Oil Plummets as Trump Signals Thaw in Iranian Sanctions Deadlock - Bloomberg:
Oil dropped to a one-week low as U.S. President Donald Trump considered easing sanctions on Iran that severely restricted the OPEC member’s ability to export crude.
Futures declined more than 2% in New York and London on Wednesday. Trump is preparing to meet with Iranian President Hassan Rouhani later this month, according to people familiar with the matter. Such talks would be unprecedented for an administration that made isolating the Islamic Republic a cornerstone policy.
Friction within the White House roiled oil markets for a second straight day as foreign-policy clashes boiled over into public view and the president signaled a possible rapprochement with Iran.
Wednesday, 11 September 2019
Oil Services Should Get Ready for a Recession, Rystad Warns - Bloomberg
Oil Services Should Get Ready for a Recession, Rystad Warns - Bloomberg:
The oil services sector will contract in 2020 as producers cut spending in response to lower crude prices, ending three years of growth, according to Rystad Energy.
The market will shrink 4% to $621 billion next year from $647 billion in 2019, the research company said Wednesday in a statement.
The outlook is based on a Brent oil price of $60 a barrel, close to where it’s currently trading. That’s in “stark contrast” to Rystad’s previous view, which based on an estimate for about $70 oil in 2020 and saw services expanding 2%, said Audun Martinsen, its head of oilfield services research.
The oil services sector will contract in 2020 as producers cut spending in response to lower crude prices, ending three years of growth, according to Rystad Energy.
The market will shrink 4% to $621 billion next year from $647 billion in 2019, the research company said Wednesday in a statement.
The outlook is based on a Brent oil price of $60 a barrel, close to where it’s currently trading. That’s in “stark contrast” to Rystad’s previous view, which based on an estimate for about $70 oil in 2020 and saw services expanding 2%, said Audun Martinsen, its head of oilfield services research.
Russia, #Saudi agree everyone should implement OPEC+ deal: Ifax cites Novak - Reuters
Russia, Saudi agree everyone should implement OPEC+ deal: Ifax cites Novak - Reuters:
Russian Energy Minister Alexander Novak said on Wednesday that he and Saudi Arabia’s new energy minister agreed that all parties should implement the global oil output deal between OPEC and its allies, Interfax news agency reported.
Novak traveled to Saudi Arabia on Tuesday and met the new Saudi energy minister, Prince Abdulaziz bin Salman.
Russian Energy Minister Alexander Novak said on Wednesday that he and Saudi Arabia’s new energy minister agreed that all parties should implement the global oil output deal between OPEC and its allies, Interfax news agency reported.
Novak traveled to Saudi Arabia on Tuesday and met the new Saudi energy minister, Prince Abdulaziz bin Salman.
MIDEAST STOCKS- #Saudi stock index slips to 8-month low amid slowing economy - Reuters
MIDEAST STOCKS-Saudi stock index slips to 8-month low amid slowing economy - Reuters:
Saudi Arabia's stock market fell to an
eight-month low on Wednesday as a slowing economy prompted
investors to pull most shares down from lofty valuations.
The Saudi index closed 1.4% down with 163 of its
stocks falling and 19 rising.
Blue-chip stocks were the biggest drag on the index. Lenders
National Commercial Bank and Al Rajhi Bank
shed 2.7% and 1.2% respectively, while petrochemical maker Saudi
Basic Industries lost 2.2%.
The index fell as much as 2.5% during the session, wiping
out all its gains this year before clawing back some losses to
close just 0.4% up year-to-date.
Saudi Arabia's stock market fell to an
eight-month low on Wednesday as a slowing economy prompted
investors to pull most shares down from lofty valuations.
The Saudi index closed 1.4% down with 163 of its
stocks falling and 19 rising.
Blue-chip stocks were the biggest drag on the index. Lenders
National Commercial Bank and Al Rajhi Bank
shed 2.7% and 1.2% respectively, while petrochemical maker Saudi
Basic Industries lost 2.2%.
The index fell as much as 2.5% during the session, wiping
out all its gains this year before clawing back some losses to
close just 0.4% up year-to-date.
