Oil Industry Consolidation to Increase: Tom Petrie - Bloomberg:
Tom Petrie, chairman at Petrie Partners, discusses how the U.S.-China trade war impacts the global oil market, Saudi Arabian capacity after oil facility attacks, and the prospect of oil industry consolidation. Sarah Hunt, portfolio manager at Alpine Woods joins the conversation on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
Tuesday, 8 October 2019
#Abu Dhabi's Aldar hires banks for dollar sukuk - Reuters
Abu Dhabi's Aldar hires banks for dollar sukuk - Reuters:
Aldar Investment Properties, a fully owned subsidiary of Abu Dhabi’s largest developer Aldar Properties, has hired banks to arrange investor meetings ahead of a planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks showed.
Aldar, 37.3% indirectly owned by Abu Dhabi’s sovereign wealth fund Mubadala, has mandated a group of banks including Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered to lead the potential deal.
Subject to market conditions, it is planning to sell a sukuk with a 10-year maturity and of benchmark size, which generally means upwards of $500 million, the document said.
Aldar Investment Properties, a fully owned subsidiary of Abu Dhabi’s largest developer Aldar Properties, has hired banks to arrange investor meetings ahead of a planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks showed.
Aldar, 37.3% indirectly owned by Abu Dhabi’s sovereign wealth fund Mubadala, has mandated a group of banks including Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered to lead the potential deal.
Subject to market conditions, it is planning to sell a sukuk with a 10-year maturity and of benchmark size, which generally means upwards of $500 million, the document said.
Exclusive: #Saudi central bank vets local lenders ahead of Aramco IPO – sources - Reuters
Exclusive: Saudi central bank vets local lenders ahead of Aramco IPO – sources - Reuters:
The Saudi central bank is vetting local lenders’ exposure to Saudi Aramco ahead of an initial public offering (IPO) of the state-oil giant that will likely see large numbers of Saudi investors seek loans to buy its stock, three sources familiar with the matter said.
The Saudi Arabian Monetary Authority, or SAMA, contacted Saudi banks last week, asking them a series of questions about their lending exposure to Aramco, two of the sources said.
Saudi investors are expected to be large buyers of Aramco shares, partly because of a “patriotic” push to own a piece of the kingdom’s crown jewels after an attack on oil facilities last month crippled Saudi crude production and exposed the country’s defense vulnerabilities.
The Saudi central bank is vetting local lenders’ exposure to Saudi Aramco ahead of an initial public offering (IPO) of the state-oil giant that will likely see large numbers of Saudi investors seek loans to buy its stock, three sources familiar with the matter said.
The Saudi Arabian Monetary Authority, or SAMA, contacted Saudi banks last week, asking them a series of questions about their lending exposure to Aramco, two of the sources said.
Saudi investors are expected to be large buyers of Aramco shares, partly because of a “patriotic” push to own a piece of the kingdom’s crown jewels after an attack on oil facilities last month crippled Saudi crude production and exposed the country’s defense vulnerabilities.
Hariri says #UAE promised #Lebanon aid after high-stakes talks - Reuters
Hariri says UAE promised Lebanon aid after high-stakes talks - Reuters:
Lebanese Prime Minister Saad al-Hariri said on Tuesday the United Arab Emirates has promised investments and financial aid to his deeply indebted country, though work remains to seal the deal, after two days of high-stakes talks in Abu Dhabi.
Hariri, who led a Lebanese delegation to the allied Gulf state, was seeking funds to stem a sharp loss of investor and depositor confidence that has pressured Lebanon’s currency and strained its lenders and central bank.
While the UAE had made no announcement about funding by Tuesday evening, any sort of relief could buy Beirut time as it looks to shore up dollar reserves and begin enacting fiscal reforms it has long promised with little progress.
Lebanese Prime Minister Saad al-Hariri said on Tuesday the United Arab Emirates has promised investments and financial aid to his deeply indebted country, though work remains to seal the deal, after two days of high-stakes talks in Abu Dhabi.
