Oil Rebound Fizzles as Treasury Denies U.S. Easing China Tariffs - Bloomberg:
Oil’s after-market rebound waned Thursday after the U.S. Treasury Department disputed a report that the Trump administration might ease trade tariffs against China.
Futures in New York climbed as much as 0.5 percent, erasing what had been a losing session, before slipping again. The turnaround came after the Wall Street Journal said Treasury Secretary Steven Mnuchin is a proponent of rolling back the penalties, citing unnamed sources. The Treasury Department denied the report.
“Oil has had a good run" this year, thanks to rising optimism about a trade deal, said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA. “Concerns have eased as a result of the U.S. and China sitting down together."
Thursday, 17 January 2019
Russia Aims to Speed Up Oil Output Cuts as Saudis Criticize Pace - Bloomberg
Russia Aims to Speed Up Oil Output Cuts as Saudis Criticize Pace - Bloomberg:
Russia is aiming to accelerate the pace of oil production cuts after its reductions drew criticism from Saudi Arabia.
“Of course, we will try to make the cuts faster,” Energy Minister Alexander Novak told reporters in Belgrade, Serbia. “We have our limitations of a technological nature, yet we will aim to reach the levels we agreed on.”
Novak’s comments come just days after Saudi Energy Minister Khalid Al-Falih said Russia’s production curbs have “started slower than I like.” The country’s output level, along with that of Saudi Arabia, is crucial in ensuring the success of the Organization of Petroleum Exporting Countries and its allies’ plan of taking oil out of the market to ensure higher prices.
Russia is aiming to accelerate the pace of oil production cuts after its reductions drew criticism from Saudi Arabia.
“Of course, we will try to make the cuts faster,” Energy Minister Alexander Novak told reporters in Belgrade, Serbia. “We have our limitations of a technological nature, yet we will aim to reach the levels we agreed on.”
Novak’s comments come just days after Saudi Energy Minister Khalid Al-Falih said Russia’s production curbs have “started slower than I like.” The country’s output level, along with that of Saudi Arabia, is crucial in ensuring the success of the Organization of Petroleum Exporting Countries and its allies’ plan of taking oil out of the market to ensure higher prices.
#Saudi Bonds to Join JPMorgan Index in $119 Billion Gulf Addition - Bloomberg
Saudi Bonds to Join JPMorgan Index in $119 Billion Gulf Addition - Bloomberg:
Saudi Arabia and four other Gulf nations will join JPMorgan Chase & Co.’s emerging-market bond indexes this month, potentially paving the way for billions of dollars in inflows into the securities.
The debt from the world’s biggest oil-exporting nation along with Qatar, the United Arab Emirates, Bahrain and Kuwait will represent about 11.8 percent of the EMBI Global Diversified Index and 12 percent of the EMBI Global beginning Jan. 31, according to JPMorgan. The indexes will track notes from 15 eligible issuers with a face value of about $119 billion.
"This provides more technical support to bond issuance for sovereigns in the region," said Shamaila Khan, the director of emerging-market debt at AllianceBernstein in New York. The risk return profiles in Saudi Arabia, Qatar, the U.A.E. and Bahrain look attractive, she said.
Saudi Arabia and four other Gulf nations will join JPMorgan Chase & Co.’s emerging-market bond indexes this month, potentially paving the way for billions of dollars in inflows into the securities.
The debt from the world’s biggest oil-exporting nation along with Qatar, the United Arab Emirates, Bahrain and Kuwait will represent about 11.8 percent of the EMBI Global Diversified Index and 12 percent of the EMBI Global beginning Jan. 31, according to JPMorgan. The indexes will track notes from 15 eligible issuers with a face value of about $119 billion.
"This provides more technical support to bond issuance for sovereigns in the region," said Shamaila Khan, the director of emerging-market debt at AllianceBernstein in New York. The risk return profiles in Saudi Arabia, Qatar, the U.A.E. and Bahrain look attractive, she said.
