Oil Rises as Saudi, Venezuela Supply Cuts Eclipse Boom in U.S. - Bloomberg:
Oil climbed for a second day as dwindling shipments from two of the world’s biggest crude exporters eclipsed another big jump in U.S. supplies.
Futures in New York closed up 1.5 percent, reaching the highest point in a week. The rally came as the International Energy Agency warned that turmoil in Venezuela could disrupt global flows of heavy crude and after Saudi Arabia said it would extend its own cuts. A U.S. Energy Department report showed higher-than-expected domestic inventories but plummeting imports.
The inventories increase was “kind of shocking," said Phil Streible, senior market strategist at RJO Futures in Chicago. “But the import data was much lower than expected. so eventually, we are going to burn off some of that excess."
Wednesday, 13 February 2019
It’s All Going Wrong Again for OPEC: Oil Strategy - Bloomberg
It’s All Going Wrong Again for OPEC: Oil Strategy - Bloomberg:
Even as oil producing states in OPEC and beyond begin implementing the output cuts they agreed in December, the world’s need for their crude is shrinking further, suggesting that they will need to extend the deal through the second half of the year.
The latest forecasts from supply-and-demand studies of the oil industry’s most-watched organizations – the International Energy Agency, the U.S. Energy Information Administration, and the Organization of Petroleum Exporting Countries itself – show the need for OPEC crude diminishing as demand forecasts are trimmed and U.S. supply outlooks are increased.
The industry’s three main agencies are unanimous in reducing their assessments of the volume of oil the world will need from OPEC countries this year compared with what they were forecasting last month. The average level of the reduction from the January forecast is 300,000 barrels a day, that’s about the combined production of OPEC’s two smallest members Equatorial Guinea and Gabon.
Even as oil producing states in OPEC and beyond begin implementing the output cuts they agreed in December, the world’s need for their crude is shrinking further, suggesting that they will need to extend the deal through the second half of the year.
The latest forecasts from supply-and-demand studies of the oil industry’s most-watched organizations – the International Energy Agency, the U.S. Energy Information Administration, and the Organization of Petroleum Exporting Countries itself – show the need for OPEC crude diminishing as demand forecasts are trimmed and U.S. supply outlooks are increased.
The industry’s three main agencies are unanimous in reducing their assessments of the volume of oil the world will need from OPEC countries this year compared with what they were forecasting last month. The average level of the reduction from the January forecast is 300,000 barrels a day, that’s about the combined production of OPEC’s two smallest members Equatorial Guinea and Gabon.
#Saudi court rejects AHAB’s filing under bankruptcy law | Reuters
Saudi court rejects AHAB’s filing under bankruptcy law | Reuters:
A commercial court in Dammam has rejected an application by the conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) to settle its debt under a new Saudi bankruptcy law, AHAB told Reuters on Wednesday.
AHAB was the first high-profile company to file for a settlement under Saudi Arabia’s bankruptcy law, which came into effect in August last year, part of reforms aimed at attracting foreign investment and reducing the economy’s dependence on oil.
It hoped that the filing would help to bring to a conclusion creditor talks that have rumbled on since AHAB and Saad Group, another Saudi conglomerate, defaulted on about $22 billion of debt in 2009.
A commercial court in Dammam has rejected an application by the conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) to settle its debt under a new Saudi bankruptcy law, AHAB told Reuters on Wednesday.
AHAB was the first high-profile company to file for a settlement under Saudi Arabia’s bankruptcy law, which came into effect in August last year, part of reforms aimed at attracting foreign investment and reducing the economy’s dependence on oil.
It hoped that the filing would help to bring to a conclusion creditor talks that have rumbled on since AHAB and Saad Group, another Saudi conglomerate, defaulted on about $22 billion of debt in 2009.
UPDATE 1-Mubadala's venture capital unit to launch $400 mln European fund - exec | Reuters
UPDATE 1-Mubadala's venture capital unit to launch $400 mln European fund - exec | Reuters:
Mubadala Ventures, the venture capital arm of Abu Dhabi’s state-owned Mubadala Investment Company, plans to launch a $400 million European fund this year to focus on the technology sector, a company executive said on Wednesday.
