OPEC Says It's Alert to Bearish Economy, Will Balance Market - Bloomberg:
OPEC and its partners will take the current “economic bearishness” into account when they meet in coming weeks, and are committed to keeping oil markets balanced this year and beyond, its top official said.
The organization will be “unyielding” in its efforts to reduce oil inventories back to normal levels and revive investment in the industry, taking an approach that is “agile” and “flexible,” OPEC Secretary-General Mohammad Barkindo said in remarks delivered via video link at a conference hosted by RBC Capital Markets in New York.
“There has also been a significant change in market sentiment, in both equity and financial markets” that has worsened many institutions’ outlook for oil demand growth, Barkindo said. “This will all play into our calculations in the upcoming ministerial meetings.”
Wednesday 5 June 2019
#SaudiArabia's Embargo of #Qatar Is a Big Fat Zero - Bloomberg
Saudi Arabia's Embargo of Qatar Is a Big Fat Zero - Bloomberg:
Two years ago today, the tottering edifice known as the Gulf Cooperation Council collapsed in a heap when three of its members—Saudi Arabia, the United Arab Emirates and Bahrain—announced an embargo on a fourth, Qatar. The troika, joined by Egypt, claimed to be punishing the rulers in Doha for an array of sins, including their relationships with Iran and the Muslim Brotherhood.
Their calculation: An embargo would shake Qatar’s economy and weaken its ruling Al Thani family, forcing them, among other things, to fall in line with the Saudi-led Arab phalanx against Iran.
The embargo has conspicuously failed. Powered by some of the world’s largest reserves of natural gas, the Qatari economy quickly shook off the straitjacket, even earning a word of praise from Saudi Crown Prince Mohammed bin Salman. By holding out against external pressure, the Al Thanis have grown, if anything, stronger: Emir Tamim bin Hamad Al Thani enjoys the status of a resistance hero, complete with a Che-like iconic image—dubbed “Tamim the Glorious”—that is plastered all over Doha.
Two years ago today, the tottering edifice known as the Gulf Cooperation Council collapsed in a heap when three of its members—Saudi Arabia, the United Arab Emirates and Bahrain—announced an embargo on a fourth, Qatar. The troika, joined by Egypt, claimed to be punishing the rulers in Doha for an array of sins, including their relationships with Iran and the Muslim Brotherhood.
Their calculation: An embargo would shake Qatar’s economy and weaken its ruling Al Thani family, forcing them, among other things, to fall in line with the Saudi-led Arab phalanx against Iran.
The embargo has conspicuously failed. Powered by some of the world’s largest reserves of natural gas, the Qatari economy quickly shook off the straitjacket, even earning a word of praise from Saudi Crown Prince Mohammed bin Salman. By holding out against external pressure, the Al Thanis have grown, if anything, stronger: Emir Tamim bin Hamad Al Thani enjoys the status of a resistance hero, complete with a Che-like iconic image—dubbed “Tamim the Glorious”—that is plastered all over Doha.
The Role of Women in #SaudiArabia's Home Ownership Goal – Bloomberg
The Role of Women in Saudi Arabia's Home Ownership Goal – Bloomberg:
Saudi Arabia's government is aiming to increase home ownership among citizens to 70% by 2030. Karen Young, resident scholar at the American Enterprise Institute tells BTV's Annmarie Hordern that the key to Saudi Arabia's housing goals lies in more women getting jobs and mortgages. (Source: Bloomberg)
Saudi Arabia's government is aiming to increase home ownership among citizens to 70% by 2030. Karen Young, resident scholar at the American Enterprise Institute tells BTV's Annmarie Hordern that the key to Saudi Arabia's housing goals lies in more women getting jobs and mortgages. (Source: Bloomberg)
Oil Sinks Into Bear Market as U.S. Storage Jumps Most Since 1990 - Bloomberg
Oil Sinks Into Bear Market as U.S. Storage Jumps Most Since 1990 - Bloomberg:
West Texas Intermediate crude entered a bear market and Brent tumbled below $60 after U.S. petroleum inventories ballooned, raising fears of a glut as trade disputes threaten demand.
