Oil rises 1% after surprise fall in U.S. crude stockpiles - Reuters:
Oil futures gained 1% on Wednesday, boosted by a surprise drawdown in U.S. crude stockpiles, but an escalating U.S.-Chinese trade fight limited oil’s gains as investors worried about the global outlook for energy demand.
Brent crude futures rose 49 cents, or 0.7%, to settle at $70.37 a barrel, while U.S. West Texas Intermediate (WTI) crude ended 72 cents, or 1.2%, higher at $62.12.
U.S. crude inventories fell 4 million barrels last week, the Energy Information Administration said, compared with analysts’ forecast of a 1.2 million-barrel build.
Wednesday, 8 May 2019
Saudis Said Willing to Meet Orders From Ex-Iran Oil Buyers - Bloomberg
Saudis Said Willing to Meet Orders From Ex-Iran Oil Buyers - Bloomberg:
Saudi Arabia plans to meet all requests for oil purchases it has received for June, notably from countries that had to stop buying Iranian crude because of recent U.S. sanctions.
The world’s biggest oil exporter has received moderate requests from customers for shipments next month, including from former buyers of Iran’s oil, according to a Persian Gulf person familiar with Saudi plans, who asked not to be identified because the matter is confidential.
Saudi oil production for June is expected to remain below the kingdom’s ceiling under an agreement between the Organization of Petroleum Exporting Countries and its allies limiting output until the end of next month, the person said. Saudi Arabia pumped about 9.8 million barrels a day in March and April and has an OPEC quota of 10.311 million.
Saudi Arabia plans to meet all requests for oil purchases it has received for June, notably from countries that had to stop buying Iranian crude because of recent U.S. sanctions.
The world’s biggest oil exporter has received moderate requests from customers for shipments next month, including from former buyers of Iran’s oil, according to a Persian Gulf person familiar with Saudi plans, who asked not to be identified because the matter is confidential.
Saudi oil production for June is expected to remain below the kingdom’s ceiling under an agreement between the Organization of Petroleum Exporting Countries and its allies limiting output until the end of next month, the person said. Saudi Arabia pumped about 9.8 million barrels a day in March and April and has an OPEC quota of 10.311 million.
Turnaround firm Alvarez & Marsal to boost Gulf presence amid downturn - Reuters
Turnaround firm Alvarez & Marsal to boost Gulf presence amid downturn - Reuters:
Turnaround firm Alvarez & Marsal, which ran Lehman Brothers after the bank’s collapse in 2008, plans to almost double its staff in the Gulf by 2020 to take advantage of a slowdown in growth and increasing distress in the real estate sector.
Dubai property prices have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales, although the slide has not come close to the more than 50 percent drop in 2009-2010, which pushed the emirate close to a debt default.
Two of the largest construction companies in the Middle East, Drake & Scull International (DSI) and Arabtec Holding have engaged restructuring advisers, while yields on bonds issued by real estate developers like Dubai’s DAMAC Properties have risen significantly, reflecting investor concern over upcoming debt and land repayments.
Turnaround firm Alvarez & Marsal, which ran Lehman Brothers after the bank’s collapse in 2008, plans to almost double its staff in the Gulf by 2020 to take advantage of a slowdown in growth and increasing distress in the real estate sector.
Dubai property prices have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales, although the slide has not come close to the more than 50 percent drop in 2009-2010, which pushed the emirate close to a debt default.
Two of the largest construction companies in the Middle East, Drake & Scull International (DSI) and Arabtec Holding have engaged restructuring advisers, while yields on bonds issued by real estate developers like Dubai’s DAMAC Properties have risen significantly, reflecting investor concern over upcoming debt and land repayments.
#Abraaj founder kept in custody in absence of £15 mln bail - Reuters
Abraaj founder kept in custody in absence of £15 mln bail - Reuters:
Arif Naqvi, the founder of collapsed buyout firm Abraaj Group, was on Wednesday given another two days to raise a 15 million pound bail by a London court, a court official said.
Naqvi was arrested in Britain last month and has been awaiting potential extradition to the United States where he faces charges of defrauding investors.
On May 3, Westminster Magistrates Court granted Naqvi bail on condition that he pay 15 million pounds ($19.72 million) and an additional surety of 650,000 pounds, as well as surrendering his Pakistani passport, remaining under 24-hour curfew at an address given to the court and wearing an electronic tag, a prosecution spokesman said at the time.
Arif Naqvi, the founder of collapsed buyout firm Abraaj Group, was on Wednesday given another two days to raise a 15 million pound bail by a London court, a court official said.
