Oil Rises as OPEC Extends Supply Cuts, Overcoming Demand Jitters - Bloomberg:
Oil closed higher to finish a roller-coaster trading session, as an OPEC agreement to extend output curbs outweighed troubling economic data.
After surging at the start on Monday, oil prices spent much of the day drifting lower, even after OPEC members quickly decided to prolong production cuts by nine months. The coalition then spent hours arguing over a proposal to formalize cooperation with Russia and other allies. Futures closed up 1.1% in New York, after surrendering a gain of more than 3% earlier in the day.
While drawn-out OPEC negotiations are nothing new, “people are getting a bit restless," said Ashley Petersen, an oil analyst at Stratas Advisors LLC in New York. Monday’s rally may have lost steam as investors cashed in on gains after this weekend’s trade-war truce between the U.S. and China, she said. “With the expectations for the OPEC+ meeting today, markets came into the week feeling very good, and they still do which is why we saw that profit taking."
Monday 1 July 2019
Oil steadies on OPEC cuts, but oversupply fears persist - Reuters
Oil steadies on OPEC cuts, but oversupply fears persist - Reuters:
Oil prices steadied on Monday as OPEC extended supply cuts until March 2020 during a meeting in Vienna, but prices pared gains as oversupply worries continued to overshadow the market.
The Organization of the Petroleum Exporting Countries agreed on Monday to extend oil supply cuts until March 2020, three OPEC sources said, as the group’s members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring U.S. production.
OPEC is slated to meet with Russia and other producers, an alliance known as OPEC+, on Tuesday to discuss supply cuts amid surging U.S. output.
Brent crude futures for September delivery were up 10 cents a barrel at $64.84 at 11:42 a.m. EDT (1542 GMT) after earlier rallying to $66.75. The August delivery contract closed at $66.55 a barrel on Friday.
Oil prices steadied on Monday as OPEC extended supply cuts until March 2020 during a meeting in Vienna, but prices pared gains as oversupply worries continued to overshadow the market.
The Organization of the Petroleum Exporting Countries agreed on Monday to extend oil supply cuts until March 2020, three OPEC sources said, as the group’s members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring U.S. production.
OPEC is slated to meet with Russia and other producers, an alliance known as OPEC+, on Tuesday to discuss supply cuts amid surging U.S. output.
Brent crude futures for September delivery were up 10 cents a barrel at $64.84 at 11:42 a.m. EDT (1542 GMT) after earlier rallying to $66.75. The August delivery contract closed at $66.55 a barrel on Friday.
Russia wants #Iran to remain equal player in global energy market: Novak - Reuters
Russia wants Iran to remain equal player in global energy market: Novak - Reuters:
Russian Energy Minister Alexander Novak said after meeting his Iranian counterpart Bijan Zanganeh in Vienna on Monday that Moscow was interested in Iran remaining an equal player in the global energy market, according to a statement released by the Russian energy ministry.
Washington has demanded that Saudi Arabia pump more oil to compensate for lower exports from Iran after the United States slapped fresh sanctions on Tehran over its nuclear program.
Russian Energy Minister Alexander Novak said after meeting his Iranian counterpart Bijan Zanganeh in Vienna on Monday that Moscow was interested in Iran remaining an equal player in the global energy market, according to a statement released by the Russian energy ministry.
Washington has demanded that Saudi Arabia pump more oil to compensate for lower exports from Iran after the United States slapped fresh sanctions on Tehran over its nuclear program.
MIDEAST STOCKS- #Saudi extends gains as global rally lifts most of Gulf - Reuters
MIDEAST STOCKS-Saudi extends gains as global rally lifts most of Gulf - Reuters:
Saudi Arabia's stock market rose for a
fifth straight day on Monday as most major Gulf bourses gained,
reflecting positive global market sentiment after the United
States and China reached a trade war truce.
Saudi's index was up 0.4% with banks leading gains.
Al Rajhi Bank rose 0.9% and Arab National Bank
climbed 2.9%.
The index is up 13% this year, led by foreign investors, who
have been net buyers of Saudi equities in recent months.
Saudi Arabia's stock market rose for a
fifth straight day on Monday as most major Gulf bourses gained,
reflecting positive global market sentiment after the United
States and China reached a trade war truce.
Saudi's index was up 0.4% with banks leading gains.
Al Rajhi Bank rose 0.9% and Arab National Bank
climbed 2.9%.
The index is up 13% this year, led by foreign investors, who
have been net buyers of Saudi equities in recent months.
