Brent oil in bear market as China-U.S. trade tensions mount - Reuters:
Oil prices fell more than 1% on Tuesday, with Brent crude settling near seven-month lows below $60 a barrel as trade tensions between the U.S. and China intensified worries about weakening global demand.
During the session, Brent traded at a low of $58.81 a barrel, down more than 22% from its peak in April. That decline puts the global benchmark in “bear market” territory.
Brent prices have lost more than 9% in the past week, with U.S. President Donald Trump vowing to impose new tariffs on Chinese imports and Beijing making further moves against U.S. agricultural cargoes.
The United States also responded to a decline in China’s yuan on Monday by branding China a currency manipulator. Trump on Tuesday dismissed concerns over a protracted trade war with China, as Beijing warned that Washington’s decision the day before would lead to chaos in financial markets.
International benchmark Brent futures LCOc1 fell 87 cents, or 1.45%, to settle at $58.94 a barrel.
West Texas Intermediate crude CLc1 futures were down $1.06, or 1.94%, at $53.63 a barrel.
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Tuesday 6 August 2019
Oil Heads Toward Bear Market as Trade Tensions Feed Demand Fears - Bloomberg
Oil Heads Toward Bear Market as Trade Tensions Feed Demand Fears - Bloomberg:
Brent oil slid below $60 a barrel for a second day as investors weighed the prospects of a prolonged standoff between the U.S. and China, following the Trump administration’s labeling of the Asian nation as a currency manipulator.
London-traded futures erased an earlier rally to fall about 0.5% on Tuesday. A move by the People’s Bank of China earlier in the day to strengthen the yuan wasn’t enough to stave off worries about the escalating dispute between the world’s largest oil consumers. A close below $59.65 a barrel would put the global benchmark price in a bear market, down 20% from its late-April peak.
“We shouldn’t underestimate the potential impact of a full-blown trade war between the world’s two biggest economies,” said Bart Melek, head of global commodity strategy at TD Securities. “This could very well mean we as a market significantly overestimated demand growth for oil and we could easily be in a surplus situation in 2020.”
Brent oil slid below $60 a barrel for a second day as investors weighed the prospects of a prolonged standoff between the U.S. and China, following the Trump administration’s labeling of the Asian nation as a currency manipulator.
London-traded futures erased an earlier rally to fall about 0.5% on Tuesday. A move by the People’s Bank of China earlier in the day to strengthen the yuan wasn’t enough to stave off worries about the escalating dispute between the world’s largest oil consumers. A close below $59.65 a barrel would put the global benchmark price in a bear market, down 20% from its late-April peak.
“We shouldn’t underestimate the potential impact of a full-blown trade war between the world’s two biggest economies,” said Bart Melek, head of global commodity strategy at TD Securities. “This could very well mean we as a market significantly overestimated demand growth for oil and we could easily be in a surplus situation in 2020.”
BP forms Indian fuels partnership with Reliance Industries | Financial Times
BP forms Indian fuels partnership with Reliance Industries | Financial Times:
BP and Mukesh Ambani’s Reliance Industries have agreed to form a fuels joint venture in India as the UK oil and gas major seeks expansion in the fastest-growing energy consumer.
Building on an offshore gas exploration and production partnership which began in 2011, BP and Reliance will jointly form a petrol station network and aviation fuels business.
Foreign companies, from BP to Saudi Aramco, are trying to secure a foothold the Indian market as they bank on the country’s rising oil demand in the years to come.
BP and Mukesh Ambani’s Reliance Industries have agreed to form a fuels joint venture in India as the UK oil and gas major seeks expansion in the fastest-growing energy consumer.
Building on an offshore gas exploration and production partnership which began in 2011, BP and Reliance will jointly form a petrol station network and aviation fuels business.
Foreign companies, from BP to Saudi Aramco, are trying to secure a foothold the Indian market as they bank on the country’s rising oil demand in the years to come.
Oil Steadies as China’s Yuan Fix Alleviates Trade War Tensions - Bloomberg
Oil Steadies as China’s Yuan Fix Alleviates Trade War Tensions - Bloomberg:
Oil steadied as China moved to stabilize the yuan, cooling some concerns about an escalation in the standoff with the U.S., which labeled the Asian nation a currency manipulator.
