Oil slides 2% as U.S. inventories build, weak economic data weighs - Reuters:
Oil prices fell more than 2% on Wednesday after official data showed a rise in U.S. crude inventories, adding to worries about an oversupplied market as weak economic readings in the United States depressed global financial markets.
Brent crude futures settled down $1.20, or 2%, at $57.69 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 98 cents, or 1.8%, to settle $52.64 a barrel.
Wall Street’s main indexes tumbled more than 2% as data suggested fallout from the U.S.-China trade war was hurting the U.S. labor market. World equity benchmarks hit their lowest levels in a month.
U.S. crude inventories rose 3.1 million barrels last week, the Energy Information Administration said, far exceeding analyst expectations for an increase of 1.6 million barrels.
Wednesday 2 October 2019
Buzz Around World Cup Fizzles to Put a Squeeze on Qatari Economy - Bloomberg updated
Buzz Around World Cup Fizzles to Put a Squeeze on Qatari Economy - Bloomberg:
Qatar’s economy looks far from top form as it wraps up a flurry of building projects for the 2022 soccer World Cup.
Now that rents are falling and much of stadium construction draws to a close, the toll is starting to wear on the $192 billion economy. Output excluding oil and gas extraction shrank for the first time since records began in 2012, dropping an annual 1.1% in the second quarter, according to Qatar’s Planning and Statistics Authority.
Construction, manufacturing, as well as wholesale and retail, are all in contraction, figures released Tuesday showed. Overall, the economy of the world’s largest exporter of liquefied-natural gas shrank 1.4% from a year earlier.
Qatar’s economy looks far from top form as it wraps up a flurry of building projects for the 2022 soccer World Cup.
Now that rents are falling and much of stadium construction draws to a close, the toll is starting to wear on the $192 billion economy. Output excluding oil and gas extraction shrank for the first time since records began in 2012, dropping an annual 1.1% in the second quarter, according to Qatar’s Planning and Statistics Authority.
Construction, manufacturing, as well as wholesale and retail, are all in contraction, figures released Tuesday showed. Overall, the economy of the world’s largest exporter of liquefied-natural gas shrank 1.4% from a year earlier.
Israeli Gas Shares Soar After Egypt Planned Supply Boost - Bloomberg
Israeli Gas Shares Soar After Egypt Planned Supply Boost - Bloomberg:
Israeli energy stocks surged after companies developing the country’s largest natural gas fields agreed to increase supply to their Egyptian customer as part of a landmark contract to help meet growing demand in the most populous Arab nation.
Partners in the Leviathan and Tamar offshore reservoirs, led by Israel’s Delek Group Ltd. and the Texas-based Noble Energy Inc., will send 85.3 billion cubic meters of natural gas to Egypt’s Dolphinus Holdings Ltd. over 15 years, according to a Tel Aviv Stock Exchange filing. That’s nearly 35% more than what was agreed on in 2018, when both sides signed a 10-year deal valued at $15 billion.
Shares in Delek gained 7.1% and those in partner Ratio Oil Exploration LP climbed 8.2% by 1:58p.m on Wednesday in Tel Aviv -- a rally that spread to other energy stocks. Delek Drilling gained 8.3%.
Israeli energy stocks surged after companies developing the country’s largest natural gas fields agreed to increase supply to their Egyptian customer as part of a landmark contract to help meet growing demand in the most populous Arab nation.
Partners in the Leviathan and Tamar offshore reservoirs, led by Israel’s Delek Group Ltd. and the Texas-based Noble Energy Inc., will send 85.3 billion cubic meters of natural gas to Egypt’s Dolphinus Holdings Ltd. over 15 years, according to a Tel Aviv Stock Exchange filing. That’s nearly 35% more than what was agreed on in 2018, when both sides signed a 10-year deal valued at $15 billion.
Shares in Delek gained 7.1% and those in partner Ratio Oil Exploration LP climbed 8.2% by 1:58p.m on Wednesday in Tel Aviv -- a rally that spread to other energy stocks. Delek Drilling gained 8.3%.
