Oil little changed as U.S. crude stockdraw countered by demand fears - Reuters:
Oil prices were little changed on Thursday as support from a sharp drawdown in U.S. crude inventories was countered by fears of slowing global demand growth amid doubts over resolving the U.S.-China trade feud.
Global benchmark Brent crude settled at $60.95 a barrel, rising 25 cents, while U.S. West Texas Intermediate (WTI) crude rose 4 cents to end at $56.30.
U.S. crude and product inventories fell last week, with crude drawing down for a third consecutive week despite a jump in imports, the Energy Information Administration said.
Crude stocks dropped 4.8 million barrels, nearly double analysts’ expectations, to 423 million barrels, their lowest since October 2018.
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Thursday 5 September 2019
Saudis Lean on Oil-Trading Contacts in Push to Become Big in LNG - Bloomberg
Saudis Lean on Oil-Trading Contacts in Push to Become Big in LNG - Bloomberg:
The biggest oil exporter is stepping up its efforts to become a major force in natural gas.
Saudi Aramco, the world’s most profitable company, is trying to break into the fledgling market for liquefied natural gas trading. To do so, the state-owned company is tapping its decades-old network of oil-trading contacts, selling its first two cargoes to longstanding crude customers in South Korea and India.
Aramco is joining oil companies from Royal Dutch Shell Plc to BP Plc in increasingly focusing on liquefied natural gas, the fastest-growing fossil fuel. That comes as production soars with the start of multibillion-dollar liquefaction plants across the world, creating a glut that may last until the middle of the next decade.
The biggest oil exporter is stepping up its efforts to become a major force in natural gas.
Saudi Aramco, the world’s most profitable company, is trying to break into the fledgling market for liquefied natural gas trading. To do so, the state-owned company is tapping its decades-old network of oil-trading contacts, selling its first two cargoes to longstanding crude customers in South Korea and India.
Aramco is joining oil companies from Royal Dutch Shell Plc to BP Plc in increasingly focusing on liquefied natural gas, the fastest-growing fossil fuel. That comes as production soars with the start of multibillion-dollar liquefaction plants across the world, creating a glut that may last until the middle of the next decade.
Cash balance of EMEA companies at nearly $1.21trln; Saudi Aramco tops the list | ZAWYA MENA Edition
Cash balance of EMEA companies at nearly $1.21trln; Saudi Aramco tops the list | ZAWYA MENA Edition:
Rated non-financial companies in the Europe, Middle East and Africa (EMEA) region held nearly €1.1 trillion ($1.21 trillion) in total cash at the end of 2018, thanks to a significant increase in the cash holdings of the top 10 corporate companies worldwide, led by Saudi Aramco, in 2018.
The corporate cash pile of EMEA non-financial companies in 2018, according to a Moody’s Investor Service report, climbed 15 percent compared to €941 billion ($1040.4 billion) at the end of 2017. The ratio of cash to revenue, which is more comparable year-to-year, was at 14.2 percent in 2018, which was the average for the past seven years, the Moody's report noted.
The cash holdings of the top 10 companies worldwide leapt by 30 percent to €260 billion in 2018 with oil giant Saudi Aramco topping the list.
Rated non-financial companies in the Europe, Middle East and Africa (EMEA) region held nearly €1.1 trillion ($1.21 trillion) in total cash at the end of 2018, thanks to a significant increase in the cash holdings of the top 10 corporate companies worldwide, led by Saudi Aramco, in 2018.
The corporate cash pile of EMEA non-financial companies in 2018, according to a Moody’s Investor Service report, climbed 15 percent compared to €941 billion ($1040.4 billion) at the end of 2017. The ratio of cash to revenue, which is more comparable year-to-year, was at 14.2 percent in 2018, which was the average for the past seven years, the Moody's report noted.
The cash holdings of the top 10 companies worldwide leapt by 30 percent to €260 billion in 2018 with oil giant Saudi Aramco topping the list.
Oil trader Vitol sees softer oil price in short term: CEO - Reuters
Oil trader Vitol sees softer oil price in short term: CEO - Reuters:
The chief executive of the world’s biggest oil trader, Vitol, told Reuters he expects a weaker oil price in the short term but does not see sustained levels below $50 a barrel.
