Oil dives nearly 5% to seven-month low on surprise U.S. stock build, trade war - Reuters:
Oil prices tumbled more than 4.5% on Wednesday to a seven-month low, extending recent heavy losses following a surprise build in U.S. crude stockpiles and fears that demand will shrink due to Washington’s escalating trade war with Beijing.
Brent crude futures LCOc1 settled down $2.71, or 4.6%, at $56.23 a barrel, the lowest close since early January. Prices have lost 24.5% since their 2019 peak in April.
U.S. West Texas Intermediate (WTI) crude futures CLc1 finished $2.54, or 4.7%, lower at $51.09.
Oil prices fell early in the session on worries about the trade war, then extended losses after government data showed a build of 2.4 million barrels in U.S. crude stockpiles last week, instead of the 2.8 million-barrel draw analysts had expected.
Wednesday 7 August 2019
Oil Slump Deepens on Unexpected Jump in U.S. Fuel Stockpiles - Bloomberg
Oil Slump Deepens on Unexpected Jump in U.S. Fuel Stockpiles - Bloomberg:
Oil plunged, re-entering bear-market territory, as a surprise increase in American fuel stockpiles fueled worries about a growing glut, feeding into an increasingly dismal economic view.
Futures in New York fell as much as 4.7% on Wednesday to the lowest in almost two months after a surprise increase in U.S. inventories. Crude was also swept up in a global meltdown of stock and commodity markets after rate cuts in New Zealand, India and Thailand escalated recessions fears and spurred a flight to U.S. Treasuries and other safe havens.
West Texas Intermediate oil for September delivery declined $2.23 to $51.40 a barrel at 11:03 a.m. on the New York Mercantile Exchange after earlier reaching $51.10.
Brent for October settlement fell $2.12 to $56.82 on the London-based ICE Futures Europe Exchange. The contract sold for a premium of $5.43 to WTI for the same month.
Oil plunged, re-entering bear-market territory, as a surprise increase in American fuel stockpiles fueled worries about a growing glut, feeding into an increasingly dismal economic view.
Futures in New York fell as much as 4.7% on Wednesday to the lowest in almost two months after a surprise increase in U.S. inventories. Crude was also swept up in a global meltdown of stock and commodity markets after rate cuts in New Zealand, India and Thailand escalated recessions fears and spurred a flight to U.S. Treasuries and other safe havens.
West Texas Intermediate oil for September delivery declined $2.23 to $51.40 a barrel at 11:03 a.m. on the New York Mercantile Exchange after earlier reaching $51.10.
Brent for October settlement fell $2.12 to $56.82 on the London-based ICE Futures Europe Exchange. The contract sold for a premium of $5.43 to WTI for the same month.
Exclusive: #Saudi Aramco valuation gap persists as IPO talks resume - sources - Reuters
Exclusive: Saudi Aramco valuation gap persists as IPO talks resume - sources - Reuters:
Saudi Crown Prince Mohammed Bin Salman is insisting on a $2 trillion valuation of oil firm Aramco, even though some bankers and company insiders say the kingdom should trim its target to around $1.5 trillion, industry and banking sources said.
With Aramco talking again to banks about an initial public offering (IPO), its board is meeting later this week and will probably hold a discussion about the company’s value, a source close to the company said.
Saudi Aramco declined to comment. CIC, the Saudi government media office, did not respond to a Reuters request for comment.
Saudi Crown Prince Mohammed Bin Salman is insisting on a $2 trillion valuation of oil firm Aramco, even though some bankers and company insiders say the kingdom should trim its target to around $1.5 trillion, industry and banking sources said.
With Aramco talking again to banks about an initial public offering (IPO), its board is meeting later this week and will probably hold a discussion about the company’s value, a source close to the company said.
Saudi Aramco declined to comment. CIC, the Saudi government media office, did not respond to a Reuters request for comment.