Naqvi was arrested in Britain last month and has been awaiting potential extradition to the United States where he faces charges of defrauding investors.
On May 3, Westminster Magistrates Court granted Naqvi bail on condition that he pay 15 million pounds ($19.72 million) and an additional surety of 650,000 pounds, as well as surrendering his Pakistani passport, remaining under 24-hour curfew at an address given to the court and wearing an electronic tag, a prosecution spokesman said at the time.
Brent prices to remain volatile on lack of clarity in fundamentals - Goldman Sachs - Reuters
Brent prices to remain volatile on lack of clarity in fundamentals - Goldman Sachs - Reuters:
* Lack of clarity in oil fundamentals will keep Brent crude price volatility high in the next couple months, testing Goldman Sach’s expected boundary range of $70-$75/bbl, the bank said in a note
* “In the coming weeks, however, we believe that the recent Brent pull-back has taken prices too low in the face of tight fundamentals and growing supply risks (Iran, Venezuela, Libya, Russia), just as refiners come back from extended spring,” the banks said
* The bank expects a balanced oil market beyond the next couple of months once new Permian transport capacity in the United States is online and core-OPEC members increase production.
* Lack of clarity in oil fundamentals will keep Brent crude price volatility high in the next couple months, testing Goldman Sach’s expected boundary range of $70-$75/bbl, the bank said in a note
* “In the coming weeks, however, we believe that the recent Brent pull-back has taken prices too low in the face of tight fundamentals and growing supply risks (Iran, Venezuela, Libya, Russia), just as refiners come back from extended spring,” the banks said
* The bank expects a balanced oil market beyond the next couple of months once new Permian transport capacity in the United States is online and core-OPEC members increase production.
Gunvor arranging #Oman loan linked to oil for up to $3 billion: sources - Reuters
Gunvor arranging Oman loan linked to oil for up to $3 billion: sources - Reuters:
Energy trader Gunvor is arranging a commercial loan for up to $3 billion for Oman to be backed by the Arab state’s long-term oil export contracts, sources familiar with the matter said.
The Gulf producer, which was hit hard when oil prices slumped in 2014, has increasingly raised finance through selling bonds and funds provided by banks over the past few years.
Oman, a relatively small regional producer with output of more than 600,000 barrels per day, has used so-called pre-export financing loans in the past to raise debt for state-controlled oil firms Oman Oil and Petroleum Development Oman.
Energy trader Gunvor is arranging a commercial loan for up to $3 billion for Oman to be backed by the Arab state’s long-term oil export contracts, sources familiar with the matter said.
The Gulf producer, which was hit hard when oil prices slumped in 2014, has increasingly raised finance through selling bonds and funds provided by banks over the past few years.
Oman, a relatively small regional producer with output of more than 600,000 barrels per day, has used so-called pre-export financing loans in the past to raise debt for state-controlled oil firms Oman Oil and Petroleum Development Oman.
Australia's Macquarie Capital downsizes in the Gulf: sources - Reuters
Australia's Macquarie Capital downsizes in the Gulf: sources - Reuters:
Macquarie is scaling back in the Middle East by downsizing its operations in the United Arab Emirates, three sources familiar with the matter said and is giving up an operating license in Saudi Arabia.
Saudi Arabia’s Capital Market Authority said on Tuesday that Macquarie Capital, the lender’s investment banking unit, had relinquished its operating license in the country, which it had acquired in 2017.
“Macquarie Capital Saudi Arabia LLC has requested the Capital Market Authority to cancel its authorization to conduct arranging and advising activities,” the regulator said in a statement. “The company has not commenced business yet.”
Macquarie is scaling back in the Middle East by downsizing its operations in the United Arab Emirates, three sources familiar with the matter said and is giving up an operating license in Saudi Arabia.
Saudi Arabia’s Capital Market Authority said on Tuesday that Macquarie Capital, the lender’s investment banking unit, had relinquished its operating license in the country, which it had acquired in 2017.
“Macquarie Capital Saudi Arabia LLC has requested the Capital Market Authority to cancel its authorization to conduct arranging and advising activities,” the regulator said in a statement. “The company has not commenced business yet.”
#SaudiArabia's oil exports to stay below 7 million barrels per day in June: Gulf source - Reuters
Saudi Arabia's oil exports to stay below 7 million barrels per day in June: Gulf source - Reuters:
Saudi Arabia is expected to keep its crude exports below 7 million barrels per day in June, while output will stay under its production quota under a global deal to cut oil supply, a Gulf source familiar with Saudi oil plans said on Wednesday.
This shows how Riyadh is reluctant to boost oil supply too quickly and risk a price crash and a build-up in inventories, despite pressure from Washington to reduce oil prices.