#SaudiArabia and Russia Aren't Feeling OPEC's Market-Share Pain - Bloomberg
Saudi Arabia and Russia Aren't Feeling OPEC's Market-Share Pain - Bloomberg:
OPEC may be losing its share of the global oil market, but not all losses are spread equally.
Though the producer group’s portion of the market is now its lowest in almost 30 years, nearly all the pain is being inflicted on Venezuela and Iran, says Bjarne Schieldrop, chief commodities analyst at SEB AB. The Latin American country’s output is in free-fall under the Maduro government, while Iran’s supplies are being hit by U.S. sanctions. At the same time, Saudi Arabia is only producing marginally below its average level for the previous four years, while Russia is higher than that, according to Schieldrop.
That makes it easy to see why the major producers have been relaxed about keeping production cuts as OPEC and its allies meet in Vienna this week. While Iran’s output has fallen by about 40% since the start of last year, Saudi Arabia’s is down just 2% over the same period.
OPEC may be losing its share of the global oil market, but not all losses are spread equally.
Though the producer group’s portion of the market is now its lowest in almost 30 years, nearly all the pain is being inflicted on Venezuela and Iran, says Bjarne Schieldrop, chief commodities analyst at SEB AB. The Latin American country’s output is in free-fall under the Maduro government, while Iran’s supplies are being hit by U.S. sanctions. At the same time, Saudi Arabia is only producing marginally below its average level for the previous four years, while Russia is higher than that, according to Schieldrop.
That makes it easy to see why the major producers have been relaxed about keeping production cuts as OPEC and its allies meet in Vienna this week. While Iran’s output has fallen by about 40% since the start of last year, Saudi Arabia’s is down just 2% over the same period.
Oil Jumps as OPEC+ Signals Extended Cuts, U.S.-China Hit Pause - Bloomberg
Oil Jumps as OPEC+ Signals Extended Cuts, U.S.-China Hit Pause - Bloomberg:
Oil surged to a five-week high in New York after members of the OPEC+ group, including Saudi Arabia and Russia, signaled an extension of output cuts, and as a China-U.S. agreement to restart trade talks improved the demand outlook.
Futures rose as much as 3.1% after rallying 11% over the past two weeks. A committee of OPEC and its allies recommended extending output cuts for nine months as meetings on production policy got underway in Vienna. Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman agreed to prolong the curbs over the weekend. Washington and Beijing declared a truce to their trade war and the U.S. will hold off on imposing additional tariffs on China.
Oil rose by the most since January last month after escalating tensions in the Middle East spurred concerns over supply. Concerns increased as Iran began to renege on its commitments to a nuclear deal. Separately, the Persian Gulf nation, is backing an extension of OPEC+ output curbs, removing a major hurdle for Saudi Arabia and Russia’s plans.
Oil surged to a five-week high in New York after members of the OPEC+ group, including Saudi Arabia and Russia, signaled an extension of output cuts, and as a China-U.S. agreement to restart trade talks improved the demand outlook.
Futures rose as much as 3.1% after rallying 11% over the past two weeks. A committee of OPEC and its allies recommended extending output cuts for nine months as meetings on production policy got underway in Vienna. Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman agreed to prolong the curbs over the weekend. Washington and Beijing declared a truce to their trade war and the U.S. will hold off on imposing additional tariffs on China.
Oil rose by the most since January last month after escalating tensions in the Middle East spurred concerns over supply. Concerns increased as Iran began to renege on its commitments to a nuclear deal. Separately, the Persian Gulf nation, is backing an extension of OPEC+ output curbs, removing a major hurdle for Saudi Arabia and Russia’s plans.
Lebanon dollar debt rises after #Qatar says it bought bonds - Reuters
Lebanon dollar debt rises after Qatar says it bought bonds - Reuters:
Dollar-denominated bonds issued by Lebanon’s government rose on Monday after a Qatari official said on Sunday the Gulf state had bought some of the country’s bonds.
The 2037 issue jumped more than 3 cents to trade at 79.24 cents - its highest since early May, according to Refinitiv data.
The bond buying had been part of a $500 million investment in the Lebanese economy, a Qatari government official said on Sunday. Lebanese Finance Minister Ali Hassan Khalil said the move showed Qatar’s commitment to Lebanon’s financial stability.
Dollar-denominated bonds issued by Lebanon’s government rose on Monday after a Qatari official said on Sunday the Gulf state had bought some of the country’s bonds.
