This Is How Much Each OPEC+ Member Needs To Cut | OilPrice.com:
OPEC published on Friday the long-awaited list of oil production quotas for each country in the OPEC+ deal, as it seeks to shore up market confidence that the cartel and allies will do whatever it takes to rebalance the market.
OPEC and its non-OPEC partners led by Russia decided in early December to start a new round of cuts, aiming to lift the price of oil that had started to plummet in October on fears of building oversupply and uncertain demand growth going forward. The OPEC+ deal will be removing a combined 1.2 million bpd off the market in the first half of 2019. Initial reports just after the meeting in Vienna in early December suggested that OPEC and its allies would not be unveiling who is cutting how much under the new deal.
Friday, 18 January 2019
U.S. Could Soon Pump More Crude Than Saudis Can at Their Peak - Bloomberg
U.S. Could Soon Pump More Crude Than Saudis Can at Their Peak - Bloomberg:
America’s journey to preeminence in the global oil trade is about to hit another milestone.
Propelled by the shale-oil boom, the U.S. is already producing more crude than either Russia or Saudi Arabia, who until recently vied for the top spot. By mid-year America will go one better.
At the moment, Saudi Arabia could raise production all the way up to its maximum capacity of 12 million barrels a day, surpassing the 11.8 million daily barrels produced by the U.S. in December, according to the International Energy Agency. Soon even that won’t be enough.
America’s journey to preeminence in the global oil trade is about to hit another milestone.
Propelled by the shale-oil boom, the U.S. is already producing more crude than either Russia or Saudi Arabia, who until recently vied for the top spot. By mid-year America will go one better.
At the moment, Saudi Arabia could raise production all the way up to its maximum capacity of 12 million barrels a day, surpassing the 11.8 million daily barrels produced by the U.S. in December, according to the International Energy Agency. Soon even that won’t be enough.
Oil's Having the Best Start to a Year Since 2001 - Bloomberg
Oil's Having the Best Start to a Year Since 2001 - Bloomberg:
Oil hasn’t started off this strong in 18 years.
After closing out 2018 in free-fall amid fears of a global supply glut and economic slowdown, U.S. crude prices have rebounded more than 18 percent to start this year. That’s the biggest climb over the first 13 trading days since January 2001, according to New York Mercantile Exchange data compiled by Bloomberg.
The swift climb higher has coincided with a steep drop in volatility. After reaching its highest level in more than two years, an index tracking West Texas Intermediate crude options prices has sunk to the lowest since November.
Oil hasn’t started off this strong in 18 years.
After closing out 2018 in free-fall amid fears of a global supply glut and economic slowdown, U.S. crude prices have rebounded more than 18 percent to start this year. That’s the biggest climb over the first 13 trading days since January 2001, according to New York Mercantile Exchange data compiled by Bloomberg.
The swift climb higher has coincided with a steep drop in volatility. After reaching its highest level in more than two years, an index tracking West Texas Intermediate crude options prices has sunk to the lowest since November.
Oil Prices Leap as China Is Said to Seek End of Trade Dispute - Bloomberg
Oil Prices Leap as China Is Said to Seek End of Trade Dispute - Bloomberg:
Oil prices spiked to a six-week high after China was said to offer a ramp-up of imports from the U.S. to settle a trade dispute between the world’s biggest economies.
Futures rose as much as 3.5 percent in New York on Friday after Bloomberg News reported China has proposed a six-year buying spree of American goods. The offer to boost purchases by $1 trillion eased concerns that the dispute will lead to a prolonged slump in energy demand.
Signs of progress on trade “have greased the wheels in commerce globally," Bob Iaccino, chief market strategist at Chicago-based Path Trading Partners, said in an interview. “The perception of diminished demand which was turning up in the economic numbers is turning around, and that’s going to bring the speculators back."
Oil prices spiked to a six-week high after China was said to offer a ramp-up of imports from the U.S. to settle a trade dispute between the world’s biggest economies.
