Oil prices rise sharply, bouncing off session low:
Oil prices were higher on the first trading day of 2019, bolstered by signs of tighter supplies from Saudi Arabia that offset record output in the United States and Russia and weak economic data.
Crude futures jumped as much as 5 percent earlier in the session, but gave up some of those gains in afternoon trading.
U.S. West Texas Intermediate crude ended Wednesday's session at a two-week high, up $1.13, or 2.5 percent, to $46.54. Brent crude rose $1.13, or 2.1 percent, to $54.93 a barrel at 2:28 p.m. ET, after trading as low as $52.51 earlier.
Wednesday, 2 January 2019
#Oman seeks to raise $6.2b for 2019
Oman seeks to raise $6.2b for 2019:
Oman’s government, whose budget deficit is among the largest of all the sovereigns tracked by Fitch Ratings, will tap capital markets for a fourth straight year to plug a fiscal gap vulnerable to lower oil prices.
The Gulf nation is looking to raise 2.4 billion Omani riyals (Dh22.8 billion, $6.2 billion) internationally and at home, according to a state budget plan published on the Oman News Agency. Borrowing will cover 86 per cent of the country’s 2.8 billion-riyal shortfall, with the remaining 400 million riyals to be drawn from the country’s reserves.
After ending a two-decade absence from international capital markets three years ago, Oman has grown increasingly reliant on borrowing. Debt as a share of gross domestic product more than tripled to near 50 per cent.
Oman’s government, whose budget deficit is among the largest of all the sovereigns tracked by Fitch Ratings, will tap capital markets for a fourth straight year to plug a fiscal gap vulnerable to lower oil prices.
The Gulf nation is looking to raise 2.4 billion Omani riyals (Dh22.8 billion, $6.2 billion) internationally and at home, according to a state budget plan published on the Oman News Agency. Borrowing will cover 86 per cent of the country’s 2.8 billion-riyal shortfall, with the remaining 400 million riyals to be drawn from the country’s reserves.
After ending a two-decade absence from international capital markets three years ago, Oman has grown increasingly reliant on borrowing. Debt as a share of gross domestic product more than tripled to near 50 per cent.
#DohaBank retains top spot in ESG rankings of listed firms in Qatar - The Peninsula Qatar
Doha Bank retains top spot in ESG rankings of listed firms in Qatar - The Peninsula Qatar:
Doha Bank, one of the largest private commercial banks in Qatar, has retained the top rating for the second year in a row in the annual Environmental, Social and Governance (ESG) review of companies listed on Qatar Stock Exchange by ESG Invest, the investment research arm of Sustainability Excellence.
The Bank says it became possible as a result of its tireless pursuit of sustainable practices across all aspects of operations. ESG Invest provides comprehensive ESG ratings research reports that quantify the ESG performance of companies in the Arab world.
The firm’s team of analysts assesses ESG data points across nine Sustainability Dimensions and 43 ESG issues with more than 180 data points for companies in the region, analyzing levels of integration of ESG issues within the companies’ core business activities.
Doha Bank, one of the largest private commercial banks in Qatar, has retained the top rating for the second year in a row in the annual Environmental, Social and Governance (ESG) review of companies listed on Qatar Stock Exchange by ESG Invest, the investment research arm of Sustainability Excellence.
The Bank says it became possible as a result of its tireless pursuit of sustainable practices across all aspects of operations. ESG Invest provides comprehensive ESG ratings research reports that quantify the ESG performance of companies in the Arab world.
The firm’s team of analysts assesses ESG data points across nine Sustainability Dimensions and 43 ESG issues with more than 180 data points for companies in the region, analyzing levels of integration of ESG issues within the companies’ core business activities.
Saudis Said to Seek Advisers for Biggest Bank Merger Since 2016 - Bloomberg
Saudis Said to Seek Advisers for Biggest Bank Merger Since 2016 - Bloomberg:
National Commercial Bank and Riyad Bank are seeking advisers for a potential merger that would create the Gulf region’s third-biggest lender with $182 billion in assets, according to people with knowledge of the matter.
The banks have sent out so-called request for proposals to firms including Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and UBS Group AG, the people said, asking not to be identified because the matter is private.
