Oil plummets 6% as Saudi oil minister says production fully restored - Reuters:
Oil prices dropped about 6% on Tuesday after Saudi Arabia’s energy minister said the kingdom has fully restored its oil production hit by an attack this weekend that shut 5% of global oil output.
Saturday’s attacks raised the specter of a major supply shock in a market that in recent months has been preoccupied with demand concerns and faltering global growth. Oil surged as much as 20% at one point on Monday.
During a news conference on Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman also said it will keep its full oil supply to its customers this month. He added that oil production in October would be 9.89 million barrels per day.
Brent crude LCOc1 futures sank $4.47, or 6.5%, to settle at $64.55 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $3.56, or 5.7%, to settle at $59.34 a barrel.
Brent sank more than 7% during the news conference.
Tuesday, 17 September 2019
Oil's Craziest Day Leaves Traders Dazed From Tokyo to Houston - Bloomberg
Oil's Craziest Day Leaves Traders Dazed From Tokyo to Houston - Bloomberg:
The Sunday opening of the oil market is traditionally a sedate affair: volumes are minimal and only a few traders in Asia, where it’s already early Monday, are in front of their screens.
Last Sunday was different. Order volumes were sky high and hedge funds, refiners and oil trading houses had their top traders staffing operations, according to interviews with multiple market participants. Brokers put special teams in place to beef up skeleton weekend crews.
“It wasn’t just profit and loss,” said Richard Fullarton, the founder of London-based oil hedge fund Matilda Capital Management. “People’s careers and livelihoods changed on Sunday night.”
The Sunday opening of the oil market is traditionally a sedate affair: volumes are minimal and only a few traders in Asia, where it’s already early Monday, are in front of their screens.
Last Sunday was different. Order volumes were sky high and hedge funds, refiners and oil trading houses had their top traders staffing operations, according to interviews with multiple market participants. Brokers put special teams in place to beef up skeleton weekend crews.
“It wasn’t just profit and loss,” said Richard Fullarton, the founder of London-based oil hedge fund Matilda Capital Management. “People’s careers and livelihoods changed on Sunday night.”
#SaudiArabia seeks to reassure on oil supplies after attack | Financial Times
Saudi Arabia seeks to reassure on oil supplies after attack | Financial Times:
Saudi Arabia sought to reassure the oil market on Tuesday that it can keep customers well-supplied despite attacks on its key facilities, sending crude prices sharply lower and reversing part of the spike.
The kingdom’s crude oil production was cut by more than half at the weekend by strikes on its critical Abqaiq oil processing facility and a big oilfield, sending prices up by as much as 20 per cent on Monday.
People briefed on the extent of the damage at Abqaiq, which processes more than 70 per cent of the kingdom’s normal output, have warned it could take months before full production is restored.
Saudi Arabia sought to reassure the oil market on Tuesday that it can keep customers well-supplied despite attacks on its key facilities, sending crude prices sharply lower and reversing part of the spike.
The kingdom’s crude oil production was cut by more than half at the weekend by strikes on its critical Abqaiq oil processing facility and a big oilfield, sending prices up by as much as 20 per cent on Monday.
People briefed on the extent of the damage at Abqaiq, which processes more than 70 per cent of the kingdom’s normal output, have warned it could take months before full production is restored.
Oil Plunges on Report Saudis May Soon Resume 70% of Lost Output - Bloomberg
Oil Plunges on Report Saudis May Soon Resume 70% of Lost Output - Bloomberg:
Oil plunged more than 6% in London after Reuters reported Saudi Arabia is close to restoring 70% of the oil production lost after this weekend’s attack.
Brent crude dropped as low as $64.48/bbl on the report, which cited an unidentified Saudi source saying it would return to full production in the next two to three weeks. Saudi Energy Minister Prince Abdulaziz bin Salman is scheduled to hold a press briefing on Tuesday in Jeddah.
Estimates of when, and how much, of the 5.7 million barrels a day of shut output would be back online has fluctuated since the attack. Significant volumes could come back within days, people familiar with the matter said over the weekend, adding that it could still take weeks to restore full capacity.
Oil plunged more than 6% in London after Reuters reported Saudi Arabia is close to restoring 70% of the oil production lost after this weekend’s attack.
Brent crude dropped as low as $64.48/bbl on the report, which cited an unidentified Saudi source saying it would return to full production in the next two to three weeks. Saudi Energy Minister Prince Abdulaziz bin Salman is scheduled to hold a press briefing on Tuesday in Jeddah.
