Oil climbs, shaking off Trump calls for OPEC to offset Iran sanctions - Reuters:
Oil prices edged higher on Monday, as the market attempted to resume a weeks-long rally that was halted on Friday when U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures fell 11 cents, or 0.2 percent, to settle at $72.04 a barrel while U.S. West Texas Intermediate (WTI) crude futures climbed 20 cents, or 0.3 percent, to end the session at $63.50.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
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Monday 29 April 2019
#SaudiArabia to open up bond market to retail investors | Financial Times
Saudi Arabia to open up bond market to retail investors | Financial Times:
Saudi Arabia is seeking to open up its government bond market to retail investors as part of sweeping reforms intended to develop a savings culture.
Officials said last week that the country’s government sukuk, or Islamic bonds, would be sold in chunks of SR1,000 ($267), rather than the typical SR1m, in a move that finance minister Mohammed al-Jadaan said was designed to make it easier for retail investors and investment funds to participate in the multibillion-dollar market.
Riyadh has increased its borrowing to finance its budget deficit and help fund Crown Prince Mohammed bin Salman’s economic reform programme. The debt management office has said that at the end of 2018 the government had about $150bn in overall debt, 54 per cent of which was denominated in riyals and the rest in US dollars.
Saudi Arabia is seeking to open up its government bond market to retail investors as part of sweeping reforms intended to develop a savings culture.
Officials said last week that the country’s government sukuk, or Islamic bonds, would be sold in chunks of SR1,000 ($267), rather than the typical SR1m, in a move that finance minister Mohammed al-Jadaan said was designed to make it easier for retail investors and investment funds to participate in the multibillion-dollar market.
Riyadh has increased its borrowing to finance its budget deficit and help fund Crown Prince Mohammed bin Salman’s economic reform programme. The debt management office has said that at the end of 2018 the government had about $150bn in overall debt, 54 per cent of which was denominated in riyals and the rest in US dollars.
Trump Wants Cheap Oil. IMF Data Show Saudis Need Higher Prices - Bloomberg
Trump Wants Cheap Oil. IMF Data Show Saudis Need Higher Prices - Bloomberg:
Saudi Arabia needs oil prices to be higher than what U.S. President Donald Trump may be comfortable with as the government increases spending to bolster economic growth.
International Monetary Fund data released on Monday show the world’s biggest oil exporter needs prices at about $85 a barrel to balance its budget this year, up from a forecast of $73 in September.
The estimates highlight the tricky task facing Crown Prince Mohammed bin Salman as he tries to forge closer ties with Trump and, at the same time, finance a plan to revive economic growth and create jobs at home. The kingdom, which reiterated last week its commitment to balance its books by 2023, plans to increase spending by 7 percent this year.
Saudi Arabia needs oil prices to be higher than what U.S. President Donald Trump may be comfortable with as the government increases spending to bolster economic growth.
International Monetary Fund data released on Monday show the world’s biggest oil exporter needs prices at about $85 a barrel to balance its budget this year, up from a forecast of $73 in September.
The estimates highlight the tricky task facing Crown Prince Mohammed bin Salman as he tries to forge closer ties with Trump and, at the same time, finance a plan to revive economic growth and create jobs at home. The kingdom, which reiterated last week its commitment to balance its books by 2023, plans to increase spending by 7 percent this year.
#Iran’s economy slumps as US sanctions pile on the pain | Financial Times
Iran’s economy slumps as US sanctions pile on the pain | Financial Times:
Donald Trump’s sanctions against Iran have triggered a collapse in economic growth, pushing the Islamic republic into a deep recession and lifting inflation towards 40 per cent, according to the IMF.
The fund on Monday linked its forecast of a 6 per cent contraction in Iran this year with Mr Trump’s efforts to tighten an economic squeeze on the country.
The economic slowdown is stoking popular discontent and heightening political tensions between reformists allied to President Hassan Rouhani and hardliners, who have long been staunchly opposed to dialogue with the US.
Donald Trump’s sanctions against Iran have triggered a collapse in economic growth, pushing the Islamic republic into a deep recession and lifting inflation towards 40 per cent, according to the IMF.
The fund on Monday linked its forecast of a 6 per cent contraction in Iran this year with Mr Trump’s efforts to tighten an economic squeeze on the country.
