Oil falls 1% despite large U.S. stockpile decline - Reuters:
Oil prices fell 1% on Wednesday, failing to draw lasting support from a large decrease in U.S. crude stockpiles as investors worried about global oil demand.
Brent crude LCOc1 futures dropped 65 cents, or 1%, to settle at $63.18 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 89 cents, or 1.6%, to settle at $55.88 a barrel.
Earlier in the session, the front-month Brent contract LCOc1 flipped to trade at a discount to the second-month contract LCOc2, a market structure known as contango, for the first time since March. Sentiment in the oil market has darkened as investors worry that slowing global economic growth will weaken demand for oil.
Wednesday, 24 July 2019
Aramco to Finish Pipeline Expansion, Reducing Reliance on Hormuz - Bloomberg
Aramco to Finish Pipeline Expansion, Reducing Reliance on Hormuz - Bloomberg:
Saudi Aramco expects to complete the expansion of an oil pipeline that runs east-west across the country by September, according to a person familiar with the matter, increasing the amount the kingdom can ship from the Red Sea and avoiding the increasingly tense Strait of Hormuz.
The link currently operates well below capacity, but the long-planned expansion will give Saudi Arabia the option to ship more oil from the Red Sea rather than the Persian Gulf, bypassing Hormuz. About a fifth or the world’s oil production passes through the narrow seaway, but its vulnerability has been brought into focus in recent months as tensions between and the U.S. and Iran escalated.
The state oil company will finish the project by September, increasing the line’s capacity to carry crude oil from 5 million to 7 million barrels a day, according to person familiar with the situation, who asked not to be identified because the plan isn’t public yet. Aramco officials didn’t immediately comment. Aramco exported 6.84 million barrels a day in June, the vast bulk of it via Hormuz, according to Bloom
Saudi Aramco expects to complete the expansion of an oil pipeline that runs east-west across the country by September, according to a person familiar with the matter, increasing the amount the kingdom can ship from the Red Sea and avoiding the increasingly tense Strait of Hormuz.
The link currently operates well below capacity, but the long-planned expansion will give Saudi Arabia the option to ship more oil from the Red Sea rather than the Persian Gulf, bypassing Hormuz. About a fifth or the world’s oil production passes through the narrow seaway, but its vulnerability has been brought into focus in recent months as tensions between and the U.S. and Iran escalated.
The state oil company will finish the project by September, increasing the line’s capacity to carry crude oil from 5 million to 7 million barrels a day, according to person familiar with the situation, who asked not to be identified because the plan isn’t public yet. Aramco officials didn’t immediately comment. Aramco exported 6.84 million barrels a day in June, the vast bulk of it via Hormuz, according to Bloom
Kuwaiti, #Saudi officials discuss resuming Neutral Zone oil production: KUNA - Reuters
Kuwaiti, Saudi officials discuss resuming Neutral Zone oil production: KUNA - Reuters:
OPEC members Saudi Arabia and Kuwait have discussed resuming oil production in jointly operated fields in the Saudi–Kuwaiti Neutral Zone, Kuwaiti state news agency KUNA said on Wednesday.
Saudi Arabia’s minister of state for energy affairs visited Kuwait to “continue to discuss and cooperate on the resumption of oil production in the southern [Neutral Zone] after settling all required technical issues from both sides,” KUNA said, quoting a Kuwaiti government spokesman.
The Saudi–Kuwaiti Neutral Zone, or Divided Zone, is an area of 5,770 square km between the two countries’ borders that was left undefined when the border was established in 1922.
OPEC members Saudi Arabia and Kuwait have discussed resuming oil production in jointly operated fields in the Saudi–Kuwaiti Neutral Zone, Kuwaiti state news agency KUNA said on Wednesday.
Saudi Arabia’s minister of state for energy affairs visited Kuwait to “continue to discuss and cooperate on the resumption of oil production in the southern [Neutral Zone] after settling all required technical issues from both sides,” KUNA said, quoting a Kuwaiti government spokesman.
The Saudi–Kuwaiti Neutral Zone, or Divided Zone, is an area of 5,770 square km between the two countries’ borders that was left undefined when the border was established in 1922.
Oil Advances as Hefty Drop in U.S. Stockpiles Signals Tightness - Bloomberg
Oil Advances as Hefty Drop in U.S. Stockpiles Signals Tightness - Bloomberg:
Oil rose for a fourth straight session amid a hefty drop in U.S. crude inventories and new glimmers of hope for a trade truce between the world’s two largest economies.
