executive pleads guilty to U.S. charges | ZAWYA MENA Edition:
A former executive of collapsed Dubai private equity firm Abraaj Capital Ltd on Friday pleaded guilty to U.S. fraud and conspiracy charges, admitting that he lied to investors about the firm's financial health and track record.
Former Abraaj Managing Partner Mustafa Abdel-Wadood, 49, entered his plea before Magistrate Judge Gabriel Gorenstein in Manhattan. He has agreed to cooperate with U.S. prosecutors in a criminal fraud case targeting five other former Abraaj executives.
In a prepared statement read in court, Abdel-Wadood said he deceived investors at the direction of Abraaj founder Arif Naqvi, who is fighting extradition to the United States in London.
A former executive of collapsed Dubai private equity firm Abraaj Capital Ltd on Friday pleaded guilty to U.S. fraud and conspiracy charges, admitting that he lied to investors about the firm's financial health and track record.
Former Abraaj Managing Partner Mustafa Abdel-Wadood, 49, entered his plea before Magistrate Judge Gabriel Gorenstein in Manhattan. He has agreed to cooperate with U.S. prosecutors in a criminal fraud case targeting five other former Abraaj executives.
In a prepared statement read in court, Abdel-Wadood said he deceived investors at the direction of Abraaj founder Arif Naqvi, who is fighting extradition to the United States in London.
Rebuked by many, #Saudi crown prince feted at G20 summit
Rebuked by many, Saudi crown prince feted at G20 summit:
For many he’s an international pariah, but you wouldn’t know it by the lavish reception Saudi Crown Prince Mohammed bin Salman has received at the G-20 summit this week.
He beamed as he stood front and center, sandwiched between President Donald Trump and Japanese Prime Minister Shinzo Abe, for a group photo. He exchanged an impish grin as he sat down next to Russian President Vladimir Putin. He posed with South Korean President Moon Jae-in and a group of flag-waving kids ahead of an earlier signing ceremony for $8 billion in deals.
Even as rebukes pile up elsewhere — a U.N. expert has called for an investigation of his alleged role in the killing of a prominent journalist, and a growing number of Americans are questioning their nation’s support for his kingdom and its role in the war in Yemen — some leaders in Osaka have gone out of their way to make sure the prince feels comfortable.
For many he’s an international pariah, but you wouldn’t know it by the lavish reception Saudi Crown Prince Mohammed bin Salman has received at the G-20 summit this week.
He beamed as he stood front and center, sandwiched between President Donald Trump and Japanese Prime Minister Shinzo Abe, for a group photo. He exchanged an impish grin as he sat down next to Russian President Vladimir Putin. He posed with South Korean President Moon Jae-in and a group of flag-waving kids ahead of an earlier signing ceremony for $8 billion in deals.
Even as rebukes pile up elsewhere — a U.N. expert has called for an investigation of his alleged role in the killing of a prominent journalist, and a growing number of Americans are questioning their nation’s support for his kingdom and its role in the war in Yemen — some leaders in Osaka have gone out of their way to make sure the prince feels comfortable.
Pakistan signs $375 million syndicated loan with #UAE banks - Reuters
Pakistan signs $375 million syndicated loan with UAE banks - Reuters:
Pakistan signed a $375 million syndicated loan with banks in the United Arab Emirates in June made up of conventional and Islamic banking tranches, the Pakistani government said on Saturday.
The tranches were fully subscribed by a syndicate of leading UAE banks, the government statement said.
Emirates NBD Capital Limited was global coordinator. The transaction was anchored and arranged by Commercial Bank of Dubai, Emirates NBD Bank, Noor Bank, Dubai Islamic Bank, Mashreqbank and Sharjah Islamic Bank.
Pakistan signed a $375 million syndicated loan with banks in the United Arab Emirates in June made up of conventional and Islamic banking tranches, the Pakistani government said on Saturday.
The tranches were fully subscribed by a syndicate of leading UAE banks, the government statement said.
Emirates NBD Capital Limited was global coordinator. The transaction was anchored and arranged by Commercial Bank of Dubai, Emirates NBD Bank, Noor Bank, Dubai Islamic Bank, Mashreqbank and Sharjah Islamic Bank.
Russia agrees with #Saudi to extend OPEC deal by 6-9 months: Putin - Reuters
Russia agrees with Saudi to extend OPEC deal by 6-9 months: Putin - Reuters:
Russia has agreed with Saudi Arabia to extend by six to nine months a deal with OPEC on reducing oil production, Russian President Vladimir Putin said.
Putin, speaking after talks with Saudi Crown Prince Mohammed bin Salman, told a news conference the deal would be extended in its current form and with the same volumes.
The Organization of Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, meet on July 1-2 to discuss the deal that involves curbing oil output by 1.2 million barrels per day (bpd). The pact expires after June 30.
Russia has agreed with Saudi Arabia to extend by six to nine months a deal with OPEC on reducing oil production, Russian President Vladimir Putin said.
Putin, speaking after talks with Saudi Crown Prince Mohammed bin Salman, told a news conference the deal would be extended in its current form and with the same volumes.
The Organization of Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, meet on July 1-2 to discuss the deal that involves curbing oil output by 1.2 million barrels per day (bpd). The pact expires after June 30.
Friday 28 June 2019
#Qatar Starts to Make Good on $500 Million Bond Pledge to Lebanon - Bloomberg
Qatar Starts to Make Good on $500 Million Bond Pledge to Lebanon - Bloomberg:
Qatar has bought some bonds in a planned $500 million investment in Lebanese debt and remains committed to completing its pledge, according to a Qatari government official.
The gas-rich country intends to make the rest of the investment as announced in January, the official said, without providing a time line to complete the deal. The official asked not be identified because the information isn’t public. Lebanon's dollar bonds rallied on Friday, lowering the yield by the most in a week.
Lebanon, one of the world’s most indebted nations that spends almost half its fiscal revenue just on interest payments, has been seeking funds from other countries for months after Qatar made its pledge.
Qatar has bought some bonds in a planned $500 million investment in Lebanese debt and remains committed to completing its pledge, according to a Qatari government official.
The gas-rich country intends to make the rest of the investment as announced in January, the official said, without providing a time line to complete the deal. The official asked not be identified because the information isn’t public. Lebanon's dollar bonds rallied on Friday, lowering the yield by the most in a week.
Lebanon, one of the world’s most indebted nations that spends almost half its fiscal revenue just on interest payments, has been seeking funds from other countries for months after Qatar made its pledge.
U.S. Oil Output Tops 12 Million Barrels a Day for First Time - Bloomberg
U.S. Oil Output Tops 12 Million Barrels a Day for First Time - Bloomberg:
U.S. crude output soared to new heights in April, highlighting OPEC’s dilemma just days before the producer group meets amid growing geopolitical threats.
A government report on Friday showed U.S. production grew 2.1% in April to 12.16 million barrels a day. Booming shale production from places like the Permian basin of West Texas have enabled U.S. oil output to overtake Saudi Arabia and Russia.
At the same time, trade disputes and escalating tensions in the Persian Gulf have clouded the outlook for the Organization of Petroleum Exporting Countries, which is expected to extend current output cuts next week.
U.S. crude output soared to new heights in April, highlighting OPEC’s dilemma just days before the producer group meets amid growing geopolitical threats.
A government report on Friday showed U.S. production grew 2.1% in April to 12.16 million barrels a day. Booming shale production from places like the Permian basin of West Texas have enabled U.S. oil output to overtake Saudi Arabia and Russia.
At the same time, trade disputes and escalating tensions in the Persian Gulf have clouded the outlook for the Organization of Petroleum Exporting Countries, which is expected to extend current output cuts next week.
Oil Falls as EU Adds Iran Sanctions Workaround Before G-20, OPEC - Bloomberg
Oil Falls as EU Adds Iran Sanctions Workaround Before G-20, OPEC - Bloomberg:
The U.S.-Iran standoff and shrinking American crude stockpiles propelled oil to its biggest monthly gain since January. Prices tumbled immediately before Friday’s close as traders closed positions and the EU said a workaround to Iran sanctions was in operation.
Futures in New York tumbled on Friday amid weak U.S. manufacturing data and word that Europe had launched an attempted workaround to American sanctions on Iran. Still, prices gained 9.3% in June, with traders hoping for progress on trade out of a Saturday meeting between U.S. President Donald Trump and China’s Xi Jinping. OPEC and allied oil producers are then scheduled to gather in Vienna on Monday to discuss production levels.
West Texas Intermediate for August delivery fell 96 cents to $58.47 a barrel at the close of New York Mercantile Exchange trading. Brent for September settlement lost 93 cents to $64.74 on London’s ICE Futures Europe Exchange. The August contract, which expired Friday, was unchanged.
The U.S.-Iran standoff and shrinking American crude stockpiles propelled oil to its biggest monthly gain since January. Prices tumbled immediately before Friday’s close as traders closed positions and the EU said a workaround to Iran sanctions was in operation.
Futures in New York tumbled on Friday amid weak U.S. manufacturing data and word that Europe had launched an attempted workaround to American sanctions on Iran. Still, prices gained 9.3% in June, with traders hoping for progress on trade out of a Saturday meeting between U.S. President Donald Trump and China’s Xi Jinping. OPEC and allied oil producers are then scheduled to gather in Vienna on Monday to discuss production levels.
West Texas Intermediate for August delivery fell 96 cents to $58.47 a barrel at the close of New York Mercantile Exchange trading. Brent for September settlement lost 93 cents to $64.74 on London’s ICE Futures Europe Exchange. The August contract, which expired Friday, was unchanged.
Epic Collapse of #Dubai-Based #Abraaj Nets U.S. Guilty Plea - Bloomberg
Epic Collapse of Dubai-Based Abraaj Nets U.S. Guilty Plea - Bloomberg:
A former executive at Abraaj Group pleaded guilty to conspiracy charges and agreed to cooperate with a U.S. probe of a scheme that helped lead to the world’s biggest private-equity insolvency in 2018.
Mustafa Abdel-Wadood, a former managing partner at the Dubai-based firm, appeared in federal court in Manhattan on Friday to admit he lied to investors across the globe in an attempt to hide losses at Abraaj and raise more money. He’s one of six former Abraaj executives facing racketeering and securities-fraud charges following an investigation by New York prosecutors.
The 49-year-old with Egyptian and Maltese citizenships was arrested in April in New York while on a college-shopping trip with his wife and son. Since then, he has been confined to his home in New York and subject to a $10 million bond. Abdel-Wadood is the only defendant to appear in court in the U.S.
A former executive at Abraaj Group pleaded guilty to conspiracy charges and agreed to cooperate with a U.S. probe of a scheme that helped lead to the world’s biggest private-equity insolvency in 2018.
Mustafa Abdel-Wadood, a former managing partner at the Dubai-based firm, appeared in federal court in Manhattan on Friday to admit he lied to investors across the globe in an attempt to hide losses at Abraaj and raise more money. He’s one of six former Abraaj executives facing racketeering and securities-fraud charges following an investigation by New York prosecutors.
The 49-year-old with Egyptian and Maltese citizenships was arrested in April in New York while on a college-shopping trip with his wife and son. Since then, he has been confined to his home in New York and subject to a $10 million bond. Abdel-Wadood is the only defendant to appear in court in the U.S.
Oil prices steady; set for weekly gain ahead of G20 talks, OPEC - Reuters
Oil prices steady; set for weekly gain ahead of G20 talks, OPEC - Reuters:
Oil prices were little changed on Friday and were on track for a second straight week of gains, ahead of talks over the trade dispute between the U.S. and Chinese presidents this weekend and on production cuts from OPEC on Monday.
Brent August crude LCOc1 futures were up 19 cents at $66.74 a barrel by 1:50 p.m. ET (1750 GMT), ahead of expiry. U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 14 cents at $59.29 a barrel. The most active September Brent crude futures LCOU9 was down 16 cents at $65.51 a barrel.
Brent was on course for a gain of around 25% in the first half of 2019 and WTI for a 30% gain. Both contracts were also set to notch their second straight weekly gain.
Oil prices were little changed on Friday and were on track for a second straight week of gains, ahead of talks over the trade dispute between the U.S. and Chinese presidents this weekend and on production cuts from OPEC on Monday.
Brent August crude LCOc1 futures were up 19 cents at $66.74 a barrel by 1:50 p.m. ET (1750 GMT), ahead of expiry. U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 14 cents at $59.29 a barrel. The most active September Brent crude futures LCOU9 was down 16 cents at $65.51 a barrel.
Brent was on course for a gain of around 25% in the first half of 2019 and WTI for a 30% gain. Both contracts were also set to notch their second straight weekly gain.
Oil Set for Best Month Since January Before Crucial Meetings - Bloomberg
Oil Set for Best Month Since January Before Crucial Meetings - Bloomberg:
The U.S.-Iran standoff and falling American stockpiles have propelled oil toward its biggest monthly gain since January but crucial meetings in the next few days will determine whether the rally continues.
Futures in New York declined Friday, paring their advance in June to about 11%. Investors are focused on the meeting Saturday in Osaka between the U.S. and Chinese leaders for any progress on defusing the trade war. OPEC and its allies will then gather in Vienna on Monday and Tuesday to decide on the group’s production levels. Russia’s energy minister said his country is still in talks on the future of the group’s supply cuts deal.
Growing gloom over the global economic outlook spurred by the trade war snubbed out oil’s rally in late April, and pushed it down more than 20% before attacks on tankers in the Middle East gave prices a lift. While President Donald Trump has threatened this week to impose more tariffs on Chinese goods, there is some hope he may agree to another truce while negotiations resume. Meanwhile, most analysts expect the Organization of Petroleum Exporting Countries to roll over their output cuts for the rest of the year.
The U.S.-Iran standoff and falling American stockpiles have propelled oil toward its biggest monthly gain since January but crucial meetings in the next few days will determine whether the rally continues.
Futures in New York declined Friday, paring their advance in June to about 11%. Investors are focused on the meeting Saturday in Osaka between the U.S. and Chinese leaders for any progress on defusing the trade war. OPEC and its allies will then gather in Vienna on Monday and Tuesday to decide on the group’s production levels. Russia’s energy minister said his country is still in talks on the future of the group’s supply cuts deal.
Growing gloom over the global economic outlook spurred by the trade war snubbed out oil’s rally in late April, and pushed it down more than 20% before attacks on tankers in the Middle East gave prices a lift. While President Donald Trump has threatened this week to impose more tariffs on Chinese goods, there is some hope he may agree to another truce while negotiations resume. Meanwhile, most analysts expect the Organization of Petroleum Exporting Countries to roll over their output cuts for the rest of the year.
OPEC Keen to Extend Cut, Russia Is Circumspect: Reality Check - Bloomberg
OPEC Keen to Extend Cut, Russia Is Circumspect: Reality Check - Bloomberg:
For an OPEC+ meeting in which the key decision over an output-cut extension is supposedly “in the bag,” according to Saudi Arabia’s Energy Minister Khalid Al-Falih, Monday’s gathering in Vienna could be as closely watched as any during the three-year coalition.
