Oil Reaches 5-Week High on Biggest Drop in Stockpiles Since 2016 - Bloomberg:
Oil rose to a five-week high as a huge drop in U.S. crude inventories bolstered the outlook for demand.
Futures in New York climbed 2.7% Wednesday after the U.S. Energy Information Administration said domestic stockpiles fell by 12.8 million barrels last week. The biggest decline in American supplies since September 2016 was accompanied by record exports of crude and refined products and gasoline demand that remained near an all-time high.
“U.S. exports are going to continue to grow, and that’s a positive for long-term crude balances here,” said Nick Holmes, who helps oversee $16 billion in energy investments for Kansas-based money manager Tortoise. “It’s our expectation that we continue to see draws into the second half of the year.”
While the summer driving season typically boosts demand, it was the second week in a row that inventories fell far beyond expectations, countering worries about the economy that have dogged oil prices. With added momentum from the U.S.-Iran standoff in the Persian Gulf, futures have jumped about 10% in the past week.
West Texas Intermediate for August delivery rose $1.55 to $59.38 a barrel on the New York Mercantile Exchange. It was the highest closing price for the contract since May 22.
Brent for August settlement added $1.44, or 2.2%, to $66.49 a barrel on London’s ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $7.11 to WTI.
Wednesday 26 June 2019
CVC Is Said to Near $1 Billion Deal for Stake in GEMS Education - Bloomberg
CVC Is Said to Near $1 Billion Deal for Stake in GEMS Education - Bloomberg:
CVC Capital Partners is close to a deal for a 25% stake in Dubai’s GEMS Education, a private school operator backed by Blackstone Group LP, that values the firm at more than $4 billion, people familiar with the matter said.
CVC may pay $1 billion or more for the holding and a deal could be announced in the coming days, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the London-based private equity firm may still decide against a deal.
Representative for GEMS and London-based CVC declined to comment.
CVC Capital Partners is close to a deal for a 25% stake in Dubai’s GEMS Education, a private school operator backed by Blackstone Group LP, that values the firm at more than $4 billion, people familiar with the matter said.
CVC may pay $1 billion or more for the holding and a deal could be announced in the coming days, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the London-based private equity firm may still decide against a deal.
Representative for GEMS and London-based CVC declined to comment.
Trump's sanctions cut more OPEC oil output than OPEC itself - Reuters
Trump's sanctions cut more OPEC oil output than OPEC itself - Reuters:
Oil output in Iran and Venezuela, under U.S. sanctions, has fallen by more than that of other OPEC members party to a supply cut pact, suggesting President Trump’s policies have had a greater impact on oil production than OPEC itself.
The sanctions have deepened the impact of supply cuts agreed by the Organization of the Petroleum Exporting Countries, which is expected at meetings with its allies next Monday and Tuesday in Vienna to renew the accord.
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members - all except Iran, Libya and Venezuela.
Oil output in Iran and Venezuela, under U.S. sanctions, has fallen by more than that of other OPEC members party to a supply cut pact, suggesting President Trump’s policies have had a greater impact on oil production than OPEC itself.
The sanctions have deepened the impact of supply cuts agreed by the Organization of the Petroleum Exporting Countries, which is expected at meetings with its allies next Monday and Tuesday in Vienna to renew the accord.
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members - all except Iran, Libya and Venezuela.
Oil rises as US inventories dip and exports hit record high | Financial Times
Oil rises as US inventories dip and exports hit record high | Financial Times:
Oil prices added to recent gains after US data showed domestic stockpiles last week shrank more than expected while exports of American crude hit a record high.
The Energy Information Administration said Wednesday that US crude inventories declined 12.8m barrels from the prior week to 469.6m barrels, dropping by their widest margin since September 2016 and surpassing forecasts for a smaller 2.5m-barrel draw.
It also found that weekly crude exports rose to their highest level on record at 3.77m barrels a day, and exports of crude and refined products combined were at an all-time high.
Oil prices added to recent gains after US data showed domestic stockpiles last week shrank more than expected while exports of American crude hit a record high.
The Energy Information Administration said Wednesday that US crude inventories declined 12.8m barrels from the prior week to 469.6m barrels, dropping by their widest margin since September 2016 and surpassing forecasts for a smaller 2.5m-barrel draw.
It also found that weekly crude exports rose to their highest level on record at 3.77m barrels a day, and exports of crude and refined products combined were at an all-time high.
#SaudiArabia relaxes ownership limits for foreign investors - Reuters
Saudi Arabia relaxes ownership limits for foreign investors - Reuters:
Saudi Arabia has relaxed a 49% limit for foreign strategic investors in shares of listed companies, it said on Wednesday.