Hariri, who led a Lebanese delegation to the allied Gulf state, was seeking funds to stem a sharp loss of investor and depositor confidence that has pressured Lebanon’s currency and strained its lenders and central bank.
While the UAE had made no announcement about funding by Tuesday evening, any sort of relief could buy Beirut time as it looks to shore up dollar reserves and begin enacting fiscal reforms it has long promised with little progress.
Former Barclays bankers lied about Qatari fees in 2008, fraud trial hears - Reuters
Former Barclays bankers lied about Qatari fees in 2008, fraud trial hears - Reuters:
Three former Barclays (BARC.L) executives lied to the market by hiding 322 million pounds ($395 million) in extra fees that the bank paid Qatar in return for vital funding during the global credit crisis, a prosecutor told a London court on Tuesday.
The case, one of the most high-profile brought by the UK Serious Fraud Office (SFO), revolves around undisclosed payments to Qatar as Barclays raised more than 11 billion pounds from investors in 2008 to avert a state bailout.
Opening the case for the prosecution, Edward Brown alleged that Roger Jenkins, Tom Kalaris and Richard Boath pretended commissions paid to Qatar in 2008 were fees for separate, commercially valuable advisory services agreements (ASAs).
Three former Barclays (BARC.L) executives lied to the market by hiding 322 million pounds ($395 million) in extra fees that the bank paid Qatar in return for vital funding during the global credit crisis, a prosecutor told a London court on Tuesday.
The case, one of the most high-profile brought by the UK Serious Fraud Office (SFO), revolves around undisclosed payments to Qatar as Barclays raised more than 11 billion pounds from investors in 2008 to avert a state bailout.
Opening the case for the prosecution, Edward Brown alleged that Roger Jenkins, Tom Kalaris and Richard Boath pretended commissions paid to Qatar in 2008 were fees for separate, commercially valuable advisory services agreements (ASAs).
#Kuwait Finance gains central bank approval for Ahli United takeover - Reuters
Kuwait Finance gains central bank approval for Ahli United takeover - Reuters:
Kuwait Finance House has received conditional approval from Kuwait’s central bank for its proposed acquisition of Bahrain’s Ahli United Bank.
The deal depends on a number of requirements to ensure adherence to Islamic Sharia, transparency and protection of free competition, the central bank said in a statement.
KFH announced its plan to take over the Bahraini lender in January.
Kuwait Finance House has received conditional approval from Kuwait’s central bank for its proposed acquisition of Bahrain’s Ahli United Bank.
The deal depends on a number of requirements to ensure adherence to Islamic Sharia, transparency and protection of free competition, the central bank said in a statement.
KFH announced its plan to take over the Bahraini lender in January.
Aviation and tourism's share to #UAE GDP seen at $128 billion in 20-years: IATA - Reuters
Aviation and tourism's share to UAE GDP seen at $128 billion in 20-years: IATA - Reuters:
The share of the aviation and tourism sector in United Arab Emirates’s (UAE) economy will more than double in the next two decades to $128 billion, an official of the International Air Transport Association (IATA) said on Tuesday.
Currently they contribute $47.4 billion to the UAE’s gross domestic product (GDP), accounting for 13% of its GDP, said Mohammad Albakri, regional vice president of Africa & Middle East at an IATA event.
UAE’s aviation and tourism market is likely to support 1.4 million jobs in the next 20 years, from 800,000 jobs now, he said.
The share of the aviation and tourism sector in United Arab Emirates’s (UAE) economy will more than double in the next two decades to $128 billion, an official of the International Air Transport Association (IATA) said on Tuesday.
Currently they contribute $47.4 billion to the UAE’s gross domestic product (GDP), accounting for 13% of its GDP, said Mohammad Albakri, regional vice president of Africa & Middle East at an IATA event.
UAE’s aviation and tourism market is likely to support 1.4 million jobs in the next 20 years, from 800,000 jobs now, he said.
