Risk Stalking Iran's Sanction-Scarred Currency Is Off the Charts - Bloomberg:
Iran’s currency is under more duress now than when a European and U.S. oil embargo was in place seven years ago.
Oxford Economics’ FX Risk Tool, a composite measure of vulnerability to a currency crisis, shows the rial as the most exposed in the Middle East and North Africa.
Iran’s score is above the level in 2012 and suggests a 23% chance of a currency crisis in the next two years, the consultancy said. Although its value is officially fixed, the rial is estimated to have lost more than 60% on the parallel market in the last year.
Tuesday, 25 June 2019
Oil Closes Below $58 as Esper Seeks to Cool U.S.-Iran Tension - Bloomberg
Oil Closes Below $58 as Esper Seeks to Cool U.S.-Iran Tension - Bloomberg:
Oil closed slightly lower as taunts and threats between the leaders of the U.S. and Iran failed to sustain a rally.
Futures in New York closed just below $58 a barrel on Tuesday, after acting Secretary of Defense Mark Esper said the U.S. isn’t looking to go to war with Iran. Prices had surged higher earlier after Iran said new American sanctions had shut the door to diplomacy “forever” and President Donald Trump warned that any attack on U.S. assets could be met, in some areas, with “obliteration.”
Prices flipped between gains and losses several times during a choppy trading session that also brought reminders of the fragile economic outlook. Federal Reserve Chairman Jerome Powell warned the risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 summit this week is unlikely.
“Oil squeezed higher last week on tensions in the Middle East, but with so much uncertainty regarding the trade war and global economy, the demand argument is too shaky for a sustainable rally just yet,” Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida, wrote in a note to clients.
West Texas Intermediate for August delivery fell 7 cents to $57.83 on the New York Mercantile Exchange, after closing Monday at the highest point since May 29. Brent for August settlement rose 19 cents, or 0.3%, to $65.05 a barrel on London’s ICE Futures Europe Exchange.
Oil closed slightly lower as taunts and threats between the leaders of the U.S. and Iran failed to sustain a rally.
Futures in New York closed just below $58 a barrel on Tuesday, after acting Secretary of Defense Mark Esper said the U.S. isn’t looking to go to war with Iran. Prices had surged higher earlier after Iran said new American sanctions had shut the door to diplomacy “forever” and President Donald Trump warned that any attack on U.S. assets could be met, in some areas, with “obliteration.”
Prices flipped between gains and losses several times during a choppy trading session that also brought reminders of the fragile economic outlook. Federal Reserve Chairman Jerome Powell warned the risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 summit this week is unlikely.
“Oil squeezed higher last week on tensions in the Middle East, but with so much uncertainty regarding the trade war and global economy, the demand argument is too shaky for a sustainable rally just yet,” Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida, wrote in a note to clients.
West Texas Intermediate for August delivery fell 7 cents to $57.83 on the New York Mercantile Exchange, after closing Monday at the highest point since May 29. Brent for August settlement rose 19 cents, or 0.3%, to $65.05 a barrel on London’s ICE Futures Europe Exchange.
MIDEAST STOCKS- #Saudi stocks end losing streak, #Iran sanctions weigh on most of Gulf - Reuters
MIDEAST STOCKS-Saudi stocks end losing streak, Iran sanctions weigh on most of Gulf - Reuters:
Saudi Arabia's stock market snapped a
four-day losing streak in late wave of buying on Tuesday, while
other major Middle East bourses dropped after the United States
imposed sanctions on Iran's leadership.
Saudi Arabia's share index was up 0.6% with gains
coming in last 30 minutes of trading. Banks led the late rally
with Riyad Bank adding 2.8% and Saudi British Bank
climbing 2.7%.
The head of state-run energy giant Saudi Aramco said it
could use its spare capacity to meet customer demand, in
comments designed to ease concerns over oil supply security
caused by recent attacks on oil tankers near the Strait of
Hormuz, a key shipping route.
Saudi Arabia's stock market snapped a
four-day losing streak in late wave of buying on Tuesday, while
other major Middle East bourses dropped after the United States
imposed sanctions on Iran's leadership.
Saudi Arabia's share index was up 0.6% with gains
coming in last 30 minutes of trading. Banks led the late rally
with Riyad Bank adding 2.8% and Saudi British Bank
climbing 2.7%.
The head of state-run energy giant Saudi Aramco said it
could use its spare capacity to meet customer demand, in
comments designed to ease concerns over oil supply security
caused by recent attacks on oil tankers near the Strait of
Hormuz, a key shipping route.
Most Refiners Unprepared for End of `Golden Age', Deloitte Says - Bloomberg
Most Refiners Unprepared for End of `Golden Age', Deloitte Says - Bloomberg:
The vast majority oil refiners and chemical makers are ill-prepared for the looming end of the industry’s “golden age” amid the shale boom and shifting demand trends, according to Deloitte LLP.
