Oil prices rise as OPEC pledges decision on supply - Reuters:
Oil prices rose on Thursday, buoyed by comments by the head of OPEC that the organization could take action to balance oil markets and will decide in December on supply for next year.
Secretary-General Mohammad Barkindo did not specify whether the Organization of the Petroleum Exporting Countries would extend a pact to rein in production to stabilize prices, but the comments appeared to inspire hope in the market.
“Barkindo was sending a signal that OPEC was serious about supporting prices,” said Phil Flynn, an analyst at Price Futures Group. “Between this and a possible China trade deal, the momentum has shifted.”
Global benchmark Brent crude futures LCOc1 settled up 78 cents or 1.3% at $59.10 a barrel. In post-settlement trade, Brent extended gains to rise $1 on the day to $59.32 a barrel. U.S. West Texas Intermediate (WTI) futures CLc1 were up 96 cents, or 1.8%, at $53.55 a barrel.
Thursday 10 October 2019
Saudis, Russia Fund to Sign $2 Billion in Deals During Putin’s Visit
Saudis, Russia Fund to Sign $2 Billion in Deals During Putin’s Visit:
Saudi Arabia will agree to invest about $2 billion in Russia in deals with the Russian Direct Investment Fund when President Vladimir Putin makes his first visit to the desert kingdom since 2007 next week, according to the head of the RDIF.
The two sides will announce more than 10 Saudi investment projects in Russia including in the petrochemical and agricultural sectors, Kirill Dmitriev, head of the Russian sovereign wealth fund, told reporters on a conference call Thursday. These are part of a promised $10 billion of Saudi commitments, of which more than $2.5 billion have already been disbursed, according to the RDIF.
Putin will visit Saudi Arabia on Oct. 14 and attend a meeting of the Russia-Saudi economic council, Kremlin foreign policy aide Yuri Ushakov told reporters at a Moscow briefing on Thursday. The Russian leader will visit the United Arab Emirates on Oct. 15, he said.
Saudi Arabia will agree to invest about $2 billion in Russia in deals with the Russian Direct Investment Fund when President Vladimir Putin makes his first visit to the desert kingdom since 2007 next week, according to the head of the RDIF.
The two sides will announce more than 10 Saudi investment projects in Russia including in the petrochemical and agricultural sectors, Kirill Dmitriev, head of the Russian sovereign wealth fund, told reporters on a conference call Thursday. These are part of a promised $10 billion of Saudi commitments, of which more than $2.5 billion have already been disbursed, according to the RDIF.
Putin will visit Saudi Arabia on Oct. 14 and attend a meeting of the Russia-Saudi economic council, Kremlin foreign policy aide Yuri Ushakov told reporters at a Moscow briefing on Thursday. The Russian leader will visit the United Arab Emirates on Oct. 15, he said.
Brazil raises $2.2 billion in oil auction; Total, Petronas invest big - Reuters
Brazil raises $2.2 billion in oil auction; Total, Petronas invest big - Reuters:
Ten companies on Thursday agreed to pay more than $2 billion for the exploration and production rights in 12 offshore oil blocks in Brazil, in what could be a promising sign for even bigger upcoming oil auctions.
The most heavily sought after areas in the Thursday auction directly border Brazil’s so-called pre-salt area, a coveted zone in which billions of barrels of oil are trapped under a thick layer of salt beneath the ocean floor.
Pre-salt blocks will be up for grabs in two much larger auctions scheduled for Nov. 6 and Nov. 7, including the so-called transfer-of-rights auction, which is expected to fetch around $25 billion for the government.
Ten companies on Thursday agreed to pay more than $2 billion for the exploration and production rights in 12 offshore oil blocks in Brazil, in what could be a promising sign for even bigger upcoming oil auctions.
The most heavily sought after areas in the Thursday auction directly border Brazil’s so-called pre-salt area, a coveted zone in which billions of barrels of oil are trapped under a thick layer of salt beneath the ocean floor.
Pre-salt blocks will be up for grabs in two much larger auctions scheduled for Nov. 6 and Nov. 7, including the so-called transfer-of-rights auction, which is expected to fetch around $25 billion for the government.
