Oil slips below $59 amid economic worries | Financial Times:
Oil prices slipped below $59 on Wednesday, reversing gains made a day earlier amid heightened fears of a global economic turndown.
Brent crude, the global benchmark, fell by 4.8 per cent to $58.33 a barrel, while the US marker West Texas Intermediate was down 5.3 per cent to $54.06 a barrel.
On Tuesday the price of Brent crude rose above $60 a barrel but tumbled back down a day later as the bond markets flashed ominous signals in the US and UK.
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Wednesday 14 August 2019
Oil slumps more than 4% on weak global economic data, U.S. crude build - Reuters
Oil slumps more than 4% on weak global economic data, U.S. crude build - Reuters:
Oil prices sank more than 4% on Wednesday after global demand fears were revived by weak economic data from China and Europe and an unexpected build in U.S. crude inventories.
Brent crude LCOc1 was down $2.59, or 4.2%, to $58.71 a barrel, by 11:45 a.m. EDT (1545 GMT), nearly erasing the previous session’s sharp gains after the United States moved to delay tariffs on some Chinese products.
The global benchmark rose 4.7% on Tuesday, its biggest daily percentage gain since December.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped $2.68, or 4.7%, to $54.42 a barrel, having risen 4% the previous session, the most in just over a month.
Oil prices sank more than 4% on Wednesday after global demand fears were revived by weak economic data from China and Europe and an unexpected build in U.S. crude inventories.
Brent crude LCOc1 was down $2.59, or 4.2%, to $58.71 a barrel, by 11:45 a.m. EDT (1545 GMT), nearly erasing the previous session’s sharp gains after the United States moved to delay tariffs on some Chinese products.
The global benchmark rose 4.7% on Tuesday, its biggest daily percentage gain since December.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped $2.68, or 4.7%, to $54.42 a barrel, having risen 4% the previous session, the most in just over a month.
MIDEAST STOCKS-Egypt extends gains on inflation data, Gulf dips on recession fears - Reuters
MIDEAST STOCKS-Egypt extends gains on inflation data, Gulf dips on recession fears - Reuters:
Egyptian blue-chip stocks rose to their
highest in nearly three and a half months, extending the
previous session's gains, after Egypt reported
better-than-expected inflation data for the month of July.
Most Gulf markets traded on Wednesday after a three-day Eid
holiday, while Saudi Arabia and Oman will resume trading on
Sunday.
Egypt's blue-chip index surged 2.5% to 14,541
points, a level not seen since May 5. The country's biggest
lender Commercial International Bank rose 2.8%, while
El Sewedy Electric jumped 8.1%.
Egyptian blue-chip stocks rose to their
highest in nearly three and a half months, extending the
previous session's gains, after Egypt reported
better-than-expected inflation data for the month of July.
Most Gulf markets traded on Wednesday after a three-day Eid
holiday, while Saudi Arabia and Oman will resume trading on
Sunday.
Egypt's blue-chip index surged 2.5% to 14,541
points, a level not seen since May 5. The country's biggest
lender Commercial International Bank rose 2.8%, while
El Sewedy Electric jumped 8.1%.
Oil prices fall on weak economic data from Europe and China - Reuters
Oil prices fall on weak economic data from Europe and China - Reuters:
Oil prices fell on Wednesday on weak economic data from China and Europe and a rise in U.S. crude inventories, almost erasing the previous session’s sharp gains after the United States said it would delay tariffs on some Chinese products.
Brent crude LCOc1 was down $2.08, or 3.4%, at $59.22 a barrel at 1214 GMT, after rising 4.7% on Tuesday, the biggest percentage gain in a day since December.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $2.13, or 3.7%, at $54.97 a barrel, having risen 4% the previous session, the most in just over a month.
China reported a raft of unexpectedly weak data for July, including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the United States intensifies.
Oil prices fell on Wednesday on weak economic data from China and Europe and a rise in U.S. crude inventories, almost erasing the previous session’s sharp gains after the United States said it would delay tariffs on some Chinese products.
Brent crude LCOc1 was down $2.08, or 3.4%, at $59.22 a barrel at 1214 GMT, after rising 4.7% on Tuesday, the biggest percentage gain in a day since December.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $2.13, or 3.7%, at $54.97 a barrel, having risen 4% the previous session, the most in just over a month.
China reported a raft of unexpectedly weak data for July, including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the United States intensifies.
