Oil prices climb as U.S. equities rally, rig count drops - Reuters:
Oil prices edged higher on Wednesday ahead of a U.S. holiday, after falling steeply a day earlier as worries about a slowing global economy outweighed a decision by OPEC and allies to extend crude output cuts.
Strength in the U.S equities market and data showing U.S. energy firms this week reduced the number of oil rigs operating for the first time in three weeks helped support oil prices.
Each of the major U.S. stock indexes finished at a record closing high, as expectations grew that the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy.
U.S. oil drillers cut five oil rigs in the week to July 3, bringing the total count down to 788, General Electric Co’s (GE.N) Baker Hughes energy services firm said in its closely followed report. Record U.S. crude production has pressured prices over the past year.
September Brent crude futures LCOc1 ended the session up $1.42, or 2.3%, at $63.82 a barrel. U.S. crude futures for August delivery CLc1 settled up $1.09, or 1.9%, at $57.34 a barrel.
Wednesday, 3 July 2019
COLUMN-Global economy heading for trouble as manufacturing and construction shrink: Kemp - Reuters
COLUMN-Global economy heading for trouble as manufacturing and construction shrink: Kemp - Reuters:
Global manufacturing and construction sectors have already entered a downturn; the service sector is all that now stands between the economy and a full-blown recession.
Global manufacturers reported new export orders fell for a 10th month running in June, with the most widespread decline for six years, according to the JPMorgan global purchasing managers survey.
Even in the United States, which has escaped relatively mildly so far from the downturn hitting Europe and Asia, there are now clear signs growth has stalled across the manufacturing and construction industries.
Global manufacturing and construction sectors have already entered a downturn; the service sector is all that now stands between the economy and a full-blown recession.
Global manufacturers reported new export orders fell for a 10th month running in June, with the most widespread decline for six years, according to the JPMorgan global purchasing managers survey.
Even in the United States, which has escaped relatively mildly so far from the downturn hitting Europe and Asia, there are now clear signs growth has stalled across the manufacturing and construction industries.
Oil prices rise after U.S. crude stockpile drop - Reuters
Oil prices rise after U.S. crude stockpile drop - Reuters:
Oil prices rebounded on Wednesday after a steep fall in the previous session when OPEC and its allies’ decision to extend output cuts was not enough to counter investors’ concerns about the slowing global economy.
Prices were supported by a strong U.S. stock market opening and widely watched data showing a larger-than-expected drawdown in U.S. crude oil inventories, with government data due later in the day.
Brent crude futures LCOc1 for September delivery were trading up 95 cents at $63.35 a barrel by 1350 GMT.
U.S. crude futures for August CLc1 were up 76 cents at $57.01 a barrel. Both benchmarks fell more than 4% on Tuesday on worries about a global economic slowdown.
Oil prices rebounded on Wednesday after a steep fall in the previous session when OPEC and its allies’ decision to extend output cuts was not enough to counter investors’ concerns about the slowing global economy.
Prices were supported by a strong U.S. stock market opening and widely watched data showing a larger-than-expected drawdown in U.S. crude oil inventories, with government data due later in the day.
Brent crude futures LCOc1 for September delivery were trading up 95 cents at $63.35 a barrel by 1350 GMT.
U.S. crude futures for August CLc1 were up 76 cents at $57.01 a barrel. Both benchmarks fell more than 4% on Tuesday on worries about a global economic slowdown.
MIDEAST STOCKS-Most Gulf markets reverse course, #Kuwait extends gains on MSCI upgrade - Reuters
MIDEAST STOCKS-Most Gulf markets reverse course, Kuwait extends gains on MSCI upgrade - Reuters:
Most major Middle East markets clawed
back earlier losses on Wednesday largely on back of their
financial stocks, while Kuwait rose for the fifth straight
session after MSCI's decision to upgrade Kuwaiti equities to its
main emerging markets index.
The Saudi index rose 0.2% with Al Rajhi Bank
rising 0.6% and National Commercial Bank up
0.7%.
Gulf General Cooperative Insurance jumped 7.7%
after it won an insurance contract worth over 5% of its revenue
in 2018.
Most major Middle East markets clawed
back earlier losses on Wednesday largely on back of their
financial stocks, while Kuwait rose for the fifth straight
session after MSCI's decision to upgrade Kuwaiti equities to its
main emerging markets index.
The Saudi index rose 0.2% with Al Rajhi Bank
rising 0.6% and National Commercial Bank up
0.7%.
