Crude Rebounds as Supply Risks Help Offset Trade War Concerns - Bloomberg:
Brent crude rebounded from last week's rout as the outlook for supply disruptions from Iran and Libya help offset concerns that a U.S.-China trade war will sap demand.
Futures rose 2.1% in London, following a 4.9% slump in oil's worst week this year. OPEC meets next month in Vienna to decide on the future of production cuts amid rising tensions between the U.S. and Iran that could endanger a region that’s the source of much of the world’s oil supply. In Libya, strongman Khalifa Haftar said over the weekend that his offensive on Tripoli won’t stop until the country’s militias have been disarmed, risking a renewed blow to the country’s recovering oil output.
“This is a bit of a bounce from the very sharp decline last week,” Bart Melek, head of commodity strategy at Toronto’s TD Securities, said by phone. “OPEC continues to keep supply tight. We will no doubt have geopolitical risk with us as it pertains to Iran and Libya.”
Following the escalating trade dispute that rattled markets last week, U.S. President Donald Trump said Monday that the country isn’t ready to make a deal with China. A drop in Chinese industrial profits for April provided more evidence of the trade war’s impact. Trump also said that he isn’t pursuing regime change in Iran but aims to keep it from developing nuclear weapons, an apparent effort to tamp down tensions.
Brent crude for July rose $1.42 to $70.11 a barrel on London’s ICE Europe Futures. West Texas Intermediate crude gained 61 cents to $59.24 on the New York Mercantile Exchange. It was a public holiday in both the U.S. and the U.K.
Monday 27 May 2019
#Saudi Miner Said to Weigh World's Biggest Rights Issue in a Year - Bloomberg
Saudi Miner Said to Weigh World's Biggest Rights Issue in a Year - Bloomberg:
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering that could be the biggest since mid-2018, according to people with knowledge of the matter. The shares slumped.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering that could be the biggest since mid-2018, according to people with knowledge of the matter. The shares slumped.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
ENOC targets 124 new service stations in #SaudiArabia | ZAWYA MENA Edition
ENOC targets 124 new service stations in Saudi Arabia | ZAWYA MENA Edition:
Enoc Group, a wholly-owned entity of the Government of Dubai, will increase its service station network by more than eight fold by 2030 to reach 124 stations to meet the growing fuel station demand in Saudi Arabia.
The new service stations will be strategically spread across different locations across the Kingdom covering east, west and central regions, with the objective of boosting the quality of infrastructure to bring last mile connectivity, especially for the rural parts of the country.
Over the next five years, Enoc plans to open 45 new service stations. From 2024 to 2028, the Group plans to further expand its retail operations across the Kingdom by opening 65 new Enoc stations. All upcoming service stations in the Kingdom will have provisions for solar PV panels to be installed on the roof of the canopy.
Enoc Group, a wholly-owned entity of the Government of Dubai, will increase its service station network by more than eight fold by 2030 to reach 124 stations to meet the growing fuel station demand in Saudi Arabia.
The new service stations will be strategically spread across different locations across the Kingdom covering east, west and central regions, with the objective of boosting the quality of infrastructure to bring last mile connectivity, especially for the rural parts of the country.
Over the next five years, Enoc plans to open 45 new service stations. From 2024 to 2028, the Group plans to further expand its retail operations across the Kingdom by opening 65 new Enoc stations. All upcoming service stations in the Kingdom will have provisions for solar PV panels to be installed on the roof of the canopy.
Oil rises to $69 as Mideast tension and supply cuts offset trade concerns - Reuters
Oil rises to $69 as Mideast tension and supply cuts offset trade concerns - Reuters:
Oil rose to about $69 a barrel on Monday, supported by Middle East tensions and OPEC-led supply cuts, though concern over the U.S.-China trade dispute and global economy capped gains.
Supply cuts - both voluntary by the Organization of the Petroleum Exporting Countries (OPEC) and allies, plus those resulting from U.S. sanctions - have helped Brent crude, the global benchmark, rise by about 29 percent this year.
