Trump's Two-Front War on OPEC May Clash With Love of Cheap Oil - Bloomberg:
President Donald Trump may soon need to choose between two recurring fixations: battling OPEC nations, and cheap oil.
After announcing sanctions on Venezuela’s state-run oil company PDVSA this week, the president is now in conflict with two of the cartel’s founding members, having imposed similar measures against Iran late last year. Trump is pressuring the Islamic Republic over its nuclear program, and squeezing Venezuela’s President Nicolas Maduro for fraudulently clinging to power.
Iranian shipments have already slumped by 1.3 million barrels a day, and about 500,000 barrels a day of Venezuelan crude which has been banned by the U.S. will soon need to find new buyers. The overall disruption could be much bigger if America succeeds in choking off Iran’s exports entirely, or if sanctions on Venezuelan oil are applied more broadly, as suggested in a tweet from National Security Adviser John Bolton.
Wednesday, 30 January 2019
Crude Vaults to Yearly High as Saudi Shipments to U.S. Dwindle - Bloomberg
Crude Vaults to Yearly High as Saudi Shipments to U.S. Dwindle - Bloomberg:
Oil prices vaulted above $54 a barrel, the highest since November, as a steep drop in U.S. imports from Saudi Arabia showed OPEC putting its supply cut plans into action.
Futures in New York rose 1.7 percent after the U.S. Energy Information Administration said domestic crude stockpiles rose by about 920,000 barrels last week, less than forecast by industry and private analysts. Imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels a day, the second-lowest in data going back to 2010.
“There’s a lot of good in here, if you’re a market bull,” said Rob Thummel, managing director at Tortoise, a Kansas-based money manager with $16 billion in energy investments. “OPEC’s made it very clear: lower exports of oil are coming to the U.S.”
Oil prices vaulted above $54 a barrel, the highest since November, as a steep drop in U.S. imports from Saudi Arabia showed OPEC putting its supply cut plans into action.
Futures in New York rose 1.7 percent after the U.S. Energy Information Administration said domestic crude stockpiles rose by about 920,000 barrels last week, less than forecast by industry and private analysts. Imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels a day, the second-lowest in data going back to 2010.
“There’s a lot of good in here, if you’re a market bull,” said Rob Thummel, managing director at Tortoise, a Kansas-based money manager with $16 billion in energy investments. “OPEC’s made it very clear: lower exports of oil are coming to the U.S.”
ADCB, UNB shares move in opposite directions post-merger announcement | ZAWYA MENA Edition
ADCB, UNB shares move in opposite directions post-merger announcement | ZAWYA MENA Edition:
Shares in Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) moved in opposite directions on Wednesday, a day after both banks announced that they agreed to merge and for the combined entity to acquire Al Hilal Bank. (Read more here).
In a statement to the exchange, the banks said that ADCB will issue 0.5966 ADCB shares for every UNB share held. The merger is expected to take place within the first six months of the year, subject to regulatory and shareholder approvals.
ADCB’s shares rose 1.12 percent on Wednesday, while UNB’s shares dropped 1.7 percent, dragging Abu Dhabi’s index to close 0.56 percent lower.
Shares in Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) moved in opposite directions on Wednesday, a day after both banks announced that they agreed to merge and for the combined entity to acquire Al Hilal Bank. (Read more here).
In a statement to the exchange, the banks said that ADCB will issue 0.5966 ADCB shares for every UNB share held. The merger is expected to take place within the first six months of the year, subject to regulatory and shareholder approvals.
ADCB’s shares rose 1.12 percent on Wednesday, while UNB’s shares dropped 1.7 percent, dragging Abu Dhabi’s index to close 0.56 percent lower.
#SaudiArabia winds down 15-month anti-corruption campaign | Reuters
Saudi Arabia winds down 15-month anti-corruption campaign | Reuters:
Saudi Arabia has ended a sprawling crackdown on corruption ordered by Crown Prince Mohammed bin Salman that it said had recovered more than $106 billion through settlements with scores of senior princes, ministers and top businessmen.
A royal court statement said the government had summoned 381 people, some as witnesses, under the campaign launched in November 2017, but it provided no names. It said 87 people confessed to charges against them and reached secret settlements that included the forfeiture of real estate, companies, cash and other assets.
The campaign ended as abruptly as it began, despite speculation within the local business community that a new round of arrests was imminent.
Saudi Arabia has ended a sprawling crackdown on corruption ordered by Crown Prince Mohammed bin Salman that it said had recovered more than $106 billion through settlements with scores of senior princes, ministers and top businessmen.
A royal court statement said the government had summoned 381 people, some as witnesses, under the campaign launched in November 2017, but it provided no names. It said 87 people confessed to charges against them and reached secret settlements that included the forfeiture of real estate, companies, cash and other assets.
The campaign ended as abruptly as it began, despite speculation within the local business community that a new round of arrests was imminent.