Estimates of when, and how much, of the 5.7 million barrels a day of shut output would be back online has fluctuated since the attack. Significant volumes could come back within days, people familiar with the matter said over the weekend, adding that it could still take weeks to restore full capacity.
#Saudi oil output to return faster than first thought: sources - Reuters
Saudi oil output to return faster than first thought: sources - Reuters:
Saudi Arabia’s oil output will be fully back online quicker than initially thought following weekend attacks on production facilities, two sources briefed on the latest developments told Reuters on Tuesday.
The Kingdom is close to restoring 70% of the 5.7 million barrels per day (bpd) production lost following the attacks, one of the sources, a top Saudi source briefed on the latest developments, said.
That source said output will be fully back online in the next 2-3 weeks.
Saudi Arabia’s oil output will be fully back online quicker than initially thought following weekend attacks on production facilities, two sources briefed on the latest developments told Reuters on Tuesday.
The Kingdom is close to restoring 70% of the 5.7 million barrels per day (bpd) production lost following the attacks, one of the sources, a top Saudi source briefed on the latest developments, said.
That source said output will be fully back online in the next 2-3 weeks.
#Dubai’s DSA Leads Bid for Mines Once Owned by Guptas, Glencore - Bloomberg
Dubai’s DSA Leads Bid for Mines Once Owned by Guptas, Glencore - Bloomberg:
Dubai’s DSA Investments has teamed up with two South African companies to bid for coal assets that Glencore Plc was pressured into selling to a company controlled by the politically connected Gupta family in 2015.
Orchid Mining, a unit of DSA, owns 49% of the venture making the bid and the balance is held by the Smada Group and Nehawu Investment Holdings, which invests funds on behalf of the National Education, Health and Allied Workers’ Union.
“I see the opportunity in the coal industry,” said Yusuf Adams, the founder of Johannesburg-based Smada, which has 4,000 employees and mainly operates in the property, security and information technology industries. “Partnering with DSA is an opportunity for Smada.”
Dubai’s DSA Investments has teamed up with two South African companies to bid for coal assets that Glencore Plc was pressured into selling to a company controlled by the politically connected Gupta family in 2015.
Orchid Mining, a unit of DSA, owns 49% of the venture making the bid and the balance is held by the Smada Group and Nehawu Investment Holdings, which invests funds on behalf of the National Education, Health and Allied Workers’ Union.
“I see the opportunity in the coal industry,” said Yusuf Adams, the founder of Johannesburg-based Smada, which has 4,000 employees and mainly operates in the property, security and information technology industries. “Partnering with DSA is an opportunity for Smada.”
Aramco Can Add 250k B/D to Replace Some Lost Output: Qamar Energy - Bloomberg
Aramco Can Add 250k B/D to Replace Some Lost Output: Qamar Energy - Bloomberg:
Saudi Aramco can raise production from offshore oil fields to help replace output disruption after Saturday’s attacks on its facilities. That's according to Robin Mills, CEO of Dubai-based consultant Qamar Energy. He spoke on Bloomberg TV. (Source: Bloomberg)
Saudi Aramco can raise production from offshore oil fields to help replace output disruption after Saturday’s attacks on its facilities. That's according to Robin Mills, CEO of Dubai-based consultant Qamar Energy. He spoke on Bloomberg TV. (Source: Bloomberg)
#Qatar's Ahli Bank set to raise $500 mln in five year bonds - document - Reuters
Qatar's Ahli Bank set to raise $500 mln in five year bonds - document - Reuters:
Qatar’s Ahli Bank is set to raise $500 mln in five-year bonds, according to a document issued by one of the banks leading the deal.
The bank received orders in excess of $1.7 billion for the deal, the document showed.
Qatar’s Ahli Bank is set to raise $500 mln in five-year bonds, according to a document issued by one of the banks leading the deal.
The bank received orders in excess of $1.7 billion for the deal, the document showed.
#SaudiArabia’s Samba plans to issue notes on $5bln Euro medium term programme | ZAWYA MENA Edition
Saudi Arabia’s Samba plans to issue notes on $5bln Euro medium term programme | ZAWYA MENA Edition:
Saudi Arabia’s Samba Financial Group plans to offer notes under its $5 billion Euro Medium Term Note Programme.
The notes will be issued via a special purpose vehicle (SPV) and Samba will start investor meetings regarding the notes issuance from Tuesday, September17, the bank said in a statement. The offer is expected to be in US dollars.
The bank has mandated First Abu Dhabi Bank, Goldman Sachs International, HSBC, Samba Capital & Investment Management Company and Standard Chartered Bank as joint lead managers for the proposed offer.