Global oil prices fell sharply last month on signs of a slowing world economy and the on-going trade war between the United States and China.
“I expect a softer price in Q4 but it is unlikely to be sustained below $50 a barrel because that means $45 for shale, which would result in capex being cut,” CEO Russell Hardy said.
The chief executive of the world’s biggest oil trader, Vitol, told Reuters he expects a weaker oil price in the short term but does not see sustained levels below $50 a barrel.
Global oil prices fell sharply last month on signs of a slowing world economy and the on-going trade war between the United States and China.
“I expect a softer price in Q4 but it is unlikely to be sustained below $50 a barrel because that means $45 for shale, which would result in capex being cut,” CEO Russell Hardy said.
Oil rises to $61 on trade hopes; U.S. inventories eyed - Reuters
Oil rises to $61 on trade hopes; U.S. inventories eyed - Reuters:
Oil rose to $61 a barrel on Thursday as hopes of progress in resolving the U.S.-China trade row boosted investor sentiment, although a report showing U.S. crude inventories unexpectedly increased weighed on prices.
Crude had gained more than 4% on Wednesday as positive Chinese economic data sparked a wider market rally. On Thursday, China said Beijing and Washington had agreed to hold high-level trade talks in early October.
“The upswing itself is likely to have sparked further follow-up buying,” said Eugen Weinberg of Commerzbank, who added the planned U.S.-China trade talks were among factors boosting investor risk appetite.
Benchmark Brent crude was up 60 cents at $61.30 a barrel by 1324 GMT, having earlier fallen to $60.25. U.S. West Texas Intermediate (WTI) crude added 30 cents to $56.56.
Oil rose to $61 a barrel on Thursday as hopes of progress in resolving the U.S.-China trade row boosted investor sentiment, although a report showing U.S. crude inventories unexpectedly increased weighed on prices.
Crude had gained more than 4% on Wednesday as positive Chinese economic data sparked a wider market rally. On Thursday, China said Beijing and Washington had agreed to hold high-level trade talks in early October.
“The upswing itself is likely to have sparked further follow-up buying,” said Eugen Weinberg of Commerzbank, who added the planned U.S.-China trade talks were among factors boosting investor risk appetite.
Benchmark Brent crude was up 60 cents at $61.30 a barrel by 1324 GMT, having earlier fallen to $60.25. U.S. West Texas Intermediate (WTI) crude added 30 cents to $56.56.
Mubadala expected to invest in Vision Fund 2 in fourth quarter: sources - Reuters
Mubadala expected to invest in Vision Fund 2 in fourth quarter: sources - Reuters:
Abu Dhabi state fund Mubadala Investment Company is expected to invest in Japanese group SoftBank’s Vision Fund 2 in the fourth quarter of 2019, which will focus on technology projects, two sources familiar with the matter told Reuters.
In 2017, political and economic allies United Arab Emirates and Saudi Arabia contributed nearly two-thirds to SoftBank’s technology and innovation focused $100 billion Vision Fund 1 through their sovereign wealth funds.
Mubadala committed $15 billion while Saudi Arabia’s Public Investment Fund (PIF) committed $45 billion.
Abu Dhabi state fund Mubadala Investment Company is expected to invest in Japanese group SoftBank’s Vision Fund 2 in the fourth quarter of 2019, which will focus on technology projects, two sources familiar with the matter told Reuters.
In 2017, political and economic allies United Arab Emirates and Saudi Arabia contributed nearly two-thirds to SoftBank’s technology and innovation focused $100 billion Vision Fund 1 through their sovereign wealth funds.
Mubadala committed $15 billion while Saudi Arabia’s Public Investment Fund (PIF) committed $45 billion.
MIDEAST STOCKS-Emirates NBD's gains support #Dubai, Egypt up on financials - Reuters
MIDEAST STOCKS-Emirates NBD's gains support Dubai, Egypt up on financials - Reuters:
The Dubai stock market rose on Thursday,
mainly helped by its largest lender Emirates NBD,
while Egypt rebounded on the back of financials.
Dubai's index closed 0.4% up, with Emirates NBD
increasing 1.5% and Dubai Islamic Bank, the United
Arab Emirates’ largest sharia-compliant lender, adding 0.6%.
Emirates NBD has been rising since Monday after it raised its
foreign ownership limit to 20% from 5%.