The country has introduced a raft of reforms in recent years to make its stock market, the region’s biggest, attractive to foreign investors and issuers.
The move is aimed to help “enhance the market’s efficiency and attractiveness and to expand the institutional investments base,” the regulator, the Capital Market Authority (CMA), said in a statement on its website.
Saudi Arabia has relaxed a 49% limit for foreign strategic investors in shares of listed companies, it said on Wednesday.
The country has introduced a raft of reforms in recent years to make its stock market, the region’s biggest, attractive to foreign investors and issuers.
The move is aimed to help “enhance the market’s efficiency and attractiveness and to expand the institutional investments base,” the regulator, the Capital Market Authority (CMA), said in a statement on its website.
#Dubai state fund's profit falls by 19% in 2018 | ZAWYA MENA Edition
Dubai state fund's profit falls by 19% in 2018 | ZAWYA MENA Edition:
Investment Corporation of Dubai (ICD) witnessed a 19.3 percent decline in profit to its owner in 2018 to 16.3 billion United Arab Emirates dirhams ($4.37 billion), newly-filed accounts show.
Profit declined at the sovereign fund despite a 15.7 percent increase in revenue to 232.4 billion.
ICD, which owns the Emirates airline group, Emirates National Oil Co and which has stakes in banks such as Emirates NBD and the soon-to-merge Dubai Islamic Bank and Noor Bank, attributed the decline in profit to "the impact of higher fuel and commodity input prices".
Investment Corporation of Dubai (ICD) witnessed a 19.3 percent decline in profit to its owner in 2018 to 16.3 billion United Arab Emirates dirhams ($4.37 billion), newly-filed accounts show.
Profit declined at the sovereign fund despite a 15.7 percent increase in revenue to 232.4 billion.
ICD, which owns the Emirates airline group, Emirates National Oil Co and which has stakes in banks such as Emirates NBD and the soon-to-merge Dubai Islamic Bank and Noor Bank, attributed the decline in profit to "the impact of higher fuel and commodity input prices".
MIDEAST STOCKS-Egypt snaps losing streak while most of Gulf slips - Reuters
MIDEAST STOCKS-Egypt snaps losing streak while most of Gulf slips - Reuters:
Egypt's stock market ended six straight
days of losses on Wednesday, while Gulf bourses mostly dropped
as regional political concerns persisted.
Egypt's blue-chip index traded 1.3% higher. El
Sewedy Electric and real estate investment firm Talaat
Mostafa Group Holding jumped 4.8% and 4.5%,
respectively.
The market has been on the back foot in recent sessions
after Egypt's first democratically elected president Mohamed
Mursi died while on trial in a Cairo court. His death has
triggered calls for an inquiry by Amnesty International and the
U.N. Human Rights office.
Egypt's stock market ended six straight
days of losses on Wednesday, while Gulf bourses mostly dropped
as regional political concerns persisted.
Egypt's blue-chip index traded 1.3% higher. El
Sewedy Electric and real estate investment firm Talaat
Mostafa Group Holding jumped 4.8% and 4.5%,
respectively.
The market has been on the back foot in recent sessions
after Egypt's first democratically elected president Mohamed
Mursi died while on trial in a Cairo court. His death has
triggered calls for an inquiry by Amnesty International and the
U.N. Human Rights office.
#Abraaj scandal a ‘wake-up call’ for advisory industry | Financial Times
Abraaj scandal a ‘wake-up call’ for advisory industry | Financial Times:
When private equity firm Abraaj faced allegations of mismanaging its $1bn healthcare fund last year, executives recognised that a neutral external company with a trusted reputation would be needed to investigate.
Dubai-based Abraaj, which until recently dominated the emerging markets private equity sector, was accused of using the fund to support the business of its founder, Arif Naqvi. The money mostly came from large institutional investors, including the Bill & Melinda Gates Foundation. Mr Naqvi has always denied wrongdoing.
Yet it appeared the worst had passed when the investigation by Abraaj’s auditor, KPMG, exonerated the firm just a few weeks after the scandal broke.
When private equity firm Abraaj faced allegations of mismanaging its $1bn healthcare fund last year, executives recognised that a neutral external company with a trusted reputation would be needed to investigate.
Dubai-based Abraaj, which until recently dominated the emerging markets private equity sector, was accused of using the fund to support the business of its founder, Arif Naqvi. The money mostly came from large institutional investors, including the Bill & Melinda Gates Foundation. Mr Naqvi has always denied wrongdoing.
Yet it appeared the worst had passed when the investigation by Abraaj’s auditor, KPMG, exonerated the firm just a few weeks after the scandal broke.