U.S. President Donald Trump has said he had called Saudi Arabia and OPEC and told them to lower oil prices, but he did not say whom he spoke to or when the conversations took place.
Saudi Arabia is expected to keep its crude exports below 7 million barrels per day in June, while output will stay under its production quota under a global deal to cut oil supply, a Gulf source familiar with Saudi oil plans said on Wednesday.
This shows how Riyadh is reluctant to boost oil supply too quickly and risk a price crash and a build-up in inventories, despite pressure from Washington to reduce oil prices.
U.S. President Donald Trump has said he had called Saudi Arabia and OPEC and told them to lower oil prices, but he did not say whom he spoke to or when the conversations took place.
MIDEAST STOCKS-Global trade tensions, Ramadan dent appetite for Gulf stocks - Agricultural Commodities - Reuters
MIDEAST STOCKS-Global trade tensions, Ramadan dent appetite for Gulf stocks - Agricultural Commodities - Reuters:
The Egyptian blue-chip index slid sharply to its worst day
in six months on Wednesday, mirroring weak global sentiment, while Saudi
Arabia's index fell, pressured by global tensions and investors retreating from
markets during the Muslim holy month of Ramadan.
Egypt's blue-chip index fell 2.5 percent, with 29 out of 30 stocks
trading in the red. Egypt's largest lender Commercial International Bank Egypt
fell 0.7 percent, while Egyptian Iron & Steel plunged 9.9
percent.
Property developer Emaar Misr For Development fell 4.7 percent
after reporting a 16.8 percent fall in its first-quarter net profit.
The Egyptian blue-chip index slid sharply to its worst day
in six months on Wednesday, mirroring weak global sentiment, while Saudi
Arabia's index fell, pressured by global tensions and investors retreating from
markets during the Muslim holy month of Ramadan.
Egypt's blue-chip index fell 2.5 percent, with 29 out of 30 stocks
trading in the red. Egypt's largest lender Commercial International Bank Egypt
fell 0.7 percent, while Egyptian Iron & Steel plunged 9.9
percent.
Property developer Emaar Misr For Development fell 4.7 percent
after reporting a 16.8 percent fall in its first-quarter net profit.
Kuwaiti regulator rejects Warba Bank's acquisition of investment firm | ZAWYA MENA Edition
Kuwaiti regulator rejects Warba Bank's acquisition of investment firm | ZAWYA MENA Edition:
Kuwait-based Warba Bank has said that its proposed acquisition of Kuwait & Middle East Financial Investment Company (KMEFIC) has not been approved by the country’s central bank.
KMEFIC is an asset management and financial services company listed on the Kuwaiti stock exchange.
In February this year, Warba Bank announced that it had signed a share purchase agreement with Ahli United Bank (AUB) and its subsidiary to purchase their collective shareholding of 75.72 percent stake in KMEFIC, subject to securing all regulatory approvals. The aggregate purchase price announced was 10.2 million Kuwaiti dinars ($33.5 million).
Kuwait-based Warba Bank has said that its proposed acquisition of Kuwait & Middle East Financial Investment Company (KMEFIC) has not been approved by the country’s central bank.
KMEFIC is an asset management and financial services company listed on the Kuwaiti stock exchange.
In February this year, Warba Bank announced that it had signed a share purchase agreement with Ahli United Bank (AUB) and its subsidiary to purchase their collective shareholding of 75.72 percent stake in KMEFIC, subject to securing all regulatory approvals. The aggregate purchase price announced was 10.2 million Kuwaiti dinars ($33.5 million).
Russia says #Iran deal's European signatories should fulfil their obligations - Reuters
Russia says Iran deal's European signatories should fulfil their obligations - Reuters:
Russia expects the 2015 Iran nuclear deal’s European signatories to fulfil their obligations under the pact, Russian Foreign Minister Sergei Lavrov said on Wednesday.
Speaking after talks in Moscow with Iranian Foreign Minister Mohammad Javad Zarif, Lavrov told reporters the situation around the nuclear deal was making it hard for Tehran to fulfil its obligations.
Russia expects the 2015 Iran nuclear deal’s European signatories to fulfil their obligations under the pact, Russian Foreign Minister Sergei Lavrov said on Wednesday.
Speaking after talks in Moscow with Iranian Foreign Minister Mohammad Javad Zarif, Lavrov told reporters the situation around the nuclear deal was making it hard for Tehran to fulfil its obligations.