Formal advisers for the deal, which could be biggest bank merger for almost three years, could be appointed this month, the people said. The proposed combination has the backing of the Public Investment Fund, the sovereign wealth fund that owns about 44 percent of National Commercial Bank and 22 percent of Riyad Bank, the people said. No final decisions have been made and the banks may choose other advisers, they said.
National Commercial Bank and Riyad Bank are seeking advisers for a potential merger that would create the Gulf region’s third-biggest lender with $182 billion in assets, according to people with knowledge of the matter.
The banks have sent out so-called request for proposals to firms including Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and UBS Group AG, the people said, asking not to be identified because the matter is private.
Formal advisers for the deal, which could be biggest bank merger for almost three years, could be appointed this month, the people said. The proposed combination has the backing of the Public Investment Fund, the sovereign wealth fund that owns about 44 percent of National Commercial Bank and 22 percent of Riyad Bank, the people said. No final decisions have been made and the banks may choose other advisers, they said.
OPEC Output Falls Most in Almost 2 Years as #Saudi Cuts Begin - Bloomberg
OPEC Output Falls Most in Almost 2 Years as Saudi Cuts Begin - Bloomberg:
Before its agreement to cut oil supplies even started, OPEC’s production plunged by the most in almost two years last month.
In a sign of the urgency felt by the cartel amid tumbling crude prices, leading member Saudi Arabia throttled back production, according to a Bloomberg survey of officials, analysts and ship-tracking data. The group’s pact to curb output only formally started this week.
The kingdom’s deliberate cutbacks were compounded by unplanned losses in Iran, which is being targeted by U.S. sanctions, and in Libya, where protests halted the biggest oil field.
Before its agreement to cut oil supplies even started, OPEC’s production plunged by the most in almost two years last month.
In a sign of the urgency felt by the cartel amid tumbling crude prices, leading member Saudi Arabia throttled back production, according to a Bloomberg survey of officials, analysts and ship-tracking data. The group’s pact to curb output only formally started this week.
The kingdom’s deliberate cutbacks were compounded by unplanned losses in Iran, which is being targeted by U.S. sanctions, and in Libya, where protests halted the biggest oil field.
COLUMN-Fear sends equity and commodity prices tumbling in 2018: Kemp | Reuters
COLUMN-Fear sends equity and commodity prices tumbling in 2018: Kemp | Reuters:
The Middle East became less rather than more stable in 2018, with an intensifying dispute between Saudi Arabia and Iran, tensions between Qatar and its neighbours, and the ongoing war in Yemen.
The U.S. withdrew from the Iran nuclear deal and re-imposed sweeping sanctions on the country, ratcheting up tensions and leaving the future of the accord unclear.
Previous optimism about Saudi Arabia’s modernisation programme was quashed by concerns about the country’s leadership following the detention of domestic critics and the killing of journalist Jamal Khashoggi.
The Middle East became less rather than more stable in 2018, with an intensifying dispute between Saudi Arabia and Iran, tensions between Qatar and its neighbours, and the ongoing war in Yemen.
The U.S. withdrew from the Iran nuclear deal and re-imposed sweeping sanctions on the country, ratcheting up tensions and leaving the future of the accord unclear.
Previous optimism about Saudi Arabia’s modernisation programme was quashed by concerns about the country’s leadership following the detention of domestic critics and the killing of journalist Jamal Khashoggi.
Oil jumps 4 percent, but demand concerns still weigh | Reuters
Oil jumps 4 percent, but demand concerns still weigh | Reuters:
Oil prices rose 4 percent in choppy trading on Wednesday, but concerns remained about rising crude production and weakening global economic growth which could hurt demand for oil.
Brent crude LCOc1 futures rose $2.38 to $56.18 a barrel, a 4.4 percent gain, by 11:27 a.m. EST (1627 GMT) after earlier falling as low as $52.51. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $2.09 to $47.50 a barrel, a 4.6 percent gain, after sinking to $44.35.
“Given the high levels of price volatility we’ve witnessed over the last month, a $2 daily move isn’t really anything other than signs we continue to have price volatility,” said Gene McGillian, vice president of market research for Tradition Energy in Stamford, Connecticut.
Oil prices rose 4 percent in choppy trading on Wednesday, but concerns remained about rising crude production and weakening global economic growth which could hurt demand for oil.
Brent crude LCOc1 futures rose $2.38 to $56.18 a barrel, a 4.4 percent gain, by 11:27 a.m. EST (1627 GMT) after earlier falling as low as $52.51. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $2.09 to $47.50 a barrel, a 4.6 percent gain, after sinking to $44.35.