The Organization of Petroleum Exporting Countries and its allies convene next week to discuss extending a 1.2 million barrel-a-day cut into the second half. While the cartel’s three biggest members – Saudi Arabia, Iraq and the United Arab Emirates – are all willing to continue the policy of reduced production, Russia remains circumspect, prompting questions over potential changes to policy.
Meanwhile, myriad uncertainties cloud the oil market outlook. An ongoing U.S. and China trade spat is stoking fears over demand growth, while escalating tension between the U.S. and Iran has heightened geopolitical risk in the world’s biggest oil-producing region.
For an OPEC+ meeting in which the key decision over an output-cut extension is supposedly “in the bag,” according to Saudi Arabia’s Energy Minister Khalid Al-Falih, Monday’s gathering in Vienna could be as closely watched as any during the three-year coalition.
The Organization of Petroleum Exporting Countries and its allies convene next week to discuss extending a 1.2 million barrel-a-day cut into the second half. While the cartel’s three biggest members – Saudi Arabia, Iraq and the United Arab Emirates – are all willing to continue the policy of reduced production, Russia remains circumspect, prompting questions over potential changes to policy.
Meanwhile, myriad uncertainties cloud the oil market outlook. An ongoing U.S. and China trade spat is stoking fears over demand growth, while escalating tension between the U.S. and Iran has heightened geopolitical risk in the world’s biggest oil-producing region.
Oil prices slip ahead of G20 talks, OPEC meet - Reuters
Oil prices slip ahead of G20 talks, OPEC meet - Reuters:
Oil prices eased on Friday as traders awaited any update on the Sino-U.S. trade war from a scheduled weekend meeting of the two countries’ presidents at the G20, and eyed next week’s OPEC gathering.
Brent crude LCOc1 futures were down 35 cents, or 0.5%, at $66.20 per barrel by 0644 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 30 cents, or 0.5%, at $59.13 a barrel.
Oil prices eased on Friday as traders awaited any update on the Sino-U.S. trade war from a scheduled weekend meeting of the two countries’ presidents at the G20, and eyed next week’s OPEC gathering.
Brent crude LCOc1 futures were down 35 cents, or 0.5%, at $66.20 per barrel by 0644 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 30 cents, or 0.5%, at $59.13 a barrel.
#SaudiArabia's hometown ambitions could clip wealth fund's wings - Reuters
Saudi Arabia's hometown ambitions could clip wealth fund's wings - Reuters:
Saudi Arabia’s Public Investment Fund (PIF) risks being pulled deeper into Crown Prince Mohammed bin Salman’s domestic projects, curbing its international ambitions and tying its fortunes closer to its home market, four sources familiar with its strategy said.
Unusually for a sovereign wealth fund, which typically is solely focused on generating wealth for future generations, PIF has a two-pronged mandate - it is also expected to develop domestic projects that will reduce Saudi Arabia’s reliance on oil. That means PIF acting as a cornerstone investor on some major hometown ventures with foreign investors expected to join in.
The projects include a high-tech economic zone dubbed NEOM planned for an area close to the size of Belgium, an entertainment park outside Riyadh called Qiddiya being built on a site 2-1/2 times larger than Disney World, and a luxury tourist resort off the Red Sea coast that will span more than 90 islands.
Saudi Arabia’s Public Investment Fund (PIF) risks being pulled deeper into Crown Prince Mohammed bin Salman’s domestic projects, curbing its international ambitions and tying its fortunes closer to its home market, four sources familiar with its strategy said.
Unusually for a sovereign wealth fund, which typically is solely focused on generating wealth for future generations, PIF has a two-pronged mandate - it is also expected to develop domestic projects that will reduce Saudi Arabia’s reliance on oil. That means PIF acting as a cornerstone investor on some major hometown ventures with foreign investors expected to join in.
The projects include a high-tech economic zone dubbed NEOM planned for an area close to the size of Belgium, an entertainment park outside Riyadh called Qiddiya being built on a site 2-1/2 times larger than Disney World, and a luxury tourist resort off the Red Sea coast that will span more than 90 islands.
Thursday 27 June 2019
Oil Inches Higher as Investors Await Pivotal Trade, OPEC+ Talks - Bloomberg
Oil Inches Higher as Investors Await Pivotal Trade, OPEC+ Talks - Bloomberg: Oil closed Thursday in a holding pattern as traders awaited gatherings that could be decisive for the U.S.-China trade feud and the OPEC+ coalition’s commitment to supply curbs.
Futures edged up 0.1% in New York, with the outcome of both parleys uncertain. U.S. President Donald Trump, in fact, threatened more levies on China if there’s no progress at his meeting with Chinese leader Xi Jinping on the sidelines of the G-20 summit on Saturday.
West Texas Intermediate for August delivery rose 5 cents to $59.43 a barrel on the New York Mercantile Exchange, its highest closing price since May 22.
Futures edged up 0.1% in New York, with the outcome of both parleys uncertain. U.S. President Donald Trump, in fact, threatened more levies on China if there’s no progress at his meeting with Chinese leader Xi Jinping on the sidelines of the G-20 summit on Saturday.
West Texas Intermediate for August delivery rose 5 cents to $59.43 a barrel on the New York Mercantile Exchange, its highest closing price since May 22.
Brent for August settlement was 6 cents higher at $66.55 on London’s ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $7.10 to WTI.
#Dubai's Biggest Bank Gets Key Approval for Turkey Denizbank Deal - Bloomberg
Dubai's Biggest Bank Gets Key Approval for Turkey Denizbank Deal - Bloomberg:
Emirates NBD PJSC received a key regulatory approval taking Dubai’s biggest lender a step closer to completing its purchase of Turkey’s Denizbank AS, two people with knowledge of the matter said.
Emirates NBD got approval from the United Arab Emirates central bank, but still needs Turkey’s banking regulator to approve before the acquisition from Russia’s Sberbank PJSC can be completed, said the people, asking not to be identified because the information isn’t public.
Denizbank declined to comment. Sberbank’s press office didn’t respond to requests for comment. The U.A.E.’s central bank didn’t immediately respond to an email and calls seeking comment.
Emirates NBD PJSC received a key regulatory approval taking Dubai’s biggest lender a step closer to completing its purchase of Turkey’s Denizbank AS, two people with knowledge of the matter said.
Emirates NBD got approval from the United Arab Emirates central bank, but still needs Turkey’s banking regulator to approve before the acquisition from Russia’s Sberbank PJSC can be completed, said the people, asking not to be identified because the information isn’t public.
Denizbank declined to comment. Sberbank’s press office didn’t respond to requests for comment. The U.A.E.’s central bank didn’t immediately respond to an email and calls seeking comment.
European trio prepare to launch delayed #Iran payments channel | Financial Times
European trio prepare to launch delayed Iran payments channel | Financial Times:
Germany, the UK and France will announce that a payments channel designed to boost trade with Iran is finally operational at a crunch meeting on Friday as European governments battle to save the 2015 nuclear deal.
But the initiative, known as Instex, is expected to have initial capital of only several million euros, raising questions about whether it will be enough to convince Tehran to stick with the accord that Donald Trump abandoned last year.
Officials from the remaining signatories to the accord — the three European states, China, Russia and Iran — will meet in Vienna to discuss its status as Tehran threatens to increase its nuclear activity above limits in the agreement.
Germany, the UK and France will announce that a payments channel designed to boost trade with Iran is finally operational at a crunch meeting on Friday as European governments battle to save the 2015 nuclear deal.
But the initiative, known as Instex, is expected to have initial capital of only several million euros, raising questions about whether it will be enough to convince Tehran to stick with the accord that Donald Trump abandoned last year.
Officials from the remaining signatories to the accord — the three European states, China, Russia and Iran — will meet in Vienna to discuss its status as Tehran threatens to increase its nuclear activity above limits in the agreement.
MIDEAST STOCKS-Global rally propels Gulf markets; Saudis lead - Reuters
MIDEAST STOCKS-Global rally propels Gulf markets; Saudis lead - Reuters:
All major Gulf markets gained on
Thursday, reflecting a global equity rally, amid hopes for a
U.S.-China trade truce, with Saudi shares getting a further
boost from after limits were lowered on foreign share ownership.
Saudi's stock index was up 1.3%, with Arab National
Bank rising 7% and Al Rajhi Bank up 1.9%.
Saudi Arabia has relaxed a 49% limit for foreign strategic
investors in a company's shares, aiming to attract foreign funds
as the Kingdom opens up the region's largest market.
All major Gulf markets gained on
Thursday, reflecting a global equity rally, amid hopes for a
U.S.-China trade truce, with Saudi shares getting a further
boost from after limits were lowered on foreign share ownership.
Saudi's stock index was up 1.3%, with Arab National
Bank rising 7% and Al Rajhi Bank up 1.9%.
Saudi Arabia has relaxed a 49% limit for foreign strategic
investors in a company's shares, aiming to attract foreign funds
as the Kingdom opens up the region's largest market.
#Dubai's DAE signs new $440mln unsecured revolving credit facility | ZAWYA MENA Edition
Dubai's DAE signs new $440mln unsecured revolving credit facility | ZAWYA MENA Edition:
Dubai Aerospace Enterprise, DAE, announced Thursday that it has signed a new long-term unsecured revolving credit facility with First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited as bookrunners and mandated lead arrangers.
Following an oversubscription in syndication the Facility was closed at an amount of US$440 million with a group of 12 lenders. The Facility will support the future financing needs of the business.
Firoz Tarapore, Chief Executive Officer of DAE, said, "We are pleased to sign this facility with First Abu Dhabi Bank and HSBC. This facility reinforces the strong availability of liquidity in the market and the confidence in DAE’s strategy and reputation. DAE has raised US$2.8 billion of new, long-term unsecured revolving credit facilities in the last year.
Dubai Aerospace Enterprise, DAE, announced Thursday that it has signed a new long-term unsecured revolving credit facility with First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited as bookrunners and mandated lead arrangers.
Following an oversubscription in syndication the Facility was closed at an amount of US$440 million with a group of 12 lenders. The Facility will support the future financing needs of the business.
Firoz Tarapore, Chief Executive Officer of DAE, said, "We are pleased to sign this facility with First Abu Dhabi Bank and HSBC. This facility reinforces the strong availability of liquidity in the market and the confidence in DAE’s strategy and reputation. DAE has raised US$2.8 billion of new, long-term unsecured revolving credit facilities in the last year.
Deal agreed for #UAE and Qatari assets of collapsed contractor | ZAWYA MENA Edition
Deal agreed for UAE and Qatari assets of collapsed contractor | ZAWYA MENA Edition:
The liquidator of collapsed contracting business Joannou & Paraskevaides (Overseas), which owned stakes in a range of contracting businesses across the Middle East, has agreed sales of interests in companies in the UAE and Qatar, but its beleaguered Saudi Arabian arm which owed hundreds of millions of riyals to its workers is now being wound up.
Joannou & Paraskevaides (J&P) (Overseas) was placed into liquidation in November after the business “faced significant liquidity issues and was cash flow insolvent”, liquidators Alvarez & Marsal told Zawya in November.
The company's operations were hampered due to a dispute between the founding Joannou and Paraskevaides families, according to a Forbes story in November last year. J&P (Overseas) employed 957 people directly, all of whom were laid off, but its subsidiaries employed more 16,000, the liquidators said.
The liquidator of collapsed contracting business Joannou & Paraskevaides (Overseas), which owned stakes in a range of contracting businesses across the Middle East, has agreed sales of interests in companies in the UAE and Qatar, but its beleaguered Saudi Arabian arm which owed hundreds of millions of riyals to its workers is now being wound up.
Joannou & Paraskevaides (J&P) (Overseas) was placed into liquidation in November after the business “faced significant liquidity issues and was cash flow insolvent”, liquidators Alvarez & Marsal told Zawya in November.
The company's operations were hampered due to a dispute between the founding Joannou and Paraskevaides families, according to a Forbes story in November last year. J&P (Overseas) employed 957 people directly, all of whom were laid off, but its subsidiaries employed more 16,000, the liquidators said.
OPEC set for rollover, may discuss deeper oil curbs: Iraq - Reuters
OPEC set for rollover, may discuss deeper oil curbs: Iraq - Reuters:
OPEC is expected to roll over a deal on cutting supplies at a meeting next week and discuss deepening the curbs that have been in place since Jan. 1, Iraq’s oil minister on Thursday.
A deal between the Organization of Petroleum Exporting Countries and allies including Russia to curb output by 1.2 million barrels runs out at the end of June. Meetings on July 1-2 in Vienna will discuss the next steps.
“The rollover at least would be at the same level because it has not been very effective, it has been effective to a certain level to minimize the glut in the market, but there are now ideas or calls for agreeing (on) even more,” Oil Minister Thamer Ghadhban said.
OPEC is expected to roll over a deal on cutting supplies at a meeting next week and discuss deepening the curbs that have been in place since Jan. 1, Iraq’s oil minister on Thursday.
A deal between the Organization of Petroleum Exporting Countries and allies including Russia to curb output by 1.2 million barrels runs out at the end of June. Meetings on July 1-2 in Vienna will discuss the next steps.
“The rollover at least would be at the same level because it has not been very effective, it has been effective to a certain level to minimize the glut in the market, but there are now ideas or calls for agreeing (on) even more,” Oil Minister Thamer Ghadhban said.
Flow of cheap gas hits coal prices | Financial Times
Flow of cheap gas hits coal prices | Financial Times:
Ahead of the G20 summit in Osaka later this week the anti-coal lobby has been out in force, calling on governments to phase out subsidies for the fossil fuel. Activists are preparing to inflate a blimp with a likeness of Shinzo Abe, Japan’s prime minister, standing in a bucket of coal, as they urge the country to stop building new coal-fired power plants.
For the moment, however, the coal industry has more pressing concerns, in particular competition from cheap natural gas, which has caused a steep drop in prices.
A year ago thermal coal, which is burnt in power stations to generate electricity, was trading at more than $100 a tonne. Today it sits at $70 a tonne and lower in some parts of the world.
Ahead of the G20 summit in Osaka later this week the anti-coal lobby has been out in force, calling on governments to phase out subsidies for the fossil fuel. Activists are preparing to inflate a blimp with a likeness of Shinzo Abe, Japan’s prime minister, standing in a bucket of coal, as they urge the country to stop building new coal-fired power plants.
For the moment, however, the coal industry has more pressing concerns, in particular competition from cheap natural gas, which has caused a steep drop in prices.
A year ago thermal coal, which is burnt in power stations to generate electricity, was trading at more than $100 a tonne. Today it sits at $70 a tonne and lower in some parts of the world.
MIDEAST STOCKS-Saudi stocks lead Gulf higher as it eases foreign ownership limit - Reuters
MIDEAST STOCKS- #Saudi stocks lead Gulf higher as it eases foreign ownership limit - Reuters:
Saudi stocks rose on Thursday after the kingdom relaxed its limit on foreign share ownership, and other Gulf markets gained after falling in recent sessions amid political concerns.
