Oil hovers near 6-month peak as rising US crude stockpiles rise:
Oil prices steadied on Wednesday near six-month highs after data that showed U.S. stockpiles rose to their highest since October 2017, countering fears of tight supply resulting from OPEC output cuts and U.S. sanctions on Venezuela and Iran.
U.S. West Texas Intermediate crude futures settled 41 cents lower at $65.89 per barrel, down more than half a percent. The contract hit $66.60 a barrel on Tuesday, highest since Oct. 31.
Brent crude futures rose 6 cent to $74.57 per barrel, eking out a new six-month closing high. The international benchmark reached $74.73 a barrel on Tuesday, its highest intraday level since Nov. 1.
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Wednesday 24 April 2019
#Saudi financial sector shows off wares to global audience | Arab News
Saudi financial sector shows off wares to global audience | Arab News:
At lunchtime on Tuesday, the headcount of attendees for Saudi Arabia’s latest international financial extravaganza stood at 3,400, and rising. By the time you read this in print or online, it will probably have topped the 4,000 mark and still heading upward.
Organizers at the Financial Sector Conference, which opens in the world-renowned Ritz-Carlton conference hall in Riyadh on Wednesday morning, said informally that some 3,400 attendees had signed up for the two-day showcase of the Kingdom’s financial industry, and that more were registering at an impressive rate.
This is the first time Saudi Arabia has specifically highlighted the progress its financial sector has made within the Vision 2030 strategy to diversify its economy away from oil dependency. Of course, finance was a big feature of the Future Investment Initiative (FII) held in successive years at the same venue, which earned the epithet “Davos in the desert,” but the Kingdom’s policymakers obviously felt that finance was so important to the overall Vision that it needed its own event.
At lunchtime on Tuesday, the headcount of attendees for Saudi Arabia’s latest international financial extravaganza stood at 3,400, and rising. By the time you read this in print or online, it will probably have topped the 4,000 mark and still heading upward.
Organizers at the Financial Sector Conference, which opens in the world-renowned Ritz-Carlton conference hall in Riyadh on Wednesday morning, said informally that some 3,400 attendees had signed up for the two-day showcase of the Kingdom’s financial industry, and that more were registering at an impressive rate.
This is the first time Saudi Arabia has specifically highlighted the progress its financial sector has made within the Vision 2030 strategy to diversify its economy away from oil dependency. Of course, finance was a big feature of the Future Investment Initiative (FII) held in successive years at the same venue, which earned the epithet “Davos in the desert,” but the Kingdom’s policymakers obviously felt that finance was so important to the overall Vision that it needed its own event.
Aramco's bond is 'only the beginning', #Saudi energy minister says - Reuters
Aramco's bond is 'only the beginning', Saudi energy minister says - Reuters:
Saudi Aramco, the world’s biggest oil producer, will remain active in the debt markets after its debut $12 billion bond earlier this month, which was “only the beginning”, Saudi Energy Minister Khalid al-Falih said on Wednesday.
Falih, speaking at a financial conference in Riyadh, also said Aramco would access the equity markets earlier than expected after the company gained exposure among investors through the bond sale.
Many saw the debt deal as a relationship-building exercise with international investors ahead of Aramco’s planned initial public offering, aimed at raising money for the government as Saudi Arabia looks to cut its budget deficit and diversify its economy.
Saudi Aramco, the world’s biggest oil producer, will remain active in the debt markets after its debut $12 billion bond earlier this month, which was “only the beginning”, Saudi Energy Minister Khalid al-Falih said on Wednesday.
Falih, speaking at a financial conference in Riyadh, also said Aramco would access the equity markets earlier than expected after the company gained exposure among investors through the bond sale.
Many saw the debt deal as a relationship-building exercise with international investors ahead of Aramco’s planned initial public offering, aimed at raising money for the government as Saudi Arabia looks to cut its budget deficit and diversify its economy.
#Saudi Bourse Chief Sees Foreign Bets in Market Soaring - Bloomberg
Saudi Bourse Chief Sees Foreign Bets in Market Soaring - Bloomberg:
The chief of Saudi Arabia’s stock exchange predicts ownership of equities by foreigners will triple by 2022, driven by flows from index trackers, as the country awaits the listing of its crown-jewel, Saudi Aramco.