“Given the high levels of price volatility we’ve witnessed over the last month, a $2 daily move isn’t really anything other than signs we continue to have price volatility,” said Gene McGillian, vice president of market research for Tradition Energy in Stamford, Connecticut.
#Dubai Gold and Commodities Exchange breaks annual volumes record | ZAWYA MENA Edition
Dubai Gold and Commodities Exchange breaks annual volumes record | ZAWYA MENA Edition:
The Dubai Gold and Commodities Exchange, DGCX, announced today that it has rounded off a highly successful 2018 by breaking its annual volumes record, trading 22.26 million contracts, up 28 per cent from the previous year.
The total value of the contracts was US$474.94 billion, beating its previous highest value of US$448 billion traded in 2013. Average Daily Volumes also finished the year at an all-time high, reaching 86,615 lots. The Exchange achieved a strong start to 2018, recording 5,541,732 lots traded in Q1, valued at US$129 billion.
Building on this momentum, in May, reported its best month since inception, recording its highest monthly volume with 2,163,598 contracts traded, valued at US$46.1 billion. With the Exchanges best quarter coming in Q3 with 5,863,276 lots traded. In March, the Exchange launched the GCC’s first and the world’s only exchange-traded Shari’ah Compliant Spot Gold contract. The Exchange also introduced new cutting-edge technology, upgrading its trading and clearing solution from Cinnober to an enhanced version of the TRADExpress platform, streamlining its business development capabilities and improving bandwidth usage and latency performance.
The Dubai Gold and Commodities Exchange, DGCX, announced today that it has rounded off a highly successful 2018 by breaking its annual volumes record, trading 22.26 million contracts, up 28 per cent from the previous year.
The total value of the contracts was US$474.94 billion, beating its previous highest value of US$448 billion traded in 2013. Average Daily Volumes also finished the year at an all-time high, reaching 86,615 lots. The Exchange achieved a strong start to 2018, recording 5,541,732 lots traded in Q1, valued at US$129 billion.
Building on this momentum, in May, reported its best month since inception, recording its highest monthly volume with 2,163,598 contracts traded, valued at US$46.1 billion. With the Exchanges best quarter coming in Q3 with 5,863,276 lots traded. In March, the Exchange launched the GCC’s first and the world’s only exchange-traded Shari’ah Compliant Spot Gold contract. The Exchange also introduced new cutting-edge technology, upgrading its trading and clearing solution from Cinnober to an enhanced version of the TRADExpress platform, streamlining its business development capabilities and improving bandwidth usage and latency performance.
MIDEAST STOCKS-Top bank boosts Egypt, Gulf falls in thin trade | Reuters
MIDEAST STOCKS-Top bank boosts Egypt, Gulf falls in thin trade | Reuters:
Egypt's blue-chip stock index rose sharply on Wednesday, boosted by its biggest bank, while all major Gulf markets were weak, with some investors away on year-end holidays.
The Egyptian index rose 1.3 percent as Commercial International Bank gained 1.9 percent.
Real estate firm Talaat Mostafa rose 3.2 percent after saying its sales last year reached 21.3 billion Egyptian pounds ($1.2 billion), up from 13.1 billion pounds a year earlier.
Egypt's blue-chip stock index rose sharply on Wednesday, boosted by its biggest bank, while all major Gulf markets were weak, with some investors away on year-end holidays.
The Egyptian index rose 1.3 percent as Commercial International Bank gained 1.9 percent.
Real estate firm Talaat Mostafa rose 3.2 percent after saying its sales last year reached 21.3 billion Egyptian pounds ($1.2 billion), up from 13.1 billion pounds a year earlier.
#Qatar Airways Buys 5% of China Southern in Asia Investment Push - Bloomberg
Qatar Airways Buys 5% of China Southern in Asia Investment Push - Bloomberg:
Qatar Airways bought a five percent stake in China Southern Airlines Co. by purchasing shares listed in Shanghai and Hong Kong as part of its plan to invest in the “strongest” carriers around the world and bolster its network.
The Middle Eastern carrier now holds 613.36 million shares of the state-owned Chinese carrier, of which 183 million are listed in Hong Kong, according to a filing Wednesday by China Southern. The investment makes Qatar Air the fourth-biggest shareholder of the mainland carrier.
