Goldman Says Lebanon May Cross Distress Threshold With Downgrade - Bloomberg:
Lebanon’s sovereign ranking will probably be cut deeper into junk by S&P Global Ratings within days, putting its bonds into a category considered vulnerable to nonpayment as the country struggles to claw back enough foreign currency, according to Goldman Sachs Group Inc.
One of the world’s most indebted nations is on negative outlook at S&P, which is due to publish a review on Friday and currently rates Lebanon B-, six steps below investment grade and one notch higher than Moody’s Investors Service.
“The steady deterioration in Lebanon’s FX liquidity position indicates a likely downgrade to CCC,” Goldman analysts including Farouk Soussa said in a note last week. Issuers in the CCC category are deemed dependent on favorable conditions to make good on their debt.
Monday 19 August 2019
Oil rises 2% after attack on Saudi field, stimulus expectations - Reuters
Oil rises 2% after attack on Saudi field, stimulus expectations - Reuters:
Oil prices gained roughly 2% on Monday after a weekend attack on a Saudi oil facility by Yemen’s Houthi forces threatened crude supplies and as traders looked for signs that top economies would take measures to counteract a global slowdown.
Brent crude LCOc1, the international benchmark for oil prices, settled at $59.74 a barrel, rising $1.10, or 1.88%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 settled at $56.21 a barrel, up $1.34, or 2.44%.
Oil prices gained roughly 2% on Monday after a weekend attack on a Saudi oil facility by Yemen’s Houthi forces threatened crude supplies and as traders looked for signs that top economies would take measures to counteract a global slowdown.
Brent crude LCOc1, the international benchmark for oil prices, settled at $59.74 a barrel, rising $1.10, or 1.88%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 settled at $56.21 a barrel, up $1.34, or 2.44%.
Oil Climbs as Huawei Delay Offers Latest Sign of Trade War Truce - Bloomberg
Oil Climbs as Huawei Delay Offers Latest Sign of Trade War Truce - Bloomberg:
Oil climbed as the U.S. delayed sanctions against Huawei Technologies Co., offering a hint of progress in its trade war with China, and a drone attack in Saudi Arabia highlighted simmering Middle East tensions.
Futures in New York jumped as much as 2.3% to top $56 a barrel in a volatile trading session. The U.S. will extend exemptions for customers of the Chinese telecom giant for another 90 days, Commerce Secretary Wilbur Ross said on Monday. The move comes a week after President Donald Trump delayed new tariffs on consumer goods until mid-December.
Meanwhile, the drone strike by Yemeni rebels on the Shaybah field in Saudi Arabia, the generator of about 1 million barrels a day, was a reminder of the continuing threats in the heart of global crude production. The attack sparked only a small fire and no disruption to output, Saudi Arabian Oil Co. said in a statement.
Oil climbed as the U.S. delayed sanctions against Huawei Technologies Co., offering a hint of progress in its trade war with China, and a drone attack in Saudi Arabia highlighted simmering Middle East tensions.
Futures in New York jumped as much as 2.3% to top $56 a barrel in a volatile trading session. The U.S. will extend exemptions for customers of the Chinese telecom giant for another 90 days, Commerce Secretary Wilbur Ross said on Monday. The move comes a week after President Donald Trump delayed new tariffs on consumer goods until mid-December.
Meanwhile, the drone strike by Yemeni rebels on the Shaybah field in Saudi Arabia, the generator of about 1 million barrels a day, was a reminder of the continuing threats in the heart of global crude production. The attack sparked only a small fire and no disruption to output, Saudi Arabian Oil Co. said in a statement.
#Saudi Aramco asks banks to pitch for roles in IPO: sources - Reuters
Saudi Aramco asks banks to pitch for roles in IPO: sources - Reuters:
Saudi Aramco has formally asked major banks to submit proposals for potential roles in its planned initial public offering, two sources said, in what could be the world’s biggest IPO.
Aramco’s planned IPO, which could potentially raise $100 billion, is the centerpiece of Saudi Arabia’s economic transformation drive to attract foreign investment and diversify away from oil.
Request for proposals were sent to banks few days day ago, they said.