The economic slowdown is stoking popular discontent and heightening political tensions between reformists allied to President Hassan Rouhani and hardliners, who have long been staunchly opposed to dialogue with the US.
Major Boeing customer threatens to switch to Airbus | Financial Times
Major Boeing customer threatens to switch to Airbus | Financial Times:
One of Boeing’s largest customers has threatened to order aircraft from arch rival Airbus, as the US airline’s chief executive sought to shore up investor confidence following the crisis over its 737 Max aircraft.
Dennis Muilenburg told shareholders at the company’s annual meeting on Monday that Boeing would ensure the 737 was “the safest aeroplane out there to fly” and rejected criticisms over its safety record in the wake of two deadly crashes that killed 346 people.
His defence came as Sheikh Ahmed bin Saeed Al Maktoum, chief executive of Emirates airline and president of Dubai’s Civil Aviation Authority, said he would seek compensation for the grounding of 14 737 Max jets at Emirates’ sister low-cost airline Flydubai, which has more than 230 on order. He added that Flydubai could order Airbus A320neos as replacements for the Max jets.
One of Boeing’s largest customers has threatened to order aircraft from arch rival Airbus, as the US airline’s chief executive sought to shore up investor confidence following the crisis over its 737 Max aircraft.
Dennis Muilenburg told shareholders at the company’s annual meeting on Monday that Boeing would ensure the 737 was “the safest aeroplane out there to fly” and rejected criticisms over its safety record in the wake of two deadly crashes that killed 346 people.
His defence came as Sheikh Ahmed bin Saeed Al Maktoum, chief executive of Emirates airline and president of Dubai’s Civil Aviation Authority, said he would seek compensation for the grounding of 14 737 Max jets at Emirates’ sister low-cost airline Flydubai, which has more than 230 on order. He added that Flydubai could order Airbus A320neos as replacements for the Max jets.
#Saudi Aramco Sees Shale Gas as Kingdom's Next Energy Bonanza - Bloomberg
Saudi Aramco Sees Shale Gas as Kingdom's Next Energy Bonanza - Bloomberg:
The world’s biggest oil exporter is ramping up efforts to develop natural gas with plans for a 15-fold boost in output from unconventional deposits of the fuel.
Saudi Aramco is building facilities to tap shale gas in the kingdom’s oil-rich eastern region and is making “a lot of progress” toward this goal, Chief Executive Officer Amin Nasser told reporters in Dammam, Saudi Arabia. Plans include a plant to desalinate seawater that Aramco can then inject underground to frack for gas.
“We are looking to take our unconventional gas within the next 10 years to 3 billion standard cubic feet a day of sales gas,” Nasser said on Sunday. Aramco currently produces more than 190 million cubic feet of unconventional gas daily, all of it in the remote north.
The world’s biggest oil exporter is ramping up efforts to develop natural gas with plans for a 15-fold boost in output from unconventional deposits of the fuel.
Saudi Aramco is building facilities to tap shale gas in the kingdom’s oil-rich eastern region and is making “a lot of progress” toward this goal, Chief Executive Officer Amin Nasser told reporters in Dammam, Saudi Arabia. Plans include a plant to desalinate seawater that Aramco can then inject underground to frack for gas.
“We are looking to take our unconventional gas within the next 10 years to 3 billion standard cubic feet a day of sales gas,” Nasser said on Sunday. Aramco currently produces more than 190 million cubic feet of unconventional gas daily, all of it in the remote north.
Emirates Rethinks Its Network for a World Without the A380 - Bloomberg
Emirates Rethinks Its Network for a World Without the A380 - Bloomberg:
Emirates, the world’s biggest long-haul airline, is reviewing its route network as it grapples with slowing economic growth and the demise of the A380 superjumbo, a plane that’s been the cornerstone of its strategic thinking for almost two decades.
Dubai-based Emirates has spent the past nine months “knocking down the network” to establish the optimum route profile both for itself and for the sheikdom, and is now close to the end of that exercise, President Tim Clark said at the 2019 Arabian Travel Market convention on Monday.
After establishing Dubai as the leading interchange for flights linking cities around the globe, Emirates is finding it tougher to find profitable new routes, especially with sluggish Persian Gulf economies weighing on margins. The state-owned airline was also unable to convince Airbus SE to upgrade the A380, forcing it to buy smaller jets requiring a recalibration of its super-hub model.