Saudi Arabia’s Samba Financial Group plans to offer notes under its $5 billion Euro Medium Term Note Programme.
The notes will be issued via a special purpose vehicle (SPV) and Samba will start investor meetings regarding the notes issuance from Tuesday, September17, the bank said in a statement. The offer is expected to be in US dollars.
The bank has mandated First Abu Dhabi Bank, Goldman Sachs International, HSBC, Samba Capital & Investment Management Company and Standard Chartered Bank as joint lead managers for the proposed offer.
UPDATE 1- #Bahrain gears up for first dollar bond since Gulf bailout - Reuters
UPDATE 1-Bahrain gears up for first dollar bond since Gulf bailout - Reuters:
Bahrain has mandated banks for a dual-tranche dollar-denominated bond issue, which would be its first since it obtained a $10 billion bailout from its Gulf allies last year to avert a credit crunch.
The small Gulf kingdom is looking to issue seven-year Islamic bonds and 12-year conventional bonds, according to a document seen by Reuters.
It has mandated BNP Paribas, Citi, Gulf International Bank, JP Morgan, National Bank of Bahrain and Standard Chartered to organise investor meetings in Asia, the United States, the Middle East and Britain from Thursday, according to the document.
Bahrain has mandated banks for a dual-tranche dollar-denominated bond issue, which would be its first since it obtained a $10 billion bailout from its Gulf allies last year to avert a credit crunch.
The small Gulf kingdom is looking to issue seven-year Islamic bonds and 12-year conventional bonds, according to a document seen by Reuters.
It has mandated BNP Paribas, Citi, Gulf International Bank, JP Morgan, National Bank of Bahrain and Standard Chartered to organise investor meetings in Asia, the United States, the Middle East and Britain from Thursday, according to the document.
#Saudi central bank says 2019 GDP growth will not be far from IMF forecast - Reuters
Saudi central bank says 2019 GDP growth will not be far from IMF forecast - Reuters:
Saudi Arabia’s economic growth this year will not be too far from the forecast made by the International Monetary Fund (IMF), central bank governor Ahmed al-Kholifey said on Tuesday.
The IMF expects the Saudi economy to grow 1.9%, slower than 2.2% in 2018, but some economists are more bearish due to oil output cuts.
His comments come amid concerns over the impact of Saturday’s attack on Saudi oil facilities that knocked out half the kingdom’s output and damaged the world’s biggest crude oil processing plant, triggering the largest jump in oil prices in decades.
Saudi Arabia’s economic growth this year will not be too far from the forecast made by the International Monetary Fund (IMF), central bank governor Ahmed al-Kholifey said on Tuesday.
The IMF expects the Saudi economy to grow 1.9%, slower than 2.2% in 2018, but some economists are more bearish due to oil output cuts.
His comments come amid concerns over the impact of Saturday’s attack on Saudi oil facilities that knocked out half the kingdom’s output and damaged the world’s biggest crude oil processing plant, triggering the largest jump in oil prices in decades.
Saudis yet to brief OPEC colleagues, IEA on oil outage: sources - Reuters
Saudis yet to brief OPEC colleagues, IEA on oil outage: sources - Reuters:
Saudi Arabia has yet to brief fellow OPEC members and other energy sector players about how long it will take to restore the country’s oil output, OPEC and industry sources said as Riyadh tries to assess damage from the weekend’s crippling attacks.
Saturday’s attacks on oil facilities will cut the kingdom’s output by 5.7 million barrels per day, state-run producer Saudi Aramco said. Sources have said a return to normal production could take months.
The United States has said it looked like Iran was behind the strike at the heart of the Saudi oil industry, which cut 5% of global production. Iran denied it was to blame.
Saudi Arabia has yet to brief fellow OPEC members and other energy sector players about how long it will take to restore the country’s oil output, OPEC and industry sources said as Riyadh tries to assess damage from the weekend’s crippling attacks.
Saturday’s attacks on oil facilities will cut the kingdom’s output by 5.7 million barrels per day, state-run producer Saudi Aramco said. Sources have said a return to normal production could take months.
The United States has said it looked like Iran was behind the strike at the heart of the Saudi oil industry, which cut 5% of global production. Iran denied it was to blame.
MIDEAST STOCKS- #Saudi stocks stumble as Aramco oil supply disruption felt - Reuters
MIDEAST STOCKS-Saudi stocks stumble as Aramco oil supply disruption felt - Reuters:
Saudi Arabian shares fell on Tuesday,
with petrochemical stocks under pressure after the weekend
attacks on Saudi Aramco's oil facilities disrupted the kingdom's
oil supply.
