Oil Slips Below $54 as Trade Fears Outweigh U.S. Gasoline Demand - Bloomberg:
Oil slipped below $54 a barrel after a short-lived spike as anxieties about global trade and a supply glut overshadowed record gasoline consumption in the U.S.
Futures in New York closed 0.3% lower on Wednesday after earlier rising by almost 1%. The U.S. Energy Information Administration said domestic oil inventories fell by 3.1 million barrels last week, more than any of the 12 analysts in a Bloomberg survey expected. Demand for gasoline hit a record 9.93 million barrels a day and stockpiles of the motor fuel unexpectedly declined.
The report came hours after OPEC and its allies officially proposed an early July date to discuss new supply cuts, ending weeks of speculation about whether the group of major producers could overcome divisions. Saudi Arabia, Iraq and the United Arab Emirates -- OPEC’s three biggest members -- all want to keep restraining production amid signs of faltering economic growth, according to statements in recent days.
Wednesday, 19 June 2019
#Qatar Airways Wants to Launch Upgraded Boeing 777 Freighter - Bloomberg
Qatar Airways Wants to Launch Upgraded Boeing 777 Freighter - Bloomberg:
Qatar Airways would like to be the first customer for a freighter version of Boeing Co.’s 777X aircraft, and Chief Executive Officer Akbar Al Baker even suggested he’d prefer a mid-2020s debut.
The only problem: the U.S. planemaker hasn’t yet committed to build a cargo version of its upgraded wide-body passenger plane.
The Persian Gulf carrier that’s operating one of the industry’s biggest freighter fleets ordered five current-generation 777Fs on Wednesday in a deal worth $1.75 billion at list prices. Al Baker used a signing ceremony at the Paris Air Show to advocate for a larger, fuel-efficient model to fit with a wider cargo-fleet overhaul that will start in 2025.
Qatar Airways would like to be the first customer for a freighter version of Boeing Co.’s 777X aircraft, and Chief Executive Officer Akbar Al Baker even suggested he’d prefer a mid-2020s debut.
The only problem: the U.S. planemaker hasn’t yet committed to build a cargo version of its upgraded wide-body passenger plane.
The Persian Gulf carrier that’s operating one of the industry’s biggest freighter fleets ordered five current-generation 777Fs on Wednesday in a deal worth $1.75 billion at list prices. Al Baker used a signing ceremony at the Paris Air Show to advocate for a larger, fuel-efficient model to fit with a wider cargo-fleet overhaul that will start in 2025.
#SaudiArabia Supermarket Chain Said to Plan Share Sale Next Year - Bloomberg
Saudi Arabia Supermarket Chain Said to Plan Share Sale Next Year - Bloomberg:
Saudi Arabian retailer BinDawood Group is planning an initial public offering of its supermarket business as early as next year, according to people with knowledge of the matter.
The group has started preliminary work to list the holding company that manages its supermarkets and hypermarkets, said the people, asking not to be identified because the information is private.
BinDawood may list the shares on the Saudi stock exchange and an IPO would allow Bahrain’s Investcorp Bank BCS to exit its minority stake in the firm, one of the people said. The company hasn’t hired financial advisers and may decide not to proceed with a deal, the people said.
Saudi Arabian retailer BinDawood Group is planning an initial public offering of its supermarket business as early as next year, according to people with knowledge of the matter.
The group has started preliminary work to list the holding company that manages its supermarkets and hypermarkets, said the people, asking not to be identified because the information is private.
BinDawood may list the shares on the Saudi stock exchange and an IPO would allow Bahrain’s Investcorp Bank BCS to exit its minority stake in the firm, one of the people said. The company hasn’t hired financial advisers and may decide not to proceed with a deal, the people said.
Oil prices mostly steady despite U.S. crude stock draw - Reuters
Oil prices mostly steady despite U.S. crude stock draw - Reuters:
Oil futures were little changed on Wednesday as price support from a larger-than-expected decline in U.S. crude inventories was countered by a slump in equities.
Brent crude futures shed 27 cents to $61.87 a barrel by 1:57 p.m. EDT (1757 GMT).