Saudi’s stock index was up 0.6% in early trade with banks leading the gains. Arab National Bank rose 7% and Al Rajhi Bank added 0.7%.
Saudi Arabia has relaxed a 49% limit for foreign strategic investors in a company’s shares, aiming to attract foreign funds as the Kingdom opens up the region’s largest market.
Saudi stocks rose on Thursday after the kingdom relaxed its limit on foreign share ownership, and other Gulf markets gained after falling in recent sessions amid political concerns.
Saudi’s stock index was up 0.6% in early trade with banks leading the gains. Arab National Bank rose 7% and Al Rajhi Bank added 0.7%.
Saudi Arabia has relaxed a 49% limit for foreign strategic investors in a company’s shares, aiming to attract foreign funds as the Kingdom opens up the region’s largest market.
Which Oil Buyers Have Most at Stake as Mideast Tensions Rise - Bloomberg
Which Oil Buyers Have Most at Stake as Mideast Tensions Rise - Bloomberg:
Tensions in the Middle East are rising to the point where U.S. President Donald Trump has even started talking about who pays for the protection of the Strait of Hormuz, a shipping corridor through which one third of all seaborne petroleum passes.
This article takes a look at which nations get their oil supplies from the Persian Gulf – and from exactly where in the region they load those barrels.
Trump made the point that Asian buyers rely on shipments through Hormuz far more than the U.S. does. And on that point, he’s right (albeit some of his figures were off the mark). Only a small proportion of the crude and condensate, a form of light oil extracted from gas fields, that leaves the region now heads for American ports. In the past three months, it accounted for about 800,000 barrels a day, or just 6% of the total shipments from the Persian Gulf ports in Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar.
Tensions in the Middle East are rising to the point where U.S. President Donald Trump has even started talking about who pays for the protection of the Strait of Hormuz, a shipping corridor through which one third of all seaborne petroleum passes.
This article takes a look at which nations get their oil supplies from the Persian Gulf – and from exactly where in the region they load those barrels.
Trump made the point that Asian buyers rely on shipments through Hormuz far more than the U.S. does. And on that point, he’s right (albeit some of his figures were off the mark). Only a small proportion of the crude and condensate, a form of light oil extracted from gas fields, that leaves the region now heads for American ports. In the past three months, it accounted for about 800,000 barrels a day, or just 6% of the total shipments from the Persian Gulf ports in Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar.
Oil Retreats From Five-Week High as Trump Damps Trade Optimism - Bloomberg
Oil Retreats From Five-Week High as Trump Damps Trade Optimism - Bloomberg:
Oil retreated from a five-week high as concern over the trade war came back to the fore after President Donald Trump warned he might impose substantial additional tariffs on Chinese imports.
Futures in New York fell as much as 1.1% after closing up 2.7% Wednesday as the Energy Information Administration reported U.S. crude stockpiles dropped the most in almost a year. Trump warned in an interview with Fox Business Network of more levies if there’s no progress at his meeting with Chinese President Xi Jinping on the sidelines of the G-20 Summit on Saturday.
Oil jumped more than 10% in the week through Wednesday on tensions in the Persian Gulf as well as the American stockpiles draw. Trump’s latest tariff threat is reminding investors that an already fragile demand outlook could worsen if the world’s two biggest economies don’t return to the negotiating table. Meanwhile, the Organization of Petroleum Exporting Countries and its allies are set to decide on production levels at a meeting in Vienna next week.
Oil retreated from a five-week high as concern over the trade war came back to the fore after President Donald Trump warned he might impose substantial additional tariffs on Chinese imports.
Futures in New York fell as much as 1.1% after closing up 2.7% Wednesday as the Energy Information Administration reported U.S. crude stockpiles dropped the most in almost a year. Trump warned in an interview with Fox Business Network of more levies if there’s no progress at his meeting with Chinese President Xi Jinping on the sidelines of the G-20 Summit on Saturday.
Oil jumped more than 10% in the week through Wednesday on tensions in the Persian Gulf as well as the American stockpiles draw. Trump’s latest tariff threat is reminding investors that an already fragile demand outlook could worsen if the world’s two biggest economies don’t return to the negotiating table. Meanwhile, the Organization of Petroleum Exporting Countries and its allies are set to decide on production levels at a meeting in Vienna next week.
DIFC set to appoint service providers for new gratuity scheme next month | ZAWYA MENA Edition
DIFC set to appoint service providers for new gratuity scheme next month | ZAWYA MENA Edition:
The Dubai International Financial Centre (DIFC) is looking to appoint services providers for its reformed end-of-service gratuity scheme by the end of July as it pushes ahead to put measures into effect by the first quarter of next year.
The planned DIFC Employee Workplace Savings (DEWS) Trust is a funded, trust-based savings scheme set to replace the existing end-of-service gratuity system.
“We have initiated competitive bidding (RFP) process to appoint the services providers to the scheme, such as the Master Trustee, the Administrator and Investment Advisor,” Jacques Visser, chief legal officer at DIFC Authority, told Zawya in a telephone interview.
The Dubai International Financial Centre (DIFC) is looking to appoint services providers for its reformed end-of-service gratuity scheme by the end of July as it pushes ahead to put measures into effect by the first quarter of next year.
The planned DIFC Employee Workplace Savings (DEWS) Trust is a funded, trust-based savings scheme set to replace the existing end-of-service gratuity system.
“We have initiated competitive bidding (RFP) process to appoint the services providers to the scheme, such as the Master Trustee, the Administrator and Investment Advisor,” Jacques Visser, chief legal officer at DIFC Authority, told Zawya in a telephone interview.
COLUMN-Unlike crude oil, LNG takes Gulf tensions in its stride: Russell - Reuters
COLUMN-Unlike crude oil, LNG takes Gulf tensions in its stride: Russell - Reuters:
The subdued reaction of global liquefied natural gas (LNG) prices to the latest tensions around the Persian Gulf not only stands in contrast to the excitable crude oil market, but perhaps offers a more reasonable assessment of the risks.
While spot prices for LNG did move somewhat higher in the wake of the attacks on two tankers in the nearby Gulf of Oman on June 13, the reaction wasn’t as pronounced as the spike in global oil benchmark Brent.
In some ways this could be viewed as surprising as LNG is actually more exposed to the threat of closure of the Strait of Hormuz, the narrow sea lane that links the Persian and Oman gulfs.
The subdued reaction of global liquefied natural gas (LNG) prices to the latest tensions around the Persian Gulf not only stands in contrast to the excitable crude oil market, but perhaps offers a more reasonable assessment of the risks.
While spot prices for LNG did move somewhat higher in the wake of the attacks on two tankers in the nearby Gulf of Oman on June 13, the reaction wasn’t as pronounced as the spike in global oil benchmark Brent.
In some ways this could be viewed as surprising as LNG is actually more exposed to the threat of closure of the Strait of Hormuz, the narrow sea lane that links the Persian and Oman gulfs.
Wednesday 26 June 2019
Oil Reaches 5-Week High on Biggest Drop in Stockpiles Since 2016 - Bloomberg
Oil Reaches 5-Week High on Biggest Drop in Stockpiles Since 2016 - Bloomberg:
Oil rose to a five-week high as a huge drop in U.S. crude inventories bolstered the outlook for demand.
Futures in New York climbed 2.7% Wednesday after the U.S. Energy Information Administration said domestic stockpiles fell by 12.8 million barrels last week. The biggest decline in American supplies since September 2016 was accompanied by record exports of crude and refined products and gasoline demand that remained near an all-time high.
“U.S. exports are going to continue to grow, and that’s a positive for long-term crude balances here,” said Nick Holmes, who helps oversee $16 billion in energy investments for Kansas-based money manager Tortoise. “It’s our expectation that we continue to see draws into the second half of the year.”
While the summer driving season typically boosts demand, it was the second week in a row that inventories fell far beyond expectations, countering worries about the economy that have dogged oil prices. With added momentum from the U.S.-Iran standoff in the Persian Gulf, futures have jumped about 10% in the past week.
West Texas Intermediate for August delivery rose $1.55 to $59.38 a barrel on the New York Mercantile Exchange. It was the highest closing price for the contract since May 22.
Brent for August settlement added $1.44, or 2.2%, to $66.49 a barrel on London’s ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $7.11 to WTI.
Oil rose to a five-week high as a huge drop in U.S. crude inventories bolstered the outlook for demand.
Futures in New York climbed 2.7% Wednesday after the U.S. Energy Information Administration said domestic stockpiles fell by 12.8 million barrels last week. The biggest decline in American supplies since September 2016 was accompanied by record exports of crude and refined products and gasoline demand that remained near an all-time high.
“U.S. exports are going to continue to grow, and that’s a positive for long-term crude balances here,” said Nick Holmes, who helps oversee $16 billion in energy investments for Kansas-based money manager Tortoise. “It’s our expectation that we continue to see draws into the second half of the year.”
While the summer driving season typically boosts demand, it was the second week in a row that inventories fell far beyond expectations, countering worries about the economy that have dogged oil prices. With added momentum from the U.S.-Iran standoff in the Persian Gulf, futures have jumped about 10% in the past week.
West Texas Intermediate for August delivery rose $1.55 to $59.38 a barrel on the New York Mercantile Exchange. It was the highest closing price for the contract since May 22.
Brent for August settlement added $1.44, or 2.2%, to $66.49 a barrel on London’s ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $7.11 to WTI.
CVC Is Said to Near $1 Billion Deal for Stake in GEMS Education - Bloomberg
CVC Is Said to Near $1 Billion Deal for Stake in GEMS Education - Bloomberg:
CVC Capital Partners is close to a deal for a 25% stake in Dubai’s GEMS Education, a private school operator backed by Blackstone Group LP, that values the firm at more than $4 billion, people familiar with the matter said.
CVC may pay $1 billion or more for the holding and a deal could be announced in the coming days, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the London-based private equity firm may still decide against a deal.
Representative for GEMS and London-based CVC declined to comment.
CVC Capital Partners is close to a deal for a 25% stake in Dubai’s GEMS Education, a private school operator backed by Blackstone Group LP, that values the firm at more than $4 billion, people familiar with the matter said.
CVC may pay $1 billion or more for the holding and a deal could be announced in the coming days, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the London-based private equity firm may still decide against a deal.
Representative for GEMS and London-based CVC declined to comment.
Trump's sanctions cut more OPEC oil output than OPEC itself - Reuters
Trump's sanctions cut more OPEC oil output than OPEC itself - Reuters:
Oil output in Iran and Venezuela, under U.S. sanctions, has fallen by more than that of other OPEC members party to a supply cut pact, suggesting President Trump’s policies have had a greater impact on oil production than OPEC itself.
The sanctions have deepened the impact of supply cuts agreed by the Organization of the Petroleum Exporting Countries, which is expected at meetings with its allies next Monday and Tuesday in Vienna to renew the accord.
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members - all except Iran, Libya and Venezuela.
Oil output in Iran and Venezuela, under U.S. sanctions, has fallen by more than that of other OPEC members party to a supply cut pact, suggesting President Trump’s policies have had a greater impact on oil production than OPEC itself.
The sanctions have deepened the impact of supply cuts agreed by the Organization of the Petroleum Exporting Countries, which is expected at meetings with its allies next Monday and Tuesday in Vienna to renew the accord.
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members - all except Iran, Libya and Venezuela.
Oil rises as US inventories dip and exports hit record high | Financial Times
Oil rises as US inventories dip and exports hit record high | Financial Times:
Oil prices added to recent gains after US data showed domestic stockpiles last week shrank more than expected while exports of American crude hit a record high.
The Energy Information Administration said Wednesday that US crude inventories declined 12.8m barrels from the prior week to 469.6m barrels, dropping by their widest margin since September 2016 and surpassing forecasts for a smaller 2.5m-barrel draw.
It also found that weekly crude exports rose to their highest level on record at 3.77m barrels a day, and exports of crude and refined products combined were at an all-time high.
Oil prices added to recent gains after US data showed domestic stockpiles last week shrank more than expected while exports of American crude hit a record high.
The Energy Information Administration said Wednesday that US crude inventories declined 12.8m barrels from the prior week to 469.6m barrels, dropping by their widest margin since September 2016 and surpassing forecasts for a smaller 2.5m-barrel draw.
It also found that weekly crude exports rose to their highest level on record at 3.77m barrels a day, and exports of crude and refined products combined were at an all-time high.
#SaudiArabia relaxes ownership limits for foreign investors - Reuters
Saudi Arabia relaxes ownership limits for foreign investors - Reuters:
Saudi Arabia has relaxed a 49% limit for foreign strategic investors in shares of listed companies, it said on Wednesday.
The country has introduced a raft of reforms in recent years to make its stock market, the region’s biggest, attractive to foreign investors and issuers.
The move is aimed to help “enhance the market’s efficiency and attractiveness and to expand the institutional investments base,” the regulator, the Capital Market Authority (CMA), said in a statement on its website.
Saudi Arabia has relaxed a 49% limit for foreign strategic investors in shares of listed companies, it said on Wednesday.
The country has introduced a raft of reforms in recent years to make its stock market, the region’s biggest, attractive to foreign investors and issuers.
The move is aimed to help “enhance the market’s efficiency and attractiveness and to expand the institutional investments base,” the regulator, the Capital Market Authority (CMA), said in a statement on its website.
#Dubai state fund's profit falls by 19% in 2018 | ZAWYA MENA Edition
Dubai state fund's profit falls by 19% in 2018 | ZAWYA MENA Edition:
Investment Corporation of Dubai (ICD) witnessed a 19.3 percent decline in profit to its owner in 2018 to 16.3 billion United Arab Emirates dirhams ($4.37 billion), newly-filed accounts show.
Profit declined at the sovereign fund despite a 15.7 percent increase in revenue to 232.4 billion.
ICD, which owns the Emirates airline group, Emirates National Oil Co and which has stakes in banks such as Emirates NBD and the soon-to-merge Dubai Islamic Bank and Noor Bank, attributed the decline in profit to "the impact of higher fuel and commodity input prices".
Investment Corporation of Dubai (ICD) witnessed a 19.3 percent decline in profit to its owner in 2018 to 16.3 billion United Arab Emirates dirhams ($4.37 billion), newly-filed accounts show.
Profit declined at the sovereign fund despite a 15.7 percent increase in revenue to 232.4 billion.
ICD, which owns the Emirates airline group, Emirates National Oil Co and which has stakes in banks such as Emirates NBD and the soon-to-merge Dubai Islamic Bank and Noor Bank, attributed the decline in profit to "the impact of higher fuel and commodity input prices".
MIDEAST STOCKS-Egypt snaps losing streak while most of Gulf slips - Reuters
MIDEAST STOCKS-Egypt snaps losing streak while most of Gulf slips - Reuters:
Egypt's stock market ended six straight
days of losses on Wednesday, while Gulf bourses mostly dropped
as regional political concerns persisted.