Saudi Arabia's stock index declined 0.7%, with the
Gulf's largest petrochemical firm Saudi Basic Industries (SABIC)
dropping 3.2% as the firm traded ex-dividend.
In addition, SABIC and other petrochemicals firms announced
significant reductions in their feedstock supplies following
Saturday's attacks on the Aramco facilities.
Saudi Arabia has shut down its crude oil pipeline to Bahrain
and Aramco informed PetroChina that its loadings of
light crude oil for October will be delayed by about 10 days.
Saudi Arabian shares fell on Tuesday,
with petrochemical stocks under pressure after the weekend
attacks on Saudi Aramco's oil facilities disrupted the kingdom's
oil supply.
Saudi Arabia's stock index declined 0.7%, with the
Gulf's largest petrochemical firm Saudi Basic Industries (SABIC)
dropping 3.2% as the firm traded ex-dividend.
In addition, SABIC and other petrochemicals firms announced
significant reductions in their feedstock supplies following
Saturday's attacks on the Aramco facilities.
Saudi Arabia has shut down its crude oil pipeline to Bahrain
and Aramco informed PetroChina that its loadings of
light crude oil for October will be delayed by about 10 days.
#SaudiArabia, Aramco dollar bonds recover after oil attacks | BOE Report
Saudi Arabia, Aramco dollar bonds recover after oil attacks | BOE Report:
Dollar-denominated bonds issued by Saudi Arabia's government and state-oil firm Saudi Aramco rebounded on Tuesday after slumping in the wake of attacks on Saudi Arabia's oil facilities.
Saudi Arabia's 2046 and 2047 issues , as well as Aramco bonds maturing in 2049 rose more than 0.7 cent in the dollar, recovering some of Monday's losses, data from Tradeweb showed.
In a sign that investor concern about fallout from the attacks might be abating, Saudi Arabia's sovereign five-year credit default swaps remained at 66 basis points on Tuesday, the same level as Monday's close, according to IHS Markit data.
It had risen six basis points on Monday.
Dollar-denominated bonds issued by Saudi Arabia's government and state-oil firm Saudi Aramco rebounded on Tuesday after slumping in the wake of attacks on Saudi Arabia's oil facilities.
Saudi Arabia's 2046 and 2047 issues , as well as Aramco bonds maturing in 2049 rose more than 0.7 cent in the dollar, recovering some of Monday's losses, data from Tradeweb showed.
In a sign that investor concern about fallout from the attacks might be abating, Saudi Arabia's sovereign five-year credit default swaps remained at 66 basis points on Tuesday, the same level as Monday's close, according to IHS Markit data.
It had risen six basis points on Monday.
MIDEAST STOCKS- #Saudi leads losses as major Gulf markets slide - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi leads losses as major Gulf markets slide - Agricultural Commodities - Reuters:
Saudi Arabian stocks fell in early trade on Tuesday amid fears of oil shortages following attacks on two of the country’s key plants on Saturday that shut over 5% of global supply. Other major Gulf markets also slid.
Saudi Arabia has shut down its crude oil pipeline to Bahrain and Saudi Aramco informed PetroChina that its loadings of light crude oil for October will be delayed by about 10 days.
Furthermore, at least two refined product tankers that were due to load at Saudi Arabia’s Jubail port in mid to late September have been diverted.
Saudi Arabian stocks fell in early trade on Tuesday amid fears of oil shortages following attacks on two of the country’s key plants on Saturday that shut over 5% of global supply. Other major Gulf markets also slid.
Saudi Arabia has shut down its crude oil pipeline to Bahrain and Saudi Aramco informed PetroChina that its loadings of light crude oil for October will be delayed by about 10 days.
Furthermore, at least two refined product tankers that were due to load at Saudi Arabia’s Jubail port in mid to late September have been diverted.
Now Money offers alternative for Gulf’s unbanked expats | Financial Times
Now Money offers alternative for Gulf’s unbanked expats | Financial Times:
The Gulf’s economy — from oil production to tourism — is underpinned by expatriate workers, the majority of whom are not paid enough to open a regular bank account.
About 70 per cent of the population in the Middle East and north Africa do not have access to banking services, says Ian Dillon, co-founder of Now Money, a Dubai-based financial technology group.
Founded four years ago, the company aims to open up financial services for the low-income workers in the six-nation Gulf Cooperation Council: labourers, taxi drivers, cleaners and hotel staff who arrive largely from south Asia and Africa.