U.S. West Texas Intermediate crude futures lost 25 cents to $53.65 a barrel. On Tuesday, it had recorded its biggest daily rise since early January.
After swelling to near two-year highs, U.S. crude stocks fell 3.1 million barrels last week, compared with analysts’ expectations for a draw of 1.1 million barrels, the Energy Information Administration (EIA) said.
Oil futures were little changed on Wednesday as price support from a larger-than-expected decline in U.S. crude inventories was countered by a slump in equities.
Brent crude futures shed 27 cents to $61.87 a barrel by 1:57 p.m. EDT (1757 GMT).
U.S. West Texas Intermediate crude futures lost 25 cents to $53.65 a barrel. On Tuesday, it had recorded its biggest daily rise since early January.
After swelling to near two-year highs, U.S. crude stocks fell 3.1 million barrels last week, compared with analysts’ expectations for a draw of 1.1 million barrels, the Energy Information Administration (EIA) said.
China Buying #Iran LPG Despite Sanctions, Ship-Tracking Shows - Bloomberg
China Buying Iran LPG Despite Sanctions, Ship-Tracking Shows - Bloomberg:
After being hit by the trade war and U.S. sanctions on Iran, some Chinese buyers of liquefied petroleum gas from the Persian Gulf nation are finding it’s too tough a habit to kick.
China sourced around a fifth of its LPG -- used as cooking fuel, in cigarette lighters and to make plastic -- from the U.S before Beijing slapped a 25% tariff on the gas last August as the trade tussle heated up. Buyers then turned to Iran, which accounted for around a third of imports in April, before President Donald Trump blocked all energy exports from the country in May.
But some Chinese customers are still buying from Iran, according to Kpler SAS. Based on ship-tracking data, the Paris-based data intelligence firm estimates that at least five supertankers loaded Iranian LPG in May and June that was destined for China. That would equate to around $100 million of the gas, according to Bloomberg calculations.
After being hit by the trade war and U.S. sanctions on Iran, some Chinese buyers of liquefied petroleum gas from the Persian Gulf nation are finding it’s too tough a habit to kick.
China sourced around a fifth of its LPG -- used as cooking fuel, in cigarette lighters and to make plastic -- from the U.S before Beijing slapped a 25% tariff on the gas last August as the trade tussle heated up. Buyers then turned to Iran, which accounted for around a third of imports in April, before President Donald Trump blocked all energy exports from the country in May.
But some Chinese customers are still buying from Iran, according to Kpler SAS. Based on ship-tracking data, the Paris-based data intelligence firm estimates that at least five supertankers loaded Iranian LPG in May and June that was destined for China. That would equate to around $100 million of the gas, according to Bloomberg calculations.
#Dubai suspends licence of Rasan Capital in DIFC | ZAWYA MENA Edition
Dubai suspends licence of Rasan Capital in DIFC | ZAWYA MENA Edition:
The Dubai Financial Services Authority (DFSA) has suspended the licence of Rasan Capital Limited (RCL), which provides financial consultancy and advisory services.DFSA is an independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC).(made this a separate sentence to keep the punch of the first one.)
RCL's licence was suspended for 12 months due to serious concerns about the adequacy of its financial resources, its non-compliance with DFSA rulebook requirements, and its failure to keep the DFSA informed and notified of such integral matters, DFSA said in a statement issued today.
RCL notified the DFSA of a capital breach on July 30, 2018. Despite commitments made by the RCL to rectify the breach in the intervening period, as of the date of the suspension notice, the firm remains in breach of the capital requirement, read the DFSA statement.
The Dubai Financial Services Authority (DFSA) has suspended the licence of Rasan Capital Limited (RCL), which provides financial consultancy and advisory services.DFSA is an independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC).(made this a separate sentence to keep the punch of the first one.)
RCL's licence was suspended for 12 months due to serious concerns about the adequacy of its financial resources, its non-compliance with DFSA rulebook requirements, and its failure to keep the DFSA informed and notified of such integral matters, DFSA said in a statement issued today.
RCL notified the DFSA of a capital breach on July 30, 2018. Despite commitments made by the RCL to rectify the breach in the intervening period, as of the date of the suspension notice, the firm remains in breach of the capital requirement, read the DFSA statement.
