Oil Extends Losing Streak as Economic Woes Cloud Demand Outlook - Bloomberg:
West Texas Intermediate for November delivery settled down 19 cents to $52.45 a barrel on the New York Mercantile Exchange.
Brent for December settlement rose 2 cents to close at $57.71 on the ICE Futures Europe Exchange. The global benchmark crude traded at a $5.35 premium to WTI for the same month.
Thursday 3 October 2019
Adnoc Is Said to Kick Off $5 Billion Gas Pipeline Lease Deal - Bloomberg
Adnoc Is Said to Kick Off $5 Billion Gas Pipeline Lease Deal - Bloomberg:
Abu Dhabi’s government-owned energy giant has kicked off the potential sale of a stake in its natural gas pipelines, in a deal that could fetch about $5 billion, people with knowledge of the matter said.
Abu Dhabi National Oil Co., producer of about a tenth of OPEC’s oil, is seeking to bring in outside investors to take a minority interest in the gas pipeline network, according to the people. It has started a formal process and sent information on the assets to potential bidders, the people said, asking not to be identified because the information is private.
The sale is likely to draw interest from infrastructure funds and private equity firms, the people said. Adnoc, as the company is known, aims to reach an agreement in the first half of next year, the people said.
Abu Dhabi’s government-owned energy giant has kicked off the potential sale of a stake in its natural gas pipelines, in a deal that could fetch about $5 billion, people with knowledge of the matter said.
Abu Dhabi National Oil Co., producer of about a tenth of OPEC’s oil, is seeking to bring in outside investors to take a minority interest in the gas pipeline network, according to the people. It has started a formal process and sent information on the assets to potential bidders, the people said, asking not to be identified because the information is private.
The sale is likely to draw interest from infrastructure funds and private equity firms, the people said. Adnoc, as the company is known, aims to reach an agreement in the first half of next year, the people said.
Saudi Arabia Can’t Escape Khashoggi’s Shadow - Bloomberg
Saudi Arabia Can’t Escape Khashoggi’s Shadow - Bloomberg:
Last October, a few days after the murder of the Washington Post columnist Jamal Khashoggi, I found myself in the thicket of TV cameras outside the Saudi Arabian consulate in Istanbul. Standing a few dozen feet from the scene of the crime, I marveled at the international attention being devoted to the killing of a member of my professional tribe—and wondered how long this interest would last.
A few weeks, I guessed, maybe a couple of months; my professional cynicism doesn’t allow for much optimism.
For journalists, murder is an occupational hazard. In the year of Khashoggi’s murder alone, 53 journalists were killed, at least 34 of them as a direct consequence of their work. Only a handful of those murders made the international headlines — the four Capital Gazette journalists shot dead by a gunman in Annapolis, Raed Fares of Radio Fresh, assassinated by the regime in Syria — and even then, just for a few days. I reckoned the Khashoggi killing would fade from the collective memory in the same way.
Last October, a few days after the murder of the Washington Post columnist Jamal Khashoggi, I found myself in the thicket of TV cameras outside the Saudi Arabian consulate in Istanbul. Standing a few dozen feet from the scene of the crime, I marveled at the international attention being devoted to the killing of a member of my professional tribe—and wondered how long this interest would last.
A few weeks, I guessed, maybe a couple of months; my professional cynicism doesn’t allow for much optimism.
For journalists, murder is an occupational hazard. In the year of Khashoggi’s murder alone, 53 journalists were killed, at least 34 of them as a direct consequence of their work. Only a handful of those murders made the international headlines — the four Capital Gazette journalists shot dead by a gunman in Annapolis, Raed Fares of Radio Fresh, assassinated by the regime in Syria — and even then, just for a few days. I reckoned the Khashoggi killing would fade from the collective memory in the same way.
In a Sated Oil Market, #SaudiArabia Attack Sinks Without Trace - Bloomberg
In a Sated Oil Market, Saudi Arabia Attack Sinks Without Trace - Bloomberg:
It was the nightmare scenario dreaded by oil markets for decades: a direct strike right at the heart of Saudi Arabia’s energy production network. But when it finally came last month, crude traders almost immediately lost interest.
Although oil prices surged the most on record after a barrage of missiles and drones blasted the Abqaiq processing facility and Khurais oilfield on Sept. 14 -- instantly disabling half of Saudi output -- the gains have since evaporated. Crude is back below $60 a barrel, partly because Saudi Aramco has restored production so swiftly, but also reflecting deeper challenges afflicting the market.
With a faltering global economy and fears of recession eroding oil demand, combined with a relentless tide of American shale-oil offering alternative supply, the kind of shock that would once have sent prices rocketing has barely left a ripple.
It was the nightmare scenario dreaded by oil markets for decades: a direct strike right at the heart of Saudi Arabia’s energy production network. But when it finally came last month, crude traders almost immediately lost interest.
