Oil jumps nearly 15% in record trading after attack on Saudi facilities - Reuters:
Oil ended nearly 15% higher on Monday, with Brent logging its biggest jump in over 30 years and a record trading volumes, after an attack on Saudi Arabian crude facilities cut the kingdom’s production in half and intensified concerns of retaliation in the Middle East.
Brent crude futures settled at $69.02 a barrel, rising $8.80, or 14.6%, its largest one-day percentage gain since at least 1988.
U.S. West Texas Intermediate (WTI) futures ended at $62.90 a barrel, soaring $8.05, or 14.7% - the biggest one-day percentage gain since December 2008.
Trades also ramped up, with Brent futures surpassing 2 million lots, an all-time daily volume record, Intercontinental Exchange spokeswoman Rebecca Mitchell said.
Monday, 16 September 2019
Don't expect oil shocks to move the Fed - Reuters
Don't expect oil shocks to move the Fed - Reuters:
The weekend bombings of Saudi Arabia’s main oil refinery have already sparked U.S. President Donald Trump to pressure the Federal Reserve anew to lower rates.
The Fed should enact a “big interest rate drop, stimulus,” at its meeting this week, which ends Wednesday, Trump said on Twitter on Monday.
However historical precedent and the United States’ changing energy diet suggest the Fed is likely to stick with an expected quarter of a point interest rate cut and go no further.
The Fed has responded to past crisis events including the September 2001 terrorist attacks and the Black Friday market collapse in the 1980s. But it acted then to address trouble in financial markets that risked creating broader problems.
The weekend bombings of Saudi Arabia’s main oil refinery have already sparked U.S. President Donald Trump to pressure the Federal Reserve anew to lower rates.
The Fed should enact a “big interest rate drop, stimulus,” at its meeting this week, which ends Wednesday, Trump said on Twitter on Monday.
However historical precedent and the United States’ changing energy diet suggest the Fed is likely to stick with an expected quarter of a point interest rate cut and go no further.
The Fed has responded to past crisis events including the September 2001 terrorist attacks and the Black Friday market collapse in the 1980s. But it acted then to address trouble in financial markets that risked creating broader problems.
#Saudi prince wins full control of Sheffield United | Financial Times
Saudi prince wins full control of Sheffield United | Financial Times:
A Saudi prince has secured full control of Sheffield United after the UK High Court ruled in his favour to end a two-year legal battle over control of the Premier League club.
Prince Abdullah Bin Mosaad Bin Abdulaziz al-Saud, a grandson of the late King Abdulaziz, has been locked in a dispute over the Yorkshire club’s ownership with Kevin McCabe, an English property developer and boyhood fan.
On Monday the High Court ruled Mr McCabe must sell his family’s 50 per cent stake to Prince Abdullah for £5m, in line with an agreement made in 2013 when the Saudi businessman first invested in the club.
A Saudi prince has secured full control of Sheffield United after the UK High Court ruled in his favour to end a two-year legal battle over control of the Premier League club.
Prince Abdullah Bin Mosaad Bin Abdulaziz al-Saud, a grandson of the late King Abdulaziz, has been locked in a dispute over the Yorkshire club’s ownership with Kevin McCabe, an English property developer and boyhood fan.
On Monday the High Court ruled Mr McCabe must sell his family’s 50 per cent stake to Prince Abdullah for £5m, in line with an agreement made in 2013 when the Saudi businessman first invested in the club.
#Saudi Wealth and Weaponry Still Can’t Guarantee Oil’s Protection - Bloomberg
Saudi Wealth and Weaponry Still Can’t Guarantee Oil’s Protection - Bloomberg:
How could Saudi Arabia, a country with the world’s third-largest military budget and six battalions of U.S.-built Patriot missile-defense systems, fail to defend the beating heart of the oil industry on which the kingdom depends?