Mozambique peace pact boosts chance of unlocking gas riches | Financial Times
Mozambique peace pact boosts chance of unlocking gas riches | Financial Times:
Mozambique’s main opposition and government have signed a peace agreement to end years of war, removing one obstacle to the development of offshore natural gas riches that could transform the impoverished southern African nation.
The deal between President Filipe Nyusi’s ruling Frelimo movement and the Renamo opposition will officially end a conflict that raged from 2013 to 2016 following failure to uphold an earlier peace pact.
Mr Nyusi and Ossufo Momade, Renamo’s leader, agreed to cease hostilities last week, ahead of national and provincial elections scheduled for October. They signed a formal deal on Tuesday in a ceremony attended by regional leaders and diplomats.
Mozambique’s main opposition and government have signed a peace agreement to end years of war, removing one obstacle to the development of offshore natural gas riches that could transform the impoverished southern African nation.
The deal between President Filipe Nyusi’s ruling Frelimo movement and the Renamo opposition will officially end a conflict that raged from 2013 to 2016 following failure to uphold an earlier peace pact.
Mr Nyusi and Ossufo Momade, Renamo’s leader, agreed to cease hostilities last week, ahead of national and provincial elections scheduled for October. They signed a formal deal on Tuesday in a ceremony attended by regional leaders and diplomats.
Crude prices sink to 7-month low as outlook for demand darkens | Financial Times
Crude prices sink to 7-month low as outlook for demand darkens | Financial Times:
Crude prices plummeted to a seven-month low, dropping below $57 a barrel, as the escalating trade war tensions between the US and China hit the outlook for oil demand.
Brent crude, the international oil benchmark, slid as much as 3.9 per cent to $56.67 a barrel, the lowest level since January and down over 25 per cent from the highest peak of the year reached in April. Western Texas Intermediate, the US marker, dropped almost 4 per cent to $52.04 a barrel.
The drop in crude prices has taken down the stocks of oil companies with it, with the share price of ExxonMobil, BP and Royal Dutch Shell all declining by more than 7 per cent in the past week.
Crude prices plummeted to a seven-month low, dropping below $57 a barrel, as the escalating trade war tensions between the US and China hit the outlook for oil demand.
Brent crude, the international oil benchmark, slid as much as 3.9 per cent to $56.67 a barrel, the lowest level since January and down over 25 per cent from the highest peak of the year reached in April. Western Texas Intermediate, the US marker, dropped almost 4 per cent to $52.04 a barrel.
The drop in crude prices has taken down the stocks of oil companies with it, with the share price of ExxonMobil, BP and Royal Dutch Shell all declining by more than 7 per cent in the past week.
Oil slumps to new seven-month low on trade tensions - Reuters
Oil slumps to new seven-month low on trade tensions - Reuters:
Oil prices fell further on Wednesday, extending recent heavy losses as deepening U.S.-China trade tensions weighed on the outlook for the global economy and energy demand.
Brent crude futures LCOc1 were down $1.04, or 1.75%, at $57.90 a barrel by 1251 GMT, setting a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $1.17, or 2.18%, at $52.46.
Brent has plunged more than 10% over the past week after U.S. President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports from Sept. 1, sending global equity markets into a tailspin.
Oil prices fell further on Wednesday, extending recent heavy losses as deepening U.S.-China trade tensions weighed on the outlook for the global economy and energy demand.
Brent crude futures LCOc1 were down $1.04, or 1.75%, at $57.90 a barrel by 1251 GMT, setting a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $1.17, or 2.18%, at $52.46.
Brent has plunged more than 10% over the past week after U.S. President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports from Sept. 1, sending global equity markets into a tailspin.
MIDEAST STOCKS-Gulf markets bounce back as trade war simmers down - Reuters
MIDEAST STOCKS-Gulf markets bounce back as trade war simmers down - Reuters:
Gulf stocks rebounded from their recent
losses on Tuesday as markets' renewed fears about an escalating
global trade war eased, with Beijing stepping in to stabilise
the yuan and Washington dismissing fears of a lengthy trade war
with China.
