Oil rises 1.4% on hopes OPEC will extend supply cuts, weaker U.S. dollar - Reuters:
Oil rose about 1.4% on Wednesday, gaining support due to signs that OPEC and allied producers will continue to curb supplies in December, a weaker U.S. dollar and as traders covered short positions ahead of an industry report on U.S. crude inventories.
Brent crude LCOc1, the global benchmark, rose 81 cents, or 1.38%, to $59.55 a barrel by 12:25 p.m. CDT. U.S. crude CLc1 gained 72 cents, or 1.36%, to $53.63.
The Organization of the Petroleum Exporting Countries and its allies meet on Dec. 5-6 in Vienna to review output policy.
Market participants believe the group known as OPEC+ could decide to extend production cuts “and wait until world demand catches up with the supply situation,” said Andy Lipow, president of Lipow Oil Associates in Houston.
Wednesday 16 October 2019
Oil Market’s Big Data Show OPEC+ Will Have to Cut Output Again - Bloomberg
Oil Market’s Big Data Show OPEC+ Will Have to Cut Output Again - Bloomberg:
The OPEC+ group of oil producers will need to make deeper output cuts when they meet in December. That’s the inescapable conclusion from the latest round of monthly reports published by the three big oil-forecasting agencies.
The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see global oil inventories building in the first half of next year, as they almost unanimously cut their forecasts for oil demand growth for 2019 and 2020.
Saudi Arabia’s oil production is expected to be back this month to where it was before the attacks on the Abqaiq and Khurais oil-processing plants on Sept. 14. If that pumping rate is maintained, global oil inventories will rise by somewhere between 750,000 barrels and 1.4 million barrels a day over the first half of the coming year — depending on whose forecast you take. That would add at least 136 million barrels to global oil stockpiles
The OPEC+ group of oil producers will need to make deeper output cuts when they meet in December. That’s the inescapable conclusion from the latest round of monthly reports published by the three big oil-forecasting agencies.
The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see global oil inventories building in the first half of next year, as they almost unanimously cut their forecasts for oil demand growth for 2019 and 2020.
Saudi Arabia’s oil production is expected to be back this month to where it was before the attacks on the Abqaiq and Khurais oil-processing plants on Sept. 14. If that pumping rate is maintained, global oil inventories will rise by somewhere between 750,000 barrels and 1.4 million barrels a day over the first half of the coming year — depending on whose forecast you take. That would add at least 136 million barrels to global oil stockpiles
IBM’s London Landlord Plans Expansion of Brutalist Landmark - Bloomberg
IBM’s London Landlord Plans Expansion of Brutalist Landmark - Bloomberg:
The owner of the IBM building on London’s river Thames plans to seek approval to remodel and extend the property and lease most of it back to the technology giant.
Dubai-based investment company Easa Saleh Al Gurg Group will ask local authorities for permission to expand the building, a brutalist 1970s landmark, by about 50%, according to people with knowledge of the matter.
International Business Machines Corp. has been in the current building for nearly four decades, and talks are under way on a new long-term lease for IBM to occupy about two thirds of the enlarged site, said the people, who asked not to be identified because the plans are private. There’s no certainty that a lease will be signed, the people said.
The owner of the IBM building on London’s river Thames plans to seek approval to remodel and extend the property and lease most of it back to the technology giant.
Dubai-based investment company Easa Saleh Al Gurg Group will ask local authorities for permission to expand the building, a brutalist 1970s landmark, by about 50%, according to people with knowledge of the matter.
International Business Machines Corp. has been in the current building for nearly four decades, and talks are under way on a new long-term lease for IBM to occupy about two thirds of the enlarged site, said the people, who asked not to be identified because the plans are private. There’s no certainty that a lease will be signed, the people said.
Explainer: Translating TOR - How Brazil's $26 billion oil rights auction works - Reuters
Explainer: Translating TOR - How Brazil's $26 billion oil rights auction works - Reuters:
Brazil’s Senate passed the main text of a bill late on Tuesday defining the distribution of proceeds from a blockbuster auction of oil prospecting rights, a key milestone for the enormous offshore region known as TOR - the ‘transfer-of-rights’ area.