“Since we opened up the market, we wanted to make sure we have enough companies, diversified sectors and industries,” Khalid Al Hussan, chief executive officer of the $573 billion Saudi stock exchange, said in an interview at a conference in Riyadh on Wednesday. “We are ready for the Aramco IPO, but as they change their plans, it gives more time for the exchange to develop.”
Foreigners are net buyers of about $4.3 billion in Saudi shares this year, as they anticipate the upgrade of the country within emerging-market benchmarks by MSCI Inc. and FTSE Russell. International investors will double their estimated holdings to 10 percent of the market by 2020, rising to 15 percent by 2022, Al Hussan estimates. They were initially allowed to trade shares directly in Riyadh about four years ago.
The chief of Saudi Arabia’s stock exchange predicts ownership of equities by foreigners will triple by 2022, driven by flows from index trackers, as the country awaits the listing of its crown-jewel, Saudi Aramco.
“Since we opened up the market, we wanted to make sure we have enough companies, diversified sectors and industries,” Khalid Al Hussan, chief executive officer of the $573 billion Saudi stock exchange, said in an interview at a conference in Riyadh on Wednesday. “We are ready for the Aramco IPO, but as they change their plans, it gives more time for the exchange to develop.”
Foreigners are net buyers of about $4.3 billion in Saudi shares this year, as they anticipate the upgrade of the country within emerging-market benchmarks by MSCI Inc. and FTSE Russell. International investors will double their estimated holdings to 10 percent of the market by 2020, rising to 15 percent by 2022, Al Hussan estimates. They were initially allowed to trade shares directly in Riyadh about four years ago.
Undeterred by Khashoggi murder, global executives return to #SaudiArabia - Reuters
Undeterred by Khashoggi murder, global executives return to Saudi Arabia - Reuters:
Global finance chiefs who boycotted a Saudi investment summit last year following the murder of journalist Jamal Khashoggi returned to Riyadh this week as the Gulf kingdom gets business back on track.
Dozens of Western politicians and business executives pulled out of Saudi Arabia’s showcase summit in October amid global uproar over Khashoggi’s killing at the hands of Saudi agents inside the kingdom’s Istanbul consulate three weeks earlier.
A Saudi court has charged 11 suspects in a secretive trial and Western allies imposed sanctions on individuals. But Riyadh still faces criticism with some Western governments saying Crown Prince Mohammed bin Salman ordered the murder. Saudi authorities have denied any connection to the country’s de facto ruler.
Global finance chiefs who boycotted a Saudi investment summit last year following the murder of journalist Jamal Khashoggi returned to Riyadh this week as the Gulf kingdom gets business back on track.
Dozens of Western politicians and business executives pulled out of Saudi Arabia’s showcase summit in October amid global uproar over Khashoggi’s killing at the hands of Saudi agents inside the kingdom’s Istanbul consulate three weeks earlier.
A Saudi court has charged 11 suspects in a secretive trial and Western allies imposed sanctions on individuals. But Riyadh still faces criticism with some Western governments saying Crown Prince Mohammed bin Salman ordered the murder. Saudi authorities have denied any connection to the country’s de facto ruler.
MIDEAST STOCKS-Egypt, #Qatar gain on financials; cement makers lift Saudi - Reuters
MIDEAST STOCKS-Egypt, Qatar gain on financials; cement makers lift Saudi - Reuters:
Egypt's blue-chip index and the Qatar
stock market rose modestly on Wednesday, buoyed by their
financial shares, while the Saudi index edged up on the back of
its cement producers.
The Egyptian index rose 0.9 percent, after its
largest lender Commercial International Bank increased
0.6 percent and Egypt Kuwait Holding rebounded 3.7
percent after trading ex-dividend on Tuesday.
Eastern Company inched up 0.1 percent. On Monday,
HC Research raised its rating on the cigarette maker to
'neutral' from 'underweight'.
Egypt's blue-chip index and the Qatar
stock market rose modestly on Wednesday, buoyed by their
financial shares, while the Saudi index edged up on the back of
its cement producers.
The Egyptian index rose 0.9 percent, after its
largest lender Commercial International Bank increased
0.6 percent and Egypt Kuwait Holding rebounded 3.7
percent after trading ex-dividend on Tuesday.
Eastern Company inched up 0.1 percent. On Monday,
HC Research raised its rating on the cigarette maker to
'neutral' from 'underweight'.
