Oil gets boost as new Saudi minister commits to output cuts - Reuters:
Oil prices rose about 2% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that he would stick with his country’s policy of limiting crude output to support prices.
Prince Abdulaziz, son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), replaced Khalid al-Falih on Sunday.
“The weekend announcement of a change in leadership within the Saudi oil ministry was accompanied by strong suggestions that production restraint would continue until the market achieves a better balance,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Brent crude LCOc1 futures gained $1.05, or 1.7%, to settle at $62.59 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.33, or 2.4%, to settle at $57.85 a barrel.
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Monday 9 September 2019
Exclusive: #Saudi plans gradual listing at home for Aramco: sources - Reuters
Exclusive: Saudi plans gradual listing at home for Aramco: sources - Reuters:
Saudi Arabia plans to list 1% of state oil giant Saudi Aramco on the Riyadh stock exchange before the end of 2019 and another 1% in 2020, sources familiar with the matter told Reuters.
Crown Prince Mohammed bin Salman eventually wants around 5% of the company to be public as the centerpiece of his plan to diversify the Saudi economy away from oil, attract foreign investments and create jobs.
But rather than go straight for an initial public offering on an international stock market, the company is planning a gradual listing at home first, according to people familiar with the matter.
Saudi Arabia plans to list 1% of state oil giant Saudi Aramco on the Riyadh stock exchange before the end of 2019 and another 1% in 2020, sources familiar with the matter told Reuters.
Crown Prince Mohammed bin Salman eventually wants around 5% of the company to be public as the centerpiece of his plan to diversify the Saudi economy away from oil, attract foreign investments and create jobs.
But rather than go straight for an initial public offering on an international stock market, the company is planning a gradual listing at home first, according to people familiar with the matter.
Shale Slowdown Could Trigger Major New Oil Price Rally | OilPrice.com
Shale Slowdown Could Trigger Major New Oil Price Rally | OilPrice.com:
Two weeks ago, Oilprice.com published my notes which supported my belief that U.S. oil production has “hit a wall”. Last week, EIA confirmed my conclusion. The EIA’s 941 report shows that after U.S. crude oil production peaked in April at 12,123,000 barrels of oil per day (“BOPD”) production declined 8,000 BOPD in May and another 33,000 BOPD in June. Preliminary estimates say that when actuals are available for July, they will show an even larger decline.
These are not big declines, but with the active drilling rig count continuing to fall, I feel confident in telling you that U.S. oil production over the second half of this year is not going higher. When EIA reports actual production figures for July at the end of this month, they are surely going to be lower because of the well shut-ins due to Hurricane Berry in the Gulf of Mexico. Barring another GoM hurricane, oil production should rebound a bit in August and September. However, I don’t see anything that will return U.S. oil production to the peak set in April.
Two weeks ago, Oilprice.com published my notes which supported my belief that U.S. oil production has “hit a wall”. Last week, EIA confirmed my conclusion. The EIA’s 941 report shows that after U.S. crude oil production peaked in April at 12,123,000 barrels of oil per day (“BOPD”) production declined 8,000 BOPD in May and another 33,000 BOPD in June. Preliminary estimates say that when actuals are available for July, they will show an even larger decline.
These are not big declines, but with the active drilling rig count continuing to fall, I feel confident in telling you that U.S. oil production over the second half of this year is not going higher. When EIA reports actual production figures for July at the end of this month, they are surely going to be lower because of the well shut-ins due to Hurricane Berry in the Gulf of Mexico. Barring another GoM hurricane, oil production should rebound a bit in August and September. However, I don’t see anything that will return U.S. oil production to the peak set in April.
#Saudi Tadawul expects $3 bln additional inflows from FTSE inclusion - chairwoman - Reuters
Saudi Tadawul expects $3 bln additional inflows from FTSE inclusion - chairwoman - Reuters:
The Saudi Stock Exchange (Tadawul) expects additional passive funds’ inflows worth $3 billion from the remaining phases of inclusion in the FTSE Russell emerging market index starting in September, its chairwoman said.