The bidders who win exploration and production rights in the massive Nov. 6 auction will be obliged to pay the government a combined signing bonus of some 106.5 billion reais ($25.8 billion), making it the largest oil bidding round in history, according to Brazilian authorities.
The fields are unique as Brazilian state-run oil firm Petroleo Brasileiro SA, better known as Petrobras, has already done significant exploration work in the area. As a result, it is already known to hold billions of barrels of untapped crude, reducing so-called exploratory risk.
Brazil’s Senate passed the main text of a bill late on Tuesday defining the distribution of proceeds from a blockbuster auction of oil prospecting rights, a key milestone for the enormous offshore region known as TOR - the ‘transfer-of-rights’ area.
The bidders who win exploration and production rights in the massive Nov. 6 auction will be obliged to pay the government a combined signing bonus of some 106.5 billion reais ($25.8 billion), making it the largest oil bidding round in history, according to Brazilian authorities.
The fields are unique as Brazilian state-run oil firm Petroleo Brasileiro SA, better known as Petrobras, has already done significant exploration work in the area. As a result, it is already known to hold billions of barrels of untapped crude, reducing so-called exploratory risk.
AP Analysis: Gulf Arab states worry after US Syria pullout
AP Analysis: Gulf Arab states worry after US Syria pullout:
For decades considered a U.S. national security priority, the Persian Gulf remains home to tens of thousands of American troops spread across sprawling bases protecting crucial routes for global energy supplies.
But while U.S.-Iran tensions in the Gulf appeared close to sparking a global conflagration this summer, attention now rapidly has shifted to Syria in a conflict that no less has impact here.
Countries across the Persian Gulf wonder what they should take away from President Donald Trump’s withdrawal of American forces from Syria after apparently acquiescing to Turkey’s invasion of Kurdish territory.
For decades considered a U.S. national security priority, the Persian Gulf remains home to tens of thousands of American troops spread across sprawling bases protecting crucial routes for global energy supplies.
But while U.S.-Iran tensions in the Gulf appeared close to sparking a global conflagration this summer, attention now rapidly has shifted to Syria in a conflict that no less has impact here.
Countries across the Persian Gulf wonder what they should take away from President Donald Trump’s withdrawal of American forces from Syria after apparently acquiescing to Turkey’s invasion of Kurdish territory.
COLUMN-Towards a post-American Middle East: Peter Apps - Reuters
COLUMN-Towards a post-American Middle East: Peter Apps - Reuters:
As protests spread across the Arab world in late 2010 and early 2011, the Obama administration struggled to decide a strategy. Torn between sticking with the autocratic strongmen who had long been America’s allies or democracy-seeking protesters on the streets, it lurched one way and then the other, only rarely committing completely to an outcome.
How much influence Washington ever had over events in the region remains an open question. Obama’s most decisive action – to intervene militarily in Libya to oust Muammar Gaddafi - unquestionably defined events there, although the unending conflict and instability since were hardly the preferred outcome. In Egypt, the United States ultimately did nothing to stop the military regaining power, while in Syria support for those attempting to oust Bashar al-Assad was never more than lukewarm. Only when it came to defeating Islamic State was the United States truly committed militarily, and events of last week suggest that under Donald Trump even that can no longer be taken for granted.
As protests spread across the Arab world in late 2010 and early 2011, the Obama administration struggled to decide a strategy. Torn between sticking with the autocratic strongmen who had long been America’s allies or democracy-seeking protesters on the streets, it lurched one way and then the other, only rarely committing completely to an outcome.
How much influence Washington ever had over events in the region remains an open question. Obama’s most decisive action – to intervene militarily in Libya to oust Muammar Gaddafi - unquestionably defined events there, although the unending conflict and instability since were hardly the preferred outcome. In Egypt, the United States ultimately did nothing to stop the military regaining power, while in Syria support for those attempting to oust Bashar al-Assad was never more than lukewarm. Only when it came to defeating Islamic State was the United States truly committed militarily, and events of last week suggest that under Donald Trump even that can no longer be taken for granted.
UPDATE 1-Emirate of #Sharjah to raise $750 mln in sukuk - Reuters
UPDATE 1-Emirate of Sharjah to raise $750 mln in sukuk - Reuters:
Sharjah, the third-largest emirate of the United Arab Emirates, is set to raise on Wednesday $750 million in 10-year sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed.
