 |
Image creditsCreator:Christian HorzCredit:Getty Images/iStockphoto |
Tuesday 31 December 2019
Happy New Year for 2020, as this blog enters twelfth year of publication via blogger
Oil posts biggest yearly rise since 2016 - Reuters
Oil posts biggest yearly rise since 2016 - Reuters:
Oil prices fell 1% on Tuesday, the last trading day of the decade, but notched the biggest annual gain in three years, supported by a thaw in the prolonged U.S.-China trade war and ongoing supply cuts from major oil producers.
Brent gained about 23% in 2019 and WTI rose 34%, their biggest yearly gains in three years, backed by the recent breakthrough in the trade talks and output cuts pledged by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Forecasters do not expect oil prices to move sharply in either direction next year. Brent crude is expected to hover around $63 a barrel, a Reuters poll showed on Tuesday, down modestly from current levels, as OPEC production cuts offset weaker demand.
Over the past year, increased U.S. oil output offset the supply reductions undertaken by OPEC, led by Saudi Arabia and stemming from U.S. sanctions on Venezuela and Iran. Lackluster demand, including in developed economies, remains a primary concern headed into 2020.
Brent crude LCOc1 fell 67 cents, or 1%, to settle at $66.00 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 62 cents, or 1%, to settle at $61.06 a barrel.
On Tuesday, trade volumes were low with many market participants away for year-end holidays, amplifying the market’s moves.
Oil prices fell 1% on Tuesday, the last trading day of the decade, but notched the biggest annual gain in three years, supported by a thaw in the prolonged U.S.-China trade war and ongoing supply cuts from major oil producers.
Brent gained about 23% in 2019 and WTI rose 34%, their biggest yearly gains in three years, backed by the recent breakthrough in the trade talks and output cuts pledged by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Forecasters do not expect oil prices to move sharply in either direction next year. Brent crude is expected to hover around $63 a barrel, a Reuters poll showed on Tuesday, down modestly from current levels, as OPEC production cuts offset weaker demand.
Over the past year, increased U.S. oil output offset the supply reductions undertaken by OPEC, led by Saudi Arabia and stemming from U.S. sanctions on Venezuela and Iran. Lackluster demand, including in developed economies, remains a primary concern headed into 2020.
Brent crude LCOc1 fell 67 cents, or 1%, to settle at $66.00 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 62 cents, or 1%, to settle at $61.06 a barrel.
On Tuesday, trade volumes were low with many market participants away for year-end holidays, amplifying the market’s moves.
End of the party: why Lebanon’s debt crisis has left it vulnerable | Financial Times
End of the party: why Lebanon’s debt crisis has left it vulnerable | Financial Times:
In 2008, as mountains of bad debt collapsed and economies around the world crumbled, carefree gamblers at the central bank-owned Casino du Liban rolled dice and spun roulette wheels. Unscathed by the global financial crisis, Beirut glittered as the Middle East’s party capital and purveyor of discrete financial services.
Lebanon offered wealthy investors something they could not get elsewhere — high interest rates for low risk investments. While the rest of the world’s central banks tried to boost post-crisis recovery by holding borrowing costs at 1 per cent or less, the Banque du Liban pushed rates up so high that returns of more than 10 per cent became common for depositors. The central bank paid so much because it badly needed a constant supply of dollars to maintain a currency peg against the US dollar, pay for imports and fund the government. “Lebanon relies on remittances,” Riad Salame, central bank governor, told the FT in 2018.
That reliance on money from overseas left the government vulnerable and sliding ever further into debt, especially as economic growth has been sluggish since the start of the Arab spring in 2011. A bungled October effort at raising funds via a tax on WhatsApp calls triggered Lebanon’s biggest protests in over a decade, adding to the political paralysis and deepening the economic crisis.
In 2008, as mountains of bad debt collapsed and economies around the world crumbled, carefree gamblers at the central bank-owned Casino du Liban rolled dice and spun roulette wheels. Unscathed by the global financial crisis, Beirut glittered as the Middle East’s party capital and purveyor of discrete financial services.
Lebanon offered wealthy investors something they could not get elsewhere — high interest rates for low risk investments. While the rest of the world’s central banks tried to boost post-crisis recovery by holding borrowing costs at 1 per cent or less, the Banque du Liban pushed rates up so high that returns of more than 10 per cent became common for depositors. The central bank paid so much because it badly needed a constant supply of dollars to maintain a currency peg against the US dollar, pay for imports and fund the government. “Lebanon relies on remittances,” Riad Salame, central bank governor, told the FT in 2018.
That reliance on money from overseas left the government vulnerable and sliding ever further into debt, especially as economic growth has been sluggish since the start of the Arab spring in 2011. A bungled October effort at raising funds via a tax on WhatsApp calls triggered Lebanon’s biggest protests in over a decade, adding to the political paralysis and deepening the economic crisis.
 |
| A bungled October effort at raising funds via a tax on WhatsApp calls triggered huge street protests © Mohamed Azakir/Reuters |
#Russia and #Ukraine sign deal to secure European gas flows | Financial Times
Russia and Ukraine sign deal to secure European gas flows | Financial Times:
Russia and Ukraine have struck a deal that guarantees the flow of gas to Europe for a further five years, a day before the expiry of the previous 10-year contract between their national gas companies.
The new deal closes off a potential schism between Russia and Europe while benefiting Ukraine financially.
Alexei Miller, Gazprom chief executive, said in a statement released late on Monday that the agreement between the Russian state-owned gas company and Ukraine’s Naftogaz had been reached after five days of talks in Vienna.
It is made up of a series of contracts encompassing a “large package deal restoring the interests of both sides”, Mr Miller said.
Russia and Ukraine have struck a deal that guarantees the flow of gas to Europe for a further five years, a day before the expiry of the previous 10-year contract between their national gas companies.
The new deal closes off a potential schism between Russia and Europe while benefiting Ukraine financially.
Alexei Miller, Gazprom chief executive, said in a statement released late on Monday that the agreement between the Russian state-owned gas company and Ukraine’s Naftogaz had been reached after five days of talks in Vienna.
It is made up of a series of contracts encompassing a “large package deal restoring the interests of both sides”, Mr Miller said.
Oil’s Turbulent 2019: #Saudi Supply Panic to Freight Rate Frenzy - Bloomberg
Oil’s Turbulent 2019: Saudi Supply Panic to Freight Rate Frenzy - Bloomberg:
It’s been a tumultuous 2019 for the oil market. The year has seen surging crude prices due to attacks on key Saudi Arabian energy facilities and skyrocketing freight rates after American sanctions on Chinese shipping companies. On another front, oil processing margins in Asia have slumped to the lowest in more than a decade, while IMO 2020 is rattling the market.
Here are four charts that showcase the key events in 2019:
Strike Surge
Brent oil jumped by almost 15% on Sept. 16 -- the most ever in a single day -- following an attack on Saudi Arabia’s oil facilities in Abqaiq and Khurais, which halved the kingdom’s output. While production has returned to normal, prices remain elevated and are set for the biggest yearly gain since 2016 after a breakthrough in U.S.-China trade talks and a pledge by OPEC+ to deepen cuts.
It’s been a tumultuous 2019 for the oil market. The year has seen surging crude prices due to attacks on key Saudi Arabian energy facilities and skyrocketing freight rates after American sanctions on Chinese shipping companies. On another front, oil processing margins in Asia have slumped to the lowest in more than a decade, while IMO 2020 is rattling the market.
Here are four charts that showcase the key events in 2019:
Strike Surge
Brent oil jumped by almost 15% on Sept. 16 -- the most ever in a single day -- following an attack on Saudi Arabia’s oil facilities in Abqaiq and Khurais, which halved the kingdom’s output. While production has returned to normal, prices remain elevated and are set for the biggest yearly gain since 2016 after a breakthrough in U.S.-China trade talks and a pledge by OPEC+ to deepen cuts.
MIDEAST STOCKS- #Dubai outperforms major Gulf bourses in 2019; #Oman remains pressured - Agricultural Commodities - Reuters
MIDEAST STOCKS-Dubai outperforms major Gulf bourses in 2019; Oman remains pressured - Agricultural Commodities - Reuters:
Dubai's index ended the year up more than
9%, outperforming other major Gulf markets, while Kuwait led the
region with a 32% gain and Oman fell for a third year in a row.
Dubai dropped 0.2% on Tuesday as Dubai Islamic Bank
lost 0.7% and Emirates NBD slipped 0.4%, but
it closed 9.3% up over the year, despite slumping real estate
prices.
Saudi Arabia rose 0.5%, bringing its annual gains to
7.2%. Riyad Bank added 2% on Tuesday, while Aramco
rose 0.3%, at 35.3 riyals.
Oil giant Aramco commenced trading on Dec. 11 after a
long-awaited market listing, surging 10% from the initial public
offering price of 32 riyals ($8.53). The increase helped the
company close in on the $2 trillion valuation long sought by
Saudi Crown Prince Mohammed bin Salman.
Dubai's index ended the year up more than
9%, outperforming other major Gulf markets, while Kuwait led the
region with a 32% gain and Oman fell for a third year in a row.
Dubai dropped 0.2% on Tuesday as Dubai Islamic Bank
lost 0.7% and Emirates NBD slipped 0.4%, but
it closed 9.3% up over the year, despite slumping real estate
prices.
Saudi Arabia rose 0.5%, bringing its annual gains to
7.2%. Riyad Bank added 2% on Tuesday, while Aramco
rose 0.3%, at 35.3 riyals.
Oil giant Aramco commenced trading on Dec. 11 after a
long-awaited market listing, surging 10% from the initial public
offering price of 32 riyals ($8.53). The increase helped the
company close in on the $2 trillion valuation long sought by
Saudi Crown Prince Mohammed bin Salman.
Big Banks Turn Bearish On Oil Next Year | OilPrice.com
Big Banks Turn Bearish On Oil Next Year | OilPrice.com:
As the year draws to a close, the Brent and WTI oil benchmarks are trading at $66.55 and $61.54, respectively.
From $60.65 to $64.50, investment bank and analyst projections for Brent crude prices next year are starting to come in. Most forecasts had the luxury of OPEC’s deeper production cuts under the belt, but by and large, analysts are predicting only lackluster, short-term price gains from the cartel’s actions.
Goldman Sachs – $63/$60. Goldman has updated its 2020 oil price forecast to account for the new OPEC production cuts sealed a couple weeks ago. Its latest projection now sees the Brent benchmark averaging $63 per barrel next year, up from their previous $60 per barrel projection. For the US WTI benchmark, the investment bank sees it averaging $58.50 per barrel. Part of its rationale for the increase was its perceived shift in OPEC strategy—shifting away from trying to correct long-term supply and demand imbalances and toward short-term imbalances. As a result, the Goldman sees the gap between supply and demand next year tightening by 300,000 more barrels per day compared to what they had previously forecast.
As the year draws to a close, the Brent and WTI oil benchmarks are trading at $66.55 and $61.54, respectively.
From $60.65 to $64.50, investment bank and analyst projections for Brent crude prices next year are starting to come in. Most forecasts had the luxury of OPEC’s deeper production cuts under the belt, but by and large, analysts are predicting only lackluster, short-term price gains from the cartel’s actions.
Goldman Sachs – $63/$60. Goldman has updated its 2020 oil price forecast to account for the new OPEC production cuts sealed a couple weeks ago. Its latest projection now sees the Brent benchmark averaging $63 per barrel next year, up from their previous $60 per barrel projection. For the US WTI benchmark, the investment bank sees it averaging $58.50 per barrel. Part of its rationale for the increase was its perceived shift in OPEC strategy—shifting away from trying to correct long-term supply and demand imbalances and toward short-term imbalances. As a result, the Goldman sees the gap between supply and demand next year tightening by 300,000 more barrels per day compared to what they had previously forecast.
Why The Saudis Suddenly Agreed To This Mega Oil Deal | OilPrice.com
Why The Saudis Suddenly Agreed To This Mega Oil Deal | OilPrice.com:
Strange, is it not, that an agreement has suddenly been reached between Saudi Arabia and neighbouring Kuwait on the oil and gas fields that they share in the ‘Neutral Zone’ after a bitter dispute that showed no sign of ending after nearly five years? Aside from the pure peculiarity of this sudden announcement, there is the fact that the deal will throw another 500,000-600,000 barrels per day (bpd) of oil into an already saturated market, against a declining demand profile, at a time when Saudi for one needs the oil price around US$84 per barrel just to allow this year’s budget to break even.
Add to this the fact that half of the new output will be added to Saudi Arabia’s production figure (and the other half to Kuwait’s) at a time when Saudi is supposed to be setting the primary example on compliance with the latest OPEC+ oil production deal and we seem to be entering the ‘Alice In Wonderland’ world in which nothing is as it seems. Actually, this is right, it is not what it seems at all, but OilPrice.com knows why.
The first part of the reason (there are two key parts) dates back to 14 September when two of Saudi Arabia’s key oil facilities – the Abqaiq refinery and the Khurais oil field – were attacked by drones fired by rebel Houthis (and/or Iran). This caused both the suspension of 5.7 million bpd of oil production and an unusually brazen bout of lying and/or market ignorance from the Saudis on such a scale that even the usually collusive credit ratings agencies could barely keep up.
Strange, is it not, that an agreement has suddenly been reached between Saudi Arabia and neighbouring Kuwait on the oil and gas fields that they share in the ‘Neutral Zone’ after a bitter dispute that showed no sign of ending after nearly five years? Aside from the pure peculiarity of this sudden announcement, there is the fact that the deal will throw another 500,000-600,000 barrels per day (bpd) of oil into an already saturated market, against a declining demand profile, at a time when Saudi for one needs the oil price around US$84 per barrel just to allow this year’s budget to break even.
Add to this the fact that half of the new output will be added to Saudi Arabia’s production figure (and the other half to Kuwait’s) at a time when Saudi is supposed to be setting the primary example on compliance with the latest OPEC+ oil production deal and we seem to be entering the ‘Alice In Wonderland’ world in which nothing is as it seems. Actually, this is right, it is not what it seems at all, but OilPrice.com knows why.
The first part of the reason (there are two key parts) dates back to 14 September when two of Saudi Arabia’s key oil facilities – the Abqaiq refinery and the Khurais oil field – were attacked by drones fired by rebel Houthis (and/or Iran). This caused both the suspension of 5.7 million bpd of oil production and an unusually brazen bout of lying and/or market ignorance from the Saudis on such a scale that even the usually collusive credit ratings agencies could barely keep up.