The Middle East’s largest bourse is also expected to launch the first exchange-traded derivative product - an index futures contract based on the MSCI Tadawul 30 Index - in the fourth quarter of 2019, Sarah al-Suhaimi told Reuters.
The kingdom opened its stock market to foreign investors in 2015. It has since introduced a raft of reforms to make it attractive to foreign investors and issuers and to expand its institutional investor base, as part of an ambitious plan to diversify the economy away from hydrocarbons.
The Saudi Stock Exchange (Tadawul) expects additional passive funds’ inflows worth $3 billion from the remaining phases of inclusion in the FTSE Russell emerging market index starting in September, its chairwoman said.
The Middle East’s largest bourse is also expected to launch the first exchange-traded derivative product - an index futures contract based on the MSCI Tadawul 30 Index - in the fourth quarter of 2019, Sarah al-Suhaimi told Reuters.
The kingdom opened its stock market to foreign investors in 2015. It has since introduced a raft of reforms to make it attractive to foreign investors and issuers and to expand its institutional investor base, as part of an ambitious plan to diversify the economy away from hydrocarbons.
Sharp rise in number of investors dumping fossil fuel stocks | Financial Times
Sharp rise in number of investors dumping fossil fuel stocks | Financial Times:
The number of institutional investors committed to cutting fossil fuel stocks from their portfolios has risen from 180 in 2014 to more than 1,100 now, as activists turn up the heat on companies over climate change.
The number of fossil fuel divestments have risen dramatically since the 2015 Paris agreement on combating climate change. In 2014, investors with a total $52bn in assets under management had agreed to shed their fossil fuel holdings. Now that group represents more than $11tn in total assets, according to a report from 350.org, an environmental organisation advocating for divestment. More than 900 additional investors, including asset managers, pensions and insurers, have pledged to divest since the year before the Paris accord.
There has been a shift in the way people think about their investments’ impact, especially after the Paris agreement, said Ahmed Mokgopo, a divestment campaigner at 350.org and co-author of the report. “The divestment campaign started to question the moral legitimacy of the fossil fuel companies and we’ve definitely achieved that,” he said.
The number of institutional investors committed to cutting fossil fuel stocks from their portfolios has risen from 180 in 2014 to more than 1,100 now, as activists turn up the heat on companies over climate change.
The number of fossil fuel divestments have risen dramatically since the 2015 Paris agreement on combating climate change. In 2014, investors with a total $52bn in assets under management had agreed to shed their fossil fuel holdings. Now that group represents more than $11tn in total assets, according to a report from 350.org, an environmental organisation advocating for divestment. More than 900 additional investors, including asset managers, pensions and insurers, have pledged to divest since the year before the Paris accord.
There has been a shift in the way people think about their investments’ impact, especially after the Paris agreement, said Ahmed Mokgopo, a divestment campaigner at 350.org and co-author of the report. “The divestment campaign started to question the moral legitimacy of the fossil fuel companies and we’ve definitely achieved that,” he said.
Egypt to Approach Banks Soon for Bond Sale of Up to $7 Billion - Bloomberg
Egypt to Approach Banks Soon for Bond Sale of Up to $7 Billion - Bloomberg:
Egypt will approach investment banks “very soon” to advise on a plan to raise between $3 billion and $7 billion from international debt markets by June, a Finance Ministry official said.
The so-called request for proposal is being prepared and will be sent to banks imminently, Deputy Minister of Finance Khaled Abd Elrahman said Monday in an interview in Cairo. He didn’t give more specifics on the timeline.
The government is taking advantage of lower borrowing costs amid signs the world’s major central banks may cut interest rates or deliver a fresh salvo of monetary stimulus to shore up economic growth. The new offering could include Egypt’s first Panda, Samurai, sukuk and green bonds -- as well as euro- and dollar-denominated bonds.
Egypt will approach investment banks “very soon” to advise on a plan to raise between $3 billion and $7 billion from international debt markets by June, a Finance Ministry official said.