#AbuDhabi's Arabtec, Trojan hire advisers for potential merger: sources - Reuters
Abu Dhabi's Arabtec, Trojan hire advisers for potential merger: sources - Reuters:
Arabtec Holding ARTC.DU and Trojan Holding have mandated Swiss bank UBS (UBSG.S) and Dubai-listed Shuaa Capital SHUA.DU as advisers on a potential merger between the two United Arab Emirates construction firms, two sources with knowledge of the matter told Reuters.
Arabtec, which helped build the Louvre Abu Dhabi, said in September the two companies “commenced a review of the possibility of combining their construction businesses.”
The Gulf construction sector has slumped since a collapse in oil prices four years ago forced governments to rein in spending, leading to a debt crunch at some companies that operate across the Middle East.
Arabtec Holding ARTC.DU and Trojan Holding have mandated Swiss bank UBS (UBSG.S) and Dubai-listed Shuaa Capital SHUA.DU as advisers on a potential merger between the two United Arab Emirates construction firms, two sources with knowledge of the matter told Reuters.
Arabtec, which helped build the Louvre Abu Dhabi, said in September the two companies “commenced a review of the possibility of combining their construction businesses.”
The Gulf construction sector has slumped since a collapse in oil prices four years ago forced governments to rein in spending, leading to a debt crunch at some companies that operate across the Middle East.
OPEC chief says deeper oil cut an option amid weaker 2020 outlook - Reuters
OPEC chief says deeper oil cut an option amid weaker 2020 outlook - Reuters:
A deeper cut in oil supplies is among options for OPEC and its allies to consider in December, its secretary general said on Thursday as the producer group’s forecasts pointed to slower global growth and lower demand next year.
OPEC, Russia and other producers, an alliance known as OPEC+, have since January implemented a deal to cut oil output by 1.2 million barrels per day to support the market. The pact runs to March 2020 and the producers meet to set policy on Dec. 5-6.
“The conference will take appropriate, strong, positive decisions that will set us on the path of heightened and sustained stability for 2020,” Mohammad Barkindo told reporters at a briefing in London.
A deeper cut in oil supplies is among options for OPEC and its allies to consider in December, its secretary general said on Thursday as the producer group’s forecasts pointed to slower global growth and lower demand next year.
OPEC, Russia and other producers, an alliance known as OPEC+, have since January implemented a deal to cut oil output by 1.2 million barrels per day to support the market. The pact runs to March 2020 and the producers meet to set policy on Dec. 5-6.
“The conference will take appropriate, strong, positive decisions that will set us on the path of heightened and sustained stability for 2020,” Mohammad Barkindo told reporters at a briefing in London.
MIDEAST STOCKS-Egyptian stocks gain after inflation data, #Saudi extends losses - Reuters
MIDEAST STOCKS-Egyptian stocks gain after inflation data, Saudi extends losses - Reuters:
Egyptian blue-chip stocks rose on Thursday after data
showed consumer price inflation dropping to its lowest level in almost seven
years, while Saudi Arabia fell for a fourth straight session.
Egypt's annual urban consumer price inflation slowed to 4.8% in September
from 7.5% in August, clearing the way for the central bank to cut interest rates
further after two consecutive months of easing.
Inflation has been slowing in recent months as Egypt approaches the end of
an IMF-backed economic reform programme that saw the annual inflation rate rise
to 33% during 2017.
Egypt's blue-chip index closed 0.8% higher with market heavyweight
Commercial International Bank rising 0.3% and Cairo for Investment and
Real Estate Development adding 3.9%.
Egyptian blue-chip stocks rose on Thursday after data
showed consumer price inflation dropping to its lowest level in almost seven
years, while Saudi Arabia fell for a fourth straight session.
Egypt's annual urban consumer price inflation slowed to 4.8% in September
from 7.5% in August, clearing the way for the central bank to cut interest rates
further after two consecutive months of easing.
Inflation has been slowing in recent months as Egypt approaches the end of
an IMF-backed economic reform programme that saw the annual inflation rate rise
to 33% during 2017.
Egypt's blue-chip index closed 0.8% higher with market heavyweight
Commercial International Bank rising 0.3% and Cairo for Investment and
Real Estate Development adding 3.9%.
#Saudi Aramco IPO prospectus to be filed this month - report | ZAWYA MENA Edition
Saudi Aramco IPO prospectus to be filed this month - report | ZAWYA MENA Edition:
Saudi Aramco is expected to publish a prospectus for the initial public offering (IPO) before end of this month, the Wall Street Journal reported.
