Monday 3 June 2019
Gazprom Shares Soar as Investors Expect Management Changes - Bloomberg
Gazprom Shares Soar as Investors Expect Management Changes - Bloomberg:
Gazprom PJSC surged to a decade-high in Moscow on speculation the world’s largest natural-gas exporter will make more changes to senior management.
The shares rose as much as 17% to 251.65 rubles on Monday, the highest since August 2008. The stock has recently rallied on plans for higher dividends, while moves by Chief Executive Officer Alexey Miller to replace several long-serving lieutenants have prompted expectations of more hires and governance changes.
“Market speculation about new executive reshuffles and appointments at Gazprom are now moving the shares,” Andrey Polischuk, a Moscow-based energy analyst at Raiffeisenbank, said by phone. “The market hopes the new executives will increase the company’s efficiency.”
Gazprom PJSC surged to a decade-high in Moscow on speculation the world’s largest natural-gas exporter will make more changes to senior management.
The shares rose as much as 17% to 251.65 rubles on Monday, the highest since August 2008. The stock has recently rallied on plans for higher dividends, while moves by Chief Executive Officer Alexey Miller to replace several long-serving lieutenants have prompted expectations of more hires and governance changes.
“Market speculation about new executive reshuffles and appointments at Gazprom are now moving the shares,” Andrey Polischuk, a Moscow-based energy analyst at Raiffeisenbank, said by phone. “The market hopes the new executives will increase the company’s efficiency.”
#Israel’s Cold Peace With #SaudiArabia Has a Dark Side - Bloomberg
Israel’s Cold Peace With Saudi Arabia Has a Dark Side - Bloomberg:
When Israeli and Saudi officials publicly acknowledged their quiet thawing of relations in 2015, the U.S. and other Western allies were encouraged. Yes, the Middle East was unraveling elsewhere, but two longtime foes were making common cause against Iran.
This cold peace has its benefits.
But in the last year, a darker side has come into focus.
Consider a Palestinian blogger and journalist named Iyad Al-Baghdadi, now living in exile in Norway.
Last month he disclosed that Norwegian authorities informed him that he was a target of Saudi Arabia, which used a powerful Israeli-made cyberweapon to hack his phone. Al-Baghdadi worries that his life could be in danger from Saudi operatives.
When Israeli and Saudi officials publicly acknowledged their quiet thawing of relations in 2015, the U.S. and other Western allies were encouraged. Yes, the Middle East was unraveling elsewhere, but two longtime foes were making common cause against Iran.
This cold peace has its benefits.
But in the last year, a darker side has come into focus.
Consider a Palestinian blogger and journalist named Iyad Al-Baghdadi, now living in exile in Norway.
Last month he disclosed that Norwegian authorities informed him that he was a target of Saudi Arabia, which used a powerful Israeli-made cyberweapon to hack his phone. Al-Baghdadi worries that his life could be in danger from Saudi operatives.
Oil falls as trade worries mount, Saudi comments limit losses - Reuters
Oil falls as trade worries mount, Saudi comments limit losses - Reuters:
Oil fell on Monday as U.S. trade disputes with Mexico and China deepened concerns about weakening global crude demand, while a slump in equities also weighed on crude futures.
Brent crude futures settled at $61.28 a barrel, losing 71 cents, or 1.2%. U.S. West Texas Intermediate (WTI) crude ended 25 cents, or 0.5%, lower at $53.25 a barrel.
Mexico said it would reject a U.S. idea to take in Central American asylum seekers if it is raised at talks this week with U.S. President Donald Trump’s administration, which is threatening the tariffs over immigration concerns.
Oil fell on Monday as U.S. trade disputes with Mexico and China deepened concerns about weakening global crude demand, while a slump in equities also weighed on crude futures.
Brent crude futures settled at $61.28 a barrel, losing 71 cents, or 1.2%. U.S. West Texas Intermediate (WTI) crude ended 25 cents, or 0.5%, lower at $53.25 a barrel.