Futures climbed as much as 0.9% on Wednesday in New York after rallying 2.7% over the previous three sessions. The American Petroleum Institute reported a 10.96 million-barrel decline in oil stockpiles last week, more than twice the estimate in a Bloomberg survey of analysts. Meanwhile, U.S. Trade Representative Robert Lighthizer will travel to China next week for the first high-level, face-to-face talks since May.
West Texas Intermediate for September delivery rose 33 cents to $57.10 a barrel at 9:43 a.m. on the New York Mercantile Exchange.
Oil rose for a fourth straight session amid a hefty drop in U.S. crude inventories and new glimmers of hope for a trade truce between the world’s two largest economies.
Futures climbed as much as 0.9% on Wednesday in New York after rallying 2.7% over the previous three sessions. The American Petroleum Institute reported a 10.96 million-barrel decline in oil stockpiles last week, more than twice the estimate in a Bloomberg survey of analysts. Meanwhile, U.S. Trade Representative Robert Lighthizer will travel to China next week for the first high-level, face-to-face talks since May.
West Texas Intermediate for September delivery rose 33 cents to $57.10 a barrel at 9:43 a.m. on the New York Mercantile Exchange.
Brent for September settlement advanced 22 cents to $64.05 on the ICE Futures Europe Exchange. The global benchmark crude traded at a $6.95 a barrel premium to WTI.
#Kuwait sovereign fund sells 16.1% stake in Gulf Bank - Reuters
Kuwait sovereign fund sells 16.1% stake in Gulf Bank - Reuters:
Kuwait Investment Authority (KIA) has sold a 16.1% stake in Gulf Bank to Alghanim Trading Co for 152.93 million dinars ($503 million), making the business conglomerate the biggest shareholder of the country’s fourth-biggest bank, according to a bourse filing.
The purchase will almost double the Kuwaiti group’s stake to about 33% from a previous level of 16.67%.
Alghanim, which has interests in manufacturing, automotive and food businesses, is controlled by Omar Kutayba Ahmad Alghanim, the chairman of Gulf Bank.
Kuwait Investment Authority (KIA) has sold a 16.1% stake in Gulf Bank to Alghanim Trading Co for 152.93 million dinars ($503 million), making the business conglomerate the biggest shareholder of the country’s fourth-biggest bank, according to a bourse filing.
The purchase will almost double the Kuwaiti group’s stake to about 33% from a previous level of 16.67%.
Alghanim, which has interests in manufacturing, automotive and food businesses, is controlled by Omar Kutayba Ahmad Alghanim, the chairman of Gulf Bank.
MIDEAST STOCKS- #Dubai extends gains on Emaar, other Gulf markets mixed - Reuters
MIDEAST STOCKS-Dubai extends gains on Emaar, other Gulf markets mixed - Reuters:
Dubai's stock market rose on Wednesday
as Emaar Properties continued to surge following news of a large
project in China, while other Middle Eastern shares were mixed.
The Dubai index added a further 0.8% after hitting
an eight-month high in the last session, with property stocks
leading the gains.
The country's largest listed developer Emaar Properties
advanced 1.2%, extending gains for the third straight
session. On Monday, the developer signed an agreement to help
deliver an $11 billion project at the site of Beijing's new mega
airport.
Dubai's stock market rose on Wednesday
as Emaar Properties continued to surge following news of a large
project in China, while other Middle Eastern shares were mixed.
The Dubai index added a further 0.8% after hitting
an eight-month high in the last session, with property stocks
leading the gains.
The country's largest listed developer Emaar Properties
advanced 1.2%, extending gains for the third straight
session. On Monday, the developer signed an agreement to help
deliver an $11 billion project at the site of Beijing's new mega
airport.
#SaudiArabia in Talks With Investors on Mega Entertainment City - Bloomberg
Saudi Arabia in Talks With Investors on Mega Entertainment City - Bloomberg:
Saudi Arabia is in talks with regional and global investors for its first mega entertainment and sports city that’s being developed as part of the kingdom’s plans for life after oil.
“The project will be built on a combination of our capital that is deployed alongside investment capital from many other sources,” Michael Reininger, chief executive officer of Qiddiya Investment Co., told reporters in Riyadh on Wednesday. “We’re now engaging in these discussions with people who are coming to us and saying this seems interesting.”
The company is looking at options such as joint ventures, land leasing and privatization to fund the project, Reininger said. Funds from investors “will be put alongside our money and we’ll be able to leverage that both on the debt and equity side in order to finance the project.”
Saudi Arabia is in talks with regional and global investors for its first mega entertainment and sports city that’s being developed as part of the kingdom’s plans for life after oil.