Emirates, the world’s biggest long-haul airline, is reviewing its route network as it grapples with slowing economic growth and the demise of the A380 superjumbo, a plane that’s been the cornerstone of its strategic thinking for almost two decades.
Dubai-based Emirates has spent the past nine months “knocking down the network” to establish the optimum route profile both for itself and for the sheikdom, and is now close to the end of that exercise, President Tim Clark said at the 2019 Arabian Travel Market convention on Monday.
After establishing Dubai as the leading interchange for flights linking cities around the globe, Emirates is finding it tougher to find profitable new routes, especially with sluggish Persian Gulf economies weighing on margins. The state-owned airline was also unable to convince Airbus SE to upgrade the A380, forcing it to buy smaller jets requiring a recalibration of its super-hub model.
Gulf Air in Talks With Etihad Airways to Deepen Partnership - Bloomberg
Gulf Air in Talks With Etihad Airways to Deepen Partnership - Bloomberg:
Gulf Air is in talks with Abu Dhabi’s Etihad Airways to deepen an existing codeshare agreement, the Bahrain carrier’s chief commercial officer said, as the airline seeks to expand its network and become the region’s boutique airline.
“The scope of a partnership with Etihad can include domains in which we might find strengths," Vincent Coste said on Sunday on the sidelines of the Arabian Travel Market in Dubai. The partnership might expand to include maintenance and cargo handling, but is currently focused on the codeshare, he said. That agreement began March 20, according to Etihad’s statement at the time.
The state-owned carrier, which flies five Boeing 787 jets equipped with Rolls Royce engines, isn’t facing issues with the Trent 1000 engine, Coste said, after Rolls recommended extra checks for excessive wear.
Gulf Air is in talks with Abu Dhabi’s Etihad Airways to deepen an existing codeshare agreement, the Bahrain carrier’s chief commercial officer said, as the airline seeks to expand its network and become the region’s boutique airline.
“The scope of a partnership with Etihad can include domains in which we might find strengths," Vincent Coste said on Sunday on the sidelines of the Arabian Travel Market in Dubai. The partnership might expand to include maintenance and cargo handling, but is currently focused on the codeshare, he said. That agreement began March 20, according to Etihad’s statement at the time.
The state-owned carrier, which flies five Boeing 787 jets equipped with Rolls Royce engines, isn’t facing issues with the Trent 1000 engine, Coste said, after Rolls recommended extra checks for excessive wear.
Citigroup Is Busy With M&A as Oil Pushes Mideast Deals to Record - Bloomberg
Citigroup Is Busy With M&A as Oil Pushes Mideast Deals to Record - Bloomberg:
Citigroup Inc. is working on about seven M&A deals in the Middle East and North Africa as a rebound in oil prices pushes transactions to record levels.
The deals are “mainly in Saudi Arabia and the United Arab Emirates,” Naveed Kamal, the head of corporate banking in MENA, said in an interview. “Depending on how many of those are successful, it could be one of the best years for us; it could also be one of the best years for the market.”
Some of transactions are “sizable” and involve companies looking at acquisitions outside the region to build networks and diversify geographically, Kamal said. “Fundamentally, the increase in M&A activity is a sign of renewed confidence in the business environment.”
Citigroup Inc. is working on about seven M&A deals in the Middle East and North Africa as a rebound in oil prices pushes transactions to record levels.
The deals are “mainly in Saudi Arabia and the United Arab Emirates,” Naveed Kamal, the head of corporate banking in MENA, said in an interview. “Depending on how many of those are successful, it could be one of the best years for us; it could also be one of the best years for the market.”
Some of transactions are “sizable” and involve companies looking at acquisitions outside the region to build networks and diversify geographically, Kamal said. “Fundamentally, the increase in M&A activity is a sign of renewed confidence in the business environment.”
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg:
Surging crude prices are posing another headwind for the world economy after President Donald Trump’s “zero” pledge on Iran oil sales.
Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects a robust world economy, a shock from constrained supply is a negative.
Much will depend on how sustained the spike proves to be. Exporting nations will enjoy a boost to corporate and government revenues, while consuming nations will bear the cost at the pump, potentially fanning inflation and hurting demand. Ultimately, there comes a point where higher prices may be damaging to everyone.