Mexico said it would reject a U.S. idea to take in Central American asylum seekers if it is raised at talks this week with U.S. President Donald Trump’s administration, which is threatening the tariffs over immigration concerns.
Australia risks status as a natural gas superpower | Financial Times
Australia risks status as a natural gas superpower | Financial Times:
As a $200bn wave of new global investment gets under way, the energy industry is warning that chaotic policymaking and overseas competition are threatening to cut short Australia’s tenure as the world’s biggest exporter of liquefied natural gas.
The energy companies say the government has failed to deliver coherent climate and energy policies, appears willing to intervene for the benefit of local industry over LNG exporters and has been unable to approve more gas exploration.
“Australia’s policies are somewhat uncertain with calls for government intervention — that raises concerns,” Ryan Lance, ConocoPhillips’ chief executive, said at Australia’s largest oil and gas conference last week. “We are seeking clarity and stability to provide confidence around the viability of Australian investments.”
As a $200bn wave of new global investment gets under way, the energy industry is warning that chaotic policymaking and overseas competition are threatening to cut short Australia’s tenure as the world’s biggest exporter of liquefied natural gas.
The energy companies say the government has failed to deliver coherent climate and energy policies, appears willing to intervene for the benefit of local industry over LNG exporters and has been unable to approve more gas exploration.
“Australia’s policies are somewhat uncertain with calls for government intervention — that raises concerns,” Ryan Lance, ConocoPhillips’ chief executive, said at Australia’s largest oil and gas conference last week. “We are seeking clarity and stability to provide confidence around the viability of Australian investments.”
Saudis Take Iran's Oil-Market Share, Keeping OPEC Supply Steady - Bloomberg
Saudis Take Iran's Oil-Market Share, Keeping OPEC Supply Steady - Bloomberg:
Saudi Arabia ramped up oil production last month by the most this year, largely filling the gap created by tougher U.S. sanctions on its political rival, Iran.
Iranian output plunged in May to the lowest since 1990 as the Trump administration threatened penalties for anyone trading with the Islamic Republic, according to a Bloomberg survey of officials, analysts and ship-tracking data.
Nonetheless, the production boost by Riyadh, along with increases in fellow OPEC members Libya and Iraq, meant that overall output from the group remained unchanged in May from the previous month. OPEC pumps about 40% of the world’s oil supplies.
Saudi Arabia ramped up oil production last month by the most this year, largely filling the gap created by tougher U.S. sanctions on its political rival, Iran.
Iranian output plunged in May to the lowest since 1990 as the Trump administration threatened penalties for anyone trading with the Islamic Republic, according to a Bloomberg survey of officials, analysts and ship-tracking data.
Nonetheless, the production boost by Riyadh, along with increases in fellow OPEC members Libya and Iraq, meant that overall output from the group remained unchanged in May from the previous month. OPEC pumps about 40% of the world’s oil supplies.
COLUMN-Hedge funds accelerate oil sales as economy worsens: Kemp - Reuters
COLUMN-Hedge funds accelerate oil sales as economy worsens: Kemp - Reuters:
Hedge fund managers have stepped up their sales of crude oil and refined fuels amid growing concerns about the outlook for the world economy and oil consumption.
Hedge funds and other money managers sold 122 million barrels in the six major petroleum futures and options contracts during the week to May 28, the heaviest one-week selling since October 2018.
Fund managers sold Brent (41 million barrels), NYMEX and ICE West Texas Intermediate (38 million barrels), U.S. gasoline (11 million barrels), U.S. heating oil (12 million barrels) and European gasoil (20 million barrels).
Hedge fund managers have stepped up their sales of crude oil and refined fuels amid growing concerns about the outlook for the world economy and oil consumption.
Hedge funds and other money managers sold 122 million barrels in the six major petroleum futures and options contracts during the week to May 28, the heaviest one-week selling since October 2018.