U.S. crude settled 22 percent lower than its April peak after tumbling as much as 5.4%. Brent sank to the lowest since January. U.S. government data showed America’s total petroleum stockpiles grew by about 22 million barrels last week, the biggest jump in data going back to 1990. U.S. crude production also set a record, while imports climbed.
“I wouldn’t be surprised to see a real meltdown in the prices today,’’ Matt Sallee, a portfolio manager at Tortoise Capital Advisors LLC, said by phone. ‘‘Until something changes the mood, which maybe would be a breakthrough in trade, I don’t see any reason crude is going to improve over the next week.’’
West Texas Intermediate crude entered a bear market and Brent tumbled below $60 after U.S. petroleum inventories ballooned, raising fears of a glut as trade disputes threaten demand.
U.S. crude settled 22 percent lower than its April peak after tumbling as much as 5.4%. Brent sank to the lowest since January. U.S. government data showed America’s total petroleum stockpiles grew by about 22 million barrels last week, the biggest jump in data going back to 1990. U.S. crude production also set a record, while imports climbed.
“I wouldn’t be surprised to see a real meltdown in the prices today,’’ Matt Sallee, a portfolio manager at Tortoise Capital Advisors LLC, said by phone. ‘‘Until something changes the mood, which maybe would be a breakthrough in trade, I don’t see any reason crude is going to improve over the next week.’’
Oil slumps on U.S. crude stock build, WTI touches January low - Reuters
Oil slumps on U.S. crude stock build, WTI touches January low - Reuters:
Oil prices fell on Wednesday, with West Texas Intermediate crude futures (WTI) dropping to its lowest since January after U.S. crude inventories unexpectedly surged, adding to concerns about slowing global growth.
Futures strengthened slightly early in the session and then plunged after U.S. inventory data was released.
Brent futures settled down $1.34, or 2.2%, at $60.63 a barrel. WTI ended $1.80, or 3.4%, lower at $51.68 a barrel. During the session, WTI touched a low of $50.60 a barrel, its lowest since Jan. 14.
Oil prices fell on Wednesday, with West Texas Intermediate crude futures (WTI) dropping to its lowest since January after U.S. crude inventories unexpectedly surged, adding to concerns about slowing global growth.
Futures strengthened slightly early in the session and then plunged after U.S. inventory data was released.
Brent futures settled down $1.34, or 2.2%, at $60.63 a barrel. WTI ended $1.80, or 3.4%, lower at $51.68 a barrel. During the session, WTI touched a low of $50.60 a barrel, its lowest since Jan. 14.
Plastic Trash Crackdown Worries Oil Companies Like Shell, Exxon - Bloomberg
Plastic Trash Crackdown Worries Oil Companies Like Shell, Exxon - Bloomberg:
As the world strives to wean itself off fossil fuels, oil companies have been turning to plastic as the key to their future. Now even that’s looking overly optimistic.
The global crackdown on plastic trash threatens to take a big chunk out of demand growth just as oil companies like Saudi Aramco sink billions into plastic and chemicals assets. Royal Dutch Shell Plc, BP Plc, Total SA and Exxon Mobil Corp. are all ramping up investments in the sector.
Renewed emphasis on recycling and the spread of local bans on some kinds of plastic products could cut petrochemical demand growth to one-third of its historical pace, to about 1.5% a year, said Paul Bjacek, a principal director at consulting firm Accenture Plc.
As the world strives to wean itself off fossil fuels, oil companies have been turning to plastic as the key to their future. Now even that’s looking overly optimistic.
The global crackdown on plastic trash threatens to take a big chunk out of demand growth just as oil companies like Saudi Aramco sink billions into plastic and chemicals assets. Royal Dutch Shell Plc, BP Plc, Total SA and Exxon Mobil Corp. are all ramping up investments in the sector.
Renewed emphasis on recycling and the spread of local bans on some kinds of plastic products could cut petrochemical demand growth to one-third of its historical pace, to about 1.5% a year, said Paul Bjacek, a principal director at consulting firm Accenture Plc.