COLUMN-Global economic slowdown hits oil consumption: Kemp - Reuters
COLUMN-Global economic slowdown hits oil consumption: Kemp - Reuters:
Global oil consumption rose last year at the slowest rate since 2014, as higher prices and broad deceleration in manufacturing activity and freight movements took their toll on fuel use and petrochemicals.
Consumption is likely to rise even more slowly in 2019, given the further weakening of most manufacturing and freight indicators since the start of the year.
World consumption increased by just 1.44 million barrels per day (1.46%) in 2018, according to the latest edition of the BP Statistical Review of World Energy, published on June 11.
Global oil consumption rose last year at the slowest rate since 2014, as higher prices and broad deceleration in manufacturing activity and freight movements took their toll on fuel use and petrochemicals.
Consumption is likely to rise even more slowly in 2019, given the further weakening of most manufacturing and freight indicators since the start of the year.
World consumption increased by just 1.44 million barrels per day (1.46%) in 2018, according to the latest edition of the BP Statistical Review of World Energy, published on June 11.
#UAE's biggest lender FAB to shut #Qatar operations amid row with Doha - Reuters
UAE's biggest lender FAB to shut Qatar operations amid row with Doha - Reuters:
First Abu Dhabi Bank, the biggest lender in the United Arab Emirates (UAE), said on Wednesday it will close its sole branch in Qatar, citing Doha’s regulatory actions against the bank.
The move came after a Qatari regulator earlier this month placed more business restrictions on First Abu Dhabi Bank (FAB), as Doha continues a probe into alleged currency manipulation which began after the UAE and other Arab states launched a boycott against Qatar in mid-2017.
The Qatar Financial Center Regulatory Authority (QFCRA) prohibited FAB from undertaking any new business for customers at its branch, housed in the Qatar Financial Centre (QFC).
First Abu Dhabi Bank, the biggest lender in the United Arab Emirates (UAE), said on Wednesday it will close its sole branch in Qatar, citing Doha’s regulatory actions against the bank.
The move came after a Qatari regulator earlier this month placed more business restrictions on First Abu Dhabi Bank (FAB), as Doha continues a probe into alleged currency manipulation which began after the UAE and other Arab states launched a boycott against Qatar in mid-2017.
The Qatar Financial Center Regulatory Authority (QFCRA) prohibited FAB from undertaking any new business for customers at its branch, housed in the Qatar Financial Centre (QFC).
OPEC wrangle over meeting date exposes deepening #Saudi- #Iran rift - Reuters
OPEC wrangle over meeting date exposes deepening Saudi-Iran rift - Reuters:
OPEC’s month-long wrangle over a date for its next meeting has highlighted a changing dynamic in the group with decisions increasingly driven by long-time leader Saudi Arabia in tandem with non-OPEC Russia, angering member states like Iran.
Decision-making has never been easy in the Organization of the Petroleum Exporting Countries, which groups 14 Arab and non-Arab oil producers, some of which have longstanding rivalries.
But tensions have become more pronounced as Iran has sought a bigger say while its exports tumble due to U.S. sanctions and as a new Riyadh-Moscow axis has developed. OPEC sources say this means future meetings and decisions may be even more fraught.
OPEC’s month-long wrangle over a date for its next meeting has highlighted a changing dynamic in the group with decisions increasingly driven by long-time leader Saudi Arabia in tandem with non-OPEC Russia, angering member states like Iran.
Decision-making has never been easy in the Organization of the Petroleum Exporting Countries, which groups 14 Arab and non-Arab oil producers, some of which have longstanding rivalries.
But tensions have become more pronounced as Iran has sought a bigger say while its exports tumble due to U.S. sanctions and as a new Riyadh-Moscow axis has developed. OPEC sources say this means future meetings and decisions may be even more fraught.
MIDEAST STOCKS- #AbuDhabi outperforms as most Gulf mkts gain but #Saudi retreats - Reuters
MIDEAST STOCKS-Abu Dhabi outperforms as most Gulf mkts gain but Saudi retreats - Reuters:
Abu Dhabi stocks outperformed Gulf
markets on Wednesday buoyed by financial stocks, while Saudi
snapped two days of gains pressured by banking shares.