The Gulf’s economy — from oil production to tourism — is underpinned by expatriate workers, the majority of whom are not paid enough to open a regular bank account.
About 70 per cent of the population in the Middle East and north Africa do not have access to banking services, says Ian Dillon, co-founder of Now Money, a Dubai-based financial technology group.
Founded four years ago, the company aims to open up financial services for the low-income workers in the six-nation Gulf Cooperation Council: labourers, taxi drivers, cleaners and hotel staff who arrive largely from south Asia and Africa.
Saudis Face Lengthy Oil Halt With Few Options to Replace Losses - Bloomberg
Saudis Face Lengthy Oil Halt With Few Options to Replace Losses - Bloomberg:
The oil market is facing a prolonged disruption to Saudi Arabia’s oil production with few options for replacing such huge output losses.
The weekend attacks on the kingdom eliminated about 5% of global oil supply, propelling Brent crude to a record surge on Monday. Officials at state oil company Saudi Aramco have become less optimistic on the pace of output recovery, telling a senior foreign diplomat they face a “severe” disruption measured in weeks and months and informing some customers that October shipments will be delayed.
The historic price gain underscores the unprecedented nature of the disruption caused by the drone attack on the Abqaiq crude processing plant. For decades, Saudi Arabia has been the oil market’s great stabilizer, maintaining a large cushion of spare production capacity that can be tapped in emergencies, such as the 2011 war in Libya.
The oil market is facing a prolonged disruption to Saudi Arabia’s oil production with few options for replacing such huge output losses.
The weekend attacks on the kingdom eliminated about 5% of global oil supply, propelling Brent crude to a record surge on Monday. Officials at state oil company Saudi Aramco have become less optimistic on the pace of output recovery, telling a senior foreign diplomat they face a “severe” disruption measured in weeks and months and informing some customers that October shipments will be delayed.
The historic price gain underscores the unprecedented nature of the disruption caused by the drone attack on the Abqaiq crude processing plant. For decades, Saudi Arabia has been the oil market’s great stabilizer, maintaining a large cushion of spare production capacity that can be tapped in emergencies, such as the 2011 war in Libya.
Oil Market Gripped by Uncertainty Over Lost #Saudi Production - Bloomberg
Oil Market Gripped by Uncertainty Over Lost Saudi Production - Bloomberg:
Oil markets are grappling with uncertainty over how long it will take Saudi Arabia to restore output after the devastating attacks that knocked out 5% of global crude supply.
As state oil giant Saudi Aramco grows less optimistic that there’ll be a rapid recovery after the strikes that cut the nation’s output by half, investors are seeking clarity on just how bad it could be. Initially, it was said significant volumes could begin to return within days, but Saudi officials later told a foreign diplomat they face “severe” disruption measured in weeks and months. Brent crude slipped below $69 a barrel on Tuesday after a record jump Monday.
“If you take 50% of the lost output and bring it back online, you’re still left with an absolutely huge disruption that might continue for some time longer,” Richard Mallinson, a geopolitical analyst at consultant Energy Aspects Ltd. in London, told Bloomberg television. “Things are definitely even more tense across the Middle East than they were before Saturday.”
Oil markets are grappling with uncertainty over how long it will take Saudi Arabia to restore output after the devastating attacks that knocked out 5% of global crude supply.
As state oil giant Saudi Aramco grows less optimistic that there’ll be a rapid recovery after the strikes that cut the nation’s output by half, investors are seeking clarity on just how bad it could be. Initially, it was said significant volumes could begin to return within days, but Saudi officials later told a foreign diplomat they face “severe” disruption measured in weeks and months. Brent crude slipped below $69 a barrel on Tuesday after a record jump Monday.
“If you take 50% of the lost output and bring it back online, you’re still left with an absolutely huge disruption that might continue for some time longer,” Richard Mallinson, a geopolitical analyst at consultant Energy Aspects Ltd. in London, told Bloomberg television. “Things are definitely even more tense across the Middle East than they were before Saturday.”
Top Oil Producer Challenges Investors Willing to Embrace Despots - Bloomberg
Top Oil Producer Challenges Investors Willing to Embrace Despots - Bloomberg:
Forget Canadian nice.
Alberta Premier Jason Kenney, whose province produces more oil than most OPEC nations, has a message for environmentalists, investors and anyone else who will listen: The world needs more Canadian crude, and standing in the way is foolish.