The prospectus will be published in Arabic on October 25 and in English two days later and will be followed by a book-building process in November during which the oil giant will test interest in the company’s shares, the Journal reported citing a document outlining the timeline, as seen by the financial paper.
A decision on whether to go ahead would likely be made after the book-building, the paper said.
Saudi Aramco is expected to publish a prospectus for the initial public offering (IPO) before end of this month, the Wall Street Journal reported.
The prospectus will be published in Arabic on October 25 and in English two days later and will be followed by a book-building process in November during which the oil giant will test interest in the company’s shares, the Journal reported citing a document outlining the timeline, as seen by the financial paper.
A decision on whether to go ahead would likely be made after the book-building, the paper said.
#Dubai's MAF explores partial credit card business sale in review: sources - Reuters
Dubai's MAF explores partial credit card business sale in review: sources - Reuters:
Dubai’s Majid Al Futtaim, which operates the Middle East franchise of French retailer Carrefour, is exploring options for its credit card business including enlisting partners to manage unsecured credit risk, two banking sources told Reuters.
The economy in Dubai is suffering from sluggish growth due to a real estate downturn and slowing global trade, hitting white-collar jobs and consumer spending.
MAF, a holding company which also owns and operates shopping centers in the Middle East and North Africa, hired U.S. investment bank Moelis & Co at the start of the summer to advise and manage the partial sale of its Najm credit cards, said the sources, who declined to be named.
Dubai’s Majid Al Futtaim, which operates the Middle East franchise of French retailer Carrefour, is exploring options for its credit card business including enlisting partners to manage unsecured credit risk, two banking sources told Reuters.
The economy in Dubai is suffering from sluggish growth due to a real estate downturn and slowing global trade, hitting white-collar jobs and consumer spending.
MAF, a holding company which also owns and operates shopping centers in the Middle East and North Africa, hired U.S. investment bank Moelis & Co at the start of the summer to advise and manage the partial sale of its Najm credit cards, said the sources, who declined to be named.
Oil attacks to hit #Saudi growth, but damage may be partially offset: World Bank - Reuters
Oil attacks to hit Saudi growth, but damage may be partially offset: World Bank - Reuters:
The attacks on Saudi Arabia’s oil facilities last month are expected to impact economic growth this year, the World Bank said in a report, adding that the decline could be partially offset by a boost in government spending in the non-oil sector.
Saudi Arabia’s gross domestic product (GDP) growth this year is forecast at 0.8%, down from an earlier World Bank estimate of 1.7% in April, pressured by oil production cuts and a worsening global outlook, according to the report.
The World Bank’s estimate is well below Saudi Arabia’s own expectations of around 1.9% GDP growth this year.
The attacks on Saudi Arabia’s oil facilities last month are expected to impact economic growth this year, the World Bank said in a report, adding that the decline could be partially offset by a boost in government spending in the non-oil sector.
Saudi Arabia’s gross domestic product (GDP) growth this year is forecast at 0.8%, down from an earlier World Bank estimate of 1.7% in April, pressured by oil production cuts and a worsening global outlook, according to the report.
The World Bank’s estimate is well below Saudi Arabia’s own expectations of around 1.9% GDP growth this year.
UPDATE 1- #UAE's BPGIC to expand storage capacity, refinery operations - Reuters
UPDATE 1-UAE's BPGIC to expand storage capacity, refinery operations - Reuters:
The United Arab Emirates’ Brooge Petroleum and Gas Investment Co (BPGIC) plans to boost crude oil storage capacity and expand refining facilities after managing to lease additional land in the bunkering hub of Fujairah, the company said on Thursday.
“BPGIC expects that ... could add storage and services capacity of ... 3.5 million cubic metres,” it said in a statement.
That amount is in addition to existing storage capacity of 1 million cubic metres across about 22 tanks for crude and oil products, BPGIC added.
The United Arab Emirates’ Brooge Petroleum and Gas Investment Co (BPGIC) plans to boost crude oil storage capacity and expand refining facilities after managing to lease additional land in the bunkering hub of Fujairah, the company said on Thursday.