Fund managers sold Brent (41 million barrels), NYMEX and ICE West Texas Intermediate (38 million barrels), U.S. gasoline (11 million barrels), U.S. heating oil (12 million barrels) and European gasoil (20 million barrels).
Oil prices rebound on #Saudi supply reassurances - Reuters
Oil prices rebound on Saudi supply reassurances - Reuters:
Oil prices rebounded from last week’s heavy losses on Monday after reassurances over production from top oil exporter Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC).
Saudi Arabia indicated that the group of oil producers, together with Russia, would continue managing global crude supplies to avoid a surplus.
“We will do what is needed to sustain market stability beyond June. To me, that means drawing down inventories from their currently elevated levels,” Energy Minister Khalid al-Falih was quoted as saying by the Saudi-owned Arab News newspaper.
Front-month Brent crude futures were at $62.40 at 1150 GMT, up 41 cents, or 0.66%, above Friday’s close. Prices dropped by more than 3% on Friday, with May recording the biggest monthly loss in six months.
U.S. West Texas Intermediate (WTI) crude futures were at $54.17 per barrel, up 67 cents, or 1.25%.
Oil prices rebounded from last week’s heavy losses on Monday after reassurances over production from top oil exporter Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC).
Saudi Arabia indicated that the group of oil producers, together with Russia, would continue managing global crude supplies to avoid a surplus.
“We will do what is needed to sustain market stability beyond June. To me, that means drawing down inventories from their currently elevated levels,” Energy Minister Khalid al-Falih was quoted as saying by the Saudi-owned Arab News newspaper.
Front-month Brent crude futures were at $62.40 at 1150 GMT, up 41 cents, or 0.66%, above Friday’s close. Prices dropped by more than 3% on Friday, with May recording the biggest monthly loss in six months.
U.S. West Texas Intermediate (WTI) crude futures were at $54.17 per barrel, up 67 cents, or 1.25%.
MIDEAST STOCKS- #Qatar and Egypt rise, other Gulf markets closed for holiday - Reuters
MIDEAST STOCKS-Qatar and Egypt rise, other Gulf markets closed for holiday - Reuters:
Stock markets in Qatar and Egypt rose on
Monday, while other Gulf markets, including Saudi Arabia, are
closed for the Eid ul-Fitr holiday.
QATAR The index .QSI rose 1.5 % to 10,319 points
EGYPT The index .EGX30 gained 0.7% to 13,789 points
BAHRAIN The index .BAX was flat at 1,435 points
OMAN The index .MSI edged up 0.1% to 3,942 points
KUWAIT The index .BKP was up 0.8% to 6,276 points
Stock markets in Qatar and Egypt rose on
Monday, while other Gulf markets, including Saudi Arabia, are
closed for the Eid ul-Fitr holiday.
QATAR The index .QSI rose 1.5 % to 10,319 points
EGYPT The index .EGX30 gained 0.7% to 13,789 points
BAHRAIN The index .BAX was flat at 1,435 points
OMAN The index .MSI edged up 0.1% to 3,942 points
KUWAIT The index .BKP was up 0.8% to 6,276 points
#Qatar Criticizes Mecca Summits as Hopes for Reconciliation Fade - Bloomberg
Qatar Criticizes Mecca Summits as Hopes for Reconciliation Fade - Bloomberg:
Days after emergency summits on Iran raised hopes of a reconciliation between Qatar and its Gulf neighbors, their ministers were locked in a media spat.
Qatar’s foreign minister criticized statements at the three meetings Saudi Arabia convened in Mecca last week as too "hardline” to engage Tehran in dialogue.
They "adopted Washington’s policy toward Iran and not one that takes the neighborhood into consideration," Mohammed bin Abdulrahman bin Jassim Al Thani told Al Jazeera TV on Sunday. "Qatar has reservations on the Arab and Gulf summits because some of their terms are contrary to Doha’s foreign policy," he told the U.K.-based Al-Araby broadcaster.