“The project will be built on a combination of our capital that is deployed alongside investment capital from many other sources,” Michael Reininger, chief executive officer of Qiddiya Investment Co., told reporters in Riyadh on Wednesday. “We’re now engaging in these discussions with people who are coming to us and saying this seems interesting.”
The company is looking at options such as joint ventures, land leasing and privatization to fund the project, Reininger said. Funds from investors “will be put alongside our money and we’ll be able to leverage that both on the debt and equity side in order to finance the project.”
National Bank of #Oman hires banks for $300 mln loan facility - Reuters
National Bank of Oman hires banks for $300 mln loan facility - Reuters:
National Bank of Oman has appointed Bank ABC and Emirates NBD to arrange a $300 million syndicated term loan facility, it said on Wednesday.
The facility has a tenor of three years, and the proceeds of will be utilized for NBO’s general corporate purposes, the statement said.
General syndication was launched on Tuesday with regional and international lenders invited to participate, the bank said.
National Bank of Oman has appointed Bank ABC and Emirates NBD to arrange a $300 million syndicated term loan facility, it said on Wednesday.
The facility has a tenor of three years, and the proceeds of will be utilized for NBO’s general corporate purposes, the statement said.
General syndication was launched on Tuesday with regional and international lenders invited to participate, the bank said.
Global oil market in glut, but not a big enough one for OPEC - Reuters
Global oil market in glut, but not a big enough one for OPEC - Reuters:
OPEC has shifted the goalposts for assessing an overhang in oil inventories, giving the group more room to prolong production cuts, while analysts warn the move will offer a distorted view of market conditions.
Ever since the Organization of the Petroleum Exporting Countries and allies led by Russia - a grouping known as OPEC+ - started curbing oil output two and a half years ago, they have targeted bringing oil in storage in the industrialized world in line with the five-year average.
In OPEC’s view, eliminating the glut in inventories would achieve a balanced oil market.
OPEC has shifted the goalposts for assessing an overhang in oil inventories, giving the group more room to prolong production cuts, while analysts warn the move will offer a distorted view of market conditions.
Ever since the Organization of the Petroleum Exporting Countries and allies led by Russia - a grouping known as OPEC+ - started curbing oil output two and a half years ago, they have targeted bringing oil in storage in the industrialized world in line with the five-year average.
In OPEC’s view, eliminating the glut in inventories would achieve a balanced oil market.
#Dubai's Du reports higher Q2 net profit, drop in revenue | ZAWYA MENA Edition
Dubai's Du reports higher Q2 net profit, drop in revenue | ZAWYA MENA Edition:
Dubai-based telecoms operator Emirates Integrated Telecommunications Company (Du) reported a 2.43 percent rise in net profit for Q2 2019 at 464 million dirhams ($126.33 million) after royalty payments.
The company’s revenues dropped 4.78 percent to 3.19 billion dirhams in Q2 2019, from 3.35 billion dirhams in Q2 2018, missing EFG Hermes' estimate.
Omar Maher, vice president of equity research at EFG Hermes told Zawya that despite a “slight miss” in revenues, Du’s net profit came right in line with EFG Hermes’ estimate, as the top-line miss “was offset by stronger-than-expected margin performance.”
Dubai-based telecoms operator Emirates Integrated Telecommunications Company (Du) reported a 2.43 percent rise in net profit for Q2 2019 at 464 million dirhams ($126.33 million) after royalty payments.
The company’s revenues dropped 4.78 percent to 3.19 billion dirhams in Q2 2019, from 3.35 billion dirhams in Q2 2018, missing EFG Hermes' estimate.
Omar Maher, vice president of equity research at EFG Hermes told Zawya that despite a “slight miss” in revenues, Du’s net profit came right in line with EFG Hermes’ estimate, as the top-line miss “was offset by stronger-than-expected margin performance.”
#Kuwait Stocks Favored, Rasmala Investment's Swats Says – Bloomberg
Kuwait Stocks Favored, Rasmala Investment's Swats Says – Bloomberg:
Eric Swats, senior executive officer at Rasmala Investment Bank, talks about Middle East stocks, fixed income, and oil. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Eric Swats, senior executive officer at Rasmala Investment Bank, talks about Middle East stocks, fixed income, and oil. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Drewry Sees DP World's Traffic Jarred by Politics, Rival Port - Bloomberg
Drewry Sees DP World's Traffic Jarred by Politics, Rival Port - Bloomberg:
U.S. sanctions against Iran and competition from Abu Dhabi are reducing traffic at DP World Plc’s home ports in Dubai, according to industry consultant Drewry.