The so-called request for proposal is being prepared and will be sent to banks imminently, Deputy Minister of Finance Khaled Abd Elrahman said Monday in an interview in Cairo. He didn’t give more specifics on the timeline.
The government is taking advantage of lower borrowing costs amid signs the world’s major central banks may cut interest rates or deliver a fresh salvo of monetary stimulus to shore up economic growth. The new offering could include Egypt’s first Panda, Samurai, sukuk and green bonds -- as well as euro- and dollar-denominated bonds.
#SaudiArabia Said to Tap Kingdom’s Rich to Anchor Aramco IPO - Bloomberg
Saudi Arabia Said to Tap Kingdom’s Rich to Anchor Aramco IPO - Bloomberg:
Saudi Arabia held discussions with some of the kingdom’s wealthiest families about becoming anchor investors in Aramco’s mammoth stake sale, according to five people with knowledge of the talks.
Saudi officials made initial contact with some top business families on behalf of the oil giant, the people said, asking not to be identified because the information is private. Aramco may hold more formal meetings as early as next week after banks have been hired for the sale, three of the people said.
The kingdom is aiming to raise at least 1% to 2% of Aramco from these investors, according to one of the people. The amount each family invests will likely hinge on the company’s valuation, another person said.
Saudi Arabia held discussions with some of the kingdom’s wealthiest families about becoming anchor investors in Aramco’s mammoth stake sale, according to five people with knowledge of the talks.
Saudi officials made initial contact with some top business families on behalf of the oil giant, the people said, asking not to be identified because the information is private. Aramco may hold more formal meetings as early as next week after banks have been hired for the sale, three of the people said.
The kingdom is aiming to raise at least 1% to 2% of Aramco from these investors, according to one of the people. The amount each family invests will likely hinge on the company’s valuation, another person said.
Exclusive: #Qatar shortlists partners for North Field expansion, but says it may go it alone - Reuters
Exclusive: Qatar shortlists partners for North Field expansion, but says it may go it alone - Reuters:
Qatar has shortlisted international oil firms for a stake in its expanded North Field megaproject, Qatar Petroleum’s chief executive told Reuters, but may still choose to go it alone unless majors offer it significant value.
The expansion of tiny but gas-rich Qatar’s liquefied natural gas (LNG) facilities, already the world’s largest, is one of the energy sector’s most lucrative projects, and the world’s top oil and gas majors have been racing to secure a stake.
Invitations to bid were sent out last month and the result is due to be announced in the first quarter of 2020, Saad al-Kaabi, who is also minister of state for energy, said - if Qatar decides to go with partners at all.
Qatar has shortlisted international oil firms for a stake in its expanded North Field megaproject, Qatar Petroleum’s chief executive told Reuters, but may still choose to go it alone unless majors offer it significant value.
The expansion of tiny but gas-rich Qatar’s liquefied natural gas (LNG) facilities, already the world’s largest, is one of the energy sector’s most lucrative projects, and the world’s top oil and gas majors have been racing to secure a stake.
Invitations to bid were sent out last month and the result is due to be announced in the first quarter of 2020, Saad al-Kaabi, who is also minister of state for energy, said - if Qatar decides to go with partners at all.
New #Saudi energy minister urges producers to share burden
New Saudi energy minister urges producers to share burden:
Saudi Arabia’s new energy minister suggested on Monday that oil producers would need to share greater responsibility to balance the market in comments that marked his debut since being named to one of the most important positions in the kingdom the previous day.
Prince Abdulaziz bin Salman’s remarks indicate he will likely continue a similar policy to that of his predecessor, Khalid al-Falih, who led the deal to cut global production among major oil producers. Al-Falih had been in the role since 2016, but saw his portfolio and role diminished in the days leading up to his replacement as energy minister early Sunday.
Prince Abdulaziz was speaking in Abu Dhabi, the United Arab Emirates, at an energy conference ahead of a meeting later this week between OPEC member-states and other major oil producers like Russia to review an agreement to cut production.
