Oil prices near flat as economic slowdown fears tempered | Reuters:
Oil prices were little changed on Monday as investors shrugged off fears of a global economic slowdown and focused on the prospect of tighter supply and lower U.S. crude inventories ahead.
Brent crude oil futures climbed 30 cents to $67.33 a barrel by 11:56 a.m. EST (1556 GMT), while U.S. West Texas Intermediate (WTI) futures rose 11 cents to $59.15 a barrel.
Crude oil pared earlier losses as the U.S. stock market turned positive.
Monday 25 March 2019
Hedge funds increase appetite for oil: Kemp | Reuters
Hedge funds increase appetite for oil: Kemp | Reuters:
Hedge funds bought another 65 million barrels of petroleum futures and options in the week to March 19, taking total purchases over the last 10 weeks to 384 million barrels, according to reports published on Friday.
The one-week increase in net long positions was the largest since the end of August 2018, a strong bullish signal about the expected direction of prices over the next six months.
Hedge funds and other money managers have boosted their overall bullish position in the six most important derivative contracts linked to crude and fuels prices to 685 million barrels, up from just 302 million on Jan. 8.
Hedge funds bought another 65 million barrels of petroleum futures and options in the week to March 19, taking total purchases over the last 10 weeks to 384 million barrels, according to reports published on Friday.
The one-week increase in net long positions was the largest since the end of August 2018, a strong bullish signal about the expected direction of prices over the next six months.
Hedge funds and other money managers have boosted their overall bullish position in the six most important derivative contracts linked to crude and fuels prices to 685 million barrels, up from just 302 million on Jan. 8.
MIDEAST STOCKS-Egypt hit by sell-off of blue chips, financials lift #Qatar | Reuters
MIDEAST STOCKS-Egypt hit by sell-off of blue chips, financials lift Qatar | Reuters:
Egypt's index fell sharply on Monday, pulled down by its blue-chip shares, while Qatar's index was lifted by its financial stocks.
The Egyptian blue-chip index dropped 1.2 percent, with 26 of its 30 stocks declining. Egyptians were the net sellers of stocks during the session and non-Arab foreigners were the net buyers, according to data on the exchange website.
Egyptian Chemical Industries lost 5 percent and Palm Hills Development declined 4.6 percent. The former said it expects to post profit of 296.8 million Egyptian pounds ($17.21 million)on sales of 3.63 billion Egyptian pounds for the full-year 2019-2020.
Egypt's index fell sharply on Monday, pulled down by its blue-chip shares, while Qatar's index was lifted by its financial stocks.
The Egyptian blue-chip index dropped 1.2 percent, with 26 of its 30 stocks declining. Egyptians were the net sellers of stocks during the session and non-Arab foreigners were the net buyers, according to data on the exchange website.
Egyptian Chemical Industries lost 5 percent and Palm Hills Development declined 4.6 percent. The former said it expects to post profit of 296.8 million Egyptian pounds ($17.21 million)on sales of 3.63 billion Egyptian pounds for the full-year 2019-2020.
Oil prices hit by worries of sharp economic slowdown | ZAWYA MENA Edition
Oil prices hit by worries of sharp economic slowdown | ZAWYA MENA Edition:
Oil prices slipped on Monday, with concerns of a sharp economic slowdown overshadowing support from tighter supply due to OPEC's production cuts and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 36 cents, or 0.54 percent, at $66.67 per barrel at 1200 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were at $58.75 per barrel, down 29 cents, or 0.49 percent.
Both crude oil price benchmarks closed down last week after briefly hitting their highest since November 2018.
Oil prices slipped on Monday, with concerns of a sharp economic slowdown overshadowing support from tighter supply due to OPEC's production cuts and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 36 cents, or 0.54 percent, at $66.67 per barrel at 1200 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were at $58.75 per barrel, down 29 cents, or 0.49 percent.
Both crude oil price benchmarks closed down last week after briefly hitting their highest since November 2018.
Algeria faces economic crunch as oil and gas revenues fall short | Financial Times
Algeria faces economic crunch as oil and gas revenues fall short | Financial Times:
Weeks of protests in Algeria have revealed popular discontent with Abdelaziz Bouteflika, the ailing president. A less visible threat to Algiers is the looming economic crisis, as revenues from the north African country’s oil and gas exports continue to fall short of its expanding needs, politicians and analysts warn.