Agility logs profits in Q2 2019 | ZAWYA MENA Edition
Agility logs profits in Q2 2019 | ZAWYA MENA Edition:
Agility Public Warehousing, a company listed on Boursa Kuwait and the Dubai Financial Market (DFM), reported an 8.1% year-on-year increase in profits during the second quarter of 2019.
The profits hiked to KWD 21.61 million ($71.26 million) in Q2-19 from KWD 19.99 million ($65.92 million) in Q2-18, Boursa Kuwait disclosed on Wednesday.
In the first half of 2019, Agility’s profits rose to KWD 41.89 million, 7.7% higher than KWD 38.89 million in H1-18.
Agility Public Warehousing, a company listed on Boursa Kuwait and the Dubai Financial Market (DFM), reported an 8.1% year-on-year increase in profits during the second quarter of 2019.
The profits hiked to KWD 21.61 million ($71.26 million) in Q2-19 from KWD 19.99 million ($65.92 million) in Q2-18, Boursa Kuwait disclosed on Wednesday.
In the first half of 2019, Agility’s profits rose to KWD 41.89 million, 7.7% higher than KWD 38.89 million in H1-18.
#UAE's Waha Capital reports $49mln H1 loss | ZAWYA MENA Edition
UAE's Waha Capital reports $49mln H1 loss | ZAWYA MENA Edition:
Waha Capital, a leading investment company in Abu Dhabi, has reported a net loss of Dh182.2 million ($49.33 million) for the first half (H1) of this year.
The company’s Asset Management business recorded a solid performance, while its Private Investments unit recorded a loss, mainly due to provisions and one-off items, the company said.
Total income from Asset Management increased 64% year-on-year to Dh395 million, while the total general and admin expenses fell by 18% year-on-year to Dh107.2 million. The total impairments and loss on disposal aggregated to Dh363 million.
Waha Capital, a leading investment company in Abu Dhabi, has reported a net loss of Dh182.2 million ($49.33 million) for the first half (H1) of this year.
The company’s Asset Management business recorded a solid performance, while its Private Investments unit recorded a loss, mainly due to provisions and one-off items, the company said.
Total income from Asset Management increased 64% year-on-year to Dh395 million, while the total general and admin expenses fell by 18% year-on-year to Dh107.2 million. The total impairments and loss on disposal aggregated to Dh363 million.
#Saudi, Trump 'jawboning' suggests $75 top for oil market - Reuters
Saudi, Trump 'jawboning' suggests $75 top for oil market - Reuters:
Ask Saudi Arabia about its preferred oil price and the kingdom will say it has no target.
But a look at the pronouncements on the oil market by the world’s top oil exporter this year points to an oil price aspiration of around $70 per barrel LCOc1.
OPEC’s de facto leader probably would not mind oil prices rising to $75 per barrel and beyond.
But it has a problem. As soon as prices surge, U.S. President Donald Trump pops up, often on Twitter, to urge Saudi Arabia to lower prices.
OPEC has long understood the impact a few words said to reporters in a hotel lobby or over the phone can have on the price of oil, often called “jawboning” by analysts.
Ask Saudi Arabia about its preferred oil price and the kingdom will say it has no target.
But a look at the pronouncements on the oil market by the world’s top oil exporter this year points to an oil price aspiration of around $70 per barrel LCOc1.
OPEC’s de facto leader probably would not mind oil prices rising to $75 per barrel and beyond.
But it has a problem. As soon as prices surge, U.S. President Donald Trump pops up, often on Twitter, to urge Saudi Arabia to lower prices.
OPEC has long understood the impact a few words said to reporters in a hotel lobby or over the phone can have on the price of oil, often called “jawboning” by analysts.
Bank of #Sharjah Is Said to Plan Dollar Bond Sale to Repay Debt - Bloomberg
Bank of Sharjah Is Said to Plan Dollar Bond Sale to Repay Debt - Bloomberg:
Bank of Sharjah PJSC plans to issue dollar-denominated bonds later this year to help the United Arab Emirates lender repay existing debt, people with knowledge of the plan said.
The company wants to raise about $500 million in a sale likely to take place in September or October, according to the people, who asked not to be identified because the details are private. The bank, based in the emirate of Sharjah, and will use the proceeds to help settle notes maturing in June next year, they said.
“We’re exploring multiple options for an issue of senior unsecured securities, including private placements and a public deal, as well as in currencies such as the Swiss franc,” Martin Edmonds, the treasurer at Bank of Sharjah said. The lender earlier this year got shareholder approval for a Tier I hybrid issuance, which typically combines characteristics of both debt and equity.
