Oil climbs on Iran tensions, U.S. inventory decline - Reuters:
Oil prices edged higher on Thursday supported by rising tensions between the West and Iran and a big decline in U.S. crude stockpiles, but gains were capped due to lingering worries about slowing economic growth that could reduce fuel demand.
Brent crude futures LCOc1 settled 21 cents, or 0.33%, higher at $63.39 a barrel after hitting a session high of $64.23
U.S. West Texas Intermediate crude CLc1 ended the session up 14 cents, or 0.25%, at $56.02 a barrel, after hitting a session high of $56.99 earlier.
A week after Iran seized a British-flagged tanker in the Gulf, Britain has started sending a warship to accompany all British-flagged vessels through the Strait of Hormuz, a change in policy announced on Thursday after the government previously said it did not have resources to do so.
Thursday 25 July 2019
UPDATE 2- #Oman receives nearly $14 billion in demand for dollar bonds - Reuters
UPDATE 2-Oman receives nearly $14 billion in demand for dollar bonds - Reuters:
Oman received strong demand from global investors for U.S. dollar bonds it marketed on Thursday in its first foray in the international debt markets this year, according to a document issued by one of the banks leading the sale.
Investors made orders worth nearly $14 billion for papers offered at a final yield of around 4.95% for the long five-year bonds and 6% for the 10-year, according to the document.
That is below an initial price guidance of around 5.375% and 6.375% earlier on Thursday.
Oman received strong demand from global investors for U.S. dollar bonds it marketed on Thursday in its first foray in the international debt markets this year, according to a document issued by one of the banks leading the sale.
Investors made orders worth nearly $14 billion for papers offered at a final yield of around 4.95% for the long five-year bonds and 6% for the 10-year, according to the document.
That is below an initial price guidance of around 5.375% and 6.375% earlier on Thursday.
#Saudi's Falih says Reliance-Aramco talks on Indian refinery stake continue - Reuters
Saudi's Falih says Reliance-Aramco talks on Indian refinery stake continue - Reuters:
Saudi Arabia’s Energy Minister Khalid al-Falih said state-run Saudi Aramco’s talks with Reliance Industries to buy a minority stake in the Indian conglomerate’s refining assets have not stalled.
“The two companies, Reliance and Aramco, are talking with a lot of goodwill, with good intention,” al-Falih told Reuters in an interview on Thursday.
Reliance, controlled by Asia’s richest man Mukesh Ambani, operates the world’s biggest refining complex with capacity to process 1.4 million barrels per day (bpd) of oil at Jamnagar in western India.
Saudi Arabia’s Energy Minister Khalid al-Falih said state-run Saudi Aramco’s talks with Reliance Industries to buy a minority stake in the Indian conglomerate’s refining assets have not stalled.
“The two companies, Reliance and Aramco, are talking with a lot of goodwill, with good intention,” al-Falih told Reuters in an interview on Thursday.
Reliance, controlled by Asia’s richest man Mukesh Ambani, operates the world’s biggest refining complex with capacity to process 1.4 million barrels per day (bpd) of oil at Jamnagar in western India.
#Saudi sovereign fund to cut banks' returns with new $10 billion loan: sources - Reuters
Saudi sovereign fund to cut banks' returns with new $10 billion loan: sources - Reuters:
Saudi Arabia’s Public Investment Fund (PIF) is putting together a $10 billion loan and plans to more than halve the returns it gave banks last year in its first multibillion dollar facility, two banking sources familiar with the matter said.
PIF raised $11 billion through a five-year loan last year and is in advanced talks to borrow $10 billion more. It plans to offer lenders an initial interest rate of around 30 basis points over the London Interbank Offered Rate (Libor) for the one-year loan, said the sources about the private talks.
The fund had offered banks 75 basis points over Libor last year with its $11 billion facility, sources said at the time.
Saudi Arabia’s Public Investment Fund (PIF) is putting together a $10 billion loan and plans to more than halve the returns it gave banks last year in its first multibillion dollar facility, two banking sources familiar with the matter said.
PIF raised $11 billion through a five-year loan last year and is in advanced talks to borrow $10 billion more. It plans to offer lenders an initial interest rate of around 30 basis points over the London Interbank Offered Rate (Libor) for the one-year loan, said the sources about the private talks.
The fund had offered banks 75 basis points over Libor last year with its $11 billion facility, sources said at the time.
MIDEAST STOCKS-Positive earnings end #Saudi losing streak, COMI weighs on Egypt - Reuters
MIDEAST STOCKS-Positive earnings end Saudi losing streak, COMI weighs on Egypt - Reuters:
Strong corporate earnings helped Saudi
Arabia's stock market snap five days of losses, while top lender
Commercial International Bank weighed on the Egyptian bourse.