#Saudi Plan to Wean Off Oil Sees Success Even as Economy Stalls - Bloomberg
Saudi Plan to Wean Off Oil Sees Success Even as Economy Stalls - Bloomberg:
Saudi Arabia’s economy shrank 0.5% in the third quarter, a contraction that was broadly expected even as the kingdom’s goal of weaning itself off crude began to pay off with solid growth in non-oil sectors.
The overall economy was weighed down by shrinkage of 6.4% in the country’s oil sector, according to data released Tuesday by the General Authority for Statistics. Overall growth for 2019 is expected to accelerate to a modest 0.4%, according to the latest government estimates, before climbing to 2.3% next year.
Non-oil sectors of the economy grew 4.3% in the third quarter compared to about 2% for the same period of 2018, a sign of Crown Prince’s Mohammed bin Salman’s initiative to diversify the world’s top oil exporter’s economy from crude.
Earlier this year, Finance Minister Mohammed Al-Jadaan said the government plans to gradually reduce spending as private-sector growth picks up and businesses take the lead.
Saudi Arabia’s economy shrank 0.5% in the third quarter, a contraction that was broadly expected even as the kingdom’s goal of weaning itself off crude began to pay off with solid growth in non-oil sectors.
The overall economy was weighed down by shrinkage of 6.4% in the country’s oil sector, according to data released Tuesday by the General Authority for Statistics. Overall growth for 2019 is expected to accelerate to a modest 0.4%, according to the latest government estimates, before climbing to 2.3% next year.
Non-oil sectors of the economy grew 4.3% in the third quarter compared to about 2% for the same period of 2018, a sign of Crown Prince’s Mohammed bin Salman’s initiative to diversify the world’s top oil exporter’s economy from crude.
Earlier this year, Finance Minister Mohammed Al-Jadaan said the government plans to gradually reduce spending as private-sector growth picks up and businesses take the lead.
Non-Arab foreign investment in #UAE stocks $3.4bln in 2019 | ZAWYA MENA Edition
Non-Arab foreign investment in UAE stocks $3.4bln in 2019 | ZAWYA MENA Edition:
The net investments of non-Arab foreign investors in the UAE’s financial markets doubled 11 times in 2019, jumping to AED12.5 billion.
The level of net investments of non-Arab foreigners in the Dubai and Abu Dhabi markets is the highest in five years, which reflects their success in attracting foreign investments.
The Securities and Commodities Authority, SCA, continued adopting systems to attract capital and local and international expertise in 2019, by upgrading markets at international index providers.
Four years ago, the UAE was upgraded to an emerging market by the MSCI Emerging Markets Index, which was a global acknowledgement that the country’s financial markets have reached international standards, leading to more long-term capital flow from foreign investors.
The net investments of non-Arab foreign investors in the UAE’s financial markets doubled 11 times in 2019, jumping to AED12.5 billion.
The level of net investments of non-Arab foreigners in the Dubai and Abu Dhabi markets is the highest in five years, which reflects their success in attracting foreign investments.
The Securities and Commodities Authority, SCA, continued adopting systems to attract capital and local and international expertise in 2019, by upgrading markets at international index providers.
Four years ago, the UAE was upgraded to an emerging market by the MSCI Emerging Markets Index, which was a global acknowledgement that the country’s financial markets have reached international standards, leading to more long-term capital flow from foreign investors.
#Qatar's state investor also part of Tencent's Universal deal - Reuters
Qatar's state investor also part of Tencent's Universal deal - Reuters:
Qatar Investment Authority (QIA) is another member of the Tencent-led consortium buying a 10% stake in Vivendi’s (VIV.PA) Universal Music Group, a source familiar with the deal said on Tuesday.
Qatar’s state investor, QIA, did not immediately respond to requests for comment.
Qatar Investment Authority (QIA) is another member of the Tencent-led consortium buying a 10% stake in Vivendi’s (VIV.PA) Universal Music Group, a source familiar with the deal said on Tuesday.
Qatar’s state investor, QIA, did not immediately respond to requests for comment.
Etihad Airways tight-lipped on Air India investment speculation - Arabianbusiness
Etihad Airways tight-lipped on Air India investment speculation - Arabianbusiness:
Etihad Airways has refused to comment on speculation linking the Abu Dhabi-based carrier with an interest in troubled Air India.
According to a report in The Economic Times, Etihad and IndiGo, India’s largest airline by market share, have both met with government officials to express an interest in Air India.
The newspaper quotes an unnamed senior government official.
However, an Etihad Airways spokesperson told Arabian Business: “Etihad does not comment on rumour or speculation.”
The Indian government intends to privatise Air India, along with its subsidiary airline Air India Express and other core units, by selling off its 100 percent equity stake in the company.
Etihad Airways has refused to comment on speculation linking the Abu Dhabi-based carrier with an interest in troubled Air India.
According to a report in The Economic Times, Etihad and IndiGo, India’s largest airline by market share, have both met with government officials to express an interest in Air India.
The newspaper quotes an unnamed senior government official.
However, an Etihad Airways spokesperson told Arabian Business: “Etihad does not comment on rumour or speculation.”
The Indian government intends to privatise Air India, along with its subsidiary airline Air India Express and other core units, by selling off its 100 percent equity stake in the company.
Israel begins pumping from lucrative Mediterranean gas field
Israel begins pumping from lucrative Mediterranean gas field:
Israel on Tuesday began preliminary pumping of gas from a lucrative field in the Mediterranean Sea to its coastline rig, just days before it is to sign a a major pipeline deal with Greece and Cyprus.
The start of the so-called “flushing process” took place after repeated delays due to legal challenges from wary Israeli residents who remain skeptical of the grandiose project that Israel vows will wean it off coal and revolutionize the economy by turning the country from an energy importer to an unlikely exporter.
Israel’s focus on its newfound gas reserves over the past decade has faced stiff domestic criticism from environmental and social welfare activists. They say the government has been too generous toward the gas tycoons behind the exploration, and that the massive investment has steered resources away from focusing on renewable energy sources.
More recently, local activists have been urging Israel’s Delek Drilling and its U.S. partner, Noble Energy, to move a proposed shoreline treatment gas rig farther out to sea. The activists fear what they call the catastrophic consequences of spreading toxic water and air pollution toward their homes.
Israel on Tuesday began preliminary pumping of gas from a lucrative field in the Mediterranean Sea to its coastline rig, just days before it is to sign a a major pipeline deal with Greece and Cyprus.
The start of the so-called “flushing process” took place after repeated delays due to legal challenges from wary Israeli residents who remain skeptical of the grandiose project that Israel vows will wean it off coal and revolutionize the economy by turning the country from an energy importer to an unlikely exporter.
Israel’s focus on its newfound gas reserves over the past decade has faced stiff domestic criticism from environmental and social welfare activists. They say the government has been too generous toward the gas tycoons behind the exploration, and that the massive investment has steered resources away from focusing on renewable energy sources.
More recently, local activists have been urging Israel’s Delek Drilling and its U.S. partner, Noble Energy, to move a proposed shoreline treatment gas rig farther out to sea. The activists fear what they call the catastrophic consequences of spreading toxic water and air pollution toward their homes.
Oil prices set for biggest yearly rise since 2016 - Reuters
Oil prices set for biggest yearly rise since 2016 - Reuters:
Oil rose on the last trading day of the decade on Tuesday and was on track for monthly and annual gains, supported by a thaw in the prolonged U.S.-China trade row and Middle East unrest.
Brent crude was up 11 cents at $66.78 a barrel by 1143 GMT. U.S. West Texas Intermediate (WTI) crude rose 6 cents at $61.74 per barrel.
The volume of trade remained low as many market participants were away for year-end holidays.
Brent has gained about 24% in 2019 and WTI has risen 35%. Both benchmarks are set for their biggest yearly gains in three years, backed by a breakthrough in U.S.-China trade talks and output cuts pledged by the Organization of the Petroleum Exporting Countries and its allies.
Oil rose on the last trading day of the decade on Tuesday and was on track for monthly and annual gains, supported by a thaw in the prolonged U.S.-China trade row and Middle East unrest.
Brent crude was up 11 cents at $66.78 a barrel by 1143 GMT. U.S. West Texas Intermediate (WTI) crude rose 6 cents at $61.74 per barrel.
The volume of trade remained low as many market participants were away for year-end holidays.
Brent has gained about 24% in 2019 and WTI has risen 35%. Both benchmarks are set for their biggest yearly gains in three years, backed by a breakthrough in U.S.-China trade talks and output cuts pledged by the Organization of the Petroleum Exporting Countries and its allies.
#Saudi economy contracts 0.46% in third quarter as oil output slumps - Reuters
Saudi economy contracts 0.46% in third quarter as oil output slumps - Reuters:
Saudi Arabia’s economy contracted by 0.46% in the third quarter from a year earlier, hit by a drop in oil output as the de facto leader of the Organisation of Petroleum Exporting Countries (OPEC) cut production, government data showed on Tuesday.
Oil sector output declined 6.43%, but non-oil output grew 4.33%, led by private sector activity, the data from the top world crude exporter’s General Authority of Statistics said.
On a seasonally adjusted basis, the economy contracted by 0.19% in the third quarter on a quarterly basis.
The data came after the Saudi government in its budget cut its forecast for economic growth to 0.4% in 2019 from 0.9%, with growth hit by lower oil prices and crude production cuts agreed by OPEC nations and producers outside the exporting group.
Saudi Arabia’s economy contracted by 0.46% in the third quarter from a year earlier, hit by a drop in oil output as the de facto leader of the Organisation of Petroleum Exporting Countries (OPEC) cut production, government data showed on Tuesday.
Oil sector output declined 6.43%, but non-oil output grew 4.33%, led by private sector activity, the data from the top world crude exporter’s General Authority of Statistics said.
On a seasonally adjusted basis, the economy contracted by 0.19% in the third quarter on a quarterly basis.
The data came after the Saudi government in its budget cut its forecast for economic growth to 0.4% in 2019 from 0.9%, with growth hit by lower oil prices and crude production cuts agreed by OPEC nations and producers outside the exporting group.
MIDEAST STOCKS-Banks aid #Saudi index, most of Gulf moves little - Reuters
MIDEAST STOCKS-Banks aid Saudi index, most of Gulf moves little - Reuters:
Saudi Arabia’s stock market rose in early trading on Tuesday, supported by its financial shares, while other major Gulf bourses were little changed with many investors away for year-end holidays.
The kingdom’s main index added 0.3%, buoyed by a 0.3% rise in Al Rajhi Bank and a 1.2% gain in Banque Saudi Fransi.
On Monday, the latter raised its dividend for the second half to 1 riyal ($0.3199) per share.
State-owned Saudi Aramco inched up 0.1%.
Zain Sauid dropped 1.2%, snapping three straight days of gains, a day after ending agreement to sell and leaseback its towers infrastructure to IHS.
Saudi Arabia’s stock market rose in early trading on Tuesday, supported by its financial shares, while other major Gulf bourses were little changed with many investors away for year-end holidays.
The kingdom’s main index added 0.3%, buoyed by a 0.3% rise in Al Rajhi Bank and a 1.2% gain in Banque Saudi Fransi.
On Monday, the latter raised its dividend for the second half to 1 riyal ($0.3199) per share.
State-owned Saudi Aramco inched up 0.1%.
Zain Sauid dropped 1.2%, snapping three straight days of gains, a day after ending agreement to sell and leaseback its towers infrastructure to IHS.
Monday 30 December 2019
End of the American era in the Middle East | Financial Times
End of the American era in the Middle East | Financial Times:
For centuries, the Middle East has been dominated by outside powers. The collapse of Ottoman rule at the end of the first world war was followed by a century in which western nations — first Britain and France, then the US — were the most powerful external actors. But that era of American dominance is now coming to a close.
The decline of US influence in the Middle East was captured by an impotent tweet from President Donald Trump on Boxing Day: “Russia, Syria, and Iran are killing, or on their way to killing, thousands of innocent civilians in Idlib Province. Don’t do it!” Underlying the president’s hand-wringing about Syria is a rapid decline in the ability and willingness of the US to shape events in the Middle East — leaving a gap that is being filled by other powers, such as Russia, Iran and Turkey.
Of course, if the Americans are directly challenged they can and will respond forcefully — witness the bombing raids that the US staged on an Iranian-backed militia on the Iraq-Syria border this weekend. But the appetite for broader strategic plays in the Middle East seems to have largely disappeared from the White House.
For centuries, the Middle East has been dominated by outside powers. The collapse of Ottoman rule at the end of the first world war was followed by a century in which western nations — first Britain and France, then the US — were the most powerful external actors. But that era of American dominance is now coming to a close.
The decline of US influence in the Middle East was captured by an impotent tweet from President Donald Trump on Boxing Day: “Russia, Syria, and Iran are killing, or on their way to killing, thousands of innocent civilians in Idlib Province. Don’t do it!” Underlying the president’s hand-wringing about Syria is a rapid decline in the ability and willingness of the US to shape events in the Middle East — leaving a gap that is being filled by other powers, such as Russia, Iran and Turkey.
Of course, if the Americans are directly challenged they can and will respond forcefully — witness the bombing raids that the US staged on an Iranian-backed militia on the Iraq-Syria border this weekend. But the appetite for broader strategic plays in the Middle East seems to have largely disappeared from the White House.
McDermott Said to Be in Talks With Lenders to File Bankruptcy - Bloomberg
McDermott Said to Be in Talks With Lenders to File Bankruptcy - Bloomberg:
McDermott International Inc. is in discussions with lenders about providing a $2 billion bankruptcy loan, ahead of a Chapter 11 filing that could come in the next few weeks, according to people with knowledge of the matter.
The Houston-based engineering and construction firm is negotiating with a group including Baupost Group LLC and HPS Investment Partners LLC, the people said, who asked not to be identified discussing confidential matters. Dow Jones reported the news earlier.
The company’s shares were down as much 64% after the news that it was negotiating a bankruptcy loan. Representatives for McDermott, Baupost and HPS declined to comment.
McDermott is facing a Jan. 15 deadline on a forbearance agreement with some of its creditors. Its lenders previously agreed to provide as much as $1.7 billion in rescue financing, provided it meets certain conditions. The company is currently trying to sell its Lummus Technology business.