OPEC cuts offset headwinds from slowing economy: Kemp | Reuters
OPEC cuts offset headwinds from slowing economy: Kemp | Reuters:
Oil traders seem increasingly convinced OPEC’s prompt action in cutting production will be enough to offset the impact of rising shale production and slowing global growth.
Brent futures prices have stabilized around $60 per barrel in recent sessions, well below the peak of over $85 at the start of October, but significantly higher than the trough of less than $50 in late December.
More importantly, Brent’s six-month calendar spread has strengthened from a contango (discount) of almost $1.80 per barrel to just 35 cents over the same period.
Oil traders seem increasingly convinced OPEC’s prompt action in cutting production will be enough to offset the impact of rising shale production and slowing global growth.
Brent futures prices have stabilized around $60 per barrel in recent sessions, well below the peak of over $85 at the start of October, but significantly higher than the trough of less than $50 in late December.
More importantly, Brent’s six-month calendar spread has strengthened from a contango (discount) of almost $1.80 per barrel to just 35 cents over the same period.
Before start of new oil pact, OPEC made progress averting glut | Reuters
Before start of new oil pact, OPEC made progress averting glut | Reuters:
OPEC cut oil output sharply in December before a new accord to limit supply took effect, it said on Thursday, suggesting that producers have made a strong start to averting a glut in 2019 as a slowing economy curbs demand.
The Organization of the Petroleum Exporting Countries said in a monthly report that its oil output fell by 751,000 barrels per day (bpd) in December to 31.58 million bpd, the biggest month-on-month drop in almost two years.
Worried by a drop in oil prices and rising supplies, OPEC and allies including Russia agreed in December to return to production cuts in 2019. They pledged to lower output by 1.2 million bpd, of which OPEC’s share is 800,000 bpd.
OPEC cut oil output sharply in December before a new accord to limit supply took effect, it said on Thursday, suggesting that producers have made a strong start to averting a glut in 2019 as a slowing economy curbs demand.
The Organization of the Petroleum Exporting Countries said in a monthly report that its oil output fell by 751,000 barrels per day (bpd) in December to 31.58 million bpd, the biggest month-on-month drop in almost two years.
Worried by a drop in oil prices and rising supplies, OPEC and allies including Russia agreed in December to return to production cuts in 2019. They pledged to lower output by 1.2 million bpd, of which OPEC’s share is 800,000 bpd.
MIDEAST STOCKS-Corporate earnings boost most Gulf markets; Egypt edges lower | Reuters
MIDEAST STOCKS-Corporate earnings boost most Gulf markets; Egypt edges lower | Reuters:
Dubai's stock market rose on Thursday, buoyed by heavyweight constituents, with most Gulf markets lifted by corporate earnings announcements.
The Dubai index added 0.6 percent as lender Emirates NBD rose by 1.1 percent and developer Emaar Properties advanced by 1.3 percent.
Emirates NBD, Dubai's largest bank, reported a 10 percent gain in fourth-quarter net profit after loan growth and improved margins offset higher expenses and a drop to investment securities income.
Dubai's stock market rose on Thursday, buoyed by heavyweight constituents, with most Gulf markets lifted by corporate earnings announcements.
The Dubai index added 0.6 percent as lender Emirates NBD rose by 1.1 percent and developer Emaar Properties advanced by 1.3 percent.
Emirates NBD, Dubai's largest bank, reported a 10 percent gain in fourth-quarter net profit after loan growth and improved margins offset higher expenses and a drop to investment securities income.
Opec forecasts fall in crude demand on global imbalance | Financial Times
Opec forecasts fall in crude demand on global imbalance | Financial Times:
Opec expects demand for the cartel’s crude in 2019 at almost 1m barrels a day less than last year as supply is expected to outweigh demand, something that has forced global producers to enact output curbs.
In its monthly oil market report, Opec said production from outside of the cartel is forecast to grow by a robust 2.1m b/d this year — a small downward revision — to average almost 64.2m b/d.