MIDEAST STOCKS-Dubai Islamic drags #Dubai, Global Telecom lifts Egypt | Reuters
MIDEAST STOCKS-Dubai Islamic drags Dubai, Global Telecom lifts Egypt | Reuters:
Dubai's stock market fell sharply on Wednesday, hurt by a fall in Dubai Islamic Bank, while Egypt rose, partly lifted by Global Telecom Holding rising on the prospect of going private.
The Dubai index dropped 1.1 percent, with Dubai Islamic Bank, the largest Islamic lender in the United Arab Emirates, sliding 4.4 percent in heavy trade, its biggest intra-day loss in nine months.
The bank reported a 15 percent rise in fourth-quarter net profit, but investors were disappointed when it proposed a cash dividend of 35 fils per share for 2018 after 45 fils in 2017, said Marwan Shurrab, head of high net worth and retail equities brokage at AlRamz Capital.
Dubai's stock market fell sharply on Wednesday, hurt by a fall in Dubai Islamic Bank, while Egypt rose, partly lifted by Global Telecom Holding rising on the prospect of going private.
The Dubai index dropped 1.1 percent, with Dubai Islamic Bank, the largest Islamic lender in the United Arab Emirates, sliding 4.4 percent in heavy trade, its biggest intra-day loss in nine months.
The bank reported a 15 percent rise in fourth-quarter net profit, but investors were disappointed when it proposed a cash dividend of 35 fils per share for 2018 after 45 fils in 2017, said Marwan Shurrab, head of high net worth and retail equities brokage at AlRamz Capital.
#Saudi and #Kuwait remain top picks for cautious Mideast funds: poll | ZAWYA MENA Edition
Saudi and Kuwait remain top picks for cautious Mideast funds: poll | ZAWYA MENA Edition:
Middle Eastern funds will invest in Saudi and Kuwaiti stocks this year but remain cautious about other regional markets and are at their least bullish in a January since 2013, according to a Reuters poll.
Saudi Arabia's impending entry into emerging market indexes should mean a $15 billion inflow of "passive" benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.
Kuwait will hear in mid-2019 if MSCI will upgrade it to emerging market status. A positive decision could see its stocks gain immediately although entry wouldn't occur until mid-2020.
Middle Eastern funds will invest in Saudi and Kuwaiti stocks this year but remain cautious about other regional markets and are at their least bullish in a January since 2013, according to a Reuters poll.
Saudi Arabia's impending entry into emerging market indexes should mean a $15 billion inflow of "passive" benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.
Kuwait will hear in mid-2019 if MSCI will upgrade it to emerging market status. A positive decision could see its stocks gain immediately although entry wouldn't occur until mid-2020.
UPDATE 1- #Dubai Investments Park postpones Islamic bonds sale | Reuters
UPDATE 1-Dubai Investments Park postpones Islamic bonds sale | Reuters:
Dubai Investments Park (DIP), a subsidiary of Dubai Investments, has postponed its planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, saying more attractive funding alternatives were available.
DIP, a residential, commercial and industrial development, had mandated Citi, HSBC, Dubai Islamic Bank , Emirates NBD Capital and First Abu Dhabi Bank as lead managers and bookrunners for the planned debt issue, it said last week.
It was planning a five-year sukuk sale to refinance outstanding notes, according to a statement issued on Wednesday by one of the banks leading the deal.
Dubai Investments Park (DIP), a subsidiary of Dubai Investments, has postponed its planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, saying more attractive funding alternatives were available.
DIP, a residential, commercial and industrial development, had mandated Citi, HSBC, Dubai Islamic Bank , Emirates NBD Capital and First Abu Dhabi Bank as lead managers and bookrunners for the planned debt issue, it said last week.
It was planning a five-year sukuk sale to refinance outstanding notes, according to a statement issued on Wednesday by one of the banks leading the deal.
The Middle East's Once-Hot LNG Market Faces a Decade-Long Slump - Bloomberg
The Middle East's Once-Hot LNG Market Faces a Decade-Long Slump - Bloomberg:
The Middle East was a bright spot for global liquefied natural gas demand in 2015. Now imports have plummeted so much that it could take a decade to recover.
Last year’s 37 percent slump and the prolonged negative outlook is in contrast to the region’s two-year LNG demand surge that outpaced global growth, according to BloombergNEF and ship-broker Poten & Partners Inc. data. The Middle East is now expected to make up less than 4 percent of global imports for at least eight years.
There are only five importers -- Egypt, Kuwait, Jordan, the United Arab Emirates and Israel -- of LNG in the Middle East. Bahrain is expected to join the group this year.
The Middle East was a bright spot for global liquefied natural gas demand in 2015. Now imports have plummeted so much that it could take a decade to recover.
Last year’s 37 percent slump and the prolonged negative outlook is in contrast to the region’s two-year LNG demand surge that outpaced global growth, according to BloombergNEF and ship-broker Poten & Partners Inc. data. The Middle East is now expected to make up less than 4 percent of global imports for at least eight years.