IEA ready to act in oil market if needed - Birol - Reuters
IEA ready to act in oil market if needed - Birol - Reuters:
The International Energy Agency (IEA) is in contact with officials in Saudi Arabia and other Middle East states, and is ready to act in the oil market if needed, the IEA’s executive director said on Wednesday.
“We are living in a dangerous world. Energy is at the cross roads of geopolitics of many countries, and especially so in the Middle East,” Fatih Birol said at a conference in Poland.
He said the IEA saw 2019 oil demand increasing by 1.1 million barrels per day, but said the forecast could be revised.
The International Energy Agency (IEA) is in contact with officials in Saudi Arabia and other Middle East states, and is ready to act in the oil market if needed, the IEA’s executive director said on Wednesday.
“We are living in a dangerous world. Energy is at the cross roads of geopolitics of many countries, and especially so in the Middle East,” Fatih Birol said at a conference in Poland.
He said the IEA saw 2019 oil demand increasing by 1.1 million barrels per day, but said the forecast could be revised.
MIDEAST STOCKS- #Dubai leads losses as Gulf tracks decline in global markets - Agricultural Commodities - Reuters
MIDEAST STOCKS-Dubai leads losses as Gulf tracks decline in global markets - Agricultural Commodities - Reuters:
Middle East stocks fell on Wednesday,
mirroring a decline in global shares, with Dubai particularly
hard hit as property companies declined sharply.
Global equity markets dropped after data showed the U.S.
manufacturing sector contracted in September to its weakest
level in more than a decade as business conditions deteriorated
further amid trade tensions between China and the United States.
Manufacturing activity in the euro zone also shrank at its
steepest rate in almost seven years last month, according to a
survey on Tuesday that suggested there would not be a turnaround
any time soon.
In Dubai, the index closed 1.3% lower, extending
losses for a second session with all its real estate stocks
tumbling. Blue-chip developer Emaar Properties plunged
4.8% to its lowest level since June 27, while its unit Emaar
Malls was down 1.6%.
Middle East stocks fell on Wednesday,
mirroring a decline in global shares, with Dubai particularly
hard hit as property companies declined sharply.
Global equity markets dropped after data showed the U.S.
manufacturing sector contracted in September to its weakest
level in more than a decade as business conditions deteriorated
further amid trade tensions between China and the United States.
Manufacturing activity in the euro zone also shrank at its
steepest rate in almost seven years last month, according to a
survey on Tuesday that suggested there would not be a turnaround
any time soon.
In Dubai, the index closed 1.3% lower, extending
losses for a second session with all its real estate stocks
tumbling. Blue-chip developer Emaar Properties plunged
4.8% to its lowest level since June 27, while its unit Emaar
Malls was down 1.6%.
OPEC’s Middle East Oil Flows Shrivel in Wake of Attacks on #Saudi - Bloomberg
OPEC’s Middle East Oil Flows Shrivel in Wake of Attacks on Saudi - Bloomberg:
Crude supplies from OPEC’s Middle East oil exporters fell to their lowest level since OPEC+ output cuts were introduced in January 2017 after an attack on two of Saudi Arabia’s largest oil processing facilities halted more than half the country’s oil production.
Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Iran, which together account for about three quarters of OPEC’s entire production, shipped an average of 14.81 million barrels a day of crude and condensate in September, tanker tracking data compiled by Bloomberg show. That was a drop of 736,000 barrels a day from August.
Crude supplies from OPEC’s Middle East oil exporters fell to their lowest level since OPEC+ output cuts were introduced in January 2017 after an attack on two of Saudi Arabia’s largest oil processing facilities halted more than half the country’s oil production.
Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Iran, which together account for about three quarters of OPEC’s entire production, shipped an average of 14.81 million barrels a day of crude and condensate in September, tanker tracking data compiled by Bloomberg show. That was a drop of 736,000 barrels a day from August.