That question lies at the heart of responses to Saturday’s attack on Abqaiq, which cut Saudi oil production by half, and is critical to any assessment of whether investors will have to permanently factor higher political risk assumptions into the price of oil.
As audacious as the strike was, it was only the latest in a series and should have come as no surprise. The effectiveness of the Saudi military machine has long been questioned, despite spending $83 billion on defense last year, compared to $45 billion for Russia and $20 billion for regional rival Iran. The kingdom’s formidably equipped air force has been bombing Iran-backed Houthi rebels in neighboring Yemen since 2015, but has so far failed to tip the civil war in favor of Saudi allies.
How could Saudi Arabia, a country with the world’s third-largest military budget and six battalions of U.S.-built Patriot missile-defense systems, fail to defend the beating heart of the oil industry on which the kingdom depends?
That question lies at the heart of responses to Saturday’s attack on Abqaiq, which cut Saudi oil production by half, and is critical to any assessment of whether investors will have to permanently factor higher political risk assumptions into the price of oil.
As audacious as the strike was, it was only the latest in a series and should have come as no surprise. The effectiveness of the Saudi military machine has long been questioned, despite spending $83 billion on defense last year, compared to $45 billion for Russia and $20 billion for regional rival Iran. The kingdom’s formidably equipped air force has been bombing Iran-backed Houthi rebels in neighboring Yemen since 2015, but has so far failed to tip the civil war in favor of Saudi allies.
#Saudi Aramco Sticks With IPO Plans After Strikes on Key Oil Facilities - Bloomberg
Saudi Aramco Sticks With IPO Plans After Strikes on Key Oil Facilities - Bloomberg:
Saudi Aramco is pressing on with plans to pitch its initial public offering to analysts despite heightened investor fears following strikes on key oil facilities. Bloomberg's Sonali Basak reports and Marc Chandler, managing partner at Bannockburn Global Forex joins the conversation on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
Saudi Aramco is pressing on with plans to pitch its initial public offering to analysts despite heightened investor fears following strikes on key oil facilities. Bloomberg's Sonali Basak reports and Marc Chandler, managing partner at Bannockburn Global Forex joins the conversation on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
Donald Trump Is Cornered by #SaudiArabia Oil Attack - Bloomberg
Donald Trump Is Cornered by Saudi Arabia Oil Attack - Bloomberg:
A small squadron of drones — and possibly cruise missiles — penetrated Saudi Arabia’s air defenses on Saturday, laying waste to a significant, valuable portion of two of the world’s most essential oil processing facilities. Amid worries about the impact of the strikes on global oil markets (half the kingdom’s oil output was affected) and fears about broader military confrontations upending a region perennially vexed by crossed swords, ancient religious rifts, geopolitical maneuvering and greed, facts and conjecture began jockeying for attention.
Houthi rebels fighting the Saudis in a brutal civil war in Yemen took credit for the strikes. Iran backs the Houthis, and U.S. Secretary of State Mike Pompeo took to Twitter on Saturday afternoon to blame Iran for “an unprecedented attack on the world’s energy supply” and to assert that there “is no evidence the attacks came from Yemen.” Pompeo didn’t specify where the strikes actually originated. The Saudis, backed by the U.S. in Yemen, have yet to pin the strikes on Iran, while the Iranians themselves deny any involvement. On Sunday, the U.S government produced photos that officials said indicated that the drones had to have flown into S
A small squadron of drones — and possibly cruise missiles — penetrated Saudi Arabia’s air defenses on Saturday, laying waste to a significant, valuable portion of two of the world’s most essential oil processing facilities. Amid worries about the impact of the strikes on global oil markets (half the kingdom’s oil output was affected) and fears about broader military confrontations upending a region perennially vexed by crossed swords, ancient religious rifts, geopolitical maneuvering and greed, facts and conjecture began jockeying for attention.