Surging crude prices are posing another headwind for the world economy after President Donald Trump’s “zero” pledge on Iran oil sales.
Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects a robust world economy, a shock from constrained supply is a negative.
Much will depend on how sustained the spike proves to be. Exporting nations will enjoy a boost to corporate and government revenues, while consuming nations will bear the cost at the pump, potentially fanning inflation and hurting demand. Ultimately, there comes a point where higher prices may be damaging to everyone.
Emirates says full-year results will not be as good as in previous years - Reuters
Emirates says full-year results will not be as good as in previous years - Reuters:
Dubai state-owned airline Emirates will report “positive” full-year results next month but they will not be as good as in previous years due to higher fuel costs and unfavourable currency moves, the company’s president said on Monday.
The Dubai state-owned carrier, which last year warned of a tough second-half, will report results on May 9.
“It has not been easy, in terms of the results,” Tim Clark said at the Arabian Travel Market exhibition in Dubai.
Dubai state-owned airline Emirates will report “positive” full-year results next month but they will not be as good as in previous years due to higher fuel costs and unfavourable currency moves, the company’s president said on Monday.
The Dubai state-owned carrier, which last year warned of a tough second-half, will report results on May 9.
“It has not been easy, in terms of the results,” Tim Clark said at the Arabian Travel Market exhibition in Dubai.
UPDATE 1-First Abu Dhabi Bank Q1 profit buoyed by forex, investment income - Reuters
UPDATE 1-First Abu Dhabi Bank Q1 profit buoyed by forex, investment income - Reuters:
First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Monday reported a 3.6 percent rise in first quarter profit driven by higher foreign exchange and investment income.
FAB made a net profit of 3.11 billion dirhams ($846.79 million) in the three months ending March 31, up from 3.0 billion a year earlier, it said in a statement.
SICO Bahrain had projected a net profit of 3.067 billion dirhams for the lender.
First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Monday reported a 3.6 percent rise in first quarter profit driven by higher foreign exchange and investment income.
FAB made a net profit of 3.11 billion dirhams ($846.79 million) in the three months ending March 31, up from 3.0 billion a year earlier, it said in a statement.
SICO Bahrain had projected a net profit of 3.067 billion dirhams for the lender.
Oil steadies after Trump presses OPEC to offset Iran sanctions - Reuters
Oil steadies after Trump presses OPEC to offset Iran sanctions - Reuters:
Oil prices steadied on Monday, after a weeks-long rally was halted on Friday when the market tumbled after U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures rose 5 cents, or 0.1 percent, to $72.207 a barrel by 10:49 a.m. ET (1449 GMT). U.S. West Texas Intermediate (WTI) crude futures lost 20 cents, or 0.3 percent, to $63.10.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
Oil prices steadied on Monday, after a weeks-long rally was halted on Friday when the market tumbled after U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures rose 5 cents, or 0.1 percent, to $72.207 a barrel by 10:49 a.m. ET (1449 GMT). U.S. West Texas Intermediate (WTI) crude futures lost 20 cents, or 0.3 percent, to $63.10.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
#Saudi central bank says financing for properties tripled in Q1 - Reuters
Saudi central bank says financing for properties tripled in Q1 - Reuters:
Saudi Arabia’s central bank said on Monday that in the first quarter of this year financing for properties in the kingdom tripled when compared to the same period last year.
Contracts related to property financing reached a total value 15 billion riyals ($4.00 billion), the central bank said in a statement.
Saudi Arabia’s central bank said on Monday that in the first quarter of this year financing for properties in the kingdom tripled when compared to the same period last year.
Contracts related to property financing reached a total value 15 billion riyals ($4.00 billion), the central bank said in a statement.
Oil prices stumble as hedge funds become overextended: Kemp - Reuters
Oil prices stumble as hedge funds become overextended: Kemp - Reuters:
Hedge fund managers added even more bullish long positions in crude oil and refined fuels last week, but positions showed signs of becoming stretched, setting prices up for a setback.
Hedge funds and other money managers were net buyers of another 46 million barrels of futures and options in the six major petroleum contracts in the week to April 23, according to exchange and regulatory data.
Funds were net buyers of Brent (+16 million barrels), NYMEX and ICE WTI (+24 million) and European gasoil (+8 million) but smaller sellers of U.S. gasoline (-3 million) and left U.S. heating oil positions unchanged.