The recovery was led by financial shares. Abu Dhabi and
Qatar's share indexes had suffered six days of straight losses
each, while Saudi Arabia and Dubai's bourses retreated in the
previous five and four consecutive sessions, respectively, on
fears over the trade dispute between the world's two biggest
economies.
Saudi's index rose 1.1% with Riyad Bank
increasing 4.4% and Al Rajhi Bank gaining 1.1%.
Gulf stocks rebounded from their recent
losses on Tuesday as markets' renewed fears about an escalating
global trade war eased, with Beijing stepping in to stabilise
the yuan and Washington dismissing fears of a lengthy trade war
with China.
The recovery was led by financial shares. Abu Dhabi and
Qatar's share indexes had suffered six days of straight losses
each, while Saudi Arabia and Dubai's bourses retreated in the
previous five and four consecutive sessions, respectively, on
fears over the trade dispute between the world's two biggest
economies.
Saudi's index rose 1.1% with Riyad Bank
increasing 4.4% and Al Rajhi Bank gaining 1.1%.
Top Oil Trader Sees Demand Growth Slowing Amid U.S.-China Fracas - Bloomberg
Top Oil Trader Sees Demand Growth Slowing Amid U.S.-China Fracas - Bloomberg:
Growth in global oil demand is slowing and won’t exceed 650,000 barrels a day this year before picking up pace up in 2020, according to Vitol Group’s chief executive officer.
Oil markets are focused on the U.S.-China trade war while “slightly under-pricing” the risk of possible supply disruptions arising from geopolitical tensions in the Persian Gulf, Vitol CEO Russell Hardy said in a Bloomberg TV interview in Abu Dhabi. Weak demand in established markets is spurring Vitol to focus on emerging economies, he said.
“We’ve been continuously revising our expectations for growth down,” Hardy said Wednesday. The world’s biggest independent oil trader expects demand to increase by 600,000 to 650,000 barrels a day in 2019, “and we’re expecting about 800,000-barrels-a-day growth for next year. Those numbers are a little bit down from when we first set them out. They don’t include NGLs,” or natural gas liquids, he said.
Growth in global oil demand is slowing and won’t exceed 650,000 barrels a day this year before picking up pace up in 2020, according to Vitol Group’s chief executive officer.
Oil markets are focused on the U.S.-China trade war while “slightly under-pricing” the risk of possible supply disruptions arising from geopolitical tensions in the Persian Gulf, Vitol CEO Russell Hardy said in a Bloomberg TV interview in Abu Dhabi. Weak demand in established markets is spurring Vitol to focus on emerging economies, he said.
“We’ve been continuously revising our expectations for growth down,” Hardy said Wednesday. The world’s biggest independent oil trader expects demand to increase by 600,000 to 650,000 barrels a day in 2019, “and we’re expecting about 800,000-barrels-a-day growth for next year. Those numbers are a little bit down from when we first set them out. They don’t include NGLs,” or natural gas liquids, he said.
#Bahrain's Investcorp posts 4.8% rise in annual profit, growth in AuM | ZAWYA MENA Edition
Bahrain's Investcorp posts 4.8% rise in annual profit, growth in AuM | ZAWYA MENA Edition:
Bahrain-based private equity firm Investcorp reported a rise in profit for its fiscal year (FY) ending June 2019.Net profit attributable to shareholders for FY 2019 amounted to $131 million, compared to $125 million for FY 2018, a 4.8 percent increase.
The Manama-based company saw an increase in Gross Operating Income and Fee Income at $465 million and $376 million respectively.
Mohammed Alardhi, Investcorp’s executive chairman, said: “Our strong full-year results and ability to deliver on several strategic initiatives demonstrate Investcorp’s resilience and focus on strategic growth and profitability goals, despite various economic and geopolitical challenges.”