Sharjah started marketing the notes at around 185 basis points over mid-swaps earlier on Wednesday but hefty demand meant it was able to tighten spreads to 155 basis points.
It received orders in excess of $3.2 billion, according to the document.
The debt sale comes amid a flurry of U.S. dollar-denominated debt issues in the Gulf, as governments and companies take advantage of low global rates to raise cheap debt and atrract yield-seeking buyers.
Sharjah, the third-largest emirate of the United Arab Emirates, is set to raise on Wednesday $750 million in 10-year sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed.
Sharjah started marketing the notes at around 185 basis points over mid-swaps earlier on Wednesday but hefty demand meant it was able to tighten spreads to 155 basis points.
It received orders in excess of $3.2 billion, according to the document.
The debt sale comes amid a flurry of U.S. dollar-denominated debt issues in the Gulf, as governments and companies take advantage of low global rates to raise cheap debt and atrract yield-seeking buyers.
#AbuDhabi's Etihad sets up low-cost airline with Air Arabia - Reuters
Abu Dhabi's Etihad sets up low-cost airline with Air Arabia - Reuters:
Etihad Airways and Air Arabia (AIRA.DU) are jointly setting up a low cost carrier in Abu Dhabi to tap into growing demand for budget travel from the United Arab Emirates’ capital, they said on Wednesday.
It is the first investment by Etihad in another airline since its ‘equity alliance’ strategy, which once saw it hold stakes in as many as eight other carriers, unravelled.
Air Arabia Abu Dhabi will be an independent joint venture based at Abu Dhabi International, the hub of Abu Dhabi state-owned Etihad, the two carriers said in a statement.
Etihad Airways and Air Arabia (AIRA.DU) are jointly setting up a low cost carrier in Abu Dhabi to tap into growing demand for budget travel from the United Arab Emirates’ capital, they said on Wednesday.
It is the first investment by Etihad in another airline since its ‘equity alliance’ strategy, which once saw it hold stakes in as many as eight other carriers, unravelled.
Air Arabia Abu Dhabi will be an independent joint venture based at Abu Dhabi International, the hub of Abu Dhabi state-owned Etihad, the two carriers said in a statement.
Mideast Stocks: Property shares boost Egypt, most Gulf markets trade up | ZAWYA MENA Edition
Mideast Stocks: Property shares boost Egypt, most Gulf markets trade up | ZAWYA MENA Edition:
A rebound in real estate shares lifted Egypt's blue-chip stock index on Wednesday, while most major Gulf markets rose marginally.
Egypt's blue-chip index gained 1.1%, with 24 out of 30 stocks advancing.
The country's largest lender, Commercial International Bank, added 0.6%, while developer Madinet Nasr MNHD.CA jumped 9.9% to become the top gainer on the index.
Middle Eastern funds plan to increase their investments in Egypt, despite recent political protests, while keeping their exposure to the rest of the region at current levels, according to a Reuters poll.
A rebound in real estate shares lifted Egypt's blue-chip stock index on Wednesday, while most major Gulf markets rose marginally.
Egypt's blue-chip index gained 1.1%, with 24 out of 30 stocks advancing.
The country's largest lender, Commercial International Bank, added 0.6%, while developer Madinet Nasr MNHD.CA jumped 9.9% to become the top gainer on the index.
Middle Eastern funds plan to increase their investments in Egypt, despite recent political protests, while keeping their exposure to the rest of the region at current levels, according to a Reuters poll.
Barclays Paid #Qatar Twice for Fake Services, Prosecutor Says - Bloomberg
Barclays Paid Qatar Twice for Fake Services, Prosecutor Says - Bloomberg:
Three former Barclays Plc executives agreed to pay Qatar millions for supposed services twice, with the value suddenly jumping drastically, a prosecutor said during their fraud trial in London.
On Wednesday, in the second week of a landmark trial against a trio once near the top of the bank, prosecutor Ed Brown focused on the fact that the bank’s agreement to pay Qatar for advisory services in October 2008 came only 16 weeks after a similar arrangement and largely covered the same period.
Barclays also agreed to pay Qatar 280 million pounds ($356 million) for the services, which the bank had valued at $39 million only days earlier, Brown, who is prosecuting the case for the Serious Fraud Office, told the jury.