RPT-COLUMN-'We need to talk about Donald' - The elephant in crude oil's uncertain world: Russell - Reuters
RPT-COLUMN-'We need to talk about Donald' - The elephant in crude oil's uncertain world: Russell - Reuters:
“Uncertainty” was the buzzword at the crude oil industry’s annual gathering in Asia, but virtually everybody was reluctant to talk about the root cause behind the sector’s discomfort - U.S. President Donald Trump.
Speaker after speaker at this week’s Asia Pacific Petroleum Conference (APPEC) highlighted the challenges to the crude oil industry, from supply issues around Iran and Venezuela to the mounting risk of global economic slowdown amid ongoing and escalating trade disputes.
But even in private conversations at the myriad of networking events, hardly anybody was keen to talk about what all the risks to the oil sector have in common, namely the mercurial U.S. president.
“Uncertainty” was the buzzword at the crude oil industry’s annual gathering in Asia, but virtually everybody was reluctant to talk about the root cause behind the sector’s discomfort - U.S. President Donald Trump.
Speaker after speaker at this week’s Asia Pacific Petroleum Conference (APPEC) highlighted the challenges to the crude oil industry, from supply issues around Iran and Venezuela to the mounting risk of global economic slowdown amid ongoing and escalating trade disputes.
But even in private conversations at the myriad of networking events, hardly anybody was keen to talk about what all the risks to the oil sector have in common, namely the mercurial U.S. president.
Aramco hires nine banks for IPO top roles: sources - Reuters
Aramco hires nine banks for IPO top roles: sources - Reuters:
Saudi Aramco has hired nine banks as joint global coordinators to lead its planned initial public offering (IPO), slated to be the world’s largest, two sources familiar with the matter told Reuters on Wednesday.
The mandates have been heavily sought by the world’s largest investment banks for a transaction which, according to Saudi Crown Prince Mohammed bin Salman’s initial plans, could generate around $100 billion for Saudi Arabia’s state coffers.
The kingdom plans to list 1% of the state oil giant on the Riyadh stock exchange before the end of this year and another 1% in 2020, sources told Reuters this week, as initial steps ahead of a public sale of around 5% of Aramco.
Saudi Aramco has hired nine banks as joint global coordinators to lead its planned initial public offering (IPO), slated to be the world’s largest, two sources familiar with the matter told Reuters on Wednesday.
The mandates have been heavily sought by the world’s largest investment banks for a transaction which, according to Saudi Crown Prince Mohammed bin Salman’s initial plans, could generate around $100 billion for Saudi Arabia’s state coffers.
The kingdom plans to list 1% of the state oil giant on the Riyadh stock exchange before the end of this year and another 1% in 2020, sources told Reuters this week, as initial steps ahead of a public sale of around 5% of Aramco.
Aramco’s Long-Awaited IPO May Be Kryptonite to #Saudi Stocks - Bloomberg
Aramco’s Long-Awaited IPO May Be Kryptonite to Saudi Stocks - Bloomberg:
It’s been at least three years in the making, but it’s just dawned on investors what a share sale by Saudi Aramco would do to the Arab world’s biggest stock exchange.
The Tadawul All Share Index almost wiped out this year’s gains after the kingdom’s efforts to line up banks for the sale spurred market players to realize the initial public offering really is happening. About 90% of the index’s stocks fell.
“All local index constituencies should suffer outflows,” said Slava Breusov, a senior analyst with the emerging and frontier equities team at AllianceBernstein in New York.
The IPO is part of Crown Prince Mohammed bin Salman’s efforts to modernize the economy and diversify the nation’s revenue from oil, including turning the bourse into a gateway for foreign investment. The kingdom spent years relaxing rules for foreign traders and aligning its market with global peers, culminating in its inclusion in MSCI Inc. and FTSE Russell’s developing-nations equity benchmarks.
It’s been at least three years in the making, but it’s just dawned on investors what a share sale by Saudi Aramco would do to the Arab world’s biggest stock exchange.
The Tadawul All Share Index almost wiped out this year’s gains after the kingdom’s efforts to line up banks for the sale spurred market players to realize the initial public offering really is happening. About 90% of the index’s stocks fell.