“The debate is now focused on politics, but the real iceberg is the risk of an economic crisis in the next couple of years and no one has a strategy to tackle this,” said Riccardo Fabiani, Algeria analyst at Energy Aspects, a London-based consultancy. “Foreign reserves are falling very quickly and they probably have less than two years of import cover left.”
The third-biggest natural gas supplier to Europe, Algeria depends on hydrocarbon exports to bring in more than 95 per cent of foreign currency receipts. Oil and gas revenue in 2018 accounted for an estimated 40 per cent of the budget.
Weeks of protests in Algeria have revealed popular discontent with Abdelaziz Bouteflika, the ailing president. A less visible threat to Algiers is the looming economic crisis, as revenues from the north African country’s oil and gas exports continue to fall short of its expanding needs, politicians and analysts warn.
“The debate is now focused on politics, but the real iceberg is the risk of an economic crisis in the next couple of years and no one has a strategy to tackle this,” said Riccardo Fabiani, Algeria analyst at Energy Aspects, a London-based consultancy. “Foreign reserves are falling very quickly and they probably have less than two years of import cover left.”
The third-biggest natural gas supplier to Europe, Algeria depends on hydrocarbon exports to bring in more than 95 per cent of foreign currency receipts. Oil and gas revenue in 2018 accounted for an estimated 40 per cent of the budget.
Who keeps buying California's scarce water? #SaudiArabia | US news | The Guardian
Who keeps buying California's scarce water? Saudi Arabia | US news | The Guardian:
Four hours east of Los Angeles, in a drought-stricken area of a drought-afflicted state, is a small town called Blythe where alfalfa is king. More than half of the town’s 94,000 acres are bushy blue-green fields growing the crop.
Massive industrial storehouses line the southern end of town, packed with thousands upon thousands of stacks of alfalfa bales ready to be fed to dairy cows – but not cows in California’s Central Valley or Montana’s rangelands.
Instead, the alfalfa will be fed to cows in Saudi Arabia.
Four hours east of Los Angeles, in a drought-stricken area of a drought-afflicted state, is a small town called Blythe where alfalfa is king. More than half of the town’s 94,000 acres are bushy blue-green fields growing the crop.
Massive industrial storehouses line the southern end of town, packed with thousands upon thousands of stacks of alfalfa bales ready to be fed to dairy cows – but not cows in California’s Central Valley or Montana’s rangelands.
Instead, the alfalfa will be fed to cows in Saudi Arabia.
Speaking of EM: #Dubai’s Real Estate Slump Is No Blip (Podcast) - Bloomberg
Bloomberg:
Dubai became famous selling glitzy real estate projects on artificial islands to international investors. With those home prices now in the midst of a protracted slump that most analysts predict could continue for at least another year, concerns about spillover effects are growing.
Dubai-based reporters Filipe Pacheco and Matthew Martin speak to Dana El Baltaji about how the emirate’s real estate slump is hitting banks, markets and the wider economy.
Dubai became famous selling glitzy real estate projects on artificial islands to international investors. With those home prices now in the midst of a protracted slump that most analysts predict could continue for at least another year, concerns about spillover effects are growing.
Dubai-based reporters Filipe Pacheco and Matthew Martin speak to Dana El Baltaji about how the emirate’s real estate slump is hitting banks, markets and the wider economy.
#Saudi Market Will Not Correct After MSCI Inclusion, Says Fim Partner’s CEO – Bloomberg
Saudi Market Will Not Correct After MSCI Inclusion, Says Fim Partner’s CEO – Bloomberg:
Hedi Ben Mlouka, chief executive officer and chief investment officer at Fim Partners, discusses how he thinks the GCC markets will perform with their inclusion into some of the global indexes and his outlook for the Saudi consumer. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Hedi Ben Mlouka, chief executive officer and chief investment officer at Fim Partners, discusses how he thinks the GCC markets will perform with their inclusion into some of the global indexes and his outlook for the Saudi consumer. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Oil Steady After Biggest Loss in Three Weeks Amid Economy Fears - Bloomberg
Oil Steady After Biggest Loss in Three Weeks Amid Economy Fears - Bloomberg:
Oil steadied in New York after its biggest loss in three weeks, yet concerns lingered that a slowdown in global economic growth will erode fuel consumption.