Oil eases on concerns over U.S.-China talks, weak demand signals - Reuters
Oil eases on concerns over U.S.-China talks, weak demand signals - Reuters:
Oil prices slid about 1% on Tuesday as Washington’s blacklisting of more Chinese companies dampened hopes for a trade deal between the two countries, although unrest in Iraq and Ecuador lent some support to crude prices.
Both Brent crude LCOc1 and West Texas Intermediate (WTI) CLc1 crude had risen by more than 1% earlier in the day. By 1:09 p.m. ET (1459 GMT) Brent was down 45 cents, or 0.8%, at $57.90 a barrel and WTI CLc1 was down 49 cents, or 0.9%, at $52.26.
Investors are treading cautiously before U.S.-China trade talks in Washington on Thursday. Prospects for progress dimmed after U.S. President Donald Trump said a quick trade deal was unlikely.
Oil prices slid about 1% on Tuesday as Washington’s blacklisting of more Chinese companies dampened hopes for a trade deal between the two countries, although unrest in Iraq and Ecuador lent some support to crude prices.
Both Brent crude LCOc1 and West Texas Intermediate (WTI) CLc1 crude had risen by more than 1% earlier in the day. By 1:09 p.m. ET (1459 GMT) Brent was down 45 cents, or 0.8%, at $57.90 a barrel and WTI CLc1 was down 49 cents, or 0.9%, at $52.26.
Investors are treading cautiously before U.S.-China trade talks in Washington on Thursday. Prospects for progress dimmed after U.S. President Donald Trump said a quick trade deal was unlikely.
Sport-Global piracy will burst media rights 'bubble', says beIN boss - Reuters
Sport-Global piracy will burst media rights 'bubble', says beIN boss - Reuters:
The sports media rights “bubble” is about to burst because of global broadcast piracy and the business model will have to be overhauled, the head of Qatar-based beIN Media Group said on Tuesday.
Chief executive Yousef Al-Obaidly told the Leaders Week Sport Business Summit in London that beIN now regarded all sports rights as non-exclusive, and future commercial offers would reflect that.
“I’m here to tell you how the endless growth of sports rights is over,” he said. “Not only that, but in certain cases, rights values are going drop off a cliff, and the very economic model of our industry is going to be rewritten.
The sports media rights “bubble” is about to burst because of global broadcast piracy and the business model will have to be overhauled, the head of Qatar-based beIN Media Group said on Tuesday.
Chief executive Yousef Al-Obaidly told the Leaders Week Sport Business Summit in London that beIN now regarded all sports rights as non-exclusive, and future commercial offers would reflect that.
“I’m here to tell you how the endless growth of sports rights is over,” he said. “Not only that, but in certain cases, rights values are going drop off a cliff, and the very economic model of our industry is going to be rewritten.
MIDEAST STOCKS-Oil price fall weighs on Gulf markets, #Saudi leads losses - Reuters
MIDEAST STOCKS-Oil price fall weighs on Gulf markets, Saudi leads losses - Reuters:
All major Gulf stock markets traded lower on Tuesday with
financial shares suffering the biggest losses across the region amid declining
oil prices.
Saudi Arabia led the declines as most of the kingdom's banks dropped.
Oil prices fell as hopes faded for a trade deal between the United States
and China, after Washington blacklisted more Chinese companies.
The two main benchmarks of crude oil fell 1.3% and 1.5% by
1035 GMT, after having risen almost 1% earlier in the day.
Saudi Arabia's index closed down 0.6% with Al Rjahi Bank
and Samba Financial Group shedding 1.3% each.
All major Gulf stock markets traded lower on Tuesday with
financial shares suffering the biggest losses across the region amid declining
oil prices.
Saudi Arabia led the declines as most of the kingdom's banks dropped.
Oil prices fell as hopes faded for a trade deal between the United States
and China, after Washington blacklisted more Chinese companies.