US production at record levels combined with concerns about global oil demand growth, amid anxiety about the fallout of the US-China trade spat, has helped to send oil lower in recent weeks.
Opec expects demand for the cartel’s crude in 2019 at almost 1m barrels a day less than last year as supply is expected to outweigh demand, something that has forced global producers to enact output curbs.
In its monthly oil market report, Opec said production from outside of the cartel is forecast to grow by a robust 2.1m b/d this year — a small downward revision — to average almost 64.2m b/d.
US production at record levels combined with concerns about global oil demand growth, amid anxiety about the fallout of the US-China trade spat, has helped to send oil lower in recent weeks.
Air Arabia files legal case against #Abraaj founder | Financial Times
Air Arabia files legal case against Abraaj founder | Financial Times:
Air Arabia has launched legal proceedings against Abraaj founder Arif Naqvi, the first case brought by a publicly listed company in relation to the collapse of the Dubai-based private equity group.
The Sharjah-based low-cost airline in an exchange filing to the Dubai market said it had filed a misdemeanour case against Mr Naqvi, following arbitration measures taken by Air Arabia last year.
Air Arabia said that while the issue had no impact on its operations, it remained “committed to protect its investment and business interest”.
Air Arabia has launched legal proceedings against Abraaj founder Arif Naqvi, the first case brought by a publicly listed company in relation to the collapse of the Dubai-based private equity group.
The Sharjah-based low-cost airline in an exchange filing to the Dubai market said it had filed a misdemeanour case against Mr Naqvi, following arbitration measures taken by Air Arabia last year.
Air Arabia said that while the issue had no impact on its operations, it remained “committed to protect its investment and business interest”.
Oil's Dealmaking 'Sun King' Returns: the New Life of John Browne - Bloomberg
Oil's Dealmaking 'Sun King' Returns: the New Life of John Browne - Bloomberg:
John Browne’s return to the top of an oil company started with a phone call from a Russian oligarch who had $10 billion burning a hole in his pocket.
“Mikhail Fridman said: ‘Would you like to invest some money for me?”’ Browne recalled in an interview, relaxing in a white chair in his characteristically stylish London office. “It was very attractive.”
Browne, the consummate deal-making CEO who turned Britain’s BP Plc into a global oil giant, already shared a very profitable history with Fridman. In the early 2000s, they put together Russian oil producer TNK with BP’s assets in the country to form a hugely lucrative joint venture. When it was bought out by state oil company Rosneft Oil Co. PJSC in 2013, Fridman came away with a pile of cash.
John Browne’s return to the top of an oil company started with a phone call from a Russian oligarch who had $10 billion burning a hole in his pocket.
“Mikhail Fridman said: ‘Would you like to invest some money for me?”’ Browne recalled in an interview, relaxing in a white chair in his characteristically stylish London office. “It was very attractive.”
Browne, the consummate deal-making CEO who turned Britain’s BP Plc into a global oil giant, already shared a very profitable history with Fridman. In the early 2000s, they put together Russian oil producer TNK with BP’s assets in the country to form a hugely lucrative joint venture. When it was bought out by state oil company Rosneft Oil Co. PJSC in 2013, Fridman came away with a pile of cash.
GCC Equities Review: Inclusion stories will continue to drive #Kuwait's bourse in 2019 | ZAWYA MENA Edition
GCC Equities Review: Inclusion stories will continue to drive Kuwait's bourse in 2019 | ZAWYA MENA Edition:
Like most other markets in the Gulf, Kuwait reported lower traded values on its stock market in 2018 than in the previous year, with research from Kuwait Asset Management Company (KAMCO) stating the values declined by 27.5 percent to $13.7 billion.
Yet Faisal Hasan, the head of research at KAMCO, said there were mitigating factors - not least the announcement in September 2017 that the market would be added to FTSE Russell's Emerging Market index, which drove volumes higher in the prior year.
And although daily volumes were lower at the start of the year, there was strong trading activity at the end as the FTSE index inclusion actually happened. According to Bahrain-based investment bank SICO, average daily turnover for Kuwait's market reached $87 million in December 2018, compared with $32 million per day in the same month in 2017.