“All local index constituencies should suffer outflows,” said Slava Breusov, a senior analyst with the emerging and frontier equities team at AllianceBernstein in New York.
The IPO is part of Crown Prince Mohammed bin Salman’s efforts to modernize the economy and diversify the nation’s revenue from oil, including turning the bourse into a gateway for foreign investment. The kingdom spent years relaxing rules for foreign traders and aligning its market with global peers, culminating in its inclusion in MSCI Inc. and FTSE Russell’s developing-nations equity benchmarks.
Aramco Is Said to Pick BofA, Goldman, JPMorgan for Top IPO Roles - Bloomberg
Aramco Is Said to Pick BofA, Goldman, JPMorgan for Top IPO Roles - Bloomberg:
Saudi Aramco has picked banks including Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. for top roles on its planned initial public offering following intense lobbying by some of the world’s top dealmakers, people with knowledge of the matter said.
Aramco started telling some banks of their selection Tuesday, the people said, asking not to be identified because the information is private. It plans to add more joint global coordinators to the deal, according to the people.
The energy giant is considering first selling around a 1% stake through a listing on the Saudi stock exchange, with the possibility of selling another 1% on the local bourse at a later date, one person said. Aramco, officially known as Saudi Arabian Oil Co., didn’t immediately respond to a request for comment.
Saudi Aramco has picked banks including Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. for top roles on its planned initial public offering following intense lobbying by some of the world’s top dealmakers, people with knowledge of the matter said.
Aramco started telling some banks of their selection Tuesday, the people said, asking not to be identified because the information is private. It plans to add more joint global coordinators to the deal, according to the people.
The energy giant is considering first selling around a 1% stake through a listing on the Saudi stock exchange, with the possibility of selling another 1% on the local bourse at a later date, one person said. Aramco, officially known as Saudi Arabian Oil Co., didn’t immediately respond to a request for comment.
Another Day, Another Miserable Oil-Demand Forecast: Chart - Bloomberg
Another Day, Another Miserable Oil-Demand Forecast: Chart - Bloomberg:
All is not well in the global oil market, and the U.S. Energy Information Administration is the latest big forecasting agency to say so. The EIA said in its Short-Term Energy Outlook on Tuesday that 2019 oil demand will come in at around 900,000 barrels a day, down sharply from the 1.55 million it was anticipating back in January. The downward revision, the eighth in a row, makes the EIA the first of the three major agencies to cut growth below 1 million barrels a day.
All is not well in the global oil market, and the U.S. Energy Information Administration is the latest big forecasting agency to say so. The EIA said in its Short-Term Energy Outlook on Tuesday that 2019 oil demand will come in at around 900,000 barrels a day, down sharply from the 1.55 million it was anticipating back in January. The downward revision, the eighth in a row, makes the EIA the first of the three major agencies to cut growth below 1 million barrels a day.
Investors unwind bearish bets as optimism grows on trade and stimulus - Reuters
Investors unwind bearish bets as optimism grows on trade and stimulus - Reuters:
World stocks rose for the sixth straight day on Wednesday and bond prices fell as investors unwound safety bets, encouraged by hopes of a resolution to the Sino-U.S. trade standoff and signs Europe may be preparing to ease budget spending rules.
Higher-risk assets such as equities and emerging markets rose almost across the board at the expense of safe-haven plays such as gold and bonds, as political risk appeared to ease in Britain, Italy and Hong Kong.
U.S. President Donald Trump’s firing of hawkish national security adviser John Bolton was also seen as a positive, as it could potentially lead to an easing of tensions with Iran.
World stocks rose for the sixth straight day on Wednesday and bond prices fell as investors unwound safety bets, encouraged by hopes of a resolution to the Sino-U.S. trade standoff and signs Europe may be preparing to ease budget spending rules.
Higher-risk assets such as equities and emerging markets rose almost across the board at the expense of safe-haven plays such as gold and bonds, as political risk appeared to ease in Britain, Italy and Hong Kong.
U.S. President Donald Trump’s firing of hawkish national security adviser John Bolton was also seen as a positive, as it could potentially lead to an easing of tensions with Iran.
