Oil Declines as Market Returns Focus to Saudi Production Return - Bloomberg:
Crude declined to the lowest since Saudi Arabia’s oil industry suffered devastating attacks as investors gauged the kingdom’s efforts to restore production.
Futures in New York settled down 1.4% to the lowest since before the Sept. 14 bombardment of Saudi oil installations. State oil producer Aramco has boosted total capacity to more than 11 million barrels a day, according to people with knowledge of the situation, a week earlier than forecast.
The “Saudis seem to be getting their output back on track,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Connecticut. “What we’ve given back is the geopolitical premium.”
West Texas Intermediate for November delivery settled 1.4% lower at $56.49 a barrel on the New York Mercantile Exchange. Brent for the same month closed down 1.1% to $62.39 on the ICE Futures Europe Exchange and traded at a $5.90 premium to WTI.
Wednesday, 25 September 2019
U.S. oil activity slumps amid rising price uncertainty: Fed survey - Reuters
U.S. oil activity slumps amid rising price uncertainty: Fed survey - Reuters:
U.S. oil and gas activity in some of the largest producing regions is declining, led by a weakening oilfield services sector as producers cut spending, according to an energy survey released on Wednesday by the Federal Reserve Bank of Dallas.
The Fed’s energy business activity index fell to negative 7.4 in the third quarter, the worst reading since early 2016. Activity in the services sector slumped by more than 28 points to negative 21.8.
Although oil production rose, service firms reported declines in activity, a sign that companies continue to do more with less. The equipment utilization index fell by 27 points to negative 24 for the quarter, the lowest reading since 2016, according to the report, which surveyed 163 energy firms this month in Texas, southern New Mexico and northern Louisiana.
U.S. oil and gas activity in some of the largest producing regions is declining, led by a weakening oilfield services sector as producers cut spending, according to an energy survey released on Wednesday by the Federal Reserve Bank of Dallas.
The Fed’s energy business activity index fell to negative 7.4 in the third quarter, the worst reading since early 2016. Activity in the services sector slumped by more than 28 points to negative 21.8.
Although oil production rose, service firms reported declines in activity, a sign that companies continue to do more with less. The equipment utilization index fell by 27 points to negative 24 for the quarter, the lowest reading since 2016, according to the report, which surveyed 163 energy firms this month in Texas, southern New Mexico and northern Louisiana.
#SaudiArabia’s oil output bounces back after attacks | Financial Times
Saudi Arabia’s oil output bounces back after attacks | Financial Times:
Saudi Arabia’s oil production has rebounded to more than 8m barrels a day following the attacks on energy infrastructure earlier this month, with the faster than expected recovery helping to push the oil price down below $62 on Wednesday.
The rise, shared with the Financial Times by two people briefed on the situation and corroborated by satellite heat maps of output from the fields, marks the restoration or substitution of more than three-quarters of lost production. It still leaves the kingdom’s output at least 1.5m barrels a day below the level it was before the attacks.
The recovery is quicker than analysts had been anticipating, with state oil company Saudi Aramco acting to fire up spare capacity at offshore fields and bring production back online, while restoring processing capacity at one of the damaged facilities.
Saudi Arabia’s oil production has rebounded to more than 8m barrels a day following the attacks on energy infrastructure earlier this month, with the faster than expected recovery helping to push the oil price down below $62 on Wednesday.
The rise, shared with the Financial Times by two people briefed on the situation and corroborated by satellite heat maps of output from the fields, marks the restoration or substitution of more than three-quarters of lost production. It still leaves the kingdom’s output at least 1.5m barrels a day below the level it was before the attacks.
The recovery is quicker than analysts had been anticipating, with state oil company Saudi Aramco acting to fire up spare capacity at offshore fields and bring production back online, while restoring processing capacity at one of the damaged facilities.
Oil Holds Declines After U.S. Crude Stocks Rise for Second Week - Bloomberg
Oil Holds Declines After U.S. Crude Stocks Rise for Second Week - Bloomberg:
Oil held declines after the U.S. government reported a build in nationwide crude inventories for the second consecutive week.