Brent was up 33 cents at $69.02 a barrel by 1334 GMT, having fallen by about 4.5% last week. U.S. West Texas Intermediate crude was down 30 cents at $58.33.
Oil rose to about $69 a barrel on Monday, supported by Middle East tensions and OPEC-led supply cuts, though concern over the U.S.-China trade dispute and global economy capped gains.
Supply cuts - both voluntary by the Organization of the Petroleum Exporting Countries (OPEC) and allies, plus those resulting from U.S. sanctions - have helped Brent crude, the global benchmark, rise by about 29 percent this year.
Brent was up 33 cents at $69.02 a barrel by 1334 GMT, having fallen by about 4.5% last week. U.S. West Texas Intermediate crude was down 30 cents at $58.33.
#SaudiArabia's Napco National plans float, picks Saudi Fransi to advise-sources - Reuters
Saudi Arabia's Napco National plans float, picks Saudi Fransi to advise-sources - Reuters:
Saudi Arabia-based home disposables manufacturer Napco National is planning a potential public share sale and has hired the investment banking arm of Banque Saudi Fransi to advise on the deal, sources told Reuters.
Based in Dammam, Napco National produces paper and hygiene products like facial tissues, feminine napkins and adult and child diapers.
The company is working with Saudi Fransi Capital on an initial public offering (IPO) that could take place at the end of this year or next, said the sources who declined to be named due to commercial sensitivities.
Saudi Arabia-based home disposables manufacturer Napco National is planning a potential public share sale and has hired the investment banking arm of Banque Saudi Fransi to advise on the deal, sources told Reuters.
Based in Dammam, Napco National produces paper and hygiene products like facial tissues, feminine napkins and adult and child diapers.
The company is working with Saudi Fransi Capital on an initial public offering (IPO) that could take place at the end of this year or next, said the sources who declined to be named due to commercial sensitivities.
MIDEAST STOCKS- #Qatar, #Saudi rise on financials; Property drags #Dubai - Reuters
MIDEAST STOCKS-Qatar, Saudi rise on financials; Property drags Dubai - Reuters:
Qatar and Saudi Arabia's stock markets
rose on Monday, helped by financial companies, while Dubai's was
pressured by the real estate sector.
Qatar's index rose 0.9% as banks gained. Qatar
Islamic Bank surged 8.7% and the Middle East's biggest
lender, Qatar National Bank, added 2.2%.
Qatar's stock exchange is developing two new Exchange Traded
Funds, part of efforts by the Middle East's strongest performing
stock market in 2018 to boost foreign investment, Reuters
reported last week, citing CEO Rashid al-Mansoori.
Qatar and Saudi Arabia's stock markets
rose on Monday, helped by financial companies, while Dubai's was
pressured by the real estate sector.
Qatar's index rose 0.9% as banks gained. Qatar
Islamic Bank surged 8.7% and the Middle East's biggest
lender, Qatar National Bank, added 2.2%.
Qatar's stock exchange is developing two new Exchange Traded
Funds, part of efforts by the Middle East's strongest performing
stock market in 2018 to boost foreign investment, Reuters
reported last week, citing CEO Rashid al-Mansoori.
#Kuwait oil minister sees balanced oil market towards end 2019 | ZAWYA MENA Edition
Kuwait oil minister sees balanced oil market towards end 2019 | ZAWYA MENA Edition:
The oil market is expected to be in balance towards the end of 2019, as global inventories fall and demand remains strong, but OPEC's job is not done yet, Kuwait's oil minister told Reuters.
There are still uncertainties around oil demand growth due to concerns about the impact of the U.S./China trade dispute on global economy, while U.S. shale oil production is still rising, Khaled al-Fadhel said on Monday.
This uncertain outlook is making it tough for OPEC and its allies to have a clear oil supply plan for the second half of the year. Fadhel said it was too early to say now if the oil producers will extend their current output targets after June.
The oil market is expected to be in balance towards the end of 2019, as global inventories fall and demand remains strong, but OPEC's job is not done yet, Kuwait's oil minister told Reuters.