Like most other markets in the Gulf, Kuwait reported lower traded values on its stock market in 2018 than in the previous year, with research from Kuwait Asset Management Company (KAMCO) stating the values declined by 27.5 percent to $13.7 billion.
Yet Faisal Hasan, the head of research at KAMCO, said there were mitigating factors - not least the announcement in September 2017 that the market would be added to FTSE Russell's Emerging Market index, which drove volumes higher in the prior year.
And although daily volumes were lower at the start of the year, there was strong trading activity at the end as the FTSE index inclusion actually happened. According to Bahrain-based investment bank SICO, average daily turnover for Kuwait's market reached $87 million in December 2018, compared with $32 million per day in the same month in 2017.
Strong public spending helps lift profits at National Bank of #Kuwait | Reuters
Strong public spending helps lift profits at National Bank of Kuwait | Reuters:
National Bank of Kuwait (NBK) , the Gulf Arab state’s largest commercial lender, reported a 17 percent jump in fourth-quarter net profit on Thursday, and a rise in annual profit, due to strong growth in business volumes and improved margins.
Kuwaiti banks have benefited from strong government spending, which has helped lift corporate borrowing, and rises in interest rates and NBK joins a string of Gulf banks that have reported stronger profits this week.
The bank said it made a net profit of 98.3 million dinars ($324 million) in the three months to Dec. 31, compared to 84.0 million dinars a year earlier and beating a forecast by EFG Hermes for a quarterly net profit of 95.0 million dinars.
National Bank of Kuwait (NBK) , the Gulf Arab state’s largest commercial lender, reported a 17 percent jump in fourth-quarter net profit on Thursday, and a rise in annual profit, due to strong growth in business volumes and improved margins.
Kuwaiti banks have benefited from strong government spending, which has helped lift corporate borrowing, and rises in interest rates and NBK joins a string of Gulf banks that have reported stronger profits this week.
The bank said it made a net profit of 98.3 million dinars ($324 million) in the three months to Dec. 31, compared to 84.0 million dinars a year earlier and beating a forecast by EFG Hermes for a quarterly net profit of 95.0 million dinars.
Flydubai taps banks for $300 million loan: sources | Reuters
Flydubai taps banks for $300 million loan: sources | Reuters:
State-owned Flydubai has approached banks for a $300 million syndicated loan, sources familiar with the matter said.
The debt facility is needed for aircraft pre-delivery payments, said the sources, who did not want to be named because the matter is private.
A flydubai spokeswoman said: “we are always looking at ways to further diversify our sources of funding and when we have a new announcement to make it will be made at the appropriate time.”
State-owned Flydubai has approached banks for a $300 million syndicated loan, sources familiar with the matter said.
The debt facility is needed for aircraft pre-delivery payments, said the sources, who did not want to be named because the matter is private.
A flydubai spokeswoman said: “we are always looking at ways to further diversify our sources of funding and when we have a new announcement to make it will be made at the appropriate time.”
#Saudi's NCB set to pick JPMorgan to advise on bank merger talks: sources | Reuters
Saudi's NCB set to pick JPMorgan to advise on bank merger talks: sources | Reuters:
Saudi Arabia’s biggest lender, National Commercial Bank 1180.SE, is set to pick JPMorgan (JPM.N) to advise on its merger talks with smaller rival Riyad Bank 1010.SE, several sources familiar with the matter said.
NCB, the kingdom’s biggest lender by assets, and Riyad Bank said in December they have begun preliminary discussions to merge, in a move that would further extend NCB’s lead over its closest rivals by boosting its assets by almost a third to $183 billion).
NCB was not immediately available to comment, while JPMorgan declined to comment. Reuters reported on Monday that Riyad Bank has chosen Goldman Sachs (GS.N) for an advisory role.