Futures were 1% higher in New York as the People’s Bank of China on Tuesday set the daily currency fixing stronger than analysts expected. Crude had slumped as much as 1.8% earlier after comments by the U.S. Treasury Department sowed fears that the clash between the two biggest economies was about to inflict an even deeper toll on economic growth and oil demand.
West Texas Intermediate oil for September delivery rose 55 cents to $55.24 a barrel on the New York Mercantile Exchange as of 8:19 a.m. local time. The contract fell 1.7% on Monday.
Brent for October settlement added 42 cents, or 0.7%, to $60.23 a barrel on the London-based ICE Futures Europe Exchange. It slumped 3.4% on Monday to the lowest level since mid-January. The contract traded at a premium of $5.07 to WTI for the same month.
Oil steadied as China moved to stabilize the yuan, cooling some concerns about an escalation in the standoff with the U.S., which labeled the Asian nation a currency manipulator.
Futures were 1% higher in New York as the People’s Bank of China on Tuesday set the daily currency fixing stronger than analysts expected. Crude had slumped as much as 1.8% earlier after comments by the U.S. Treasury Department sowed fears that the clash between the two biggest economies was about to inflict an even deeper toll on economic growth and oil demand.
West Texas Intermediate oil for September delivery rose 55 cents to $55.24 a barrel on the New York Mercantile Exchange as of 8:19 a.m. local time. The contract fell 1.7% on Monday.
Brent for October settlement added 42 cents, or 0.7%, to $60.23 a barrel on the London-based ICE Futures Europe Exchange. It slumped 3.4% on Monday to the lowest level since mid-January. The contract traded at a premium of $5.07 to WTI for the same month.
MIDEAST STOCKS-Major Gulf markets sag on escalating U.S.-China trade war - Reuters
MIDEAST STOCKS-Major Gulf markets sag on escalating U.S.-China trade war - Reuters:
Major Middle Eastern stock markets fell on
Tuesday, led lower by financial stocks and mirroring losses in
global markets triggered by the U.S. calling China a currency
manipulator in a rapid escalation of the trade war between the
two countries.
China's central bank said on Tuesday that Washington's
decision to label Beijing as a currency manipulator would
"severely damage international financial order and cause chaos
in financial markets".
Qatar’s index, which posted its biggest fall in two
years on Monday when it plunged 4.2% and wiped out all this
year's gains, slid a further 1.5% to hit a six-session losing
streak as 16 of its 20 companies traded lower.
Major Middle Eastern stock markets fell on
Tuesday, led lower by financial stocks and mirroring losses in
global markets triggered by the U.S. calling China a currency
manipulator in a rapid escalation of the trade war between the
two countries.
China's central bank said on Tuesday that Washington's
decision to label Beijing as a currency manipulator would
"severely damage international financial order and cause chaos
in financial markets".
Qatar’s index, which posted its biggest fall in two
years on Monday when it plunged 4.2% and wiped out all this
year's gains, slid a further 1.5% to hit a six-session losing
streak as 16 of its 20 companies traded lower.
#Saudi tops IPO activity; 6 MENA deals raise $2,822mln in Q2 2019 | ZAWYA MENA Edition
Saudi tops IPO activity; 6 MENA deals raise $2,822mln in Q2 2019 | ZAWYA MENA Edition:
The second quarter of the year witnessed an improvement in Initial Public Offer (IPO) activity in the MENA region despite a dip in volume.
IPO deal value increased by 222.6 percent to $2,822.5 million in Q2 2019, up from $874.9 million during the same time last year, professional services firm EY said in its latest report MENA IPO Eye.
In terms of volume, only six deals were recorded in Q2 2019, including one REIT listing, a decrease of 33.3 percent from the nine deals listed in Q2 2018.
The second quarter of the year witnessed an improvement in Initial Public Offer (IPO) activity in the MENA region despite a dip in volume.