The venture capital unit is also working with international venture capital funds to invest in Abu Dhabi, Ibrahim Ajami, head of Mubadala Ventures, told reporters at a conference in the emirate.
Mubadala’s venture capital arm is replicating its U.S strategy in Europe by launching a $400 million Ventures Fund as well as a fund of funds this year.
Mubadala Ventures, the venture capital arm of Abu Dhabi’s state-owned Mubadala Investment Company, plans to launch a $400 million European fund this year to focus on the technology sector, a company executive said on Wednesday.
The venture capital unit is also working with international venture capital funds to invest in Abu Dhabi, Ibrahim Ajami, head of Mubadala Ventures, told reporters at a conference in the emirate.
Mubadala’s venture capital arm is replicating its U.S strategy in Europe by launching a $400 million Ventures Fund as well as a fund of funds this year.
Merging #Qatar banks to cut more than 150 jobs, Barwa boss to be CEO -sources | Reuters
Merging Qatar banks to cut more than 150 jobs, Barwa boss to be CEO -sources | Reuters:
Qatar’s Barwa Bank and the International Bank of Qatar (IBQ), which last year agreed to merge, plan to cut more than 150 jobs and to appoint Barwa’s boss as chief executive of the combined lender, two sources familiar with the matter said.
The banks reached a final merger agreement late last year to create a lender with total assets of 80 billion riyals ($22 billion).
The combined lender will be rebranded as Lusail Bank, the sources said, adding the integration would begin towards the end of the first quarter. Barwa Bank did not respond to a request for immediate comment. A shake-up has been long mooted in Qatar’s banking system, where 18 local and international commercial banks serve a population of around 2.6 million.
Qatar’s Barwa Bank and the International Bank of Qatar (IBQ), which last year agreed to merge, plan to cut more than 150 jobs and to appoint Barwa’s boss as chief executive of the combined lender, two sources familiar with the matter said.
The banks reached a final merger agreement late last year to create a lender with total assets of 80 billion riyals ($22 billion).
The combined lender will be rebranded as Lusail Bank, the sources said, adding the integration would begin towards the end of the first quarter. Barwa Bank did not respond to a request for immediate comment. A shake-up has been long mooted in Qatar’s banking system, where 18 local and international commercial banks serve a population of around 2.6 million.
Oil gains on #Saudi output cuts; rally limited by U.S. output | Reuters
Oil gains on Saudi output cuts; rally limited by U.S. output | Reuters:
Oil prices rose almost 2 percent on Wednesday after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, but swelling U.S. crude inventories limited the day’s gains.
U.S. crude oil inventories rose last week to the highest since November 2017 as refiners cut runs to the lowest since October 2017, the Energy Information Administration said.
The increase came despite falling net imports, which dropped to the lowest on record, as domestic crude production remained at peak levels for the fifth straight week.
Brent crude futures settled up $1.19, or 1.9 percent, at $63.61 a barrel. The global benchmark touched a session high of $63.98, but pulled back after the EIA data was released.
Oil prices rose almost 2 percent on Wednesday after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, but swelling U.S. crude inventories limited the day’s gains.
U.S. crude oil inventories rose last week to the highest since November 2017 as refiners cut runs to the lowest since October 2017, the Energy Information Administration said.
The increase came despite falling net imports, which dropped to the lowest on record, as domestic crude production remained at peak levels for the fifth straight week.
Brent crude futures settled up $1.19, or 1.9 percent, at $63.61 a barrel. The global benchmark touched a session high of $63.98, but pulled back after the EIA data was released.
EU adds #SaudiArabia, Panama to money control blacklist | ZAWYA MENA Edition
EU adds Saudi Arabia, Panama to money control blacklist | ZAWYA MENA Edition:
The European Commission added Saudi Arabia, Panama and other jurisdictions to a blacklist of nations that pose a threat to the bloc because of lax controls against terrorism financing and money laundering, the EU executive said on Wednesday.