The two main benchmarks of crude oil fell 1.3% and 1.5% by
1035 GMT, after having risen almost 1% earlier in the day.
Saudi Arabia's index closed down 0.6% with Al Rjahi Bank
and Samba Financial Group shedding 1.3% each.
Why #SaudiArabia's Delayed Aramco IPO Is No Ordinary Share Sale - Bloomberg
Why Saudi Arabia's Delayed Aramco IPO Is No Ordinary Share Sale - Bloomberg:
It makes more profit than any other company in the world, but is it the most valuable? The answer could come as soon as November, when Saudi Aramco is finally set to go ahead with a mammoth initial public offering. The delayed share sale is part of a grand vision to reshape Saudi Arabia’s economy by the kingdom’s controversial Crown Prince Mohammed bin Salman. It’s no ordinary IPO, and not just because of its size.
1. What’s different?
Saudi Arabia is leaning on its allies and subjects to help out. Wealthy families in the kingdom, some of which had members detained and accused of corruption by the government two years ago, have been encouraged to invest. Saudi Arabia is also trying to convince sovereign wealth funds to join the fray.
It makes more profit than any other company in the world, but is it the most valuable? The answer could come as soon as November, when Saudi Aramco is finally set to go ahead with a mammoth initial public offering. The delayed share sale is part of a grand vision to reshape Saudi Arabia’s economy by the kingdom’s controversial Crown Prince Mohammed bin Salman. It’s no ordinary IPO, and not just because of its size.
1. What’s different?
Saudi Arabia is leaning on its allies and subjects to help out. Wealthy families in the kingdom, some of which had members detained and accused of corruption by the government two years ago, have been encouraged to invest. Saudi Arabia is also trying to convince sovereign wealth funds to join the fray.
Big Oil Is Selling Its Dirty Assets, But They Aren’t Going Away - Bloomberg
Big Oil Is Selling Its Dirty Assets, But They Aren’t Going Away - Bloomberg:
When BP Plc announced its historic exit from Alaska, Chief Executive Officer Bob Dudley pointed to an extra perk from the $5.6 billion sale: a significantly lower carbon footprint.
Cutting emissions is important for Dudley, partly because influential shareholders are forcing BP to align its spending to climate goals. But there’s a catch.
Hilcorp Energy Co., the buyer of the Alaska assets, plans to pour more money to boost production there than BP would have, according to Dudley. That could end up making the carbon problem worse than it was.
When BP Plc announced its historic exit from Alaska, Chief Executive Officer Bob Dudley pointed to an extra perk from the $5.6 billion sale: a significantly lower carbon footprint.
Cutting emissions is important for Dudley, partly because influential shareholders are forcing BP to align its spending to climate goals. But there’s a catch.
Hilcorp Energy Co., the buyer of the Alaska assets, plans to pour more money to boost production there than BP would have, according to Dudley. That could end up making the carbon problem worse than it was.
Sanctions have led to #Iran's oil industry falling behind: Iran oil minister - Reuters
Sanctions have led to Iran's oil industry falling behind: Iran oil minister - Reuters:
Sanctions have led to Iran’s oil industry falling behind but Iran will resist, Iranian Oil Minister Bijan Zanganeh said on Tuesday, according to the semi-official Mehr news agency.
“The conditions in Iran are in a way that once every few years the oil industry receives a deadly blow and the economic sanctions can be considered one of those,” he said. “This has caused Iran’s oil industry to fall behind from the international position and space but we will resist in this area.”
Sanctions have led to Iran’s oil industry falling behind but Iran will resist, Iranian Oil Minister Bijan Zanganeh said on Tuesday, according to the semi-official Mehr news agency.
“The conditions in Iran are in a way that once every few years the oil industry receives a deadly blow and the economic sanctions can be considered one of those,” he said. “This has caused Iran’s oil industry to fall behind from the international position and space but we will resist in this area.”