IPO deal value increased by 222.6 percent to $2,822.5 million in Q2 2019, up from $874.9 million during the same time last year, professional services firm EY said in its latest report MENA IPO Eye.
In terms of volume, only six deals were recorded in Q2 2019, including one REIT listing, a decrease of 33.3 percent from the nine deals listed in Q2 2018.
#Dubai’s DIFC-based InsurTech firm secures new blockchain deal | ZAWYA MENA Edition
Dubai’s DIFC-based InsurTech firm secures new blockchain deal | ZAWYA MENA Edition:
Addenda, a DIFC-based InsurTech firm has made an important headway by signing with five regional insurance players to its new blockchain platform.
Aman Insurance, Al Wathba Insurance, National Takaful Company (Watania), Noor Takaful and Oriental Insurance are the first companies to adopt Addenda’s technology, demonstrating the first use-case for a blockchain transaction in the regional insurance industry, a statement from DIFC said.
As the InsurTech market revenue grows at a rate of 16 per cent globally, enterprises in DIFC are upping their game by disrupting the way regional insurance sector operates as well as transforming the sector.
Addenda, a DIFC-based InsurTech firm has made an important headway by signing with five regional insurance players to its new blockchain platform.
Aman Insurance, Al Wathba Insurance, National Takaful Company (Watania), Noor Takaful and Oriental Insurance are the first companies to adopt Addenda’s technology, demonstrating the first use-case for a blockchain transaction in the regional insurance industry, a statement from DIFC said.
As the InsurTech market revenue grows at a rate of 16 per cent globally, enterprises in DIFC are upping their game by disrupting the way regional insurance sector operates as well as transforming the sector.
Two-Track Recovery Makes #Egypt an Investor Hit as Poverty Climbs - Bloomberg
Two-Track Recovery Makes Egypt an Investor Hit as Poverty Climbs - Bloomberg:
It’s the fastest-growing economy in the Middle East and a darling among emerging-market investors, yet poverty has climbed and companies are struggling.
As Egypt concludes a three-year International Monetary Fund program designed to help pull the Arab world’s most populous nation out of economic turmoil, the indicators shown in the following charts are a vivid snapshot of the disparities.
Inflation is finally slowing, the budget deficit is being whittled down and its bonds are among the world’s best performers. At the same time, businesses are cautious and there’s little fresh foreign investment beyond oil and gas. Most Egyptians have been hit hard by a devaluation that saw the pound lose more than half its value and subsidy cuts that sent prices soaring, adding to President Abdel-Fattah El-Sisi’s challenge of containing social unrest.
It’s the fastest-growing economy in the Middle East and a darling among emerging-market investors, yet poverty has climbed and companies are struggling.
As Egypt concludes a three-year International Monetary Fund program designed to help pull the Arab world’s most populous nation out of economic turmoil, the indicators shown in the following charts are a vivid snapshot of the disparities.
Inflation is finally slowing, the budget deficit is being whittled down and its bonds are among the world’s best performers. At the same time, businesses are cautious and there’s little fresh foreign investment beyond oil and gas. Most Egyptians have been hit hard by a devaluation that saw the pound lose more than half its value and subsidy cuts that sent prices soaring, adding to President Abdel-Fattah El-Sisi’s challenge of containing social unrest.
Exclusive: India raises cost of refinery project with Aramco by 36% - sources - Reuters
Exclusive: India raises cost of refinery project with Aramco by 36% - sources - Reuters:
India has increased the cost estimate of a giant refinery and petrochemical project to be jointly built with Saudi Aramco and Abu Dhabi National Oil Co by more than 36%, after protests by farmers forced the relocation of the plant, four sources said.
The 1.2 million barrels-per-day (bpd) coastal refinery in the western state of Maharashtra is now expected to be built at Roha in the Raigad district, about 100 km (62 miles) south of Mumbai.
The new cost estimate of $60 billion for the refinery was given to Saudi Arabia’s energy minister Khalid al-Falih at a meeting with Indian Oil Minister Dharmendra Pradhan last month in New Delhi, said the four sources familiar with the talks between the two ministers.