With electric vehicles and stricter environmental regulations poised to encroach on refiners’ traditional markets, just 5% of the 1,350 companies analyzed by Deloitte have made substantial changes to their risk assessments in the past half decade.
“The golden age of downstream is coming to an end and most of the incumbent industry is not prepared for the upcoming new normal,” according to a Deloitte report authored by Duane Dickson, oil, gas and chemicals sector leader, released on Tuesday.
The vast majority oil refiners and chemical makers are ill-prepared for the looming end of the industry’s “golden age” amid the shale boom and shifting demand trends, according to Deloitte LLP.
With electric vehicles and stricter environmental regulations poised to encroach on refiners’ traditional markets, just 5% of the 1,350 companies analyzed by Deloitte have made substantial changes to their risk assessments in the past half decade.
“The golden age of downstream is coming to an end and most of the incumbent industry is not prepared for the upcoming new normal,” according to a Deloitte report authored by Duane Dickson, oil, gas and chemicals sector leader, released on Tuesday.
Double Blow for Billionaire Shetty With NMC Shorts, Finablr Drop - Bloomberg
Double Blow for Billionaire Shetty With NMC Shorts, Finablr Drop - Bloomberg:
Bavaguthu Raghuram Shetty is having a bad year in the stock market.
Persian Gulf hospital operator NMC Health Plc, where he’s co-chairman and a major shareholder, has plunged as short sellers targeted the company amid concern its governance is lacking, it’s taken on too much debt for acquisitions and its accounting is too opaque. Shares of Finablr Plc, the payments processor he founded, are trading below their initial public offering price since the company listed in London last month.
The double whammy comes amid growing investor unease with indebted, acquisitive companies, in the case of NMC, and, for Finablr, mounting competition for financial services such as payments and currency exchange.
Bavaguthu Raghuram Shetty is having a bad year in the stock market.
Persian Gulf hospital operator NMC Health Plc, where he’s co-chairman and a major shareholder, has plunged as short sellers targeted the company amid concern its governance is lacking, it’s taken on too much debt for acquisitions and its accounting is too opaque. Shares of Finablr Plc, the payments processor he founded, are trading below their initial public offering price since the company listed in London last month.
The double whammy comes amid growing investor unease with indebted, acquisitive companies, in the case of NMC, and, for Finablr, mounting competition for financial services such as payments and currency exchange.
#UAE's #Sharjah Islamic Bank to issue $500mln sukuk with 5% yield | ZAWYA MENA Edition
UAE's Sharjah Islamic Bank to issue $500mln sukuk with 5% yield | ZAWYA MENA Edition:
United Arab Emirates' Sharjah Islamic Bank SIB.AD is set to raise $500 million in capital-boosting sukuk, or Islamic bonds, with a 5% yield, a document by one of the banks leading the deal showed.
The Islamic lender received orders of up to $5 billion for the issuance, according to the document.
United Arab Emirates' Sharjah Islamic Bank SIB.AD is set to raise $500 million in capital-boosting sukuk, or Islamic bonds, with a 5% yield, a document by one of the banks leading the deal showed.
The Islamic lender received orders of up to $5 billion for the issuance, according to the document.
Petrofac flags challenges in #SaudiArabia and Iraq - Reuters
Petrofac flags challenges in Saudi Arabia and Iraq - Reuters:
British oilfield services provider Petrofac Ltd said on Tuesday that it has booked $1.7 billion in new orders so far this year even as it faced challenges in Saudi Arabia and Iraq, which has crimped its business.
Petrofac for the last two years has been navigating legal challenges as Britain probes allegations of bribery at the company. But the company has managed to sign multiple contracts and sell some assets to beef-up its core business.
In February, a former senior executive pleaded guilty to 11 counts of bribery in relation to oil deals in Iraq and Saudi Arabia as part of an investigation brought on by Britain’s Serious Fraud Office (SFO).
British oilfield services provider Petrofac Ltd said on Tuesday that it has booked $1.7 billion in new orders so far this year even as it faced challenges in Saudi Arabia and Iraq, which has crimped its business.
Petrofac for the last two years has been navigating legal challenges as Britain probes allegations of bribery at the company. But the company has managed to sign multiple contracts and sell some assets to beef-up its core business.
In February, a former senior executive pleaded guilty to 11 counts of bribery in relation to oil deals in Iraq and Saudi Arabia as part of an investigation brought on by Britain’s Serious Fraud Office (SFO).
#SaudiArabia puts off day of reckoning on oil production | Financial Times
Saudi Arabia puts off day of reckoning on oil production | Financial Times:
When Brian Hook, the US envoy on Iran, declared himself “very pleased” last week with Saudi Arabia’s efforts to ensure oil markets are well supplied, he was engaging in some diplomatic footwork worthy of an Olympic gymnast.