Kenney’s United Conservative Party swept to power in April. He’s traveling to New York and Ohio this week and planning trips to the U.K., Germany and possibly Asia in the coming months to tout the benefits of Canadian oil, which he says has gotten a bad rap from critics that have unfairly demonized Alberta’s oil sands. Against the backdrop of a drone attack in Saudi Arabia that idled 5% of global oil production, Canada offers a safe, secure and socially responsible source of energy, Kenney said.
Forget Canadian nice.
Alberta Premier Jason Kenney, whose province produces more oil than most OPEC nations, has a message for environmentalists, investors and anyone else who will listen: The world needs more Canadian crude, and standing in the way is foolish.
Kenney’s United Conservative Party swept to power in April. He’s traveling to New York and Ohio this week and planning trips to the U.K., Germany and possibly Asia in the coming months to tout the benefits of Canadian oil, which he says has gotten a bad rap from critics that have unfairly demonized Alberta’s oil sands. Against the backdrop of a drone attack in Saudi Arabia that idled 5% of global oil production, Canada offers a safe, secure and socially responsible source of energy, Kenney said.
Markets Are Pricing in Little Risk of War With Iran - Bloomberg
Markets Are Pricing in Little Risk of War With Iran - Bloomberg:
The weekend began with explosions in Saudi Arabia and ended with an almighty bang in the oil market, as crude futures briefly rose almost 20%. In the 24 hours that followed, markets moved in the expected direction. Bonds rose, stocks fell, and investors took more risk-averse positions.
But why wasn’t the move bigger? September has so far seen a classic market reversal, as stocks beat bonds, the yield curve moved out of inversion, and previously over-popular low-risk stocks were dumped. In other words, there has been a shift toward optimism. Yet after the biggest-ever interruption to daily oil supply, the turnaround has been minimal.
As this chart shows, bonds barely beat stocks, and the yield curve barely flattened. Were traders even paying attention?
The weekend began with explosions in Saudi Arabia and ended with an almighty bang in the oil market, as crude futures briefly rose almost 20%. In the 24 hours that followed, markets moved in the expected direction. Bonds rose, stocks fell, and investors took more risk-averse positions.
But why wasn’t the move bigger? September has so far seen a classic market reversal, as stocks beat bonds, the yield curve moved out of inversion, and previously over-popular low-risk stocks were dumped. In other words, there has been a shift toward optimism. Yet after the biggest-ever interruption to daily oil supply, the turnaround has been minimal.
As this chart shows, bonds barely beat stocks, and the yield curve barely flattened. Were traders even paying attention?
Aramco Attacks May Take Time to Trickle to Banks, Moody’s Says - Bloomberg
Aramco Attacks May Take Time to Trickle to Banks, Moody’s Says - Bloomberg:
It is too early to link the attacks on Saudi Aramco’s facilities to the kingdom’s banking system and the effects might take some time to trickle through, according to Moody’s Investors Service.
“We still don’t know,” Ashraf Madani, a senior analyst at Moody’s in Dubai, said in an interview in Riyadh on Tuesday. The outlook for lenders in the country is stable for the next 12-18 months, he said.
Record government spending will help fuel lending growth to about 4%-5% next year, Madani said. “Profitability in the system is solid,” he said. “We’re talking about a ratio of return on assets above 2%, which is very solid.”
It is too early to link the attacks on Saudi Aramco’s facilities to the kingdom’s banking system and the effects might take some time to trickle through, according to Moody’s Investors Service.
“We still don’t know,” Ashraf Madani, a senior analyst at Moody’s in Dubai, said in an interview in Riyadh on Tuesday. The outlook for lenders in the country is stable for the next 12-18 months, he said.
Record government spending will help fuel lending growth to about 4%-5% next year, Madani said. “Profitability in the system is solid,” he said. “We’re talking about a ratio of return on assets above 2%, which is very solid.”
Aramco Faces Weeks or Months Without Bulk of Lost Oil Output - Bloomberg
Aramco Faces Weeks or Months Without Bulk of Lost Oil Output - Bloomberg:
Saudi Aramco could take months to restore output at its giant Abqaib plant, keeping up pressure on oil prices as the geopolitical consequences of the worst single attack on global supplies continued to reverberate.
Brent crude traded just under $69 a barrel after jumping the most on record on Monday. President Donald Trump said “we pretty much already know” who was responsible, signaling Iran was to blame for the attack. Saudi Arabia has said Iranian weapons were used.