McDermott International Inc. is in discussions with lenders about providing a $2 billion bankruptcy loan, ahead of a Chapter 11 filing that could come in the next few weeks, according to people with knowledge of the matter.
The Houston-based engineering and construction firm is negotiating with a group including Baupost Group LLC and HPS Investment Partners LLC, the people said, who asked not to be identified discussing confidential matters. Dow Jones reported the news earlier.
The company’s shares were down as much 64% after the news that it was negotiating a bankruptcy loan. Representatives for McDermott, Baupost and HPS declined to comment.
McDermott is facing a Jan. 15 deadline on a forbearance agreement with some of its creditors. Its lenders previously agreed to provide as much as $1.7 billion in rescue financing, provided it meets certain conditions. The company is currently trying to sell its Lummus Technology business.
Former Nissan Chief Carlos Ghosn arrives in Beirut, Lebanon
Former Nissan Chief Carlos Ghosn arrives in Beirut, Lebanon:
Former Nissan chairman Carlos Ghosn, who is awaiting trial in Japan on charges of financial misconduct, has arrived in Beirut, a close friend said Monday. He apparently jumped bail.
It was not clear how Ghosn, who is of Lebanese origins, left Japan where he was under surveillance and is expected to face trial in April 2020.
Ricardo Karam, a television host and friend of Ghosn who interviewed him several times, told The Associated Press Ghosn arrived in Lebanon Monday morning..
“He is home,” Karam told the AP in a message. “It’s a big adventure.”
Karam declined to elaborate.
Local media first reported Ghosn arrived in Lebanon, but didn’t offer details.
 |
| A security guard stands in the garage at the residence of former Nissan Chairman Carlos Ghosn on Monday, Dec. 30, 2019 in Beirut, Lebanon. A close friend says Ghosn, who is awaiting trial in Japan, has arrived in Beirut. It was not clear how Ghosn, who is of Lebanese origins, left Japan where he is under surveillance and is expected to face trial in April 2020. (AP Photo/Maya Alleruzzo) |
Former Nissan chairman Carlos Ghosn, who is awaiting trial in Japan on charges of financial misconduct, has arrived in Beirut, a close friend said Monday. He apparently jumped bail.
It was not clear how Ghosn, who is of Lebanese origins, left Japan where he was under surveillance and is expected to face trial in April 2020.
Ricardo Karam, a television host and friend of Ghosn who interviewed him several times, told The Associated Press Ghosn arrived in Lebanon Monday morning..
“He is home,” Karam told the AP in a message. “It’s a big adventure.”
Karam declined to elaborate.
Local media first reported Ghosn arrived in Lebanon, but didn’t offer details.
Oil hits three-month high on upbeat data, Middle East tension - Reuters
Oil hits three-month high on upbeat data, Middle East tension - Reuters:
Oil prices rose on Monday to three-month highs, lifted by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following U.S. air strikes in Iraq and Syria.
International benchmark Brent LCOc1 reached $68.99 a barrel, while U.S. crude futures CLc1 hit $62.34 a barrel, both the highest since Sept. 17. For the year, Brent has risen around 27% in 2019, and the U.S. benchmark is up about 36%.
Brent crude futures LCOc1 rose 28 cents to settle at $68.44 a barrel. West Texas Intermediate (WTI) crude CLc1 futures fell 4 cents to settle at $61.68 a barrel.
White House trade adviser Peter Navarro told Fox News in an interview that the U.S.-China Phase 1 trade deal would likely be signed in the next week.
Oil prices rose on Monday to three-month highs, lifted by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following U.S. air strikes in Iraq and Syria.
International benchmark Brent LCOc1 reached $68.99 a barrel, while U.S. crude futures CLc1 hit $62.34 a barrel, both the highest since Sept. 17. For the year, Brent has risen around 27% in 2019, and the U.S. benchmark is up about 36%.
Brent crude futures LCOc1 rose 28 cents to settle at $68.44 a barrel. West Texas Intermediate (WTI) crude CLc1 futures fell 4 cents to settle at $61.68 a barrel.
White House trade adviser Peter Navarro told Fox News in an interview that the U.S.-China Phase 1 trade deal would likely be signed in the next week.
MIDEAST STOCKS-Banks hold back #Saudi, Egypt rebounds on lender COMI - Reuters
MIDEAST STOCKS-Banks hold back Saudi, Egypt rebounds on lender COMI - Reuters:
Saudi Arabia's stock market fell on
Monday, pulled down by losses in banking shares, while Egypt
rebounded on the back of its top lender Commercial International
Bank (COMI).
In Saudi Arabia, the benchmark index lost 0.8%, with
Al Rajhi Bank shedding 1.1% and Riyad Bank
sliding 3.5%. Earlier in the day, Riyad Bank had risen after
announcing a higher dividend for the second half.
Elsewhere, oil giant Saudi Aramco lost 0.7%, after
two days of gains. Last Tuesday, Aramco said Goldman Sachs may
buy more of its shares to support the price. The so-called
stabilisation period will end on Jan. 9.
Egypt's blue-chip index added 0.9%, buoyed by a
1.1% increase in the country's biggest lender Commercial
International Bank and a 2.9% rise in Eastern Company
Saudi Arabia's stock market fell on
Monday, pulled down by losses in banking shares, while Egypt
rebounded on the back of its top lender Commercial International
Bank (COMI).
In Saudi Arabia, the benchmark index lost 0.8%, with
Al Rajhi Bank shedding 1.1% and Riyad Bank
sliding 3.5%. Earlier in the day, Riyad Bank had risen after
announcing a higher dividend for the second half.
Elsewhere, oil giant Saudi Aramco lost 0.7%, after
two days of gains. Last Tuesday, Aramco said Goldman Sachs may
buy more of its shares to support the price. The so-called
stabilisation period will end on Jan. 9.
Egypt's blue-chip index added 0.9%, buoyed by a
1.1% increase in the country's biggest lender Commercial
International Bank and a 2.9% rise in Eastern Company
Gulf Borrowers Pivot From Loans with $100 Billion Bond Record - Bloomberg
Gulf Borrowers Pivot From Loans with $100 Billion Bond Record - Bloomberg:
Gulf borrowers raised more than $100 billion in bond placements this year, a record amount that marked a shift from the more private funding route offered by loans.
Saudi Aramco and Qatar were the biggest issuers, while Egypt, Oman and Saudi Arabia also tapped international bond markets. Syndicated loans dropped 39% this year as sovereigns and companies sold notes in dollars and euros -- a significant development for borrowers that have traditionally avoided airing their finances in public.
Issuers seized on low borrowing costs as central banks globally cut rates to counter the economic threat of the U.S.-China trade war, while international investors were lured to the Gulf’s comparatively high yields. Bond sales in the six-nation Gulf Cooperation Council climbed 28% to the equivalent of $100.9 billion.
Gulf borrowers raised more than $100 billion in bond placements this year, a record amount that marked a shift from the more private funding route offered by loans.
Saudi Aramco and Qatar were the biggest issuers, while Egypt, Oman and Saudi Arabia also tapped international bond markets. Syndicated loans dropped 39% this year as sovereigns and companies sold notes in dollars and euros -- a significant development for borrowers that have traditionally avoided airing their finances in public.
Issuers seized on low borrowing costs as central banks globally cut rates to counter the economic threat of the U.S.-China trade war, while international investors were lured to the Gulf’s comparatively high yields. Bond sales in the six-nation Gulf Cooperation Council climbed 28% to the equivalent of $100.9 billion.
The three key things to watch on energy in 2020 | Financial Times
The three key things to watch on energy in 2020 | Financial Times:
Anyone wanting to make sense of the energy market in 2020 should watch three key indicators. The significant drivers of the market next year will be non-Opec oil production, Chinese oil imports and — more complexly — the influence of politics around climate change. Beyond these, the rest is mere noise.
The first starts with the US, where the boom in tight oil from shale rock continues even though the natural gas sector faces downgrades and shut-ins because of chronic oversupply. Total oil production in the US has risen to more than 12m barrels a day. A further increase is expected in 2020.
But new production is also due on stream next year from Brazil, Norway and Guyana. If non-Opec production rises by more than 1m b/d — which is the forecast level of demand growth — the market will be oversupplied, and even the latest quota agreement by the cartel and Russia will not be sufficient to avoid a further fall in prices.
Anyone wanting to make sense of the energy market in 2020 should watch three key indicators. The significant drivers of the market next year will be non-Opec oil production, Chinese oil imports and — more complexly — the influence of politics around climate change. Beyond these, the rest is mere noise.
The first starts with the US, where the boom in tight oil from shale rock continues even though the natural gas sector faces downgrades and shut-ins because of chronic oversupply. Total oil production in the US has risen to more than 12m barrels a day. A further increase is expected in 2020.
But new production is also due on stream next year from Brazil, Norway and Guyana. If non-Opec production rises by more than 1m b/d — which is the forecast level of demand growth — the market will be oversupplied, and even the latest quota agreement by the cartel and Russia will not be sufficient to avoid a further fall in prices.
Seeking Opportunities in #Qatar, #Kuwait Stocks - Bloomberg
Seeking Opportunities in Qatar, Kuwait Stocks - Bloomberg:
Akber Khan, the senior director of asset management at Al Rayan Investment in Doha, talks about Qatari and Kuwait stocks. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Akber Khan, the senior director of asset management at Al Rayan Investment in Doha, talks about Qatari and Kuwait stocks. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Short Seller Muddy Waters Ends Busy Year With NMC Share Plunge - Bloomberg
Short Seller Muddy Waters Ends Busy Year With NMC Share Plunge - Bloomberg:
Short seller Carson Block has had mixed results in 2019, but he’s ending the year with a bang.
Shares of NMC Health Plc, the Middle Eastern hospital operator that’s Block’s latest target, have slumped 33% since his Muddy Waters Capital LLC said Dec. 17 that the company is understating its debt and overstating its cash. NMC Health denied wrongdoing, said it would hire an accounting firm for a review and would pursue regulatory action against third parties that have tried to manipulate the share price.
The bet has been one of his most successful this year. Block, who made his name shorting Chinese shares, has targeted seven companies in 2019. That’s the most in the almost 10 years he’s been in the business, based on his publicly disclosed positions. While four of the stocks are down, two targets in Asia and one in Germany recovered from initial losses.
With equity markets at records, Muddy Waters is finding “more large, liquid problematic companies than before, but at the same time, increasing levels of investor apathy,” Block said by email.
Short seller Carson Block has had mixed results in 2019, but he’s ending the year with a bang.
Shares of NMC Health Plc, the Middle Eastern hospital operator that’s Block’s latest target, have slumped 33% since his Muddy Waters Capital LLC said Dec. 17 that the company is understating its debt and overstating its cash. NMC Health denied wrongdoing, said it would hire an accounting firm for a review and would pursue regulatory action against third parties that have tried to manipulate the share price.
The bet has been one of his most successful this year. Block, who made his name shorting Chinese shares, has targeted seven companies in 2019. That’s the most in the almost 10 years he’s been in the business, based on his publicly disclosed positions. While four of the stocks are down, two targets in Asia and one in Germany recovered from initial losses.
With equity markets at records, Muddy Waters is finding “more large, liquid problematic companies than before, but at the same time, increasing levels of investor apathy,” Block said by email.
U.S. LNG exports soar in 2019 but supply glut may await in 2020 - Reuters
U.S. LNG exports soar in 2019 but supply glut may await in 2020 - Reuters:
U.S. exporters of liquefied natural gas (LNG) head into 2020 after a record year that saw exports soar by more than 60%, but growing concerns about weakened demand and heavy competition could act as headwinds in the coming year.
Four new liquefaction trains - the common term for a shipping facility - entered service this year in the United States. The U.S. is on track to become the biggest global LNG exporter by 2024.
LNG is seen as an alternative for Asian countries that have relied on coal-fired power plants. LNG exports have surged in recent years out of Qatar, Australia, and the United States, the three biggest exporters of the super-cooled fuel.
The fickle nature of the market was apparent early this year, when a warm winter in Asia cut heating demand and prompted Asian importers to divert cargoes to Europe.
U.S. exporters of liquefied natural gas (LNG) head into 2020 after a record year that saw exports soar by more than 60%, but growing concerns about weakened demand and heavy competition could act as headwinds in the coming year.
Four new liquefaction trains - the common term for a shipping facility - entered service this year in the United States. The U.S. is on track to become the biggest global LNG exporter by 2024.
LNG is seen as an alternative for Asian countries that have relied on coal-fired power plants. LNG exports have surged in recent years out of Qatar, Australia, and the United States, the three biggest exporters of the super-cooled fuel.
The fickle nature of the market was apparent early this year, when a warm winter in Asia cut heating demand and prompted Asian importers to divert cargoes to Europe.
Oil edges up on upbeat data, Middle East unrest - Reuters
Oil edges up on upbeat data, Middle East unrest - Reuters:
Oil prices held on to three-month highs on Monday, underpinned by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following a U.S. air strike.
Investors remained cautious despite news of the U.S. strikes in Iraq and Syria against an Iran-backed militia group, even as U.S. officials warned “additional actions” may be taken.
West Texas Intermediate (WTI) crude futures CLc1 rose 4 cents to $61.76 a barrel by 0800 GMT. The U.S. benchmark is up about 36% so far this year.
Brent crude futures LCOc1 were at $68.33 a barrel, up 17 cents, or 0.3%. The international benchmark has risen around 27% in 2019.
Oil prices held on to three-month highs on Monday, underpinned by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following a U.S. air strike.
Investors remained cautious despite news of the U.S. strikes in Iraq and Syria against an Iran-backed militia group, even as U.S. officials warned “additional actions” may be taken.
West Texas Intermediate (WTI) crude futures CLc1 rose 4 cents to $61.76 a barrel by 0800 GMT. The U.S. benchmark is up about 36% so far this year.
Brent crude futures LCOc1 were at $68.33 a barrel, up 17 cents, or 0.3%. The international benchmark has risen around 27% in 2019.
Oil price rise muted in 2019 despite sanctions, supply cuts, attack in Saudi Arabia - Reuters
Oil price rise muted in 2019 despite sanctions, supply cuts, attack in Saudi Arabia - Reuters:
Oil prices rose more than 20% this year but there were no sharp spikes and crude futures barely sniffed $70 a barrel despite attacks on the world’s biggest oil producer, sanctions that crippled crude exports of two OPEC members and gigantic supply cuts from big oil producing countries.