But developers capped the gains with Emaar Properties
, the emirate's largest listed developer, sliding 0.8%
extending losses for a third day in a row.
The Dubai stock market rose on Thursday,
mainly helped by its largest lender Emirates NBD,
while Egypt rebounded on the back of financials.
Dubai's index closed 0.4% up, with Emirates NBD
increasing 1.5% and Dubai Islamic Bank, the United
Arab Emirates’ largest sharia-compliant lender, adding 0.6%.
Emirates NBD has been rising since Monday after it raised its
foreign ownership limit to 20% from 5%.
But developers capped the gains with Emaar Properties
, the emirate's largest listed developer, sliding 0.8%
extending losses for a third day in a row.
Emirates NBD Favored, Arqaam Capital's Meijer Says
Emirates NBD Favored, Arqaam Capital's Meijer Says:
Jaap Meijer, the head of research at Arqaam Capital in Dubai, talks about Middle East banks. He speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Jaap Meijer, the head of research at Arqaam Capital in Dubai, talks about Middle East banks. He speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Aqil Kazim, CCO at Nakheel, on #Dubai Property Market Reform Plan - Bloomberg
Aqil Kazim, CCO at Nakheel, on Dubai Property Market Reform Plan - Bloomberg:
Aqil Kazim, chief commercial officer at Nakheel PJSC, the developer of palm-shaped islands off Dubai’s coast, talks about the government's plan to set up a committee to balance property supply and demand. A slump in prices weighs on developers in the Middle East’s business hub. Kazim speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Aqil Kazim, chief commercial officer at Nakheel PJSC, the developer of palm-shaped islands off Dubai’s coast, talks about the government's plan to set up a committee to balance property supply and demand. A slump in prices weighs on developers in the Middle East’s business hub. Kazim speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Russia LNG Ambitions Advance With Plans for Remotest Regions - Bloomberg
Russia LNG Ambitions Advance With Plans for Remotest Regions - Bloomberg: Russia took a step closer to becoming a dominant player in the global liquefied natural gas market as two of its biggest energy companies advanced plans to export the fuel from its remotest corners.
Rosneft PJSC, Russia’s top oil company, said Thursday it plans together with its partners in the Sakhalin 1 project to build an LNG export plant in the far eastern port city of De-Kastri. Meanwhile Novatek PJSC, the country’s largest LNG producer, made a final investment decision on its $21 billion Arctic LNG 2 plant on the Gulf of Ob.
Natural gas is expected to be the fastest growing fossil fuel through 2040, and it will increasingly be transported in liquid form, according to the International Energy Agency. China, India and other developing countries plan higher imports to bring energy and electricity to their people at a fraction of the pollution of coal or oil.
Rosneft PJSC, Russia’s top oil company, said Thursday it plans together with its partners in the Sakhalin 1 project to build an LNG export plant in the far eastern port city of De-Kastri. Meanwhile Novatek PJSC, the country’s largest LNG producer, made a final investment decision on its $21 billion Arctic LNG 2 plant on the Gulf of Ob.
Natural gas is expected to be the fastest growing fossil fuel through 2040, and it will increasingly be transported in liquid form, according to the International Energy Agency. China, India and other developing countries plan higher imports to bring energy and electricity to their people at a fraction of the pollution of coal or oil.
Putin Reaps Political Gains From OPEC+ as Economic Boost Wanes - Bloomberg
Putin Reaps Political Gains From OPEC+ as Economic Boost Wanes - Bloomberg:
Russia’s pact with OPEC has significantly enhanced President Vladimir Putin’s presence on the world stage, but as his geopolitical clout keeps growing the economic benefits for his country have lost some potency.
What began in 2016 as a temporary measure to boost oil prices has become an alliance meant to last for “eternity.” For a third year, Russian companies are curbing output and scaling back investment in new projects. Yet concerns about how this is starting to weigh on the nation’s growth are overshadowed by the benefits to their president’s international profile.
After years of Saudi Arabia calling the shots within the Organization of Petroleum Exporting Countries, Putin has quickly stolen the limelight. At the Group of 20 meeting in June, he demonstrated his new power over the global oil market by announcing an extension of production cuts himself, essentially making the group’s mid-year talks in Vienna redundant.
