Geopolitical dangers abound for global oil supply | Financial Times:
As crude prices collapsed in the fourth quarter last year, traders questioned the effectiveness of supply cuts led by Saudi Arabia and Russia, as US shale output boomed while uncertainty mounted over the effects of the US-China trade spat on global demand.
Brent crude has since recovered but that negative narrative remains, capping the price at about $60 a barrel. However, traders should not forget that volatile production from Opec countries such as Iran, Libya, Nigeria and Venezuela, could easily propel prices the other way.
Market watchers are keeping an eye on US sanctions against Iran’s oil sector, for example, that have shrunk exports by 60 per cent since last spring to about 1.1m barrels a day. This slide took place even as big buyers of Tehran’s oil were issued allowances to continue some crude purchases. The world is now watching for what happens in May when these waivers expire and if further falls in Iran’s supply loom. An erratic relationship between the US and Saudi Arabia — Iran’s regional arch rival — could only lead to more unpredictability.
Saturday, 19 January 2019
Oil Gloom Turns to Boom as China and Fed Allay Worst Fears - Bloomberg
Oil Gloom Turns to Boom as China and Fed Allay Worst Fears - Bloomberg:
Investors are the most optimistic on oil in two months as the worst fears that roiled markets at the end of the year start to dissipate.
Hedge funds boosted their net wagers on rising Brent crude prices by 9 percent in the week ended Jan. 15, mostly because they continued to unwind a short-selling spree from the end of 2018, data from the ICE Futures Europe exchange show.
The shift in sentiment culminated with the global benchmark closing at its highest in eight weeks on Friday after China was said to propose a ramp-up in imports from the U.S. to end a trade war between the world’s two largest economies. Signs from the U.S. Federal Reserve that it won’t rush to raise interest rates have also spurred investors to reverse bets that oil would fall while the dollar would rise.
Investors are the most optimistic on oil in two months as the worst fears that roiled markets at the end of the year start to dissipate.
Hedge funds boosted their net wagers on rising Brent crude prices by 9 percent in the week ended Jan. 15, mostly because they continued to unwind a short-selling spree from the end of 2018, data from the ICE Futures Europe exchange show.
The shift in sentiment culminated with the global benchmark closing at its highest in eight weeks on Friday after China was said to propose a ramp-up in imports from the U.S. to end a trade war between the world’s two largest economies. Signs from the U.S. Federal Reserve that it won’t rush to raise interest rates have also spurred investors to reverse bets that oil would fall while the dollar would rise.
#AbuDhabi's reserves, allocations stable in October, November | ZAWYA MENA Edition
Abu Dhabi's reserves, allocations stable in October, November | ZAWYA MENA Edition:
UAE banks' reserves and allocations were stable during October and November 2018 in yet a new testament to the resilience of the banking sector.
According to the Central Bank of the United Arab Emirates' statistics, total assets held by UAE banks jumped to AEE2.854 trillion by the end of November, a growth of AED166 billion over the same month in 2017.
Reserve requirements across all UAE-based banks stood at AED121.8 billion during the two monitored months while combined private and public allocations reached AED123.2 billion during the same period.
UAE banks' reserves and allocations were stable during October and November 2018 in yet a new testament to the resilience of the banking sector.
According to the Central Bank of the United Arab Emirates' statistics, total assets held by UAE banks jumped to AEE2.854 trillion by the end of November, a growth of AED166 billion over the same month in 2017.
Reserve requirements across all UAE-based banks stood at AED121.8 billion during the two monitored months while combined private and public allocations reached AED123.2 billion during the same period.
Senator Graham says U.S.-Saudi cannot move on until prince 'dealt with' | Reuters
Senator Graham says U.S.-Saudi cannot move on until prince 'dealt with' | Reuters:
Republican U.S. Senator Lindsey Graham said on Saturday the relationship between the United States and Saudi Arabia cannot move forward until Saudi Crown Prince Mohammed bin Salman is “dealt with”, without being more specific.
Speaking in Ankara a day after meeting with Turkish President Tayyip Erdogan, Graham also said Congress will reintroduce sanctions against those involved in the killing of Saudi journalist Jamal Khashoggi.
“The relationship between the U.S. and Saudi Arabia cannot move forward until Crown Prince Mohammed bin Salman is dealt with,” Graham said.
Republican U.S. Senator Lindsey Graham said on Saturday the relationship between the United States and Saudi Arabia cannot move forward until Saudi Crown Prince Mohammed bin Salman is “dealt with”, without being more specific.
Speaking in Ankara a day after meeting with Turkish President Tayyip Erdogan, Graham also said Congress will reintroduce sanctions against those involved in the killing of Saudi journalist Jamal Khashoggi.
“The relationship between the U.S. and Saudi Arabia cannot move forward until Crown Prince Mohammed bin Salman is dealt with,” Graham said.
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