Oil climbs on Iraq and Ecuador unrest, regional tensions - Reuters
Oil climbs on Iraq and Ecuador unrest, regional tensions - Reuters:
Oil prices increased on Tuesday as unrest in Iraq and Ecuador raised supply concerns, but worries about U.S.-China trade negotiations capped the market’s gains after U.S. President Donald Trump said a quick deal was unlikely.
Brent crude LCOc1 rose 43 cents, or 0.7%, to $58.78 a barrel by 0903 GMT. U.S. West Texas Intermediate crude CLc1 was at $53.12, up 37 cents, or 0.7%.
Protests in OPEC members Iraq and Ecuador threatened to disrupt their oil output. The death toll in Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries, has climbed after a week of unrest.
Oil prices increased on Tuesday as unrest in Iraq and Ecuador raised supply concerns, but worries about U.S.-China trade negotiations capped the market’s gains after U.S. President Donald Trump said a quick deal was unlikely.
Brent crude LCOc1 rose 43 cents, or 0.7%, to $58.78 a barrel by 0903 GMT. U.S. West Texas Intermediate crude CLc1 was at $53.12, up 37 cents, or 0.7%.
Protests in OPEC members Iraq and Ecuador threatened to disrupt their oil output. The death toll in Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries, has climbed after a week of unrest.
MIDEAST STOCKS- #Saudi stocks fall, led by banks, petchems, after Fitch downgrade - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks fall, led by banks, petchems, after Fitch downgrade - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market fell in early trade on Tuesday, with financial services leading the declines.
Petrochemical shares also fell after Fitch downgraded oil giant Saudi Aramco (IPO-ARMO.SE) and Saudi Basic Industries Corporation (SABIC), following mid-September attacks on the kingdom’s oil facilities.
Fitch on Monday downgraded Saudi Aramco and SABIC to A from A+ after the attacks last month on two oil production facilities. It also considered rising geopolitical tensions in the region and the country’s continued fiscal deficit.
Saudi Arabia’s stock market fell in early trade on Tuesday, with financial services leading the declines.
Petrochemical shares also fell after Fitch downgraded oil giant Saudi Aramco (IPO-ARMO.SE) and Saudi Basic Industries Corporation (SABIC), following mid-September attacks on the kingdom’s oil facilities.
Fitch on Monday downgraded Saudi Aramco and SABIC to A from A+ after the attacks last month on two oil production facilities. It also considered rising geopolitical tensions in the region and the country’s continued fiscal deficit.
$10 Oil - How Far Could Oil Prices Fall If We See A 2009 Style Crash? | OilPrice.com
$10 Oil - How Far Could Oil Prices Fall If We See A 2009 Style Crash? | OilPrice.com:
While predictions about volatile oil prices abound, one theme keeps popping up: geopolitical risk premium. First it was theories about a closure at the Strait of Hormuz. Then it was fears of an all-out war between Iran and the United States or Iran and Saudi Arabia. All those are merely possibilities, but the reality suggests that a whole different kind of extreme is far more likely: crushingly low oil prices.
In amongst the screams of geopolitical risk premium are far scarier whispers of words such as demand destruction, trade disputes, and economic climate deterioration. And those words describe the current reality in the market, and as such, suggest a similar future reality—a reality where demand destruction continues to push prices down, down, down. Is $10 oil really possible?
While predictions about volatile oil prices abound, one theme keeps popping up: geopolitical risk premium. First it was theories about a closure at the Strait of Hormuz. Then it was fears of an all-out war between Iran and the United States or Iran and Saudi Arabia. All those are merely possibilities, but the reality suggests that a whole different kind of extreme is far more likely: crushingly low oil prices.
In amongst the screams of geopolitical risk premium are far scarier whispers of words such as demand destruction, trade disputes, and economic climate deterioration. And those words describe the current reality in the market, and as such, suggest a similar future reality—a reality where demand destruction continues to push prices down, down, down. Is $10 oil really possible?
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