Crude Rebounds as U.S. Payrolls Surge Eases Economic Jitters - Bloomberg:
Oil rebounded, erasing the day’s losses, as a forecast-topping U.S. employment report offered hope for a crude market consumed by economic worries. Prices were still set for a weekly decline, though.
Futures in New York edged 0.2% higher after earlier dropping as much as 1.8%. Payrolls climbed by 224,000 in June, exceeding all economist estimates. The ultimate fallout of the report was unclear, though, as investors fretted that labor-market strength would decrease the odds of a Federal Reserve rate cut. The dollar surged, adding to pressure on commodities sold in the U.S. currency.
West Texas Intermediate crude was still headed for a weekly decline, as German factory orders added to a spate of sluggish manufacturing data around the globe. That’s overshadowed this week’s decision by OPEC and its allies to extend supply curbs and the seizure of a tanker carrying Iranian crude by British special forces on Thursday.
Friday, 5 July 2019
All About That #Saudi Plan for the World's Biggest IPO - Bloomberg
All About That Saudi Plan for the World's Biggest IPO - Bloomberg:
The world’s most valuable company may not be Apple Inc. That crown could instead belong to Aramco, as Saudi Arabian Oil Co. is better known. The sprawling state-owned producer, sitting atop one-fifth of the globe’s petroleum reserves, pumps more crude than the top four publicly traded oil companies combined. Crown Prince Mohammed bin Salman, the Saudi king’s influential son, says the company is worth in excess of $2 trillion, almost double the size of Apple. A much-vaunted plan to sell shares of Aramco in 2018 got postponed, raising speculation that it might be dropped altogether, but Prince Mohammed insists that the biggest initial public offering “in human history” will go ahead.
The Situation
The kingdom’s original plan, announced in 2016, was to sell up to 5 percent of Aramco, either on the Saudi bourse and one or two overseas exchanges, or solely on the domestic exchange. That’s been pushed back to late 2020 or early 2021 to allow Aramco time to fund and complete the purchase of a $69 billion stake in Saudi Arabia’s biggest petrochemical company. Aramco sold its first international dollar bond, raising $12 billion to help fund the purchase, which it aims to close in 2019. Global investors had also balked at the valuation, with some banks pricing a 5 percent stake at $50 billion to $75 billion — way short of the $100 billion-plus foreseen by the Crown Prince. Even so, the lowest valuation would still dwarf the world record for an IPO of $25 billion by Alibaba Group Holding Ltd. The aim of the share sale is to create a war chest and prepare the country for the post-hydrocarbon age. The brutal killing of Saudi columnist Jamal Khashoggi, which a UN report said warranted an investigation of the crown prince, threatened to derail a political agenda crowded with social and economic reforms at home and an assertive foreign policy. Still, investors have returned to the kingdom and Aramco has resumed discussions with lenders about the IPO.
The world’s most valuable company may not be Apple Inc. That crown could instead belong to Aramco, as Saudi Arabian Oil Co. is better known. The sprawling state-owned producer, sitting atop one-fifth of the globe’s petroleum reserves, pumps more crude than the top four publicly traded oil companies combined. Crown Prince Mohammed bin Salman, the Saudi king’s influential son, says the company is worth in excess of $2 trillion, almost double the size of Apple. A much-vaunted plan to sell shares of Aramco in 2018 got postponed, raising speculation that it might be dropped altogether, but Prince Mohammed insists that the biggest initial public offering “in human history” will go ahead.