The price gains in crude oil benchmarks were all in the first quarter of 2019, even as the next several months featured supply shocks that in the past would probably have propelled crude past the $100 mark.
Prices are likely to remain rangebound in 2020 as swelling supplies, particularly from the United States, offset cuts from the Organization of the Petroleum Exporting Countries and weakening worldwide demand, brokers and analysts said.
U.S. crude oil CLc1 is on track to end 2019 roughly 35% higher. Since the end of March, it is up just 3%, after rallying early in the year after the United States introduced sanctions on Venezuela. Brent has gained 26%, but is off by 1% since the first quarter.
Oil prices rose more than 20% this year but there were no sharp spikes and crude futures barely sniffed $70 a barrel despite attacks on the world’s biggest oil producer, sanctions that crippled crude exports of two OPEC members and gigantic supply cuts from big oil producing countries.
The price gains in crude oil benchmarks were all in the first quarter of 2019, even as the next several months featured supply shocks that in the past would probably have propelled crude past the $100 mark.
Prices are likely to remain rangebound in 2020 as swelling supplies, particularly from the United States, offset cuts from the Organization of the Petroleum Exporting Countries and weakening worldwide demand, brokers and analysts said.
U.S. crude oil CLc1 is on track to end 2019 roughly 35% higher. Since the end of March, it is up just 3%, after rallying early in the year after the United States introduced sanctions on Venezuela. Brent has gained 26%, but is off by 1% since the first quarter.
MIDEAST STOCKS-Most major Gulf markets subdued, Aramco retreats - Reuters
MIDEAST STOCKS-Most major Gulf markets subdued, Aramco retreats - Reuters:
Most Gulf stock markets were sluggish in thin trading early on Monday, with financials hurting Saudi Arabia and telecoms company Etisalat falling in Abu Dhabi.
Saudi Arabia’s benchmark index edged down 0.1%. Al Rajhi Bank lost 0.3% and Arab National Bank was down 0.9%, a day after its board proposed a lower second-half dividend.
Oil giant Saudi Aramco slipped 0.1%, after two days of gains. On Tuesday, Aramco said Goldman Sachs may buy more of its shares to support the price. The so-called stabilisation period will end on Jan. 9.
Riyad Bank added 0.3% after raising its dividend for the second half to 0.55 riyal per share.
Most Gulf stock markets were sluggish in thin trading early on Monday, with financials hurting Saudi Arabia and telecoms company Etisalat falling in Abu Dhabi.
Saudi Arabia’s benchmark index edged down 0.1%. Al Rajhi Bank lost 0.3% and Arab National Bank was down 0.9%, a day after its board proposed a lower second-half dividend.
Oil giant Saudi Aramco slipped 0.1%, after two days of gains. On Tuesday, Aramco said Goldman Sachs may buy more of its shares to support the price. The so-called stabilisation period will end on Jan. 9.
Riyad Bank added 0.3% after raising its dividend for the second half to 0.55 riyal per share.
Sunday 29 December 2019
#Dubai increases public spending to ward off economic slowdown | Financial Times
Dubai increases public spending to ward off economic slowdown | Financial Times:
Dubai is to raise public spending to record levels to stimulate its economy and finance its plans to host the Expo 2020 world fair.
The budget for the 2020 fiscal year, signed by ruler Sheikh Mohammed bin Rashid al-Maktoum, plans an expenditure increase of 17 per cent to Dh66.4bn ($18bn), the highest level in Dubai’s history, the government said on Sunday.
“We are keen to provide economic incentives with an impact of attracting more investments, and work to improve the emirate’s competitive position,” said Abdulrahman Al Saleh, director-general of the department of finance.
The budget allocated 46 per cent of total spending to the economy, infrastructure and transport as the emirate pursues an expansionary fiscal policy to maintain its attractiveness as the Gulf’s business centre.
Dubai is to raise public spending to record levels to stimulate its economy and finance its plans to host the Expo 2020 world fair.
The budget for the 2020 fiscal year, signed by ruler Sheikh Mohammed bin Rashid al-Maktoum, plans an expenditure increase of 17 per cent to Dh66.4bn ($18bn), the highest level in Dubai’s history, the government said on Sunday.
“We are keen to provide economic incentives with an impact of attracting more investments, and work to improve the emirate’s competitive position,” said Abdulrahman Al Saleh, director-general of the department of finance.
The budget allocated 46 per cent of total spending to the economy, infrastructure and transport as the emirate pursues an expansionary fiscal policy to maintain its attractiveness as the Gulf’s business centre.
MIDEAST STOCKS-Financials lead most Gulf bourses higher, but Egypt retreats - Reuters
MIDEAST STOCKS-Financials lead most Gulf bourses higher, but Egypt retreats - Reuters:
Most major Gulf markets rose on Sunday as
financial shares climbed, with Saudi leading the gains, though
Egypt was pressured by a sell-off in blue chip stocks.
Saudi's benchmark index ended up 0.7%, with Al Rajhi
Bank rising 1.2% and Saudi Basic Industries
gaining 0.9%.
State-owned Saudi Aramco inched up 0.1%. On
Tuesday Aramco said Goldman Sachs may make additional purchases
of the oil giant's shares to support the price of the stock. The
so-called stabilisation period will end on Jan. 9.
But Arab National Bank lost 1.3%. Post trading
hours, the lender's board proposed a lower second-half dividend.
Most major Gulf markets rose on Sunday as
financial shares climbed, with Saudi leading the gains, though
Egypt was pressured by a sell-off in blue chip stocks.
Saudi's benchmark index ended up 0.7%, with Al Rajhi
Bank rising 1.2% and Saudi Basic Industries
gaining 0.9%.
State-owned Saudi Aramco inched up 0.1%. On
Tuesday Aramco said Goldman Sachs may make additional purchases
of the oil giant's shares to support the price of the stock. The
so-called stabilisation period will end on Jan. 9.
But Arab National Bank lost 1.3%. Post trading
hours, the lender's board proposed a lower second-half dividend.
Bigger oil looks set to have its day in US shale | Financial Times
Bigger oil looks set to have its day in US shale | Financial Times:
The shale energy revolution was not a feat of Big Oil. Independent exploration and production companies run by little-known executives fracked their way to a stunning rise in US oil and gas output over the past decade.
Big — or at least bigger — oil is set to have its day in US shale, however. Conditions suggest that E&P M&A will loom large in the early 2020s. A fragmented production system will fuse into bigger pieces.
Several factors point to why. The early days of the boom were a manic time of exploring rock and issuing debt and stock. With crude prices above $100 a barrel, capital markets were obliging.
While production soared, investor returns did not. E&P companies as a group failed to cover capital spending out of cash from their operations. Now, with oil prices at $60 a barrel, investors are scarce.
The shale energy revolution was not a feat of Big Oil. Independent exploration and production companies run by little-known executives fracked their way to a stunning rise in US oil and gas output over the past decade.
Big — or at least bigger — oil is set to have its day in US shale, however. Conditions suggest that E&P M&A will loom large in the early 2020s. A fragmented production system will fuse into bigger pieces.
Several factors point to why. The early days of the boom were a manic time of exploring rock and issuing debt and stock. With crude prices above $100 a barrel, capital markets were obliging.
While production soared, investor returns did not. E&P companies as a group failed to cover capital spending out of cash from their operations. Now, with oil prices at $60 a barrel, investors are scarce.
#Dubai 2020 budget sets record spending to boost growth ahead of Expo - Reuters
Dubai 2020 budget sets record spending to boost growth ahead of Expo - Reuters:
Dubai expects to substantially increase state spending next year to stimulate the emirate’s economy and support the Expo 2020 world fair, according to the 2020 budget released on Sunday.
State spending will increase by 17% to a record 66.4 billion dirhams ($18.1 billion), compared with the original budget plan of 56.8 billion dirhams for 2019, state news agency WAM reported.
Budgeted infrastructure spending will drop for a second consecutive year in 2020, this time to 8 billion dirhams, as the emirate nears the start of Expo 2020.
The government has spent heavily in preparation of the six-month-long World’s Fair, which starts in October, although it tapered its investment as associated projects were completed.
Dubai expects to substantially increase state spending next year to stimulate the emirate’s economy and support the Expo 2020 world fair, according to the 2020 budget released on Sunday.
State spending will increase by 17% to a record 66.4 billion dirhams ($18.1 billion), compared with the original budget plan of 56.8 billion dirhams for 2019, state news agency WAM reported.
Budgeted infrastructure spending will drop for a second consecutive year in 2020, this time to 8 billion dirhams, as the emirate nears the start of Expo 2020.
The government has spent heavily in preparation of the six-month-long World’s Fair, which starts in October, although it tapered its investment as associated projects were completed.
#Dubai hotel revenues down by 15% in first 10 months of 2019 - survey - Arabianbusiness
Dubai hotel revenues down by 15% in first 10 months of 2019 - survey - Arabianbusiness:
Dubai's hotel sector reported a 15 percent drop in revenues during the first ten months of the year, despite occupancy levels remaining relatively static.
According to The Middle East Hotel Benchmark Survey by EY MENA, occupancy levels across Dubai stood at 73.5 percent between January and October 2019, down only slightly from an average of 74 percent during the same period last year.
However, average room rates across the period was $217, down from $254 during the same period last year. As a consequence, the average Revenue per Available Room (RevPAR) was down 15 percent to $160.
Dubai's hotel sector reported a 15 percent drop in revenues during the first ten months of the year, despite occupancy levels remaining relatively static.
According to The Middle East Hotel Benchmark Survey by EY MENA, occupancy levels across Dubai stood at 73.5 percent between January and October 2019, down only slightly from an average of 74 percent during the same period last year.
However, average room rates across the period was $217, down from $254 during the same period last year. As a consequence, the average Revenue per Available Room (RevPAR) was down 15 percent to $160.
#Dubai developers "punishing themselves" by pushing more units into the market, says Egyptian billionaire - Arabianbusiness
Dubai developers "punishing themselves" by pushing more units into the market, says Egyptian billionaire - Arabianbusiness:
Egyptian billionaire Naguib Sawiris, who has investments in sectors ranging from development to telecoms and logistics, said developers in Dubai are "punishing themselves" by pushing more units into the market.
Speaking to Arabian Business, the executive chairman and CEO of investment conglomerate Orascom Investment Holding (OIH) said developers in the Gulf city need to "take a breath".
He said: “You can argue the developers are punishing themselves because they’re the ones pushing the real estate. They need to take a breath. [Dubai is] here to stay for hundreds of years. The Emirates is the best country in the whole Middle East in terms of stability, freedom, righteousness, rule of law.
“In democracy maybe no, not really in democratic terms, but people are not complaining there because their life standards have evolved to be magnificent. Life is splendid, everything is available, organised, and clean; traffic is manageable, airports are amazing, their infrastructure and IT and all software they’ve implemented is state of the art. So they should be proud of what they have created.”
Egyptian billionaire Naguib Sawiris, who has investments in sectors ranging from development to telecoms and logistics, said developers in Dubai are "punishing themselves" by pushing more units into the market.
Speaking to Arabian Business, the executive chairman and CEO of investment conglomerate Orascom Investment Holding (OIH) said developers in the Gulf city need to "take a breath".
He said: “You can argue the developers are punishing themselves because they’re the ones pushing the real estate. They need to take a breath. [Dubai is] here to stay for hundreds of years. The Emirates is the best country in the whole Middle East in terms of stability, freedom, righteousness, rule of law.
“In democracy maybe no, not really in democratic terms, but people are not complaining there because their life standards have evolved to be magnificent. Life is splendid, everything is available, organised, and clean; traffic is manageable, airports are amazing, their infrastructure and IT and all software they’ve implemented is state of the art. So they should be proud of what they have created.”
MIDEAST STOCKS- #Saudi stocks gain as most of Gulf markets rise - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks gain as most of Gulf markets rise - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market rose early on Sunday, extending gains for a second session on the back of firmer banking and energy shares, while other major Gulf markets were mostly up.
The Saudi index rose 0.7% as Al Rajhi Bank gained 1.4%, while oil-giant Saudi Aramco added a further 0.7% after a 0.4% rise in the previous session.
On Tuesday, Aramco said Goldman Sachs may make additional purchases of the oil giant’s shares to support the price of the stock. The so-called stabilisation period will end on Jan. 9.
Saudi Arabian Amiantit was up 0.7% after it agreed to sell its entire stake in two Egyptian units.
Saudi Arabia’s stock market rose early on Sunday, extending gains for a second session on the back of firmer banking and energy shares, while other major Gulf markets were mostly up.
The Saudi index rose 0.7% as Al Rajhi Bank gained 1.4%, while oil-giant Saudi Aramco added a further 0.7% after a 0.4% rise in the previous session.
On Tuesday, Aramco said Goldman Sachs may make additional purchases of the oil giant’s shares to support the price of the stock. The so-called stabilisation period will end on Jan. 9.
Saudi Arabian Amiantit was up 0.7% after it agreed to sell its entire stake in two Egyptian units.
Saturday 28 December 2019
Oil Posts Longest Run of Weekly Gains Since April on Crude Draw - Bloomberg
Oil Posts Longest Run of Weekly Gains Since April on Crude Draw - Bloomberg:
Oil posted the longest run of weekly gains since April as prices followed equities higher and a government report showed U.S. crude inventories falling to the lowest in two months.
Futures in New York were little changed, clinging to a three-month high Friday. The Energy Information Administration reported that oil inventories fell 5.47 million barrels while supplies at the key Cushing, Oklahoma, storage hub declined to the lowest in more than a year. Crude also tracked the S&P 500, which hovered near an all-time high.
“Oil will likely correlate to equities” through the remainder of the year and even see multimonth highs “but the situation is not sustainable for much longer,” said Robert Yawger, futures director at Mizuho Securities USA LLC in New York. “The market is overbought.”
Oil is up about 12% this month after the U.S. and China made a breakthrough in their prolonged trade dispute and as the Organization of Petroleum Exporting Countries and its allies agreed to deepen output cuts.
Oil posted the longest run of weekly gains since April as prices followed equities higher and a government report showed U.S. crude inventories falling to the lowest in two months.
Futures in New York were little changed, clinging to a three-month high Friday. The Energy Information Administration reported that oil inventories fell 5.47 million barrels while supplies at the key Cushing, Oklahoma, storage hub declined to the lowest in more than a year. Crude also tracked the S&P 500, which hovered near an all-time high.