Saudi Aramco has formally asked major banks to submit proposals for potential roles in its planned initial public offering, two sources said, in what could be the world’s biggest IPO.
Aramco’s planned IPO, which could potentially raise $100 billion, is the centerpiece of Saudi Arabia’s economic transformation drive to attract foreign investment and diversify away from oil.
Request for proposals were sent to banks few days day ago, they said.
U.S. Oil Poses Threat to Mideast Sellers With Asia Trading Debut - Bloomberg
U.S. Oil Poses Threat to Mideast Sellers With Asia Trading Debut - Bloomberg:
The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.
Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.
Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades that’s produced in Saudi Arabia, Abu Dhabi and Qatar. The flow of U.S. oil to Asia, once considered a one-off arbitrage, has expanded in recent years into more frequent shipments.
The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.
Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.
Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades that’s produced in Saudi Arabia, Abu Dhabi and Qatar. The flow of U.S. oil to Asia, once considered a one-off arbitrage, has expanded in recent years into more frequent shipments.
MIDEAST STOCKS-Gulf markets mixed but #Saudi outperforms on banks - Reuters
MIDEAST STOCKS-Gulf markets mixed but Saudi outperforms on banks - Reuters:
Saudi Arabian stocks were lifted on
Monday as most of its banking shares rose amid rising oil
prices, while other Middle Eastern bourses in the region were
lacklustre.
Crude oil prices rose following a weekend attack on a Saudi
oil facility by Yemeni Houthi forces and as traders looked for
signs of progress in U.S.-China trade negotiations.
Saudi Arabia's index rose 0.5% with Al Rajhi Bank
, adding 0.8% and Saudi Telecom increasing
2.4%.
Saudi Arabian stocks were lifted on
Monday as most of its banking shares rose amid rising oil
prices, while other Middle Eastern bourses in the region were
lacklustre.
Crude oil prices rose following a weekend attack on a Saudi
oil facility by Yemeni Houthi forces and as traders looked for
signs of progress in U.S.-China trade negotiations.
Saudi Arabia's index rose 0.5% with Al Rajhi Bank
, adding 0.8% and Saudi Telecom increasing
2.4%.
Profits of 157 Kuwaiti listed firms grow 6% in Q2 2019 | ZAWYA MENA Edition
Profits of 157 Kuwaiti listed firms grow 6% in Q2 2019 | ZAWYA MENA Edition:
The overall profits of 157 Kuwaiti companies listed on Boursa Kuwait rose by 5.7% year-on-year during the second quarter of 2019.
Total profits of the period soared to KWD 542.013 million ($1.79 billion) in Q2-19 from KWD 512.993 million ($1.69 billion) in Q2-18, according to data collected by Mubasher.
The banking sector led the quarterly top gainers with 56.1% of Boursa Kuwait’s total profits at a value of KWD 303.89 million, followed by the financial services sector which acquired 13.9% at a value of KWD 75.35 million.
The overall profits of 157 Kuwaiti companies listed on Boursa Kuwait rose by 5.7% year-on-year during the second quarter of 2019.
Total profits of the period soared to KWD 542.013 million ($1.79 billion) in Q2-19 from KWD 512.993 million ($1.69 billion) in Q2-18, according to data collected by Mubasher.
The banking sector led the quarterly top gainers with 56.1% of Boursa Kuwait’s total profits at a value of KWD 303.89 million, followed by the financial services sector which acquired 13.9% at a value of KWD 75.35 million.
Fitch affirms Ras Al Khaimah at 'A'; outlook stable | ZAWYA MENA Edition
Fitch affirms Ras Al Khaimah at 'A'; outlook stable | ZAWYA MENA Edition:
Fitch Ratings-Hong Kong-August 19: Fitch Ratings has affirmed Ras Al Khaimah's (RAK) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A' with a Stable Outlook.
A full list of rating actions is at the end of this rating action commentary.
KEY RATING DRIVERS
Fitch Ratings-Hong Kong-August 19: Fitch Ratings has affirmed Ras Al Khaimah's (RAK) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A' with a Stable Outlook.
A full list of rating actions is at the end of this rating action commentary.