Russia’s pact with OPEC has significantly enhanced President Vladimir Putin’s presence on the world stage, but as his geopolitical clout keeps growing the economic benefits for his country have lost some potency.
What began in 2016 as a temporary measure to boost oil prices has become an alliance meant to last for “eternity.” For a third year, Russian companies are curbing output and scaling back investment in new projects. Yet concerns about how this is starting to weigh on the nation’s growth are overshadowed by the benefits to their president’s international profile.
After years of Saudi Arabia calling the shots within the Organization of Petroleum Exporting Countries, Putin has quickly stolen the limelight. At the Group of 20 meeting in June, he demonstrated his new power over the global oil market by announcing an extension of production cuts himself, essentially making the group’s mid-year talks in Vienna redundant.
#Dubai house prices to fall sharply: Reuters poll - Reuters
Dubai house prices to fall sharply: Reuters poll - Reuters:
Dubai house prices will decline sharply this year and next, according to property market experts in a Reuters poll, who said a slowdown in the economy and an oversupply of housing units are big downside risks to their already weak outlook.
Dubai - with a diversified trade and tourism economy and one of the seven territories of the United Arab Emirates - has faced a sharp slowdown in its real estate market for most of this decade, barring a pick up for a brief period more than five years ago.
That downward trend is likely to continue in Dubai housing market activity, one of the primary contributors to its gross domestic product.
Dubai house prices will decline sharply this year and next, according to property market experts in a Reuters poll, who said a slowdown in the economy and an oversupply of housing units are big downside risks to their already weak outlook.
Dubai - with a diversified trade and tourism economy and one of the seven territories of the United Arab Emirates - has faced a sharp slowdown in its real estate market for most of this decade, barring a pick up for a brief period more than five years ago.
That downward trend is likely to continue in Dubai housing market activity, one of the primary contributors to its gross domestic product.
#Dubai's Emirates NBD confirms sale of shares in Network International | ZAWYA MENA Edition
Dubai's Emirates NBD confirms sale of shares in Network International | ZAWYA MENA Edition:
Emirates NBD, Dubai’s largest lender, which holds more than 20 percent stake in Network International has confirmed the sale of an aggregate of 52.6 million ordinary shares in the share capital of the payment processor.
The bank executed the sale of shares via an accelerated bookbuild to institutional investors at a price of 580 pence per ordinary share.
Dubai-based Network International is the largest payments processor in the Middle East and Africa and went for the first international IPO in London in April.
Emirates NBD, Dubai’s largest lender, which holds more than 20 percent stake in Network International has confirmed the sale of an aggregate of 52.6 million ordinary shares in the share capital of the payment processor.
The bank executed the sale of shares via an accelerated bookbuild to institutional investors at a price of 580 pence per ordinary share.
Dubai-based Network International is the largest payments processor in the Middle East and Africa and went for the first international IPO in London in April.
Russia ups LNG race with green light on $21 billion Arctic LNG-2 project - Reuters
Russia ups LNG race with green light on $21 billion Arctic LNG-2 project - Reuters:
The $21 billion Arctic liquefied natural gas (LNG)-2 project led by Russian private gas producer Novatek won a green light on Thursday, the latest in a raft of new projects aimed at meeting a likely doubling of LNG demand over the next 15 years.
Arctic LNG-2 is expected to launch in 2023 and will aim to export 80 percent of its LNG to Asia, Novatek Chief Executive Leonid Mikhelson, Russia’s richest businessman according to Forbes magazine, said after the project’s partners signed a final investment decision (FID) at an economic forum.
At nearly 20 million tonnes per annum (mmpta) of LNG it would be largest single project to reach FID, according to Wood Mackenzie, and take total LNG volumes sanctioned this year to about 63 mtpa, beating the previous record of 45 mmtpa in 2005.
The $21 billion Arctic liquefied natural gas (LNG)-2 project led by Russian private gas producer Novatek won a green light on Thursday, the latest in a raft of new projects aimed at meeting a likely doubling of LNG demand over the next 15 years.
Arctic LNG-2 is expected to launch in 2023 and will aim to export 80 percent of its LNG to Asia, Novatek Chief Executive Leonid Mikhelson, Russia’s richest businessman according to Forbes magazine, said after the project’s partners signed a final investment decision (FID) at an economic forum.