The Situation
The kingdom’s original plan, announced in 2016, was to sell up to 5 percent of Aramco, either on the Saudi bourse and one or two overseas exchanges, or solely on the domestic exchange. That’s been pushed back to late 2020 or early 2021 to allow Aramco time to fund and complete the purchase of a $69 billion stake in Saudi Arabia’s biggest petrochemical company. Aramco sold its first international dollar bond, raising $12 billion to help fund the purchase, which it aims to close in 2019. Global investors had also balked at the valuation, with some banks pricing a 5 percent stake at $50 billion to $75 billion — way short of the $100 billion-plus foreseen by the Crown Prince. Even so, the lowest valuation would still dwarf the world record for an IPO of $25 billion by Alibaba Group Holding Ltd. The aim of the share sale is to create a war chest and prepare the country for the post-hydrocarbon age. The brutal killing of Saudi columnist Jamal Khashoggi, which a UN report said warranted an investigation of the crown prince, threatened to derail a political agenda crowded with social and economic reforms at home and an assertive foreign policy. Still, investors have returned to the kingdom and Aramco has resumed discussions with lenders about the IPO.
Germany working at top speed to get #Iran barter scheme running: spokesman - Reuters
Germany working at top speed to get Iran barter scheme running: spokesman - Reuters:
Germany is working hard to reach the point where the first transactions can be carried out under a special trade channel being set up to enable trade between Iran and European exporters, a German Foreign Ministry spokesman said on Friday.
Spokesman Rainer Breul said European industry had a great interest in the system being brought online, which will make it possible for trade between EU members and Iran to continue despite stiff U.S. sanctions in place since Washington quit a 2015 nuclear accord.
Set up by France, Britain and Germany, Instex is a barter trade mechanism that aims to avoid direct financial transfers by offsetting balances between importers and exporters on the European side.
Germany is working hard to reach the point where the first transactions can be carried out under a special trade channel being set up to enable trade between Iran and European exporters, a German Foreign Ministry spokesman said on Friday.
Spokesman Rainer Breul said European industry had a great interest in the system being brought online, which will make it possible for trade between EU members and Iran to continue despite stiff U.S. sanctions in place since Washington quit a 2015 nuclear accord.
Set up by France, Britain and Germany, Instex is a barter trade mechanism that aims to avoid direct financial transfers by offsetting balances between importers and exporters on the European side.
OPEC output hits new low on Trump's sanctions, supply pact: Reuters survey - Reuters
OPEC output hits new low on Trump's sanctions, supply pact: Reuters survey - Reuters:
OPEC oil output sank to a new five-year low in June as a rise in Saudi supply did not offset losses in Iran and Venezuela due to U.S. sanctions and other outages elsewhere in the group, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries pumped 29.60 million barrels per day (bpd) last month, the survey showed, down 170,000 bpd from May’s revised figure and the lowest OPEC total since 2014, the survey showed.
The Reuters survey suggests that even though Saudi Arabia is raising output following pressure from U.S. President Donald Trump to bring down prices, the kingdom is still voluntarily pumping less than an OPEC-led supply deal allows it to. OPEC renewed the supply pact at meetings this week.
OPEC oil output sank to a new five-year low in June as a rise in Saudi supply did not offset losses in Iran and Venezuela due to U.S. sanctions and other outages elsewhere in the group, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries pumped 29.60 million barrels per day (bpd) last month, the survey showed, down 170,000 bpd from May’s revised figure and the lowest OPEC total since 2014, the survey showed.
The Reuters survey suggests that even though Saudi Arabia is raising output following pressure from U.S. President Donald Trump to bring down prices, the kingdom is still voluntarily pumping less than an OPEC-led supply deal allows it to. OPEC renewed the supply pact at meetings this week.
#SaudiArabia keeps its oil output steady in June: OPEC source - Reuters
Saudi Arabia keeps its oil output steady in June: OPEC source - Reuters:
Saudi Arabia has pumped 9.782 million barrels of oil per day (bpd) in June, an OPEC source said on Friday, up from 9.67 million bpd in May.
The world’s top oil exporter kept its crude production below its output target of 10.3 million bpd under an OPEC-led global oil reduction pact, to reduce inventories and support prices.
OPEC and its allies led by Russia agreed on Tuesday to extend oil output cuts until March 2020, as the global economy weakened and U.S. production soared.
Saudi Arabia has pumped 9.782 million barrels of oil per day (bpd) in June, an OPEC source said on Friday, up from 9.67 million bpd in May.