Futures rose as much as 3.5 percent in New York on Friday after Bloomberg News reported China has proposed a six-year buying spree of American goods. The offer to boost purchases by $1 trillion eased concerns that the dispute will lead to a prolonged slump in energy demand.
Signs of progress on trade “have greased the wheels in commerce globally," Bob Iaccino, chief market strategist at Chicago-based Path Trading Partners, said in an interview. “The perception of diminished demand which was turning up in the economic numbers is turning around, and that’s going to bring the speculators back."
Explainer: How pressing is #Lebanon's financial challenge? | Reuters
Explainer: How pressing is Lebanon's financial challenge? | Reuters:
Financial strains in Lebanon have been brought into focus by turbulence on markets where its dollar-denominated sovereign bonds suffered a heavy sell-off last week following comments by the finance minister about the public debt.
The bonds recovered this week on assurances the government is “absolutely not” planning to restructure the debt and is committed to paying its maturing debt and interest payments at predetermined dates.
But the episode has added to debate about Lebanon’s debt sustainability after warnings from politicians, the IMF and World Bank over economic and financial conditions in a country that has suffered years of low economic growth.
Financial strains in Lebanon have been brought into focus by turbulence on markets where its dollar-denominated sovereign bonds suffered a heavy sell-off last week following comments by the finance minister about the public debt.
The bonds recovered this week on assurances the government is “absolutely not” planning to restructure the debt and is committed to paying its maturing debt and interest payments at predetermined dates.
But the episode has added to debate about Lebanon’s debt sustainability after warnings from politicians, the IMF and World Bank over economic and financial conditions in a country that has suffered years of low economic growth.
Bank results spur mild activity in #Dubai stocks
Bank results spur mild activity in Dubai stocks:
Strong results from Emirates NBD spurred mild buying, triggering a part recovery in Dubai index, Emirates NBD closed 1.1 per cent higher at Dh9.20.
The Dubai Financial Market general index closed 0.64 per cent higher at 2,516.81.
“Banks look promising especially having seen the reduction in provisions despite some lost bps in net interest margins as a result of rapidly growing deposits and a somewhat down economic cycle,” Essam Kassabieh, Senior Financial Analyst at Menacorp said.
Strong results from Emirates NBD spurred mild buying, triggering a part recovery in Dubai index, Emirates NBD closed 1.1 per cent higher at Dh9.20.
The Dubai Financial Market general index closed 0.64 per cent higher at 2,516.81.
“Banks look promising especially having seen the reduction in provisions despite some lost bps in net interest margins as a result of rapidly growing deposits and a somewhat down economic cycle,” Essam Kassabieh, Senior Financial Analyst at Menacorp said.
The incentive for KSA to go early to global bond markets | Arab News
The incentive for KSA to go early to global bond markets | Arab News:
Saudi Arabia, and indeed the rest of the Gulf countries, have signaled their intention to tap the international capital markets at record levels in 2019. But there is a risk as the year goes on that those markets will be more demanding, and may charge the issuers more for their services.
The Kingdom was the first one into the global debt markets earlier this month, with a $7.5 billion bond offering that was instantly snapped up by international investors. It was a clear sign of two things: First, that all those international roadshows of last year — especially in the US, the world’s biggest bond market — had paid off; and secondly, that there is still a good appetite for the Kingdom’s financial offerings, which some analysts had suggested would be weakened by the international storm over the murder of journalist Jamal Khashoggi.
Saudi Arabia, and indeed the rest of the Gulf countries, have signaled their intention to tap the international capital markets at record levels in 2019. But there is a risk as the year goes on that those markets will be more demanding, and may charge the issuers more for their services.