Egypt's blue-chip index traded 1.3% higher. El
Sewedy Electric and real estate investment firm Talaat
Mostafa Group Holding jumped 4.8% and 4.5%,
respectively.
The market has been on the back foot in recent sessions
after Egypt's first democratically elected president Mohamed
Mursi died while on trial in a Cairo court. His death has
triggered calls for an inquiry by Amnesty International and the
U.N. Human Rights office.
Egypt's stock market ended six straight
days of losses on Wednesday, while Gulf bourses mostly dropped
as regional political concerns persisted.
Egypt's blue-chip index traded 1.3% higher. El
Sewedy Electric and real estate investment firm Talaat
Mostafa Group Holding jumped 4.8% and 4.5%,
respectively.
The market has been on the back foot in recent sessions
after Egypt's first democratically elected president Mohamed
Mursi died while on trial in a Cairo court. His death has
triggered calls for an inquiry by Amnesty International and the
U.N. Human Rights office.
#Abraaj scandal a ‘wake-up call’ for advisory industry | Financial Times
Abraaj scandal a ‘wake-up call’ for advisory industry | Financial Times:
When private equity firm Abraaj faced allegations of mismanaging its $1bn healthcare fund last year, executives recognised that a neutral external company with a trusted reputation would be needed to investigate.
Dubai-based Abraaj, which until recently dominated the emerging markets private equity sector, was accused of using the fund to support the business of its founder, Arif Naqvi. The money mostly came from large institutional investors, including the Bill & Melinda Gates Foundation. Mr Naqvi has always denied wrongdoing.
Yet it appeared the worst had passed when the investigation by Abraaj’s auditor, KPMG, exonerated the firm just a few weeks after the scandal broke.
When private equity firm Abraaj faced allegations of mismanaging its $1bn healthcare fund last year, executives recognised that a neutral external company with a trusted reputation would be needed to investigate.
Dubai-based Abraaj, which until recently dominated the emerging markets private equity sector, was accused of using the fund to support the business of its founder, Arif Naqvi. The money mostly came from large institutional investors, including the Bill & Melinda Gates Foundation. Mr Naqvi has always denied wrongdoing.
Yet it appeared the worst had passed when the investigation by Abraaj’s auditor, KPMG, exonerated the firm just a few weeks after the scandal broke.
Bank of America Sees Risk of $30 Oil If China Devalues Yuan - Bloomberg
Bank of America Sees Risk of $30 Oil If China Devalues Yuan - Bloomberg:
A further deterioration in relations between the U.S. and China could set off a chain of events that would push oil down more than 50% to as low $30 a barrel, according to Bank of America Merrill Lynch.
President Donald Trump may decide to raise tariffs on the remaining $300 billion of Chinese imports if he doesn’t like what he hears from Chinese President Xi Jinping at this weekend’s G-20 summit in Osaka, Francisco Blanch, the bank’s global head of commodities, said in an interview in Singapore.
That may cause Chinese authorities to let the yuan weaken, making oil that’s priced in dollars more expensive in the world’s largest importer and stunting demand growth, he said. Beijing might also decide to ignore Washington’s sanctions against Iran and resume crude imports from the Persian Gulf country, Blanch said.
A further deterioration in relations between the U.S. and China could set off a chain of events that would push oil down more than 50% to as low $30 a barrel, according to Bank of America Merrill Lynch.
President Donald Trump may decide to raise tariffs on the remaining $300 billion of Chinese imports if he doesn’t like what he hears from Chinese President Xi Jinping at this weekend’s G-20 summit in Osaka, Francisco Blanch, the bank’s global head of commodities, said in an interview in Singapore.
That may cause Chinese authorities to let the yuan weaken, making oil that’s priced in dollars more expensive in the world’s largest importer and stunting demand growth, he said. Beijing might also decide to ignore Washington’s sanctions against Iran and resume crude imports from the Persian Gulf country, Blanch said.
Aramco Plans $6 Billion Korean Refinery Boost to Place #Saudi Oil - Bloomberg
Aramco Plans $6 Billion Korean Refinery Boost to Place Saudi Oil - Bloomberg:
Saudi Aramco is planning a $6 billion expansion at its South Korean refining unit as the state-owned producer signs deals to ensure long-term demand for its crude in Asia.
Saudi Crown Prince Mohammed bin Salman took Aramco’s Chief Executive Officer Amin Nasser with him to Korea during a visit that saw a raft of deals from crude supply to ship building and automobile industry projects signed between the two countries. Aramco, officially known as Saudi Arabian Oil Co., and other Saudi businesses agreed to $8.3 billion worth of projects with Korean companies during the visit, the Korean energy ministry said.
Prince Mohammed is leading the push to transform the crude-dependent Saudi economy by developing new industries at home. Korea Shipbuilding & Offshore Engineering Co. was among the companies that agreed to set up businesses like ship building and servicing in the kingdom, which is the largest supplier of oil to South Korea.
Saudi Aramco is planning a $6 billion expansion at its South Korean refining unit as the state-owned producer signs deals to ensure long-term demand for its crude in Asia.
Saudi Crown Prince Mohammed bin Salman took Aramco’s Chief Executive Officer Amin Nasser with him to Korea during a visit that saw a raft of deals from crude supply to ship building and automobile industry projects signed between the two countries. Aramco, officially known as Saudi Arabian Oil Co., and other Saudi businesses agreed to $8.3 billion worth of projects with Korean companies during the visit, the Korean energy ministry said.
Prince Mohammed is leading the push to transform the crude-dependent Saudi economy by developing new industries at home. Korea Shipbuilding & Offshore Engineering Co. was among the companies that agreed to set up businesses like ship building and servicing in the kingdom, which is the largest supplier of oil to South Korea.
MIDEAST STOCKS- #Saudi extends gains while most Gulf markets drop - Reuters
MIDEAST STOCKS-Saudi extends gains while most Gulf markets drop - Reuters:
Saudi Arabia’s stock market rose on Wednesday, lifted by Advanced Petrochemical, while political concerns continued to weigh on most other Gulf markets.
Saudi’s index was up 0.4% after snapping a four-day losing streak in the last session.
Advanced Petrochemical rose 5.9% after its Advanced Global Investment unit won a Government project to set up petrochemical plants for an estimated cost of $1.8 billion.
Saudi Arabia’s stock market rose on Wednesday, lifted by Advanced Petrochemical, while political concerns continued to weigh on most other Gulf markets.
Saudi’s index was up 0.4% after snapping a four-day losing streak in the last session.
Advanced Petrochemical rose 5.9% after its Advanced Global Investment unit won a Government project to set up petrochemical plants for an estimated cost of $1.8 billion.
OPEC+ Deal Pot Looks Sweeter for Russia as Gulf Money Flows In - Bloomberg
OPEC+ Deal Pot Looks Sweeter for Russia as Gulf Money Flows In - Bloomberg:
When the courtship between Russia and Saudi Arabia and its Gulf allies began more than four years ago, the prospect of billions in new investment for the region was big selling point for the Kremlin.
Now, as the two big oil producers mull whether to extend the centerpiece of their rapprochement — the deal to cut production that’s helped shore up crude prices around the world — the investment flood looks a lot smaller than promised. But for capital-starved Russia, it may still be enough.
“There is a certain frustration on the Russian side,” said Alexey Potemkin, the chief executive officer of Moscow Policy Group, a consultancy group that advises on Russia-Gulf business projects. In particular, he said the Saudis were stalling on some deals and “this raises questions among decision-makers about the seriousness of Russia’s Gulf counterparts with regard to investments.”
When the courtship between Russia and Saudi Arabia and its Gulf allies began more than four years ago, the prospect of billions in new investment for the region was big selling point for the Kremlin.
Now, as the two big oil producers mull whether to extend the centerpiece of their rapprochement — the deal to cut production that’s helped shore up crude prices around the world — the investment flood looks a lot smaller than promised. But for capital-starved Russia, it may still be enough.
“There is a certain frustration on the Russian side,” said Alexey Potemkin, the chief executive officer of Moscow Policy Group, a consultancy group that advises on Russia-Gulf business projects. In particular, he said the Saudis were stalling on some deals and “this raises questions among decision-makers about the seriousness of Russia’s Gulf counterparts with regard to investments.”
#Kuwait Wins MSCI Upgrade to Emerging Market Starting in 2020 - Bloomberg
Kuwait Wins MSCI Upgrade to Emerging Market Starting in 2020 - Bloomberg:
MSCI Inc. will add Kuwait to its main index tracking stocks in emerging markets next year, once some trading mechanisms are improved, in an upgrade that has been priced in by investors anticipating billions of dollars of inflows.
The change is due to happen in June 2020, the New York-based index compiler said in a statement on Tuesday. The Gulf country, whose $98 billion stock market is similar in size to those of New Zealand and Ireland, is currently the biggest member of the MSCI’s main frontier gauge.
The upgrade had been targeted by the local stock exchange and markets regulator as they modernized trading infrastructure to attract local and foreign investors. Kuwait will now have to compete for the attention of money managers that invest in much bigger markets such as China, India, Brazil, Russia and neighboring Saudi Arabia, which joined the MSCI’s EM index earlier this year.
MSCI Inc. will add Kuwait to its main index tracking stocks in emerging markets next year, once some trading mechanisms are improved, in an upgrade that has been priced in by investors anticipating billions of dollars of inflows.
The change is due to happen in June 2020, the New York-based index compiler said in a statement on Tuesday. The Gulf country, whose $98 billion stock market is similar in size to those of New Zealand and Ireland, is currently the biggest member of the MSCI’s main frontier gauge.
The upgrade had been targeted by the local stock exchange and markets regulator as they modernized trading infrastructure to attract local and foreign investors. Kuwait will now have to compete for the attention of money managers that invest in much bigger markets such as China, India, Brazil, Russia and neighboring Saudi Arabia, which joined the MSCI’s EM index earlier this year.
Middle East M&A activity slows down as caution prevails: PwC | ZAWYA MENA Edition
Middle East M&A activity slows down as caution prevails: PwC | ZAWYA MENA Edition:
Mergers and acquisitions in the Middle East continue to remain slow in the current year, with 44 deals reported in Q1 2019 versus 56 deals over the same period last year.
Additionally, only one IPO was reported in Q1 2019, down from four last year. Private equity activity also saw a decline, dropping from 26 percent to 21 percent of all deals in 2018.
However, PwC’s second TransAct Middle East edition, titled “What’s Shaping M&A in the Middle East?” reports that the market will continue to offer interesting deal opportunities, especially in technology and digital transformation.
Mergers and acquisitions in the Middle East continue to remain slow in the current year, with 44 deals reported in Q1 2019 versus 56 deals over the same period last year.
Additionally, only one IPO was reported in Q1 2019, down from four last year. Private equity activity also saw a decline, dropping from 26 percent to 21 percent of all deals in 2018.
However, PwC’s second TransAct Middle East edition, titled “What’s Shaping M&A in the Middle East?” reports that the market will continue to offer interesting deal opportunities, especially in technology and digital transformation.
VAT's impact on #UAE inflation was "short-term and temporary" - Moody's | ZAWYA MENA Edition
VAT's impact on UAE inflation was "short-term and temporary" - Moody's | ZAWYA MENA Edition:
The introduction of value-added tax in the United Arab Emirates last year had only a "small and short-lived" impact on inflation, a new note from credit ratings agency Moody's has said.
The ratings agency said that revelation last month that revenue collected from the tax was much higher than expected was "credit positive" for the emirates with sovereign ratings. Government figures state that 27 billion dirhams ($7.4 billion) worth of revenue was collected - substantially ahead of the 12 billion dirhams originally projected for last year, or even the 2o billion in revenue forecast for this year. The higher rates of revenue collected was attributed to higher levels of compliance with the tax than expected.
Some 30 percent of the revenue collected is going to federal government coffers, with the remainder being spread between the individual emirates based on where they were generated, as opposed to a combination of non-oil GDP and population.
The introduction of value-added tax in the United Arab Emirates last year had only a "small and short-lived" impact on inflation, a new note from credit ratings agency Moody's has said.
The ratings agency said that revelation last month that revenue collected from the tax was much higher than expected was "credit positive" for the emirates with sovereign ratings. Government figures state that 27 billion dirhams ($7.4 billion) worth of revenue was collected - substantially ahead of the 12 billion dirhams originally projected for last year, or even the 2o billion in revenue forecast for this year. The higher rates of revenue collected was attributed to higher levels of compliance with the tax than expected.
Some 30 percent of the revenue collected is going to federal government coffers, with the remainder being spread between the individual emirates based on where they were generated, as opposed to a combination of non-oil GDP and population.
Oil prices jump on U.S. crude stocks fall, major refinery outage - Reuters
Oil prices jump on U.S. crude stocks fall, major refinery outage - Reuters:
Oil prices hit their highest level in nearly a month on Wednesday, buoyed by an outage at a major refinery on the U.S. East Coast and industry data that showed U.S. crude stockpiles fell more than expected.
Brent crude futures, the international benchmark for oil, were up $1.03 a barrel at $66.08 by 0721 GMT. They earlier touched their highest since May 31 at $66.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $58.96 per barrel, up $1.13 from their last settlement. WTI earlier hit its strongest level since May 30 at $59.13 a barrel.
Oil prices hit their highest level in nearly a month on Wednesday, buoyed by an outage at a major refinery on the U.S. East Coast and industry data that showed U.S. crude stockpiles fell more than expected.
Brent crude futures, the international benchmark for oil, were up $1.03 a barrel at $66.08 by 0721 GMT. They earlier touched their highest since May 31 at $66.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $58.96 per barrel, up $1.13 from their last settlement. WTI earlier hit its strongest level since May 30 at $59.13 a barrel.
#UAE's Abu Dhabi Financial Group & Shuaa Capital agree on merger - Reuters
UAE's Abu Dhabi Financial Group & Shuaa Capital agree on merger - Reuters:
Abu Dhabi Financial Group (ADFG) and Shuaa Capital have agreed on the terms of their merger, which will create an entity with $12.8 billion in assets under management.
Under the agreement, Shuaa will issue 1.47 billion new shares to ADFG’s parent company, Abu Dhabi Capital Management, in return for the entire issued shares of ADFG, the companies said in a joint statement on Wednesday.
ADFG’s shareholders will own 58% of the enlarged entity while Shuaa’s existing shareholders will own 42%.
Abu Dhabi Financial Group (ADFG) and Shuaa Capital have agreed on the terms of their merger, which will create an entity with $12.8 billion in assets under management.
Under the agreement, Shuaa will issue 1.47 billion new shares to ADFG’s parent company, Abu Dhabi Capital Management, in return for the entire issued shares of ADFG, the companies said in a joint statement on Wednesday.
ADFG’s shareholders will own 58% of the enlarged entity while Shuaa’s existing shareholders will own 42%.
#SaudiArabia's Nayifat reschedules IPO roadshow - Reuters
Saudi Arabia's Nayifat reschedules IPO roadshow - Reuters:
Saudi Arabia’s Nayifat Finance Company has rescheduled a road show and book building process for its public offering that was originally planned for June 24, it said in a statement on Wednesday.