In total 23 jurisdictions are listed. They are Afghanistan, American Samoa, the Bahamas, Botswana, North Korea, Ethiopia, Ghana, Guam, Iran, Iraq, Libya, Nigeria, Pakistan, Panama, Puerto Rico, Samoa, Saudi Arabia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, US Virgin Islands and Yemen.
Apart from reputational damage, inclusion on the list complicates financial relations with the EU. The bloc's banks will have to carry out additional checks on payments involving entities from listed jurisdictions.
The European Commission added Saudi Arabia, Panama and other jurisdictions to a blacklist of nations that pose a threat to the bloc because of lax controls against terrorism financing and money laundering, the EU executive said on Wednesday.
In total 23 jurisdictions are listed. They are Afghanistan, American Samoa, the Bahamas, Botswana, North Korea, Ethiopia, Ghana, Guam, Iran, Iraq, Libya, Nigeria, Pakistan, Panama, Puerto Rico, Samoa, Saudi Arabia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, US Virgin Islands and Yemen.
Apart from reputational damage, inclusion on the list complicates financial relations with the EU. The bloc's banks will have to carry out additional checks on payments involving entities from listed jurisdictions.
Airbus poised to axe A380 as Emirates reviews demand -sources | ZAWYA MENA Edition
Airbus poised to axe A380 as Emirates reviews demand -sources | ZAWYA MENA Edition:
Airbus is nearing a decision to axe production of the world's largest airliner amid a downward revision in demand from the Gulf and is likely to give an update with its full-year earnings on Feb. 14, industry sources and analysts said.
The move to shut production of the A380 superjumbo earlier than expected coincides with a review of purchases of very large aircraft by the plane's biggest customer, Emirates, which has a fleet of 109 superjumbos and 53 left on order.
Due to weaker demand, the Dubai carrier is expected to scale down these purchases and place greater focus on smaller models in a shake-up that could have implications for both Airbus and its U.S. rival Boeing, industry sources said.
Airbus is nearing a decision to axe production of the world's largest airliner amid a downward revision in demand from the Gulf and is likely to give an update with its full-year earnings on Feb. 14, industry sources and analysts said.
The move to shut production of the A380 superjumbo earlier than expected coincides with a review of purchases of very large aircraft by the plane's biggest customer, Emirates, which has a fleet of 109 superjumbos and 53 left on order.
Due to weaker demand, the Dubai carrier is expected to scale down these purchases and place greater focus on smaller models in a shake-up that could have implications for both Airbus and its U.S. rival Boeing, industry sources said.
Mideast Stocks: Banks drag #Qatar to 3-month low, #Saudi gains | ZAWYA MENA Edition
Mideast Stocks: Banks drag Qatar to 3-month low, Saudi gains | ZAWYA MENA Edition:
The Qatar stock market slid to a near three-month low on Wednesday, dragged down by its blue-chip banking shares, while Saudi Arabia crept higher, aided by petrochemicals.
Qatar's index fell for a sixth straight day, declining 1.2 percent, and lenders Masraf Al Rayan and Qatar Islamic Bank dropped by 2.8 percent and 2.6 percent respectively.
Major Middle East petrochemical maker Industries Qatar shed 2.2 percent despite reporting a 52 percent surge in annual net profit.
The Qatar stock market slid to a near three-month low on Wednesday, dragged down by its blue-chip banking shares, while Saudi Arabia crept higher, aided by petrochemicals.
Qatar's index fell for a sixth straight day, declining 1.2 percent, and lenders Masraf Al Rayan and Qatar Islamic Bank dropped by 2.8 percent and 2.6 percent respectively.
Major Middle East petrochemical maker Industries Qatar shed 2.2 percent despite reporting a 52 percent surge in annual net profit.