The Energy Information Administration said crude supplies rose 2.41 million barrels last week. At the Cushing, Oklahoma, storage hub, inventories rose 2.26 million barrels, the most since February and the first advance in 12 weeks.
West Texas Intermediate for November delivery dropped $1.41, or 2.6%, to $55.76 a barrel on the New York Mercantile Exchange at 10:36 a.m. local time. Brent for the same month slipped $1.67, or 2.7%, to $61.42 a barrel on the ICE Futures Europe Exchange, and traded at a $5.66 premium to WTI.
Oil held declines after the U.S. government reported a build in nationwide crude inventories for the second consecutive week.
The Energy Information Administration said crude supplies rose 2.41 million barrels last week. At the Cushing, Oklahoma, storage hub, inventories rose 2.26 million barrels, the most since February and the first advance in 12 weeks.
West Texas Intermediate for November delivery dropped $1.41, or 2.6%, to $55.76 a barrel on the New York Mercantile Exchange at 10:36 a.m. local time. Brent for the same month slipped $1.67, or 2.7%, to $61.42 a barrel on the ICE Futures Europe Exchange, and traded at a $5.66 premium to WTI.
Middle Eastern Bond Sales Surge as Yields Hit Record Lows - Bloomberg
Middle Eastern Bond Sales Surge as Yields Hit Record Lows - Bloomberg:
Middle Eastern and North African borrowers are issuing Eurobonds at a record pace as global monetary easing prompts them to exploit the lowest funding costs they’ve ever experienced.
This week Abu Dhabi sold $10 billion of bonds in its first international deal in two years, while Bahrain issued $2 billion of conventional and Shariah-compliant debt.
Sovereigns and companies from the region have raised around $85 billion of dollar and euro bonds this year. Saudi Aramco and Qatar have been the biggest issuers, while Egypt, Oman and Saudi Arabia have also come to market. The latter could sell more Eurobonds before the end of 2019, according to a research note from Morgan Stanley strategist Jaiparan Khurana. He also said Dubai may consider its first deal since late 2016.
Middle Eastern and North African borrowers are issuing Eurobonds at a record pace as global monetary easing prompts them to exploit the lowest funding costs they’ve ever experienced.
This week Abu Dhabi sold $10 billion of bonds in its first international deal in two years, while Bahrain issued $2 billion of conventional and Shariah-compliant debt.
Sovereigns and companies from the region have raised around $85 billion of dollar and euro bonds this year. Saudi Aramco and Qatar have been the biggest issuers, while Egypt, Oman and Saudi Arabia have also come to market. The latter could sell more Eurobonds before the end of 2019, according to a research note from Morgan Stanley strategist Jaiparan Khurana. He also said Dubai may consider its first deal since late 2016.
#Saudi Samba Financial Group sells $1 bln five-year bonds - Reuters
Saudi Samba Financial Group sells $1 bln five-year bonds - Reuters:
Saudi Arabia’s Samba Financial Group is set to raise $1 billion in five-year bonds, a document issued by one of the banks on the deal showed on Wednesday.
The bank, which ranks behind National Commercial Bank (NCB) and al Rajhi among Saudi banks by total assets, received orders in excess of $3.25 billion for the issuance, the document said.
The deal comes amid a flurry of international debt issuance from the Gulf region, as governments and companies take advantage of low global rates to raise cash amid low oil prices.
Saudi Arabia’s Samba Financial Group is set to raise $1 billion in five-year bonds, a document issued by one of the banks on the deal showed on Wednesday.
The bank, which ranks behind National Commercial Bank (NCB) and al Rajhi among Saudi banks by total assets, received orders in excess of $3.25 billion for the issuance, the document said.
The deal comes amid a flurry of international debt issuance from the Gulf region, as governments and companies take advantage of low global rates to raise cash amid low oil prices.