Houthi rebels fighting the Saudis in a brutal civil war in Yemen took credit for the strikes. Iran backs the Houthis, and U.S. Secretary of State Mike Pompeo took to Twitter on Saturday afternoon to blame Iran for “an unprecedented attack on the world’s energy supply” and to assert that there “is no evidence the attacks came from Yemen.” Pompeo didn’t specify where the strikes actually originated. The Saudis, backed by the U.S. in Yemen, have yet to pin the strikes on Iran, while the Iranians themselves deny any involvement. On Sunday, the U.S government produced photos that officials said indicated that the drones had to have flown into S
‘I’m a Scapegoat,’ Says Former CEO of #Dubai Construction Firm - Bloomberg
‘I’m a Scapegoat,’ Says Former CEO of Dubai Construction Firm - Bloomberg:
The former chief executive officer of Drake & Scull International PJSC said the company’s accusations of financial violations against him are an attempt to find a “scapegoat” for rising losses.
Khaldoun Tabari said the Dubai-based contractor has filed 15 complaints against him to the public prosecutor last year. He said the allegations prompted authorities in the United Arab Emirates to order banks to freeze his bank accounts in June 2018. He denies any wrongdoing.
The Jordanian businessman said he hasn’t been questioned by U.A.E. authorities, who have also issued a travel ban against him while he was out of the country.
In a phone interview, Tabari also said that he only found out about the details of the probe in October, and followed up by submitting documents to prove his innocence. The last exchange between his lawyers and authorities took place at the end of 2018 and the investigation has yet to result in any formal charge, he said.
The former chief executive officer of Drake & Scull International PJSC said the company’s accusations of financial violations against him are an attempt to find a “scapegoat” for rising losses.
Khaldoun Tabari said the Dubai-based contractor has filed 15 complaints against him to the public prosecutor last year. He said the allegations prompted authorities in the United Arab Emirates to order banks to freeze his bank accounts in June 2018. He denies any wrongdoing.
The Jordanian businessman said he hasn’t been questioned by U.A.E. authorities, who have also issued a travel ban against him while he was out of the country.
In a phone interview, Tabari also said that he only found out about the details of the probe in October, and followed up by submitting documents to prove his innocence. The last exchange between his lawyers and authorities took place at the end of 2018 and the investigation has yet to result in any formal charge, he said.
OPEC says too early for any action on oil after #Saudi attacks - Reuters
OPEC says too early for any action on oil after Saudi attacks - Reuters:
OPEC is assessing the impact on the oil market from attacks on Saudi Arabian facilities and says it is too early for members to take any action on raising output or holding a meeting, the UAE energy minister and other sources said.
Oil surged on Monday to almost $72 a barrel, posting its biggest intra-day percentage gain since the Gulf War in 1991, after an attack on Saturday shut more than 5 million barrels per day (bpd) of output, or over 5% of global supply.
The United Arab Emirates’ energy minister said his country was able to boost output to deal with any supply disruptions, but it was too early to call for an emergency meeting of the Organization of the Petroleum Exporting Countries.
OPEC is assessing the impact on the oil market from attacks on Saudi Arabian facilities and says it is too early for members to take any action on raising output or holding a meeting, the UAE energy minister and other sources said.
Oil surged on Monday to almost $72 a barrel, posting its biggest intra-day percentage gain since the Gulf War in 1991, after an attack on Saturday shut more than 5 million barrels per day (bpd) of output, or over 5% of global supply.
The United Arab Emirates’ energy minister said his country was able to boost output to deal with any supply disruptions, but it was too early to call for an emergency meeting of the Organization of the Petroleum Exporting Countries.
MIDEAST STOCKS- #Saudi funds, oil assurance steady stocks after Aramco attack | Reuters.com
MIDEAST STOCKS-Saudi funds, oil assurance steady stocks after Aramco attack
| Reuters.com:Saudi Arabian stocks were supported by domestic funds on Monday after top oil producer Saudi Aramco assured some clients that there will be no supply shortage as a result of Saturday's attack on its facilities.