Bank of Sharjah PJSC plans to issue dollar-denominated bonds later this year to help the United Arab Emirates lender repay existing debt, people with knowledge of the plan said.
The company wants to raise about $500 million in a sale likely to take place in September or October, according to the people, who asked not to be identified because the details are private. The bank, based in the emirate of Sharjah, and will use the proceeds to help settle notes maturing in June next year, they said.
“We’re exploring multiple options for an issue of senior unsecured securities, including private placements and a public deal, as well as in currencies such as the Swiss franc,” Martin Edmonds, the treasurer at Bank of Sharjah said. The lender earlier this year got shareholder approval for a Tier I hybrid issuance, which typically combines characteristics of both debt and equity.
Deflation Holds Fast in #AbuDhabi, With Housing Pressuring Most - Bloomberg
Deflation Holds Fast in Abu Dhabi, With Housing Pressuring Most - Bloomberg:
Deflation is becoming entrenched in the United Arab Emirates’ capital.
Consumer prices in Abu Dhabi declined for a second month, falling 1.4% in July from a year ago, according to a release by the emirate’s statistics service. The city’s consumer prices index dropped to its lowest level since at least 2015, when Bloomberg first started tracking the data.
An index of prices for housing, water and electricity, which holds the biggest weight among a dozen constituents, dropped 3.6% last month.
Deflation is becoming entrenched in the United Arab Emirates’ capital.
Consumer prices in Abu Dhabi declined for a second month, falling 1.4% in July from a year ago, according to a release by the emirate’s statistics service. The city’s consumer prices index dropped to its lowest level since at least 2015, when Bloomberg first started tracking the data.
An index of prices for housing, water and electricity, which holds the biggest weight among a dozen constituents, dropped 3.6% last month.
MIDEAST STOCKS-Most major Gulf markets open higher after Eid break - Reuters
MIDEAST STOCKS-Most major Gulf markets open higher after Eid break - Reuters:
Most major Gulf markets traded in positive territory on Wednesday after the Eid holiday, taking their cue from global equity markets which rose after Washington delayed tariffs on some Chinese imports.
President Donald Trump backed off his plan to impose 10% tariffs on Sept. 1 on remaining Chinese imports, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on U.S. holiday sales.
Among individual markets, Dubai’s index rose 0.4% as most of its real estate stocks traded higher, with blue-chip developer Emaar Properties gaining 1.1%.
Most major Gulf markets traded in positive territory on Wednesday after the Eid holiday, taking their cue from global equity markets which rose after Washington delayed tariffs on some Chinese imports.
President Donald Trump backed off his plan to impose 10% tariffs on Sept. 1 on remaining Chinese imports, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on U.S. holiday sales.
Among individual markets, Dubai’s index rose 0.4% as most of its real estate stocks traded higher, with blue-chip developer Emaar Properties gaining 1.1%.
#SaudiArabia needs more Opec production cuts, and soon | Financial Times
Saudi Arabia needs more Opec production cuts, and soon | Financial Times:
Khalid al-Falih has long vowed to do “whatever it takes” to support the oil price. If Saudi Arabia’s energy minister is good to his word, expect the Opec kingpin to try and corral the wider group and its allies into a deeper production cut when they next meet in December.
The kingdom has already sharply reduced production in the past seven months, dragging along non-member Russia and Opec allies such as the United Arab Emirates in restricting output to prop up prices.
But the strategy has not really worked. Despite US sanctions slashing Iran’s exports and heavily weighing on Venezuela’s output, crude tumbled back below $60 a barrel last week, before nosing above that level on Tuesday.
Khalid al-Falih has long vowed to do “whatever it takes” to support the oil price. If Saudi Arabia’s energy minister is good to his word, expect the Opec kingpin to try and corral the wider group and its allies into a deeper production cut when they next meet in December.
The kingdom has already sharply reduced production in the past seven months, dragging along non-member Russia and Opec allies such as the United Arab Emirates in restricting output to prop up prices.
But the strategy has not really worked. Despite US sanctions slashing Iran’s exports and heavily weighing on Venezuela’s output, crude tumbled back below $60 a barrel last week, before nosing above that level on Tuesday.