Last week's attacks on tankers in the Gulf of Oman raised
fears of confrontation in a vital route for global oil supply
and heightened tensions between Iran and the United States.
Investor concerns have eased somewhat, after both Tehran and
Riyadh said they did not want a war, but tensions in the region
remain high.
Abu Dhabi stocks outperformed Gulf
markets on Wednesday buoyed by financial stocks, while Saudi
snapped two days of gains pressured by banking shares.
Last week's attacks on tankers in the Gulf of Oman raised
fears of confrontation in a vital route for global oil supply
and heightened tensions between Iran and the United States.
Investor concerns have eased somewhat, after both Tehran and
Riyadh said they did not want a war, but tensions in the region
remain high.
More #UAE banks to merge, KPMG predicts | ZAWYA MENA Edition
More UAE banks to merge, KPMG predicts | ZAWYA MENA Edition:
More consolidation is likely in the financial services sector in the United Arab Emirates over the next four years, especially among banks, according to a new KPMG report.
The accountancy firm's fourth annual report analysing results from banks in all six Gulf Cooperation Council (GCC) countries stated that it expects more mergers in the emirates between now and the end of 2023 as a result of "moderate economic growth".
"This will be driven by the higher cost of doing business in the UAE and the threat of new entrants disrupting the market," the report said.
More consolidation is likely in the financial services sector in the United Arab Emirates over the next four years, especially among banks, according to a new KPMG report.
The accountancy firm's fourth annual report analysing results from banks in all six Gulf Cooperation Council (GCC) countries stated that it expects more mergers in the emirates between now and the end of 2023 as a result of "moderate economic growth".
"This will be driven by the higher cost of doing business in the UAE and the threat of new entrants disrupting the market," the report said.
Boutique Firm Led by Ex-UBS Banker Said to Bid for #Abraaj Funds - Bloomberg
Boutique Firm Led by Ex-UBS Banker Said to Bid for Abraaj Funds - Bloomberg:
A boutique investment firm founded by former UBS Group AG banker Yassine Bouhara is bidding to buy funds managed by the collapsed Abraaj Group, according to a proposal letter and people familiar with the plans.
Tell Group SA is offering $25 million to transfer the management of seven Abraaj funds to a new entity that would be 20% owned by Tell and 80% by Abraaj’s unsecured creditors, according to the letter seen by Bloomberg and the people, who asked not to be identified because the discussions are private.
Unsecured creditors, which include Air Arabia PJSC and a Kuwaiti pension fund, would become shareholders in the new company through a debt-for-equity swap, according to the letter. Abraaj management wouldn’t be involved in the new firm, according to the proposal.
A boutique investment firm founded by former UBS Group AG banker Yassine Bouhara is bidding to buy funds managed by the collapsed Abraaj Group, according to a proposal letter and people familiar with the plans.
Tell Group SA is offering $25 million to transfer the management of seven Abraaj funds to a new entity that would be 20% owned by Tell and 80% by Abraaj’s unsecured creditors, according to the letter seen by Bloomberg and the people, who asked not to be identified because the discussions are private.
Unsecured creditors, which include Air Arabia PJSC and a Kuwaiti pension fund, would become shareholders in the new company through a debt-for-equity swap, according to the letter. Abraaj management wouldn’t be involved in the new firm, according to the proposal.
Oil Demand Growth Estimates Lurching Ever Lower - Bloomberg
Oil Demand Growth Estimates Lurching Ever Lower - Bloomberg:
Global oil demand growth is slowing.
That is the view of all three major oil forecasting organisations, who have cut their assessments for what they expect in terms of an increase in crude consumption this year. The latest outlooks from the International Energy Agency, the U.S. Energy Information Administration and the Organisation of Petroleum Exporting Countries all show worldwide oil demand growing by less than they did a month ago.
Taking the average of the three agencies’ forecasts, they now expect demand for oil to grow by about 1.2 million barrels a day this year, compared with last. That’s down from 1.3 million a month ago and more than 1.4 million in their forecasts made in January.
Global oil demand growth is slowing.