Gulf Funds Sniff Profit as Putin’s Trash Czar Looks to Lenin - Bloomberg
Gulf Funds Sniff Profit as Putin’s Trash Czar Looks to Lenin - Bloomberg:
After decades of dumping trash in landfills across the country, Russia is plotting a waste-disposal revolution that its “rubbish czar” compares to the Bolshevik transformation of the nation with electricity after the 1917 takeover.
It’s a five-year plan that has some Gulf monarchies sniffing profit for their sovereign wealth funds by investing -- albeit modestly so far -- in a garbage-processing program that Russian officials view as a new lucrative industry for the country.
“This is on the same scale as the electrification of the country that happened under Lenin” during the early Soviet years, said Denis Butsayev, head of the state-run Russian Environmental Operator that’s in charge of most of the project, in an interview in his 51st-floor office overlooking the Moscow City business district. President Vladimir Putin signed an order creating the company in January.
After decades of dumping trash in landfills across the country, Russia is plotting a waste-disposal revolution that its “rubbish czar” compares to the Bolshevik transformation of the nation with electricity after the 1917 takeover.
It’s a five-year plan that has some Gulf monarchies sniffing profit for their sovereign wealth funds by investing -- albeit modestly so far -- in a garbage-processing program that Russian officials view as a new lucrative industry for the country.
“This is on the same scale as the electrification of the country that happened under Lenin” during the early Soviet years, said Denis Butsayev, head of the state-run Russian Environmental Operator that’s in charge of most of the project, in an interview in his 51st-floor office overlooking the Moscow City business district. President Vladimir Putin signed an order creating the company in January.
Rothschild, Moelis Compete for $15 Billion Binladin Debt Revamp - Bloomberg
Rothschild, Moelis Compete for $15 Billion Binladin Debt Revamp - Bloomberg:
Rothschild & Co. and Moelis & Co. have been shortlisted to advise on restructuring about $15 billion of debt at Saudi Arabia’s biggest construction firm, according to people with knowledge of the matter.
The boutique banks made pitches to Saudi Binladin Group last month for what would be one of the Middle East’s biggest debt revamps, the people said, asking not to be identified because the matter is private. Ken Moelis, the founder and chief executive officer of the eponymous investment bank, traveled to the kingdom to lead the process, one of the people said.
Goldman Sachs Group Inc. also pitched for an advisory role, but hasn’t been shortlisted, the people said. No final decisions have been made and Jeddah-based Binladin may decide not to hire an adviser, they said.
Rothschild & Co. and Moelis & Co. have been shortlisted to advise on restructuring about $15 billion of debt at Saudi Arabia’s biggest construction firm, according to people with knowledge of the matter.
The boutique banks made pitches to Saudi Binladin Group last month for what would be one of the Middle East’s biggest debt revamps, the people said, asking not to be identified because the matter is private. Ken Moelis, the founder and chief executive officer of the eponymous investment bank, traveled to the kingdom to lead the process, one of the people said.
Goldman Sachs Group Inc. also pitched for an advisory role, but hasn’t been shortlisted, the people said. No final decisions have been made and Jeddah-based Binladin may decide not to hire an adviser, they said.
Oil steadies amid fall in U.S. inventories, weak economic data - Reuters
Oil steadies amid fall in U.S. inventories, weak economic data - Reuters:
Oil steadied on Wednesday, following several days of declines, after industry data showed a surprise drop in U.S. crude inventories, although gains were capped as weak economic readings in the United States depressed global markets.
Brent crude futures, an international benchmark for oil prices, were up 20 cents to $59.09 a barrel at 1153 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 40 cents to $54.02 a barrel.
Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dropped to a 10-year low as U.S.-China trade tensions weighed on exports.
Oil steadied on Wednesday, following several days of declines, after industry data showed a surprise drop in U.S. crude inventories, although gains were capped as weak economic readings in the United States depressed global markets.
Brent crude futures, an international benchmark for oil prices, were up 20 cents to $59.09 a barrel at 1153 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 40 cents to $54.02 a barrel.
Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dropped to a 10-year low as U.S.-China trade tensions weighed on exports.