Days after emergency summits on Iran raised hopes of a reconciliation between Qatar and its Gulf neighbors, their ministers were locked in a media spat.
Qatar’s foreign minister criticized statements at the three meetings Saudi Arabia convened in Mecca last week as too "hardline” to engage Tehran in dialogue.
They "adopted Washington’s policy toward Iran and not one that takes the neighborhood into consideration," Mohammed bin Abdulrahman bin Jassim Al Thani told Al Jazeera TV on Sunday. "Qatar has reservations on the Arab and Gulf summits because some of their terms are contrary to Doha’s foreign policy," he told the U.K.-based Al-Araby broadcaster.
Airline Cargoes Filled With Meat as Gulf Route Transforms Trade - Bloomberg
Airline Cargoes Filled With Meat as Gulf Route Transforms Trade - Bloomberg:
Passengers flying from Melbourne to the Gulf are almost certainly flying along with sheep carcasses down in the hold.
The strong demand for sheep meat in the Middle East means that the cargo space on passenger planes is now filled with fresh chilled lamb, hogget and mutton, according to a report by industry group Meat & Livestock Australia. With a value of A$476 million ($330 million) in 2018, the air trade between the areas overtook sea-freighted sheep meat for the first time.
Passengers flying from Melbourne to the Gulf are almost certainly flying along with sheep carcasses down in the hold.
The strong demand for sheep meat in the Middle East means that the cargo space on passenger planes is now filled with fresh chilled lamb, hogget and mutton, according to a report by industry group Meat & Livestock Australia. With a value of A$476 million ($330 million) in 2018, the air trade between the areas overtook sea-freighted sheep meat for the first time.
Oil Stabilizes After Rapid Slump Amid Fears of Global Trade War - Bloomberg
Oil Stabilizes After Rapid Slump Amid Fears of Global Trade War - Bloomberg:
Oil stabilized on Monday, giving traders a brief respite from the rapid slump driven by fears that increasingly aggressive U.S. trade policy could trigger an economic slowdown.
Futures in New York rose 0.7%. While there was no repeat of the 5.5% slump seen on Friday, the trade war still loomed over markets as China blamed the U.S. for the collapse in trade talks and said it won’t be pressured into concessions. Saudi Energy Minister Khalid Al-Falih called recent volatility ``unwarranted'' and reiterated his confidence that OPEC+ will keep taking action to stabilize the market beyond June.
The trade tensions mean oil has moved close to the edge of a bear market, having fallen almost 20% from a high in late April. A tense situation in the Middle East hasn't been enough to support prices. Meanwhile, there could be greater clarity this week on whether Russia will keep cooperating with Saudi Arabia on production cuts as ministers from the countries meet in St Petersburg.
Oil stabilized on Monday, giving traders a brief respite from the rapid slump driven by fears that increasingly aggressive U.S. trade policy could trigger an economic slowdown.
Futures in New York rose 0.7%. While there was no repeat of the 5.5% slump seen on Friday, the trade war still loomed over markets as China blamed the U.S. for the collapse in trade talks and said it won’t be pressured into concessions. Saudi Energy Minister Khalid Al-Falih called recent volatility ``unwarranted'' and reiterated his confidence that OPEC+ will keep taking action to stabilize the market beyond June.
The trade tensions mean oil has moved close to the edge of a bear market, having fallen almost 20% from a high in late April. A tense situation in the Middle East hasn't been enough to support prices. Meanwhile, there could be greater clarity this week on whether Russia will keep cooperating with Saudi Arabia on production cuts as ministers from the countries meet in St Petersburg.
Goldman Sachs sees oil prices steadying at current levels - Reuters
Goldman Sachs sees oil prices steadying at current levels - Reuters:
Crude oil prices are likely to remain steady around current levels, as growing macro uncertainties, rising U.S. output and large availability of core OPEC nations’ spare capacity will offset supply constraints from Iran and Venezuela, Goldman Sachs said.