“The rescheduling is in the interest of selecting the next suitable window for the IPO,” the statement said, without giving further details.
In March, Saudi stock market regulator (CMA) approved Nayifat’s application for floating 30% of its capital.
Saudi Arabia’s Nayifat Finance Company has rescheduled a road show and book building process for its public offering that was originally planned for June 24, it said in a statement on Wednesday.
“The rescheduling is in the interest of selecting the next suitable window for the IPO,” the statement said, without giving further details.
In March, Saudi stock market regulator (CMA) approved Nayifat’s application for floating 30% of its capital.
Tuesday 25 June 2019
Risk Stalking #Iran's Sanction-Scarred Currency Is Off the Charts - Bloomberg
Risk Stalking Iran's Sanction-Scarred Currency Is Off the Charts - Bloomberg:
Iran’s currency is under more duress now than when a European and U.S. oil embargo was in place seven years ago.
Oxford Economics’ FX Risk Tool, a composite measure of vulnerability to a currency crisis, shows the rial as the most exposed in the Middle East and North Africa.
Iran’s score is above the level in 2012 and suggests a 23% chance of a currency crisis in the next two years, the consultancy said. Although its value is officially fixed, the rial is estimated to have lost more than 60% on the parallel market in the last year.
Iran’s currency is under more duress now than when a European and U.S. oil embargo was in place seven years ago.
Oxford Economics’ FX Risk Tool, a composite measure of vulnerability to a currency crisis, shows the rial as the most exposed in the Middle East and North Africa.
Iran’s score is above the level in 2012 and suggests a 23% chance of a currency crisis in the next two years, the consultancy said. Although its value is officially fixed, the rial is estimated to have lost more than 60% on the parallel market in the last year.
Oil Closes Below $58 as Esper Seeks to Cool U.S.-Iran Tension - Bloomberg
Oil Closes Below $58 as Esper Seeks to Cool U.S.-Iran Tension - Bloomberg:
Oil closed slightly lower as taunts and threats between the leaders of the U.S. and Iran failed to sustain a rally.
Futures in New York closed just below $58 a barrel on Tuesday, after acting Secretary of Defense Mark Esper said the U.S. isn’t looking to go to war with Iran. Prices had surged higher earlier after Iran said new American sanctions had shut the door to diplomacy “forever” and President Donald Trump warned that any attack on U.S. assets could be met, in some areas, with “obliteration.”
Prices flipped between gains and losses several times during a choppy trading session that also brought reminders of the fragile economic outlook. Federal Reserve Chairman Jerome Powell warned the risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 summit this week is unlikely.
“Oil squeezed higher last week on tensions in the Middle East, but with so much uncertainty regarding the trade war and global economy, the demand argument is too shaky for a sustainable rally just yet,” Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida, wrote in a note to clients.
West Texas Intermediate for August delivery fell 7 cents to $57.83 on the New York Mercantile Exchange, after closing Monday at the highest point since May 29. Brent for August settlement rose 19 cents, or 0.3%, to $65.05 a barrel on London’s ICE Futures Europe Exchange.
Oil closed slightly lower as taunts and threats between the leaders of the U.S. and Iran failed to sustain a rally.
Futures in New York closed just below $58 a barrel on Tuesday, after acting Secretary of Defense Mark Esper said the U.S. isn’t looking to go to war with Iran. Prices had surged higher earlier after Iran said new American sanctions had shut the door to diplomacy “forever” and President Donald Trump warned that any attack on U.S. assets could be met, in some areas, with “obliteration.”
Prices flipped between gains and losses several times during a choppy trading session that also brought reminders of the fragile economic outlook. Federal Reserve Chairman Jerome Powell warned the risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 summit this week is unlikely.
“Oil squeezed higher last week on tensions in the Middle East, but with so much uncertainty regarding the trade war and global economy, the demand argument is too shaky for a sustainable rally just yet,” Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida, wrote in a note to clients.
West Texas Intermediate for August delivery fell 7 cents to $57.83 on the New York Mercantile Exchange, after closing Monday at the highest point since May 29. Brent for August settlement rose 19 cents, or 0.3%, to $65.05 a barrel on London’s ICE Futures Europe Exchange.
MIDEAST STOCKS- #Saudi stocks end losing streak, #Iran sanctions weigh on most of Gulf - Reuters
MIDEAST STOCKS-Saudi stocks end losing streak, Iran sanctions weigh on most of Gulf - Reuters:
Saudi Arabia's stock market snapped a
four-day losing streak in late wave of buying on Tuesday, while
other major Middle East bourses dropped after the United States
imposed sanctions on Iran's leadership.
Saudi Arabia's share index was up 0.6% with gains
coming in last 30 minutes of trading. Banks led the late rally
with Riyad Bank adding 2.8% and Saudi British Bank
climbing 2.7%.
The head of state-run energy giant Saudi Aramco said it
could use its spare capacity to meet customer demand, in
comments designed to ease concerns over oil supply security
caused by recent attacks on oil tankers near the Strait of
Hormuz, a key shipping route.
Saudi Arabia's stock market snapped a
four-day losing streak in late wave of buying on Tuesday, while
other major Middle East bourses dropped after the United States
imposed sanctions on Iran's leadership.
Saudi Arabia's share index was up 0.6% with gains
coming in last 30 minutes of trading. Banks led the late rally
with Riyad Bank adding 2.8% and Saudi British Bank
climbing 2.7%.
The head of state-run energy giant Saudi Aramco said it
could use its spare capacity to meet customer demand, in
comments designed to ease concerns over oil supply security
caused by recent attacks on oil tankers near the Strait of
Hormuz, a key shipping route.
Most Refiners Unprepared for End of `Golden Age', Deloitte Says - Bloomberg
Most Refiners Unprepared for End of `Golden Age', Deloitte Says - Bloomberg:
The vast majority oil refiners and chemical makers are ill-prepared for the looming end of the industry’s “golden age” amid the shale boom and shifting demand trends, according to Deloitte LLP.
With electric vehicles and stricter environmental regulations poised to encroach on refiners’ traditional markets, just 5% of the 1,350 companies analyzed by Deloitte have made substantial changes to their risk assessments in the past half decade.
“The golden age of downstream is coming to an end and most of the incumbent industry is not prepared for the upcoming new normal,” according to a Deloitte report authored by Duane Dickson, oil, gas and chemicals sector leader, released on Tuesday.
The vast majority oil refiners and chemical makers are ill-prepared for the looming end of the industry’s “golden age” amid the shale boom and shifting demand trends, according to Deloitte LLP.
With electric vehicles and stricter environmental regulations poised to encroach on refiners’ traditional markets, just 5% of the 1,350 companies analyzed by Deloitte have made substantial changes to their risk assessments in the past half decade.
“The golden age of downstream is coming to an end and most of the incumbent industry is not prepared for the upcoming new normal,” according to a Deloitte report authored by Duane Dickson, oil, gas and chemicals sector leader, released on Tuesday.
Double Blow for Billionaire Shetty With NMC Shorts, Finablr Drop - Bloomberg
Double Blow for Billionaire Shetty With NMC Shorts, Finablr Drop - Bloomberg:
Bavaguthu Raghuram Shetty is having a bad year in the stock market.
Persian Gulf hospital operator NMC Health Plc, where he’s co-chairman and a major shareholder, has plunged as short sellers targeted the company amid concern its governance is lacking, it’s taken on too much debt for acquisitions and its accounting is too opaque. Shares of Finablr Plc, the payments processor he founded, are trading below their initial public offering price since the company listed in London last month.
The double whammy comes amid growing investor unease with indebted, acquisitive companies, in the case of NMC, and, for Finablr, mounting competition for financial services such as payments and currency exchange.
Bavaguthu Raghuram Shetty is having a bad year in the stock market.
Persian Gulf hospital operator NMC Health Plc, where he’s co-chairman and a major shareholder, has plunged as short sellers targeted the company amid concern its governance is lacking, it’s taken on too much debt for acquisitions and its accounting is too opaque. Shares of Finablr Plc, the payments processor he founded, are trading below their initial public offering price since the company listed in London last month.
The double whammy comes amid growing investor unease with indebted, acquisitive companies, in the case of NMC, and, for Finablr, mounting competition for financial services such as payments and currency exchange.
#UAE's #Sharjah Islamic Bank to issue $500mln sukuk with 5% yield | ZAWYA MENA Edition
UAE's Sharjah Islamic Bank to issue $500mln sukuk with 5% yield | ZAWYA MENA Edition:
United Arab Emirates' Sharjah Islamic Bank SIB.AD is set to raise $500 million in capital-boosting sukuk, or Islamic bonds, with a 5% yield, a document by one of the banks leading the deal showed.
The Islamic lender received orders of up to $5 billion for the issuance, according to the document.
United Arab Emirates' Sharjah Islamic Bank SIB.AD is set to raise $500 million in capital-boosting sukuk, or Islamic bonds, with a 5% yield, a document by one of the banks leading the deal showed.
The Islamic lender received orders of up to $5 billion for the issuance, according to the document.
Petrofac flags challenges in #SaudiArabia and Iraq - Reuters
Petrofac flags challenges in Saudi Arabia and Iraq - Reuters:
British oilfield services provider Petrofac Ltd said on Tuesday that it has booked $1.7 billion in new orders so far this year even as it faced challenges in Saudi Arabia and Iraq, which has crimped its business.
Petrofac for the last two years has been navigating legal challenges as Britain probes allegations of bribery at the company. But the company has managed to sign multiple contracts and sell some assets to beef-up its core business.
In February, a former senior executive pleaded guilty to 11 counts of bribery in relation to oil deals in Iraq and Saudi Arabia as part of an investigation brought on by Britain’s Serious Fraud Office (SFO).
British oilfield services provider Petrofac Ltd said on Tuesday that it has booked $1.7 billion in new orders so far this year even as it faced challenges in Saudi Arabia and Iraq, which has crimped its business.
Petrofac for the last two years has been navigating legal challenges as Britain probes allegations of bribery at the company. But the company has managed to sign multiple contracts and sell some assets to beef-up its core business.
In February, a former senior executive pleaded guilty to 11 counts of bribery in relation to oil deals in Iraq and Saudi Arabia as part of an investigation brought on by Britain’s Serious Fraud Office (SFO).
#SaudiArabia puts off day of reckoning on oil production | Financial Times
Saudi Arabia puts off day of reckoning on oil production | Financial Times:
When Brian Hook, the US envoy on Iran, declared himself “very pleased” last week with Saudi Arabia’s efforts to ensure oil markets are well supplied, he was engaging in some diplomatic footwork worthy of an Olympic gymnast.
As tensions have soared between Washington and Tehran, the US has been grateful that the oil price has risen only marginally to $65 a barrel, despite the threat that conflict could pose to supplies from the Middle East.
But for all the public thanks, Mr Hook knows as well as any oil analyst that Saudi Arabia has played little part in keeping prices in check this year.
When Brian Hook, the US envoy on Iran, declared himself “very pleased” last week with Saudi Arabia’s efforts to ensure oil markets are well supplied, he was engaging in some diplomatic footwork worthy of an Olympic gymnast.
As tensions have soared between Washington and Tehran, the US has been grateful that the oil price has risen only marginally to $65 a barrel, despite the threat that conflict could pose to supplies from the Middle East.
But for all the public thanks, Mr Hook knows as well as any oil analyst that Saudi Arabia has played little part in keeping prices in check this year.
Pressuring #Iran Would Backfire for the U.S. If Oil Prices Rise - Bloomberg
Pressuring Iran Would Backfire for the U.S. If Oil Prices Rise - Bloomberg:
Middle East policymakers in Washington these days should take some advice from that noted diplomat, Bob Dylan.
His adage “When you ain’t got nothing, you got nothing to lose” is getting tested with the Trump administration’s “maximum pressure” sanctions regime on Iran. The outcome of this particular experiment could well determine the direction of oil prices as the U.S. heads toward presidential elections next year.
As the recent attacks on oil tankers and a U.S. unmanned drone demonstrate, in military terms it would be relatively easy for Iran to cause disruptions in the Strait of Hormuz, a bottleneck through which about a third of the world’s seaborne oil passes.
Middle East policymakers in Washington these days should take some advice from that noted diplomat, Bob Dylan.
His adage “When you ain’t got nothing, you got nothing to lose” is getting tested with the Trump administration’s “maximum pressure” sanctions regime on Iran. The outcome of this particular experiment could well determine the direction of oil prices as the U.S. heads toward presidential elections next year.
As the recent attacks on oil tankers and a U.S. unmanned drone demonstrate, in military terms it would be relatively easy for Iran to cause disruptions in the Strait of Hormuz, a bottleneck through which about a third of the world’s seaborne oil passes.
Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+ - Bloomberg
Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+ - Bloomberg:
As storm clouds gather over the world’s top oil-consuming region, OPEC and its allies would be advised to pay close attention as they prepare to make a key decision on output curbs early next month.
While the Saudi Arabian-led efforts to restrain supply amid surging North American shale production have hogged headlines, a sense of malaise is quietly creeping across Asia. With the U.S.-China trade war now almost a year old and showing no signs of ending, its impact is manifesting itself in everything from profit warnings by Japanese car makers to sagging Chinese diesel consumption.
From Ulsan in South Korea to Mailiao in Taiwan, the region’s big oil processors are cutting run rates as weak demand for fuel products erode their margins. To make matters worse, a wave of Asian mega-refineries is coming on stream this year, flooding the market with cheap fuel and setting off a price war.
As storm clouds gather over the world’s top oil-consuming region, OPEC and its allies would be advised to pay close attention as they prepare to make a key decision on output curbs early next month.
While the Saudi Arabian-led efforts to restrain supply amid surging North American shale production have hogged headlines, a sense of malaise is quietly creeping across Asia. With the U.S.-China trade war now almost a year old and showing no signs of ending, its impact is manifesting itself in everything from profit warnings by Japanese car makers to sagging Chinese diesel consumption.
From Ulsan in South Korea to Mailiao in Taiwan, the region’s big oil processors are cutting run rates as weak demand for fuel products erode their margins. To make matters worse, a wave of Asian mega-refineries is coming on stream this year, flooding the market with cheap fuel and setting off a price war.
#UAE central bank’s foreign currency assets up to $103bln in May | ZAWYA MENA Edition
UAE central bank’s foreign currency assets up to $103bln in May | ZAWYA MENA Edition:
The total foreign currency assets held by the Central Bank of the UAE increased to circa AED379.3 billion by the end of May 2019, a growth of 16.1 percent from AED326.6 billion on the same month last year, as current account balances and deposits with foreign banks strengthened to AED322.5 billion from AED257.23 billion in May 2018, according to the CBUAE figures.
The foreign assets exclude CBUAE Reserve Tranche Position and Special Drawing Rights holdings with the International Monetary Fund.