Restrictions on cargo shipments to Qatar due to an embargo by the United Arab Emirates and some other Arab nations have also hurt container traffic in Dubai. However, the recent surge in tensions over shipping incidents in the Persian Gulf region have had little if any impact on DP World’s second-quarter throughput, said Neil Davidson, senior analyst for ports and terminals at London-based Drewry.
DP World, which operates ports from Vancouver to Hong Kong, released data on Tuesday showing that it handled smaller cargo volumes in Dubai for the fifth consecutive quarter. The company runs cargo terminals at Jebel Ali and Port Rashid in Dubai in the U.A.E.
U.S. sanctions against Iran and competition from Abu Dhabi are reducing traffic at DP World Plc’s home ports in Dubai, according to industry consultant Drewry.
Restrictions on cargo shipments to Qatar due to an embargo by the United Arab Emirates and some other Arab nations have also hurt container traffic in Dubai. However, the recent surge in tensions over shipping incidents in the Persian Gulf region have had little if any impact on DP World’s second-quarter throughput, said Neil Davidson, senior analyst for ports and terminals at London-based Drewry.
DP World, which operates ports from Vancouver to Hong Kong, released data on Tuesday showing that it handled smaller cargo volumes in Dubai for the fifth consecutive quarter. The company runs cargo terminals at Jebel Ali and Port Rashid in Dubai in the U.A.E.
Strange Economics of Mideast Oil Shield Trump From #Iran’s Bite - Bloomberg
Strange Economics of Mideast Oil Shield Trump From Iran’s Bite - Bloomberg:
A third of the world’s seaborne crude and fuels pass through the Strait of Hormuz at the mouth of the Persian Gulf. So it’s no surprise that as skirmishing in the Gulf between the U.S. and Iran has intensified this year, the price of oil has … wait … fallen?
Anyone betting that troubles in the area would push up the price of oil has lost a barrel of money. The prices of Brent crude and the U.S. benchmark, West Texas Intermediate (WTI), are each down about 26% from their highs of last October, which was before hostilities ratcheted up.
The stability of oil prices is fortunate for President Trump, who’s been able to tighten the screws on Iran without provoking an increase in gasoline costs that would be unpopular with voters. It’s also a plus for the global economy, which benefits from a reliable supply of affordable crude. Shocks to the supply of oil have been causes of global economic downturns in the past. Not so happy are the leaders of Iran, who are (still) hoping to get relief from Trump’s sanctions by making the U.S. and its allies feel some pain.
A third of the world’s seaborne crude and fuels pass through the Strait of Hormuz at the mouth of the Persian Gulf. So it’s no surprise that as skirmishing in the Gulf between the U.S. and Iran has intensified this year, the price of oil has … wait … fallen?
Anyone betting that troubles in the area would push up the price of oil has lost a barrel of money. The prices of Brent crude and the U.S. benchmark, West Texas Intermediate (WTI), are each down about 26% from their highs of last October, which was before hostilities ratcheted up.
The stability of oil prices is fortunate for President Trump, who’s been able to tighten the screws on Iran without provoking an increase in gasoline costs that would be unpopular with voters. It’s also a plus for the global economy, which benefits from a reliable supply of affordable crude. Shocks to the supply of oil have been causes of global economic downturns in the past. Not so happy are the leaders of Iran, who are (still) hoping to get relief from Trump’s sanctions by making the U.S. and its allies feel some pain.
Fitch affirms #Oman's rating at "BB+" with a stable outlook | ZAWYA MENA Edition
Fitch affirms Oman's rating at "BB+" with a stable outlook | ZAWYA MENA Edition:
Fitch Ratings has affirmed Oman’s long-term foreign-currency issuer default rating (IDR) at 'BB+' with a stable outlook.
The rating took into consideration the country’s “undiversified economy, high fiscal and external deficits and debt ratios against relatively high GDP-per-capita and other strong structural features relative to 'BB' category peers,” Fitch said in a statement.
“Oman's sovereign external asset position remains for now stronger than other 'BB' category sovereigns, supporting the government's financing flexibility,” it stated.
Fitch Ratings has affirmed Oman’s long-term foreign-currency issuer default rating (IDR) at 'BB+' with a stable outlook.
The rating took into consideration the country’s “undiversified economy, high fiscal and external deficits and debt ratios against relatively high GDP-per-capita and other strong structural features relative to 'BB' category peers,” Fitch said in a statement.