MIDEAST STOCKS-Egypt recovers some losses; #Saudi loses momentum - Reuters
MIDEAST STOCKS-Egypt recovers some losses; Saudi loses momentum - Reuters:
Egyptian stocks closed on a positive
note on Wednesday, recovering some losses from the previous
sessions, while Saudi retreated amid falling oil prices on the
backdrop of global political uncertainty.
Egypt's blue-chip index rebounded sharply to close
3.2% higher, snapping an eight-session losing streak, with 29
out of 30 stocks on the index rising.
The country's largest lender, Commercial International Bank
, jumped 5%, while Eastern Company advanced
4.7%.
Exchange data showed foreign investors were net buyers of
the stocks.
Egyptian stocks closed on a positive
note on Wednesday, recovering some losses from the previous
sessions, while Saudi retreated amid falling oil prices on the
backdrop of global political uncertainty.
Egypt's blue-chip index rebounded sharply to close
3.2% higher, snapping an eight-session losing streak, with 29
out of 30 stocks on the index rising.
The country's largest lender, Commercial International Bank
, jumped 5%, while Eastern Company advanced
4.7%.
Exchange data showed foreign investors were net buyers of
the stocks.
#Saudi Oil Capacity Recovers Faster Than Expected From Attack - Bloomberg
Saudi Oil Capacity Recovers Faster Than Expected From Attack - Bloomberg:
Saudi Arabia is recovering faster than expected from the biggest attacks ever on its oil industry, beating its own target for restoring capacity by about a week.
State oil producer Saudi Aramco has boosted total production capacity to more than 11 million barrels a day, according to people with knowledge of the situation. The news helped to push crude down by as much as 1.8% in London as the kingdom’s efforts to resolve the worst disruption of output in history help avert a global supply crisis.
The attacks this month by more than two dozen missiles and drones threw into doubt Saudi Arabia’s role as an anchor of stability in global energy markets and its ability to convince investors to buy shares in Aramco’s planned initial public offering. The U.S. blamed Iran for the strikes, the latest in a string of tanker bombings and pipeline assaults since May. Iran denied responsibility for the latest attacks which were claimed by Houthi rebels that the Saudis are battling in Yemen.
Saudi Arabia is recovering faster than expected from the biggest attacks ever on its oil industry, beating its own target for restoring capacity by about a week.
State oil producer Saudi Aramco has boosted total production capacity to more than 11 million barrels a day, according to people with knowledge of the situation. The news helped to push crude down by as much as 1.8% in London as the kingdom’s efforts to resolve the worst disruption of output in history help avert a global supply crisis.
The attacks this month by more than two dozen missiles and drones threw into doubt Saudi Arabia’s role as an anchor of stability in global energy markets and its ability to convince investors to buy shares in Aramco’s planned initial public offering. The U.S. blamed Iran for the strikes, the latest in a string of tanker bombings and pipeline assaults since May. Iran denied responsibility for the latest attacks which were claimed by Houthi rebels that the Saudis are battling in Yemen.
Aramco Is Said Set to Formally Announce Listing Plan Next Month - Bloomberg
Aramco Is Said Set to Formally Announce Listing Plan Next Month - Bloomberg:
Saudi Aramco is planning to formally announce the kickoff of its initial public offering next month, people with knowledge of the matter said.
The oil giant aims to announce its intention to float around Oct. 20, the people said, asking not to be identified because the information is private. The potential listing on the Saudi stock exchange could take place as early as November, though the timetable hasn’t been finalized, one of the people said.
Aramco is pushing ahead with its IPO preparations as the kingdom vows to bring oil production back to its full capacity by the end of the month after attacks on its facilities disabled 5% of global supply. The company’s production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week, people with knowledge of the situation said on Wednesday.
Saudi Aramco is planning to formally announce the kickoff of its initial public offering next month, people with knowledge of the matter said.
The oil giant aims to announce its intention to float around Oct. 20, the people said, asking not to be identified because the information is private. The potential listing on the Saudi stock exchange could take place as early as November, though the timetable hasn’t been finalized, one of the people said.
Aramco is pushing ahead with its IPO preparations as the kingdom vows to bring oil production back to its full capacity by the end of the month after attacks on its facilities disabled 5% of global supply. The company’s production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week, people with knowledge of the situation said on Wednesday.