BlackRock to Open #Saudi Office as Fink Scouts for Mideast Deals - Bloomberg
BlackRock to Open Saudi Office as Fink Scouts for Mideast Deals - Bloomberg:
BlackRock Inc. plans to open an office in Saudi Arabia as the world’s largest asset manager seeks investment opportunities in the kingdom and wider Middle East.
“The changes in Saudi Arabia are pretty amazing,” Chief Executive Officer Larry Fink said at a financial summit in Riyadh on Wednesday. “We are looking at many different opportunities as an investor and we are working with the region in terms of helping them diversify their portfolios outside the region.”
BlackRock Inc. plans to open an office in Saudi Arabia as the world’s largest asset manager seeks investment opportunities in the kingdom and wider Middle East.
“The changes in Saudi Arabia are pretty amazing,” Chief Executive Officer Larry Fink said at a financial summit in Riyadh on Wednesday. “We are looking at many different opportunities as an investor and we are working with the region in terms of helping them diversify their portfolios outside the region.”
Saudis Start Year With Budget Surplus for First Time Since 2014 - Bloomberg
Saudis Start Year With Budget Surplus for First Time Since 2014 - Bloomberg:
Saudi Arabia started the year with a quarterly budget surplus for the first time since the 2014 collapse in oil prices.
The biggest Arab economy posted a surplus of 27.8 billion riyals ($7.4 billion) in the first quarter, helped by an increase in non-oil revenue as well as income from crude exports, Finance Minister Mohammed Al-Jadaan told an audience of Saudi and international bankers gathered in Riyadh on Wednesday.
Saudi Arabia started the year with a quarterly budget surplus for the first time since the 2014 collapse in oil prices.
The biggest Arab economy posted a surplus of 27.8 billion riyals ($7.4 billion) in the first quarter, helped by an increase in non-oil revenue as well as income from crude exports, Finance Minister Mohammed Al-Jadaan told an audience of Saudi and international bankers gathered in Riyadh on Wednesday.
Head of #Dubai's gold trade body calls for more support from government, industry | ZAWYA MENA Edition
Head of Dubai's gold trade body calls for more support from government, industry | ZAWYA MENA Edition:
The head of the trade body for Dubai’s jewellery industry has called for more support for the industry both from the global gold industry and the government to help boost sales in a sector which has been hit by the imposition of VAT charges and a 5 percent customs duty within the past two years.
Tawhid Abdulla, chairman of the Dubai Gold and Jewellery Group and CEO of the Damas jewellery business, called for the World Gold Council to bring together international organisations in the gold industry to form a global body to promote gold, and asked for the Dubai government’s support to provide more prominence to the industry locally.
Speaking to Zawya on the sidelines of the Dubai Precious Metals Conference earlier this month, Abdulla said that he felt the World Gold Council had “kind of a duty of care, still, to look at our region”.
The head of the trade body for Dubai’s jewellery industry has called for more support for the industry both from the global gold industry and the government to help boost sales in a sector which has been hit by the imposition of VAT charges and a 5 percent customs duty within the past two years.
Tawhid Abdulla, chairman of the Dubai Gold and Jewellery Group and CEO of the Damas jewellery business, called for the World Gold Council to bring together international organisations in the gold industry to form a global body to promote gold, and asked for the Dubai government’s support to provide more prominence to the industry locally.
Speaking to Zawya on the sidelines of the Dubai Precious Metals Conference earlier this month, Abdulla said that he felt the World Gold Council had “kind of a duty of care, still, to look at our region”.
Family-owned YBA Kanoo gets itself IPO-ready | ZAWYA MENA Edition
Family-owned YBA Kanoo gets itself IPO-ready | ZAWYA MENA Edition:
Family-owned business group Yusuf Bin Ahmed Kanoo (YBA Kanoo) has announced the launch of a new group structure which it said would prepare the firm “for future growth and an IPO in 3 to 5 years”.
The company, which is one of the biggest family-owned businesses in the Gulf, with operations across Bahrain, Oman, Saudi Arabia and the United Arab Emirates, has created seven executive committees to oversee company business lines, each of which will be overseen by a family member, and appointed Jeffrey Singer - a former CEO of Dubai International Financial Center and Nasdaq Dubai - as group CEO.