In Saudi Arabia, the index bounced back 0.4%, with
Saudi Arabian Mining Company jumping 6.5%, and Sahara
International Petrochemical (SIPCHEM) climbing 5.2%
after it reported flat quarterly profit of 210.9 million riyals
($56.2 million) beating EFG Hermes' forecast of 188 million.
Jabal Omar Development was up 2.7% after it swung
to second quarter profit, which it credited to higher revenue.
Strong corporate earnings helped Saudi
Arabia's stock market snap five days of losses, while top lender
Commercial International Bank weighed on the Egyptian bourse.
In Saudi Arabia, the index bounced back 0.4%, with
Saudi Arabian Mining Company jumping 6.5%, and Sahara
International Petrochemical (SIPCHEM) climbing 5.2%
after it reported flat quarterly profit of 210.9 million riyals
($56.2 million) beating EFG Hermes' forecast of 188 million.
Jabal Omar Development was up 2.7% after it swung
to second quarter profit, which it credited to higher revenue.
Oil Advances as Tighter Supply Jostles With Demand Concerns - Bloomberg
Oil Advances as Tighter Supply Jostles With Demand Concerns - Bloomberg:
Oil advanced in New York as declining U.S. crude stockpiles and fears over Middle East exports mingled with concerns that slower economic growth will stifle demand.
West Texas Intermediate futures added 1% on Thursday as the dollar weakened before a meeting of the European Central Bank, boosting the appeal of commodities priced in the U.S. currency. A sixth weekly-decline in U.S. crude stockpiles also supported prices, the longest run of draws since early 2018.
WTI for September delivery added 58 cents, or 1%, to $56.46 a barrel on the New York Mercantile Exchange as of 12:29 a.m. in London. The contract has fallen 3.6% in July, and is on track for only its second monthly loss this year.
Brent for September settlement rose 68 cents to $63.86 on the ICE Futures Europe Exchange after closing down 1% on Wednesday. The global crude benchmark is trading at a $7.42 premium to WTI.
Oil advanced in New York as declining U.S. crude stockpiles and fears over Middle East exports mingled with concerns that slower economic growth will stifle demand.
West Texas Intermediate futures added 1% on Thursday as the dollar weakened before a meeting of the European Central Bank, boosting the appeal of commodities priced in the U.S. currency. A sixth weekly-decline in U.S. crude stockpiles also supported prices, the longest run of draws since early 2018.
WTI for September delivery added 58 cents, or 1%, to $56.46 a barrel on the New York Mercantile Exchange as of 12:29 a.m. in London. The contract has fallen 3.6% in July, and is on track for only its second monthly loss this year.
Brent for September settlement rose 68 cents to $63.86 on the ICE Futures Europe Exchange after closing down 1% on Wednesday. The global crude benchmark is trading at a $7.42 premium to WTI.
Qatari Sheikh Explores Sale of $869 Million London, Paris Hotels - Bloomberg
Qatari Sheikh Explores Sale of $869 Million London, Paris Hotels - Bloomberg:
The family office of former Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani is considering the sale of luxury hotels in London and Paris valued at a total of about $869 million, according to people with knowledge of the matter.
Eastdil Secured LLC has been appointed to advise on the potential sale of the Hyatt Regency Paris Etoile hotel in Paris, which is owned by a company linked to the sheikh and valued at about 500 million euros ($557 million), said two of the people, who asked not to be identified because the plans are private.
Broker Jones Lang LaSalle has been hired to evaluate the potential sale of the Sanderson and St Martins Lane hotels in London, valued at a combined 250 million pounds ($312 million) and owned by another company under the sheikh’s control, two other people said. A handful of investors have been approached by JLL regarding the London hotels, but there’s no certainty that a deal will take place, the people said.
The family office of former Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani is considering the sale of luxury hotels in London and Paris valued at a total of about $869 million, according to people with knowledge of the matter.
Eastdil Secured LLC has been appointed to advise on the potential sale of the Hyatt Regency Paris Etoile hotel in Paris, which is owned by a company linked to the sheikh and valued at about 500 million euros ($557 million), said two of the people, who asked not to be identified because the plans are private.
Broker Jones Lang LaSalle has been hired to evaluate the potential sale of the Sanderson and St Martins Lane hotels in London, valued at a combined 250 million pounds ($312 million) and owned by another company under the sheikh’s control, two other people said. A handful of investors have been approached by JLL regarding the London hotels, but there’s no certainty that a deal will take place, the people said.