The Kingdom was the first one into the global debt markets earlier this month, with a $7.5 billion bond offering that was instantly snapped up by international investors. It was a clear sign of two things: First, that all those international roadshows of last year — especially in the US, the world’s biggest bond market — had paid off; and secondly, that there is still a good appetite for the Kingdom’s financial offerings, which some analysts had suggested would be weakened by the international storm over the murder of journalist Jamal Khashoggi.
QSE index gained 129.53 points last week - The Peninsula Qatar
QSE index gained 129.53 points last week - The Peninsula Qatar:
Qatar Stock Exchange’s (QSE) benchmark index gained 129.53 points, or 1.22 percent, last week when the bourse closed yesterday at 10,787.75 points.
Trading value during last week decreased by 1.30 percent to reach QR1.45bn compared to QR1.47bn.
Trading volume decreased by 31.49 percent to reach 49.22 million shares, as against 71.84 million shares, while the number of transactions fell by 11.37 percent, to reach 33,745 transactions as compared to 38,073 transactions.
Qatar Stock Exchange’s (QSE) benchmark index gained 129.53 points, or 1.22 percent, last week when the bourse closed yesterday at 10,787.75 points.
Trading value during last week decreased by 1.30 percent to reach QR1.45bn compared to QR1.47bn.
Trading volume decreased by 31.49 percent to reach 49.22 million shares, as against 71.84 million shares, while the number of transactions fell by 11.37 percent, to reach 33,745 transactions as compared to 38,073 transactions.
GCC banking consolidation driven by high density, profit fall: Markaz
GCC banking consolidation driven by high density, profit fall: Markaz:
The presence of unusually high number of banks and the fall in profitability linked to low oil price environment have triggered the need for consolidation among GCC banks, Markaz (Kuwait Financial Centre) has said in a report.
GCC countries have witnessed a surge in high-profile merger announcements in recent times, especially in the banking sector. It would also help in scaling up operations and widening the geographic scope for these banking institutions, Markaz said.
Markaz report stated that GCC countries are set to grow at a strong pace in 2019. Combined growth in the region is expected to be at 3% this year. Oman and Kuwait will be the leaders in terms of real GDP growth, registering 5% and 4.1% growth rate in 2019.
The presence of unusually high number of banks and the fall in profitability linked to low oil price environment have triggered the need for consolidation among GCC banks, Markaz (Kuwait Financial Centre) has said in a report.
GCC countries have witnessed a surge in high-profile merger announcements in recent times, especially in the banking sector. It would also help in scaling up operations and widening the geographic scope for these banking institutions, Markaz said.
Markaz report stated that GCC countries are set to grow at a strong pace in 2019. Combined growth in the region is expected to be at 3% this year. Oman and Kuwait will be the leaders in terms of real GDP growth, registering 5% and 4.1% growth rate in 2019.
IEA Sees Oil Demand Growth Defying Economic Slowdown, For Now - Bloomberg
IEA Sees Oil Demand Growth Defying Economic Slowdown, For Now - Bloomberg:
Global oil demand remains on course to be stronger this year than in 2018 as a boost from lower fuel prices counters slowing economic activity, according to the International Energy Agency.
After slumping in the fourth quarter, oil prices “will provide some stimulus to demand,” said the Paris-based agency, which advises most of the world’s major economies on energy policy. Still, as “the mood music in the global economy is not very cheerful,” it acknowledged the outlook could change.
Crude prices remain almost 30 percent below the four-year peak reached in October amid concerns over economic growth in China and the U.S., the world’s two biggest oil users, who remain locked in a trade dispute. To prevent markets tipping into oversupply, the OPEC cartel and its partners have announced substantial production cuts.
Global oil demand remains on course to be stronger this year than in 2018 as a boost from lower fuel prices counters slowing economic activity, according to the International Energy Agency.
After slumping in the fourth quarter, oil prices “will provide some stimulus to demand,” said the Paris-based agency, which advises most of the world’s major economies on energy policy. Still, as “the mood music in the global economy is not very cheerful,” it acknowledged the outlook could change.