KEY RATING DRIVERS
Hedge funds sell oil as global economy slows: Kemp - Reuters
Hedge funds sell oil as global economy slows: Kemp - Reuters:
Hedge funds cut their bullish positions in petroleum last week for the second week running as anxiety about the slowing global economy and oil consumption trumped optimism over production restraint by OPEC and its allies.
Hedge funds and other money managers reduced their net long position in the six major petroleum futures and options contracts by 35 million barrels in the week to Aug. 13, having cut it by 25 million barrels the previous week.
Portfolio managers last week sold Brent (37 million barrels), U.S. gasoline (15 million), U.S. heating oil (9 million) and European gasoil (4 million) as the consumption outlook deteriorated.
Hedge funds cut their bullish positions in petroleum last week for the second week running as anxiety about the slowing global economy and oil consumption trumped optimism over production restraint by OPEC and its allies.
Hedge funds and other money managers reduced their net long position in the six major petroleum futures and options contracts by 35 million barrels in the week to Aug. 13, having cut it by 25 million barrels the previous week.
Portfolio managers last week sold Brent (37 million barrels), U.S. gasoline (15 million), U.S. heating oil (9 million) and European gasoil (4 million) as the consumption outlook deteriorated.
Oil up after drone attack on Saudi field, but OPEC report caps gains - Reuters
Oil up after drone attack on Saudi field, but OPEC report caps gains - Reuters:
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs of progress in U.S.-China trade negotiations.
Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1, the international benchmark for oil prices, was up 36 cents, or about 0.6%, at $59.00 a barrel at 1225 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 30 cents, or 0.5%, at $55.17 a barrel.
A drone attack by Yemen’s Houthi group on an oilfield in eastern Saudi Arabia on Saturday caused a fire at a gas plant, adding to Middle East tensions, but state-run Saudi Aramco said oil production was not affected.
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs of progress in U.S.-China trade negotiations.
Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1, the international benchmark for oil prices, was up 36 cents, or about 0.6%, at $59.00 a barrel at 1225 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 30 cents, or 0.5%, at $55.17 a barrel.
A drone attack by Yemen’s Houthi group on an oilfield in eastern Saudi Arabia on Saturday caused a fire at a gas plant, adding to Middle East tensions, but state-run Saudi Aramco said oil production was not affected.
Oil rises after drone attack on Saudi field - Reuters
Oil rises after drone attack on Saudi field - Reuters:
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs that Sino-U.S. trade tensions could ease.
Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1, the international benchmark for oil prices, was up 55 cents, or about 0.9%, at $59.19 a barrel at 0820 GMT,
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 57 cents, or 1%, at $55.44 a barrel.
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs that Sino-U.S. trade tensions could ease.
Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1, the international benchmark for oil prices, was up 55 cents, or about 0.9%, at $59.19 a barrel at 0820 GMT,
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 57 cents, or 1%, at $55.44 a barrel.
MIDEAST STOCKS-Banks lift #Saudi as most major Gulf markets rise - Reuters
MIDEAST STOCKS-Banks lift Saudi as most major Gulf markets rise - Reuters:
Saudi Arabia’s stock market rose in early trading on Monday helped by banking shares and increasing oil prices, while most major Gulf stocks advanced mirroring gains in global equities.
Asian stocks, riding a Wall Street rally, were cheered by China’s central bank decision to alter the way it sets a key interest rate benchmark, a move seen by analysts as reducing borrowing costs for companies.
Crude oil prices rose following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-U.S. trade tensions could ease.
Saudi Arabia’s stock market rose in early trading on Monday helped by banking shares and increasing oil prices, while most major Gulf stocks advanced mirroring gains in global equities.
Asian stocks, riding a Wall Street rally, were cheered by China’s central bank decision to alter the way it sets a key interest rate benchmark, a move seen by analysts as reducing borrowing costs for companies.
Crude oil prices rose following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-U.S. trade tensions could ease.
Oil Refiners Go From Profit Pain to Gain as Ship-Fuel Rules Near - Bloomberg
Oil Refiners Go From Profit Pain to Gain as Ship-Fuel Rules Near - Bloomberg:
The imminent overhaul of global ship-fuel regulations is finally delivering a long-awaited benefit to Asian oil refiners.