Large Aramco IPO to hit rival energy firms: Woodside CEO - Reuters
Large Aramco IPO to hit rival energy firms: Woodside CEO - Reuters:
A large share sale of Saudi oil giant Aramco will suck out capital from rival energy firms as investors will reallocate funds within their shrinking pot for fossil fuel stocks, according to the chief executive of Australia’s Woodside.
Peter Coleman said the challenges of Aramco’s initial public offering were becoming an important discussion topic among investment bankers as the kingdom has revived its idea of raising up to $100 billion via a share listing of its energy giant.
“What’s your alternative for investment? Is it a U.S. treasury bond or a mid-cap (oil and gas) player in the United States?” Coleman, who heads Australia’s largest independent oil and gas firm, said in an interview with Reuters on the sidelines of the World Energy Congress in Abu Dhabi.
A large share sale of Saudi oil giant Aramco will suck out capital from rival energy firms as investors will reallocate funds within their shrinking pot for fossil fuel stocks, according to the chief executive of Australia’s Woodside.
Peter Coleman said the challenges of Aramco’s initial public offering were becoming an important discussion topic among investment bankers as the kingdom has revived its idea of raising up to $100 billion via a share listing of its energy giant.
“What’s your alternative for investment? Is it a U.S. treasury bond or a mid-cap (oil and gas) player in the United States?” Coleman, who heads Australia’s largest independent oil and gas firm, said in an interview with Reuters on the sidelines of the World Energy Congress in Abu Dhabi.
OPEC cuts 2020 oil demand forecast, urges effort to avert new glut - Reuters
OPEC cuts 2020 oil demand forecast, urges effort to avert new glut - Reuters:
OPEC on Wednesday cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude.
In a monthly report, the Organization of the Petroleum Exporting Countries said oil demand worldwide would expand by 1.08 million barrels per day, 60,000 bpd less than previously estimated, and indicated the market would be in surplus.
The weaker outlook amid a U.S.-China trade war and Brexit could press the case for OPEC and its allies to maintain or adjust their policy of cutting output. Iraq said ministers would on Thursday discuss whether deeper cuts were needed.
OPEC, in the report, lowered its forecast for world economic growth in 2020 to 3.1% from 3.2% and said next year’s increase in oil demand would be outpaced by “strong growth” in supply from rival producers such as the United States.
OPEC on Wednesday cut its forecast for growth in world oil demand in 2020 due to an economic slowdown, an outlook the producer group said highlighted the need for ongoing efforts to prevent a new glut of crude.
In a monthly report, the Organization of the Petroleum Exporting Countries said oil demand worldwide would expand by 1.08 million barrels per day, 60,000 bpd less than previously estimated, and indicated the market would be in surplus.
The weaker outlook amid a U.S.-China trade war and Brexit could press the case for OPEC and its allies to maintain or adjust their policy of cutting output. Iraq said ministers would on Thursday discuss whether deeper cuts were needed.
OPEC, in the report, lowered its forecast for world economic growth in 2020 to 3.1% from 3.2% and said next year’s increase in oil demand would be outpaced by “strong growth” in supply from rival producers such as the United States.
MIDEAST STOCKS- #Saudi falls to eight-month low on wide sell-off, other Gulf markets slip - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi falls to eight-month low on wide sell-off, other Gulf markets slip - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market fell to an eight-month low on Wednesday as most shares turned red, wiping out all its gains this year.
Other major Gulf markets also dropped.
The Saudi index dropped 1.8% with 168 stocks falling and just six stocks rising.
Market heavyweight Al Rajhi Bank declined 2% and petrochemical maker Saudi Basic Industries shed 3%.
Saudi Arabia’s stock market fell to an eight-month low on Wednesday as most shares turned red, wiping out all its gains this year.
Other major Gulf markets also dropped.
The Saudi index dropped 1.8% with 168 stocks falling and just six stocks rising.
Market heavyweight Al Rajhi Bank declined 2% and petrochemical maker Saudi Basic Industries shed 3%.
Trafigura Sees Oil Slide Near $50 Prompting Deeper OPEC Cuts - Bloomberg
Trafigura Sees Oil Slide Near $50 Prompting Deeper OPEC Cuts - Bloomberg:
Brent crude could slump toward a level it hasn’t seen since December 2018 prompting deeper output cuts from OPEC and its allies, according to one of world’s biggest oil traders.