Bank of America Sees Risk of $30 Oil If China Devalues Yuan - Bloomberg
Bank of America Sees Risk of $30 Oil If China Devalues Yuan - Bloomberg:
A further deterioration in relations between the U.S. and China could set off a chain of events that would push oil down more than 50% to as low $30 a barrel, according to Bank of America Merrill Lynch.
President Donald Trump may decide to raise tariffs on the remaining $300 billion of Chinese imports if he doesn’t like what he hears from Chinese President Xi Jinping at this weekend’s G-20 summit in Osaka, Francisco Blanch, the bank’s global head of commodities, said in an interview in Singapore.
That may cause Chinese authorities to let the yuan weaken, making oil that’s priced in dollars more expensive in the world’s largest importer and stunting demand growth, he said. Beijing might also decide to ignore Washington’s sanctions against Iran and resume crude imports from the Persian Gulf country, Blanch said.
A further deterioration in relations between the U.S. and China could set off a chain of events that would push oil down more than 50% to as low $30 a barrel, according to Bank of America Merrill Lynch.
President Donald Trump may decide to raise tariffs on the remaining $300 billion of Chinese imports if he doesn’t like what he hears from Chinese President Xi Jinping at this weekend’s G-20 summit in Osaka, Francisco Blanch, the bank’s global head of commodities, said in an interview in Singapore.
That may cause Chinese authorities to let the yuan weaken, making oil that’s priced in dollars more expensive in the world’s largest importer and stunting demand growth, he said. Beijing might also decide to ignore Washington’s sanctions against Iran and resume crude imports from the Persian Gulf country, Blanch said.
Aramco Plans $6 Billion Korean Refinery Boost to Place #Saudi Oil - Bloomberg
Aramco Plans $6 Billion Korean Refinery Boost to Place Saudi Oil - Bloomberg:
Saudi Aramco is planning a $6 billion expansion at its South Korean refining unit as the state-owned producer signs deals to ensure long-term demand for its crude in Asia.
Saudi Crown Prince Mohammed bin Salman took Aramco’s Chief Executive Officer Amin Nasser with him to Korea during a visit that saw a raft of deals from crude supply to ship building and automobile industry projects signed between the two countries. Aramco, officially known as Saudi Arabian Oil Co., and other Saudi businesses agreed to $8.3 billion worth of projects with Korean companies during the visit, the Korean energy ministry said.
Prince Mohammed is leading the push to transform the crude-dependent Saudi economy by developing new industries at home. Korea Shipbuilding & Offshore Engineering Co. was among the companies that agreed to set up businesses like ship building and servicing in the kingdom, which is the largest supplier of oil to South Korea.
Saudi Aramco is planning a $6 billion expansion at its South Korean refining unit as the state-owned producer signs deals to ensure long-term demand for its crude in Asia.
Saudi Crown Prince Mohammed bin Salman took Aramco’s Chief Executive Officer Amin Nasser with him to Korea during a visit that saw a raft of deals from crude supply to ship building and automobile industry projects signed between the two countries. Aramco, officially known as Saudi Arabian Oil Co., and other Saudi businesses agreed to $8.3 billion worth of projects with Korean companies during the visit, the Korean energy ministry said.
Prince Mohammed is leading the push to transform the crude-dependent Saudi economy by developing new industries at home. Korea Shipbuilding & Offshore Engineering Co. was among the companies that agreed to set up businesses like ship building and servicing in the kingdom, which is the largest supplier of oil to South Korea.
MIDEAST STOCKS- #Saudi extends gains while most Gulf markets drop - Reuters
MIDEAST STOCKS-Saudi extends gains while most Gulf markets drop - Reuters:
Saudi Arabia’s stock market rose on Wednesday, lifted by Advanced Petrochemical, while political concerns continued to weigh on most other Gulf markets.
Saudi’s index was up 0.4% after snapping a four-day losing streak in the last session.
Advanced Petrochemical rose 5.9% after its Advanced Global Investment unit won a Government project to set up petrochemical plants for an estimated cost of $1.8 billion.
Saudi Arabia’s stock market rose on Wednesday, lifted by Advanced Petrochemical, while political concerns continued to weigh on most other Gulf markets.
Saudi’s index was up 0.4% after snapping a four-day losing streak in the last session.
Advanced Petrochemical rose 5.9% after its Advanced Global Investment unit won a Government project to set up petrochemical plants for an estimated cost of $1.8 billion.