“Oman's sovereign external asset position remains for now stronger than other 'BB' category sovereigns, supporting the government's financing flexibility,” it stated.
Oil edges up on U.S. stocks fall, Mideast tensions, trade talk signs - Reuters
Oil edges up on U.S. stocks fall, Mideast tensions, trade talk signs - Reuters:
Oil prices nudged higher on Wednesday on rising tensions over Iran, a sharp fall in U.S. crude stocks and positive signs on Sino-U.S. talks, although worries about weak demand kept a cap on gains.
Brent crude futures LCOc1 were up 21 cents, or 0.3%, at $64.04 a barrel by 0719 GMT, after rising nearly 1% on Tuesday.
U.S. West Texas Intermediate crude CLc1 was up 28 cents, or 0.5%, at $57.05 a barrel, having risen about 1% in the previous session.
U.S. crude stocks fell more than expected in the week to July 19, declining by 11 million barrels to 449 million, the trade group American Petroleum Institute said on Tuesday.
Oil prices nudged higher on Wednesday on rising tensions over Iran, a sharp fall in U.S. crude stocks and positive signs on Sino-U.S. talks, although worries about weak demand kept a cap on gains.
Brent crude futures LCOc1 were up 21 cents, or 0.3%, at $64.04 a barrel by 0719 GMT, after rising nearly 1% on Tuesday.
U.S. West Texas Intermediate crude CLc1 was up 28 cents, or 0.5%, at $57.05 a barrel, having risen about 1% in the previous session.
U.S. crude stocks fell more than expected in the week to July 19, declining by 11 million barrels to 449 million, the trade group American Petroleum Institute said on Tuesday.
ADNOC and Pertamina sign oil and gas development agreement - Reuters
ADNOC and Pertamina sign oil and gas development agreement - Reuters:
The Abu Dhabi National Oil Company (ADNOC) signed a an agreement with state-owned Indonesian energy company PT Pertamina (Persero) on Wednesday for oil and gas collaboration in both countries and globally, ADNOC said in a statement.
The comprehensive strategic framework (CSF) agreement was signed on the sidelines of an official visit to Indonesia by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.
The scope of projects under consideration includes participation in the United Arab Emirates’ upstream oil and gas sector as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Indonesia.
The Abu Dhabi National Oil Company (ADNOC) signed a an agreement with state-owned Indonesian energy company PT Pertamina (Persero) on Wednesday for oil and gas collaboration in both countries and globally, ADNOC said in a statement.
The comprehensive strategic framework (CSF) agreement was signed on the sidelines of an official visit to Indonesia by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.
The scope of projects under consideration includes participation in the United Arab Emirates’ upstream oil and gas sector as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Indonesia.
#UAE telecoms company du warns of second-half revenue decline - Reuters
UAE telecoms company du warns of second-half revenue decline - Reuters:
United Arab Emirates telecoms company du expects its revenue to continue to decline in the second half of 2019, CEO Osman Sultan told reporters on a conference call Wednesday.
The company on Tuesday posted second-quarter net profit of 464 million UAE dirhams ($126.3 million), up 2.4 percent from the same period last year, on revenue down 4.8 percent.
He declined to provide a profit forecast for the second half.
United Arab Emirates telecoms company du expects its revenue to continue to decline in the second half of 2019, CEO Osman Sultan told reporters on a conference call Wednesday.
The company on Tuesday posted second-quarter net profit of 464 million UAE dirhams ($126.3 million), up 2.4 percent from the same period last year, on revenue down 4.8 percent.
He declined to provide a profit forecast for the second half.
MIDEAST STOCKS-Real estate shares boost #Dubai, banks aid #Saudi - Reuters
MIDEAST STOCKS-Real estate shares boost Dubai, banks aid Saudis - Reuters:
Dubai stocks rose on Wednesday, led by property shares, for a third consecutive day of gains. Financial stocks helped Saudi shares.
The Dubai index was up 0.2%. The country’s largest listed developer, Emaar Properties, rose for a third day, gaining 0.8%, after securing a deal in China for an $11 billion project. Emaar Mall was up 2%.
Dubai Financial Market also rose for a third day, by 4.4%, after reporting higher second-quarter profit.
Dubai stocks rose on Wednesday, led by property shares, for a third consecutive day of gains. Financial stocks helped Saudi shares.
The Dubai index was up 0.2%. The country’s largest listed developer, Emaar Properties, rose for a third day, gaining 0.8%, after securing a deal in China for an $11 billion project. Emaar Mall was up 2%.
Dubai Financial Market also rose for a third day, by 4.4%, after reporting higher second-quarter profit.
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