In the meantime CBUAE's held-to-maturity securities rose to around AED41.65 billion in May, with other foreign assets up to AED15.1 billion during the monitored period.
The total foreign currency assets held by the Central Bank of the UAE increased to circa AED379.3 billion by the end of May 2019, a growth of 16.1 percent from AED326.6 billion on the same month last year, as current account balances and deposits with foreign banks strengthened to AED322.5 billion from AED257.23 billion in May 2018, according to the CBUAE figures.
The foreign assets exclude CBUAE Reserve Tranche Position and Special Drawing Rights holdings with the International Monetary Fund.
In the meantime CBUAE's held-to-maturity securities rose to around AED41.65 billion in May, with other foreign assets up to AED15.1 billion during the monitored period.
Oil prices in balance between demand worries, U.S.-Iran tensions - Reuters
Oil prices in balance between demand worries, U.S.-Iran tensions - Reuters:
Oil prices hung in the balance on Tuesday as concerns over declining crude demand were offset by risks to supply linked to new U.S. sanctions on Iran.
Benchmark Brent crude futures were down 12 cents at $64.74 a barrel by 0832 GMT.
U.S. crude futures were up 3 cents at $57.93 a barrel.
Hopes for progress in the trade war between China and the United States during this week’s G20 meeting were dampened by a comment from a senior U.S. official saying U.S. President Donald Trump was “comfortable with any outcome” from the talks.
Oil prices hung in the balance on Tuesday as concerns over declining crude demand were offset by risks to supply linked to new U.S. sanctions on Iran.
Benchmark Brent crude futures were down 12 cents at $64.74 a barrel by 0832 GMT.
U.S. crude futures were up 3 cents at $57.93 a barrel.
Hopes for progress in the trade war between China and the United States during this week’s G20 meeting were dampened by a comment from a senior U.S. official saying U.S. President Donald Trump was “comfortable with any outcome” from the talks.
#AbuDhabi Islamic Bank finances #Saudi property acquisition in Manchester - Reuters
Abu Dhabi Islamic Bank finances Saudi property acquisition in Manchester - Reuters:
Abu Dhabi Islamic Bank (ADIB) said on Tuesday it provided financing to Saudi Arabia’s Cedar Tree Investments to buy a 280 million dirhams ($76.24 million) residential portfolio in Manchester.
The bank said Gulf investors are buying UK properties to diversify portfolio risk, take advantage of the weakened pound, and benefit from rental yields, particularly in cities such as Manchester, Bristol and Birmingham.
Abu Dhabi Islamic Bank (ADIB) said on Tuesday it provided financing to Saudi Arabia’s Cedar Tree Investments to buy a 280 million dirhams ($76.24 million) residential portfolio in Manchester.
The bank said Gulf investors are buying UK properties to diversify portfolio risk, take advantage of the weakened pound, and benefit from rental yields, particularly in cities such as Manchester, Bristol and Birmingham.
#Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO - Reuters
Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO - Reuters:
Saudi Aramco is concerned at recent actions in the Gulf but can meet its customers’ needs thanks to its experience and the availability of additional spare capacity, its chief executive said on Tuesday.
“What’s happening in the Gulf is definitely a concern,” Amin Nasser, president and chief executive of Saudi Arabia’s state oil giant, told Reuters in an interview.
“At the same time we went through a number of crises in the past ... we’ve always met our customer commitments and we do have flexibility and the system availability in terms of available additional spare capacity.”
Saudi Aramco is concerned at recent actions in the Gulf but can meet its customers’ needs thanks to its experience and the availability of additional spare capacity, its chief executive said on Tuesday.
“What’s happening in the Gulf is definitely a concern,” Amin Nasser, president and chief executive of Saudi Arabia’s state oil giant, told Reuters in an interview.
“At the same time we went through a number of crises in the past ... we’ve always met our customer commitments and we do have flexibility and the system availability in terms of available additional spare capacity.”
MIDEAST STOCKS-Most Gulf markets drop after U.S. slaps new sanctions on Iran - Reuters
MIDEAST STOCKS-Most Gulf markets drop after U.S. slaps new sanctions on Iran - Reuters:
Major Middle East stock markets mostly fell on Tuesday after the United States imposed sanctions on Iran’s leadership, a move Tehran said closed the door to diplomacy.
U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran after Tehran downed an unmanned American drone.
Iran said on Tuesday that U.S. sanctions imposed on Supreme Leader Ayatollah Ali Khamenei and other top officials in the country permanently closed the path to diplomacy between Tehran and Washington.
Major Middle East stock markets mostly fell on Tuesday after the United States imposed sanctions on Iran’s leadership, a move Tehran said closed the door to diplomacy.
U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran after Tehran downed an unmanned American drone.
Iran said on Tuesday that U.S. sanctions imposed on Supreme Leader Ayatollah Ali Khamenei and other top officials in the country permanently closed the path to diplomacy between Tehran and Washington.
Monday 24 June 2019
Brent Oil Retreats as Trump Tweets, Sanctions Muddy Iran Policy - Bloomberg
Brent Oil Retreats as Trump Tweets, Sanctions Muddy Iran Policy - Bloomberg:
Oil investors delivered a split decision Monday that reflected the muddy outlook for the U.S.-Iran confrontation, with global benchmark Brent crude retreating while U.S. futures gained for the third straight day.
Brent closed down 0.5% while U.S. West Texas Intermediate crude added almost 1%. Days after abruptly aborting a strike on Iran, President Donald Trump in a tweet asked “why are we protecting" the Strait of Hormuz, the critical Persian Gulf waterway. Yet he also imposed new sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, and eight military commanders.
Brent fell in part due to traders downgrading the chances of an immediate confrontation, said Bill O’Grady, chief market strategist at Confluence Investment Management LLC in St. Louis. U.S. barrels, nonetheless, may look more attractive as tensions simmer, he said; government data last week also suggested U.S. demand is on the rise, O’Grady said.
“Between higher exports and hopes for inventory contractions in the U.S., being long on WTI might make some sense," he said.
West Texas Intermediate for August delivery rose 47 cents, or 0.8%, to $57.90 a barrel at the close of official trading on the New York Mercantile Exchange. Brent for August settlement slipped 34 cents to $64.86 on London’s ICE Futures Europe Exchange.
Oil investors delivered a split decision Monday that reflected the muddy outlook for the U.S.-Iran confrontation, with global benchmark Brent crude retreating while U.S. futures gained for the third straight day.
Brent closed down 0.5% while U.S. West Texas Intermediate crude added almost 1%. Days after abruptly aborting a strike on Iran, President Donald Trump in a tweet asked “why are we protecting" the Strait of Hormuz, the critical Persian Gulf waterway. Yet he also imposed new sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, and eight military commanders.
Brent fell in part due to traders downgrading the chances of an immediate confrontation, said Bill O’Grady, chief market strategist at Confluence Investment Management LLC in St. Louis. U.S. barrels, nonetheless, may look more attractive as tensions simmer, he said; government data last week also suggested U.S. demand is on the rise, O’Grady said.
“Between higher exports and hopes for inventory contractions in the U.S., being long on WTI might make some sense," he said.
West Texas Intermediate for August delivery rose 47 cents, or 0.8%, to $57.90 a barrel at the close of official trading on the New York Mercantile Exchange. Brent for August settlement slipped 34 cents to $64.86 on London’s ICE Futures Europe Exchange.
Russia Withholds Opinion on OPEC+ Agreement, Waiting for G20 - Bloomberg
Russia Withholds Opinion on OPEC+ Agreement, Waiting for G20 - Bloomberg:
Russia is sticking to its wait-and-see approach on the future of the OPEC+ deal, while its neighbors Kazakhstan and Azerbaijan favor an extension of oil-production cuts due to expire this month.
“We need to wait until the G-20 leaders’ meeting” in Japan this week, Russia’s Energy Minister Alexander Novak told reporters in St. Petersburg. “We’ll see what will be discussed there, how the economic situation will develop.” The Energy Ministry is still holding talks with Russian oil companies on OPEC+ pact options, according to Novak.
Just a week remains before the Organization of Petroleum Exporting Countries and its partners will meet in Vienna to decide whether to prolong the deal. While Saudi Arabia has said a rollover “is almost in the bag for OPEC,” with some adjustments possible for non-OPEC countries, Russia, one of the architects of the current deal, has been holding back amid differing views from its biggest oil companies over the benefits of cooperation.
Russia is sticking to its wait-and-see approach on the future of the OPEC+ deal, while its neighbors Kazakhstan and Azerbaijan favor an extension of oil-production cuts due to expire this month.
“We need to wait until the G-20 leaders’ meeting” in Japan this week, Russia’s Energy Minister Alexander Novak told reporters in St. Petersburg. “We’ll see what will be discussed there, how the economic situation will develop.” The Energy Ministry is still holding talks with Russian oil companies on OPEC+ pact options, according to Novak.
Just a week remains before the Organization of Petroleum Exporting Countries and its partners will meet in Vienna to decide whether to prolong the deal. While Saudi Arabia has said a rollover “is almost in the bag for OPEC,” with some adjustments possible for non-OPEC countries, Russia, one of the architects of the current deal, has been holding back amid differing views from its biggest oil companies over the benefits of cooperation.
#Lebanon's Debt Fix Now Hinges on Central Bank After Lenders Balk - Bloomberg
Lebanon's Debt Fix Now Hinges on Central Bank After Lenders Balk - Bloomberg:
Lebanese lenders are turning against a government plan to coax them into buying Treasury bonds at lower interest rates, leaving the central bank to go it alone as regional turmoil and budget delays keep the market on edge.
Finance Minister Ali Hassan Khalil said in May that the government wanted to issue 11 trillion pounds ($7.3 billion) of the securities at a rate of 1%, allowing it to cut 1 trillion pounds from the cost of servicing debt under this year’s draft budget. Lenders won’t agree to purchase the bonds at a 10th of the market rate, according to Makram Sader, secretary general of the Association of Banks in Lebanon.
The central bank will most likely handle the program alone, with the details made clearer after parliament approves the final version of the budget, an official familiar with the matter said.
Lebanese lenders are turning against a government plan to coax them into buying Treasury bonds at lower interest rates, leaving the central bank to go it alone as regional turmoil and budget delays keep the market on edge.
Finance Minister Ali Hassan Khalil said in May that the government wanted to issue 11 trillion pounds ($7.3 billion) of the securities at a rate of 1%, allowing it to cut 1 trillion pounds from the cost of servicing debt under this year’s draft budget. Lenders won’t agree to purchase the bonds at a 10th of the market rate, according to Makram Sader, secretary general of the Association of Banks in Lebanon.
The central bank will most likely handle the program alone, with the details made clearer after parliament approves the final version of the budget, an official familiar with the matter said.
MIDEAST STOCKS-Geopolitical concerns continue to weigh on #Saudi, Egypt extends losses - Reuters
MIDEAST STOCKS-Geopolitical concerns continue to weigh on Saudi, Egypt extends losses - Reuters:
Saudi Arabia's stock market fell sharply
on Monday to drop for a fourth straight session as geopolitical
concerns in the Gulf region weighed, while Egypt's blue-chip
index also extended its losing streak.
Yemen's Iran-backed Houthi movement attacked Abha airport in
southern Saudi Arabia on Sunday, killing one person and wounding
21 others, the Saudi-led coalition in Yemen said.
Long-time foes Iran and the U.S. have also come the closest
in years to a direct military confrontation in the past week
with the shooting down of a U.S. drone by Iran. U.S. President
Donald Trump aborted a retaliatory strike minutes before impact.
Saudi Arabia's stock market fell sharply
on Monday to drop for a fourth straight session as geopolitical
concerns in the Gulf region weighed, while Egypt's blue-chip
index also extended its losing streak.
Yemen's Iran-backed Houthi movement attacked Abha airport in
southern Saudi Arabia on Sunday, killing one person and wounding
21 others, the Saudi-led coalition in Yemen said.
Long-time foes Iran and the U.S. have also come the closest
in years to a direct military confrontation in the past week
with the shooting down of a U.S. drone by Iran. U.S. President
Donald Trump aborted a retaliatory strike minutes before impact.
Norway wealth fund ‘crazy’ to offload oil groups, says Lundin chief | Financial Times
Norway wealth fund ‘crazy’ to offload oil groups, says Lundin chief | Financial Times:
Norway’s decision to force its sovereign wealth fund to sell out of some oil producers is “crazy” and singles out his company, says the chief executive of Lundin Petroleum, one of Europe’s largest independent producers.
Alex Schneiter said that almost no other oil company operating in Norway would be affected by the ban as they are either Norwegian-based — meaning the $1tn national oil fund is not allowed to own them — or an oil major, groups which are unaffected by the measure.
Swedish-listed and Swiss-based Lundin has been the most successful exploration company in Norway in recent times, delivering half of its discoveries including the Johan Sverdrup field, with up to 3bn barrels of oil.
Norway’s decision to force its sovereign wealth fund to sell out of some oil producers is “crazy” and singles out his company, says the chief executive of Lundin Petroleum, one of Europe’s largest independent producers.
Alex Schneiter said that almost no other oil company operating in Norway would be affected by the ban as they are either Norwegian-based — meaning the $1tn national oil fund is not allowed to own them — or an oil major, groups which are unaffected by the measure.
Swedish-listed and Swiss-based Lundin has been the most successful exploration company in Norway in recent times, delivering half of its discoveries including the Johan Sverdrup field, with up to 3bn barrels of oil.
Oil Climbs to a Three-Week High as U.S.-Iran Tensions Simmer - Bloomberg
Oil Climbs to a Three-Week High as U.S.-Iran Tensions Simmer - Bloomberg:
Oil rose to the highest level in more than three weeks as political tensions between the U.S. and Iran continued to simmer, with President Donald Trump announcing plans for further sanctions against the OPEC member.
Futures added as much as 1.4% in New York after surging 9.4% last week. Trump tweeted about the sanctions days after abruptly calling off planned air strikes against the Islamic Republic in retaliation for the shooting down of a U.S. Navy drone. Iran’s navy warned the downing of unmanned aircraft could be repeated if intrusions into its airspace continue, according to state news agency Tasnim.
“The events of last week mean that there is much for oil bulls to hang their hats on,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
Oil rose to the highest level in more than three weeks as political tensions between the U.S. and Iran continued to simmer, with President Donald Trump announcing plans for further sanctions against the OPEC member.
Futures added as much as 1.4% in New York after surging 9.4% last week. Trump tweeted about the sanctions days after abruptly calling off planned air strikes against the Islamic Republic in retaliation for the shooting down of a U.S. Navy drone. Iran’s navy warned the downing of unmanned aircraft could be repeated if intrusions into its airspace continue, according to state news agency Tasnim.
“The events of last week mean that there is much for oil bulls to hang their hats on,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
#Kuwait Exchange Sees $2.8 Billion of Inflows on MSCI Upgrade - Bloomberg
Kuwait Exchange Sees $2.8 Billion of Inflows on MSCI Upgrade - Bloomberg:
MSCI Inc. will probably upgrade Kuwaiti equities to its main emerging-market index this week, which could trigger $2.8 billion of inflows from passive funds, according to the head of the nation’s stock exchange.