The attack shut about 5% of global supply, sending oil prices as much as 19.5% higher, their biggest intra-day percentage gain since 1991's Gulf War.
Despite Aramco's assurance, concerns remain over oil supply which could be disrupted if the outage continued for long, while a full return to normal oil production volumes "may take months", sources told Reuters.
It could also have a wider impact on Saudi Aramco's planned initial public offering (IPO) on its home market. "The attacks could complicate Aramco’s IPO plans given rising security risks and potential impact on its valuation," Eurasia wrote in a note to clients.
After losing 1.1% on Sunday, the country's stock market index closed 1% higher with its biggest lender National Commercial Bank surging 4.2% and Al Rajhi Bank rising 1.4%. Traders cited buying by local and regional investors, as most foreign active investors have already exited the index.
Brent could rally above $75 if Saudi outage extends beyond six weeks: Goldman - Reuters
Brent could rally above $75 if Saudi outage extends beyond six weeks: Goldman - Reuters:
Goldman Sachs said an outage of more than six weeks due to drone attacks on Saudi Arabian oil facilities over the weekend could cause Brent prices to rally above $75 a barrel, although the magnitude of the impact was uncertain at this point.
A disruption over such a duration at current levels would not only push up Brent prices, but also result in the release from Strategic Petroleum Reserves “large enough to balance such a deficit for several months and cap prices at such levels,” the Wall Street bank said in a note dated Sunday.
Oil prices surged on Monday, with global benchmark Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991, after the attack on Saturday shut over 5% of global supply.
Goldman Sachs said an outage of more than six weeks due to drone attacks on Saudi Arabian oil facilities over the weekend could cause Brent prices to rally above $75 a barrel, although the magnitude of the impact was uncertain at this point.
A disruption over such a duration at current levels would not only push up Brent prices, but also result in the release from Strategic Petroleum Reserves “large enough to balance such a deficit for several months and cap prices at such levels,” the Wall Street bank said in a note dated Sunday.
Oil prices surged on Monday, with global benchmark Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991, after the attack on Saturday shut over 5% of global supply.
Aramco Said to Stick to IPO as Strikes Put Pressure on Valuation - Bloomberg
Aramco Said to Stick to IPO as Strikes Put Pressure on Valuation - Bloomberg:
Bankers hired for Saudi Aramco’s mammoth initial public offering plan to stick to their schedule to pitch the deal to analysts even after devastating attacks on its biggest facilities slashed oil output by half, according to people with knowledge of the matter.
The energy giant aims to hold analyst presentations as planned and hasn’t told executives that its plans to list on the Saudi stock exchange as early as November may be delayed, the people said, asking not to be identified because the matter is sensitive. Aramco was considering holding presentations the week of Sept. 22, Bloomberg News previously reported.
But the magnitude of the attacks, claimed by Yemen’s Iran-backed Houthi rebels, make the chances of the IPO happening in the coming months unlikely, according to one of the people. The extent of any delay would depend on how long Aramco takes to restore its full production, another person said. Aramco lost about 5.7 million barrels per day of output.
Bankers hired for Saudi Aramco’s mammoth initial public offering plan to stick to their schedule to pitch the deal to analysts even after devastating attacks on its biggest facilities slashed oil output by half, according to people with knowledge of the matter.
The energy giant aims to hold analyst presentations as planned and hasn’t told executives that its plans to list on the Saudi stock exchange as early as November may be delayed, the people said, asking not to be identified because the matter is sensitive. Aramco was considering holding presentations the week of Sept. 22, Bloomberg News previously reported.
But the magnitude of the attacks, claimed by Yemen’s Iran-backed Houthi rebels, make the chances of the IPO happening in the coming months unlikely, according to one of the people. The extent of any delay would depend on how long Aramco takes to restore its full production, another person said. Aramco lost about 5.7 million barrels per day of output.