Crude prices remain almost 30 percent below the four-year peak reached in October amid concerns over economic growth in China and the U.S., the world’s two biggest oil users, who remain locked in a trade dispute. To prevent markets tipping into oversupply, the OPEC cartel and its partners have announced substantial production cuts.
#Kuwait Investment Authority may increase its investment Britain - Al Rai | ZAWYA MENA Edition
Kuwait Investment Authority may increase its investment Britain - Al Rai | ZAWYA MENA Edition:
Kuwait Investment Authority (KIA) may increase its investment in Britain during the coming period if it finds suitable investment opportunities, Kuwaiti newspaper Al-Rai reported on Thursday citing official sources.
The sources added that the authority contacted its portfolios' managers in the recent period to weigh the situation, adding that there is a consensus that the crisis of a 'no-deal' Brexit would offer "attractive opportunities" that should be seized.
Kuwait Investment Authority (KIA) may increase its investment in Britain during the coming period if it finds suitable investment opportunities, Kuwaiti newspaper Al-Rai reported on Thursday citing official sources.
The sources added that the authority contacted its portfolios' managers in the recent period to weigh the situation, adding that there is a consensus that the crisis of a 'no-deal' Brexit would offer "attractive opportunities" that should be seized.
Oil climbs 1 percent on OPEC output cut, hopes for easing China-U.S. trade tensions | Reuters
Oil climbs 1 percent on OPEC output cut, hopes for easing China-U.S. trade tensions | Reuters:
Oil prices rose 1 percent on Friday after a report from the Organization of the Petroleum Exporting Countries (OPEC) showed its production fell sharply last month, easing fears about prolonged oversupply.
International Brent crude oil futures LCOc1 were up 62 cents, or 1.01 percent, at $61.80 per barrel at 0753 GMT. Brent has risen about 2 percent this week, its third straight week of gains.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $52.65 per barrel, up 58 cents, or 1.11 percent, from their last settlement.
Oil prices rose 1 percent on Friday after a report from the Organization of the Petroleum Exporting Countries (OPEC) showed its production fell sharply last month, easing fears about prolonged oversupply.
International Brent crude oil futures LCOc1 were up 62 cents, or 1.01 percent, at $61.80 per barrel at 0753 GMT. Brent has risen about 2 percent this week, its third straight week of gains.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $52.65 per barrel, up 58 cents, or 1.11 percent, from their last settlement.
Bad bets on oil, gas spark wave of energy-fund closures | Reuters
Bad bets on oil, gas spark wave of energy-fund closures | Reuters:
Energy fund managers took heavy losses last year with wrong-way bets on the prices of oil and natural gas, leading to a wave of closures in the volatile fund sector.
The number of active energy-focused funds fell to just 738 in 2018 through September from about 836 in 2016, according to the latest available data from hedge funds industry tracker Eurekahedge. That’s the lowest number of active funds since 2010.
The number of funds solely focused on oil or gas has tumbled to 179 in 2018 from 194 in 2016. Funds that have suspended operations included high-profile names such as Jamison Capital’s macro fund, T. Boone Pickens’ BP Capital and Andy Hall’s main hedge fund at Astenbeck Capital Management, along with smaller niche funds such as Casement Capital.
Energy fund managers took heavy losses last year with wrong-way bets on the prices of oil and natural gas, leading to a wave of closures in the volatile fund sector.
The number of active energy-focused funds fell to just 738 in 2018 through September from about 836 in 2016, according to the latest available data from hedge funds industry tracker Eurekahedge. That’s the lowest number of active funds since 2010.
The number of funds solely focused on oil or gas has tumbled to 179 in 2018 from 194 in 2016. Funds that have suspended operations included high-profile names such as Jamison Capital’s macro fund, T. Boone Pickens’ BP Capital and Andy Hall’s main hedge fund at Astenbeck Capital Management, along with smaller niche funds such as Casement Capital.
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