“We have ticked all the boxes that are required by MSCI,” Mohammad Al-Osaimi, the acting chief executive officer of Boursa Kuwait, said in an interview on Sunday. “We have also offered international investors additional services and products they were looking for and some changes in bylaws they requested. We have touched base with them on our roadshows. We saw a comfortable response.”
The New York-based index compiler, whose emerging-market group of indexes has about $1.8 trillion of assets tied to it, will announce on June 25 whether it’s lifting the country from its current frontier classification. The decision will become public shortly after 10:30 p.m. Central European Summer Time.
MSCI Inc. will probably upgrade Kuwaiti equities to its main emerging-market index this week, which could trigger $2.8 billion of inflows from passive funds, according to the head of the nation’s stock exchange.
“We have ticked all the boxes that are required by MSCI,” Mohammad Al-Osaimi, the acting chief executive officer of Boursa Kuwait, said in an interview on Sunday. “We have also offered international investors additional services and products they were looking for and some changes in bylaws they requested. We have touched base with them on our roadshows. We saw a comfortable response.”
The New York-based index compiler, whose emerging-market group of indexes has about $1.8 trillion of assets tied to it, will announce on June 25 whether it’s lifting the country from its current frontier classification. The decision will become public shortly after 10:30 p.m. Central European Summer Time.
Zain #Saudi's shares plunge following cancelled tower sales announcement | ZAWYA MENA Edition
Zain Saudi's shares plunge following cancelled tower sales announcement | ZAWYA MENA Edition:
Mobile Telecommunications Company Saudi Arabia (Zain) announced late on Sunday that it had decided not to sell its towers to IHS Holding Limited for regulatory reasons, triggering a sharp drop in its shares on Monday.
Zain received a letter from Saudi Arabia’s Communications and Information Technology Commission (CITC) stating that IHS did not meet the regulatory requirements and did not obtain the license required to lease and purchase Zain Saudi’s towers.
Zain first said back in 2016 that it was exploring the sale of its passive tower infrastructure. In August 2017, the company announced that its board of directors decided to enter into exclusive negotiations with a consortium led by IHS Holding Limited and Towershare Management Limited for the sale and leaseback (SLB) of its towers. In November 2018, it announced that it had agreed a 15-year deal covering the sale and leaseback of 8,100 towers worth 2.43 billion Saudi riyals ($647.7 million).
Mobile Telecommunications Company Saudi Arabia (Zain) announced late on Sunday that it had decided not to sell its towers to IHS Holding Limited for regulatory reasons, triggering a sharp drop in its shares on Monday.
Zain received a letter from Saudi Arabia’s Communications and Information Technology Commission (CITC) stating that IHS did not meet the regulatory requirements and did not obtain the license required to lease and purchase Zain Saudi’s towers.
Zain first said back in 2016 that it was exploring the sale of its passive tower infrastructure. In August 2017, the company announced that its board of directors decided to enter into exclusive negotiations with a consortium led by IHS Holding Limited and Towershare Management Limited for the sale and leaseback (SLB) of its towers. In November 2018, it announced that it had agreed a 15-year deal covering the sale and leaseback of 8,100 towers worth 2.43 billion Saudi riyals ($647.7 million).
Demand uncertainty weighs on decision over oil pact: Russia minister - Reuters
Demand uncertainty weighs on decision over oil pact: Russia minister - Reuters:
Uncertainty over global oil demand in the second half of this year, including the effect of U.S. sanctions, will have a big impact on whether Russia backs extending a deal on oil output cuts, Russian Energy Minister Alexander Novak said on Monday.
The Organization of the Petroleum Exporting Countries and other leading oil producers have an agreement to cut their combined oil output but this expires at the end of this month. Talks on whether to extend the pact are scheduled for July 1-2 in Vienna.
Speaking to reporters on the sidelines of an energy forum in St Petersburg, Novak, when asked about an extension of the deal between OPEC and non-OPEC oil producers, said: “It’s too early to say.”
Uncertainty over global oil demand in the second half of this year, including the effect of U.S. sanctions, will have a big impact on whether Russia backs extending a deal on oil output cuts, Russian Energy Minister Alexander Novak said on Monday.
The Organization of the Petroleum Exporting Countries and other leading oil producers have an agreement to cut their combined oil output but this expires at the end of this month. Talks on whether to extend the pact are scheduled for July 1-2 in Vienna.
Speaking to reporters on the sidelines of an energy forum in St Petersburg, Novak, when asked about an extension of the deal between OPEC and non-OPEC oil producers, said: “It’s too early to say.”
#Qatar will invest $3 billion in Pakistan, state news agency says - Reuters
Qatar will invest $3 billion in Pakistan, state news agency says - Reuters:
Qatar is making $3 billion worth of new investments in Pakistan, in the form of deposits and direct investments, the Qatari state news agency QNA said on Monday.
Following this investment, the economic partnership between Qatar and Pakistan will reach $9 billion, the agency reported, quoting Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani.
Last month, Pakistan reached an accord in principle with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up its fragile public finances and strengthening a slowing economy.
Qatar is making $3 billion worth of new investments in Pakistan, in the form of deposits and direct investments, the Qatari state news agency QNA said on Monday.
Following this investment, the economic partnership between Qatar and Pakistan will reach $9 billion, the agency reported, quoting Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani.
Last month, Pakistan reached an accord in principle with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up its fragile public finances and strengthening a slowing economy.
Filling #Iran oil gap in India: U.S. supplies outshine Middle East crude - Reuters
Filling Iran oil gap in India: U.S. supplies outshine Middle East crude - Reuters:
A surge in India’s oil imports from the United States outpaced growth in shipments from its traditional suppliers in the Middle East, after Washington imposed sanctions on Tehran in November, according to tanker arrival data obtained from sources.
U.S. President Donald Trump’s administration renewed sanctions against Iran last year over its nuclear program, although some buyers were allowed to continue taking limited volumes of Iranian oil under a six-month waiver.
In May, the United States ended those exemptions and said countries that continued to buy Iranian oil would face sanctions, but India buyers had already begun shifting some of their sourcing away from the Middle East.
A surge in India’s oil imports from the United States outpaced growth in shipments from its traditional suppliers in the Middle East, after Washington imposed sanctions on Tehran in November, according to tanker arrival data obtained from sources.
U.S. President Donald Trump’s administration renewed sanctions against Iran last year over its nuclear program, although some buyers were allowed to continue taking limited volumes of Iranian oil under a six-month waiver.
In May, the United States ended those exemptions and said countries that continued to buy Iranian oil would face sanctions, but India buyers had already begun shifting some of their sourcing away from the Middle East.
#Qatar teams up with Chevron Phillips for petrochemical project - Reuters
Qatar teams up with Chevron Phillips for petrochemical project - Reuters:
Qatar Petroleum has signed an agreement with Chevron Phillips Chemical to build a new petrochemicals complex, part of plans by the world’s top liquefied natural gas (LNG) exporter to broaden its energy interests.
The project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.
Saudi Arabia’s and UAE’s national oil companies have both already announced plans to boost their refining capacity and petrochemicals operations.
Qatar Petroleum has signed an agreement with Chevron Phillips Chemical to build a new petrochemicals complex, part of plans by the world’s top liquefied natural gas (LNG) exporter to broaden its energy interests.
The project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.
Saudi Arabia’s and UAE’s national oil companies have both already announced plans to boost their refining capacity and petrochemicals operations.
Russia/ #Saudi Oil Bromance Is a Pairing of Convenience for OPEC - Bloomberg
Russia/Saudi Oil Bromance Is a Pairing of Convenience for OPEC - Bloomberg:
They got there in the end. After a fraught period when nobody could agree on when to meet, OPEC and its friends will gather on July 1-2 in Vienna. All 24 oil ministers will have to decide whether to renew their commitment to output cuts, which have have already run five times longer than originally intended.
OPEC’s three biggest members – Saudi Arabia, Iraq and the United Arab Emirates – are all willing to continue the policy of reduced production. But the big question is what Russia will do.
Though it has a lot of reason to back away from the deal, it will continue to pay lip service to the agreement. President Vladimir Putin’s wider ambitions to rebuild the country’s geopolitical role in the Middle East will outweigh objections from the boss of the country’s biggest oil company and any evidence that the cuts are undermining economic growth.
They got there in the end. After a fraught period when nobody could agree on when to meet, OPEC and its friends will gather on July 1-2 in Vienna. All 24 oil ministers will have to decide whether to renew their commitment to output cuts, which have have already run five times longer than originally intended.
OPEC’s three biggest members – Saudi Arabia, Iraq and the United Arab Emirates – are all willing to continue the policy of reduced production. But the big question is what Russia will do.
Though it has a lot of reason to back away from the deal, it will continue to pay lip service to the agreement. President Vladimir Putin’s wider ambitions to rebuild the country’s geopolitical role in the Middle East will outweigh objections from the boss of the country’s biggest oil company and any evidence that the cuts are undermining economic growth.
#Saudi equity market upgrades bring in $10.8bln of foreign inflows this year: IIF | ZAWYA MENA Edition
Saudi equity market upgrades bring in $10.8bln of foreign inflows this year: IIF | ZAWYA MENA Edition:
Saudi Arabia has attracted $10.8 billion worth of foreign equity investment as a result of upgrades to its stock market to emerging market status by index providers FTSE Russell and MSCI, according to a new paper.
The Institute of International Finance (IIF) said that its Capital Flows Tracker highlighted that "foreign investors have significantly increased their exposure to Saudi equities" ahead of MSCI's upgrade, which began late last month. It will take place in two tranches - in May and August. FTSE Russell's upgrade began in March and will be spread over five tranches. (Read more here).
The IIF said that May was generally a poor month for emerging market equities, with outflows of $14.7 billion experienced during the month - about half of this was money pulled from Chinese equities.
Saudi Arabia has attracted $10.8 billion worth of foreign equity investment as a result of upgrades to its stock market to emerging market status by index providers FTSE Russell and MSCI, according to a new paper.
The Institute of International Finance (IIF) said that its Capital Flows Tracker highlighted that "foreign investors have significantly increased their exposure to Saudi equities" ahead of MSCI's upgrade, which began late last month. It will take place in two tranches - in May and August. FTSE Russell's upgrade began in March and will be spread over five tranches. (Read more here).
The IIF said that May was generally a poor month for emerging market equities, with outflows of $14.7 billion experienced during the month - about half of this was money pulled from Chinese equities.
MIDEAST STOCKS- #SaudiArabia falls for a fourth day on Gulf concerns - Reuters
MIDEAST STOCKS-Saudi Arabia falls for a fourth day on Gulf concerns - Reuters:
Saudi Arabia’s stock market dropped for a fourth straight day on Monday as geopolitical concerns in the Gulf region weighed.
Yemen’s Houthi movement attacked Abha airport in southern Saudi Arabia on Sunday, killing one person and wounding 21 others, the Saudi-led coalition in Yemen said.
And tensions between Iran and the United States remained high after Secretary of State Mike Pompeo said the U.S. would announce “significant” sanctions against Tehran.
Saudi Arabia’s stock market dropped for a fourth straight day on Monday as geopolitical concerns in the Gulf region weighed.
Yemen’s Houthi movement attacked Abha airport in southern Saudi Arabia on Sunday, killing one person and wounding 21 others, the Saudi-led coalition in Yemen said.
And tensions between Iran and the United States remained high after Secretary of State Mike Pompeo said the U.S. would announce “significant” sanctions against Tehran.
Oil Gains as New Sanctions Set to Ratchet Up Pressure on #Iran - Bloomberg
Oil Gains as New Sanctions Set to Ratchet Up Pressure on Iran - Bloomberg: Oil extended its rally after the U.S. said it was preparing new sanctions against Iran, further escalating tensions between the two states.
Futures in New York were up 0.5%, after surging 9.4% last week -- the biggest weekly gain in more than two years. U.S. Secretary of State Mike Pompeo said a “significant set of new sanctions” against Iran would come on Monday, although President Donald Trump said he was willing to negotiate with Iranian leaders with “no preconditions” to ensure the Islamic Republic never acquires a nuclear weapon.
It emerged Friday that Trump had aborted planned air strikes against Iran, citing concern that the death toll wouldn’t have been “proportionate” to Iran’s downing of an American spy drone earlier in the week. Trump said he was in “no hurry” to respond.
Futures in New York were up 0.5%, after surging 9.4% last week -- the biggest weekly gain in more than two years. U.S. Secretary of State Mike Pompeo said a “significant set of new sanctions” against Iran would come on Monday, although President Donald Trump said he was willing to negotiate with Iranian leaders with “no preconditions” to ensure the Islamic Republic never acquires a nuclear weapon.
It emerged Friday that Trump had aborted planned air strikes against Iran, citing concern that the death toll wouldn’t have been “proportionate” to Iran’s downing of an American spy drone earlier in the week. Trump said he was in “no hurry” to respond.
#Saudi, #UAE Bank Revenues Seen Pressured by U.S. Rate Cuts - Bloomberg
Saudi, U.A.E. Bank Revenues Seen Pressured by U.S. Rate Cuts - Bloomberg: Saudi Arabia and United Arab Emirates banks may have their annual revenue estimates cut by one or two percentage points for every 25 basis basis point decline in U.S. interest rates, according to Bloomberg Intelligence.
A 25 basis point cut in U.S. rates will pull down the net interest margin at banks by about 6 basis points, analyst Edmond Christou said in a report on Sunday. The margin is the difference between what a bank earns on assets such as loans and what it pays out on liabilities such as deposits.
Currencies in Saudi Arabia and the U.A.E. are pegged to the dollar, and the two countries usually follow interest-rate changes made by the U.S. Federal Reserve. The market is pricing in about a 75 basis point reduction in U.S. rates by year-end, data compiled by Bloomberg show.
A 25 basis point cut in U.S. rates will pull down the net interest margin at banks by about 6 basis points, analyst Edmond Christou said in a report on Sunday. The margin is the difference between what a bank earns on assets such as loans and what it pays out on liabilities such as deposits.
Currencies in Saudi Arabia and the U.A.E. are pegged to the dollar, and the two countries usually follow interest-rate changes made by the U.S. Federal Reserve. The market is pricing in about a 75 basis point reduction in U.S. rates by year-end, data compiled by Bloomberg show.
Gulf Spreads May Fall as Trump Favors #Iran Sanctions Over Attack - Bloomberg
Gulf Spreads May Fall as Trump Favors Iran Sanctions Over Attack - Bloomberg:
Investors in Gulf assets breathed a sigh of relief after U.S. President Donald Trump showed restraint against Iran.
Calling off airstrikes and opting for additional sanctions on Iran eases the risk of military combat between the Persian nation and its Arab neighbors, and will probably have a positive impact on GCC spreads, according to Arqaam Capital Ltd.