“Oil will likely correlate to equities” through the remainder of the year and even see multimonth highs “but the situation is not sustainable for much longer,” said Robert Yawger, futures director at Mizuho Securities USA LLC in New York. “The market is overbought.”
Oil is up about 12% this month after the U.S. and China made a breakthrough in their prolonged trade dispute and as the Organization of Petroleum Exporting Countries and its allies agreed to deepen output cuts.
Ukraine Approves Settlement With Gazprom Over Antitrust Claim - Bloomberg
Ukraine Approves Settlement With Gazprom Over Antitrust Claim - Bloomberg:
Ukraine’s cabinet approved an agreement with Russian state-run energy company Gazprom PJSC to settle a longstanding antitrust dispute as the countries negotiate a new natural gas contract.
The terms of the settlement weren’t disclosed in the Ukrainian decree, which was published on the cabinet’s website.
In 2016, the Ukrainian antitrust committee fined Gazprom for abuse of its monopoly position in gas transit from Russia to Europe through Ukrainian territory. A court in Kyiv allowed the competition authority to seize some of Gazprom’s assets and accounts in 2017 and the total fine imposed on Gazprom then amounted to $7.2 billion.
Gazprom argued at the time that the fine was in breach of the 1998 bilateral accord between Russia and Ukraine on mutual investment protection. Ukraine and Russia are in discussions in Vienna on a new gas transit contract to take the countries forward after their current agreement expires on Jan. 1.
Ukraine’s cabinet approved an agreement with Russian state-run energy company Gazprom PJSC to settle a longstanding antitrust dispute as the countries negotiate a new natural gas contract.
The terms of the settlement weren’t disclosed in the Ukrainian decree, which was published on the cabinet’s website.
In 2016, the Ukrainian antitrust committee fined Gazprom for abuse of its monopoly position in gas transit from Russia to Europe through Ukrainian territory. A court in Kyiv allowed the competition authority to seize some of Gazprom’s assets and accounts in 2017 and the total fine imposed on Gazprom then amounted to $7.2 billion.
Gazprom argued at the time that the fine was in breach of the 1998 bilateral accord between Russia and Ukraine on mutual investment protection. Ukraine and Russia are in discussions in Vienna on a new gas transit contract to take the countries forward after their current agreement expires on Jan. 1.
Riyadh signs deal with Raytheon #SaudiArabia to localize Patriot maintenance - Reuters
Riyadh signs deal with Raytheon Saudi Arabia to localize Patriot maintenance - Reuters:
Saudi Arabia signed a deal with the local unit of U.S. weapons maker Raytheon on Saturday to localize maintenance of its Patriot missile defense system, as part of efforts to boost Saudi’s defense industries and its broader economy.
Crown Prince
Mohammed bin Salman plans to diversify the kingdom away from its reliance on oil exports and wants Riyadh to produce or assemble half its defense equipment locally, aiming to create 40,000 jobs for Saudis by 2030.
Saudi Arabia is among the top five defense spenders in the world. It is one of several U.S. allies to use Patriot, a ground to air missile system giving defense against ballistic missiles and other threats.
Ahmed al-Ohali, governor of Saudi Arabia’s General Authority for Military Industries (GAMI), said the agreement with Raytheon reflected the authority’s efforts to develop Saudi’s military industries and its research and technology capabilities, state news agency SPA reported.
Saudi Arabia signed a deal with the local unit of U.S. weapons maker Raytheon on Saturday to localize maintenance of its Patriot missile defense system, as part of efforts to boost Saudi’s defense industries and its broader economy.
Crown Prince
Mohammed bin Salman plans to diversify the kingdom away from its reliance on oil exports and wants Riyadh to produce or assemble half its defense equipment locally, aiming to create 40,000 jobs for Saudis by 2030.
Saudi Arabia is among the top five defense spenders in the world. It is one of several U.S. allies to use Patriot, a ground to air missile system giving defense against ballistic missiles and other threats.
Ahmed al-Ohali, governor of Saudi Arabia’s General Authority for Military Industries (GAMI), said the agreement with Raytheon reflected the authority’s efforts to develop Saudi’s military industries and its research and technology capabilities, state news agency SPA reported.
Friday 27 December 2019
After Aramco’s Record IPO, Traders Now Ask How to Short Shares - Bloomberg
After Aramco’s Record IPO, Traders Now Ask How to Short Shares - Bloomberg:
Shares of Saudi Aramco have shot up 10% since its record-setting $25.6 billion initial public offering earlier this month. That’s got bearish traders wondering whether they can short shares of the Gulf oil giant.
The answer: Not easily.
Normally, you wouldn’t even need to ask the question. Short sales -- when an investor borrows shares, sells them and then tries to buy them back at a lower price and profit from the difference -- are an established feature of exchanges across the world and practically a requirement for inclusion in MSCI indexes.
But when the company is Saudi Arabia’s crown jewel and when shares are listed on the kingdom’s Tadawul exchange, the answer is anything but obvious.
The Tadawul exchange does, on paper, permit short-selling, introducing it in 2017. But in practice the market for borrowing and lending shares in Saudi Arabia is illiquid, according to Marie Salem, head of institutions at Daman Securities in Dubai.
Shares of Saudi Aramco have shot up 10% since its record-setting $25.6 billion initial public offering earlier this month. That’s got bearish traders wondering whether they can short shares of the Gulf oil giant.
The answer: Not easily.
Normally, you wouldn’t even need to ask the question. Short sales -- when an investor borrows shares, sells them and then tries to buy them back at a lower price and profit from the difference -- are an established feature of exchanges across the world and practically a requirement for inclusion in MSCI indexes.
But when the company is Saudi Arabia’s crown jewel and when shares are listed on the kingdom’s Tadawul exchange, the answer is anything but obvious.
The Tadawul exchange does, on paper, permit short-selling, introducing it in 2017. But in practice the market for borrowing and lending shares in Saudi Arabia is illiquid, according to Marie Salem, head of institutions at Daman Securities in Dubai.
Hedge Funds Stay Bullish on Oil Amid Trade Truce, OPEC+ Cuts - Bloomberg
Hedge Funds Stay Bullish on Oil Amid Trade Truce, OPEC+ Cuts - Bloomberg:
Hedge funds are approaching the end of the year more optimistic on global oil prices than they’ve been since May.
Their net-bullish wagers on Brent crude climbed for the ninth week in 10, reaching a seven-month high, data released Friday show. The U.S.-China trade truce and OPEC’s commitment to deeper cuts have pushed futures to their highest since an attack on Saudi facilities in September. But skepticism is also creeping in, with short-selling increasing the most since October.
“It’s a disaster waiting to happen,” said Bob Yawger at Mizuho Securities USA. “We’re seeing the largest net-long speculative position” in both West Texas Intermediate and Brent in seven months, he said.
Money managers’ Brent net-long position, or the difference between bullish and bearish bets, climbed 1% to 402,455 futures and options, the highest level since May, according to ICE Futures Europe data for the week ended Dec. 24. Long-only wagers rose 2.4%, while shorts increased 11%.
Hedge funds are approaching the end of the year more optimistic on global oil prices than they’ve been since May.
Their net-bullish wagers on Brent crude climbed for the ninth week in 10, reaching a seven-month high, data released Friday show. The U.S.-China trade truce and OPEC’s commitment to deeper cuts have pushed futures to their highest since an attack on Saudi facilities in September. But skepticism is also creeping in, with short-selling increasing the most since October.
“It’s a disaster waiting to happen,” said Bob Yawger at Mizuho Securities USA. “We’re seeing the largest net-long speculative position” in both West Texas Intermediate and Brent in seven months, he said.
Money managers’ Brent net-long position, or the difference between bullish and bearish bets, climbed 1% to 402,455 futures and options, the highest level since May, according to ICE Futures Europe data for the week ended Dec. 24. Long-only wagers rose 2.4%, while shorts increased 11%.
Oil hits three-month high on falling oil stocks, investor optimism - Reuters
Oil hits three-month high on falling oil stocks, investor optimism - Reuters:
Oil prices rose to the fourth consecutive weekly gain on Friday, steadying at three-month highs after new data showed U.S. crude inventories fell far more than expected, while upbeat economic data and optimism over a U.S.-China trade deal fueled a year-end stock market rally.
Brent crude LCOc1 rose 24 cents to settle at $68.16 a barrel, the highest since mid-September. The international benchmark has climbed nearly 27% since the end of 2018.
West Texas Intermediate CLc1 rose 4 cents to settle at $61.72 a barrel, another three-month high. The U.S. benchmark has risen 36% so far this year.
U.S. crude stocks fell by 5.5 million barrels in the week to Dec. 20 to 441.4 million barrels, according to the Energy Information Administration, far exceeding analysts’ expectations of a 1.7 million-barrel drop.
Oil prices rose to the fourth consecutive weekly gain on Friday, steadying at three-month highs after new data showed U.S. crude inventories fell far more than expected, while upbeat economic data and optimism over a U.S.-China trade deal fueled a year-end stock market rally.
Brent crude LCOc1 rose 24 cents to settle at $68.16 a barrel, the highest since mid-September. The international benchmark has climbed nearly 27% since the end of 2018.
West Texas Intermediate CLc1 rose 4 cents to settle at $61.72 a barrel, another three-month high. The U.S. benchmark has risen 36% so far this year.
U.S. crude stocks fell by 5.5 million barrels in the week to Dec. 20 to 441.4 million barrels, according to the Energy Information Administration, far exceeding analysts’ expectations of a 1.7 million-barrel drop.
US Oil Rig Count Falls In Last Week Of 2019 | OilPrice.com
US Oil Rig Count Falls In Last Week Of 2019 | OilPrice.com:
The final US oil and gas rig count for the year decreased this week, according to Baker Hughes, reaching 805 rigs after decreasing by 8 for the week, according to Baker Hughes. The total oil and gas rig count is now 278 down from this time last year—a nearly 26% drop.
For oil rigs, this week saw an decrease of 8 rigs, according to Baker Hughes data. The total number of active gas rigs in the United States held steady for the week according to the report, at 125 This compares to 198 a year ago.
The number of oil rigs have declined by 207 this year alone, but production has grown from 11.7 million bpd at the beginning of the year to 12.8 million bpd, for week ending Dec 20—just 100,000 bpd off the all-time high from a few weeks ago.
Oil prices were down on Friday ahead of the data on rumors that OPEC and allies may decide to quit its agreement to curb production at some point next year, and may ease the existing cuts as early as March.
The final US oil and gas rig count for the year decreased this week, according to Baker Hughes, reaching 805 rigs after decreasing by 8 for the week, according to Baker Hughes. The total oil and gas rig count is now 278 down from this time last year—a nearly 26% drop.
For oil rigs, this week saw an decrease of 8 rigs, according to Baker Hughes data. The total number of active gas rigs in the United States held steady for the week according to the report, at 125 This compares to 198 a year ago.
The number of oil rigs have declined by 207 this year alone, but production has grown from 11.7 million bpd at the beginning of the year to 12.8 million bpd, for week ending Dec 20—just 100,000 bpd off the all-time high from a few weeks ago.
Oil prices were down on Friday ahead of the data on rumors that OPEC and allies may decide to quit its agreement to curb production at some point next year, and may ease the existing cuts as early as March.
OPEC+ Cuts Can’t Last Forever, Russia’s Energy Minister Says - Bloomberg
OPEC+ Cuts Can’t Last Forever, Russia’s Energy Minister Says - Bloomberg:
OPEC+ output cuts have stabilized the global oil market but can’t last forever, Russia said as uncertainty persists over the future of the agreement beyond March.
“Oil-production cuts can’t be eternal; we will gradually need to make a decision on exiting” the accord, Energy Minister Alexander Novak said in an interview with state television channel Rossiya24. As one of the architects of the OPEC+ deal, Russia’s view is key, though the nation’s oil producers have long pushed for a relaxation of output curbs.
Russia needs to defend its market share and let its oil companies develop new projects, Novak said. The minister didn’t specify when the country may decide to withdraw from the agreement, but said he expects to discuss the matter with his OPEC+ counterparts next year. Global oil demand may surge as soon as next summer, he said.
Russia, which helped to cement the original deal between the Organization of Petroleum Exporting Countries and its partners back in 2016, has shown this year that it’s getting weary of limiting supply. The nation has consistently failed to comply with its quota, overshooting its target for eight months so far in 2019, according to Bloomb
OPEC+ output cuts have stabilized the global oil market but can’t last forever, Russia said as uncertainty persists over the future of the agreement beyond March.
“Oil-production cuts can’t be eternal; we will gradually need to make a decision on exiting” the accord, Energy Minister Alexander Novak said in an interview with state television channel Rossiya24. As one of the architects of the OPEC+ deal, Russia’s view is key, though the nation’s oil producers have long pushed for a relaxation of output curbs.
Russia needs to defend its market share and let its oil companies develop new projects, Novak said. The minister didn’t specify when the country may decide to withdraw from the agreement, but said he expects to discuss the matter with his OPEC+ counterparts next year. Global oil demand may surge as soon as next summer, he said.
Russia, which helped to cement the original deal between the Organization of Petroleum Exporting Countries and its partners back in 2016, has shown this year that it’s getting weary of limiting supply. The nation has consistently failed to comply with its quota, overshooting its target for eight months so far in 2019, according to Bloomb
Oil hits three-month highs on upbeat U.S. and Chinese economic data - Reuters
Oil hits three-month highs on upbeat U.S. and Chinese economic data - Reuters:
Oil prices rose on Friday, hitting three-month highs, as upbeat economic data from China and the United States indicated an end to the trade war between Washington and Beijing has restored confidence in the global growth.
Brent crude was up 29 cents, or 0.4%, at $68.21 a barrel at 0903 GMT.
The West Texas Intermediate CLc1 was up 24 cents, or 0.4%, at $61.92 a barrel.
Volume of oil trade remained thin in the Christmas holidays and New Year breaks.
Data on Friday showed profits at China’s industrial firms rose at the fastest pace in eight months in November.
Oil prices rose on Friday, hitting three-month highs, as upbeat economic data from China and the United States indicated an end to the trade war between Washington and Beijing has restored confidence in the global growth.
Brent crude was up 29 cents, or 0.4%, at $68.21 a barrel at 0903 GMT.
The West Texas Intermediate CLc1 was up 24 cents, or 0.4%, at $61.92 a barrel.
Volume of oil trade remained thin in the Christmas holidays and New Year breaks.
Data on Friday showed profits at China’s industrial firms rose at the fastest pace in eight months in November.