There are only five importers -- Egypt, Kuwait, Jordan, the United Arab Emirates and Israel -- of LNG in the Middle East. Bahrain is expected to join the group this year.
Prospects for local currency bonds in #UAE "very interesting" - experts | ZAWYA MENA Edition
Prospects for local currency bonds in UAE "very interesting" - experts | ZAWYA MENA Edition:
The UAE announced that it had passed a federal debt law in October last year, and providing a benchmark yield curve for dirham-denominated debt was one of the reasons given by the governor of the central bank for passing the law.
Speaking at a media roundtable launching a white paper on the MENA debt market held at Nasdaq Dubai's headquarters on Monday, Emirates NBD Asset Management's director of fixed income, Parth Kikani, said: "I think the local currency issuance could be very interesting.
“With this law being passed in the UAE, you could see more local currency issuance in the UAE. So the government forms a local currency curve and the corporates can borrow based on the local currency curve of the government. Since the corporates have local dirham-denominated revenues, it is better for them to borrow in dirham(s).”
The UAE announced that it had passed a federal debt law in October last year, and providing a benchmark yield curve for dirham-denominated debt was one of the reasons given by the governor of the central bank for passing the law.
Speaking at a media roundtable launching a white paper on the MENA debt market held at Nasdaq Dubai's headquarters on Monday, Emirates NBD Asset Management's director of fixed income, Parth Kikani, said: "I think the local currency issuance could be very interesting.
“With this law being passed in the UAE, you could see more local currency issuance in the UAE. So the government forms a local currency curve and the corporates can borrow based on the local currency curve of the government. Since the corporates have local dirham-denominated revenues, it is better for them to borrow in dirham(s).”
#Iran facing the toughest economic situation in 40 years: president | Reuters
Iran facing the toughest economic situation in 40 years: president | Reuters:
Iran’s president said on Wednesday the country was facing its toughest economic situation in 40 years, and the United States, not the government, was to blame.
U.S. President Donald Trump last year pulled out of an international nuclear deal with Iran and re-imposed sanctions.
Workers, including truck drivers, farmers and merchants, have since launched sporadic protests against economic hardships, which have occasionally led to confrontations with security forces.
Iran’s president said on Wednesday the country was facing its toughest economic situation in 40 years, and the United States, not the government, was to blame.
U.S. President Donald Trump last year pulled out of an international nuclear deal with Iran and re-imposed sanctions.
Workers, including truck drivers, farmers and merchants, have since launched sporadic protests against economic hardships, which have occasionally led to confrontations with security forces.
#Dubai Islamic Bank's profit rises 15 pct in fourth quarter | Reuters
Dubai Islamic Bank's profit rises 15 pct in fourth quarter | Reuters:
Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, reported a 15 percent rise in fourth-quarter net profit on Wednesday, in line with forecasts, according to Reuters calculations.
The bank made 1.30 billion dirhams ($354 million) in the three months to Dec. 31, Reuters calculated from financial statements in the absence of a quarterly breakdown. This compares with a profit of 1.13 billion dirhams in the corresponding period of 2017.
The average forecast of three analysts was for DIB to make a quarterly profit of 1.22 billion dirhams, according to Refinitiv data.
Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, reported a 15 percent rise in fourth-quarter net profit on Wednesday, in line with forecasts, according to Reuters calculations.
The bank made 1.30 billion dirhams ($354 million) in the three months to Dec. 31, Reuters calculated from financial statements in the absence of a quarterly breakdown. This compares with a profit of 1.13 billion dirhams in the corresponding period of 2017.
The average forecast of three analysts was for DIB to make a quarterly profit of 1.22 billion dirhams, according to Refinitiv data.
MIDEAST STOCKS-ADCB-UNB merger weighs on #AbuDhabi, #Saudi inches up | Reuters
MIDEAST STOCKS-ADCB-UNB merger weighs on Abu Dhabi, Saudi inches up | Reuters:
Saudi Arabia’s stock market rose on Wednesday, bolstered by petrochemicals, while Abu Dhabi was pulled down by Union National Bank and Abu Dhabi Commercial Bank after announcing a three-way banking merger.
Abu Dhabi’s index slid 0.5, with Abu Dhabi Commercial (ADCB) Bank losing 2 percent and Union National Bank (UNB) dropping 4.5 percent to its biggest intraday loss since May 2017.
ADCB, UNB and Al Hilal Bank agreed a merger to create the third-largest bank in the United Arab Emirates with $114 billion of assets.
Saudi Arabia’s stock market rose on Wednesday, bolstered by petrochemicals, while Abu Dhabi was pulled down by Union National Bank and Abu Dhabi Commercial Bank after announcing a three-way banking merger.
Abu Dhabi’s index slid 0.5, with Abu Dhabi Commercial (ADCB) Bank losing 2 percent and Union National Bank (UNB) dropping 4.5 percent to its biggest intraday loss since May 2017.
ADCB, UNB and Al Hilal Bank agreed a merger to create the third-largest bank in the United Arab Emirates with $114 billion of assets.
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