Macroeconomic headwinds and rising supply will chart a course toward $50 a barrel for the global benchmark over the next six months, which is about 20% lower than where it’s currently, Ben Luckock, Trafigura Beheer BV’s co-head of global oil trading, said during an interview in Singapore. It’s likely to return to a range of $70 to $75 in the medium to long-term, a level cheap enough for consumers but valuable enough to make producers money, he said.
But for the next six months at least, prices are likely to drift lower before spurring OPEC+ to cut further and U.S. shale drillers to reduce spending, slowing down one of the fastest-growing sources of output, he said. Brent crude added 0.8% to $62.90 a barrel as of 12:34 p.m. Singapore time. It has averaged about $65 this year, and was last below $51 in late December.
Brent crude could slump toward a level it hasn’t seen since December 2018 prompting deeper output cuts from OPEC and its allies, according to one of world’s biggest oil traders.
Macroeconomic headwinds and rising supply will chart a course toward $50 a barrel for the global benchmark over the next six months, which is about 20% lower than where it’s currently, Ben Luckock, Trafigura Beheer BV’s co-head of global oil trading, said during an interview in Singapore. It’s likely to return to a range of $70 to $75 in the medium to long-term, a level cheap enough for consumers but valuable enough to make producers money, he said.
But for the next six months at least, prices are likely to drift lower before spurring OPEC+ to cut further and U.S. shale drillers to reduce spending, slowing down one of the fastest-growing sources of output, he said. Brent crude added 0.8% to $62.90 a barrel as of 12:34 p.m. Singapore time. It has averaged about $65 this year, and was last below $51 in late December.
Anita Yadav, vice-chairman at Gulf Bond and Sukuk Association, on Oil, Bonds, Egypt Economy - Bloomberg
Anita Yadav, vice-chairman at Gulf Bond and Sukuk Association, on Oil, Bonds, Egypt Economy - Bloomberg:
Anita Yadav, vice-chairman at the Gulf Bond and Sukuk Association, talks about the end of John Bolton’s fractious tenure as U.S. President Donald Trump's national security adviser, OPEC's policy, Saudi Arabia's budget and debt issuance. She also discusses the Gulf region's bond markets, Egypt's economy and monetary policy. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Anita Yadav, vice-chairman at the Gulf Bond and Sukuk Association, talks about the end of John Bolton’s fractious tenure as U.S. President Donald Trump's national security adviser, OPEC's policy, Saudi Arabia's budget and debt issuance. She also discusses the Gulf region's bond markets, Egypt's economy and monetary policy. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#UAE's Masdar invests $86mln in UK's green technology fund | ZAWYA MENA Edition
UAE's Masdar invests $86mln in UK's green technology fund | ZAWYA MENA Edition:
Abu Dhabi Future Energy Company (Masdar) has invested £70 million ($86.48 million) in a new green technology fund in the UK.
The UK treasury has launched a £400 million fund, CIIF, to bolster Britain’s electric vehicle charging infrastructure, with the first £70 million provided by government and UAE renewables investor Masdar - allocated for 3000 charge points, Masdar said in a statement.
“This more than doubles the number across the UK to 5000. The fund is managed by London-based Zouk Capital,” the statement added.
Abu Dhabi Future Energy Company (Masdar) has invested £70 million ($86.48 million) in a new green technology fund in the UK.
The UK treasury has launched a £400 million fund, CIIF, to bolster Britain’s electric vehicle charging infrastructure, with the first £70 million provided by government and UAE renewables investor Masdar - allocated for 3000 charge points, Masdar said in a statement.
“This more than doubles the number across the UK to 5000. The fund is managed by London-based Zouk Capital,” the statement added.
#Dubai weighs comeback to global debt markets - sources - Reuters
Dubai weighs comeback to global debt markets - sources - Reuters:
The government of Dubai has held talks with banks about a potential issue of U.S. dollar-denominated bonds, two sources familiar with the matter said, in what would be its first international debt sale since 2013.