As tensions have soared between Washington and Tehran, the US has been grateful that the oil price has risen only marginally to $65 a barrel, despite the threat that conflict could pose to supplies from the Middle East.
But for all the public thanks, Mr Hook knows as well as any oil analyst that Saudi Arabia has played little part in keeping prices in check this year.
When Brian Hook, the US envoy on Iran, declared himself “very pleased” last week with Saudi Arabia’s efforts to ensure oil markets are well supplied, he was engaging in some diplomatic footwork worthy of an Olympic gymnast.
As tensions have soared between Washington and Tehran, the US has been grateful that the oil price has risen only marginally to $65 a barrel, despite the threat that conflict could pose to supplies from the Middle East.
But for all the public thanks, Mr Hook knows as well as any oil analyst that Saudi Arabia has played little part in keeping prices in check this year.
Pressuring #Iran Would Backfire for the U.S. If Oil Prices Rise - Bloomberg
Pressuring Iran Would Backfire for the U.S. If Oil Prices Rise - Bloomberg:
Middle East policymakers in Washington these days should take some advice from that noted diplomat, Bob Dylan.
His adage “When you ain’t got nothing, you got nothing to lose” is getting tested with the Trump administration’s “maximum pressure” sanctions regime on Iran. The outcome of this particular experiment could well determine the direction of oil prices as the U.S. heads toward presidential elections next year.
As the recent attacks on oil tankers and a U.S. unmanned drone demonstrate, in military terms it would be relatively easy for Iran to cause disruptions in the Strait of Hormuz, a bottleneck through which about a third of the world’s seaborne oil passes.
Middle East policymakers in Washington these days should take some advice from that noted diplomat, Bob Dylan.
His adage “When you ain’t got nothing, you got nothing to lose” is getting tested with the Trump administration’s “maximum pressure” sanctions regime on Iran. The outcome of this particular experiment could well determine the direction of oil prices as the U.S. heads toward presidential elections next year.
As the recent attacks on oil tankers and a U.S. unmanned drone demonstrate, in military terms it would be relatively easy for Iran to cause disruptions in the Strait of Hormuz, a bottleneck through which about a third of the world’s seaborne oil passes.
Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+ - Bloomberg
Malaise in Top Oil-Consuming Region a Warning Sign for OPEC+ - Bloomberg:
As storm clouds gather over the world’s top oil-consuming region, OPEC and its allies would be advised to pay close attention as they prepare to make a key decision on output curbs early next month.
While the Saudi Arabian-led efforts to restrain supply amid surging North American shale production have hogged headlines, a sense of malaise is quietly creeping across Asia. With the U.S.-China trade war now almost a year old and showing no signs of ending, its impact is manifesting itself in everything from profit warnings by Japanese car makers to sagging Chinese diesel consumption.
From Ulsan in South Korea to Mailiao in Taiwan, the region’s big oil processors are cutting run rates as weak demand for fuel products erode their margins. To make matters worse, a wave of Asian mega-refineries is coming on stream this year, flooding the market with cheap fuel and setting off a price war.
As storm clouds gather over the world’s top oil-consuming region, OPEC and its allies would be advised to pay close attention as they prepare to make a key decision on output curbs early next month.
While the Saudi Arabian-led efforts to restrain supply amid surging North American shale production have hogged headlines, a sense of malaise is quietly creeping across Asia. With the U.S.-China trade war now almost a year old and showing no signs of ending, its impact is manifesting itself in everything from profit warnings by Japanese car makers to sagging Chinese diesel consumption.
From Ulsan in South Korea to Mailiao in Taiwan, the region’s big oil processors are cutting run rates as weak demand for fuel products erode their margins. To make matters worse, a wave of Asian mega-refineries is coming on stream this year, flooding the market with cheap fuel and setting off a price war.
#UAE central bank’s foreign currency assets up to $103bln in May | ZAWYA MENA Edition
UAE central bank’s foreign currency assets up to $103bln in May | ZAWYA MENA Edition:
The total foreign currency assets held by the Central Bank of the UAE increased to circa AED379.3 billion by the end of May 2019, a growth of 16.1 percent from AED326.6 billion on the same month last year, as current account balances and deposits with foreign banks strengthened to AED322.5 billion from AED257.23 billion in May 2018, according to the CBUAE figures.
The foreign assets exclude CBUAE Reserve Tranche Position and Special Drawing Rights holdings with the International Monetary Fund.
In the meantime CBUAE's held-to-maturity securities rose to around AED41.65 billion in May, with other foreign assets up to AED15.1 billion during the monitored period.