Gulf General Cooperative Insurance jumped 7.7%
after it won an insurance contract worth over 5% of its revenue
in 2018.
Oil Edges Higher as Inventory Drop Helps to Ease Post-OPEC Gloom - Bloomberg
Oil Edges Higher as Inventory Drop Helps to Ease Post-OPEC Gloom - Bloomberg:
Oil gained after suffering its worst reaction to an OPEC meeting in more than four years.
Futures rose 0.8% in New York after an industry report showed U.S. oil inventories declined by almost 5 million barrels last week. Prices were still far from recovering Tuesday’s 4.8% decline, when concerns about the global economy overshadowed OPEC and its allies’ decision to extend output cuts for nine months. It was the biggest drop following an OPEC gathering since November 2014.
The Organization of Petroleum Exporting Countries and its friends including Russia agreed on Tuesday to prolong cuts into 2020 as they seek to reduce global stockpiles. But divisions remained over which measure of inventories should be used to determine the scale of the supply glut. Concerns over oil demand resurfaced following weak manufacturing data from the U.S., China and Europe.
Oil gained after suffering its worst reaction to an OPEC meeting in more than four years.
Futures rose 0.8% in New York after an industry report showed U.S. oil inventories declined by almost 5 million barrels last week. Prices were still far from recovering Tuesday’s 4.8% decline, when concerns about the global economy overshadowed OPEC and its allies’ decision to extend output cuts for nine months. It was the biggest drop following an OPEC gathering since November 2014.
The Organization of Petroleum Exporting Countries and its friends including Russia agreed on Tuesday to prolong cuts into 2020 as they seek to reduce global stockpiles. But divisions remained over which measure of inventories should be used to determine the scale of the supply glut. Concerns over oil demand resurfaced following weak manufacturing data from the U.S., China and Europe.
War or Not, Bond Investors Are Taking Their Chances in the Gulf - Bloomberg
War or Not, Bond Investors Are Taking Their Chances in the Gulf - Bloomberg:
Bond investors can’t resist the allure of Gulf debt even as the region teeters on the brink of conflict between the U.S. and Iran.
Staring down about $13 trillion of negative-yielding global debt, investors are going for the payout on bonds in the Gulf Cooperation Council, a six-nation bloc arrayed across from Iran. Their inclusion in JPMorgan Chase & Co.’s emerging-market indexes also means there’s consistent demand for sovereign debt from the region, which boasts an average credit rating of A+. Saudi Arabia sold its first-ever euro bonds on Tuesday.
Tensions in the Gulf spiked since the U.S. exited a nuclear accord with Iran a year ago and reimposed crippling sanctions. Following the Iranian downing of an American drone, President Donald Trump called off retaliatory airstrikes minutes before the action was set to start.
Bond investors can’t resist the allure of Gulf debt even as the region teeters on the brink of conflict between the U.S. and Iran.
Staring down about $13 trillion of negative-yielding global debt, investors are going for the payout on bonds in the Gulf Cooperation Council, a six-nation bloc arrayed across from Iran. Their inclusion in JPMorgan Chase & Co.’s emerging-market indexes also means there’s consistent demand for sovereign debt from the region, which boasts an average credit rating of A+. Saudi Arabia sold its first-ever euro bonds on Tuesday.
Tensions in the Gulf spiked since the U.S. exited a nuclear accord with Iran a year ago and reimposed crippling sanctions. Following the Iranian downing of an American drone, President Donald Trump called off retaliatory airstrikes minutes before the action was set to start.
#AbuDhabi Commercial Bank to Cut About 2,000 Jobs After Merger - Bloomberg
Abu Dhabi Commercial Bank to Cut About 2,000 Jobs After Merger - Bloomberg:
Abu Dhabi Commercial Bank PJSC, which completed a three-way merger earlier this year, may cut about 2,000 jobs as the lenders integrate operations, people with knowledge of the plans said.
The state-controlled bank started the job cuts once it began combining with Union National Bank PJSC and Al Hilal Bank PJSC, the people said, asking not to be identified because the information is private. It will complete the process in the next few months, the people said.
A spokesman for ADCB declined to comment.
Abu Dhabi Commercial Bank PJSC, which completed a three-way merger earlier this year, may cut about 2,000 jobs as the lenders integrate operations, people with knowledge of the plans said.
The state-controlled bank started the job cuts once it began combining with Union National Bank PJSC and Al Hilal Bank PJSC, the people said, asking not to be identified because the information is private. It will complete the process in the next few months, the people said.
A spokesman for ADCB declined to comment.