The seven divisions overseen by family members are: Kanoo Travel, Kanoo Industry & Energy, Kanoo Shipping & Logistics, Kanoo Real Estate, Kanoo Capital and Kanoo Innovations.
Family-owned business group Yusuf Bin Ahmed Kanoo (YBA Kanoo) has announced the launch of a new group structure which it said would prepare the firm “for future growth and an IPO in 3 to 5 years”.
The company, which is one of the biggest family-owned businesses in the Gulf, with operations across Bahrain, Oman, Saudi Arabia and the United Arab Emirates, has created seven executive committees to oversee company business lines, each of which will be overseen by a family member, and appointed Jeffrey Singer - a former CEO of Dubai International Financial Center and Nasdaq Dubai - as group CEO.
The seven divisions overseen by family members are: Kanoo Travel, Kanoo Industry & Energy, Kanoo Shipping & Logistics, Kanoo Real Estate, Kanoo Capital and Kanoo Innovations.
#Saudi's Falih: no need for immediate action after end of Iran oil waivers - Reuters
Saudi's Falih: no need for immediate action after end of Iran oil waivers - Reuters:
Saudi Arabia’s energy minister said on Wednesday he saw no need to raise oil output immediately after the United States ends waivers granted to buyers of Iranian crude, but added that his country will respond to customers’ needs if asked for more oil.
Speaking in Riyadh, Khalid al-Falih said he was guided by oil market fundamentals, not prices, and global oil inventories continued to rise.
“Our intent is to remain within our voluntary (OPEC) production limit, but (we will).. be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn,” Falih told reporters.
Saudi Arabia’s energy minister said on Wednesday he saw no need to raise oil output immediately after the United States ends waivers granted to buyers of Iranian crude, but added that his country will respond to customers’ needs if asked for more oil.
Speaking in Riyadh, Khalid al-Falih said he was guided by oil market fundamentals, not prices, and global oil inventories continued to rise.
“Our intent is to remain within our voluntary (OPEC) production limit, but (we will).. be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn,” Falih told reporters.
Glut forces LNG producers to offer flexible deals from global portfolios - Reuters
Glut forces LNG producers to offer flexible deals from global portfolios - Reuters:
The world’s biggest liquefied natural gas (LNG) producers including Shell, Total and Petronas are increasingly selling from global supply pools instead of dedicated projects as buyers leverage a fuel surplus to force ever more flexible deals.
This marks an accelerated turning from traditional long-term contracts that lock customers into taking regular volumes from specific projects under oil-linked pricing formulas.
Global oversupply that has pulled spot LNG prices down by more than 50 percent over the past half-year has producers succumbing to consumer demands for fuel on shorter notice and without sourcing or destination restrictions.
The world’s biggest liquefied natural gas (LNG) producers including Shell, Total and Petronas are increasingly selling from global supply pools instead of dedicated projects as buyers leverage a fuel surplus to force ever more flexible deals.
This marks an accelerated turning from traditional long-term contracts that lock customers into taking regular volumes from specific projects under oil-linked pricing formulas.
Global oversupply that has pulled spot LNG prices down by more than 50 percent over the past half-year has producers succumbing to consumer demands for fuel on shorter notice and without sourcing or destination restrictions.
Exclusive: Gold worth billions smuggled out of Africa - Reuters
Exclusive: Gold worth billions smuggled out of Africa - Reuters:
Billions of dollars’ worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.
Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.
Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.
Billions of dollars’ worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.
Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.
Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.
Oil falls from 6-month high on signs market not as tight as feared - Reuters
Oil falls from 6-month high on signs market not as tight as feared - Reuters:
Oil prices fell on Wednesday after a report allayed concerns about tightening supply, ending a rally that took prices to their highest since early November on concerns that OPEC output cuts and sanctions would take too much oil out of the market.
The International Energy Agency (IEA), a watchdog for oil consuming countries, said in a statement on Tuesday that markets are “adequately supplied” and that “global spare production capacity remains at comfortable levels.”
Also weighing on prices, U.S. crude stocks rose by 6.9 million barrels last week, more than expected, data from industry group the American Petroleum Institute showed on Tuesday. EIA stocks data is due later on Wednesday.
Oil prices fell on Wednesday after a report allayed concerns about tightening supply, ending a rally that took prices to their highest since early November on concerns that OPEC output cuts and sanctions would take too much oil out of the market.