PCP Capital’s Staveley Likes Mining, Hotels in Middle East – Bloomberg
PCP Capital’s Staveley Likes Mining, Hotels in Middle East – Bloomberg:
Amanda Staveley, founder and chief executive officer at PCP Capital Partners, discusses investment themes she’s seeing a the Milken Institute MENA summit, investment appetite for Saudi Arabian assets, industries that will attract capital into the region, how they’ve prepared for Brexit, where she’s seeing opportunity in the U.K. and foreign direct investment into Saudi Arabia. She speaks on “Bloomberg Markets: European Open.” (Source: Bloomberg)
Amanda Staveley, founder and chief executive officer at PCP Capital Partners, discusses investment themes she’s seeing a the Milken Institute MENA summit, investment appetite for Saudi Arabian assets, industries that will attract capital into the region, how they’ve prepared for Brexit, where she’s seeing opportunity in the U.K. and foreign direct investment into Saudi Arabia. She speaks on “Bloomberg Markets: European Open.” (Source: Bloomberg)
A Class of Funds in Saudi Arabia Is Almost Extinct as IPOs Fade - Bloomberg
A Class of Funds in Saudi Arabia Is Almost Extinct as IPOs Fade - Bloomberg:
Betting on initial public offerings in Saudi Arabia in the past few years has proven to be a bad idea.
Not too long ago, funds focused on buying IPO stocks boomed in the kingdom as regulators implemented reforms aiming at increasing institutional participation in the Arab world’s biggest equities market. In 2015 alone, 16 such pools were created, with total assets approaching 4.9 billion riyals ($1.3 billion). Most of them had a mandate to invest in new stocks sold locally in their first three years of trading.
A fast-forward in time exposes a bleak scenario. More than a third of the funds created in that year have already been liquidated, and total assets under management for those active plunged more than 80 percent to around $207 million. Not a single one of the pools still open has delivered a gain in the past 12 months. That’s a sharp contrast to the overall performance of the main Saudi equities index, which is up 16 percent in the past year.
Betting on initial public offerings in Saudi Arabia in the past few years has proven to be a bad idea.
Not too long ago, funds focused on buying IPO stocks boomed in the kingdom as regulators implemented reforms aiming at increasing institutional participation in the Arab world’s biggest equities market. In 2015 alone, 16 such pools were created, with total assets approaching 4.9 billion riyals ($1.3 billion). Most of them had a mandate to invest in new stocks sold locally in their first three years of trading.
A fast-forward in time exposes a bleak scenario. More than a third of the funds created in that year have already been liquidated, and total assets under management for those active plunged more than 80 percent to around $207 million. Not a single one of the pools still open has delivered a gain in the past 12 months. That’s a sharp contrast to the overall performance of the main Saudi equities index, which is up 16 percent in the past year.
Investcorp, Standard Life to Raise $1 Billion for Gulf Fund - Bloomberg
Investcorp, Standard Life to Raise $1 Billion for Gulf Fund - Bloomberg:
Bahrain’s Investcorp Bank BSC and Standard Life Aberdeen Plc plan to raise $800 million to $1 billion for a fund to invest in infrastructure in the Gulf Cooperation Council.
The venture between the Bahrain-based alternative-assets manager and the Scottish firm’s Aberdeen Standard Investments unit will focus on healthcare, education and utilities. It may also invest in the wider Middle East and Levant.
“The GCC region has always benefited from significant availability of capital from the state,” Investcorp co-Chief Executive Officer Hazem Ben-Gacem said in an interview in Abu Dhabi. “Now with oil at half what it was a few years ago and the ambition of governments to diversify away from oil, the window is opening for private capital to play a bigger role in this area.”
Bahrain’s Investcorp Bank BSC and Standard Life Aberdeen Plc plan to raise $800 million to $1 billion for a fund to invest in infrastructure in the Gulf Cooperation Council.
The venture between the Bahrain-based alternative-assets manager and the Scottish firm’s Aberdeen Standard Investments unit will focus on healthcare, education and utilities. It may also invest in the wider Middle East and Levant.