“BPGIC expects that ... could add storage and services capacity of ... 3.5 million cubic metres,” it said in a statement.
That amount is in addition to existing storage capacity of 1 million cubic metres across about 22 tanks for crude and oil products, BPGIC added.
EU removes #UAE, Switzerland, Mauritius from tax haven lists - Reuters
EU removes UAE, Switzerland, Mauritius from tax haven lists - Reuters:
European Union finance ministers agreed to remove the United Arab Emirates, Switzerland and Mauritius from the bloc’s lists of countries deemed to be acting as tax havens, a move that activists called a “whitewash”.
The 28-nation EU set up a blacklist and a gray list of tax havens in December 2017 after revelations of widespread avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
Blacklisted states face reputational damage and stricter controls on transactions with the EU.
European Union finance ministers agreed to remove the United Arab Emirates, Switzerland and Mauritius from the bloc’s lists of countries deemed to be acting as tax havens, a move that activists called a “whitewash”.
The 28-nation EU set up a blacklist and a gray list of tax havens in December 2017 after revelations of widespread avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
Blacklisted states face reputational damage and stricter controls on transactions with the EU.
MIDEAST STOCKS-Gulf stocks subdued as investors cautious about U.S. China talks - Agricultural Commodities - Reuters
MIDEAST STOCKS-Gulf stocks subdued as investors cautious about U.S. China talks - Agricultural Commodities - Reuters:
Gulf stocks were largely flat on Thursday as a media report lowered expectations for a breakthrough in talks between the United States and China aimed at resolving a trade dispute.
Oil prices edged lower as the ongoing trade war between the world’s two largest oil consumers weighed on the global economy and fuel demand.
The United States and China made no progress in deputy-level trade talks held during Monday and Tuesday in Washington, the South China Morning Post reported, citing unnamed sources with knowledge of the meetings.
Gulf stocks were largely flat on Thursday as a media report lowered expectations for a breakthrough in talks between the United States and China aimed at resolving a trade dispute.
Oil prices edged lower as the ongoing trade war between the world’s two largest oil consumers weighed on the global economy and fuel demand.
The United States and China made no progress in deputy-level trade talks held during Monday and Tuesday in Washington, the South China Morning Post reported, citing unnamed sources with knowledge of the meetings.
Big Oil should rebel against its customers | Financial Times
Big Oil should rebel against its customers | Financial Times:
Big companies are rarely popular but Bernard Looney has become BP’s next chief executive at a particularly touchy moment. The Royal Shakespeare Company has withdrawn from a sponsorship deal with BP, citing the alienation of young theatregoers, and protesters have dubbed its head office in London a “crime scene”.
As Extinction Rebellion activists mounted protests against climate change this week, oil companies are as reviled as banks and tobacco companies. “Your dirty oil will kill us all,” an actress read during its event against oil majors including BP and Eni in July. Greta Thunberg, the 16-year-old environmental activist, is tipped to win the Nobel Peace Prize this week.
Big companies are rarely popular but Bernard Looney has become BP’s next chief executive at a particularly touchy moment. The Royal Shakespeare Company has withdrawn from a sponsorship deal with BP, citing the alienation of young theatregoers, and protesters have dubbed its head office in London a “crime scene”.
As Extinction Rebellion activists mounted protests against climate change this week, oil companies are as reviled as banks and tobacco companies. “Your dirty oil will kill us all,” an actress read during its event against oil majors including BP and Eni in July. Greta Thunberg, the 16-year-old environmental activist, is tipped to win the Nobel Peace Prize this week.
Small Ships Are Next Big Thing for $150 Billion LNG Market - Bloomberg
Small Ships Are Next Big Thing for $150 Billion LNG Market - Bloomberg:
Giant ocean-going tankers built the liquefied natural gas industry into a $150-billion-a-year business. The next expansion opportunity may come from ships a seventh of the normal size.
Fifty-five years after the first commercial LNG tanker sailed from Algeria, this segment of the gas industry is pushing into ever more niche markets, upending the economics of energy supply in the process.
Its next leap forward will be serving customers whose ports or budgets are too small to handle regular LNG tankers. Known as small-scale LNG, the idea is to make the fuel chilled to minus 160-degrees Celsius (256 Fahrenheit) accessible to factories, trucks, ships and even households. That’s set to spur production capacity growth of 58% over the next five years, more than double the pace of the industry in total.