Saudi Arabia’s new energy minister suggested on Monday that oil producers would need to share greater responsibility to balance the market in comments that marked his debut since being named to one of the most important positions in the kingdom the previous day.
Prince Abdulaziz bin Salman’s remarks indicate he will likely continue a similar policy to that of his predecessor, Khalid al-Falih, who led the deal to cut global production among major oil producers. Al-Falih had been in the role since 2016, but saw his portfolio and role diminished in the days leading up to his replacement as energy minister early Sunday.
Prince Abdulaziz was speaking in Abu Dhabi, the United Arab Emirates, at an energy conference ahead of a meeting later this week between OPEC member-states and other major oil producers like Russia to review an agreement to cut production.
ADNOC CEO: $11 trillion investment needed to meet future global energy demand - Reuters
ADNOC CEO: $11 trillion investment needed to meet future global energy demand - Reuters:
The chief executive of the Abu Dhabi National Oil Company (ADNOC) said that the long-term outlook for global energy demand was “robust” and that investment of $11 trillion in oil and gas was needed to keep up with projected demand.
United Arab Emirates minister of state and ADNOC Group CEO Sultan Ahmed Al Jaber also said that the state oil company was on track to raise its oil production capacity to 4 million barrels per day by 2020 and 5 million bpd by 2030.
The UAE, the third-largest oil producer in the Organization of the Petroleum Exporting Countries, behind Saudi Arabia and Iraq, pumps around 3 million barrels per day.
The chief executive of the Abu Dhabi National Oil Company (ADNOC) said that the long-term outlook for global energy demand was “robust” and that investment of $11 trillion in oil and gas was needed to keep up with projected demand.
United Arab Emirates minister of state and ADNOC Group CEO Sultan Ahmed Al Jaber also said that the state oil company was on track to raise its oil production capacity to 4 million barrels per day by 2020 and 5 million bpd by 2030.
The UAE, the third-largest oil producer in the Organization of the Petroleum Exporting Countries, behind Saudi Arabia and Iraq, pumps around 3 million barrels per day.
Oil gets boost as new #Saudi minister commits to output cuts - Reuters
Oil gets boost as new Saudi minister commits to output cuts - Reuters:
Oil prices rose on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that there would be no radical change in his country’s oil policy.
Prince Abdulaziz, son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, replaced Khalid al-Falih on Sunday.
Global benchmark Brent LCOc1 crude futures were up 69 cents at $62.23 a barrel by 1343 GMT, while U.S. West Texas Intermediate CLc1 gained 95 cents to $57.47.
Speaking on Monday, Prince Abdulaziz said the pillars of Saudi Arabia’s policy would not change and that a global deal to cut oil production by 1.2 million barrels per day would survive.
Oil prices rose on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that there would be no radical change in his country’s oil policy.
Prince Abdulaziz, son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, replaced Khalid al-Falih on Sunday.
Global benchmark Brent LCOc1 crude futures were up 69 cents at $62.23 a barrel by 1343 GMT, while U.S. West Texas Intermediate CLc1 gained 95 cents to $57.47.
Speaking on Monday, Prince Abdulaziz said the pillars of Saudi Arabia’s policy would not change and that a global deal to cut oil production by 1.2 million barrels per day would survive.
#SaudiArabia should consider raising VAT to 10%: IMF - Reuters
Saudi Arabia should consider raising VAT to 10%: IMF - Reuters:
Saudi Arabia should consider raising a value added tax (VAT) to 10% from the current 5%, the International Monetary Fund (IMF) said, stressing the importance for the world’s top oil exporter to improve its fiscal position amid lower crude prices.
In a report dated June and published on Monday, the IMF said that a tighter fiscal policy was needed, as the Saudi budget deficit is projected to widen.
Saudi Arabia, the Middle East’s largest economy, remains dominated by hydrocarbon revenues despite Crown Prince Mohammed bin Salman’s assertion that he aims to diversify.