The International Energy Agency (IEA), a watchdog for oil consuming countries, said in a statement on Tuesday that markets are “adequately supplied” and that “global spare production capacity remains at comfortable levels.”
Also weighing on prices, U.S. crude stocks rose by 6.9 million barrels last week, more than expected, data from industry group the American Petroleum Institute showed on Tuesday. EIA stocks data is due later on Wednesday.
Growth outlook lowered for Gulf Arab economies this year - Reuters
Growth outlook lowered for Gulf Arab economies this year - Reuters:
Expectations for growth in the Arab Gulf economies this year have been lowered, according to a quarterly Reuters poll of economists released on Wednesday, as oil output cuts, austerity measures and sluggish non-oil growth continue to weigh on them.
Gross domestic product in Saudi Arabia, the largest Arab economy and the world’s top oil exporter, will grow 1.8 percent in 2019 and 2.2 percent in 2020, the poll of 23 economists projected. Three months ago, the forecasts were for growth of 2.1 percent in 2019 and 2.2 percent in 2020.
The Saudi economy grew 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a 0.74 percent contraction in 2017 when the economy was hit by weak oil prices and austerity measures.
Expectations for growth in the Arab Gulf economies this year have been lowered, according to a quarterly Reuters poll of economists released on Wednesday, as oil output cuts, austerity measures and sluggish non-oil growth continue to weigh on them.
Gross domestic product in Saudi Arabia, the largest Arab economy and the world’s top oil exporter, will grow 1.8 percent in 2019 and 2.2 percent in 2020, the poll of 23 economists projected. Three months ago, the forecasts were for growth of 2.1 percent in 2019 and 2.2 percent in 2020.
The Saudi economy grew 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a 0.74 percent contraction in 2017 when the economy was hit by weak oil prices and austerity measures.
Credit Suisse will receive #Saudi banking license, finance minister says - Reuters
Credit Suisse will receive Saudi banking license, finance minister says - Reuters:
A banking license to operate in Saudi Arabia will be issued to Credit Suisse, Mohammed al-Jadaan, the kingdom’s finance minister said on Wednesday.
The Swiss bank has been seeking to obtain a full banking license in the Middle East’s largest economy and in July last year the bank’s Chief Executive, Tidjane Thiam, said he traveled personally to the country to file the application.
However, in October Thiam - who had been scheduled to go to the Future Investment Initiative conference in Riyadh - decided not to attend the event, joining several other top executives who bowed out amidst uproar over the disappearance of Saudi journalist Jamal Khashoggi.
A banking license to operate in Saudi Arabia will be issued to Credit Suisse, Mohammed al-Jadaan, the kingdom’s finance minister said on Wednesday.
The Swiss bank has been seeking to obtain a full banking license in the Middle East’s largest economy and in July last year the bank’s Chief Executive, Tidjane Thiam, said he traveled personally to the country to file the application.
However, in October Thiam - who had been scheduled to go to the Future Investment Initiative conference in Riyadh - decided not to attend the event, joining several other top executives who bowed out amidst uproar over the disappearance of Saudi journalist Jamal Khashoggi.
MIDEAST STOCKS-Q1 results boost #Saudi, most major Gulf markets mixed - Reuters
MIDEAST STOCKS-Q1 results boost Saudi, most major Gulf markets mixed - Reuters:
Saudi Arabia’s stock market inched higher on Wednesday bolstered by first-quarter results, while major Gulf markets were mixed in subdued trading.
Saudi’s index was up 0.1 percent, with Al Rajhi Bank adding 0.5 percent and National Commercial Bank rose 0.8 percent. Both companies reported an increase in their first-quarter net profit.
Saudi banks’ performance in 2019 is xpected to be boosted by a surge in liquidity and an anticipated recovery in lending against a backdrop of higher oil prices.
Saudi Arabia’s stock market inched higher on Wednesday bolstered by first-quarter results, while major Gulf markets were mixed in subdued trading.
Saudi’s index was up 0.1 percent, with Al Rajhi Bank adding 0.5 percent and National Commercial Bank rose 0.8 percent. Both companies reported an increase in their first-quarter net profit.
Saudi banks’ performance in 2019 is xpected to be boosted by a surge in liquidity and an anticipated recovery in lending against a backdrop of higher oil prices.