With cows, chickens and greenhouses, #Qatar takes on regional boycott - Reuters
With cows, chickens and greenhouses, Qatar takes on regional boycott - Reuters:
Two years after flying in thousands of dairy cows to beat a trade embargo, Qatari milk producer Baladna has made its first exports.
Qatar is the world’s top liquefied natural gas exporter but a net importer of nearly everything else. The small but wealthy country has been under a trade and transport boycott by Saudi Arabia and its allies since June 2017 that has forced it to retool an economy once heavily reliant on fellow Gulf states.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt accuse Qatar of supporting Islamist terrorist groups. Doha denies this and says the boycott, which closed its only land border and disrupted shipping routes, is an attempt to infringe on its sovereignty.
Two years after flying in thousands of dairy cows to beat a trade embargo, Qatari milk producer Baladna has made its first exports.
Qatar is the world’s top liquefied natural gas exporter but a net importer of nearly everything else. The small but wealthy country has been under a trade and transport boycott by Saudi Arabia and its allies since June 2017 that has forced it to retool an economy once heavily reliant on fellow Gulf states.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt accuse Qatar of supporting Islamist terrorist groups. Doha denies this and says the boycott, which closed its only land border and disrupted shipping routes, is an attempt to infringe on its sovereignty.
Oil prices fall on rise in U.S. inventories, supply worries | ZAWYA MENA Edition
Oil prices fall on rise in U.S. inventories, supply worries | ZAWYA MENA Edition:
Oil prices resumed their slide on Wednesday, dragged down by a surpise gain in U.S. inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies.
Brent futures were down 27 cents, or 0.4%, at $61.70 a barrel by 0152 GMT. They rose 1.1% on Tuesday after a near 13 percent fall in the previous four sessions.
U.S. West Texas Intermediate (WTI) crude CLc1 was down by 32 cents, or 0.6%, at $53.16 a barrel. The U.S. benchmark closed 0.4% higher on Tuesday.
Oil prices resumed their slide on Wednesday, dragged down by a surpise gain in U.S. inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies.
Brent futures were down 27 cents, or 0.4%, at $61.70 a barrel by 0152 GMT. They rose 1.1% on Tuesday after a near 13 percent fall in the previous four sessions.
U.S. West Texas Intermediate (WTI) crude CLc1 was down by 32 cents, or 0.6%, at $53.16 a barrel. The U.S. benchmark closed 0.4% higher on Tuesday.
Trump prepared to talk to Iran but says always a chance of military action - Reuters
Trump prepared to talk to Iran but says always a chance of military action - Reuters:
U.S. President Donald Trump said he was prepared to talk to Iranian President Hassan Rouhani but that there was always a chance of U.S. military action against the Islamic Republic.
“So Iran is a place that was extremely hostile when I first came into office,” Trump told British television station ITV. “They were a terrorist nation number one in the world at that time and probably maybe are today.”
When asked if he thought he would need to take military action, he said: “There’s always a chance. Do I want to? No. I’d rather not. But there’s always a chance.”
U.S. President Donald Trump said he was prepared to talk to Iranian President Hassan Rouhani but that there was always a chance of U.S. military action against the Islamic Republic.
“So Iran is a place that was extremely hostile when I first came into office,” Trump told British television station ITV. “They were a terrorist nation number one in the world at that time and probably maybe are today.”
When asked if he thought he would need to take military action, he said: “There’s always a chance. Do I want to? No. I’d rather not. But there’s always a chance.”
Russian, Saudi energy ministries to meet on June 10 in Moscow - Reuters
Russian, Saudi energy ministries to meet on June 10 in Moscow - Reuters:
Russia and Saudi Arabia’s energy ministers, Alexander Novak and Khalid al-Falih, will chair a trade and economy commission in Moscow on June 10, the Russian energy ministry said on Wednesday.
Novak and Falih will discuss bilateral trade and economic cooperation, joint projects in energy and agriculture, the ministry said.
Russia and Saudi Arabia’s energy ministers, Alexander Novak and Khalid al-Falih, will chair a trade and economy commission in Moscow on June 10, the Russian energy ministry said on Wednesday.
Novak and Falih will discuss bilateral trade and economic cooperation, joint projects in energy and agriculture, the ministry said.
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