“The GCC region has always benefited from significant availability of capital from the state,” Investcorp co-Chief Executive Officer Hazem Ben-Gacem said in an interview in Abu Dhabi. “Now with oil at half what it was a few years ago and the ambition of governments to diversify away from oil, the window is opening for private capital to play a bigger role in this area.”
Global oil supply to swamp demand in 2019 despite output cuts: IEA | Reuters
Global oil supply to swamp demand in 2019 despite output cuts: IEA | Reuters:
The global oil market will struggle this year to absorb fast-growing crude supply from outside OPEC, even with the group’s production cuts and U.S. sanctions on Venezuela and Iran, the International Energy Agency said in a report on Wednesday.
The IEA left its demand growth forecast for 2019 unchanged from its last report in January at 1.4 million barrels per day.
“It is supported by lower prices and the start-up of petrochemical projects in China and the U.S. Slowing economic growth will, however, limit any upside,” the agency said.
The global oil market will struggle this year to absorb fast-growing crude supply from outside OPEC, even with the group’s production cuts and U.S. sanctions on Venezuela and Iran, the International Energy Agency said in a report on Wednesday.
The IEA left its demand growth forecast for 2019 unchanged from its last report in January at 1.4 million barrels per day.
“It is supported by lower prices and the start-up of petrochemical projects in China and the U.S. Slowing economic growth will, however, limit any upside,” the agency said.
Oil prices to rise on OPEC's 'shock and awe' output cuts: Goldman Sachs | ZAWYA MENA Edition
Oil prices to rise on OPEC's 'shock and awe' output cuts: Goldman Sachs | ZAWYA MENA Edition:
Larger-than-expected production cuts by some major oil suppliers and falling seasonal crude inventories due to growing demand are set to push up oil prices, Goldman Sachs said.
The U.S. bank expects benchmark Brent crude prices to touch $67.50 per barrel in the second quarter of 2019, up from $63.07 per barrel at 0638 GMT on Wednesday.
The Organization of the Petroleum Exporting Countries (OPEC) this week said it had cut oil production steeply under a global supply deal, curbing output by almost 800,000 barrels per day in January to 30.81 million bpd.
Larger-than-expected production cuts by some major oil suppliers and falling seasonal crude inventories due to growing demand are set to push up oil prices, Goldman Sachs said.
The U.S. bank expects benchmark Brent crude prices to touch $67.50 per barrel in the second quarter of 2019, up from $63.07 per barrel at 0638 GMT on Wednesday.
The Organization of the Petroleum Exporting Countries (OPEC) this week said it had cut oil production steeply under a global supply deal, curbing output by almost 800,000 barrels per day in January to 30.81 million bpd.
Mideast Stocks: Telecom operator Vodafone lifts #Qatar, banks propel #Saudi | ZAWYA MENA Edition
Mideast Stocks: Telecom operator Vodafone lifts Qatar, banks propel Saudi | ZAWYA MENA Edition:
Saudi Arabia's stock market rose in early trading on Wednesday with bank and petrochemical shares gaining on recovering oil prices, while Qatar was lifted mainly by Vodafone Qatar's strong results.
Saudi Arabia's index rose 0.6 percent with Al Rajhi Bank gaining 0.8 percent and petrochemical firm Saudi Basic Industries adding 1.2 percent.
Saudi International Petrochemical (Sipchem) climbed 2 percent after it reported a full-year net profit of 583 million riyals ($155.46 million) from 437.4 million riyals a year earlier.
Saudi Arabia's stock market rose in early trading on Wednesday with bank and petrochemical shares gaining on recovering oil prices, while Qatar was lifted mainly by Vodafone Qatar's strong results.
Saudi Arabia's index rose 0.6 percent with Al Rajhi Bank gaining 0.8 percent and petrochemical firm Saudi Basic Industries adding 1.2 percent.
Saudi International Petrochemical (Sipchem) climbed 2 percent after it reported a full-year net profit of 583 million riyals ($155.46 million) from 437.4 million riyals a year earlier.
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