Oil prices surged on the prospect of more conflict in the region, as well as on the supply shock. The question now is how quickly the kingdom can recover from the devastating strike, which knocked out half its production, or roughly 5% of global supply. Saudi Arabian officials told a senior foreign diplomat they face a “severe” disruption measured in weeks and months.
Saudi Aramco could take months to restore output at its giant Abqaib plant, keeping up pressure on oil prices as the geopolitical consequences of the worst single attack on global supplies continued to reverberate.
Brent crude traded just under $69 a barrel after jumping the most on record on Monday. President Donald Trump said “we pretty much already know” who was responsible, signaling Iran was to blame for the attack. Saudi Arabia has said Iranian weapons were used.
Oil prices surged on the prospect of more conflict in the region, as well as on the supply shock. The question now is how quickly the kingdom can recover from the devastating strike, which knocked out half its production, or roughly 5% of global supply. Saudi Arabian officials told a senior foreign diplomat they face a “severe” disruption measured in weeks and months.
Gulf Bonds Go From Haven to Hazard as #Saudi Strikes Stun Market - Bloomberg
Gulf Bonds Go From Haven to Hazard as Saudi Strikes Stun Market - Bloomberg:
Gulf dollar bonds went into the weekend as investor darlings and came out as risky assets.
Money managers poured into the Gulf region in the weeks running up to Saturday’s unprecedented attack on Saudi Arabia’s key oil facilities. That drove record gains for bonds in August as they sought refuge in securities boasting an average credit score of A+ amid global trade tensions.
When markets reopened on Monday, debt from all six of the Gulf Cooperation Council nations fell as the prospect of a conflict in the Middle East loomed. Saudi Arabian bonds handed investors the biggest loss, about triple that of Qatari securities, according to a Bloomberg Barclays index. The region’s bonds were mostly steady as of 9:27 a.m. on Tuesday in London.
Gulf dollar bonds went into the weekend as investor darlings and came out as risky assets.
Money managers poured into the Gulf region in the weeks running up to Saturday’s unprecedented attack on Saudi Arabia’s key oil facilities. That drove record gains for bonds in August as they sought refuge in securities boasting an average credit score of A+ amid global trade tensions.
When markets reopened on Monday, debt from all six of the Gulf Cooperation Council nations fell as the prospect of a conflict in the Middle East loomed. Saudi Arabian bonds handed investors the biggest loss, about triple that of Qatari securities, according to a Bloomberg Barclays index. The region’s bonds were mostly steady as of 9:27 a.m. on Tuesday in London.
Middle East tech shines in tough neighbourhood | Financial Times
Middle East tech shines in tough neighbourhood | Financial Times:
Sheikh Mohammed bin Rashid al-Maktoum, Dubai’s ruler, was upbeat when he toured construction sites last month as the city state spends billions of dollars preparing for Expo 2020. Taking to Twitter, he pledged that the regional trade and finance hub would present the “best Expo edition in its 168-year-old history”.
In Dubai, many hope Sheikh Mohammed’s optimism is not misplaced. The government forecasts that the fair will attract 25m visitors and create tens of thousands of jobs to help ease its latest downturn.
Across the oil-rich Gulf states, economies have struggled to rebound after crude prices slumped in 2015. The region’s volatile geopolitics were highlighted at the weekend when Saudi Arabia’s oil industry, including its biggest processing centre, was targeted by drone attacks, sending the price of crude soaring.
Sheikh Mohammed bin Rashid al-Maktoum, Dubai’s ruler, was upbeat when he toured construction sites last month as the city state spends billions of dollars preparing for Expo 2020. Taking to Twitter, he pledged that the regional trade and finance hub would present the “best Expo edition in its 168-year-old history”.
In Dubai, many hope Sheikh Mohammed’s optimism is not misplaced. The government forecasts that the fair will attract 25m visitors and create tens of thousands of jobs to help ease its latest downturn.
Across the oil-rich Gulf states, economies have struggled to rebound after crude prices slumped in 2015. The region’s volatile geopolitics were highlighted at the weekend when Saudi Arabia’s oil industry, including its biggest processing centre, was targeted by drone attacks, sending the price of crude soaring.
Mistakes to avoid when investing in Middle East and north Africa | Financial Times
Mistakes to avoid when investing in Middle East and north Africa | Financial Times:
The Middle East and north Africa (Mena) region is infamous among foreign investors for being difficult to understand. This lack of comprehension has created a risk premium far in excess of what is necessary for the region, leading to higher returns for informed investors.
The first mistake is to assume that Mena, a collection of 20 or so countries, is homogeneous. Although most people in Mena identify as Arabs and possess shared traits — which lead to a larger market — the cultural and economic differences around the region are substantial.