Shares in #Saudi's Sipchem surge despite slight drop in Q2 profit | ZAWYA MENA Edition
Shares in Saudi's Sipchem surge despite slight drop in Q2 profit | ZAWYA MENA Edition:
Shares in Saudi Arabia’s Sahara International Petrochemical Company (Sipchem) rallied on Thursday despite the company reporting a drop in Q2 2019 net profit.
The company’s Q2 2019 net profit after zakat and tax amounted to 210.9 million Saudi riyals ($56.23 million), compared to 211.4 million riyals in Q2 2018, a 0.24 percent drop.
“Good set of numbers by Sipchem,” Pritish Devassy, head of equity research at Al Rajhi Capital told Zawya in an email statement.
Shares in Saudi Arabia’s Sahara International Petrochemical Company (Sipchem) rallied on Thursday despite the company reporting a drop in Q2 2019 net profit.
The company’s Q2 2019 net profit after zakat and tax amounted to 210.9 million Saudi riyals ($56.23 million), compared to 211.4 million riyals in Q2 2018, a 0.24 percent drop.
“Good set of numbers by Sipchem,” Pritish Devassy, head of equity research at Al Rajhi Capital told Zawya in an email statement.
#AbuDhabi to raise $109 million a year from new road toll - Reuters
Abu Dhabi to raise $109 million a year from new road toll - Reuters:
Abu Dhabi, the oil rich capital of the United Arab Emirates (UAE), expects to collect 400 million dirhams ($109 million) a year from a road toll to be introduced on Oct. 15, an official said on Thursday.
Abu Dhabi said it was to start charging the toll after a prolonged period of lower oil prices during which a federal value added tax (VAT) of 5% has been introduced.
“We expect 400 million dirhams per annum of revenues from this and we expect to invest back,” Ibrahim Sarhan al-Hamoudi, acting executive director of surface transport at Abu Dhabi’s Department of Transport told reporters.
Abu Dhabi, the oil rich capital of the United Arab Emirates (UAE), expects to collect 400 million dirhams ($109 million) a year from a road toll to be introduced on Oct. 15, an official said on Thursday.
Abu Dhabi said it was to start charging the toll after a prolonged period of lower oil prices during which a federal value added tax (VAT) of 5% has been introduced.
“We expect 400 million dirhams per annum of revenues from this and we expect to invest back,” Ibrahim Sarhan al-Hamoudi, acting executive director of surface transport at Abu Dhabi’s Department of Transport told reporters.
MIDEAST STOCKS-Banks hurt #Saudi; #Dubai continues to gain on Emaar - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks hurt Saudi; Dubai continues to gain on Emaar - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market fell on Thursday, with Al Rajhi Bank, the country’s second largest lender by assets, weighing on the index, while Dubai extended its series of gains on the back of top developer Emaar Properties.
In Saudi Arabia, the index lost 0.4% with Al Rajhi Bank and National Commercial Bank falling 2.3% and 0.6% respectively.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, slid 0.2% after it halted negotiations with Clariant to form a new high performance materials company from the combined assets of the two companies.
Saudi Arabia’s stock market fell on Thursday, with Al Rajhi Bank, the country’s second largest lender by assets, weighing on the index, while Dubai extended its series of gains on the back of top developer Emaar Properties.
In Saudi Arabia, the index lost 0.4% with Al Rajhi Bank and National Commercial Bank falling 2.3% and 0.6% respectively.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, slid 0.2% after it halted negotiations with Clariant to form a new high performance materials company from the combined assets of the two companies.
'Very Bullish' on #UAE Banks, Shuaa Asset Says – Bloomberg
'Very Bullish' on UAE Banks, Shuaa Asset Says – Bloomberg:
Aarthi Chandrasekaran, portfolio manager at Shuaa Asset Management, talks about oil, Kuwait and U.A.E. banks. She speaks on "Bloomberg Daybreak: Middle East" with Yousef Gamal El-Din and Tracy Alloway. (Source: Bloomberg)
Aarthi Chandrasekaran, portfolio manager at Shuaa Asset Management, talks about oil, Kuwait and U.A.E. banks. She speaks on "Bloomberg Daybreak: Middle East" with Yousef Gamal El-Din and Tracy Alloway. (Source: Bloomberg)
Doha Bank in 'Transformation Mode,' CEO Says – Bloomberg
Doha Bank in 'Transformation Mode,' CEO Says – Bloomberg:
Doha Bank OSC Chief Executive Officer Raghavan Seetharaman discusses the lender's financial results, business outlook, and Qatar's economy. Doha Bank said net profit rose 10 percent to 519 million riyals. Seetharaman speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Doha Bank OSC Chief Executive Officer Raghavan Seetharaman discusses the lender's financial results, business outlook, and Qatar's economy. Doha Bank said net profit rose 10 percent to 519 million riyals. Seetharaman speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Clariant's Planned Sabic Tie Up Falls Victim to Chemicals Slump - Bloomberg
Clariant's Planned Sabic Tie Up Falls Victim to Chemicals Slump - Bloomberg:
Clariant AG and anchor investor Saudi Basic Industries Corp. suspended talks on their planned $3.1 billion specialty plastics venture as a sharp downturn in the global chemicals market renders deal-making more difficult.