Oil Snaps Four-Day Gain as U.S. Stockpiles Rise Amid Trade Hopes - Bloomberg
Oil Snaps Four-Day Gain as U.S. Stockpiles Rise Amid Trade Hopes - Bloomberg:
West Texas Intermediate crude for September delivery fell 63 cents, or 1.1%, to $56.47 a barrel on the New York Mercantile Exchange as of 7:44 a.m. London time. The contract surged $2.17 to settle at $57.10 on Tuesday, the biggest advance since July 10.
Brent for October settlement decreased 48 cents, or 0.8%, to $60.82 on the ICE Futures Europe Exchange. The contract closed 4.7% higher Tuesday, the largest gain since Dec. 26. The global benchmark crude traded at a $4.36 premium to WTI for the same month.
U.S. crude stockpiles unexpectedly rose by 2.4 million barrels in the week ended Aug. 2, climbing from the lowest level since November for the first gain in eight weeks. The median estimate in the Bloomberg survey forecasts the Energy Information Administration will report a decline of 2.5 million barrels for the week ended Aug. 9, with 11 of the 13 analysts forecasting a drop.
West Texas Intermediate crude for September delivery fell 63 cents, or 1.1%, to $56.47 a barrel on the New York Mercantile Exchange as of 7:44 a.m. London time. The contract surged $2.17 to settle at $57.10 on Tuesday, the biggest advance since July 10.
Brent for October settlement decreased 48 cents, or 0.8%, to $60.82 on the ICE Futures Europe Exchange. The contract closed 4.7% higher Tuesday, the largest gain since Dec. 26. The global benchmark crude traded at a $4.36 premium to WTI for the same month.
U.S. crude stockpiles unexpectedly rose by 2.4 million barrels in the week ended Aug. 2, climbing from the lowest level since November for the first gain in eight weeks. The median estimate in the Bloomberg survey forecasts the Energy Information Administration will report a decline of 2.5 million barrels for the week ended Aug. 9, with 11 of the 13 analysts forecasting a drop.
#Dubai developer DAMAC Properties, contractor Arabtec Q2 profits drop - Reuters
Dubai developer DAMAC Properties, contractor Arabtec Q2 profits drop - Reuters:
Property developer DAMAC Properties Dubai Co PJSC reported a nearly 87% drop in second-quarter net profit on Wednesday, hurt by the emirate’s slumping property market.
DAMAC, owner and operator of the only Trump-branded golf club in the Middle East, said in a statement its net profit in the three months ended June 30 fell to 50.6 million dirhams ($13.78 million) from 378.2 million dirhams a year ago.
The results still beat analyst expectations from regional investment bank EFG-Hermes, which expected the developer to report a profit of 37 million dirhams.
Property developer DAMAC Properties Dubai Co PJSC reported a nearly 87% drop in second-quarter net profit on Wednesday, hurt by the emirate’s slumping property market.
DAMAC, owner and operator of the only Trump-branded golf club in the Middle East, said in a statement its net profit in the three months ended June 30 fell to 50.6 million dirhams ($13.78 million) from 378.2 million dirhams a year ago.
The results still beat analyst expectations from regional investment bank EFG-Hermes, which expected the developer to report a profit of 37 million dirhams.
Oil prices drop as data shows surprise climb in U.S. inventories - Reuters
Oil prices drop as data shows surprise climb in U.S. inventories - Reuters:
Oil prices fell on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week, erasing some gains from the last session that were stoked after Washington said it would delay tariffs on some Chinese goods.
The move by U.S. President Donald Trump sent commodities, stocks and other assets higher because of optimism the effects of the trade war, already being felt in economies across the world, will be blunted. Oil prices surged by as much as nearly 5 percent.
Brent crude was down 35 cents, or 0.6%, at $60.95 a barrel at 0116 GMT, after rising 4.7% on Tuesday, the biggest percentage gain since December.
U.S. oil was down 46 cents, or 0.8%, at $56.64 a barrel, having risen 4% the previous session, the most in just over a month.
Oil prices fell on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week, erasing some gains from the last session that were stoked after Washington said it would delay tariffs on some Chinese goods.
The move by U.S. President Donald Trump sent commodities, stocks and other assets higher because of optimism the effects of the trade war, already being felt in economies across the world, will be blunted. Oil prices surged by as much as nearly 5 percent.
Brent crude was down 35 cents, or 0.6%, at $60.95 a barrel at 0116 GMT, after rising 4.7% on Tuesday, the biggest percentage gain since December.
U.S. oil was down 46 cents, or 0.8%, at $56.64 a barrel, having risen 4% the previous session, the most in just over a month.