West Texas Intermediate futures were little changed near $59 a barrel, after losing 1.6 percent on Friday. A closely watched gauge of U.S. Treasuries inverted for the first time since 2007, a signal a recession may be coming in the world’s largest economy. Some concerns over a new crude glut abated however as drilling rigs in America fell to the lowest in almost a year.
Crude has retreated after reaching a four-month high on Thursday as disappointing global economic data and a lack of resolution to the U.S.-China trade war damped sentiment. The Organization of the Petroleum Exporting Countries and its allies’ commitment to curb output, coupled with supply disruptions in Venezuela and Iran, is stopping prices from falling further.
Oil steadied in New York after its biggest loss in three weeks, yet concerns lingered that a slowdown in global economic growth will erode fuel consumption.
West Texas Intermediate futures were little changed near $59 a barrel, after losing 1.6 percent on Friday. A closely watched gauge of U.S. Treasuries inverted for the first time since 2007, a signal a recession may be coming in the world’s largest economy. Some concerns over a new crude glut abated however as drilling rigs in America fell to the lowest in almost a year.
Crude has retreated after reaching a four-month high on Thursday as disappointing global economic data and a lack of resolution to the U.S.-China trade war damped sentiment. The Organization of the Petroleum Exporting Countries and its allies’ commitment to curb output, coupled with supply disruptions in Venezuela and Iran, is stopping prices from falling further.
UAE's National Bank of Ras Al-Khaimah hires banks for bond: document | ZAWYA MENA Edition
UAE's National Bank of Ras Al-Khaimah hires banks for bond: document | ZAWYA MENA Edition:
The National Bank of Ras Al-Khaimah has hired banks to arrange fixed income investor meetings before a potential U.S. dollar-denominated bond sale, a document issued by one of the banks showed on Monday.
The bank, majority owned by the government of the Ras Al Khaimah emirate in the United Arab Emirates, appointed Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank as joint lead managers and bookrunners.
Investor meetings will start on March 28 and a five-year senior unsecured benchmark deal might follow, subject to market conditions. Benchmark deals are generally meant to be upwards of $500 million.
The National Bank of Ras Al-Khaimah has hired banks to arrange fixed income investor meetings before a potential U.S. dollar-denominated bond sale, a document issued by one of the banks showed on Monday.
The bank, majority owned by the government of the Ras Al Khaimah emirate in the United Arab Emirates, appointed Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank as joint lead managers and bookrunners.
Investor meetings will start on March 28 and a five-year senior unsecured benchmark deal might follow, subject to market conditions. Benchmark deals are generally meant to be upwards of $500 million.
UPDATE 1- #UAE's Shuaa Capital, ADFG mandate banks on merger plan - ADFG | Reuters
UPDATE 1-UAE's Shuaa Capital, ADFG mandate banks on merger plan - ADFG | Reuters:
Shuaa Capital and Abu Dhabi Financial Group (ADFG) have mandated UBS and JPMorgan Chase & Co as advisers on a potential merger between the United Arab Emirates investment firms, an ADFG spokesman said.
Dubai-listed investment bank Shuaa Capital said on Sunday it had started talks on a possible merger with ADFG.
Shuaa said each party has formed a working group, and upon review, working groups will report their recommendations to their respective boards, adding that there is no certainty that a deal will happen.
Shuaa Capital and Abu Dhabi Financial Group (ADFG) have mandated UBS and JPMorgan Chase & Co as advisers on a potential merger between the United Arab Emirates investment firms, an ADFG spokesman said.
Dubai-listed investment bank Shuaa Capital said on Sunday it had started talks on a possible merger with ADFG.
Shuaa said each party has formed a working group, and upon review, working groups will report their recommendations to their respective boards, adding that there is no certainty that a deal will happen.
Oil prices steady amid worries of severe economic slowdown | Reuters
Oil prices steady amid worries of severe economic slowdown | Reuters:
Oil prices were steady on Monday, with concerns of a sharp economic slowdown competing with support from tighter supply due to OPEC’s production cutbacks and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 7 cents, or 0.1 percent, at $66.96 per barrel at 0955 GMT, while U.S. West Texas Intermediate (WTI) futures were unchanged at $59.04 per barrel.
Both crude oil price benchmarks closed down on the week since briefly hitting their highest since November 2018.
Oil prices were steady on Monday, with concerns of a sharp economic slowdown competing with support from tighter supply due to OPEC’s production cutbacks and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 7 cents, or 0.1 percent, at $66.96 per barrel at 0955 GMT, while U.S. West Texas Intermediate (WTI) futures were unchanged at $59.04 per barrel.