Bahrain-based private equity firm Investcorp reported a rise in profit for its fiscal year (FY) ending June 2019.Net profit attributable to shareholders for FY 2019 amounted to $131 million, compared to $125 million for FY 2018, a 4.8 percent increase.
The Manama-based company saw an increase in Gross Operating Income and Fee Income at $465 million and $376 million respectively.
Mohammed Alardhi, Investcorp’s executive chairman, said: “Our strong full-year results and ability to deliver on several strategic initiatives demonstrate Investcorp’s resilience and focus on strategic growth and profitability goals, despite various economic and geopolitical challenges.”
#Saudi, #AbuDhabi showing 'high interest' in investing in VF2: SoftBank's Son - Reuters
Saudi, Abu Dhabi showing 'high interest' in investing in VF2: SoftBank's Son - Reuters:
SoftBank Group Corp (9984.T) founder and CEO Masayoshi Son said on Wednesday Saudi Arabia and Abu Dhabi are showing “high interest” in investing in the second Vision Fund.
Discussions are still continuing so Saudi Arabia and Abu Dhabi were not included in the list of participants pledging $108 billion to the fund announced last week, Son said at a news conference in Tokyo.
SoftBank Group Corp (9984.T) founder and CEO Masayoshi Son said on Wednesday Saudi Arabia and Abu Dhabi are showing “high interest” in investing in the second Vision Fund.
Discussions are still continuing so Saudi Arabia and Abu Dhabi were not included in the list of participants pledging $108 billion to the fund announced last week, Son said at a news conference in Tokyo.
Play It Safe and Sell on Any Rally in Emerging Asia Markets - Bloomberg
Play It Safe and Sell on Any Rally in Emerging Asia Markets - Bloomberg:
China may have handed traders a reprieve by disavowing the use of the yuan as a trade war tool, but a widening rift with the U.S. means investors may be better off selling into any relief rally in emerging Asian markets.
The trade war took a turn for the worse after Washington labeled Beijing a currency manipulator, days after vowing to slap more tariffs on Chinese goods. Even though the People’s Bank of China has said it won’t competitively devalue the yuan, its daily fixing has come under intense scrutiny for any signs of further weakening.
“We continue to be negative on the Asia complex, particularly those that are very export oriented,” Erin Browne, a portfolio manager at Pacific Investment Management Co., said in an interview with Bloomberg Television. “So think about Singapore, Taiwan, Korea, which we think are going to continue to come under pressure with the trade tensions and potential weakening further of the yuan.”
China may have handed traders a reprieve by disavowing the use of the yuan as a trade war tool, but a widening rift with the U.S. means investors may be better off selling into any relief rally in emerging Asian markets.
The trade war took a turn for the worse after Washington labeled Beijing a currency manipulator, days after vowing to slap more tariffs on Chinese goods. Even though the People’s Bank of China has said it won’t competitively devalue the yuan, its daily fixing has come under intense scrutiny for any signs of further weakening.
“We continue to be negative on the Asia complex, particularly those that are very export oriented,” Erin Browne, a portfolio manager at Pacific Investment Management Co., said in an interview with Bloomberg Television. “So think about Singapore, Taiwan, Korea, which we think are going to continue to come under pressure with the trade tensions and potential weakening further of the yuan.”
#UAE's ADNOC acquires stake in VTTI oil storage business - Reuters
UAE's ADNOC acquires stake in VTTI oil storage business - Reuters:
Abu Dhabi National Oil Company (ADNOC) said on Wednesday it will acquire a stake in VTTI, a Vitol-backed global energy storage company, as part of changes including expanding its oil trading operations.
ADNOC will acquire a 10% stake in VTTI, it said in a statement, allowing it to secure storage in global export markets as well as at the port of Fujairah, a regional bunkering and storage hub in the United Arab Emirates.
After the transaction is finalised, both Vitol and IFM Global Infrastructure Fund, an investment vehicle managed by IFM Investors, will each own a 45% stake in VTTI.