A potential deal is likely to see investors pour money into the notes, as global buyers seek high-yielding assets in a low-rate environment. The Dubai government had raised $1.25 billion in 2013 through Islamic and conventional bonds.
Such a deal would come at a delicate time for Dubai, where the economy last year grew at the slowest pace since a contraction in 2009, when it was hobbled by a debt crisis.
The government of Dubai has held talks with banks about a potential issue of U.S. dollar-denominated bonds, two sources familiar with the matter said, in what would be its first international debt sale since 2013.
A potential deal is likely to see investors pour money into the notes, as global buyers seek high-yielding assets in a low-rate environment. The Dubai government had raised $1.25 billion in 2013 through Islamic and conventional bonds.
Such a deal would come at a delicate time for Dubai, where the economy last year grew at the slowest pace since a contraction in 2009, when it was hobbled by a debt crisis.
RPT-COLUMN-Policy options for #SaudiArabia’s new energy minister: Kemp - Reuters
RPT-COLUMN-Policy options for Saudi Arabia’s new energy minister: Kemp - Reuters:
Prince Abdulaziz bin Salman is the first member of the Saudi royal family to be appointed to the all-important role of energy minister but he faces the same constraints as the commoners who held the position before him.
The new minister needs higher oil prices to increase export earnings and help pay for the government’s ambitious social and economic transformation programme, known as Vision 2030.
But each time the kingdom restrains its own production to lift prices, it encourages a new surge in output from countries outside OPEC, especially U.S. shale firms.
Prince Abdulaziz bin Salman is the first member of the Saudi royal family to be appointed to the all-important role of energy minister but he faces the same constraints as the commoners who held the position before him.
The new minister needs higher oil prices to increase export earnings and help pay for the government’s ambitious social and economic transformation programme, known as Vision 2030.
But each time the kingdom restrains its own production to lift prices, it encourages a new surge in output from countries outside OPEC, especially U.S. shale firms.
UPDATE 1-Gulf Marine Services delays results as talks with lender continue - Reuters
UPDATE 1-Gulf Marine Services delays results as talks with lender continue - Reuters:
Shares in Gulf Marine Services were expected to fall about 10% in early trading on Wednesday after the oilfield industry contractor said the publication of its first-half results would be delayed.
Gulf Marine, which was expected to report results on Wednesday, said the delay in finalising its accounts was because of the ongoing talks with a lender about continued access to one of its working capital facilities, which provides short-term liquidity.
The company now expects to publish results before Sept.30.
Shares in Gulf Marine Services were expected to fall about 10% in early trading on Wednesday after the oilfield industry contractor said the publication of its first-half results would be delayed.
Gulf Marine, which was expected to report results on Wednesday, said the delay in finalising its accounts was because of the ongoing talks with a lender about continued access to one of its working capital facilities, which provides short-term liquidity.
The company now expects to publish results before Sept.30.
Oil climbs after bigger-than-expected fall in U.S. stockpiles - Reuters
Oil climbs after bigger-than-expected fall in U.S. stockpiles - Reuters:
Oil prices traded higher on Wednesday after an industry report said U.S. crude stockpiles fell last week by more than twice the amount that analysts in a Reuters poll had forecast.
Brent crude futures LCOc1 rose 40 cents, or 0.6%, to $62.78 a barrel by 0643 GMT, while West Texas Intermediate (WTI) futures CLc1 were up 37 cents, or 0.6%, to $57.77 a barrel.
Prices had ended lower on Tuesday, squeezed by speculation of sanctions-hit Iranian crude returning to the market following U.S. President Donald Trump’s move to fire national security adviser John Bolton, a noted Iran policy hawk.
Oil prices traded higher on Wednesday after an industry report said U.S. crude stockpiles fell last week by more than twice the amount that analysts in a Reuters poll had forecast.
Brent crude futures LCOc1 rose 40 cents, or 0.6%, to $62.78 a barrel by 0643 GMT, while West Texas Intermediate (WTI) futures CLc1 were up 37 cents, or 0.6%, to $57.77 a barrel.
Prices had ended lower on Tuesday, squeezed by speculation of sanctions-hit Iranian crude returning to the market following U.S. President Donald Trump’s move to fire national security adviser John Bolton, a noted Iran policy hawk.