OPEC Secretary General Mohammad Barkindo on #Saudi Oil Facility Attack - Bloomberg
OPEC Secretary General Mohammad Barkindo on Saudi Oil Facility Attack - Bloomberg:
OPEC Secretary General Mohammad Barkindo discusses the attack on the Saudi oil facility over the weekend, his conversation with the Saudi authorities and what they’re telling customers. He speaks exclusively on “Bloomberg Markets: European Open.” (Source: Bloomberg)
OPEC Secretary General Mohammad Barkindo discusses the attack on the Saudi oil facility over the weekend, his conversation with the Saudi authorities and what they’re telling customers. He speaks exclusively on “Bloomberg Markets: European Open.” (Source: Bloomberg)
Edward Bell, commodities analyst at lender Emirates NBD, on #Saudi Oil Facility Attack - Bloomberg
Edward Bell, commodities analyst at lender Emirates NBD, on Saudi Oil Facility Attack - Bloomberg:
Edward Bell, commodities analyst at lender Emirates NBD PJSC, talks about the strike on Saudi Aramco’s Abqaiq plant, one of the world’s largest crude-processing facilities, and the implications for the global oil market. He speaks with Manus Cranny and Anthony Dipaola on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Edward Bell, commodities analyst at lender Emirates NBD PJSC, talks about the strike on Saudi Aramco’s Abqaiq plant, one of the world’s largest crude-processing facilities, and the implications for the global oil market. He speaks with Manus Cranny and Anthony Dipaola on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
StanChart Couldn’t Tell Regulator How Some Rich Clients Got Rich - Bloomberg
StanChart Couldn’t Tell Regulator How Some Rich Clients Got Rich - Bloomberg:
Standard Chartered Plc, fined billions of dollars since 2012 for regulatory violations, has discovered that it cannot explain how some of its wealthiest clients acquired their fortunes and is reviewing thousands of customer accounts at its private bank.
A Dubai regulatory review two years ago, which hasn’t previously been reported, found that the private bank didn’t have documentation to show the sources of some clients’ wealth and in some cases lacked even basic data such as current addresses and phone numbers, according to people familiar with the situation. Similar failings have been identified at major hubs including Singapore, Hong Kong and London, the people said.
This isn’t the first failure of the bank’s anti-money-laundering efforts. In April, Britain’s financial watchdog fined the lender 102 million pounds ($127 million) for “serious and sustained shortcomings” in its client due diligence and monitoring, including in the United Arab Emirates between 2009 and 2014. That was part of a $1.1 billion settlement with U.S. and U.K. regulators that also took Standard Chartered to task over its handling of transactions that violated sanctions against Iran and other countries.
Standard Chartered Plc, fined billions of dollars since 2012 for regulatory violations, has discovered that it cannot explain how some of its wealthiest clients acquired their fortunes and is reviewing thousands of customer accounts at its private bank.
A Dubai regulatory review two years ago, which hasn’t previously been reported, found that the private bank didn’t have documentation to show the sources of some clients’ wealth and in some cases lacked even basic data such as current addresses and phone numbers, according to people familiar with the situation. Similar failings have been identified at major hubs including Singapore, Hong Kong and London, the people said.
This isn’t the first failure of the bank’s anti-money-laundering efforts. In April, Britain’s financial watchdog fined the lender 102 million pounds ($127 million) for “serious and sustained shortcomings” in its client due diligence and monitoring, including in the United Arab Emirates between 2009 and 2014. That was part of a $1.1 billion settlement with U.S. and U.K. regulators that also took Standard Chartered to task over its handling of transactions that violated sanctions against Iran and other countries.
MIDEAST STOCKS- #Saudi stocks claw back from losses as oil supply fears ease - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks claw back from losses as oil supply fears ease - Agricultural Commodities - Reuters:
Saudi Arabian stocks on Monday recouped some of the previous session’s losses after top oil producer Saudi Aramco (IPO-ARMO.SE) assured some of its clients that there will be no shortage in supplies.