The world’s top oil exporter kept its crude production below its output target of 10.3 million bpd under an OPEC-led global oil reduction pact, to reduce inventories and support prices.
OPEC and its allies led by Russia agreed on Tuesday to extend oil output cuts until March 2020, as the global economy weakened and U.S. production soared.
Frustration builds in Hassan Rouhani’s hometown | Financial Times
Frustration builds in Hassan Rouhani’s hometown | Financial Times:
In the desert town of Sorkheh, Hassan Rouhani’s hometown 200km east of Tehran, support for the Iranian president and his policies is waning as food prices have risen.
“We spend some evenings without even stale bread to eat,” said Kolsoum, 40, a widow and mother of two, as she stretched out dough in a bakery shop. She works from 4am to 2pm for a daily wage of 200,000 rials ($4.75). “I wrote a letter to Mr Rouhani when he was here some months ago but he has not replied.”
“Voting for Mr Rouhani has had no benefits for us,” said her colleague Mehri, 24, who has two children and whose husband cannot work because of a back injury. “It is seven or eight months since I have bought chicken. We eat eggs.”
In the desert town of Sorkheh, Hassan Rouhani’s hometown 200km east of Tehran, support for the Iranian president and his policies is waning as food prices have risen.
“We spend some evenings without even stale bread to eat,” said Kolsoum, 40, a widow and mother of two, as she stretched out dough in a bakery shop. She works from 4am to 2pm for a daily wage of 200,000 rials ($4.75). “I wrote a letter to Mr Rouhani when he was here some months ago but he has not replied.”
“Voting for Mr Rouhani has had no benefits for us,” said her colleague Mehri, 24, who has two children and whose husband cannot work because of a back injury. “It is seven or eight months since I have bought chicken. We eat eggs.”
Oil set for weekly loss on weak economic data - Reuters
Oil set for weekly loss on weak economic data - Reuters:
Crude oil prices fell on Friday on weak economic indicators from the United States and Germany, shrugging off tensions around Iran and this week’s decision by OPEC and its allies to extend a supply cut deal until next year.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $0.79 at $56.55 per barrel by 0754 GMT. There was no settlement price on Thursday because of the Independence Day holiday in the United States.
Front-month Brent crude futures LCOc1 were down $0.23 at $63.07 per barrel. Both benchmarks were set for their biggest weekly falls in five weeks.
Crude oil prices fell on Friday on weak economic indicators from the United States and Germany, shrugging off tensions around Iran and this week’s decision by OPEC and its allies to extend a supply cut deal until next year.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $0.79 at $56.55 per barrel by 0754 GMT. There was no settlement price on Thursday because of the Independence Day holiday in the United States.
Front-month Brent crude futures LCOc1 were down $0.23 at $63.07 per barrel. Both benchmarks were set for their biggest weekly falls in five weeks.
#Dubai Holding outlines six-month growth plan | ZAWYA MENA Edition
Dubai Holding outlines six-month growth plan | ZAWYA MENA Edition:
Dubai Holding said on Thursday that its focus for the rest of the year would continue to be on achieving strong financial success "underpinned by the performance of its recurring income business, delivery of existing pipeline projects and executing prudent operational efficiency."
"With Expo 2020 around the corner, we look forward to Dubai Holding playing an important role in this landmark event, and welcoming millions of visitors to the emirate," said the diversified company with a presence in over 10 countries.
Dubai Holding's companies include Jumeirah Group, Tecom Group, Dubai Properties, Dubai Asset Management, Arab Media Group, and Dubai Retail.
Dubai Holding said on Thursday that its focus for the rest of the year would continue to be on achieving strong financial success "underpinned by the performance of its recurring income business, delivery of existing pipeline projects and executing prudent operational efficiency."
"With Expo 2020 around the corner, we look forward to Dubai Holding playing an important role in this landmark event, and welcoming millions of visitors to the emirate," said the diversified company with a presence in over 10 countries.
Dubai Holding's companies include Jumeirah Group, Tecom Group, Dubai Properties, Dubai Asset Management, Arab Media Group, and Dubai Retail.
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