Fitch Warns on $23 Billion of #Dubai Inc. Debt Held by Banks - Bloomberg
Fitch Warns on $23 Billion of Dubai Inc. Debt Held by Banks - Bloomberg:
A “significant portion” of $23 billion in loans made to Dubai government-related companies maturing at the end of 2021 may need to be restructured -- again, according to Fitch Ratings Ltd.
Banks in the United Arab Emirates -- still suffering the fallout of Dubai’s 2010 property crisis -- are at risk once again due to falling home prices and non-performing loans, the ratings agency said in a report on Tuesday.
Oversupply, weaker consumer sentiment due to lower oil prices and a less supportive economic environment are all impacting prices, according to Fitch. Foreign buyers have also been deterred by the U.A.E. dirham appreciation and geopolitical tensions.
A “significant portion” of $23 billion in loans made to Dubai government-related companies maturing at the end of 2021 may need to be restructured -- again, according to Fitch Ratings Ltd.
Banks in the United Arab Emirates -- still suffering the fallout of Dubai’s 2010 property crisis -- are at risk once again due to falling home prices and non-performing loans, the ratings agency said in a report on Tuesday.
Oversupply, weaker consumer sentiment due to lower oil prices and a less supportive economic environment are all impacting prices, according to Fitch. Foreign buyers have also been deterred by the U.A.E. dirham appreciation and geopolitical tensions.
#Saudi Aramco seeks project finance loan of more than $1 billion: sources - Reuters
Saudi Aramco seeks project finance loan of more than $1 billion: sources - Reuters:
Saudi Aramco has asked banks to submit proposals for a project finance loan of more than $1 billion, two sources with direct knowledge of the matter said.
The state oil company’s request for proposals (RFPs) was sent this week, one of the sources said.
It was not immediately clear from the RFP the specific nature of the projects the funds will be used for, the sources said.
Saudi Aramco has asked banks to submit proposals for a project finance loan of more than $1 billion, two sources with direct knowledge of the matter said.
The state oil company’s request for proposals (RFPs) was sent this week, one of the sources said.
It was not immediately clear from the RFP the specific nature of the projects the funds will be used for, the sources said.
Government measures will promote long-term growth of #Dubai real estate market: CEO of JLL MEA | ZAWYA MENA Edition
Government measures will promote long-term growth of Dubai real estate market: CEO of JLL MEA | ZAWYA MENA Edition:
With the market abuzz with commentary about excessive supply hurting property prices, Dubai’s real estate sector has begun to realise the need to control supply, a top executive of global real estate consulting firm JLL said.
“There has been a growing awareness that more needs to be done to both stimulate demand and control supply if a more balanced real estate market is to be created,” said Thierry Delvaux, CEO of JLL Middle East and Africa (MEA) in an email interview.
He said several steps taken by the government this year will contribute to this objective and help promote the long-term maturity and growth of the city’s real estate market.
With the market abuzz with commentary about excessive supply hurting property prices, Dubai’s real estate sector has begun to realise the need to control supply, a top executive of global real estate consulting firm JLL said.
“There has been a growing awareness that more needs to be done to both stimulate demand and control supply if a more balanced real estate market is to be created,” said Thierry Delvaux, CEO of JLL Middle East and Africa (MEA) in an email interview.
He said several steps taken by the government this year will contribute to this objective and help promote the long-term maturity and growth of the city’s real estate market.
Egypt to sell stakes in 5 or 6 state companies by end-June 2020-PM - Agricultural Commodities - Reuters
Egypt to sell stakes in 5 or 6 state companies by end-June 2020-PM - Agricultural Commodities - Reuters:
Egypt will offer stakes in five or six state-owned enterprises by the end of June 2020, Prime Minister Mostafa Madbouly said.
The share offerings will be made “to encourage the private sector and citizens to invest,” he said in a statement late on Tuesday.
Egypt will offer stakes in five or six state-owned enterprises by the end of June 2020, Prime Minister Mostafa Madbouly said.