Giant ocean-going tankers built the liquefied natural gas industry into a $150-billion-a-year business. The next expansion opportunity may come from ships a seventh of the normal size.
Fifty-five years after the first commercial LNG tanker sailed from Algeria, this segment of the gas industry is pushing into ever more niche markets, upending the economics of energy supply in the process.
Its next leap forward will be serving customers whose ports or budgets are too small to handle regular LNG tankers. Known as small-scale LNG, the idea is to make the fuel chilled to minus 160-degrees Celsius (256 Fahrenheit) accessible to factories, trucks, ships and even households. That’s set to spur production capacity growth of 58% over the next five years, more than double the pace of the industry in total.
Singapore’s Temasek Said to Rule Out Aramco IPO Investment - Bloomberg
Singapore’s Temasek Said to Rule Out Aramco IPO Investment - Bloomberg:
Singapore’s Temasek Holdings Pte has decided against investing in Saudi Aramco’s initial public offering, in part over environmental concerns, according to people familiar with the matter.
The world’s most-profitable company first flagged a public share sale in 2016 and is expected to list with a valuation of between $1.1 trillion to $2 trillion later this year. It’s been courting funds globally to act as cornerstone investors, including Temasek, which had a net portfolio value of S$313 billion ($227 billion) as of March 31.
But Temasek’s focus on sustainability and environmental, social and governance principles made it more difficult to support Aramco’s share sale, the people said, asking not to be identified because the discussions are private. Temasek has a 2030 goal to reduce the carbon emissions of its portfolio companies by 50%.
Singapore’s Temasek Holdings Pte has decided against investing in Saudi Aramco’s initial public offering, in part over environmental concerns, according to people familiar with the matter.
The world’s most-profitable company first flagged a public share sale in 2016 and is expected to list with a valuation of between $1.1 trillion to $2 trillion later this year. It’s been courting funds globally to act as cornerstone investors, including Temasek, which had a net portfolio value of S$313 billion ($227 billion) as of March 31.
But Temasek’s focus on sustainability and environmental, social and governance principles made it more difficult to support Aramco’s share sale, the people said, asking not to be identified because the discussions are private. Temasek has a 2030 goal to reduce the carbon emissions of its portfolio companies by 50%.
World’s Top Oil Traders See 2020 Prices Stuck in the $50s - Bloomberg
World’s Top Oil Traders See 2020 Prices Stuck in the $50s - Bloomberg:
As the oil industry’s top executives gathered in London for one of the most important events of the year their view on crude prices was clear: they’ll struggle next year.
Vitol SA Chief Executive Officer Russell Hardy told the Oil & Money conference on Wednesday that the ongoing U.S.-China trade dispute was curbing the outlook for crude prices which would be stuck in the $50s a year from now. The bosses of fellow commodity traders Trafigura Group Ltd. and Gunvor Group Ltd. agreed, at least in the short term.
“Without some resolution to the trade wars then we’ll remain a little bearish,” said Hardy.
As the oil industry’s top executives gathered in London for one of the most important events of the year their view on crude prices was clear: they’ll struggle next year.
Vitol SA Chief Executive Officer Russell Hardy told the Oil & Money conference on Wednesday that the ongoing U.S.-China trade dispute was curbing the outlook for crude prices which would be stuck in the $50s a year from now. The bosses of fellow commodity traders Trafigura Group Ltd. and Gunvor Group Ltd. agreed, at least in the short term.
“Without some resolution to the trade wars then we’ll remain a little bearish,” said Hardy.
Aramco’s Long-Delayed Mega-IPO Is Finally Set to Hit the Market - Bloomberg
Aramco’s Long-Delayed Mega-IPO Is Finally Set to Hit the Market - Bloomberg:
Crown Prince Mohammed bin Salman had only just started his rise to global notoriety when he stunned the global business community in early 2016 by promising to sell shares in the Saudi Arabian Oil Co., the state oil producer. Now, after several false starts, the initial public offering of Saudi Arabia’s crown jewel—Aramco, which pumps 10% of the global crude oil supply from abundant fields under the kingdom’s desert—is finally going ahead.