There are still uncertainties around oil demand growth due to concerns about the impact of the U.S./China trade dispute on global economy, while U.S. shale oil production is still rising, Khaled al-Fadhel said on Monday.
This uncertain outlook is making it tough for OPEC and its allies to have a clear oil supply plan for the second half of the year. Fadhel said it was too early to say now if the oil producers will extend their current output targets after June.
Small shale companies under pressure, says Fed official | Financial Times
Small shale companies under pressure, says Fed official | Financial Times:
Independent shale drillers in the US are facing pressure to either expand or be acquired, Robert Kaplan, president of the Federal Reserve Bank of Dallas, has said.
Despite the classic “wildcatting” image of plucky entrepreneurs trying their luck, smaller, independent drillers are losing access to capital and hearing complaints from shareholders, he said in an interview with the Financial Times.
Mr Kaplan’s comments come less than two weeks after Occidental Petroleum agreed to acquire rival Anadarko Petroleum, one of the largest US independent oil and gas groups, for $56bn.
Independent shale drillers in the US are facing pressure to either expand or be acquired, Robert Kaplan, president of the Federal Reserve Bank of Dallas, has said.
Despite the classic “wildcatting” image of plucky entrepreneurs trying their luck, smaller, independent drillers are losing access to capital and hearing complaints from shareholders, he said in an interview with the Financial Times.
Mr Kaplan’s comments come less than two weeks after Occidental Petroleum agreed to acquire rival Anadarko Petroleum, one of the largest US independent oil and gas groups, for $56bn.
Qatari sovereign wealth fund takes £200m stake in Severn Trent | Financial Times
Qatari sovereign wealth fund takes £200m stake in Severn Trent | Financial Times:
Qatar’s sovereign wealth fund has taken a £200m stake in Severn Trent, one of the UK’s biggest water companies.
Severn Trent is among the largest of the UK’s 10 regional water supply and sewerage monopolies, serving about 8m people in Birmingham, Gloucester and the Bristol Channel area. It is one of three water companies listed on the London Stock Exchange, while the others are owned mostly by overseas investors, including sovereign wealth and private equity funds.
The opposition Labour party has set out plans to renationalise UK water companies should it win a general election. Shadow chancellor John McDonnell has said a Labour government would pay less than £15bn to investors when it renationalises the industry, compared with an estimated £44bn market value of their investments.
Qatar’s sovereign wealth fund has taken a £200m stake in Severn Trent, one of the UK’s biggest water companies.
Severn Trent is among the largest of the UK’s 10 regional water supply and sewerage monopolies, serving about 8m people in Birmingham, Gloucester and the Bristol Channel area. It is one of three water companies listed on the London Stock Exchange, while the others are owned mostly by overseas investors, including sovereign wealth and private equity funds.
The opposition Labour party has set out plans to renationalise UK water companies should it win a general election. Shadow chancellor John McDonnell has said a Labour government would pay less than £15bn to investors when it renationalises the industry, compared with an estimated £44bn market value of their investments.
#UAE's Gulf Capital eyes acquisitions, plans new fund - CEO - Reuters
UAE's Gulf Capital eyes acquisitions, plans new fund - CEO - Reuters:
Gulf Capital said on Monday it had bought a majority stake in health aesthetics firm Medica Holding and was looking for more acquisitions in the Middle East, Africa and Southeast Asia.
United Arab Emirates-based private equity firm Gulf Capital bought a 70 percent stake in Medica, which provides aesthetics, cosmetics and dermatology equipment and products in the Middle East. It did not disclose the deal value.
“We are willing to fund any bolt-on acquisitions. We are looking at two acquisitions in the Gulf, a joint venture in Africa and also in southeast Asia,” Karim el Solh, chief executive of Gulf Capital, told Reuters.
Gulf Capital said on Monday it had bought a majority stake in health aesthetics firm Medica Holding and was looking for more acquisitions in the Middle East, Africa and Southeast Asia.