While these differences create diversification opportunities, it also means that, for example, hiring an investment analyst from the Levant to analyse the Gulf states will not create any more value than hiring someone who grew up in Britain.
The Middle East and north Africa (Mena) region is infamous among foreign investors for being difficult to understand. This lack of comprehension has created a risk premium far in excess of what is necessary for the region, leading to higher returns for informed investors.
The first mistake is to assume that Mena, a collection of 20 or so countries, is homogeneous. Although most people in Mena identify as Arabs and possess shared traits — which lead to a larger market — the cultural and economic differences around the region are substantial.
While these differences create diversification opportunities, it also means that, for example, hiring an investment analyst from the Levant to analyse the Gulf states will not create any more value than hiring someone who grew up in Britain.
#Kuwait's Warba Bank plans to issue benchmark sukuk - document - Reuters
Kuwait's Warba Bank plans to issue benchmark sukuk - document - Reuters:
Kuwait’s Warba Bank plans to issue a U.S. dollar denominated, five-year Islamic bond, known as a sukuk, according to a document reviewed by Reuters.
The benchmark size sukuk have an initial guidance of around 165 basis points over mid-swaps.
Kuwait’s Warba Bank plans to issue a U.S. dollar denominated, five-year Islamic bond, known as a sukuk, according to a document reviewed by Reuters.
The benchmark size sukuk have an initial guidance of around 165 basis points over mid-swaps.
U.S. waiting and watching on oil reserve, market well supplied: Perry - Reuters
U.S. waiting and watching on oil reserve, market well supplied: Perry - Reuters:
The United States is still taking a wait-and-see approach on whether to tap its Strategic Petroleum Reserve here to stabilize oil markets after weekend attacks on Saudi Arabia's oil infrastructure, Energy Secretary Rick Perry said on Tuesday.
“With regard to energy markets, the president has directed me to release oil from the Strategic Petroleum Reserve if that is needed to offset any potential disruptions,” Perry told reporters on a visit to Vienna. “But looking at the supply numbers we are confident that the markets remain well-supplied.”
The United States is still taking a wait-and-see approach on whether to tap its Strategic Petroleum Reserve here to stabilize oil markets after weekend attacks on Saudi Arabia's oil infrastructure, Energy Secretary Rick Perry said on Tuesday.
“With regard to energy markets, the president has directed me to release oil from the Strategic Petroleum Reserve if that is needed to offset any potential disruptions,” Perry told reporters on a visit to Vienna. “But looking at the supply numbers we are confident that the markets remain well-supplied.”
Oil declines as market assesses attacks on #Saudi facilities - Reuters
Oil declines as market assesses attacks on Saudi facilities - Reuters:
Oil prices declined on Tuesday, although the market remains on tenterhooks over the threat of a military response to attacks on Saudi Arabian crude oil facilities that halved the kingdom’s output and prompted a price spike not seen in decades.
Saturday’s attacks raised the prospect of a major supply shock in a market that in recent months has focused on demand concerns due to the pressure on global growth from an ongoing U.S.-China trade dispute. Saudi Arabia is the world’s top oil exporter and has been the supplier of last resort for decades.
Brent crude LCOc1 was down 15 cents, or 0.2%, at $68.87 a barrel at 0750 GMT, and West Texas Intermediate CLc1 was down 54 cents, or 0.9%, at $62.36 a barrel. Earlier, the crude benchmarks both fell by around 2%.
On Monday, the prices surged nearly 20% in intraday trading in response to the attacks, the biggest jump in almost 30 years, before closing nearly 15% higher at four-month highs.
Oil prices declined on Tuesday, although the market remains on tenterhooks over the threat of a military response to attacks on Saudi Arabian crude oil facilities that halved the kingdom’s output and prompted a price spike not seen in decades.
Saturday’s attacks raised the prospect of a major supply shock in a market that in recent months has focused on demand concerns due to the pressure on global growth from an ongoing U.S.-China trade dispute. Saudi Arabia is the world’s top oil exporter and has been the supplier of last resort for decades.
Brent crude LCOc1 was down 15 cents, or 0.2%, at $68.87 a barrel at 0750 GMT, and West Texas Intermediate CLc1 was down 54 cents, or 0.9%, at $62.36 a barrel. Earlier, the crude benchmarks both fell by around 2%.
On Monday, the prices surged nearly 20% in intraday trading in response to the attacks, the biggest jump in almost 30 years, before closing nearly 15% higher at four-month highs.