That is the view of all three major oil forecasting organisations, who have cut their assessments for what they expect in terms of an increase in crude consumption this year. The latest outlooks from the International Energy Agency, the U.S. Energy Information Administration and the Organisation of Petroleum Exporting Countries all show worldwide oil demand growing by less than they did a month ago.
Taking the average of the three agencies’ forecasts, they now expect demand for oil to grow by about 1.2 million barrels a day this year, compared with last. That’s down from 1.3 million a month ago and more than 1.4 million in their forecasts made in January.
MSCI Boost Turns #Saudi Stocks Into Emerging-Market Millstone - Bloomberg
MSCI Boost Turns Saudi Stocks Into Emerging-Market Millstone - Bloomberg:
Saudi Arabian stocks are benefiting from their inclusion in the emerging-market universe. But emerging-market stocks are suffering because of the Saudi presence.
The kingdom’s May 29 addition to MSCI Inc.’s indexes, a decision in the works for over two years, has sent Riyadh stocks into a bull market and brought record fund inflows. But the euphoria masks the fact that the earnings outlook for Saudi companies is deteriorating faster than for peers and can barely justify the country’s record valuations.
This blind-alley racing has crashed the case for emerging-market stocks as a whole. With the addition of Saudi companies’ poorer estimates, the average profit forecast for the MSCI equity benchmark plummeted on May 29. While that looks ugly on its own, it also makes the gauge’s valuation pricier given that the projections are the denominator in the price-estimated earnings ratio.
Saudi Arabian stocks are benefiting from their inclusion in the emerging-market universe. But emerging-market stocks are suffering because of the Saudi presence.
The kingdom’s May 29 addition to MSCI Inc.’s indexes, a decision in the works for over two years, has sent Riyadh stocks into a bull market and brought record fund inflows. But the euphoria masks the fact that the earnings outlook for Saudi companies is deteriorating faster than for peers and can barely justify the country’s record valuations.
This blind-alley racing has crashed the case for emerging-market stocks as a whole. With the addition of Saudi companies’ poorer estimates, the average profit forecast for the MSCI equity benchmark plummeted on May 29. While that looks ugly on its own, it also makes the gauge’s valuation pricier given that the projections are the denominator in the price-estimated earnings ratio.
OPEC+ Sets Date for Meeting, Ending a Month of Bickering - Bloomberg
OPEC+ Sets Date for Meeting, Ending a Month of Bickering - Bloomberg:
OPEC+ agreed to hold its next meeting to discuss oil-output cuts on the first two days of July, resolving a monthlong dispute that highlighted divisions within the group.
The compromise date, proposed on Tuesday by OPEC’s current president Venezuelan Oil Minister Manuel Quevedo, was posted on the group’s website on Wednesday, indicating all members were in agreement.
The producers group, which pumps more than half the world’s crude, has been bickering for a month about the timing of ministerial talks in Vienna. Their failure to agree a date just weeks before their production cuts expire added to the turbulence in markets, which also face the threat of conflict in the Persian Gulf and growing signs of a demand slowdown.
OPEC+ agreed to hold its next meeting to discuss oil-output cuts on the first two days of July, resolving a monthlong dispute that highlighted divisions within the group.
The compromise date, proposed on Tuesday by OPEC’s current president Venezuelan Oil Minister Manuel Quevedo, was posted on the group’s website on Wednesday, indicating all members were in agreement.
The producers group, which pumps more than half the world’s crude, has been bickering for a month about the timing of ministerial talks in Vienna. Their failure to agree a date just weeks before their production cuts expire added to the turbulence in markets, which also face the threat of conflict in the Persian Gulf and growing signs of a demand slowdown.
#SaudiArabia plans dollar sukuk by end-2019-debt official - Reuters
Saudi Arabia plans dollar sukuk by end-2019-debt official - Reuters:
Saudi Arabia will regularly tap international bond markets in future, with plans to issue an Islamic bond or sukuk by the end of this year, the head of the kingdom’s debt management office said on Tuesday.
“We are planning to issue a sukuk in dollars before the end of this year,” Fahad al-Saif told reporters on the sidelines of a conference in London.