The government is set to make a formal announcement in late October, and the superlatives are likely to follow thick and fast: the biggest-ever share sale, the world’s most valuable company, the largest dividend payments in history. While details of the offer haven’t been made public, people involved in the transaction say about 2% of Aramco may be sold at a price that would value the entire company at $2 trillion, raising $40 billion and outstripping the $25 billion raised in 2014 by Chinese e-commerce giant Alibaba Group Holding Ltd. “Aramco is ready for listing whenever the shareholder makes a decision to list,” Chief Executive Officer Amin Nasser said last month. “It’s going to be very soon.”
Crown Prince Mohammed bin Salman had only just started his rise to global notoriety when he stunned the global business community in early 2016 by promising to sell shares in the Saudi Arabian Oil Co., the state oil producer. Now, after several false starts, the initial public offering of Saudi Arabia’s crown jewel—Aramco, which pumps 10% of the global crude oil supply from abundant fields under the kingdom’s desert—is finally going ahead.
The government is set to make a formal announcement in late October, and the superlatives are likely to follow thick and fast: the biggest-ever share sale, the world’s most valuable company, the largest dividend payments in history. While details of the offer haven’t been made public, people involved in the transaction say about 2% of Aramco may be sold at a price that would value the entire company at $2 trillion, raising $40 billion and outstripping the $25 billion raised in 2014 by Chinese e-commerce giant Alibaba Group Holding Ltd. “Aramco is ready for listing whenever the shareholder makes a decision to list,” Chief Executive Officer Amin Nasser said last month. “It’s going to be very soon.”
#Dubai property prices to soften further for remainder of 2019 | ZAWYA MENA Edition
Dubai property prices to soften further for remainder of 2019 | ZAWYA MENA Edition:
While rental rate declines in Dubai seem to be slowing down in the third quarter of 2019, the sale prices are forecast to see further softening for the remainder of this year, a report by real estate services firm Chestertons said.
With nearly 50,000 new units set to be delivered this year in Dubai, the emirate’s residential market is expected face the pressure of oversupply.
Average villa sale prices declined 3 percent in the third quarter, while apartment prices were down by 4 percent from the previous quarter.
While rental rate declines in Dubai seem to be slowing down in the third quarter of 2019, the sale prices are forecast to see further softening for the remainder of this year, a report by real estate services firm Chestertons said.
With nearly 50,000 new units set to be delivered this year in Dubai, the emirate’s residential market is expected face the pressure of oversupply.
Average villa sale prices declined 3 percent in the third quarter, while apartment prices were down by 4 percent from the previous quarter.
Oil prices dip on wilting hopes for U.S.-China trade deal - Reuters
Oil prices dip on wilting hopes for U.S.-China trade deal - Reuters:
Oil prices eased on Thursday on the expectations that the resumption of U.S.-China talks will not end the trade war between the world’s two largest oil consumers, exacerbating anxiety over the global economy and fuel demand.
China, the world’s biggest oil importer, has lowered expectations of a deal from the talks on Thursday and Friday to head off U.S. President Donald Trump’s proposed increase to the tariff rate on about $250 billion of Chinese goods to 30% from 25% on Oct. 15 if there are no signs of progress.
The dispute has disrupted global supply chains and slowed growth in the world’s two largest economies, curbing fuel consumption in both.
Global benchmark Brent crude futures LCOc1 fell 9 cents, or 0.2%, to $58.23 a barrel by 0654 GMT. U.S. West Texas Intermediate (WTI) futures CLc1 were down 12 cents, or 0.2%, at $52.47.
Oil prices eased on Thursday on the expectations that the resumption of U.S.-China talks will not end the trade war between the world’s two largest oil consumers, exacerbating anxiety over the global economy and fuel demand.
China, the world’s biggest oil importer, has lowered expectations of a deal from the talks on Thursday and Friday to head off U.S. President Donald Trump’s proposed increase to the tariff rate on about $250 billion of Chinese goods to 30% from 25% on Oct. 15 if there are no signs of progress.
The dispute has disrupted global supply chains and slowed growth in the world’s two largest economies, curbing fuel consumption in both.
Global benchmark Brent crude futures LCOc1 fell 9 cents, or 0.2%, to $58.23 a barrel by 0654 GMT. U.S. West Texas Intermediate (WTI) futures CLc1 were down 12 cents, or 0.2%, at $52.47.
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