The two companies struggled to agree on how much their respective businesses were worth, Clariant Chairman Hariolf Kottmann said in a telephone interview on Thursday. The Swiss manufacturer and its Riyadh-based shareholder said discussions could resume when markets improve. Clariant shares fell as much as 8.7% in early trading.
“You need to find a compromise, if you don’t it’s better to take a bit of time,” Clariant Chief Financial Officer Patrick Jany said on the same call. “We’ve been looking at it in detail and just came to this point given the current market and business development.”
Clariant AG and anchor investor Saudi Basic Industries Corp. suspended talks on their planned $3.1 billion specialty plastics venture as a sharp downturn in the global chemicals market renders deal-making more difficult.
The two companies struggled to agree on how much their respective businesses were worth, Clariant Chairman Hariolf Kottmann said in a telephone interview on Thursday. The Swiss manufacturer and its Riyadh-based shareholder said discussions could resume when markets improve. Clariant shares fell as much as 8.7% in early trading.
“You need to find a compromise, if you don’t it’s better to take a bit of time,” Clariant Chief Financial Officer Patrick Jany said on the same call. “We’ve been looking at it in detail and just came to this point given the current market and business development.”
#Saudi Prince’s Megacity Shows Signs of Life - Bloomberg
Saudi Prince’s Megacity Shows Signs of Life - Bloomberg:
The walls are covered with graffiti in the sleepy fishing village of Khurayba. There are supplications to God, advertisements for vacation rentals and house painters. Near the local school, there’s a scribbled plea: “Open the windows of hope and drive out the despair.”
It’s here in northwest Saudi Arabia that Crown Prince Mohammed bin Salman wants investors to put their money to realize his $500 billion vision for the region. Called “Neom,” it promises to be the most freewheeling part of the kingdom, with state-of-the-art resorts and smart technologies run by robots.
Mountains and desert sit alongside the Red Sea in part of the area that planners say will become Neom.
But it’s also here where the risks to the 33-year-old prince’s grand plan for his country are writ large. Neom is the boldest pillar of a social and economic transformation that so far has seen at least as many delays as successes. Indeed, the question since the prince announced the vast development at an extravaganza in 2017 has been whether it can become a reality.
The walls are covered with graffiti in the sleepy fishing village of Khurayba. There are supplications to God, advertisements for vacation rentals and house painters. Near the local school, there’s a scribbled plea: “Open the windows of hope and drive out the despair.”
It’s here in northwest Saudi Arabia that Crown Prince Mohammed bin Salman wants investors to put their money to realize his $500 billion vision for the region. Called “Neom,” it promises to be the most freewheeling part of the kingdom, with state-of-the-art resorts and smart technologies run by robots.
Mountains and desert sit alongside the Red Sea in part of the area that planners say will become Neom.
But it’s also here where the risks to the 33-year-old prince’s grand plan for his country are writ large. Neom is the boldest pillar of a social and economic transformation that so far has seen at least as many delays as successes. Indeed, the question since the prince announced the vast development at an extravaganza in 2017 has been whether it can become a reality.
Mega investment projects could trigger #Saudi's real estate growth | ZAWYA MENA Edition
Mega investment projects could trigger Saudi's real estate growth | ZAWYA MENA Edition:
The real estate market in Saudi Arabia softened during the second quarter of 2019, but the sector can expect a major reprieve from the continued government spending on giga-projects, as the kingdom is actively pursuing investments beyond the oil and gas sector.
With conditions remaining soft across most sectors of the real estate market in the first half of 2019, the hospitality and entertainment industries witnessed a number of major development announcements.
These included the unveiling of Al Qiddiya’s master plan in Riyadh, aiming to cement the city’s position as the ‘Capital of Entertainment, Sports, and the Arts’, as well as the launch of the Kingdom’s first arthouse ‘Cinema El Housh’ in Jeddah, apart from religious tourism, according to real estate and investment management firm JLL’s 2019 mid-year review report.
The real estate market in Saudi Arabia softened during the second quarter of 2019, but the sector can expect a major reprieve from the continued government spending on giga-projects, as the kingdom is actively pursuing investments beyond the oil and gas sector.