The share offerings will be made “to encourage the private sector and citizens to invest,” he said in a statement late on Tuesday.
Sanctions-hit Iran props up economy with bartering, secret deals - Reuters
Sanctions-hit Iran props up economy with bartering, secret deals - Reuters:
Washington’s policy of applying “maximum pressure” on Iran with wide-ranging sanctions has shredded the country’s oil revenues, sent its economy into recession and devalued its national currency.
Yet Iran remains defiant in the face of U.S. efforts to compel it to accept tougher restrictions on its nuclear program and scale back support for proxy wars across the Middle East.
Iranian officials, business people and analysts say the country is staying on its feet by stepping up exports of non-oil goods and increasing tax revenues, but most importantly resorting to bartering, smuggling and back-room deals.
Washington’s policy of applying “maximum pressure” on Iran with wide-ranging sanctions has shredded the country’s oil revenues, sent its economy into recession and devalued its national currency.
Yet Iran remains defiant in the face of U.S. efforts to compel it to accept tougher restrictions on its nuclear program and scale back support for proxy wars across the Middle East.
Iranian officials, business people and analysts say the country is staying on its feet by stepping up exports of non-oil goods and increasing tax revenues, but most importantly resorting to bartering, smuggling and back-room deals.
Oil falls on Trump's bearish China trade comments - Reuters
Oil falls on Trump's bearish China trade comments - Reuters:
Oil prices fell for a second day on worries that fuel demand could fall after U.S. President Donald Trump doused recent optimism over China-U.S. trade talks, at a time of rising U.S. crude oil stockpiles.
Brent crude futures LCOc1 were down $1.03 cents to $62.07 a barrel by 0811 GMT on Wednesday, erasing all gains made after an attack on Saudi oil facilities sent the benchmark up around 20% last week.
Nevertheless, the benchmark remains on track for its first monthly gain since June.
U.S. West Texas Intermediate crude CLc1 dropped to $56.49 a barrel, down 80 cents.
Oil prices fell for a second day on worries that fuel demand could fall after U.S. President Donald Trump doused recent optimism over China-U.S. trade talks, at a time of rising U.S. crude oil stockpiles.
Brent crude futures LCOc1 were down $1.03 cents to $62.07 a barrel by 0811 GMT on Wednesday, erasing all gains made after an attack on Saudi oil facilities sent the benchmark up around 20% last week.
Nevertheless, the benchmark remains on track for its first monthly gain since June.
U.S. West Texas Intermediate crude CLc1 dropped to $56.49 a barrel, down 80 cents.
MIDEAST STOCKS-Most Gulf markets drop as global political uncertainty hits oil prices - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most Gulf markets drop as global political uncertainty hits oil prices - Agricultural Commodities - Reuters:
Most major Gulf stock markets fell on Wednesday as oil prices eased, while investors offloaded risky bets after an impeachment inquiry was launched against U.S. President Donald Trump, stoking political uncertainty in the world’s largest economy.
Oil prices fell for a second session on worries that fuel demand could drop after Trump doused recent optimism over China-U.S. trade talks.
Both crude benchmarks fell to their lowest levels since before the attacks on Saudi Arabian oil facilities on Sept. 14.
Brent crude futures were down $1.03 cents at $62.07 a barrel, as of 0811 GMT, while U.S. West Texas Intermediate crude dropped to $56.49 a barrel.
Most major Gulf stock markets fell on Wednesday as oil prices eased, while investors offloaded risky bets after an impeachment inquiry was launched against U.S. President Donald Trump, stoking political uncertainty in the world’s largest economy.
Oil prices fell for a second session on worries that fuel demand could drop after Trump doused recent optimism over China-U.S. trade talks.
Both crude benchmarks fell to their lowest levels since before the attacks on Saudi Arabian oil facilities on Sept. 14.
Brent crude futures were down $1.03 cents at $62.07 a barrel, as of 0811 GMT, while U.S. West Texas Intermediate crude dropped to $56.49 a barrel.
Subscribe to:
Posts (Atom)