Abu Dhabi National Oil Company (ADNOC) said on Wednesday it will acquire a stake in VTTI, a Vitol-backed global energy storage company, as part of changes including expanding its oil trading operations.
ADNOC will acquire a 10% stake in VTTI, it said in a statement, allowing it to secure storage in global export markets as well as at the port of Fujairah, a regional bunkering and storage hub in the United Arab Emirates.
After the transaction is finalised, both Vitol and IFM Global Infrastructure Fund, an investment vehicle managed by IFM Investors, will each own a 45% stake in VTTI.
MIDEAST STOCKS-Major Gulf markets rebound as U.S.-China trade war simmers - Reuters
MIDEAST STOCKS-Major Gulf markets rebound as U.S.-China trade war simmers - Reuters:
Major Gulf markets rebounded on Wednesday, mostly on back of their financial shares, after U.S. President Donald Trump dismissed fears of a prolonged trade dispute with Beijing and China’s central bank stepped in to stabilise the yuan.
The offshore yuan pulled back from an all-time low on Tuesday after Beijing appeared to take steps to prevent the currency from weakening further, following a sharp drop that prompted the U.S. government to declare China was manipulating its currency.
Dubai’s index traded 1.3% higher in a boost from real estate stocks which all rose. Emaar Properties increased 1.7% and its unit Emaar Malls gained 3.1%.
Major Gulf markets rebounded on Wednesday, mostly on back of their financial shares, after U.S. President Donald Trump dismissed fears of a prolonged trade dispute with Beijing and China’s central bank stepped in to stabilise the yuan.
The offshore yuan pulled back from an all-time low on Tuesday after Beijing appeared to take steps to prevent the currency from weakening further, following a sharp drop that prompted the U.S. government to declare China was manipulating its currency.
Dubai’s index traded 1.3% higher in a boost from real estate stocks which all rose. Emaar Properties increased 1.7% and its unit Emaar Malls gained 3.1%.
Anita Yadav of Emirates NBD on Fed, Middle East Markets – Bloomberg
Anita Yadav of Emirates NBD on Fed, Middle East Markets – Bloomberg:
Anita Yadav, head of fixed-income research at Emirates NBD, Dubai’s biggest bank, talks about global central banks' policies and the implications for the Middle East bond markets. The Reserve Bank of New Zealand shocked markets with a half-percentage point interest-rate cut. Yadav speaks with Manus Cranny and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Anita Yadav, head of fixed-income research at Emirates NBD, Dubai’s biggest bank, talks about global central banks' policies and the implications for the Middle East bond markets. The Reserve Bank of New Zealand shocked markets with a half-percentage point interest-rate cut. Yadav speaks with Manus Cranny and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
INTERVIEW: #AbuDhabi's NMC Health expects close to $1bln revenue from Saudi Arabia by 2023 - CEO | ZAWYA MENA Edition
INTERVIEW: Abu Dhabi's NMC Health expects close to $1bln revenue from Saudi Arabia by 2023 - CEO | ZAWYA MENA Edition:
The CEO of Gulf healthcare operator NMC Health now has a new milestone in sight. Prasanth Manghat, who masterminded the group’s listing on London Stock Exchange in 2012, is determined to replicate in Saudi Arabia the growth that the company has built in the UAE over the last three decades.
This time, though, he’s aiming for a much shorter timeframe.
Speaking to Zawya at the NMC Health headquarters in Abu Dhabi, Manghat sounded a bullish note as he spoke of the company’s expansion into the Arab world’s largest economy. He sees market fundamentals strongly supporting the kingdom’s healthcare system, and ‘great value of return for NMC shareholders hidden in Saudi’.
The CEO of Gulf healthcare operator NMC Health now has a new milestone in sight. Prasanth Manghat, who masterminded the group’s listing on London Stock Exchange in 2012, is determined to replicate in Saudi Arabia the growth that the company has built in the UAE over the last three decades.