India has increased the cost estimate of a giant refinery and petrochemical project to be jointly built with Saudi Aramco and Abu Dhabi National Oil Co by more than 36%, after protests by farmers forced the relocation of the plant, four sources said.
The 1.2 million barrels-per-day (bpd) coastal refinery in the western state of Maharashtra is now expected to be built at Roha in the Raigad district, about 100 km (62 miles) south of Mumbai.
The new cost estimate of $60 billion for the refinery was given to Saudi Arabia’s energy minister Khalid al-Falih at a meeting with Indian Oil Minister Dharmendra Pradhan last month in New Delhi, said the four sources familiar with the talks between the two ministers.
MIDEAST STOCKS-Banks weigh on #Saudi, Other Gulf markets mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks weigh on Saudi, Other Gulf markets mixed - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market fell sharply on Tuesday amid escalating trade tensions between China and the United States, while Qatar and Abu Dhabi opened higher on back of their financials.
A year-long U.S.-China trade war boiled over on Monday as Washington accused Beijing of manipulating its currency after China let the yuan drop to its lowest point in more than a decade.
The Saudi Arabian index was down 1.3%, continuing its losing streak for the fifth straight session as all its banking shares declined.
Saudi Arabia’s stock market fell sharply on Tuesday amid escalating trade tensions between China and the United States, while Qatar and Abu Dhabi opened higher on back of their financials.
A year-long U.S.-China trade war boiled over on Monday as Washington accused Beijing of manipulating its currency after China let the yuan drop to its lowest point in more than a decade.
The Saudi Arabian index was down 1.3%, continuing its losing streak for the fifth straight session as all its banking shares declined.
Amwal's Talal Samhouri on #Qatar, GCC Markets, Valuations – Bloomberg
Amwal's Talal Samhouri on Qatar, GCC Markets, Valuations – Bloomberg:
Talal Samhouri, head of asset management at Amwal, discusses the decline in the Qatar market and his outlook for the GCC markets. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Talal Samhouri, head of asset management at Amwal, discusses the decline in the Qatar market and his outlook for the GCC markets. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Oil climbs on short-covering, U.S.-China trade war caps gains - Reuters
Oil climbs on short-covering, U.S.-China trade war caps gains - Reuters:
International benchmark Brent crude futures LCOc1 climbed 61 cents, or 1%, to $60.42 a barrel by 0544 GMT on Tuesday after earlier dipping to $59.07, the lowest since Jan. 14.
West Texas Intermediate (WTI) crude CLc1 futures rose 56 cents, or 1%, to $55.25 per barrel.
International benchmark Brent crude futures LCOc1 climbed 61 cents, or 1%, to $60.42 a barrel by 0544 GMT on Tuesday after earlier dipping to $59.07, the lowest since Jan. 14.
West Texas Intermediate (WTI) crude CLc1 futures rose 56 cents, or 1%, to $55.25 per barrel.
Brent on cusp of bear market after sinking below $60 | Financial Times
Brent on cusp of bear market after sinking below $60 | Financial Times:
The oil market became the latest to be swept up in Monday’s global market rout, with prices falling to their lowest levels in a month and a half amid growing worries that US-China tensions will weaken demand for crude.
The sell-off pulled Brent below the $60-a-barrel threshold on Monday for the first time since June. It sank 3.4 per cent to $59.81 a barrel. West Texas Intermediate, the US oil marker, settled 1.7 per cent lower at $54.69.
Brent ended the day on the cusp of a bear market, which is defined as a fall of at least 20 per cent from its recent high. The international benchmark is now down 19.8 per cent from its April peak of $74.57.
The oil market became the latest to be swept up in Monday’s global market rout, with prices falling to their lowest levels in a month and a half amid growing worries that US-China tensions will weaken demand for crude.
The sell-off pulled Brent below the $60-a-barrel threshold on Monday for the first time since June. It sank 3.4 per cent to $59.81 a barrel. West Texas Intermediate, the US oil marker, settled 1.7 per cent lower at $54.69.
Brent ended the day on the cusp of a bear market, which is defined as a fall of at least 20 per cent from its recent high. The international benchmark is now down 19.8 per cent from its April peak of $74.57.