Although oil prices surged the most on record after a barrage of missiles and drones blasted the Abqaiq processing facility and Khurais oilfield on Sept. 14 -- instantly disabling half of Saudi output -- the gains have since evaporated. Crude is back below $60 a barrel, partly because Saudi Aramco has restored production so swiftly, but also reflecting deeper challenges afflicting the market.
With a faltering global economy and fears of recession eroding oil demand, combined with a relentless tide of American shale-oil offering alternative supply, the kind of shock that would once have sent prices rocketing has barely left a ripple.
Top Gulf Economies Show What Difference Stimulus Can Make: Chart - Bloomberg
Top Gulf Economies Show What Difference Stimulus Can Make: Chart - Bloomberg:
The two biggest Gulf Arab economies are increasingly out of sync. While business conditions in the United Arab Emirates slumped to the weakest in more than nine years, activity in Saudi Arabia rose at the quickest pace since 2017, according to IHS Markit. The U.A.E. has effectively tightened fiscal policy over the past two years, but “government spending in Saudi Arabia is still the primary engine for that non-oil sector growth,” said Khatija Haque, head of Middle East and North Africa research at Dubai’s biggest bank, Emirates NBD.
The two biggest Gulf Arab economies are increasingly out of sync. While business conditions in the United Arab Emirates slumped to the weakest in more than nine years, activity in Saudi Arabia rose at the quickest pace since 2017, according to IHS Markit. The U.A.E. has effectively tightened fiscal policy over the past two years, but “government spending in Saudi Arabia is still the primary engine for that non-oil sector growth,” said Khatija Haque, head of Middle East and North Africa research at Dubai’s biggest bank, Emirates NBD.
‘Very exciting’ project to be unveiled during Putin visit to Saudi Arabia | ZAWYA MENA Edition
‘Very exciting’ project to be unveiled during Putin visit to Saudi Arabia | ZAWYA MENA Edition:
Russia and Saudi Arabia are planning to clinch a raft of business and investment deals worth hundreds of millions of dollars during the forthcoming state visit by President Putin to the Kingdom, according to one of the leaders of the Russian business scene.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, told Arab News that there would be new business deals in the oil industry, agriculture, tourism and petrochemicals.
Speaking on the sidelines of the Russia Energy Week summit in Moscow, he said: “We are going to be signing more than 10 new investment agreements between Russia and Saudi Arabia.
“One example is a joint investment with Saudi Aramco in Novomet, a Russian pumps manufacturer, one of the leaders of the industry, supplying pumps to Saudi Aramco, which will be investing with RDIF in this company,” he said.
Russia and Saudi Arabia are planning to clinch a raft of business and investment deals worth hundreds of millions of dollars during the forthcoming state visit by President Putin to the Kingdom, according to one of the leaders of the Russian business scene.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, told Arab News that there would be new business deals in the oil industry, agriculture, tourism and petrochemicals.
Speaking on the sidelines of the Russia Energy Week summit in Moscow, he said: “We are going to be signing more than 10 new investment agreements between Russia and Saudi Arabia.
“One example is a joint investment with Saudi Aramco in Novomet, a Russian pumps manufacturer, one of the leaders of the industry, supplying pumps to Saudi Aramco, which will be investing with RDIF in this company,” he said.
Landmark pact: Global oil producers, gas exporters join hands for first time | ZAWYA MENA Edition
Landmark pact: Global oil producers, gas exporters join hands for first time | ZAWYA MENA Edition:
The Organisation of the Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF) have signed a Memorandum of Understanding (MoU) to strengthen cooperation in research and sharing of best practices, it was announced on Thursday.
The agreement was signed in Moscow by Mohammad Sanusi Barkindo, Secretary General of OPEC, and his GECF counterpart, Yury Sentyurin on the side lines of Russian Energy Week, GECF said in a press statement.
According to the statement, areas of cooperation identified in the MoU include energy market monitoring, analysis, modelling and forecasting; energy market research studies and their methodologies; energy market data and statistics, data and statistical operational topics; energy initiatives and developments aimed at sustainability, along with environmental and social responsibility.
The Organisation of the Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF) have signed a Memorandum of Understanding (MoU) to strengthen cooperation in research and sharing of best practices, it was announced on Thursday.
The agreement was signed in Moscow by Mohammad Sanusi Barkindo, Secretary General of OPEC, and his GECF counterpart, Yury Sentyurin on the side lines of Russian Energy Week, GECF said in a press statement.
According to the statement, areas of cooperation identified in the MoU include energy market monitoring, analysis, modelling and forecasting; energy market research studies and their methodologies; energy market data and statistics, data and statistical operational topics; energy initiatives and developments aimed at sustainability, along with environmental and social responsibility.