The 2037 issue jumped more than 3 cents to trade at 79.24 cents - its highest since early May, according to Refinitiv data.
The bond buying had been part of a $500 million investment in the Lebanese economy, a Qatari government official said on Sunday. Lebanese Finance Minister Ali Hassan Khalil said the move showed Qatar’s commitment to Lebanon’s financial stability.
UPDATE 2- #SaudiArabia widens funding base with dual-tranche debut euro bond - Reuters
UPDATE 2-Saudi Arabia widens funding base with dual-tranche debut euro bond - Reuters:
Saudi Arabia has hired a group of banks including Goldman Sachs and Societe Generale to arrange a global investor call ahead of an issuance of euro-denominated bonds, its first in that currency, as the kingdom seeks to diversify its investor base.
Riyadh has become a regular debt issuer over the past few years to offset the impact of lower oil prices on its finances.
It has so far issued debt in Saudi riyal and U.S. dollars, but its planned debut in the euro-denominated markets shows it is targeting new funding sources for future issues.
Saudi Arabia has hired a group of banks including Goldman Sachs and Societe Generale to arrange a global investor call ahead of an issuance of euro-denominated bonds, its first in that currency, as the kingdom seeks to diversify its investor base.
Riyadh has become a regular debt issuer over the past few years to offset the impact of lower oil prices on its finances.
It has so far issued debt in Saudi riyal and U.S. dollars, but its planned debut in the euro-denominated markets shows it is targeting new funding sources for future issues.
#Saudi Buying of U.S. Debt Has Soared Since Trump's Election - Bloomberg
Saudi Buying of U.S. Debt Has Soared Since Trump's Election - Bloomberg:
By now, President Donald Trump’s bromance with Mohammed bin Salman of Saudi Arabia is well documented. The platitudes and chummy photo-ops. The billions of dollars in U.S. arms sales. And, of course, the willingness to brush aside evidence implicating the crown prince in the murder of journalist Jamal Khashoggi.
But what’s gone largely unnoticed is just how enthusiastic the kingdom has been in snapping up America’s debt.
After aggressively culling its holdings of U.S. government debt for most of 2016, Saudi Arabia has amassed an even larger position since Trump’s election in November that year. Based on the latest reported figures, the nation nearly doubled its ownership of Treasuries to $177 billion. No major foreign creditor has ramped up its lending to the U.S. faster.
By now, President Donald Trump’s bromance with Mohammed bin Salman of Saudi Arabia is well documented. The platitudes and chummy photo-ops. The billions of dollars in U.S. arms sales. And, of course, the willingness to brush aside evidence implicating the crown prince in the murder of journalist Jamal Khashoggi.
But what’s gone largely unnoticed is just how enthusiastic the kingdom has been in snapping up America’s debt.
After aggressively culling its holdings of U.S. government debt for most of 2016, Saudi Arabia has amassed an even larger position since Trump’s election in November that year. Based on the latest reported figures, the nation nearly doubled its ownership of Treasuries to $177 billion. No major foreign creditor has ramped up its lending to the U.S. faster.
MIDEAST STOCKS- #Saudi weighed down by lenders, #Qatar extends gains - Reuters
MIDEAST STOCKS-Saudi weighed down by lenders, Qatar extends gains - Reuters:
Saudi Arabia’s stock market snapped a four-day winning streak on Monday, weighed down by its financial stocks, while Qatar extended gains as a stock split continued to attract investors.
Saudi’s index was down 0.1% with banks leading the retreat. Saudi British Bank fell 1% and the lender Samba Financial Group dropped 0.8%.
But Tihama Advertising And Public Relations And Marketing Holding jumped 6.1% after posting a higher full-year profit.
Saudi Arabia’s stock market snapped a four-day winning streak on Monday, weighed down by its financial stocks, while Qatar extended gains as a stock split continued to attract investors.
Saudi’s index was down 0.1% with banks leading the retreat. Saudi British Bank fell 1% and the lender Samba Financial Group dropped 0.8%.
But Tihama Advertising And Public Relations And Marketing Holding jumped 6.1% after posting a higher full-year profit.
#Dubai's DIFC offers reduced fees, flexi offices for 'prescribed' firms | ZAWYA MENA Edition
Dubai's DIFC offers reduced fees, flexi offices for 'prescribed' firms | ZAWYA MENA Edition:
The Dubai International Financial Centre (DIFC) has introduced a new classification called Prescribed Companies, aimed at consolidation, expansion and fee reduction for intermediate special-purpose vehicles (ISPVs) and special purpose companies (SPCs).