Saudi Arabia’s biggest lender, National Commercial Bank 1180.SE, is set to pick JPMorgan (JPM.N) to advise on its merger talks with smaller rival Riyad Bank 1010.SE, several sources familiar with the matter said.
NCB, the kingdom’s biggest lender by assets, and Riyad Bank said in December they have begun preliminary discussions to merge, in a move that would further extend NCB’s lead over its closest rivals by boosting its assets by almost a third to $183 billion).
NCB was not immediately available to comment, while JPMorgan declined to comment. Reuters reported on Monday that Riyad Bank has chosen Goldman Sachs (GS.N) for an advisory role.
Oil's 'Fair Price' Seen at $55 to $60 for Now, Arqaam Capital Says – Bloomberg
Oil's 'Fair Price' Seen at $55 to $60 for Now, Arqaam Capital Says – Bloomberg:
Abdul Kadir Hussain, the head of fixed income at Arqaam Capital, talks about oil prices and the implications for Saudi Arabia's budget. He also discusses Saudi bond issuance, and the outlook for emerging-market bonds. He speaks with Manus Cranny with "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Abdul Kadir Hussain, the head of fixed income at Arqaam Capital, talks about oil prices and the implications for Saudi Arabia's budget. He also discusses Saudi bond issuance, and the outlook for emerging-market bonds. He speaks with Manus Cranny with "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Booming #Qatar- #Turkey trade to hit $2 billion for 2018 as Gulf rift drags on | Reuters
Booming Qatar-Turkey trade to hit $2 billion for 2018 as Gulf rift drags on | Reuters:
Trade between Qatar and Turkey is expected to have hit $2 billion in 2018, a Turkish official said, up 54 percent from the previous last year and underscoring Ankara’s solidified role as a top ally to Qatar amid a political rift in the Gulf region.
Ankara has emerged as one of Qatar’s top partners since a Saudi Arabia-led bloc launched a trade and diplomatic boycott of the tiny Gulf state in 2017, sending additional troops and food to shore up Qatar’s needs just after it began.
Saudi Arabia, United Arab Emirates, Bahrain, and Egypt accuse Qatar of supporting terrorism. Doha denies the charge and says the boycott aims to infringe on its sovereignty.
Trade between Qatar and Turkey is expected to have hit $2 billion in 2018, a Turkish official said, up 54 percent from the previous last year and underscoring Ankara’s solidified role as a top ally to Qatar amid a political rift in the Gulf region.
Ankara has emerged as one of Qatar’s top partners since a Saudi Arabia-led bloc launched a trade and diplomatic boycott of the tiny Gulf state in 2017, sending additional troops and food to shore up Qatar’s needs just after it began.
Saudi Arabia, United Arab Emirates, Bahrain, and Egypt accuse Qatar of supporting terrorism. Doha denies the charge and says the boycott aims to infringe on its sovereignty.
Mideast Stocks: Blue chips lift #Dubai, rest of Gulf mixed | ZAWYA MENA Edition
Mideast Stocks: Blue chips lift Dubai, rest of Gulf mixed | ZAWYA MENA Edition:
The Dubai stock market rose in early trading on Thursday, helped by its blue-chip stocks, while other major Middle Eastern markets were mixed after corporate earnings announcements.
In Dubai, the index added 0.4 percent, boosted by its blue chips Emaar Properties and Emirates NBD which rose 1 percent and 0.4 percent, respectively.
Emirates NBD, Dubai's largest bank, reported a 10 percent gain in its fourth-quarter net profit as loan growth and improved margins offset lower income from investment securities and higher expenses.
The Dubai stock market rose in early trading on Thursday, helped by its blue-chip stocks, while other major Middle Eastern markets were mixed after corporate earnings announcements.
In Dubai, the index added 0.4 percent, boosted by its blue chips Emaar Properties and Emirates NBD which rose 1 percent and 0.4 percent, respectively.
Emirates NBD, Dubai's largest bank, reported a 10 percent gain in its fourth-quarter net profit as loan growth and improved margins offset lower income from investment securities and higher expenses.
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