The United States spooked markets worldwide with oil supply worries last month after it reimposed trade sanctions on Iran, one of the major global oil suppliers, bringing focus back on the Organization of the Petroleum Exporting Countries (OPEC).
Crude markets posted their biggest monthly losses in six months in May amid stalling demand and as trade wars fanned fears of a global economic slowdown.
Crude oil prices are likely to remain steady around current levels, as growing macro uncertainties, rising U.S. output and large availability of core OPEC nations’ spare capacity will offset supply constraints from Iran and Venezuela, Goldman Sachs said.
The United States spooked markets worldwide with oil supply worries last month after it reimposed trade sanctions on Iran, one of the major global oil suppliers, bringing focus back on the Organization of the Petroleum Exporting Countries (OPEC).
Crude markets posted their biggest monthly losses in six months in May amid stalling demand and as trade wars fanned fears of a global economic slowdown.
Bahrain to allow foreign companies to take 100% stakes in oil, natural gas extraction projects -news agency | ZAWYA MENA Edition
Bahrain to allow foreign companies to take 100% stakes in oil, natural gas extraction projects -news agency | ZAWYA MENA Edition:
Bahrain is to allow foreign companies to own 100 percent of oil and natural gas extraction projects in the Gulf state, under an order issued by Prime Minister Sheikh Khalifa bin Salman al Khalifa on Sunday, Bahrain News Agency reported.
To be eligible, the foreign parent company must have signed, or be in the final stages of signing, an exploration and production agreement with the government.
Bahrain is to allow foreign companies to own 100 percent of oil and natural gas extraction projects in the Gulf state, under an order issued by Prime Minister Sheikh Khalifa bin Salman al Khalifa on Sunday, Bahrain News Agency reported.
To be eligible, the foreign parent company must have signed, or be in the final stages of signing, an exploration and production agreement with the government.
Britain's INEOS to invest $2bln in Saudi petrochemical complex | ZAWYA MENA Edition
Britain's INEOS to invest $2bln in Saudi petrochemical complex | ZAWYA MENA Edition:
Billionaire Jim Ratcliffe's INEOS said on Monday it would invest $2 billion to build three plants that would form part of petrochemical complex being developed in Saudi Arabia by state-owned Saudi Aramco and France's Total.
INEOS' plants would be part of a $5 billion complex called Project Amiral that aimed to supply more than $4 billion of derivatives and speciality chemicals, the company said.
"We are bringing advanced downstream technology which will add value and create further jobs in the kingdom," Ratcliffe, INEOS' chairman, said in a statement to announce the deal with Aramco and Total.
Billionaire Jim Ratcliffe's INEOS said on Monday it would invest $2 billion to build three plants that would form part of petrochemical complex being developed in Saudi Arabia by state-owned Saudi Aramco and France's Total.
INEOS' plants would be part of a $5 billion complex called Project Amiral that aimed to supply more than $4 billion of derivatives and speciality chemicals, the company said.
"We are bringing advanced downstream technology which will add value and create further jobs in the kingdom," Ratcliffe, INEOS' chairman, said in a statement to announce the deal with Aramco and Total.
Oil prices extend drop as trade wars stoke global economic fears - Reuters
Oil prices extend drop as trade wars stoke global economic fears - Reuters:
Oil prices fell more than 1% on Monday to extend losses of over 3% from Friday, when crude markets racked up their biggest monthly losses in six months amid stalling demand as trade wars fanned fears of a slowdown in the global economy.
Front-month Brent crude futures, the international benchmark for oil prices, were at $60.97 at 0044 GMT. That was $1.02 cents, or 1.7%, below last session’s close.
U.S. West Texas Intermediate (WTI) crude futures were at $52.71 per barrel, down 79 cents, or 1.5%.
Oil prices fell more than 1% on Monday to extend losses of over 3% from Friday, when crude markets racked up their biggest monthly losses in six months amid stalling demand as trade wars fanned fears of a slowdown in the global economy.