INTERVIEW: #UAE, #Saudi stepping up anti-money laundering measures- U.N. official | ZAWYA MENA Edition
INTERVIEW: UAE, Saudi stepping up anti-money laundering measures- U.N. official | ZAWYA MENA Edition:
The United Arab Emirates and Saudi Arabia are moving forward with their plans to counter money laundering, especially as the rise of fintech raises risks of illicit financial transactions, a United Nations official said.
The UAE has just launched a new anti-money laundering system (goAML) which was developed by the United Nations Office on Drugs and Crime (UNODC) for use by the UAE Central Bank’s Financial Intelligence Unit (FIU).The platform facilitates the receipt, analysis, and dissemination of illicit transactions and activity to law enforcement authorities in the UAE.
“It will enhance the flow of money because it will increase the capacity of the FIU on the detection of illicit financial transactions,” Hatem Fouad Aly, United Nations Office on Drugs and Crime (UNODC) representative for the GCC region told Zawya at an event in Abu Dhabi.
The United Arab Emirates and Saudi Arabia are moving forward with their plans to counter money laundering, especially as the rise of fintech raises risks of illicit financial transactions, a United Nations official said.
The UAE has just launched a new anti-money laundering system (goAML) which was developed by the United Nations Office on Drugs and Crime (UNODC) for use by the UAE Central Bank’s Financial Intelligence Unit (FIU).The platform facilitates the receipt, analysis, and dissemination of illicit transactions and activity to law enforcement authorities in the UAE.
“It will enhance the flow of money because it will increase the capacity of the FIU on the detection of illicit financial transactions,” Hatem Fouad Aly, United Nations Office on Drugs and Crime (UNODC) representative for the GCC region told Zawya at an event in Abu Dhabi.
#Qatar Petroleum cuts June land crude by 10.5 pct, marine by 10.6 pct - Reuters
Qatar Petroleum cuts June land crude by 10.5 pct, marine by 10.6 pct - Reuters:
Qatar Petroleum cut June prices of its land crude by 10.5 percent and its marine crude by 10.6 percent compared with May, the state news agency QNA reported on Wednesday.
Qatar Petroleum cut June prices of its land crude by 10.5 percent and its marine crude by 10.6 percent compared with May, the state news agency QNA reported on Wednesday.
Under pressure from Trump, OPEC embraces Putin - Reuters
Under pressure from Trump, OPEC embraces Putin - Reuters:
When Vladimir Putin announced at the weekend that OPEC would extend oil production cuts, broadcasting a deal before the group had even met to approve it, the move angered some member nations.
They were dismayed at the leading role non-OPEC Russia, once seen as the group’s rival in oil markets, was playing in shaping the group’s policies.
But reality soon set in, and the acceptance that Moscow could help OPEC in its goal of propping up oil prices at a time when it is facing intensifying heat on another front: from U.S. President Donald Trump.
When Vladimir Putin announced at the weekend that OPEC would extend oil production cuts, broadcasting a deal before the group had even met to approve it, the move angered some member nations.
They were dismayed at the leading role non-OPEC Russia, once seen as the group’s rival in oil markets, was playing in shaping the group’s policies.
But reality soon set in, and the acceptance that Moscow could help OPEC in its goal of propping up oil prices at a time when it is facing intensifying heat on another front: from U.S. President Donald Trump.
#UAE's Al Jaber Agrees to Second Restructuring of $1.5 Billion - Bloomberg
U.A.E.'s Al Jaber Agrees to Second Restructuring of $1.5 Billion - Bloomberg:
Al Jaber Group, a family-owned business in Abu Dhabi, agreed with banks to restructure $1.5 billion of debt for a second time after sluggish economic growth hurt cash flow, people with knowledge of the plan said.
The group is close to signing a deal with about 20 creditors to push out loan maturities to December 2026, said the people, asking not to be identified because the information is private.
In return, Al Jaber will seek to raise about 1.63 billion dirhams ($444 million) from asset sales by the end of 2020 and is in the process of hiring sale managers. Members of the Al Jaber family, as well as other shareholders, will also try to raise as much as 765 million dirhams by selling personal assets, according to the people.
Al Jaber Group, a family-owned business in Abu Dhabi, agreed with banks to restructure $1.5 billion of debt for a second time after sluggish economic growth hurt cash flow, people with knowledge of the plan said.
The group is close to signing a deal with about 20 creditors to push out loan maturities to December 2026, said the people, asking not to be identified because the information is private.