This time, though, he’s aiming for a much shorter timeframe.
Speaking to Zawya at the NMC Health headquarters in Abu Dhabi, Manghat sounded a bullish note as he spoke of the company’s expansion into the Arab world’s largest economy. He sees market fundamentals strongly supporting the kingdom’s healthcare system, and ‘great value of return for NMC shareholders hidden in Saudi’.
#AbuDhabi's Mubadala may invest up to $25b in SoftBank Vision Fund 2: Report
Abu Dhabi's Mubadala may invest up to $25b in SoftBank Vision Fund 2: Report:
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company may invest as much as $25 billion in SoftBank Group Corp.’s second Vision Fund, according to a report by Wall Street Journal.
The $227-billion Mubadala is an existing investor in the Vision Fund, having committed $15 billion to the first fund.
Two weeks ago, SoftBank announced it has gathered some $108 billion for Vision Fund 2. It had signed memoranda of understanding with 12 investors including the sovereign wealth fund of Kazakhstan, Microsoft Corp and Japan’s three mega banks, as well as existing Vision Fund backers Apple Inc and Foxconn.
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company may invest as much as $25 billion in SoftBank Group Corp.’s second Vision Fund, according to a report by Wall Street Journal.
The $227-billion Mubadala is an existing investor in the Vision Fund, having committed $15 billion to the first fund.
Two weeks ago, SoftBank announced it has gathered some $108 billion for Vision Fund 2. It had signed memoranda of understanding with 12 investors including the sovereign wealth fund of Kazakhstan, Microsoft Corp and Japan’s three mega banks, as well as existing Vision Fund backers Apple Inc and Foxconn.
Potential rise in #Saudi bank rates to have limited impact on growth - c.bank - Reuters
Potential rise in Saudi bank rates to have limited impact on growth - c.bank - Reuters:
Saudi Arabia’s central bank said on Tuesday that any potential rise in Saudi interbank rates in 2019 would have a limited impact on growth.
“Any additional increase in SAIBOR (Saudi interbank offered rates) in 2019 will have limited impact on local growth , due to limited debt levels at most listed firms,” it said in a report.
Saudi Arabia is well positioned to face uncertainty in the global economy, the Saudi Arabian Monetary Authority also said, due to an increase in foreign reserves and low public debt level.
Saudi Arabia’s central bank said on Tuesday that any potential rise in Saudi interbank rates in 2019 would have a limited impact on growth.
“Any additional increase in SAIBOR (Saudi interbank offered rates) in 2019 will have limited impact on local growth , due to limited debt levels at most listed firms,” it said in a report.
Saudi Arabia is well positioned to face uncertainty in the global economy, the Saudi Arabian Monetary Authority also said, due to an increase in foreign reserves and low public debt level.
Oil slips as U.S.-China trade tensions fuel demand concerns - Reuters
Oil slips as U.S.-China trade tensions fuel demand concerns - Reuters:
Oil prices dipped on Wednesday as potential damage to the global economy and fuel demand from the intensifying Sino-U.S. trade dispute continued to cast a shadow over the market.
International benchmark Brent crude futures LCOc1 were at $58.75 a barrel by 0642 GMT, down 19 cents, or 0.32%, from their previous settlement and trading near seven-month lows.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 12 cents, or 0.22%, from their last close at $53.51 per barrel.
Brent prices have plunged more than 9% in the past week after U.S. President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, sending global equity markets into a tailspin.
Oil prices dipped on Wednesday as potential damage to the global economy and fuel demand from the intensifying Sino-U.S. trade dispute continued to cast a shadow over the market.
International benchmark Brent crude futures LCOc1 were at $58.75 a barrel by 0642 GMT, down 19 cents, or 0.32%, from their previous settlement and trading near seven-month lows.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 12 cents, or 0.22%, from their last close at $53.51 per barrel.
Brent prices have plunged more than 9% in the past week after U.S. President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, sending global equity markets into a tailspin.
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