Hedge fund managers added even more bullish long positions in crude oil and refined fuels last week, but positions showed signs of becoming stretched, setting prices up for a setback.
Hedge funds and other money managers were net buyers of another 46 million barrels of futures and options in the six major petroleum contracts in the week to April 23, according to exchange and regulatory data.
Funds were net buyers of Brent (+16 million barrels), NYMEX and ICE WTI (+24 million) and European gasoil (+8 million) but smaller sellers of U.S. gasoline (-3 million) and left U.S. heating oil positions unchanged.
MIDEAST STOCKS-Profit-taking hits #UAE markets, Saudi inches up - Reuters
MIDEAST STOCKS-Profit-taking hits UAE markets, Saudi inches up - Reuters:
Abu Dhabi's stock market slid on
Monday, affected by profit-taking and a sell-off in its
financial shares, while Saudi Arabia was the only major Gulf
market to rise.
The Abu Dhabi index lost 0.9 percent in its fourth
straight day of declines, with energy firm Dana Gas
dropping 4.1 percent and the largest bank in the United Arab
Emirates, First Abu Dhabi Bank, losing 1.2 percent.
Dana's stock traded ex-dividend on Thursday and has been
sliding since. First Abu Dhabi Bank posted a 3.6 percent rise in
first-quarter 2019 profit.
Abu Dhabi's stock market slid on
Monday, affected by profit-taking and a sell-off in its
financial shares, while Saudi Arabia was the only major Gulf
market to rise.
The Abu Dhabi index lost 0.9 percent in its fourth
straight day of declines, with energy firm Dana Gas
dropping 4.1 percent and the largest bank in the United Arab
Emirates, First Abu Dhabi Bank, losing 1.2 percent.
Dana's stock traded ex-dividend on Thursday and has been
sliding since. First Abu Dhabi Bank posted a 3.6 percent rise in
first-quarter 2019 profit.
IMF: Mideast economies face volatile politics, oil prices
IMF: Mideast economies face volatile politics, oil prices:
Political uncertainty and volatile oil prices are weighing heavily on economic growth in the Middle East this year, according to a new report released Monday by the International Monetary Fund.
The report, which looks at the economies of 23 countries spanning North Africa, the Levant, the Persian Gulf, but also Djibouti, Somalia, Afghanistan and Pakistan, predicts that overall growth across these nations is expected to slowdown from close to 2% last year to about 1.5% in 2019.
Inflation is expected to remain unchanged at close to 10%.
Political uncertainty and volatile oil prices are weighing heavily on economic growth in the Middle East this year, according to a new report released Monday by the International Monetary Fund.
The report, which looks at the economies of 23 countries spanning North Africa, the Levant, the Persian Gulf, but also Djibouti, Somalia, Afghanistan and Pakistan, predicts that overall growth across these nations is expected to slowdown from close to 2% last year to about 1.5% in 2019.
Inflation is expected to remain unchanged at close to 10%.
Saudi GDP could surprise on the upside, higher budget deficit seen in 2019: IMF - Reuters
Saudi GDP could surprise on the upside, higher budget deficit seen in 2019: IMF - Reuters:
The International Monetary Fund (IMF) estimates that Saudi Arabia’s economic growth in 2019 may be slightly higher than its earlier 1.8 percent forecast as the non-oil sector is expanding faster than the wider economy, a senior official said.
The budget deficit this year could be 7.9 percent, higher than 2018 on an assumption that oil prices would be lower in 2019 compared to last year, Jihad Azour, director of the Middle East and Central Asia Department at the IMF, told Reuters.
“We expect non-oil growth to be at 2.6 percent this year and 2.9 percent for 2020,” he said in an interview in Dubai.
The International Monetary Fund (IMF) estimates that Saudi Arabia’s economic growth in 2019 may be slightly higher than its earlier 1.8 percent forecast as the non-oil sector is expanding faster than the wider economy, a senior official said.
The budget deficit this year could be 7.9 percent, higher than 2018 on an assumption that oil prices would be lower in 2019 compared to last year, Jihad Azour, director of the Middle East and Central Asia Department at the IMF, told Reuters.
“We expect non-oil growth to be at 2.6 percent this year and 2.9 percent for 2020,” he said in an interview in Dubai.