In return, Al Jaber will seek to raise about 1.63 billion dirhams ($444 million) from asset sales by the end of 2020 and is in the process of hiring sale managers. Members of the Al Jaber family, as well as other shareholders, will also try to raise as much as 765 million dirhams by selling personal assets, according to the people.
#Saudi Oil Minister: Aramco IPO ’Never Fully Suspended’ – Bloomberg
Saudi Oil Minister: Aramco IPO ’Never Fully Suspended’ – Bloomberg:
Saudi Arabian Oil Minister Khalid Al-Falih talks about Aramco's planned initial public offering. He spoke to reporters after the OPEC+ meeting in Vienna on Tuesday. (Source: Bloomberg)
Saudi Arabian Oil Minister Khalid Al-Falih talks about Aramco's planned initial public offering. He spoke to reporters after the OPEC+ meeting in Vienna on Tuesday. (Source: Bloomberg)
Oil Weighed Down as Global Economic Gloom Rains on OPEC's Parade - Bloomberg
Oil Weighed Down as Global Economic Gloom Rains on OPEC's Parade - Bloomberg:
Oil struggled to recover after suffering its worst reaction to an OPEC meeting in more than four years.
Futures were marginally higher in New York after an industry report showed American oil inventories declined by almost 5 million barrels last week. Prices were still far from recovering their 4.8% loss on Tuesday when concerns about the global economy overshadowed a decision by the Organization of Petroleum Exporting Countries and its allies to extend output cuts for nine months. It was the biggest drop following an OPEC gathering since November 2014.
Oil struggled to recover after suffering its worst reaction to an OPEC meeting in more than four years.
Futures were marginally higher in New York after an industry report showed American oil inventories declined by almost 5 million barrels last week. Prices were still far from recovering their 4.8% loss on Tuesday when concerns about the global economy overshadowed a decision by the Organization of Petroleum Exporting Countries and its allies to extend output cuts for nine months. It was the biggest drop following an OPEC gathering since November 2014.
MIDEAST STOCKS-Global economy worries weigh on most of Gulf, #Kuwait outperforms on MSCI upgrade - Reuters
MIDEAST STOCKS-Global economy worries weigh on most of Gulf, Kuwait outperforms on MSCI upgrade - Reuters:
Most major Gulf stock markets slipped on Wednesday, in line with global equities amid concerns about a slowdown in the world economy, but Kuwait continued to rally in the wake of MSCI’s decision to upgrade Kuwaiti equities to its main emerging markets index.
The Saudi index was down 0.1% after snapping a five-day winning streak in the previous session, with Yanbu National Petrochemical falling 2.7% and Saudi Telecom down 0.8%.
The index is still up 12.8% this year, led by foreign investors. Saudi exchange data released on Monday showed foreigners bought a net 16.16 billion riyals’ ($4.3 billion) worth of Saudi stocks last month.
Most major Gulf stock markets slipped on Wednesday, in line with global equities amid concerns about a slowdown in the world economy, but Kuwait continued to rally in the wake of MSCI’s decision to upgrade Kuwaiti equities to its main emerging markets index.
The Saudi index was down 0.1% after snapping a five-day winning streak in the previous session, with Yanbu National Petrochemical falling 2.7% and Saudi Telecom down 0.8%.
The index is still up 12.8% this year, led by foreign investors. Saudi exchange data released on Monday showed foreigners bought a net 16.16 billion riyals’ ($4.3 billion) worth of Saudi stocks last month.
Morgan Stanley cuts long-term Brent price view after OPEC supply cuts - Reuters
Morgan Stanley cuts long-term Brent price view after OPEC supply cuts - Reuters:
Morgan Stanley lowered its long-term Brent price forecast on Tuesday and said the oil market is broadly balanced in 2019 after OPEC and its allies including Russia agreed to extend their production cuts by even longer than expected.
The bank lowered its long-term Brent price forecast to $60 per barrel from $65 per barrel, while it expects prices for the global benchmark to fluctuate around $65 per barrel, from $67.5 per barrel previously, in the next three quarters.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group knows as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices.
Morgan Stanley lowered its long-term Brent price forecast on Tuesday and said the oil market is broadly balanced in 2019 after OPEC and its allies including Russia agreed to extend their production cuts by even longer than expected.
The bank lowered its long-term Brent price forecast to $60 per barrel from $65 per barrel, while it expects prices for the global benchmark to fluctuate around $65 per barrel, from $67.5 per barrel previously, in the next three quarters.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group knows as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices.
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