Qatar Airways bought a five percent stake in China Southern Airlines Co. by purchasing shares listed in Shanghai and Hong Kong as part of its plan to invest in the “strongest” carriers around the world and bolster its network.
The Middle Eastern carrier now holds 613.36 million shares of the state-owned Chinese carrier, of which 183 million are listed in Hong Kong, according to a filing Wednesday by China Southern. The investment makes Qatar Air the fourth-biggest shareholder of the mainland carrier.
Oil, Populist Leaders and the Dollar: Guide to EM Risks in 2019 - Bloomberg
Oil, Populist Leaders and the Dollar: Guide to EM Risks in 2019 - Bloomberg:
Emerging markets are tentatively picking themselves up from the floor after a rout that’s wiped about $5 trillion off the value of stocks since a high in January 2018. But the reprieve may not last long.
Rising rates in the U.S., a stronger dollar, Beijing and Washington’s trade war, lower oil prices and the emergence of populist leaders in Latin America’s two biggest economies could all weigh on markets.
“The theory is dead simple: emerging-market assets have already bombed, so the downside, if things get worse, is much lower and if things recover they have greater potential to perform,” said Anthony Peters, an independent analyst, formerly at Blockex Ltd., who’s long covered developing nations. However, “they have the potential to go much lower for much longer than anybody had ever thought possible.”
Emerging markets are tentatively picking themselves up from the floor after a rout that’s wiped about $5 trillion off the value of stocks since a high in January 2018. But the reprieve may not last long.
Rising rates in the U.S., a stronger dollar, Beijing and Washington’s trade war, lower oil prices and the emergence of populist leaders in Latin America’s two biggest economies could all weigh on markets.
“The theory is dead simple: emerging-market assets have already bombed, so the downside, if things get worse, is much lower and if things recover they have greater potential to perform,” said Anthony Peters, an independent analyst, formerly at Blockex Ltd., who’s long covered developing nations. However, “they have the potential to go much lower for much longer than anybody had ever thought possible.”
#Iran to Double Down on Investment in Oil's Growth Engine India - Bloomberg
Iran to Double Down on Investment in Oil's Growth Engine India - Bloomberg:
Iran will invest about 15 billion rupees to expand a refinery run by Chennai Petroleum Corp. in south India, the company’s managing director said, amid U.S. sanctions on the Persian Gulf nation that have severely hit its oil exports.
The state-run company is boosting capacity at its Nagapattinam facility by nine-fold to process 9 million tons per year and the investment is Naftiran Intertrade Co.’s share of the 275 billion rupees ($4 billion) expansion plan, Managing Director S.N. Pandey said in an interview in Chennai last week. The rest of the investment will be through debt and equity, including fresh capital from its main founder Indian Oil Corp.
“We will achieve the financial closure in 2019,” Pandey said. “We don’t see any issue in debt raising. We have already talked to many bankers.”
Iran will invest about 15 billion rupees to expand a refinery run by Chennai Petroleum Corp. in south India, the company’s managing director said, amid U.S. sanctions on the Persian Gulf nation that have severely hit its oil exports.
The state-run company is boosting capacity at its Nagapattinam facility by nine-fold to process 9 million tons per year and the investment is Naftiran Intertrade Co.’s share of the 275 billion rupees ($4 billion) expansion plan, Managing Director S.N. Pandey said in an interview in Chennai last week. The rest of the investment will be through debt and equity, including fresh capital from its main founder Indian Oil Corp.
“We will achieve the financial closure in 2019,” Pandey said. “We don’t see any issue in debt raising. We have already talked to many bankers.”
Derivatives: Gulf's nascent futures market still needs to develop | ZAWYA MENA Edition
Derivatives: Gulf's nascent futures market still needs to develop | ZAWYA MENA Edition:
With the Dubai and Abu Dhabi equity markets having lost ground in the second half of 2018, this should have provided fertile ground for investors to use equity shorts to hedge their portfolios.
Indeed, in November, futures volumes on the Nasdaq Dubai jumped 119 percent compared with the previous month, to 20.48 million United Arab Emirates dirhams ($5.6 million). But given that the combined turnover of stocks on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) was over 8 billion dirhams, the volume of futures is “extremely irrelevant,” Marwan Shurrab, senior vice-president and head of HNW and retail equities at Al Ramz Capital told Zawya in a telephone interview last month.