OPEC+ Deal Pot Looks Sweeter for Russia as Gulf Money Flows In - Bloomberg
OPEC+ Deal Pot Looks Sweeter for Russia as Gulf Money Flows In - Bloomberg:
When the courtship between Russia and Saudi Arabia and its Gulf allies began more than four years ago, the prospect of billions in new investment for the region was big selling point for the Kremlin.
Now, as the two big oil producers mull whether to extend the centerpiece of their rapprochement — the deal to cut production that’s helped shore up crude prices around the world — the investment flood looks a lot smaller than promised. But for capital-starved Russia, it may still be enough.
“There is a certain frustration on the Russian side,” said Alexey Potemkin, the chief executive officer of Moscow Policy Group, a consultancy group that advises on Russia-Gulf business projects. In particular, he said the Saudis were stalling on some deals and “this raises questions among decision-makers about the seriousness of Russia’s Gulf counterparts with regard to investments.”
When the courtship between Russia and Saudi Arabia and its Gulf allies began more than four years ago, the prospect of billions in new investment for the region was big selling point for the Kremlin.
Now, as the two big oil producers mull whether to extend the centerpiece of their rapprochement — the deal to cut production that’s helped shore up crude prices around the world — the investment flood looks a lot smaller than promised. But for capital-starved Russia, it may still be enough.
“There is a certain frustration on the Russian side,” said Alexey Potemkin, the chief executive officer of Moscow Policy Group, a consultancy group that advises on Russia-Gulf business projects. In particular, he said the Saudis were stalling on some deals and “this raises questions among decision-makers about the seriousness of Russia’s Gulf counterparts with regard to investments.”
#Kuwait Wins MSCI Upgrade to Emerging Market Starting in 2020 - Bloomberg
Kuwait Wins MSCI Upgrade to Emerging Market Starting in 2020 - Bloomberg:
MSCI Inc. will add Kuwait to its main index tracking stocks in emerging markets next year, once some trading mechanisms are improved, in an upgrade that has been priced in by investors anticipating billions of dollars of inflows.
The change is due to happen in June 2020, the New York-based index compiler said in a statement on Tuesday. The Gulf country, whose $98 billion stock market is similar in size to those of New Zealand and Ireland, is currently the biggest member of the MSCI’s main frontier gauge.
The upgrade had been targeted by the local stock exchange and markets regulator as they modernized trading infrastructure to attract local and foreign investors. Kuwait will now have to compete for the attention of money managers that invest in much bigger markets such as China, India, Brazil, Russia and neighboring Saudi Arabia, which joined the MSCI’s EM index earlier this year.
MSCI Inc. will add Kuwait to its main index tracking stocks in emerging markets next year, once some trading mechanisms are improved, in an upgrade that has been priced in by investors anticipating billions of dollars of inflows.
The change is due to happen in June 2020, the New York-based index compiler said in a statement on Tuesday. The Gulf country, whose $98 billion stock market is similar in size to those of New Zealand and Ireland, is currently the biggest member of the MSCI’s main frontier gauge.
The upgrade had been targeted by the local stock exchange and markets regulator as they modernized trading infrastructure to attract local and foreign investors. Kuwait will now have to compete for the attention of money managers that invest in much bigger markets such as China, India, Brazil, Russia and neighboring Saudi Arabia, which joined the MSCI’s EM index earlier this year.
Middle East M&A activity slows down as caution prevails: PwC | ZAWYA MENA Edition
Middle East M&A activity slows down as caution prevails: PwC | ZAWYA MENA Edition:
Mergers and acquisitions in the Middle East continue to remain slow in the current year, with 44 deals reported in Q1 2019 versus 56 deals over the same period last year.
Additionally, only one IPO was reported in Q1 2019, down from four last year. Private equity activity also saw a decline, dropping from 26 percent to 21 percent of all deals in 2018.
However, PwC’s second TransAct Middle East edition, titled “What’s Shaping M&A in the Middle East?” reports that the market will continue to offer interesting deal opportunities, especially in technology and digital transformation.
Mergers and acquisitions in the Middle East continue to remain slow in the current year, with 44 deals reported in Q1 2019 versus 56 deals over the same period last year.
Additionally, only one IPO was reported in Q1 2019, down from four last year. Private equity activity also saw a decline, dropping from 26 percent to 21 percent of all deals in 2018.
However, PwC’s second TransAct Middle East edition, titled “What’s Shaping M&A in the Middle East?” reports that the market will continue to offer interesting deal opportunities, especially in technology and digital transformation.
VAT's impact on #UAE inflation was "short-term and temporary" - Moody's | ZAWYA MENA Edition
VAT's impact on UAE inflation was "short-term and temporary" - Moody's | ZAWYA MENA Edition:
The introduction of value-added tax in the United Arab Emirates last year had only a "small and short-lived" impact on inflation, a new note from credit ratings agency Moody's has said.