MIDEAST STOCKS-Blue-chip sell-off dents Egypt, most major Gulf markets fall - Reuters
MIDEAST STOCKS-Blue-chip sell-off dents Egypt, most major Gulf markets fall - Reuters:
The Egyptian blue-chip index fell sharply
on Thursday, pressured by banks amid weak global sentiment,
while most major Gulf markets ended lower on falling oil prices.
The benchmark oil price slipped further below $58 a barrel
on Thursday on concerns about global economic growth, oil demand
and signs of excess supply despite OPEC-led cuts.
Egypt's blue-chip index declined 1.1% with the
country's largest lender Commercial International Bank
dipping 0.4%, while EFG Hermes was down 2.6%.
Activity in Egypt's non-oil private sector rose fractionally
in September but remained in contraction territory for the
second consecutive month, a survey showed on Thursday.
The Egyptian blue-chip index fell sharply
on Thursday, pressured by banks amid weak global sentiment,
while most major Gulf markets ended lower on falling oil prices.
The benchmark oil price slipped further below $58 a barrel
on Thursday on concerns about global economic growth, oil demand
and signs of excess supply despite OPEC-led cuts.
Egypt's blue-chip index declined 1.1% with the
country's largest lender Commercial International Bank
dipping 0.4%, while EFG Hermes was down 2.6%.
Activity in Egypt's non-oil private sector rose fractionally
in September but remained in contraction territory for the
second consecutive month, a survey showed on Thursday.
The men making a fortune from #Syria’s war | Financial Times
The men making a fortune from Syria’s war | Financial Times:
This summer, a pair of Syrian brothers journeyed across Europe. Their story did not begin with a rubber dinghy afloat on the Aegean and a scramble for safety on to a Greek island: a well-worn route for many Syrian refugees fleeing a conflict that has lasted eight years and taken an estimated half a million lives.
Instead, these brothers landed in Cannes; their transportation, a plane, then a pair of Ferraris; their extravagances documented on social media and culminating on the party island of Mykonos.
Mohammad and Ali are the sons of Syria’s richest man, Rami Makhlouf, who also happens to be the Syrian president Bashar al-Assad’s cousin and childhood playmate.
This summer, a pair of Syrian brothers journeyed across Europe. Their story did not begin with a rubber dinghy afloat on the Aegean and a scramble for safety on to a Greek island: a well-worn route for many Syrian refugees fleeing a conflict that has lasted eight years and taken an estimated half a million lives.
Instead, these brothers landed in Cannes; their transportation, a plane, then a pair of Ferraris; their extravagances documented on social media and culminating on the party island of Mykonos.
Mohammad and Ali are the sons of Syria’s richest man, Rami Makhlouf, who also happens to be the Syrian president Bashar al-Assad’s cousin and childhood playmate.
As Oil Prices Sink Again, OPEC+ Ministers Stick to Their Plan - Bloomberg
As Oil Prices Sink Again, OPEC+ Ministers Stick to Their Plan - Bloomberg:
As crude prices sink again -- completely erasing the surge caused by attacks on Saudi Arabia -- OPEC+ ministers acknowledged the growing risks to oil demand but gave no indication of a change in strategy.
“Of course, demand is affected by the status of the global economy, and the economy is slowing down,” Russian Energy Minister Alexander Novak said in Moscow. “There are no crisis events that call for an emergency meeting.”
Less than three weeks after missile and drone strikes on Saudi Arabia’s main oil facility caused a record price spike, crude has slipped below $60 again in London. The kingdom has now stabilized output back at pre-attack levels and investors are once again turning their focus to signs of an economic slowdown.
As crude prices sink again -- completely erasing the surge caused by attacks on Saudi Arabia -- OPEC+ ministers acknowledged the growing risks to oil demand but gave no indication of a change in strategy.
“Of course, demand is affected by the status of the global economy, and the economy is slowing down,” Russian Energy Minister Alexander Novak said in Moscow. “There are no crisis events that call for an emergency meeting.”
Less than three weeks after missile and drone strikes on Saudi Arabia’s main oil facility caused a record price spike, crude has slipped below $60 again in London. The kingdom has now stabilized output back at pre-attack levels and investors are once again turning their focus to signs of an economic slowdown.
Aramco Needs More Than Bourse’s Invisible Hand to Buoy Its Stock - Bloomberg
Aramco Needs More Than Bourse’s Invisible Hand to Buoy Its Stock - Bloomberg:
Saudi Aramco’s shares, when they’re finally issued, may just prove to be havens in a volatile region. At least in the beginning.
Given the wide-spread speculation that government-related funds prop up the market when times are bad, some investors assume shares of Saudi Arabian Oil Co. wouldn’t be allowed to perform badly, especially given the hype around the initial public offering.
But even if they do, the support probably won’t be enough to keep global fund managers invested in Aramco’s stock for long, despite the company’s intrinsic ties to the kingdom and its finances.