Profits from turning crude into diesel in the second half of 2019 are forecast to be about 31% higher than the first six months, according to Goldman Sachs Group Inc. Margins have already expanded around 40% since late April as International Maritime Organization rules that prohibit ships from using dirty fuel from Jan. 1 are set to bolster diesel demand, while cutting fuel oil use.
It’s taken a while though. In the first half of the year, margins were in freefall as a slew of refinery startups in Asia flooded the market and the trade war between Washington and Beijing weighed on demand. Refiners in China, South Korea and Taiwan were forced to reduce operating rates due to poor margins and a fuel glut. Output cuts from OPEC+ also squeezed the flow of heavier crude, raising the costs for many Asian buyers that rely on Middle Eastern oil.
The imminent overhaul of global ship-fuel regulations is finally delivering a long-awaited benefit to Asian oil refiners.
Profits from turning crude into diesel in the second half of 2019 are forecast to be about 31% higher than the first six months, according to Goldman Sachs Group Inc. Margins have already expanded around 40% since late April as International Maritime Organization rules that prohibit ships from using dirty fuel from Jan. 1 are set to bolster diesel demand, while cutting fuel oil use.
It’s taken a while though. In the first half of the year, margins were in freefall as a slew of refinery startups in Asia flooded the market and the trade war between Washington and Beijing weighed on demand. Refiners in China, South Korea and Taiwan were forced to reduce operating rates due to poor margins and a fuel glut. Output cuts from OPEC+ also squeezed the flow of heavier crude, raising the costs for many Asian buyers that rely on Middle Eastern oil.
#UAE banks' exposure to real estate declines | ZAWYA MENA Edition
UAE banks' exposure to real estate declines | ZAWYA MENA Edition:
Growth in the UAE banking sector's loan exposure to the real estate sector nearly halved to 8.5 per cent last year, compared to 18.1 per cent in the previous year, due to a persistent decline in property prices as well as a reduction in the number of project launches.
According to the UAE Central Bank's Financial Stability Report 2018, the outstanding balance of real estate loans amounted to Dh379 billion at the end of 2018, which was slightly above 20 per cent of total loans. Bank lending to the real estate sector (including both residential and commercial real estate) grew at 18.1 per cent in 2017 as against 10.3 per cent in 2016.
"The asset quality of the commercial and residential real estate loans remained stable during 2018, while it deteriorated for the construction sector," the report said.
Growth in the UAE banking sector's loan exposure to the real estate sector nearly halved to 8.5 per cent last year, compared to 18.1 per cent in the previous year, due to a persistent decline in property prices as well as a reduction in the number of project launches.
According to the UAE Central Bank's Financial Stability Report 2018, the outstanding balance of real estate loans amounted to Dh379 billion at the end of 2018, which was slightly above 20 per cent of total loans. Bank lending to the real estate sector (including both residential and commercial real estate) grew at 18.1 per cent in 2017 as against 10.3 per cent in 2016.
"The asset quality of the commercial and residential real estate loans remained stable during 2018, while it deteriorated for the construction sector," the report said.
Oil prices climb after Saudi oilfield attack, but recession worries drag - Reuters
Oil prices climb after Saudi oilfield attack, but recession worries drag - Reuters:
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-U.S. trade tensions could ease.
But price gains were capped by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1 was up 64 cents, or about 1.1%, at $59.28 a barrel at 0255 GMT,
U.S. crude CLc1 was up 55 cents, or 1%, at $55.42 a barrel.
“Oil is benefiting from an overall optimism that we won’t see the doomsday trade war scenario and after a drone attack on oil and gas facilities in Saudi Arabia reminded markets geopolitical tensions in the Middle East are going nowhere anytime soon,” said Edward Moya, senior market analyst at OANDA in New York.
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-U.S. trade tensions could ease.
But price gains were capped by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1 was up 64 cents, or about 1.1%, at $59.28 a barrel at 0255 GMT,
U.S. crude CLc1 was up 55 cents, or 1%, at $55.42 a barrel.
“Oil is benefiting from an overall optimism that we won’t see the doomsday trade war scenario and after a drone attack on oil and gas facilities in Saudi Arabia reminded markets geopolitical tensions in the Middle East are going nowhere anytime soon,” said Edward Moya, senior market analyst at OANDA in New York.
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