Saudi Arabia should consider raising a value added tax (VAT) to 10% from the current 5%, the International Monetary Fund (IMF) said, stressing the importance for the world’s top oil exporter to improve its fiscal position amid lower crude prices.
In a report dated June and published on Monday, the IMF said that a tighter fiscal policy was needed, as the Saudi budget deficit is projected to widen.
Saudi Arabia, the Middle East’s largest economy, remains dominated by hydrocarbon revenues despite Crown Prince Mohammed bin Salman’s assertion that he aims to diversify.
MIDEAST STOCKS- #Saudi edges up on passive fund inflows, #AbuDhabi slips - Reuters
MIDEAST STOCKS-Saudi edges up on passive fund inflows, Abu Dhabi slips - Reuters:
Saudi Arabia's stock exchange recovered
from earlier losses to close a touch higher on Monday amid
expectations of billions of dollars more in passive fund
inflows, while Abu Dhabi fell for a third straight session.
The Saudi index inched up 0.1% with Al Rajhi Bank
rising 0.7% and Riyad Bank gaining 1.5%.
The Saudi Stock Exchange expects additional passive funds'
inflows worth $3 billion from the remaining phases of inclusion
in the FTSE Russell emerging market index starting in
September.
Three of an eventual five tranches of Saudi stocks have been
added to the FTSE emerging-market index so far this year.
Saudi Arabia's stock exchange recovered
from earlier losses to close a touch higher on Monday amid
expectations of billions of dollars more in passive fund
inflows, while Abu Dhabi fell for a third straight session.
The Saudi index inched up 0.1% with Al Rajhi Bank
rising 0.7% and Riyad Bank gaining 1.5%.
The Saudi Stock Exchange expects additional passive funds'
inflows worth $3 billion from the remaining phases of inclusion
in the FTSE Russell emerging market index starting in
September.
Three of an eventual five tranches of Saudi stocks have been
added to the FTSE emerging-market index so far this year.
#Saudi Arabian Energy Minister Sees No Radical Change in Oil Policy - Bloomberg
Saudi Arabian Energy Minister Sees No Radical Change in Oil Policy - Bloomberg:
Prince Abdulaziz bin Salman, Saudi Arabia's new energy minister and the son of Saudi King Salman, told reporters Monday that there will be no radical change in oil policy. Bloomberg's Manus Cranny reports on "Bloomberg Surveillance." (Source: Bloomberg)
Prince Abdulaziz bin Salman, Saudi Arabia's new energy minister and the son of Saudi King Salman, told reporters Monday that there will be no radical change in oil policy. Bloomberg's Manus Cranny reports on "Bloomberg Surveillance." (Source: Bloomberg)
Qatari Banks Ease Property Loan Repayments After GCC Standoff - Bloomberg
Qatari Banks Ease Property Loan Repayments After GCC Standoff - Bloomberg:
Qatar’s banks eased repayment terms on real-estate loans after the Saudi Arabia-led standoff hurt property prices, according to the chief executive officer of Doha Bank QSC.
“Cash flows have been redefined, debt has been restructured to see that debt-servicing capacity is not in danger for real estate owners,” Raghavan Seetharaman said in an interview with Bloomberg TV on Monday. “Banks are also cautious in terms of overall lending for real estate.”
The price of office space in Doha has fallen by 50% to 60% since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic relations and closed transport routes with the Persian Gulf nation in June 2017, according to Seetharaman. The four Arab countries accuse Qatar of funding Islamist terrorism, charges that Qatar denies.
Qatar’s banks eased repayment terms on real-estate loans after the Saudi Arabia-led standoff hurt property prices, according to the chief executive officer of Doha Bank QSC.
“Cash flows have been redefined, debt has been restructured to see that debt-servicing capacity is not in danger for real estate owners,” Raghavan Seetharaman said in an interview with Bloomberg TV on Monday. “Banks are also cautious in terms of overall lending for real estate.”