An attack on Saudi Arabian oil facilities on Saturday shut about 5% of global supply, sending oil prices higher as much as 19.5%, their biggest intra-day percentage gain since the Gulf War in 1991.
Stock market sentiment was also helped by a Barclays statement that attacks were unlikely to reduce the kingdom’s oil exports “dramatically”.
Saudi’s stock index was up 0.5%, with Al Rajhi Bank and its biggest petrochemical maker, Saudi Basic Industries, both climbing 0.9%.
Saudi Arabian stocks on Monday recouped some of the previous session’s losses after top oil producer Saudi Aramco (IPO-ARMO.SE) assured some of its clients that there will be no shortage in supplies.
An attack on Saudi Arabian oil facilities on Saturday shut about 5% of global supply, sending oil prices higher as much as 19.5%, their biggest intra-day percentage gain since the Gulf War in 1991.
Stock market sentiment was also helped by a Barclays statement that attacks were unlikely to reduce the kingdom’s oil exports “dramatically”.
Saudi’s stock index was up 0.5%, with Al Rajhi Bank and its biggest petrochemical maker, Saudi Basic Industries, both climbing 0.9%.
Oil attacks send #SaudiArabia, Aramco bonds to multi-week lows - Reuters
Oil attacks send Saudi Arabia, Aramco bonds to multi-week lows - Reuters:
Dollar-denominated bonds issued by Saudi Arabia’s government and state-oil firm Saudi Aramco tumbled to multi-week lows on Monday following a weekend attack on Saudi Arabia’s oil facilities that shut about 5% of global supply.
Saudi Aramco’s longer-dated bonds bore the brunt of the falls with the 2049 issue XS1982116136=TE dropping nearly 3 cents in the dollar to touch their lowest since early August, data from Tradeweb showed.
The government sovereign bonds also came under pressure, with longer-dated issues falling between 1-2 cents.
Dollar-denominated bonds issued by Saudi Arabia’s government and state-oil firm Saudi Aramco tumbled to multi-week lows on Monday following a weekend attack on Saudi Arabia’s oil facilities that shut about 5% of global supply.
Saudi Aramco’s longer-dated bonds bore the brunt of the falls with the 2049 issue XS1982116136=TE dropping nearly 3 cents in the dollar to touch their lowest since early August, data from Tradeweb showed.
The government sovereign bonds also came under pressure, with longer-dated issues falling between 1-2 cents.
Oil surges after attack on #Saudi oil facilities shuts in 5% of global supply - Reuters
Oil surges after attack on Saudi oil facilities shuts in 5% of global supply - Reuters:
Oil prices surged on Monday, with Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities on Saturday shut over 5% of global supply.
But prices came off their peaks after U.S. President Donald Trump authorized the use of the country’s emergency stockpile to ensure stable supply.
Brent crude futures, the international benchmark, rose by as much as 19.5% to $71.95 per barrel, the biggest intra-day jump since Jan. 14, 1991. By 0633 GMT, the front-month contract was at $66.31, up $6.09, or 10.1%, from its previous close.
U.S. West Texas Intermediate (WTI) futures climbed by as much as 15.5% to $63.34, the biggest intra-day percentage gain since June 22, 1998. The front-month contract was at $59.80, up $4.95, or 9%.
Oil prices surged on Monday, with Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991, after an attack on Saudi Arabian oil facilities on Saturday shut over 5% of global supply.
But prices came off their peaks after U.S. President Donald Trump authorized the use of the country’s emergency stockpile to ensure stable supply.
Brent crude futures, the international benchmark, rose by as much as 19.5% to $71.95 per barrel, the biggest intra-day jump since Jan. 14, 1991. By 0633 GMT, the front-month contract was at $66.31, up $6.09, or 10.1%, from its previous close.
U.S. West Texas Intermediate (WTI) futures climbed by as much as 15.5% to $63.34, the biggest intra-day percentage gain since June 22, 1998. The front-month contract was at $59.80, up $4.95, or 9%.
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