The total foreign currency assets held by the Central Bank of the UAE increased to circa AED379.3 billion by the end of May 2019, a growth of 16.1 percent from AED326.6 billion on the same month last year, as current account balances and deposits with foreign banks strengthened to AED322.5 billion from AED257.23 billion in May 2018, according to the CBUAE figures.
The foreign assets exclude CBUAE Reserve Tranche Position and Special Drawing Rights holdings with the International Monetary Fund.
In the meantime CBUAE's held-to-maturity securities rose to around AED41.65 billion in May, with other foreign assets up to AED15.1 billion during the monitored period.
Oil prices in balance between demand worries, U.S.-Iran tensions - Reuters
Oil prices in balance between demand worries, U.S.-Iran tensions - Reuters:
Oil prices hung in the balance on Tuesday as concerns over declining crude demand were offset by risks to supply linked to new U.S. sanctions on Iran.
Benchmark Brent crude futures were down 12 cents at $64.74 a barrel by 0832 GMT.
U.S. crude futures were up 3 cents at $57.93 a barrel.
Hopes for progress in the trade war between China and the United States during this week’s G20 meeting were dampened by a comment from a senior U.S. official saying U.S. President Donald Trump was “comfortable with any outcome” from the talks.
Oil prices hung in the balance on Tuesday as concerns over declining crude demand were offset by risks to supply linked to new U.S. sanctions on Iran.
Benchmark Brent crude futures were down 12 cents at $64.74 a barrel by 0832 GMT.
U.S. crude futures were up 3 cents at $57.93 a barrel.
Hopes for progress in the trade war between China and the United States during this week’s G20 meeting were dampened by a comment from a senior U.S. official saying U.S. President Donald Trump was “comfortable with any outcome” from the talks.
#AbuDhabi Islamic Bank finances #Saudi property acquisition in Manchester - Reuters
Abu Dhabi Islamic Bank finances Saudi property acquisition in Manchester - Reuters:
Abu Dhabi Islamic Bank (ADIB) said on Tuesday it provided financing to Saudi Arabia’s Cedar Tree Investments to buy a 280 million dirhams ($76.24 million) residential portfolio in Manchester.
The bank said Gulf investors are buying UK properties to diversify portfolio risk, take advantage of the weakened pound, and benefit from rental yields, particularly in cities such as Manchester, Bristol and Birmingham.
Abu Dhabi Islamic Bank (ADIB) said on Tuesday it provided financing to Saudi Arabia’s Cedar Tree Investments to buy a 280 million dirhams ($76.24 million) residential portfolio in Manchester.
The bank said Gulf investors are buying UK properties to diversify portfolio risk, take advantage of the weakened pound, and benefit from rental yields, particularly in cities such as Manchester, Bristol and Birmingham.
#Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO - Reuters
Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO - Reuters:
Saudi Aramco is concerned at recent actions in the Gulf but can meet its customers’ needs thanks to its experience and the availability of additional spare capacity, its chief executive said on Tuesday.
“What’s happening in the Gulf is definitely a concern,” Amin Nasser, president and chief executive of Saudi Arabia’s state oil giant, told Reuters in an interview.
“At the same time we went through a number of crises in the past ... we’ve always met our customer commitments and we do have flexibility and the system availability in terms of available additional spare capacity.”
Saudi Aramco is concerned at recent actions in the Gulf but can meet its customers’ needs thanks to its experience and the availability of additional spare capacity, its chief executive said on Tuesday.
“What’s happening in the Gulf is definitely a concern,” Amin Nasser, president and chief executive of Saudi Arabia’s state oil giant, told Reuters in an interview.
“At the same time we went through a number of crises in the past ... we’ve always met our customer commitments and we do have flexibility and the system availability in terms of available additional spare capacity.”
MIDEAST STOCKS-Most Gulf markets drop after U.S. slaps new sanctions on Iran - Reuters
MIDEAST STOCKS-Most Gulf markets drop after U.S. slaps new sanctions on Iran - Reuters:
Major Middle East stock markets mostly fell on Tuesday after the United States imposed sanctions on Iran’s leadership, a move Tehran said closed the door to diplomacy.
U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran after Tehran downed an unmanned American drone.
Iran said on Tuesday that U.S. sanctions imposed on Supreme Leader Ayatollah Ali Khamenei and other top officials in the country permanently closed the path to diplomacy between Tehran and Washington.
Major Middle East stock markets mostly fell on Tuesday after the United States imposed sanctions on Iran’s leadership, a move Tehran said closed the door to diplomacy.
U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran after Tehran downed an unmanned American drone.
Iran said on Tuesday that U.S. sanctions imposed on Supreme Leader Ayatollah Ali Khamenei and other top officials in the country permanently closed the path to diplomacy between Tehran and Washington.
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