Thursday 26 December 2019
Putin’s Grand Gas Project Makes Sense Now - Bloomberg
Putin’s Grand Gas Project Makes Sense Now - Bloomberg:
In the space of just a few momentous weeks, one of Russian President Vladimir Putin’s most ambitious projects — a Russian natural gas export system to match the new geopolitical reality rather than the Cold War-era one — has taken its final shape. It will probably last, without major change, until the end of Russia’s run as a top energy exporter.
The finishing touches to the project, begun in 2001 with the construction of the Blue Stream pipeline to Turkey, include the launch of the Power of Siberia pipeline to China on Dec. 2, last week’s U.S. sanctions on the Nord Stream 2 pipeline to Germany, a new gas transit deal with Ukraine and the commissioning of the TurkStream pipeline, planned for January.
External pressure and market circumstances have helped shape the new Russian gas export system so that it can’t really be used as a sinister tool of Putin’s rogue foreign policy. Meanwhile, it’s structured in a such a way that post-Putin Russia will still be able to maintain its energy market share and use it as a basis for useful trade partnerships. That makes it a positive part of Putin’s legacy, if not entirely thanks to Putin.
In the space of just a few momentous weeks, one of Russian President Vladimir Putin’s most ambitious projects — a Russian natural gas export system to match the new geopolitical reality rather than the Cold War-era one — has taken its final shape. It will probably last, without major change, until the end of Russia’s run as a top energy exporter.
The finishing touches to the project, begun in 2001 with the construction of the Blue Stream pipeline to Turkey, include the launch of the Power of Siberia pipeline to China on Dec. 2, last week’s U.S. sanctions on the Nord Stream 2 pipeline to Germany, a new gas transit deal with Ukraine and the commissioning of the TurkStream pipeline, planned for January.
External pressure and market circumstances have helped shape the new Russian gas export system so that it can’t really be used as a sinister tool of Putin’s rogue foreign policy. Meanwhile, it’s structured in a such a way that post-Putin Russia will still be able to maintain its energy market share and use it as a basis for useful trade partnerships. That makes it a positive part of Putin’s legacy, if not entirely thanks to Putin.
'No One Knows' How Much Lebanese Pound (LBP) Could Fall: Official - Bloomberg
'No One Knows' How Much Lebanese Pound (LBP) Could Fall: Official - Bloomberg:
Lebanon’s central bank governor has suggested he’s struggling to contain the divergence of the pound from its peg to the dollar as the country faces its worst financial crisis in decades.
“No one knows,” Riad Salameh said, when asked how much further the pound would depreciate on the black market. “When I spoke in the past, the dollar hadn’t reached 2,000 pounds,” he said, according to the state-run National News Agency. The pound has been pegged at 1,507.5 to the dollar since 1997. Salameh later stressed that the central bank’s policy on the official rate remains unchanged.
Salameh, who’s been at the helm of the central bank since 1993, has repeatedly said the central bank has enough reserves to defend the peg and would maintain the fixed exchange regime.
“The central bank governor may be giving up on combating the black market rate,” said Ziad Daoud, Bloomberg’s chief Middle East economist. “The gap between the official rate and the black market is too daunting to bridge.”
Lebanon’s central bank governor has suggested he’s struggling to contain the divergence of the pound from its peg to the dollar as the country faces its worst financial crisis in decades.
“No one knows,” Riad Salameh said, when asked how much further the pound would depreciate on the black market. “When I spoke in the past, the dollar hadn’t reached 2,000 pounds,” he said, according to the state-run National News Agency. The pound has been pegged at 1,507.5 to the dollar since 1997. Salameh later stressed that the central bank’s policy on the official rate remains unchanged.
Salameh, who’s been at the helm of the central bank since 1993, has repeatedly said the central bank has enough reserves to defend the peg and would maintain the fixed exchange regime.
“The central bank governor may be giving up on combating the black market rate,” said Ziad Daoud, Bloomberg’s chief Middle East economist. “The gap between the official rate and the black market is too daunting to bridge.”
Rate of average #Dubai property price declines slows in 2019 - Arabianbusiness
Rate of average Dubai property price declines slows in 2019 - Arabianbusiness:
Average monthly property price declines in Dubai has slowed during 2019 compared to the previous 12 months, according to new research.
Consulting firm ValuStrat said in a new report that the average loss in capital values per month slowed marginally to 0.8 percent in 2019 when compared to the average 1 percent drop in 2018.
Its VPI – Residential Capital Values for Dubai as of November stood at 75.9 points, dipping 0.9 percent since October, and down by 10.8 percent on an annual basis.
The report showed that all Dubai locations saw monthly capital values marginally decline, the highest of which was Jumeirah Village Circle apartments with -1.1 percent, and the lowest was -0.6 percent for International City.
Average monthly property price declines in Dubai has slowed during 2019 compared to the previous 12 months, according to new research.
Consulting firm ValuStrat said in a new report that the average loss in capital values per month slowed marginally to 0.8 percent in 2019 when compared to the average 1 percent drop in 2018.
Its VPI – Residential Capital Values for Dubai as of November stood at 75.9 points, dipping 0.9 percent since October, and down by 10.8 percent on an annual basis.
The report showed that all Dubai locations saw monthly capital values marginally decline, the highest of which was Jumeirah Village Circle apartments with -1.1 percent, and the lowest was -0.6 percent for International City.
#Saudi banking giants forecast to maintain 'strong profitability' - Arabianbusiness
Saudi banking giants forecast to maintain 'strong profitability' - Arabianbusiness:
Saudi Arabia's three largest banks, National Commercial Bank (NCB), Al Rajhi Bank, and Saudi British Bank (SABB), will maintain strong profitability even as interest margins on their lending narrow because of falling interest rates, according to Moody's Investors Service.
In a new research note, the ratings agency said the three banks have a combined market share of 47 percent of the country's banking assets.
"SABB will be hardest hit because it must also absorb the costs of its merger with smaller peer Alawwal Bank, and NCB will face a similar pressure if its planned merger with Riyad Bank is completed," said Ashraf Madani, VP-Senior Analyst at Moody's.
"Al Rajhi's retail focus will provide initial protection, but prolonged low rates will take their toll. Nevertheless, sound efficiency and strong capital at all three banks will protect their credit profiles," he added.
Saudi Arabia's three largest banks, National Commercial Bank (NCB), Al Rajhi Bank, and Saudi British Bank (SABB), will maintain strong profitability even as interest margins on their lending narrow because of falling interest rates, according to Moody's Investors Service.
In a new research note, the ratings agency said the three banks have a combined market share of 47 percent of the country's banking assets.
"SABB will be hardest hit because it must also absorb the costs of its merger with smaller peer Alawwal Bank, and NCB will face a similar pressure if its planned merger with Riyad Bank is completed," said Ashraf Madani, VP-Senior Analyst at Moody's.
"Al Rajhi's retail focus will provide initial protection, but prolonged low rates will take their toll. Nevertheless, sound efficiency and strong capital at all three banks will protect their credit profiles," he added.
Oil up 1% at highest since September on trade pact and crude supplies - Reuters
Oil up 1% at highest since September on trade pact and crude supplies - Reuters:
Oil prices were up about 1% to the highest in more than three months on Thursday, boosted by hopes that the China-U.S. trade fight would soon come to an end and by a report showing lower U.S. crude inventories.
Brent crude futures LCOc1 settled at $67.92 a barrel, rising 72 cents, or 1.07%. U.S. West Texas Intermediate crude futures CLc1 settled at $61.68 a barrel, up 57 cents, or 0.93%Both benchmarks were their strongest since Sept. 17.
China on Wednesday said it was in close touch with the United States on a trade deal signing ceremony, after U.S. President Donald Trump said a day earlier that he and Chinese President Xi Jinping will hold a ceremony to sign the Phase 1 trade deal.
The prospect of a sealed agreement propelled Wall Street to fresh highs, helping to support crude futures, which often follow equities.
Oil prices were up about 1% to the highest in more than three months on Thursday, boosted by hopes that the China-U.S. trade fight would soon come to an end and by a report showing lower U.S. crude inventories.
Brent crude futures LCOc1 settled at $67.92 a barrel, rising 72 cents, or 1.07%. U.S. West Texas Intermediate crude futures CLc1 settled at $61.68 a barrel, up 57 cents, or 0.93%Both benchmarks were their strongest since Sept. 17.
China on Wednesday said it was in close touch with the United States on a trade deal signing ceremony, after U.S. President Donald Trump said a day earlier that he and Chinese President Xi Jinping will hold a ceremony to sign the Phase 1 trade deal.
The prospect of a sealed agreement propelled Wall Street to fresh highs, helping to support crude futures, which often follow equities.
MIDEAST STOCKS-Most of Gulf falls but petrochemicals boost #Saudi - Reuters
MIDEAST STOCKS-Most of Gulf falls but petrochemicals boost Saudi - Reuters:
Stock markets in the United Arab Emirates
and Qatar fell on Thursday with banking shares leading the way,
but petrochemicals helped Saudi Arabia buck the trend.
Saudi Arabia's benchmark index reversed earlier
losses to close up 0.1%, with Saudi Basic Industries
gaining 1.3% and state-owned Aramco 0.4% higher at
35.4 riyals ($9.44).
On Tuesday, Aramco said IPO bookrunner Goldman Sachs may
make additional purchases of the oil giant's shares to support
the price of the stock. The so-called stabilisation period will
end on Jan. 9, but so far no transactions have been executed.
Yanbu National Petrochemicals (Yansab) fell 1.8%
after its board proposed a lower second-half dividend this year.
In Abu Dhabi, the index slipped 1% with the United
Arab Emirates' (UAE) largest lender First Abu Dhabi Bank
down 1.2% and Abu Dhabi Commercial Bank off
0.9%.
Stock markets in the United Arab Emirates
and Qatar fell on Thursday with banking shares leading the way,
but petrochemicals helped Saudi Arabia buck the trend.
Saudi Arabia's benchmark index reversed earlier
losses to close up 0.1%, with Saudi Basic Industries
gaining 1.3% and state-owned Aramco 0.4% higher at
35.4 riyals ($9.44).
On Tuesday, Aramco said IPO bookrunner Goldman Sachs may
make additional purchases of the oil giant's shares to support
the price of the stock. The so-called stabilisation period will
end on Jan. 9, but so far no transactions have been executed.
Yanbu National Petrochemicals (Yansab) fell 1.8%
after its board proposed a lower second-half dividend this year.
In Abu Dhabi, the index slipped 1% with the United
Arab Emirates' (UAE) largest lender First Abu Dhabi Bank
down 1.2% and Abu Dhabi Commercial Bank off
0.9%.
Saudi Arabia's Mohammed bin Salman Is Prince of Mixed Messages - Bloomberg ht @ghoshworld
Saudi Arabia's Mohammed bin Salman Is Prince of Mixed Messages - Bloomberg:
Is Crown Prince Mohammed bin Salman a reformer or a reactionary? The answer, maddening to those who love him as much as to those who loathe him, is that Saudi Arabia’s de facto ruler might just be both those things.
In a year when he was under especially close international scrutiny, thanks to the grotesque late-2018 murder of the journalist Jamal Khashoggi, the prince — arguably the Middle East’s most important figure — gave free rein to both sides of his public persona, presiding over both reform and repression. It did nothing to alter the impression of MBS, as he is commonly known, as a man who wants to have his cake as well as eat it.
The duality was on display in his interview with PBS’s “Frontline,” when he both acknowledged and averted responsibility for Khashoggi’s killing: It had happened “under my watch,” he allowed, but then sought to deflect blame by saying he couldn’t know what all 3 million government officials were doing at any given time. A secretive Saudi investigation, followed by opaque court proceedings, led to sentences being handed down this week — but nobody was persuaded that justice had been done. For the record, the United Nations rapporteur who investigated the murder said Prince Mohammed “has a responsibility in relationship to the killing” and the CIA believes he gave the order.
 |
Which prince?
Photographer: Ryad Kramdi/AFP
|
Is Crown Prince Mohammed bin Salman a reformer or a reactionary? The answer, maddening to those who love him as much as to those who loathe him, is that Saudi Arabia’s de facto ruler might just be both those things.
In a year when he was under especially close international scrutiny, thanks to the grotesque late-2018 murder of the journalist Jamal Khashoggi, the prince — arguably the Middle East’s most important figure — gave free rein to both sides of his public persona, presiding over both reform and repression. It did nothing to alter the impression of MBS, as he is commonly known, as a man who wants to have his cake as well as eat it.
The duality was on display in his interview with PBS’s “Frontline,” when he both acknowledged and averted responsibility for Khashoggi’s killing: It had happened “under my watch,” he allowed, but then sought to deflect blame by saying he couldn’t know what all 3 million government officials were doing at any given time. A secretive Saudi investigation, followed by opaque court proceedings, led to sentences being handed down this week — but nobody was persuaded that justice had been done. For the record, the United Nations rapporteur who investigated the murder said Prince Mohammed “has a responsibility in relationship to the killing” and the CIA believes he gave the order.
There was an air of equivocation, too, in MBS’s program of social reforms, where two steps forward in some areas — such as the relaxation of guardianship laws for women and regulations requiring gender-specific entrances in restaurants — were accompanied by a step back in others. The arrest of intellectuals in late November echoed last year’s shocking detention of women’s rights activists, just weeks before the prince lifted a ban on women driving.
Permian Gas Problem Just Gets Worse as Shale Drilling Slows Down - Bloomberg
Permian Gas Problem Just Gets Worse as Shale Drilling Slows Down - Bloomberg:
America’s top shale field is becoming increasingly gassy as drilling slows down, undercutting profits for explorers at a time when investors are demanding better returns.
Natural gas has long been a nuisance in the Permian, where a massive glut weighs on prices, with crude producers sometimes having to pay to get it hauled away or burn it off in a controversial practice known as flaring. Now the problem is intensifying as wells age and fewer new wells are drilled.
Shale wells produce a spew of oil when they’re first fracked, but over time, production falls -- sometimes as much as 70% in the first year -- and gas becomes a bigger part of the mix.
“Activity levels are no longer what they were,” said Artem Abramov, head of shale research at Rystad Energy. “The oil ratio is no longer sufficient to offset gas in older wells, so we’re seeing some increase in basin-wide” gas-to-oil ratios.
America’s top shale field is becoming increasingly gassy as drilling slows down, undercutting profits for explorers at a time when investors are demanding better returns.