HSBC Group becomes major shareholder of its #Saudi subsidiary | ZAWYA MENA Edition
HSBC Group becomes major shareholder of its Saudi subsidiary | ZAWYA MENA Edition:
HSBC Group has become a majority shareholder in its Saudi Arabian subsidiary by acquiring shares from the Saudi British Bank (SABB).
HSBC Saudi Arabia is now a 51 percent-owned (indirect) subsidiary of HSBC Holdings plc, a statement by HSBC said.
In April 2019, SABB announced that it has entered into a binding agreement with HSBC for the sale of 1 million shares in HSBC Saudi Arabia, representing 2 percent of the issued share capital of HSBC Saudi Arabia, for a total value of 36 million Saudi riyals.
HSBC Group has become a majority shareholder in its Saudi Arabian subsidiary by acquiring shares from the Saudi British Bank (SABB).
HSBC Saudi Arabia is now a 51 percent-owned (indirect) subsidiary of HSBC Holdings plc, a statement by HSBC said.
In April 2019, SABB announced that it has entered into a binding agreement with HSBC for the sale of 1 million shares in HSBC Saudi Arabia, representing 2 percent of the issued share capital of HSBC Saudi Arabia, for a total value of 36 million Saudi riyals.
Moody's assigns Aa2 rating to #AbuDhabi's $10bln three-tranche bond | ZAWYA MENA Edition
Moody's assigns Aa2 rating to Abu Dhabi's $10bln three-tranche bond | ZAWYA MENA Edition:
Moody’s Investors Service has assigned Aa2 senior unsecured rating to the $10 billion, three tranche bond issued by the Government of Abu Dhabi on September 23.
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
Abu Dhabi issued $3 billion in five-year bonds, $3 billion in 10-year and $4 billion in 30-year notes, Reuters reported.
Moody’s Investors Service has assigned Aa2 senior unsecured rating to the $10 billion, three tranche bond issued by the Government of Abu Dhabi on September 23.
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
Abu Dhabi issued $3 billion in five-year bonds, $3 billion in 10-year and $4 billion in 30-year notes, Reuters reported.
#Dubai homes badged “affordable” as downturn continues | FT Property Listings
Dubai homes badged “affordable” as downturn continues | FT Property Listings:
While there are still ATMs in Dubai that dispense gold bars, homes there are less gilt-edged. The largest city in the United Arab Emirates (UAE) was recently declared the world’s third most affordable for prime residential property.
According to estate agent Savills, prime property in Dubai averaged $600 per square foot in June; of the world’s major cities only Kuala Lumpur and Cape Town were cheaper.
A combination of poor economic data, property market reform and oversupply saw prices in Dubai fall to almost 30 per cent below their 2014 peak at the beginning of this year, according to online property portal Bayut.
A slide in oil prices in 2015 sent Dubai’s wider economy into a protracted slowdown. Tensions with Iran and the UAE’s regional embargo on Qatar from 2017 reduced trade and compounded the city’s problems. Further, a new 5 per cent sales tax at the beginning of 2018 harmed Dubai’s attractiveness as a tax-free centre.
While there are still ATMs in Dubai that dispense gold bars, homes there are less gilt-edged. The largest city in the United Arab Emirates (UAE) was recently declared the world’s third most affordable for prime residential property.
According to estate agent Savills, prime property in Dubai averaged $600 per square foot in June; of the world’s major cities only Kuala Lumpur and Cape Town were cheaper.
A combination of poor economic data, property market reform and oversupply saw prices in Dubai fall to almost 30 per cent below their 2014 peak at the beginning of this year, according to online property portal Bayut.
A slide in oil prices in 2015 sent Dubai’s wider economy into a protracted slowdown. Tensions with Iran and the UAE’s regional embargo on Qatar from 2017 reduced trade and compounded the city’s problems. Further, a new 5 per cent sales tax at the beginning of 2018 harmed Dubai’s attractiveness as a tax-free centre.