The price of office space in Doha has fallen by 50% to 60% since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic relations and closed transport routes with the Persian Gulf nation in June 2017, according to Seetharaman. The four Arab countries accuse Qatar of funding Islamist terrorism, charges that Qatar denies.
#Dubai Closer to Vanquishing Deflation But Economic Chill Sets In - Bloomberg
Dubai Closer to Vanquishing Deflation But Economic Chill Sets In - Bloomberg:
Dubai is closer to emerging from a prolonged bout of deflation even as business conditions turn worse.
Prices were “broadly unchanged” in August after output charges declined in each of the past 15 months, according to IHS Markit. At the same time, its Dubai Purchasing Managers’ Index dropped to its lowest level in more than three years, approaching the threshold of 50 that separates growth from contraction.
“Future output expectations dimmed but remained relatively strong,” David Owen, economist at IHS Markit, said in a report on Monday. “Selling prices were close to stabilization during August.”
Dubai is closer to emerging from a prolonged bout of deflation even as business conditions turn worse.
Prices were “broadly unchanged” in August after output charges declined in each of the past 15 months, according to IHS Markit. At the same time, its Dubai Purchasing Managers’ Index dropped to its lowest level in more than three years, approaching the threshold of 50 that separates growth from contraction.
“Future output expectations dimmed but remained relatively strong,” David Owen, economist at IHS Markit, said in a report on Monday. “Selling prices were close to stabilization during August.”
The road ahead for top MENA equities: What to expect in 2019 | ZAWYA MENA Edition
The road ahead for top MENA equities: What to expect in 2019 | ZAWYA MENA Edition:
The outlook for regional bourses differs from market to market following a strong start in 2019 across the board. While the UAE stock markets offer attractive opportunities, the rally on Saudi’s Tadawul is expected to fade following the second tranche of the MSCI Emerging Markets Index inclusion.
The aggregate stock market index of the six Gulf Cooperation Council (GCC) countries along with Egypt rose 53.98 percent in the first eight months of the year.
However in August, the same aggregate stock market index dropped 1.81 percent, tracking a retreat in global markets and oil prices.
The outlook for regional bourses differs from market to market following a strong start in 2019 across the board. While the UAE stock markets offer attractive opportunities, the rally on Saudi’s Tadawul is expected to fade following the second tranche of the MSCI Emerging Markets Index inclusion.
The aggregate stock market index of the six Gulf Cooperation Council (GCC) countries along with Egypt rose 53.98 percent in the first eight months of the year.
However in August, the same aggregate stock market index dropped 1.81 percent, tracking a retreat in global markets and oil prices.
OPEC+ committee may discuss new oil deal targets: TASS cites OPEC secretary general - Reuters
OPEC+ committee may discuss new oil deal targets: TASS cites OPEC secretary general - Reuters:
OPEC’s Joint Ministerial Monitoring Committee (JMMC) may discuss new metrics for the global oil cuts deal when it convenes in Abu-Dhabi later this week, TASS cited OPEC Secretary-General Mohammad Barkindo as saying on Monday.
The group, known as OPEC+, uses certain targets, or metrics, for its deal, such as 5-year average oil stocks in the developed countries.
“This is not on the agenda, but we can discuss it as we will discuss the market situation,” TASS cited Barkindo as saying about the targets.
OPEC’s Joint Ministerial Monitoring Committee (JMMC) may discuss new metrics for the global oil cuts deal when it convenes in Abu-Dhabi later this week, TASS cited OPEC Secretary-General Mohammad Barkindo as saying on Monday.
The group, known as OPEC+, uses certain targets, or metrics, for its deal, such as 5-year average oil stocks in the developed countries.
“This is not on the agenda, but we can discuss it as we will discuss the market situation,” TASS cited Barkindo as saying about the targets.
Oil rises as #Saudi signals OPEC cuts to continue under new minister - Reuters
Oil rises as Saudi signals OPEC cuts to continue under new minister - Reuters:
Oil rose on Monday on expectations that Saudi Arabia, the world’s largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman.