Front-month Brent crude futures, the international benchmark for oil prices, were at $60.97 at 0044 GMT. That was $1.02 cents, or 1.7%, below last session’s close.
U.S. West Texas Intermediate (WTI) crude futures were at $52.71 per barrel, down 79 cents, or 1.5%.
#Saudi's Falih says OPEC+ consensus emerging on output deal in second half - Reuters
Saudi's Falih says OPEC+ consensus emerging on output deal in second half - Reuters:
Saudi Energy Minister Khalid al-Falih said consensus was emerging among the OPEC+ group of oil producers to continue working towards oil market stability in the second half of the year, the Saudi-owned Arab News newspaper reported on Monday.
Oil prices in May sustained their worst monthly fall in six months on worries that trade disputes would hit demand for crude.
Saudi Arabia produced 9.65 million barrels per day (bpd) of oil in May, a Saudi industry source said, a deeper cut than its target set by the Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+.
Saudi Energy Minister Khalid al-Falih said consensus was emerging among the OPEC+ group of oil producers to continue working towards oil market stability in the second half of the year, the Saudi-owned Arab News newspaper reported on Monday.
Oil prices in May sustained their worst monthly fall in six months on worries that trade disputes would hit demand for crude.
Saudi Arabia produced 9.65 million barrels per day (bpd) of oil in May, a Saudi industry source said, a deeper cut than its target set by the Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+.
Collapsed Jet Airways' ex-partners, rivals scramble to fill India capacity void - Reuters
Collapsed Jet Airways' ex-partners, rivals scramble to fill India capacity void - Reuters:
Former partners and rivals of Jet Airways Ltd are launching replacement routes and looking for new codeshare partners as they scramble to fill a lucrative gap left by the collapse of the India’s once-largest international airline.
Jet, which halted operations on April 17 after running out of cash, had a market share of around 12 percent on international flights to and from India in 2018, according to government statistics, outstripping even national carrier Air India.
In Jet’s absence, cash-strapped Air India is the only Indian carrier that operates widebody jets capable of non-stop flights to Europe and the United States, although the Vistara joint venture owned by Tata Sons and Singapore Airlines Ltd has 6 Boeing Co 787s on order due for delivery from next year.
Former partners and rivals of Jet Airways Ltd are launching replacement routes and looking for new codeshare partners as they scramble to fill a lucrative gap left by the collapse of the India’s once-largest international airline.
Jet, which halted operations on April 17 after running out of cash, had a market share of around 12 percent on international flights to and from India in 2018, according to government statistics, outstripping even national carrier Air India.
In Jet’s absence, cash-strapped Air India is the only Indian carrier that operates widebody jets capable of non-stop flights to Europe and the United States, although the Vistara joint venture owned by Tata Sons and Singapore Airlines Ltd has 6 Boeing Co 787s on order due for delivery from next year.
#Qatar says it has reservations about Arab statements on Iran - Reuters
Qatar says it has reservations about Arab statements on Iran - Reuters:
Qatar said on Sunday it has reservations about hardline statements on Iran made at emergency summits of Gulf and wider Arab states called by Saudi Arabia, becoming the second Arab country to reject the statement following Iraq.
Qatar’s foreign minister, Sheikh Mohammed bin Abdulrahman Al-Thani, said statements at the summits were not adopted using traditional procedures.
“The statements condemned Iran but did not refer to a moderate policy to speak with Tehran,” he said in remarks reported by Qatar’s state-owned Al Jazeera television.
Qatar said on Sunday it has reservations about hardline statements on Iran made at emergency summits of Gulf and wider Arab states called by Saudi Arabia, becoming the second Arab country to reject the statement following Iraq.
Qatar’s foreign minister, Sheikh Mohammed bin Abdulrahman Al-Thani, said statements at the summits were not adopted using traditional procedures.
“The statements condemned Iran but did not refer to a moderate policy to speak with Tehran,” he said in remarks reported by Qatar’s state-owned Al Jazeera television.