Natural gas has long been a nuisance in the Permian, where a massive glut weighs on prices, with crude producers sometimes having to pay to get it hauled away or burn it off in a controversial practice known as flaring. Now the problem is intensifying as wells age and fewer new wells are drilled.
Shale wells produce a spew of oil when they’re first fracked, but over time, production falls -- sometimes as much as 70% in the first year -- and gas becomes a bigger part of the mix.
“Activity levels are no longer what they were,” said Artem Abramov, head of shale research at Rystad Energy. “The oil ratio is no longer sufficient to offset gas in older wells, so we’re seeing some increase in basin-wide” gas-to-oil ratios.
Aramco, Lebanon, Gulf Oil: A Guide to Middle East Risks in 2020 - Bloomberg
Aramco, Lebanon, Gulf Oil: A Guide to Middle East Risks in 2020 - Bloomberg:
If 2019 was the year when a clutch of Middle East markets burst into the mainstream, then 2020 will test whether the foreign money keeps flooding in.
The year opened with five Gulf Arab economies joining JPMorgan Chase & Co.’s emerging-market bond indexes. The spotlight stayed firmly on the region as Saudi Aramco’s $12 billion international bond debut in April was followed by preparations for its historic public offering at the end of the year. Gulf dollar bonds outperformed their emerging-market peers with returns of 15% this year.
At the same time, drone and missile strikes on Aramco’s facilities in September served as a reminder of the region’s political fault-lines and the potential pitfalls investors face.
If 2019 was the year when a clutch of Middle East markets burst into the mainstream, then 2020 will test whether the foreign money keeps flooding in.
The year opened with five Gulf Arab economies joining JPMorgan Chase & Co.’s emerging-market bond indexes. The spotlight stayed firmly on the region as Saudi Aramco’s $12 billion international bond debut in April was followed by preparations for its historic public offering at the end of the year. Gulf dollar bonds outperformed their emerging-market peers with returns of 15% this year.
At the same time, drone and missile strikes on Aramco’s facilities in September served as a reminder of the region’s political fault-lines and the potential pitfalls investors face.
#Dubai's Deyaar claims final court victory over Limitless in land deal dispute - Arabianbusiness
Dubai's Deyaar claims final court victory over Limitless in land deal dispute - Arabianbusiness:
The Court of Cassation has thrown out an appeal from Dubai developer Limitless over a land deal dispute with fellow developer Deyaar.
Deyaar Development said in a statement posted to Dubai Financial Market that the court had issued a ruling, upholding a ruling made by the Court of Appeal in September, which had confirmed Dubai Court of First Instance’s judgement to terminate all sale and purchase agreements of lands under dispute.
It has also ordered Limitless to return all amounts paid, to the tune of AED411,966,050 ($112,175,915) plus pay a compensation amount of AED61,107,301, due to Limitless’s "breach of its obligations".
The statement from Amer Al Zoubi, general counsel and board secretary, said: “The impact of the judgement on the financial position of the company and the expected period of the impact of the news on the financial statements depends on the date of the amount collection.”
The Court of Cassation has thrown out an appeal from Dubai developer Limitless over a land deal dispute with fellow developer Deyaar.
Deyaar Development said in a statement posted to Dubai Financial Market that the court had issued a ruling, upholding a ruling made by the Court of Appeal in September, which had confirmed Dubai Court of First Instance’s judgement to terminate all sale and purchase agreements of lands under dispute.
It has also ordered Limitless to return all amounts paid, to the tune of AED411,966,050 ($112,175,915) plus pay a compensation amount of AED61,107,301, due to Limitless’s "breach of its obligations".
The statement from Amer Al Zoubi, general counsel and board secretary, said: “The impact of the judgement on the financial position of the company and the expected period of the impact of the news on the financial statements depends on the date of the amount collection.”
Oil climbs, lifted by U.S.-China trade deal hopes, OPEC cuts - Reuters
Oil climbs, lifted by U.S.-China trade deal hopes, OPEC cuts - Reuters:
Oil prices rose on Thursday, buoyed by a potential breakthrough in the Sino-U.S. trade war and OPEC-led efforts to constrain supply, although trading was quiet as many markets were in holiday mode.
Brent crude LCOc1 was up 28 cents, or 0.4%, at $67.48 a barrel by 0651 GMT.
West Texas Intermediate CLc1 was up 25 cents, also a 0.4% gain, at $61.36 a barrel.
“Oil prices continue to show year-end strength supported by a combination of definitive progress on the U.S.-China trade deal, the Dec OPEC/OPEC+ agreement, and slowing shale activity,” said Stephen Innes, chief Asia market strategist at AxiTrader.
Oil prices rose on Thursday, buoyed by a potential breakthrough in the Sino-U.S. trade war and OPEC-led efforts to constrain supply, although trading was quiet as many markets were in holiday mode.
Brent crude LCOc1 was up 28 cents, or 0.4%, at $67.48 a barrel by 0651 GMT.
West Texas Intermediate CLc1 was up 25 cents, also a 0.4% gain, at $61.36 a barrel.
“Oil prices continue to show year-end strength supported by a combination of definitive progress on the U.S.-China trade deal, the Dec OPEC/OPEC+ agreement, and slowing shale activity,” said Stephen Innes, chief Asia market strategist at AxiTrader.
MIDEAST STOCKS-Gulf dips in early trade, Aramco continues retreat | Nasdaq
MIDEAST STOCKS-Gulf dips in early trade, Aramco continues retreat | Nasdaq:
Major Gulf stock markets were subdued on Thursday as the absence of some foreign investors due to year-end holidays dampened trading activity.
Saudi Arabia's benchmark index .TASI inched down 0.1%, with Saudi Telecom 7010.SE dropping 1%, while state-owned Aramco 2222.SE eased 0.3% to 35.1 riyals ($9.35).
On Tuesday, Aramco said Goldman Sachs may stabilise its stock by purchasing additional shares on the market. The stabilisation period will end on Jan. 9, but so far no transactions have been executed.
Yanbu National Petrochemicals 2290.SE declined 1.1% after its board proposed a lower second-half dividend this year.
On the other hand, National Commercial Bank 1180.SE edged up 0.2% after the lender raised its dividend for the second half to 1.2 riyal per share.
Major Gulf stock markets were subdued on Thursday as the absence of some foreign investors due to year-end holidays dampened trading activity.
Saudi Arabia's benchmark index .TASI inched down 0.1%, with Saudi Telecom 7010.SE dropping 1%, while state-owned Aramco 2222.SE eased 0.3% to 35.1 riyals ($9.35).
On Tuesday, Aramco said Goldman Sachs may stabilise its stock by purchasing additional shares on the market. The stabilisation period will end on Jan. 9, but so far no transactions have been executed.
Yanbu National Petrochemicals 2290.SE declined 1.1% after its board proposed a lower second-half dividend this year.
On the other hand, National Commercial Bank 1180.SE edged up 0.2% after the lender raised its dividend for the second half to 1.2 riyal per share.
Wednesday 25 December 2019
Joint #Saudi, Kuwaiti oil field expected to produce 320,000 bpd by end-2020 - Reuters
Joint Saudi, Kuwaiti oil field expected to produce 320,000 bpd by end-2020 - Reuters:
Saudi Arabia’s energy minister said on Wednesday the Khafji oil field which is jointly operated with Kuwait would produce 320,000 oil barrels per day (bpd) at the end of 2020, Saudi-owned al-Arabiya TV reported.
Prince Abdulaziz bin Salman made the announcement at Khafji oil field complex in Saudi Arabia, a day after signing a deal with Kuwait that ended a dispute over the partitioned Neutral Zone that is shared by the two countries.
The two OPEC members halted production more than five years ago at Khafji and Wafra field, another jointly run field. Production is also resuming at Wafra. Output from both before the shutdown was 500,000 bpd, or about 0.5% of the world’s oil supply.
“With the signing of this new accord, both parties have reached consensus that now is the right time to resume production in this zone,” Saudi Aramco President and Chief Executive Amin Nasser said in a statement.
Saudi Arabia’s energy minister said on Wednesday the Khafji oil field which is jointly operated with Kuwait would produce 320,000 oil barrels per day (bpd) at the end of 2020, Saudi-owned al-Arabiya TV reported.
Prince Abdulaziz bin Salman made the announcement at Khafji oil field complex in Saudi Arabia, a day after signing a deal with Kuwait that ended a dispute over the partitioned Neutral Zone that is shared by the two countries.
The two OPEC members halted production more than five years ago at Khafji and Wafra field, another jointly run field. Production is also resuming at Wafra. Output from both before the shutdown was 500,000 bpd, or about 0.5% of the world’s oil supply.
“With the signing of this new accord, both parties have reached consensus that now is the right time to resume production in this zone,” Saudi Aramco President and Chief Executive Amin Nasser said in a statement.
MIDEAST STOCKS-Most of Gulf sluggish, blue-chips hurt Egypt - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most of Gulf sluggish, blue-chips hurt Egypt - Agricultural Commodities - Reuters:
Most major Gulf bourses were sluggish in
holiday-thinned trade on Wednesday with Saudi Arabia leading the
losses on financials, while Egypt retreated on a blue-chip
sell-off.
Saudi Arabia's benchmark index declined 0.9%, driven
down by a 1.8% fall in Al Rajhi Bank and a 3% slide in
National Commercial Bank.
State-owned Aramco dropped a further 0.6% to 35.2
riyals ($9.38) despite Goldman Sachs saying that it may
stabilise its shares by purchasing additional shares on the
market.
The stabilisation period will end on Jan. 9, but so far no
transactions have been executed.
Gulf Union Cooperative Insurance gained earlier in
the session, then went into reverse and closed 1.5% down. On
Wednesday, the insurer signed a non-binding memorandum of
understanding with Al Ahlia for Cooperative Insurance
to evaluate a merger. Al Ahlia climbed 3.1%.
Most major Gulf bourses were sluggish in
holiday-thinned trade on Wednesday with Saudi Arabia leading the
losses on financials, while Egypt retreated on a blue-chip
sell-off.
Saudi Arabia's benchmark index declined 0.9%, driven
down by a 1.8% fall in Al Rajhi Bank and a 3% slide in
National Commercial Bank.
State-owned Aramco dropped a further 0.6% to 35.2
riyals ($9.38) despite Goldman Sachs saying that it may
stabilise its shares by purchasing additional shares on the
market.
The stabilisation period will end on Jan. 9, but so far no
transactions have been executed.
Gulf Union Cooperative Insurance gained earlier in
the session, then went into reverse and closed 1.5% down. On
Wednesday, the insurer signed a non-binding memorandum of
understanding with Al Ahlia for Cooperative Insurance
to evaluate a merger. Al Ahlia climbed 3.1%.
#Saudi untapped mortgage market nears $133bln: Al Rajhi Capital | ZAWYA MENA Edition
Saudi untapped mortgage market nears $133bln: Al Rajhi Capital | ZAWYA MENA Edition:
Al Rajhi Capital estimates the size of untapped mortgage potential in Saudi Arabia at around SAR 500 billion ($133.3 billion), roughly a third of the current private-sector loan portfolio that totals SAR 1.5 trillion.
The research firm said that its calculations show about 1.22 million homes are likely to be constructed from 2020 to 2030 for achieving Vision 2030 penetration target of 70%, with the current run rate is near 180,000 homes in 2019, and is estimated to increase to 190,000 per year for the next three years.
“We believe it is important to look at mortgage loans as % of Interest-Earning Assets (IEA), rather than as % of the loan, as some banks have large non-loan IEA. By this metric we have observed that Al Rajhi, Riyad, Aljazira have the highest weights in the same order,” the report noted.
Al Rajhi Capital further explained that assuming an increase in the mortgage market next year by SAR 80 billion, it estimates that mortgage could add about 5% of the TTM profits to the sectors bottom line in 2020.
Al Rajhi Capital estimates the size of untapped mortgage potential in Saudi Arabia at around SAR 500 billion ($133.3 billion), roughly a third of the current private-sector loan portfolio that totals SAR 1.5 trillion.
The research firm said that its calculations show about 1.22 million homes are likely to be constructed from 2020 to 2030 for achieving Vision 2030 penetration target of 70%, with the current run rate is near 180,000 homes in 2019, and is estimated to increase to 190,000 per year for the next three years.
“We believe it is important to look at mortgage loans as % of Interest-Earning Assets (IEA), rather than as % of the loan, as some banks have large non-loan IEA. By this metric we have observed that Al Rajhi, Riyad, Aljazira have the highest weights in the same order,” the report noted.
Al Rajhi Capital further explained that assuming an increase in the mortgage market next year by SAR 80 billion, it estimates that mortgage could add about 5% of the TTM profits to the sectors bottom line in 2020.
Emaar denies plan to sell At The Top Burj Khalifa tourist attraction - Arabianbusiness
Emaar denies plan to sell At The Top Burj Khalifa tourist attraction - Arabianbusiness:
Emaar Properties on Tuesday denied reports it is looking to sell the observation deck of Burj Khalifa, the world’s tallest tower.
Earlier, unnamed sources quoted in a Reuters report claimed Standard Chartered bank had been appointed as advisors as part of a potential sale.
But in a filing with Dubai Financial Market, the Dubai developer said: "The company would like to confirm that it is not selling the At The Top business in Burj Khalifa."
Emaar added in the statement: "The company is currently considering a structured transaction wherein financing is being raised against the cashflows of At The Top business.
 |
| The At The Top attraction is considered a 'must see' for a significant portion of the approximately 16 million overnight visitors to Dubai each year. |
Emaar Properties on Tuesday denied reports it is looking to sell the observation deck of Burj Khalifa, the world’s tallest tower.
Earlier, unnamed sources quoted in a Reuters report claimed Standard Chartered bank had been appointed as advisors as part of a potential sale.
But in a filing with Dubai Financial Market, the Dubai developer said: "The company would like to confirm that it is not selling the At The Top business in Burj Khalifa."
Emaar added in the statement: "The company is currently considering a structured transaction wherein financing is being raised against the cashflows of At The Top business.
MIDEAST STOCKS-Gulf mostly little changed; financials pressure #Saudi - Agricultural Commodities - Reuters
MIDEAST STOCKS-Gulf mostly little changed; financials pressure Saudi - Agricultural Commodities - Reuters:
Gulf stock markets were mostly quiet in moderate trading volumes on Wednesday in the absence of foreign investors for Christmas, while Saudi was hurt by losses in financial shares.