United Arab Emirates-based private equity firm Gulf Capital bought a 70 percent stake in Medica, which provides aesthetics, cosmetics and dermatology equipment and products in the Middle East. It did not disclose the deal value.
“We are willing to fund any bolt-on acquisitions. We are looking at two acquisitions in the Gulf, a joint venture in Africa and also in southeast Asia,” Karim el Solh, chief executive of Gulf Capital, told Reuters.
#Qatar Petroleum awards pipelines design contract for North Field project - Reuters
Qatar Petroleum awards pipelines design contract for North Field project - Reuters:
Qatar Petroleum awarded McDermott Middle East Inc. an engineering and design contract for pipelines and other facilities in the project to expand the offshore North Field, the energy firm said on Monday.
The contract is a front end engineering design (FEED) contract, the Qatari firm said in an emailed statement.
Qatar Petroleum awarded McDermott Middle East Inc. an engineering and design contract for pipelines and other facilities in the project to expand the offshore North Field, the energy firm said on Monday.
The contract is a front end engineering design (FEED) contract, the Qatari firm said in an emailed statement.
MIDEAST STOCKS- #Saudi slips in wider Gulf falls ahead of holiday - Reuters
MIDEAST STOCKS-Saudi slips in wider Gulf falls ahead of holiday - Reuters:
Saudi Arabian stocks were weighed down by falls in financial shares on Monday as Gulf markets slipped ahead of Eid al-Fitr.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia and at least three days in other Gulf countries.
Saudi’s stock index was down 0.3%, with market heavyweight Al Rajhi Bank shedding 0.9% and Samba Financial Group dropping 2%, while Arabian Centres dipped 1.9%. The mall operator’s stock has fallen in all four sessions since its listing on May 22.
Saudi Arabian stocks were weighed down by falls in financial shares on Monday as Gulf markets slipped ahead of Eid al-Fitr.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia and at least three days in other Gulf countries.
Saudi’s stock index was down 0.3%, with market heavyweight Al Rajhi Bank shedding 0.9% and Samba Financial Group dropping 2%, while Arabian Centres dipped 1.9%. The mall operator’s stock has fallen in all four sessions since its listing on May 22.
Trump Says He's Not Looking to Topple Iranian Leadership - Bloomberg
Trump Says He's Not Looking to Topple Iranian Leadership - Bloomberg:
U.S. President Donald Trump said he isn’t pursuing regime change in Iran and his main goal is to ensure the Gulf country won’t develop nuclear weapons.
Iran “has a chance to be a great country with the same leadership,’’ Trump said at a joint press conference in Tokyo on Monday alongside Japanese Prime Minister Shinzo Abe. “We are not looking for regime change. I just want to make that clear.’’
Iranian officials have said that the raft of U.S. sanctions against their country, which was tightened last month, is aimed at fueling popular dissent in an effort to topple the leadership.
U.S. President Donald Trump said he isn’t pursuing regime change in Iran and his main goal is to ensure the Gulf country won’t develop nuclear weapons.
Iran “has a chance to be a great country with the same leadership,’’ Trump said at a joint press conference in Tokyo on Monday alongside Japanese Prime Minister Shinzo Abe. “We are not looking for regime change. I just want to make that clear.’’
Iranian officials have said that the raft of U.S. sanctions against their country, which was tightened last month, is aimed at fueling popular dissent in an effort to topple the leadership.
BoAML Sees Valuation Concerns in #Saudi Stock Market – Bloomberg
BoAML Sees Valuation Concerns in Saudi Stock Market – Bloomberg:
Hootan Yazhari, head of MENA and global frontier markets at Bank of America Merrill Lynch, talks about Saudi Arabian stocks and bonds. He speaks on "Bloomberg Daybreak: MIddle East." (Source: Bloomberg)
Hootan Yazhari, head of MENA and global frontier markets at Bank of America Merrill Lynch, talks about Saudi Arabian stocks and bonds. He speaks on "Bloomberg Daybreak: MIddle East." (Source: Bloomberg)
Oil Holds Gain as U.S. Rigs Data Gives Respite From Trade Gloom - Bloomberg
Oil Holds Gain as U.S. Rigs Data Gives Respite From Trade Gloom - Bloomberg:
Oil held gains above $58 a barrel after American explorers reduced drilling activity to the least in more than a year, providing some respite from a demand outlook thrown into doubt by the U.S.-China trade war.