Norway sovereign wealth fund to divest oil explorers, keep refiners - Reuters
Norway sovereign wealth fund to divest oil explorers, keep refiners - Reuters:
Norway’s $1.1 trillion sovereign fund will divest companies solely dedicated to oil and gas exploration and production in a bid to shield itself from a long-term fall in oil prices, the finance ministry said late on Tuesday.
The move will partly shift the world’s largest sovereign wealth fund away from oil and gas, as called for by the central bank, which had originally sought to remove all petroleum producers to protect the country if oil prices fell.
The fund will continue to maintain stakes in refiners and other downstream firms.
Norway’s $1.1 trillion sovereign fund will divest companies solely dedicated to oil and gas exploration and production in a bid to shield itself from a long-term fall in oil prices, the finance ministry said late on Tuesday.
The move will partly shift the world’s largest sovereign wealth fund away from oil and gas, as called for by the central bank, which had originally sought to remove all petroleum producers to protect the country if oil prices fell.
The fund will continue to maintain stakes in refiners and other downstream firms.
#UAE's ADNOC to look at potential bond issue - CFO - Reuters
UAE's ADNOC to look at potential bond issue - CFO - Reuters:
Abu Dhabi National Oil Co (ADNOC) will look at a potential bond issue, its group chief financial officer said on Wednesday.
Asked whether ADNOC would look at a bond issue in the first quarter of 2020, Mark Cutis said at a Bloomberg event: “We will take a look. These are historically low interest (rates), so if you’re not issuing, you’re making a big judgement call.”
ADNOC was given an AA credit rating by Fitch in February.
Abu Dhabi National Oil Co (ADNOC) will look at a potential bond issue, its group chief financial officer said on Wednesday.
Asked whether ADNOC would look at a bond issue in the first quarter of 2020, Mark Cutis said at a Bloomberg event: “We will take a look. These are historically low interest (rates), so if you’re not issuing, you’re making a big judgement call.”
ADNOC was given an AA credit rating by Fitch in February.
#Dubai ready to take on more debt if needed - economic adviser - Reuters
Dubai ready to take on more debt if needed - economic adviser - Reuters:
Dubai continues to service its debt and is ready to take on more if needed, an economic official said on Wednesday, adding that current debt was $124 billion.
“We continue to service the debt on time, as scheduled. We are ready to take on more debt, if need be,” Raed Safadi, the chief economic advisor at Dubai’s Department of Economic Development, said at an event.
His comments came after Reuters had reported on Sept. 10, citing sources, that the government of Dubai has held talks with banks about a potential issue of U.S. dollar-denominated bonds, in what would be its first international debt sale since 2013.
Dubai continues to service its debt and is ready to take on more if needed, an economic official said on Wednesday, adding that current debt was $124 billion.
“We continue to service the debt on time, as scheduled. We are ready to take on more debt, if need be,” Raed Safadi, the chief economic advisor at Dubai’s Department of Economic Development, said at an event.
His comments came after Reuters had reported on Sept. 10, citing sources, that the government of Dubai has held talks with banks about a potential issue of U.S. dollar-denominated bonds, in what would be its first international debt sale since 2013.
MIDEAST STOCKS-Global stocks decline weighs on Gulf markets - Reuters
MIDEAST STOCKS-Global stocks decline weighs on Gulf markets - Reuters:
Most major Gulf equity markets fell in early trading on Wednesday, taking their cue from global stocks which dropped following weak economic data in the United States and Europe.
The U.S. manufacturing sector contracted in September to its weakest level in more than a decade as business conditions deteriorated further amid trade tensions between China and the United States.
Manufacturing activity in the euro zone contracted at its steepest rate in almost seven years last month, according to a survey on Tuesday that suggested there would not be a turnaround any time soon.
Most major Gulf equity markets fell in early trading on Wednesday, taking their cue from global stocks which dropped following weak economic data in the United States and Europe.
The U.S. manufacturing sector contracted in September to its weakest level in more than a decade as business conditions deteriorated further amid trade tensions between China and the United States.
Manufacturing activity in the euro zone contracted at its steepest rate in almost seven years last month, according to a survey on Tuesday that suggested there would not be a turnaround any time soon.
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