#AbuDhabi's Gulf Capital, Waha Capital hold merger talks: sources - Reuters
Abu Dhabi's Gulf Capital, Waha Capital hold merger talks: sources - Reuters:
Abu Dhabi investment firms Gulf Capital and Waha Capital have held exploratory discussions regarding a merger, three sources familiar with the matter told Reuters.
The talks have taken place over the last few months and may or may not lead to a deal, the sources said.
Private equity firm Gulf Capital manages over $4 billion in assets. Waha Capital’s total assets stood at $3.18 billion at the end of last year. It also managed funds worth around $700 million.
Abu Dhabi investment firms Gulf Capital and Waha Capital have held exploratory discussions regarding a merger, three sources familiar with the matter told Reuters.
The talks have taken place over the last few months and may or may not lead to a deal, the sources said.
Private equity firm Gulf Capital manages over $4 billion in assets. Waha Capital’s total assets stood at $3.18 billion at the end of last year. It also managed funds worth around $700 million.
Arabian Centers IPO priced at lower end, books covered: sources - Reuters
Arabian Centers IPO priced at lower end, books covered: sources - Reuters:
Mall operator Arabian Centers has priced its initial public offering at the lower end of an indicative price range and is set to raise 2.47 billion riyals ($659 million), two sources said.
That would make it the second biggest IPO in Saudi Arabia since National Commercial Bank raised $6 billion in 2014, Refinitiv data showed.
The company priced its IPO at 26 riyals per share, the sources said, against a price range of 26 to 33 riyals per share for the sale of 95 million shares.
Mall operator Arabian Centers has priced its initial public offering at the lower end of an indicative price range and is set to raise 2.47 billion riyals ($659 million), two sources said.
That would make it the second biggest IPO in Saudi Arabia since National Commercial Bank raised $6 billion in 2014, Refinitiv data showed.
The company priced its IPO at 26 riyals per share, the sources said, against a price range of 26 to 33 riyals per share for the sale of 95 million shares.
UPDATE 2-Bailed-out #Bahrain considers new debt sale; bonds drop - Reuters
UPDATE 2-Bailed-out Bahrain considers new debt sale; bonds drop - Reuters:
Bahrain met investors to discuss a possible international bond sale this year, which would be its first since it got a $10 billion bailout from its Gulf allies last year to avert a potential credit crunch, sources familiar with the matter said.
Saudi Arabia, Kuwait and the United Arab Emirates bailed out Bahrain last year when lower oil prices pushed its public debt to nearly 93 percent of annual economic output.
Bahrain’s bonds have become among the most profitable in the Gulf since then. They offer investors the returns of a junk-rated country but without the risk of impeding defaults, given the support of its wealthier neighbours.
Bahrain met investors to discuss a possible international bond sale this year, which would be its first since it got a $10 billion bailout from its Gulf allies last year to avert a potential credit crunch, sources familiar with the matter said.
Saudi Arabia, Kuwait and the United Arab Emirates bailed out Bahrain last year when lower oil prices pushed its public debt to nearly 93 percent of annual economic output.
Bahrain’s bonds have become among the most profitable in the Gulf since then. They offer investors the returns of a junk-rated country but without the risk of impeding defaults, given the support of its wealthier neighbours.
MIDEAST STOCKS-Financials pressure #AbuDhabi and #Qatar, other Gulf markets down - Reuters
MIDEAST STOCKS-Financials pressure Abu Dhabi and Qatar, other Gulf markets down - Reuters:
The Abu Dhabi and Qatar stock markets fell sharply in early trading on Wednesday, dragged down by financial shares as other major Gulf markets lost ground.
Abu Dhabi’s index dropped 1.2 percent as First Abu Dhabi, the UAE’s largest bank, shed 1.7 percent. Methaq Takaful Insurance and Abu Dhabi Islamic Bank dropped 4.9 percent and 1.5 percent respectively.
Abu Dhabi Commercial Bank dropped 1.6 percent after posting a 5 percent fall in first-quarter profit last week. The bank, which formalised a merger with two other lenders last week, blamed lower interest income and higher cost of funds.
The Abu Dhabi and Qatar stock markets fell sharply in early trading on Wednesday, dragged down by financial shares as other major Gulf markets lost ground.
Abu Dhabi’s index dropped 1.2 percent as First Abu Dhabi, the UAE’s largest bank, shed 1.7 percent. Methaq Takaful Insurance and Abu Dhabi Islamic Bank dropped 4.9 percent and 1.5 percent respectively.
Abu Dhabi Commercial Bank dropped 1.6 percent after posting a 5 percent fall in first-quarter profit last week. The bank, which formalised a merger with two other lenders last week, blamed lower interest income and higher cost of funds.
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