The Saudi index fell 0.3% as Al Rajhi Bank lost 0.5% and fellow lender National Commercial Bank dropped 0.6%.
State-owned Aramco slipped a further 0.4% despite Goldman Sachs saying that it may stabilise its shares by purchasing additional shares on the market.
But Gulf Union Cooperative Insurance gained 2.6% after it signed a non-binding memorandum of understanding with Al Ahlia for Cooperative Insurance to evaluate merger. Al Ahlia advanced 5.6%.
Gulf stock markets were mostly quiet in moderate trading volumes on Wednesday in the absence of foreign investors for Christmas, while Saudi was hurt by losses in financial shares.
The Saudi index fell 0.3% as Al Rajhi Bank lost 0.5% and fellow lender National Commercial Bank dropped 0.6%.
State-owned Aramco slipped a further 0.4% despite Goldman Sachs saying that it may stabilise its shares by purchasing additional shares on the market.
But Gulf Union Cooperative Insurance gained 2.6% after it signed a non-binding memorandum of understanding with Al Ahlia for Cooperative Insurance to evaluate merger. Al Ahlia advanced 5.6%.
Tuesday 24 December 2019
Oil rises on supply cut pledges and slow return of Gulf field - Reuters
Oil rises on supply cut pledges and slow return of Gulf field - Reuters:
Oil prices rose on Tuesday in thin pre-Christmas trading after Russia said cooperation with OPEC on supply cuts would continue and amid optimism that the United States and China could finalize a trade agreement.
Brent crude LCOc1 was up 57 cents, or 0.86%, at $66.96 a barrel by 10:22 a.m. EST (1522 GMT) U.S. West Texas Intermediate CLc1 was 56 cents higher at $60.87 a barrel.
OPEC and Russia will continue their cooperation as long as it is “effective and brings results,” Russian energy minister Alexander Novak said in an interview on Monday.
OPEC and allies agreed in November to extend and deepen output curbs in place since 2017. Under the reduced output, as much as 2.1 million barrels per day (bpd) could be taken off the market, or about 2% of global demand.
Oil prices rose on Tuesday in thin pre-Christmas trading after Russia said cooperation with OPEC on supply cuts would continue and amid optimism that the United States and China could finalize a trade agreement.
Brent crude LCOc1 was up 57 cents, or 0.86%, at $66.96 a barrel by 10:22 a.m. EST (1522 GMT) U.S. West Texas Intermediate CLc1 was 56 cents higher at $60.87 a barrel.
OPEC and Russia will continue their cooperation as long as it is “effective and brings results,” Russian energy minister Alexander Novak said in an interview on Monday.
OPEC and allies agreed in November to extend and deepen output curbs in place since 2017. Under the reduced output, as much as 2.1 million barrels per day (bpd) could be taken off the market, or about 2% of global demand.
Saudis, #Kuwait Agree to Resume Oil Output at Shared Fields - Bloomberg
Saudis, Kuwait Agree to Resume Oil Output at Shared Fields - Bloomberg:
Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output.
Their agreement allows for “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. The oil fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Chevron Corp., which operates the area’s Wafra field together with Kuwait Gulf Oil Co., expects full production there to be restored within 12 months, it said Tuesday in a statement. Wafra has been shut down since May 2015.
A resumption on that timetable would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. Even so, the agreement to re-start the fields could weigh on market sentiment amid concerns about faltering growth in world demand and rising supply from the U.S. and other producers.
Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output.
Their agreement allows for “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. The oil fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Chevron Corp., which operates the area’s Wafra field together with Kuwait Gulf Oil Co., expects full production there to be restored within 12 months, it said Tuesday in a statement. Wafra has been shut down since May 2015.
A resumption on that timetable would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. Even so, the agreement to re-start the fields could weigh on market sentiment amid concerns about faltering growth in world demand and rising supply from the U.S. and other producers.
Goldman may stabilize #Saudi Aramco shares following IPO - Reuters
Goldman may stabilize Saudi Aramco shares following IPO - Reuters:
Saudi Aramco (2222.SE) said that Goldman Sachs may stabilize its shares after a record initial public offering earlier this month.
Stabilization agents support the share price by purchasing additional shares on the market.
The stabilization period will end on Jan. 9, but so far no transactions have been executed, it said in a statement.
Aramco shares ended nearly 0.6% lower at 35.40 riyals ($9.44), above its IPO price of 32 riyals per share, valuing the oil giant at about $1.9 trillion.
The shares have eased after hitting an intraday high of 38.7 riyals on Dec 12.
Saudi Aramco (2222.SE) said that Goldman Sachs may stabilize its shares after a record initial public offering earlier this month.
Stabilization agents support the share price by purchasing additional shares on the market.
The stabilization period will end on Jan. 9, but so far no transactions have been executed, it said in a statement.
Aramco shares ended nearly 0.6% lower at 35.40 riyals ($9.44), above its IPO price of 32 riyals per share, valuing the oil giant at about $1.9 trillion.
The shares have eased after hitting an intraday high of 38.7 riyals on Dec 12.
Emirates' long-serving boss to hand over the controls next year - Reuters
Emirates' long-serving boss to hand over the controls next year - Reuters:
Tim Clark will retire as the president of Emirates Airline [EMIRA.UL] at the end of June 2020 after more than three decades at the state-controlled business that has helped to transform Dubai into one of the world’s major travel crossroads.
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum said on Tuesday in an internal memo to staff, reviewed by Reuters, that Clark would stay on as an adviser to the company.
“Through wars, economic recessions, disasters natural or manmade, and various industry upheavals, Tim has ably steered and grown Emirates to its standing today as the world’s largest international airline, and an eminent player in the global airline industry,” Sheikh Ahmed said in the memo.
An Emirates spokeswoman confirmed the retirement to Reuters.
Tim Clark will retire as the president of Emirates Airline [EMIRA.UL] at the end of June 2020 after more than three decades at the state-controlled business that has helped to transform Dubai into one of the world’s major travel crossroads.
 |
| FILE PHOTO: Emirates Airline President Tim Clark speaks at the Arabian Travel Market in Dubai, UAE April 29, 2019. REUTERS/Satish Kumar |
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum said on Tuesday in an internal memo to staff, reviewed by Reuters, that Clark would stay on as an adviser to the company.
“Through wars, economic recessions, disasters natural or manmade, and various industry upheavals, Tim has ably steered and grown Emirates to its standing today as the world’s largest international airline, and an eminent player in the global airline industry,” Sheikh Ahmed said in the memo.
An Emirates spokeswoman confirmed the retirement to Reuters.
MIDEAST STOCKS-Gulf shares fall; Aramco closes lower - Reuters
MIDEAST STOCKS-Gulf shares fall; Aramco closes lower - Reuters:
Gulf stocks mostly fell on Tuesday, with
financials pulling down Qatar, while Saudi Arabia's stock index
traded flat as energy and property shares moved sideways.
The Qatari index declined 0.8% with all its financial
stocks retreating. Qatar National Bank, the Gulf's
largest lender, dropped 1.6% and Qatar Islamic Bank
eased 1.2%.
Saudi Arabia's benchmark index was little changed.
Samba Financial Group shed 2.2% and Saudi Aramco
ended 0.6% lower. Dar Al Arkan gained 1.5%
and Makkah Construction was up 1.7%.
Saudi Industrial Services rose 2.8% after its Red
Sea Gateway Terminal unit signed a new 30-year concession with
the Saudi ports authority to develop the northern part of Jeddah
port.
Gulf stocks mostly fell on Tuesday, with
financials pulling down Qatar, while Saudi Arabia's stock index
traded flat as energy and property shares moved sideways.
The Qatari index declined 0.8% with all its financial
stocks retreating. Qatar National Bank, the Gulf's
largest lender, dropped 1.6% and Qatar Islamic Bank
eased 1.2%.
Saudi Arabia's benchmark index was little changed.
Samba Financial Group shed 2.2% and Saudi Aramco
ended 0.6% lower. Dar Al Arkan gained 1.5%
and Makkah Construction was up 1.7%.
Saudi Industrial Services rose 2.8% after its Red
Sea Gateway Terminal unit signed a new 30-year concession with
the Saudi ports authority to develop the northern part of Jeddah
port.
Oil Holds Above $60 as U.S. Crude Stockpiles Seen Shrinking - Bloomberg
Oil Holds Above $60 as U.S. Crude Stockpiles Seen Shrinking - Bloomberg:
Oil held above $60 a barrel before U.S. government data forecast to show that crude stockpiles declined again, mitigating concerns that global markets face a renewed surplus next year.
Futures were steady for a second day in New York. American crude inventories fell by 1.7 million barrels last week, according to a Bloomberg survey before Energy Information Administration data on Friday and industry figures due later Tuesday. Iraq, one of the biggest over-producers in the OPEC deal, pared output this month amid growing pressure to implement its share of cutbacks, according to tanker-tracker Petro-Logistics SA.
Oil is on course for the best month since January after the U.S. and China made a breakthrough on an initial trade deal and the Organization of Petroleum Exporting Countries and its partners agreed to deepen output cuts. American crude inventories are coming off their highs even as the nation pumps near-record levels and shale explorers revive drilling.
“The latest OPEC+ agreement appears to have boosted sentiment,” analysts at consultants JBC Energy GmbH in Vienna said in a report.
Oil held above $60 a barrel before U.S. government data forecast to show that crude stockpiles declined again, mitigating concerns that global markets face a renewed surplus next year.
Futures were steady for a second day in New York. American crude inventories fell by 1.7 million barrels last week, according to a Bloomberg survey before Energy Information Administration data on Friday and industry figures due later Tuesday. Iraq, one of the biggest over-producers in the OPEC deal, pared output this month amid growing pressure to implement its share of cutbacks, according to tanker-tracker Petro-Logistics SA.
Oil is on course for the best month since January after the U.S. and China made a breakthrough on an initial trade deal and the Organization of Petroleum Exporting Countries and its partners agreed to deepen output cuts. American crude inventories are coming off their highs even as the nation pumps near-record levels and shale explorers revive drilling.
“The latest OPEC+ agreement appears to have boosted sentiment,” analysts at consultants JBC Energy GmbH in Vienna said in a report.
#Kuwait and #Saudi sign agreements on dividing Neutral Zone containing joint oilfields - Reuters
Kuwait and Saudi sign agreements on dividing Neutral Zone containing joint oilfields - Reuters:
Kuwait and Saudi Arabia signed on Tuesday an agreement and a memorandum of understanding on dividing the Neutral Zone, which contains jointly-operated oilfields, between the two countries, Kuwait’s state-run news agency (KUNA) said.
There were no additional details on the agreement, which resolves a more than five-year dispute between the two countries and leads to the resumption of oil output from the jointly-operated fields.
Kuwait and Saudi Arabia signed on Tuesday an agreement and a memorandum of understanding on dividing the Neutral Zone, which contains jointly-operated oilfields, between the two countries, Kuwait’s state-run news agency (KUNA) said.
There were no additional details on the agreement, which resolves a more than five-year dispute between the two countries and leads to the resumption of oil output from the jointly-operated fields.
How Expo 2020 #Dubai is forecast to impact the #UAE economy next year - Arabianbusiness
How Expo 2020 Dubai is forecast to impact the UAE economy next year - Arabianbusiness:
The outlook for the UAE’s economy remains promising, with economic growth expected to accelerate from an estimated 1.9 percent in 2019 to around 2.2 percent in 2020, according to new research.
ICAEW, the accountancy and finance body, said that Expo 2020 Dubai is expected to boost UAE's non-oil GDP growth to about 2.8 percent.
Its Economic Update: Middle East Q4 2019 reported, produced in partnership with Oxford Economics, said Expo 2020 Dubai, which is anticipated to attract 25 million visitors, is forecast to contribute up to 1.5 percent of the UAE’s overall GDP in 2020.
The report added that relevant authorities have stepped in to support non-oil activities in the country. Both Abu Dhabi and Dubai are implementing fiscal packages, while the recent interest rate cut by the US Federal Reserve, which the UAE Central Bank followed given the dollar peg, should support private sector credit growth.
The outlook for the UAE’s economy remains promising, with economic growth expected to accelerate from an estimated 1.9 percent in 2019 to around 2.2 percent in 2020, according to new research.
ICAEW, the accountancy and finance body, said that Expo 2020 Dubai is expected to boost UAE's non-oil GDP growth to about 2.8 percent.
Its Economic Update: Middle East Q4 2019 reported, produced in partnership with Oxford Economics, said Expo 2020 Dubai, which is anticipated to attract 25 million visitors, is forecast to contribute up to 1.5 percent of the UAE’s overall GDP in 2020.
The report added that relevant authorities have stepped in to support non-oil activities in the country. Both Abu Dhabi and Dubai are implementing fiscal packages, while the recent interest rate cut by the US Federal Reserve, which the UAE Central Bank followed given the dollar peg, should support private sector credit growth.
#Qatar Petroleum to start pricing its crude grades on forward basis in February - Reuters
Qatar Petroleum to start pricing its crude grades on forward basis in February - Reuters:
Qatar Petroleum will start pricing its crude oil grades of Qatar marine and Qatar land on a prospective pricing basis in February 2020, the company said on Tuesday, confirming an earlier report by Reuters.
QP currently prices the two grades on a retroactive basis but will move this to forward pricing, a more popular approach used by other Middle East crude exporters such as Saudi Arabia that better matches the trading cycle of crude.
The new step will improve the overall competitiveness of Qatar Marine and Qatar Land, and allow existing and new customers to better compare the Qatari crude grades with other grades, QP said.
By changing the pricing methodology, QP is following the UAE’s Abu Dhabi National Oil Co (ADNOC), which in November launched a new pricing mechanism for its flagship Murban crude.
Qatar Petroleum will start pricing its crude oil grades of Qatar marine and Qatar land on a prospective pricing basis in February 2020, the company said on Tuesday, confirming an earlier report by Reuters.
QP currently prices the two grades on a retroactive basis but will move this to forward pricing, a more popular approach used by other Middle East crude exporters such as Saudi Arabia that better matches the trading cycle of crude.
The new step will improve the overall competitiveness of Qatar Marine and Qatar Land, and allow existing and new customers to better compare the Qatari crude grades with other grades, QP said.
By changing the pricing methodology, QP is following the UAE’s Abu Dhabi National Oil Co (ADNOC), which in November launched a new pricing mechanism for its flagship Murban crude.