He added the kingdom would continue to be an “active” issuer on dollar bond markets and would also looking at raising capital in other currencies including the euro
Saudi Arabia will regularly tap international bond markets in future, with plans to issue an Islamic bond or sukuk by the end of this year, the head of the kingdom’s debt management office said on Tuesday.
“We are planning to issue a sukuk in dollars before the end of this year,” Fahad al-Saif told reporters on the sidelines of a conference in London.
He added the kingdom would continue to be an “active” issuer on dollar bond markets and would also looking at raising capital in other currencies including the euro
Oil gains amid U.S.-China trade deal hopes, ECB talk of easing policy - Reuters
Oil gains amid U.S.-China trade deal hopes, ECB talk of easing policy - Reuters:
Oil prices extended gains into a second session on Wednesday, buoyed by rekindled hopes for a U.S.-China trade deal and potential economic stimulus from the European Central Bank (ECB).
Tensions in the Middle East after tanker attacks there last week also supported oil markets.
Brent crude futures were up 20 cents, or 0.3%, at $62.34 a barrel by 0644 GMT. They rose 2% on Tuesday.
U.S. West Texas Intermediate crude gained 20 cents, or 0.4%, to $54.10 a barrel. The U.S. benchmark surged 3.8% in the last session.
Oil prices extended gains into a second session on Wednesday, buoyed by rekindled hopes for a U.S.-China trade deal and potential economic stimulus from the European Central Bank (ECB).
Tensions in the Middle East after tanker attacks there last week also supported oil markets.
Brent crude futures were up 20 cents, or 0.3%, at $62.34 a barrel by 0644 GMT. They rose 2% on Tuesday.
U.S. West Texas Intermediate crude gained 20 cents, or 0.4%, to $54.10 a barrel. The U.S. benchmark surged 3.8% in the last session.
Toyota snub dents #SaudiArabia's manufacturing drive - Reuters
Toyota snub dents Saudi Arabia's manufacturing drive - Reuters:
Saudi Arabia began courting Toyota two years ago to build a large car plant as part of Crown Prince Mohammed bin Salman’s grand plan to wean the kingdom off oil revenues and create jobs for young Saudis.
But the Japanese carmaker has rebuffed Riyadh’s overtures following talks that dragged on without tangible results because high labor costs, a small domestic market and a lack of local supplies gave Toyota pause for thought, four sources said.
Securing a deal with a major automaker by 2020 for a car plant is a key target in the Gulf state’s national industrial strategy, part of a broader agenda to diversify the economy of the world’s largest oil exporter.
Saudi Arabia began courting Toyota two years ago to build a large car plant as part of Crown Prince Mohammed bin Salman’s grand plan to wean the kingdom off oil revenues and create jobs for young Saudis.
But the Japanese carmaker has rebuffed Riyadh’s overtures following talks that dragged on without tangible results because high labor costs, a small domestic market and a lack of local supplies gave Toyota pause for thought, four sources said.
Securing a deal with a major automaker by 2020 for a car plant is a key target in the Gulf state’s national industrial strategy, part of a broader agenda to diversify the economy of the world’s largest oil exporter.
MIDEAST STOCKS-Banks lift #Qatar as all major Gulf markets rise - Reuters
MIDEAST STOCKS-Banks lift Qatar as all major Gulf markets rise - Reuters:
Major Gulf markets rose on Wednesday, mostly lifted by financial stocks amid rising oil prices, while Qatar was boosted by its blue-chip shares.
Oil prices extended gains into a second session, buoyed by rekindled hopes for a U.S.-China trade deal and potential economic stimulus from the European Central Bank (ECB).
Tensions in the Middle East after tanker attacks there last week supported oil markets but pressured most Gulf stocks. Markets have steadied after sliding in previous sessions following the attacks, as investor concerns have eased somewhat.
Major Gulf markets rose on Wednesday, mostly lifted by financial stocks amid rising oil prices, while Qatar was boosted by its blue-chip shares.
Oil prices extended gains into a second session, buoyed by rekindled hopes for a U.S.-China trade deal and potential economic stimulus from the European Central Bank (ECB).
Tensions in the Middle East after tanker attacks there last week supported oil markets but pressured most Gulf stocks. Markets have steadied after sliding in previous sessions following the attacks, as investor concerns have eased somewhat.
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