The ratings agency said that revelation last month that revenue collected from the tax was much higher than expected was "credit positive" for the emirates with sovereign ratings. Government figures state that 27 billion dirhams ($7.4 billion) worth of revenue was collected - substantially ahead of the 12 billion dirhams originally projected for last year, or even the 2o billion in revenue forecast for this year. The higher rates of revenue collected was attributed to higher levels of compliance with the tax than expected.
Some 30 percent of the revenue collected is going to federal government coffers, with the remainder being spread between the individual emirates based on where they were generated, as opposed to a combination of non-oil GDP and population.
The introduction of value-added tax in the United Arab Emirates last year had only a "small and short-lived" impact on inflation, a new note from credit ratings agency Moody's has said.
The ratings agency said that revelation last month that revenue collected from the tax was much higher than expected was "credit positive" for the emirates with sovereign ratings. Government figures state that 27 billion dirhams ($7.4 billion) worth of revenue was collected - substantially ahead of the 12 billion dirhams originally projected for last year, or even the 2o billion in revenue forecast for this year. The higher rates of revenue collected was attributed to higher levels of compliance with the tax than expected.
Some 30 percent of the revenue collected is going to federal government coffers, with the remainder being spread between the individual emirates based on where they were generated, as opposed to a combination of non-oil GDP and population.
Oil prices jump on U.S. crude stocks fall, major refinery outage - Reuters
Oil prices jump on U.S. crude stocks fall, major refinery outage - Reuters:
Oil prices hit their highest level in nearly a month on Wednesday, buoyed by an outage at a major refinery on the U.S. East Coast and industry data that showed U.S. crude stockpiles fell more than expected.
Brent crude futures, the international benchmark for oil, were up $1.03 a barrel at $66.08 by 0721 GMT. They earlier touched their highest since May 31 at $66.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $58.96 per barrel, up $1.13 from their last settlement. WTI earlier hit its strongest level since May 30 at $59.13 a barrel.
Oil prices hit their highest level in nearly a month on Wednesday, buoyed by an outage at a major refinery on the U.S. East Coast and industry data that showed U.S. crude stockpiles fell more than expected.
Brent crude futures, the international benchmark for oil, were up $1.03 a barrel at $66.08 by 0721 GMT. They earlier touched their highest since May 31 at $66.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $58.96 per barrel, up $1.13 from their last settlement. WTI earlier hit its strongest level since May 30 at $59.13 a barrel.
#UAE's Abu Dhabi Financial Group & Shuaa Capital agree on merger - Reuters
UAE's Abu Dhabi Financial Group & Shuaa Capital agree on merger - Reuters:
Abu Dhabi Financial Group (ADFG) and Shuaa Capital have agreed on the terms of their merger, which will create an entity with $12.8 billion in assets under management.
Under the agreement, Shuaa will issue 1.47 billion new shares to ADFG’s parent company, Abu Dhabi Capital Management, in return for the entire issued shares of ADFG, the companies said in a joint statement on Wednesday.
ADFG’s shareholders will own 58% of the enlarged entity while Shuaa’s existing shareholders will own 42%.
Abu Dhabi Financial Group (ADFG) and Shuaa Capital have agreed on the terms of their merger, which will create an entity with $12.8 billion in assets under management.
Under the agreement, Shuaa will issue 1.47 billion new shares to ADFG’s parent company, Abu Dhabi Capital Management, in return for the entire issued shares of ADFG, the companies said in a joint statement on Wednesday.
ADFG’s shareholders will own 58% of the enlarged entity while Shuaa’s existing shareholders will own 42%.
#SaudiArabia's Nayifat reschedules IPO roadshow - Reuters
Saudi Arabia's Nayifat reschedules IPO roadshow - Reuters:
Saudi Arabia’s Nayifat Finance Company has rescheduled a road show and book building process for its public offering that was originally planned for June 24, it said in a statement on Wednesday.
“The rescheduling is in the interest of selecting the next suitable window for the IPO,” the statement said, without giving further details.
In March, Saudi stock market regulator (CMA) approved Nayifat’s application for floating 30% of its capital.
Saudi Arabia’s Nayifat Finance Company has rescheduled a road show and book building process for its public offering that was originally planned for June 24, it said in a statement on Wednesday.
“The rescheduling is in the interest of selecting the next suitable window for the IPO,” the statement said, without giving further details.
In March, Saudi stock market regulator (CMA) approved Nayifat’s application for floating 30% of its capital.
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