The new business-friendly regulatory framework will replace ISPVs and SPCs with a unified, simplified and more expansive regime with a competitive cost-structure.
“The prescribed companies are essentially structured vehicles and not meant to be operational like a day-to-day trading vehicle,” Jacques Visser, Chief Legal Officer, DIFC Authority, told Zawya.
The Dubai International Financial Centre (DIFC) has introduced a new classification called Prescribed Companies, aimed at consolidation, expansion and fee reduction for intermediate special-purpose vehicles (ISPVs) and special purpose companies (SPCs).
The new business-friendly regulatory framework will replace ISPVs and SPCs with a unified, simplified and more expansive regime with a competitive cost-structure.
“The prescribed companies are essentially structured vehicles and not meant to be operational like a day-to-day trading vehicle,” Jacques Visser, Chief Legal Officer, DIFC Authority, told Zawya.
UPDATE 1- #Dubai's DP World acquires Topaz Energy in $1 bln deal - Reuters
UPDATE 1-Dubai's DP World acquires Topaz Energy in $1 bln deal - Reuters:
DP World, one of the world’s largest port operators, on Monday said it had acquired Dubai-headquartered oil services and marine logistics company Topaz Energy and Marine in a deal worth $1.08 billion on an enterprise value basis.
DP World, also based in Dubai, acquired the company from Oman-listed Renaissance Services and Standard Chartered Private Equity.
Topaz, which operates in the Caspian Sea, the Middle East and West Africa, has a fleet of 117 vessels. It works with oil giants such as BP, Exxon Mobil and Saudi Aramco.
DP World, one of the world’s largest port operators, on Monday said it had acquired Dubai-headquartered oil services and marine logistics company Topaz Energy and Marine in a deal worth $1.08 billion on an enterprise value basis.
DP World, also based in Dubai, acquired the company from Oman-listed Renaissance Services and Standard Chartered Private Equity.
Topaz, which operates in the Caspian Sea, the Middle East and West Africa, has a fleet of 117 vessels. It works with oil giants such as BP, Exxon Mobil and Saudi Aramco.
OPEC set to extend oil supply cut as Iran endorses pact - Reuters
OPEC set to extend oil supply cut as Iran endorses pact - Reuters:
OPEC and its allies look set to extend oil supply cuts this week at least until the end of 2019 as Iran joined top producers Saudi Arabia, Iraq and Russia in endorsing a policy aimed at propping up the price of crude amid a weakening global economy.
Iranian Oil Minister Bijan Zanganeh told reporters on Monday he would support prolonging output cuts by six to nine months. Tehran has in the past objected to policies put forward by arch-rival Saudi Arabia, saying Riyadh was too close to Washington.
“I have no problem with a production cut ... It’s going to be an easy meeting as my stance is very clear,” Zanganeh told reporters upon arriving in Vienna.
OPEC and its allies look set to extend oil supply cuts this week at least until the end of 2019 as Iran joined top producers Saudi Arabia, Iraq and Russia in endorsing a policy aimed at propping up the price of crude amid a weakening global economy.
Iranian Oil Minister Bijan Zanganeh told reporters on Monday he would support prolonging output cuts by six to nine months. Tehran has in the past objected to policies put forward by arch-rival Saudi Arabia, saying Riyadh was too close to Washington.
“I have no problem with a production cut ... It’s going to be an easy meeting as my stance is very clear,” Zanganeh told reporters upon arriving in Vienna.
Oil prices jump over 2% as OPEC set to extend supply cuts - Reuters
Oil prices jump over 2% as OPEC set to extend supply cuts - Reuters:
Oil prices rose more than $1 a barrel on Monday, with OPEC and its allies on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.
Front-month Brent crude futures, for September, touched an intraday high of $66.63 a barrel and were up $1.72, or 2.7%, at $66.46 a barrel by 0639 GMT.
U.S. crude futures for August climbed $1.52, or 2.6%, to $59.99 a barrel, after earlier hitting their highest in over five weeks at $60.13.
Oil prices rose more than $1 a barrel on Monday, with OPEC and its allies on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.
Front-month Brent crude futures, for September, touched an intraday high of $66.63 a barrel and were up $1.72, or 2.7%, at $66.46 a barrel by 0639 GMT.
U.S. crude futures for August climbed $1.52, or 2.6%, to $59.99 a barrel, after earlier hitting their highest in over five weeks at $60.13.
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