Both crude oil price benchmarks closed down on the week since briefly hitting their highest since November 2018.
MIDEAST STOCKS-Financials pull #Saudi, #Qatar lifted by QIIB | Reuters
MIDEAST STOCKS-Financials pull Saudi, Qatar lifted by QIIB | Reuters:
Saudi Arabia’s stock market slipped on Monday, dragged down by financial and petrochemicals shares, while Qatar was lifted by Qatar International Islamic Bank (QIIB) raising its foreign ownership limit.
The Saudi market ended the previous week at its highest in almost four years after its inclusion in the FTSE Russell’s emerging-market index.
The Saudi index fell 0.6 percent, with Al Rajhi Bank losing 0.6 percent and its insurance unit Al Rajhi Takaful plunging 8.9 percent. The latter reported a 7.4 percent drop in its gross written premiums for the full year.
Saudi Arabia’s stock market slipped on Monday, dragged down by financial and petrochemicals shares, while Qatar was lifted by Qatar International Islamic Bank (QIIB) raising its foreign ownership limit.
The Saudi market ended the previous week at its highest in almost four years after its inclusion in the FTSE Russell’s emerging-market index.
The Saudi index fell 0.6 percent, with Al Rajhi Bank losing 0.6 percent and its insurance unit Al Rajhi Takaful plunging 8.9 percent. The latter reported a 7.4 percent drop in its gross written premiums for the full year.
Oil majors and utilities begin battle for power | Financial Times
Oil majors and utilities begin battle for power | Financial Times:
Ten years ago, you knew where you stood with your energy suppliers. Oil companies sold road fuel, while utilities supplied electricity and gas. Today, those old lines of demarcation are blurring: utilities can fill up your car and oil companies want to keep your lights on.
Technological progress and the threat of climate change are forcing both oil companies and utilities to rethink their strategies, and are pushing them into each other’s territory.
The result is set to be a period of intensified competition and instability, as companies that were previously able largely to forget about each other are now forced to battle for dominance.
Ten years ago, you knew where you stood with your energy suppliers. Oil companies sold road fuel, while utilities supplied electricity and gas. Today, those old lines of demarcation are blurring: utilities can fill up your car and oil companies want to keep your lights on.
Technological progress and the threat of climate change are forcing both oil companies and utilities to rethink their strategies, and are pushing them into each other’s territory.
The result is set to be a period of intensified competition and instability, as companies that were previously able largely to forget about each other are now forced to battle for dominance.
The risks of #SaudiArabia’s nuclear power plans | Financial Times
The risks of Saudi Arabia’s nuclear power plans | Financial Times:
In normal circumstances, the decision by any country to improve the efficiency of its energy supplies by investing in new technology would barely be worthy of attention. But Saudi Arabia is not a normal country and the combination of the technology chosen — civil nuclear power — and concerns over the strategy of Crown Prince Mohammed bin Salman has made the Saudi move a cause of debate.
The Saudi plans for nuclear development are not new. Eight years ago a target of building 16 reactors over 20 years was announced. The commitment has been regularly repeated since and updated to a new target of 17 gigawatts of capacity by 2032 or 2040
Dialogues were established with a number of the countries and companies capable of supplying the necessary reactors — including South Korea, Russia, France and China, as well as the US through General Electric and Westinghouse. Various pre-development studies were started. But no construction work has begun and Saudi’s growing electricity needs continue to be met almost entirely by oil and natural gas.
In normal circumstances, the decision by any country to improve the efficiency of its energy supplies by investing in new technology would barely be worthy of attention. But Saudi Arabia is not a normal country and the combination of the technology chosen — civil nuclear power — and concerns over the strategy of Crown Prince Mohammed bin Salman has made the Saudi move a cause of debate.
The Saudi plans for nuclear development are not new. Eight years ago a target of building 16 reactors over 20 years was announced. The commitment has been regularly repeated since and updated to a new target of 17 gigawatts of capacity by 2032 or 2040
Dialogues were established with a number of the countries and companies capable of supplying the necessary reactors — including South Korea, Russia, France and China, as well as the US through General Electric and Westinghouse. Various pre-development studies were started. But no construction work has begun and Saudi’s growing electricity needs continue to be met almost entirely by oil and natural gas.
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