At nearly 20 million tonnes per annum (mmpta) of LNG it would be largest single project to reach FID, according to Wood Mackenzie, and take total LNG volumes sanctioned this year to about 63 mtpa, beating the previous record of 45 mmtpa in 2005.
Oil slips toward $60 on U.S. inventory rise but trade hopes support - Reuters
Oil slips toward $60 on U.S. inventory rise but trade hopes support - Reuters:
Oil slipped toward $60 a barrel on Thursday after a report showed U.S. crude inventories rose unexpectedly, although hopes of progress in resolving the U.S.-China trade row lent support.
The American Petroleum Institute (API), an industry group, on Wednesday said U.S. crude stockpiles rose by 400,000 barrels last week, while analysts had expected a fall. The government’s official supply report is due out later on Thursday.
Benchmark Brent crude was down 25 cents at $60.45 a barrel by 0821 GMT, while U.S. West Texas Intermediate (WTI) crude fell 39 cents to $55.87.
“Oil prices remain range-bound despite yesterday’s rally,” said OANDA analyst Craig Erlam. “API reported a modest increase in inventories on Wednesday, which failed to do much for oil prices.”
Oil slipped toward $60 a barrel on Thursday after a report showed U.S. crude inventories rose unexpectedly, although hopes of progress in resolving the U.S.-China trade row lent support.
The American Petroleum Institute (API), an industry group, on Wednesday said U.S. crude stockpiles rose by 400,000 barrels last week, while analysts had expected a fall. The government’s official supply report is due out later on Thursday.
Benchmark Brent crude was down 25 cents at $60.45 a barrel by 0821 GMT, while U.S. West Texas Intermediate (WTI) crude fell 39 cents to $55.87.
“Oil prices remain range-bound despite yesterday’s rally,” said OANDA analyst Craig Erlam. “API reported a modest increase in inventories on Wednesday, which failed to do much for oil prices.”
MIDEAST STOCKS-Banks aid #Saudi; other markets mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks aid Saudi; other markets mixed - Agricultural Commodities - Reuters:
The Saudi stock market rose in early trade on Thursday as most of its banks gained, while other major markets were mixed.
Saudi Arabia’s index was up 0.3% with Al Rajhi Bank , the sharia-compliant lender, adding 0.7% and Riyad Bank was up 1.6%.
Fitch in a note said profitability improved in 2018 at Saudi Islamic banks as these benefited from stronger growth opportunities but asset-quality challenges continued.
The Saudi stock market rose in early trade on Thursday as most of its banks gained, while other major markets were mixed.
Saudi Arabia’s index was up 0.3% with Al Rajhi Bank , the sharia-compliant lender, adding 0.7% and Riyad Bank was up 1.6%.
Fitch in a note said profitability improved in 2018 at Saudi Islamic banks as these benefited from stronger growth opportunities but asset-quality challenges continued.
Aabar's bonds drop on 'adverse' audit, despite #AbuDhabi backing - Reuters
Aabar's bonds drop on 'adverse' audit, despite Abu Dhabi backing - Reuters:
Aabar Investment’s bonds, worth 2 billion euros ($2.2 billion), have lost about a quarter of their value this week after an auditor of the Abu Dhabi company gave an “adverse opinion” on its 2018 financial statements.
Aabar was a subsidiary of International Petroleum Investment Co (IPIC), which is now part of Abu Dhabi state fund Mubadala Investment Co.
Its convertible Eurobonds due in 2020 and 2022 which, according to a JPMorgan note, were issued with expectation of support from the government of Abu Dhabi, have lost about 25 cents on the dollar each, Eikon Refinitiv data showed.
Aabar Investment’s bonds, worth 2 billion euros ($2.2 billion), have lost about a quarter of their value this week after an auditor of the Abu Dhabi company gave an “adverse opinion” on its 2018 financial statements.
Aabar was a subsidiary of International Petroleum Investment Co (IPIC), which is now part of Abu Dhabi state fund Mubadala Investment Co.
Its convertible Eurobonds due in 2020 and 2022 which, according to a JPMorgan note, were issued with expectation of support from the government of Abu Dhabi, have lost about 25 cents on the dollar each, Eikon Refinitiv data showed.