“While GCC bonds have continued to rally despite the uncertain geopolitical environment, they have under-performed emerging-market peers,” said Dubai-based Abdul Kadir Hussain, the head of fixed-income asset management. An easing of geopolitical risk “may also mean that issuers like Oman that have been waiting for a toning down of political rhetoric might use the opportunity to issue,” he said.
Investors in Gulf assets breathed a sigh of relief after U.S. President Donald Trump showed restraint against Iran.
Calling off airstrikes and opting for additional sanctions on Iran eases the risk of military combat between the Persian nation and its Arab neighbors, and will probably have a positive impact on GCC spreads, according to Arqaam Capital Ltd.
“While GCC bonds have continued to rally despite the uncertain geopolitical environment, they have under-performed emerging-market peers,” said Dubai-based Abdul Kadir Hussain, the head of fixed-income asset management. An easing of geopolitical risk “may also mean that issuers like Oman that have been waiting for a toning down of political rhetoric might use the opportunity to issue,” he said.
Sunday 23 June 2019
#SaudiArabia launches special residency scheme for expats | ZAWYA MENA Edition
Saudi Arabia launches special residency scheme for expats | ZAWYA MENA Edition:
Saudi Arabia launched on Sunday their new special residency scheme similar to green card systems applicable in other countries, aimed at attracting wealthy and high-skilled expats.
The residency scheme offers two types of residencies, a permanent one for 800,000 Saudi riyals ($213,321.96) and a one year but renewable residency for 100,000 Saudi riyals ($26,665.24).
The scheme was approved by the Saudi cabinet last month, but on Sunday the online portal to apply was opened to the public.
Saudi Arabia launched on Sunday their new special residency scheme similar to green card systems applicable in other countries, aimed at attracting wealthy and high-skilled expats.
The residency scheme offers two types of residencies, a permanent one for 800,000 Saudi riyals ($213,321.96) and a one year but renewable residency for 100,000 Saudi riyals ($26,665.24).
The scheme was approved by the Saudi cabinet last month, but on Sunday the online portal to apply was opened to the public.
#UAE central bank focuses on real estate in anti-money laundering efforts - Reuters
UAE central bank focuses on real estate in anti-money laundering efforts - Reuters:
The United Arab Emirates Central Bank is focusing on the real estate sector as part of its work to combat money laundering in the country, an official said on Sunday.
The UAE has been tightening its financial regulations to fight the perception among some foreign investors that it is a hot spot for illicit funds due to its free trade zones and geographic proximity to Iran.
On Sunday, the Central Bank said it will use a new anti-money laundering reporting platform starting from the end of June to identify illicit transactions more effectively.
The United Arab Emirates Central Bank is focusing on the real estate sector as part of its work to combat money laundering in the country, an official said on Sunday.
The UAE has been tightening its financial regulations to fight the perception among some foreign investors that it is a hot spot for illicit funds due to its free trade zones and geographic proximity to Iran.
On Sunday, the Central Bank said it will use a new anti-money laundering reporting platform starting from the end of June to identify illicit transactions more effectively.
MIDEAST STOCKS- #Saudi leads major Middle East markets lower as regional tensions worsen - Reuters
MIDEAST STOCKS-Saudi leads major Middle East markets lower as regional tensions worsen - Reuters:
Middle Eastern stock markets fell
on Sunday, led by Saudi Arabia, as political tensions ramped up
after U. S. President Donald Trump announcing new sanctions on
Iran.
Trump on Saturday said additional sanctions would be imposed
on Monday but that he wanted to make a deal to bolster Iran's
flagging economy, an apparent move to defuse tensions following
the shooting down of an unmanned U.S. drone last week by Iran.
The Saudi index fell 1.5%, extending losses from the
previous two sessions, as banking shares slid.
Middle Eastern stock markets fell
on Sunday, led by Saudi Arabia, as political tensions ramped up
after U. S. President Donald Trump announcing new sanctions on
Iran.
Trump on Saturday said additional sanctions would be imposed
on Monday but that he wanted to make a deal to bolster Iran's
flagging economy, an apparent move to defuse tensions following
the shooting down of an unmanned U.S. drone last week by Iran.
The Saudi index fell 1.5%, extending losses from the
previous two sessions, as banking shares slid.
MIDEAST STOCKS-Most Gulf markets lower as regional geopolitical tensions worsen - Reuters
MIDEAST STOCKS-Most Gulf markets lower as regional geopolitical tensions worsen - Reuters:
Most Gulf markets opened lower on Sunday, weighed down by deteriorating political relations in the region and after U.S. President Donald Trump announced he would impose new sanctions on Iran.
Trump on Saturday said additional sanctions would be imposed on Monday but that he wanted to make a deal to bolster Iran’s flagging economy, an apparent move to defuse tensions following the shooting down of an unmanned U.S. drone last week by Iran.
The Saudi index, which fell in the previous two sessions, was down 0.4 percent, with many banking shares sliding.
Most Gulf markets opened lower on Sunday, weighed down by deteriorating political relations in the region and after U.S. President Donald Trump announced he would impose new sanctions on Iran.
Trump on Saturday said additional sanctions would be imposed on Monday but that he wanted to make a deal to bolster Iran’s flagging economy, an apparent move to defuse tensions following the shooting down of an unmanned U.S. drone last week by Iran.
The Saudi index, which fell in the previous two sessions, was down 0.4 percent, with many banking shares sliding.
Kushner's economic plan for Mideast peace faces broad Arab rejection - Reuters
Kushner's economic plan for Mideast peace faces broad Arab rejection - Reuters:
U.S. President Donald Trump’s economic vision as part of the wider plan to resolve the Israeli-Palestinian conflict was met with contempt, repudiation and exasperation in the Arab world, even as some in the Gulf called for it to be given a chance.
The $50 billion “peace to prosperity” plan, set to be presented by Trump’s son-in-law Jared Kushner at a conference in Bahrain next week, envisions a global investment fund to lift the Palestinian and neighboring Arab state economies.
But the lack of a political solution, which Washington has said would be unveiled later, prompted rejection not only from Palestinians but also in Arab countries that Israel would seek normal relations with.
U.S. President Donald Trump’s economic vision as part of the wider plan to resolve the Israeli-Palestinian conflict was met with contempt, repudiation and exasperation in the Arab world, even as some in the Gulf called for it to be given a chance.
The $50 billion “peace to prosperity” plan, set to be presented by Trump’s son-in-law Jared Kushner at a conference in Bahrain next week, envisions a global investment fund to lift the Palestinian and neighboring Arab state economies.
But the lack of a political solution, which Washington has said would be unveiled later, prompted rejection not only from Palestinians but also in Arab countries that Israel would seek normal relations with.
#Sharjah Islamic Bank eyes double-digit loan growth, up to $500 mln bonds - Reuters
Sharjah Islamic Bank eyes double-digit loan growth, up to $500 mln bonds - Reuters:
Sharjah Islamic Bank (SIB), which will conclude in London on Monday a series of investor meetings ahead of an Islamic dollar bond sale, is targeting double-digit loan growth this year, a bank’s executive told Reuters.
The lender is looking to raise up to $500 million with its planned debt sale, which will boost its Tier 1 core capital and total capital ratios, said Ahmed Saad, deputy chief executive.
“At present, the SIB’s core capital … is not only strong but is way above the Central Bank of the UAE’s requirements. We are looking to strengthen our capital for future growth opportunities.”
Sharjah Islamic Bank (SIB), which will conclude in London on Monday a series of investor meetings ahead of an Islamic dollar bond sale, is targeting double-digit loan growth this year, a bank’s executive told Reuters.
The lender is looking to raise up to $500 million with its planned debt sale, which will boost its Tier 1 core capital and total capital ratios, said Ahmed Saad, deputy chief executive.
“At present, the SIB’s core capital … is not only strong but is way above the Central Bank of the UAE’s requirements. We are looking to strengthen our capital for future growth opportunities.”
Saturday 22 June 2019
Trump Says Major Sanctions on #Iran Monday After Drone Downed - Bloomberg
Trump Says Major Sanctions on Iran Monday After Drone Downed - Bloomberg:
President Donald Trump said the U.S. will impose major new sanctions on Iran Monday, days after he abruptly called off a plan for airstrikes against the Islamic Republic based on the concept of proportionality after Iran shot down a U.S. Navy drone.
The sanctions move, announced on Twitter with no additional detail, came as Trump spent the day at the Camp David presidential retreat having meetings and phone calls. The president foreshadowed the sanctions action earlier, in remarks at the White House.
Trump told reporters he intended to impose additional economic sanctions and that military action is “always on the table until we get this solved” and that if Iran’s leadership “behaves badly, it’s going to be a very bad day for them.”
President Donald Trump said the U.S. will impose major new sanctions on Iran Monday, days after he abruptly called off a plan for airstrikes against the Islamic Republic based on the concept of proportionality after Iran shot down a U.S. Navy drone.
The sanctions move, announced on Twitter with no additional detail, came as Trump spent the day at the Camp David presidential retreat having meetings and phone calls. The president foreshadowed the sanctions action earlier, in remarks at the White House.
Trump told reporters he intended to impose additional economic sanctions and that military action is “always on the table until we get this solved” and that if Iran’s leadership “behaves badly, it’s going to be a very bad day for them.”
Trump dials back rhetoric on #Iran, says he wants to make a deal - Reuters
Trump dials back rhetoric on Iran, says he wants to make a deal - Reuters:
U.S. President Donald Trump said on Saturday he would impose fresh sanctions on Iran but that he wanted to make a deal to bolster its flagging economy, an apparent move to defuse tensions following the shooting down of an unmanned U.S. drone this week by the Islamic Republic.
On Thursday, an Iranian missile destroyed a U.S. Global Hawk surveillance drone, an incident that Washington said happened in international airspace.
Tehran repeated on Saturday that the drone was shot down over its territory and said it would respond firmly to any U.S. threat.
U.S. President Donald Trump said on Saturday he would impose fresh sanctions on Iran but that he wanted to make a deal to bolster its flagging economy, an apparent move to defuse tensions following the shooting down of an unmanned U.S. drone this week by the Islamic Republic.
On Thursday, an Iranian missile destroyed a U.S. Global Hawk surveillance drone, an incident that Washington said happened in international airspace.
Tehran repeated on Saturday that the drone was shot down over its territory and said it would respond firmly to any U.S. threat.
Exclusive: White House's Kushner unveils economic portion of Middle East peace plan - Reuters
Exclusive: White House's Kushner unveils economic portion of Middle East peace plan - Reuters:
The White House on Saturday outlined a $50 billion Middle East economic plan that would create a global investment fund to lift the Palestinian and neighboring Arab state economies, and fund a $5 billion transportation corridor to connect the West Bank and Gaza.
The “peace to prosperity” plan, set to be presented by White House senior adviser Jared Kushner at an international conference in Bahrain next week, includes 179 infrastructure and business projects, according to details of the plan and interviews with U.S. officials. The approach toward reviving the moribund Israeli-Palestinian peace process was criticized by the Palestinians on Saturday.
The ambitious economic revival plan, the product of two years of work by Kushner and other aides, would take place only if a political solution to the region’s long-running problems is reached.
The White House on Saturday outlined a $50 billion Middle East economic plan that would create a global investment fund to lift the Palestinian and neighboring Arab state economies, and fund a $5 billion transportation corridor to connect the West Bank and Gaza.
The “peace to prosperity” plan, set to be presented by White House senior adviser Jared Kushner at an international conference in Bahrain next week, includes 179 infrastructure and business projects, according to details of the plan and interviews with U.S. officials. The approach toward reviving the moribund Israeli-Palestinian peace process was criticized by the Palestinians on Saturday.
The ambitious economic revival plan, the product of two years of work by Kushner and other aides, would take place only if a political solution to the region’s long-running problems is reached.
UPDATE 1- #SaudiArabia named full member of anti-illicit funding body - Reuters
UPDATE 1-Saudi Arabia named full member of anti-illicit funding body - Reuters:
Saudi Arabia has been granted full membership of the Financial Action Task Force (FATF), a global body dedicated to fighting illicit money flows, Saudi Arabia’s monetary authority said on Friday.
The kingdom had been previously denied membership after not meeting criteria in anti-money laundering and counter terrorism financing, and its accession will likely be a boost to its standing with foreign investors.
“The kingdom’s accession to the group will enhance its role in international forums and will highlight its efforts in the area of combating money laundering and the financing of terrorism,” the authority said in a statement.
Saudi Arabia has been granted full membership of the Financial Action Task Force (FATF), a global body dedicated to fighting illicit money flows, Saudi Arabia’s monetary authority said on Friday.
The kingdom had been previously denied membership after not meeting criteria in anti-money laundering and counter terrorism financing, and its accession will likely be a boost to its standing with foreign investors.
“The kingdom’s accession to the group will enhance its role in international forums and will highlight its efforts in the area of combating money laundering and the financing of terrorism,” the authority said in a statement.
The week in energy: The oil chokepoint | Financial Times
The week in energy: The oil chokepoint | Financial Times:
When Hillary Clinton was trying unsuccessfully to win the Democratic party’s presidential nomination in 2008, her campaign ran a famous ad that asked: “It’s 3am, and your children are safe and asleep. Who do you want answering the phone?” After his last-minute decision to call off planned strikes against Iranian targets on Thursday evening, we now have a bit more of a sense of how President Donald Trump responds in that kind of crisis.
As the president described it on Twitter on Friday morning, US forces were “cocked and loaded” — with aircraft reportedly already en route towards their targets — when he asked how many people were likely to be killed in the strikes. When he was told that it was 150, Mr Trump said, he stopped the strike 10 minutes before it was scheduled to go ahead, because it would not have been “proportionate to shooting down an unmanned drone”.
Despite the president’s decision not to escalate the situation, tensions are still running high after a US reconnaissance drone was shot down by Iran over the Gulf on Thursday. Oil prices have been rising, with Brent crude ending the week up about $4 a barrel at just over $65, reflecting fears that the confrontation could turn into a conflict that will disrupt crude flows out of the Gulf.
When Hillary Clinton was trying unsuccessfully to win the Democratic party’s presidential nomination in 2008, her campaign ran a famous ad that asked: “It’s 3am, and your children are safe and asleep. Who do you want answering the phone?” After his last-minute decision to call off planned strikes against Iranian targets on Thursday evening, we now have a bit more of a sense of how President Donald Trump responds in that kind of crisis.
As the president described it on Twitter on Friday morning, US forces were “cocked and loaded” — with aircraft reportedly already en route towards their targets — when he asked how many people were likely to be killed in the strikes. When he was told that it was 150, Mr Trump said, he stopped the strike 10 minutes before it was scheduled to go ahead, because it would not have been “proportionate to shooting down an unmanned drone”.
Despite the president’s decision not to escalate the situation, tensions are still running high after a US reconnaissance drone was shot down by Iran over the Gulf on Thursday. Oil prices have been rising, with Brent crude ending the week up about $4 a barrel at just over $65, reflecting fears that the confrontation could turn into a conflict that will disrupt crude flows out of the Gulf.
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