Prices climbed for a fourth day and were also supported by comments from the United Arab Emirates’ energy minister that OPEC and its allies are committed to balancing the crude market.
Global benchmark Brent LCOc1 was up 61 cents, or 1%, at $62.15 a barrel by 0649 GMT, while U.S. West Texas Intermediate CLc1 was up 65 cents, or 1.2%, at $57.17 a barrel.
Salman, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, was named minister on Sunday, replacing Khalid al-Falih. He is the son of Saudi King Salman. It is the first time the energy portfolio has been handed to a member of the royal family.
Oil rose on Monday on expectations that Saudi Arabia, the world’s largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman.
Prices climbed for a fourth day and were also supported by comments from the United Arab Emirates’ energy minister that OPEC and its allies are committed to balancing the crude market.
Global benchmark Brent LCOc1 was up 61 cents, or 1%, at $62.15 a barrel by 0649 GMT, while U.S. West Texas Intermediate CLc1 was up 65 cents, or 1.2%, at $57.17 a barrel.
Salman, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries, was named minister on Sunday, replacing Khalid al-Falih. He is the son of Saudi King Salman. It is the first time the energy portfolio has been handed to a member of the royal family.
#Saudi Aramco lines up banks, eyes local listing this year: sources - Reuters
Saudi Aramco lines up banks, eyes local listing this year: sources - Reuters:
Saudi Aramco is expected to give lead roles to JPMorgan, Morgan Stanley and National Commercial Bank for its planned initial public offering (IPO), a source familiar with the transaction said.
It will also likely add Citi, Goldman Sachs, HSBC and Samba Financial Bank to the list of banks managing the transaction, a first phase of which could take place locally before the end of this year, said the same source and two other sources familiar with the matter.
Aramco is preparing to sell up to a 5% stake by 2020-2021, in what could be the world’s biggest IPO. It is still meeting banks pitching for roles on the deal, and is expected to appoint the advisers in the coming days, two of the sources said.
Saudi Aramco is expected to give lead roles to JPMorgan, Morgan Stanley and National Commercial Bank for its planned initial public offering (IPO), a source familiar with the transaction said.
It will also likely add Citi, Goldman Sachs, HSBC and Samba Financial Bank to the list of banks managing the transaction, a first phase of which could take place locally before the end of this year, said the same source and two other sources familiar with the matter.
Aramco is preparing to sell up to a 5% stake by 2020-2021, in what could be the world’s biggest IPO. It is still meeting banks pitching for roles on the deal, and is expected to appoint the advisers in the coming days, two of the sources said.
MIDEAST STOCKS-Most of Gulf drops, with banks driving #Saudi shares lower - Reuters
MIDEAST STOCKS-Most of Gulf drops, with banks driving Saudi shares lower - Reuters:
Most stock markets in the Gulf fell on Monday, with Saudi Arabia declining for a third day as its banking shares dropped.
Saudi Arabia’s index was down 0.4%, as the kingdom’s largest lender National Commercial Bank fell 1.3% and Al Rajhi Bank shed 0.8%.
The Saudi market’s 2019 gains were as high as 20% in May, outperforming most regional markets ahead of the inclusion of Saudi stocks in the MSCI emerging markets index, which attracted billions of dollars from foreign investors. They have been net buyers every month this year.
However, the index has reduced its gains for the year to 2.4% as the U.S.-China trade dispute and regional geopolitics hurt investor sentiment.
Most stock markets in the Gulf fell on Monday, with Saudi Arabia declining for a third day as its banking shares dropped.
Saudi Arabia’s index was down 0.4%, as the kingdom’s largest lender National Commercial Bank fell 1.3% and Al Rajhi Bank shed 0.8%.
The Saudi market’s 2019 gains were as high as 20% in May, outperforming most regional markets ahead of the inclusion of Saudi stocks in the MSCI emerging markets index, which attracted billions of dollars from foreign investors. They have been net buyers every month this year.
However, the index has reduced its gains for the year to 2.4% as the U.S.-China trade dispute and regional geopolitics hurt investor sentiment.