Saudi Aramco’s shares, when they’re finally issued, may just prove to be havens in a volatile region. At least in the beginning.
Given the wide-spread speculation that government-related funds prop up the market when times are bad, some investors assume shares of Saudi Arabian Oil Co. wouldn’t be allowed to perform badly, especially given the hype around the initial public offering.
But even if they do, the support probably won’t be enough to keep global fund managers invested in Aramco’s stock for long, despite the company’s intrinsic ties to the kingdom and its finances.
#UAE private sector growth falls to nine-year low: PMI - Reuters
UAE private sector growth falls to nine-year low: PMI - Reuters:
Growth in the United Arab Emirates’s non-oil private sector slowed to a nine-year low in September, amid record low new orders reflecting soft demand, a survey showed on Thursday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, fell slightly to 51.1, from 51.6 in August.
Although the non-oil sector remained in growth territory — figures above 50 indicate expansion and below that, contraction –- it was the UAE’s weakest growth rate since May 2010.
Growth in the United Arab Emirates’s non-oil private sector slowed to a nine-year low in September, amid record low new orders reflecting soft demand, a survey showed on Thursday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, fell slightly to 51.1, from 51.6 in August.
Although the non-oil sector remained in growth territory — figures above 50 indicate expansion and below that, contraction –- it was the UAE’s weakest growth rate since May 2010.
#Saudi has restored oil output after attacks, focused on Aramco IPO: energy minister - Reuters
Saudi has restored oil output after attacks, focused on Aramco IPO: energy minister - Reuters:
Saudi Arabia has fully restored oil output after attacks on its facilities last month and is now focused on the listing of Saudi Aramco, its energy minister Prince Abdulaziz bin Salman said.
The kingdom’s oil production capacity now stands at 11.3 million barrels per day, he told a Moscow energy conference on Thursday, adding: “We all rose to the challenge”.
“We have stabilized production capacity, we are at 11.3... We still have the kit and the tools to overcome any future challenges...”
Saudi Arabia has fully restored oil output after attacks on its facilities last month and is now focused on the listing of Saudi Aramco, its energy minister Prince Abdulaziz bin Salman said.
The kingdom’s oil production capacity now stands at 11.3 million barrels per day, he told a Moscow energy conference on Thursday, adding: “We all rose to the challenge”.
“We have stabilized production capacity, we are at 11.3... We still have the kit and the tools to overcome any future challenges...”
Oil prices steady, give up gains as economic gloom dims demand prospects - Reuters
Oil prices steady, give up gains as economic gloom dims demand prospects - Reuters:
Oil futures were largely flat on Thursday, reversing gains made earlier in the day, as fears over the worsening global economic outlook that hit prices hard in the previous session offset modest hopes for progress in resolving the U.S.-China trade war.
Brent crude oil futures LCOc1 were 3 cents lower, or 0.1%, to $57.66 a barrel by 0657 GMT, after tumbling 2% in the previous session.
Meanwhile U.S. West Texas Intermediate (WTI) crude CLc futures were up 9 cents, or 0.2%, to $52.73 a barrel, after sinking by 1.8% on Wednesday.
Oil futures were largely flat on Thursday, reversing gains made earlier in the day, as fears over the worsening global economic outlook that hit prices hard in the previous session offset modest hopes for progress in resolving the U.S.-China trade war.
Brent crude oil futures LCOc1 were 3 cents lower, or 0.1%, to $57.66 a barrel by 0657 GMT, after tumbling 2% in the previous session.
Meanwhile U.S. West Texas Intermediate (WTI) crude CLc futures were up 9 cents, or 0.2%, to $52.73 a barrel, after sinking by 1.8% on Wednesday.
MIDEAST STOCKS-Banks, petchems drag #Saudi lower - Reuters
MIDEAST STOCKS-Banks, petchems drag Saudi lower - Reuters:
The Saudi Arabian stock market fell in early trade on Thursday as banking and petrochemical shares declined, while other Gulf markets were mixed.
Saudi Arabia’s index slipped 0.7% extending losses for a third day, with Al Rjahi Bank and the country’s largest lender National Commercial Bank both falling 1%.
The Gulf’s biggest petrochemical maker Saudi Basic Industries (SABIC) shed 0.8% and Sahara International Petrochemical (Sipchem), which traded ex-dividend, plunged 4.3%.
The Saudi Arabian stock market fell in early trade on Thursday as banking and petrochemical shares declined, while other Gulf markets were mixed.
Saudi Arabia’s index slipped 0.7% extending losses for a third day, with Al Rjahi Bank and the country’s largest lender National Commercial Bank both falling 1%.
The Gulf’s biggest petrochemical maker Saudi Basic Industries (SABIC) shed 0.8% and Sahara International Petrochemical (Sipchem), which traded ex-dividend, plunged 4.3%.
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