With conditions remaining soft across most sectors of the real estate market in the first half of 2019, the hospitality and entertainment industries witnessed a number of major development announcements.
These included the unveiling of Al Qiddiya’s master plan in Riyadh, aiming to cement the city’s position as the ‘Capital of Entertainment, Sports, and the Arts’, as well as the launch of the Kingdom’s first arthouse ‘Cinema El Housh’ in Jeddah, apart from religious tourism, according to real estate and investment management firm JLL’s 2019 mid-year review report.
Oil advances on Gulf tensions but demand concerns cap gains - Reuters
Oil advances on Gulf tensions but demand concerns cap gains - Reuters:
Oil prices edged higher on Thursday amid Middle East tensions and a big fall in weekly U.S. crude stocks, but gains were stemmed by a frail demand outlook amid increasing signs of slowing global economic growth.
Brent crude LCOc1 futures rose 28 cents, or 0.4%, to $63.46 a barrel by 0650 GMT, after dropping 1% overnight - the first fall in four sessions.
U.S. West Texas Intermediate crude CLc1 was up 27 cents, or 0.5%, at $56.15 a barrel, having dropped 1.6% in the previous session.
“We see it as a current tug of war between the bull case of OPEC production cuts, political risk in the Gulf and the recent reduction in crude inventories, versus the bear case of slowing global growth and a ramp-up in U.S. production,” said Hue Frame, managing director at Frame Funds in Sydney.
Oil prices edged higher on Thursday amid Middle East tensions and a big fall in weekly U.S. crude stocks, but gains were stemmed by a frail demand outlook amid increasing signs of slowing global economic growth.
Brent crude LCOc1 futures rose 28 cents, or 0.4%, to $63.46 a barrel by 0650 GMT, after dropping 1% overnight - the first fall in four sessions.
U.S. West Texas Intermediate crude CLc1 was up 27 cents, or 0.5%, at $56.15 a barrel, having dropped 1.6% in the previous session.
“We see it as a current tug of war between the bull case of OPEC production cuts, political risk in the Gulf and the recent reduction in crude inventories, versus the bear case of slowing global growth and a ramp-up in U.S. production,” said Hue Frame, managing director at Frame Funds in Sydney.
Old habits die hard: #SaudiArabia struggles to end oil addiction - Reuters
Old habits die hard: Saudi Arabia struggles to end oil addiction - Reuters:
When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi.
Chief executive Amin Nasser arrived unannounced early on April 11, 2018, finalised the agreement and signed it later that day. Negotiators had just finished hammering out the details.
His last-minute flight, after a business trip to France with Crown Prince Mohammed bin Salman, underlined the importance of the deal both to Saudi Arabia and its huge state oil firm.
When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi.
Chief executive Amin Nasser arrived unannounced early on April 11, 2018, finalised the agreement and signed it later that day. Negotiators had just finished hammering out the details.
His last-minute flight, after a business trip to France with Crown Prince Mohammed bin Salman, underlined the importance of the deal both to Saudi Arabia and its huge state oil firm.
Total to sell $5bn of assets to protect against low oil prices | Financial Times
Total to sell $5bn of assets to protect against low oil prices | Financial Times:
French energy major Total will sell $5bn of assets by the end of 2020 as it looks to concentrate on businesses that can better withstand the low energy prices which hit its second-quarter results.
The planned sales — mostly in exploration and production — were announced as the company said its second-quarter adjusted net income had fallen by 19 per cent over the previous year to $2.9bn, hit by falling energy prices and refining margins. The figure was slightly below the $2.98 billion expected by analysts polled by Bloomberg.
“Markets remained volatile with Brent averaging $69 per barrel in the second quarter, an increase of 9 per cent compared to the previous quarter, but natural gas prices were down 36 per cent in Europe and 26 per cent in Asia,” said chief executive Patrick Pouyanné in a statement.
French energy major Total will sell $5bn of assets by the end of 2020 as it looks to concentrate on businesses that can better withstand the low energy prices which hit its second-quarter results.
The planned sales — mostly in exploration and production — were announced as the company said its second-quarter adjusted net income had fallen by 19 per cent over the previous year to $2.9bn, hit by falling energy prices and refining margins. The figure was slightly below the $2.98 billion expected by analysts polled by Bloomberg.
“Markets remained volatile with Brent averaging $69 per barrel in the second quarter, an increase of 9 per cent compared to the previous quarter, but natural gas prices were down 36 per cent in Europe and 26 per cent in Asia,” said chief executive Patrick Pouyanné in a statement.
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