Futures in New York edged lower after closing up 1.2% on Friday. Working U.S. rigs fell for the fifth time in six weeks to reach the lowest level since March 2018, according to Baker Hughes data released Friday. As tensions with China simmer, President Donald Trump is in Tokyo to try and reach a deal after the White House threatened to raise tariffs on Japanese cars.
Oil posted its biggest loss of the year last week -- including a 5.7% drop on Thursday -- as the intensifying trade war caused investors to reassess their outlook for the global economy. Even before the plunge, money managers had reduced bullish bets on West Texas Intermediate to the lowest in two months. Meanwhile, the situation in the Middle East remained tense but didn’t worsen, allaying fears that crude shipments would be disrupted.
Oil held gains above $58 a barrel after American explorers reduced drilling activity to the least in more than a year, providing some respite from a demand outlook thrown into doubt by the U.S.-China trade war.
Futures in New York edged lower after closing up 1.2% on Friday. Working U.S. rigs fell for the fifth time in six weeks to reach the lowest level since March 2018, according to Baker Hughes data released Friday. As tensions with China simmer, President Donald Trump is in Tokyo to try and reach a deal after the White House threatened to raise tariffs on Japanese cars.
Oil posted its biggest loss of the year last week -- including a 5.7% drop on Thursday -- as the intensifying trade war caused investors to reassess their outlook for the global economy. Even before the plunge, money managers had reduced bullish bets on West Texas Intermediate to the lowest in two months. Meanwhile, the situation in the Middle East remained tense but didn’t worsen, allaying fears that crude shipments would be disrupted.
Gulf's Weakest Links See Cost of Money Rise With Political Risk - Bloomberg
Gulf's Weakest Links See Cost of Money Rise With Political Risk - Bloomberg:
Bahrain and Oman may have missed a golden opportunity to lock in cheap foreign financing.
Ever since tensions between Iran and its Arab neighbors began boiling over this month, the countries’ bonds have been leading losses across the six-nation Gulf Cooperation Council. The sell-off is unwinding gains that pushed the yield on Bahrain’s 10-year dollar debt to an all-time low in April, and that on Oman’s equivalent note to a six-month low earlier in May.
If the rout has legs, the higher borrowing costs could strain the nations’ public finances, already considered the weakest in the region. Oman risks slipping deeper into junk-level credit ratings, while Bahrain’s ability to eliminate a budget deficit remains a challenge, according to S&P Global Ratings. The island kingdom plans to return to international bond markets this year for the first time since its Gulf allies pledged a $10 billion aid package.
Bahrain and Oman may have missed a golden opportunity to lock in cheap foreign financing.
Ever since tensions between Iran and its Arab neighbors began boiling over this month, the countries’ bonds have been leading losses across the six-nation Gulf Cooperation Council. The sell-off is unwinding gains that pushed the yield on Bahrain’s 10-year dollar debt to an all-time low in April, and that on Oman’s equivalent note to a six-month low earlier in May.
If the rout has legs, the higher borrowing costs could strain the nations’ public finances, already considered the weakest in the region. Oman risks slipping deeper into junk-level credit ratings, while Bahrain’s ability to eliminate a budget deficit remains a challenge, according to S&P Global Ratings. The island kingdom plans to return to international bond markets this year for the first time since its Gulf allies pledged a $10 billion aid package.
#Saudi Maaden Said to Weigh Rights Issue of as Much as $5 Billion - Bloomberg
Saudi Maaden Said to Weigh Rights Issue of as Much as $5 Billion - Bloomberg:
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering to finance potential acquisitions, according to people with knowledge of the matter.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller than $5 billion, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering to finance potential acquisitions, according to people with knowledge of the matter.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller than $5 billion, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
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