“[To be relevant] the future volumes need to be a percentage of the total turnover. In certain mature markets, the futures market actually does multiples of the real equity market,” he said.
With the Dubai and Abu Dhabi equity markets having lost ground in the second half of 2018, this should have provided fertile ground for investors to use equity shorts to hedge their portfolios.
Indeed, in November, futures volumes on the Nasdaq Dubai jumped 119 percent compared with the previous month, to 20.48 million United Arab Emirates dirhams ($5.6 million). But given that the combined turnover of stocks on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) was over 8 billion dirhams, the volume of futures is “extremely irrelevant,” Marwan Shurrab, senior vice-president and head of HNW and retail equities at Al Ramz Capital told Zawya in a telephone interview last month.
“[To be relevant] the future volumes need to be a percentage of the total turnover. In certain mature markets, the futures market actually does multiples of the real equity market,” he said.
Oil falls to $53 on economic worries, surging supply | Reuters
Oil falls to $53 on economic worries, surging supply | Reuters:
Oil fell to around $53 a barrel on Wednesday, pressured by rising output in major OPEC and non-OPEC producers and concern about an economic slowdown that could weaken demand.
Russian production hit a post-Soviet record in 2018, figures on Wednesday showed. Earlier this week, official data showed U.S. output reached a record in October and Iraq boosted oil exports in December.
Brent crude LCOc1 fell 70 cents to $53.10 a barrel at 0838 GMT. On Dec. 26, it reached $49.93, the lowest since July 2017. U.S. crude CLc1 slipped 62 cents to $44.79.
Oil fell to around $53 a barrel on Wednesday, pressured by rising output in major OPEC and non-OPEC producers and concern about an economic slowdown that could weaken demand.
Russian production hit a post-Soviet record in 2018, figures on Wednesday showed. Earlier this week, official data showed U.S. output reached a record in October and Iraq boosted oil exports in December.
Brent crude LCOc1 fell 70 cents to $53.10 a barrel at 0838 GMT. On Dec. 26, it reached $49.93, the lowest since July 2017. U.S. crude CLc1 slipped 62 cents to $44.79.
Russian oil output reaches record high in 2018 | Reuters
Russian oil output reaches record high in 2018 | Reuters:
Russian oil production rose to a post-Soviet record high of 11.16 million barrels per day (bpd) last year on an annual average basis, data from its energy ministry showed on Wednesday.
The total surpassed the previous annual record average of 10.98 million bpd set in 2017.
Russian oil output reached 555.838 million tonnes last year, against 547 million tonnes in 2017. Reuters uses a barrels-to-tonnes ratio of 7.33 to 1.
Russian oil production rose to a post-Soviet record high of 11.16 million barrels per day (bpd) last year on an annual average basis, data from its energy ministry showed on Wednesday.
The total surpassed the previous annual record average of 10.98 million bpd set in 2017.
Russian oil output reached 555.838 million tonnes last year, against 547 million tonnes in 2017. Reuters uses a barrels-to-tonnes ratio of 7.33 to 1.
MIDEAST STOCKS-Banks weigh on #Qatar, Gulf mostly weak but Dubai firm early on | Reuters
MIDEAST STOCKS-Banks weigh on Qatar, Gulf mostly weak but Dubai firm early on | Reuters:
The Qatar stock market fell early on Wednesday, weighed down by banking shares, while most major Gulf markets slipped as year-end holidays dampened trading volumes.
Qatar’s index, one of the world’s best performing markets last year with a 20.8 percent gain, dropped 0.4 percent with Qatar National Bank falling 1.4 percent and Industries Qatar decreasing 1.2 percent.
But real estate firm United Development Co gained 1.8 percent after saying it sold its stake in Seef Ltd to Qatar Petroleum for 214.4 million riyals ($58.9 million).
The Qatar stock market fell early on Wednesday, weighed down by banking shares, while most major Gulf markets slipped as year-end holidays dampened trading volumes.
Qatar’s index, one of the world’s best performing markets last year with a 20.8 percent gain, dropped 0.4 percent with Qatar National Bank falling 1.4 percent and Industries Qatar decreasing 1.2 percent.
But real estate firm United Development Co gained 1.8 percent after saying it sold its stake in Seef Ltd to Qatar Petroleum for 214.4 million riyals ($58.9 million).
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