Three former Barclays Plc executives agreed to pay Qatar millions for supposed services twice, with the value suddenly jumping drastically, a prosecutor said during their fraud trial in London.
On Wednesday, in the second week of a landmark trial against a trio once near the top of the bank, prosecutor Ed Brown focused on the fact that the bank’s agreement to pay Qatar for advisory services in October 2008 came only 16 weeks after a similar arrangement and largely covered the same period.
Barclays also agreed to pay Qatar 280 million pounds ($356 million) for the services, which the bank had valued at $39 million only days earlier, Brown, who is prosecuting the case for the Serious Fraud Office, told the jury.
#SaudiArabia Venture Investor Considers Second $500 Million Fund - Bloomberg
Saudi Arabia Venture Investor Considers Second $500 Million Fund - Bloomberg:
STV, the venture capital investor that backed a Dubai ride-hailing firm before its sale to Uber Technologies Inc., is considering raising a second fund of at least $500 million.
“I definitely see a path to a second fund that is equal or larger to the $500 million fund we have today,” said Chief Executive Officer Abdulrahman Tarabzouni.
Interest in Middle East technology startups has been rising. Uber bought Careem Networks in March for $3.1 billion, while Amazon.com Inc. purchased Dubai-based online retailer Souq.com in 2017. STV expects venture capital investments in Saudi Arabia alone to grow tenfold by 2025, according to a report Wednesday.
STV, the venture capital investor that backed a Dubai ride-hailing firm before its sale to Uber Technologies Inc., is considering raising a second fund of at least $500 million.
“I definitely see a path to a second fund that is equal or larger to the $500 million fund we have today,” said Chief Executive Officer Abdulrahman Tarabzouni.
Interest in Middle East technology startups has been rising. Uber bought Careem Networks in March for $3.1 billion, while Amazon.com Inc. purchased Dubai-based online retailer Souq.com in 2017. STV expects venture capital investments in Saudi Arabia alone to grow tenfold by 2025, according to a report Wednesday.
Oil eases further below $59 on weaker economic outlook - Reuters
Oil eases further below $59 on weaker economic outlook - Reuters:
Oil edged further below $59 a barrel on Wednesday, pressured by concerns about weaker demand for fuel due to slower economic growth and forecasts of a further rise in U.S. crude inventories.
Prices gained some support due to signs from the Organization of the Petroleum Exporting Countries that further curbs to oil supply could come in December. OPEC and its allies meet on Dec. 5-6 in Vienna to review output policy.
Brent crude LCOc1, the global benchmark, slipped 11 cents to $58.63 a barrel by 1045 GMT. U.S. crude CLc1 gained 9 cents to $52.90.
“Prices are under pressure from increasing pessimism about the global economy and subsequent demand-side concerns,” Stephen Brennock of oil broker PVM said.
Oil edged further below $59 a barrel on Wednesday, pressured by concerns about weaker demand for fuel due to slower economic growth and forecasts of a further rise in U.S. crude inventories.
Prices gained some support due to signs from the Organization of the Petroleum Exporting Countries that further curbs to oil supply could come in December. OPEC and its allies meet on Dec. 5-6 in Vienna to review output policy.
Brent crude LCOc1, the global benchmark, slipped 11 cents to $58.63 a barrel by 1045 GMT. U.S. crude CLc1 gained 9 cents to $52.90.
“Prices are under pressure from increasing pessimism about the global economy and subsequent demand-side concerns,” Stephen Brennock of oil broker PVM said.
#Dubai Sets Limits to Starting State-Related Entities - Bloomberg
Dubai Sets Limits to Starting State-Related Entities - Bloomberg:
Dubai is curbing the establishment of state-related entities to ensure they aren’t crowding the private sector and holding back economic development.
Additional state-related firms will only be created to fulfill a national security requirement or a strategic government need, according to a statement by Dubai’s Executive Council. They will only be created if the private sector is unable or unwilling to provide the services or goods needed or if the government is better-placed to offer them. New government companies must operate without legislative favoritism or any additional advantages that would give them an edge over private-sector peers.
Dubai is curbing the establishment of state-related entities to ensure they aren’t crowding the private sector and holding back economic development.
Additional state-related firms will only be created to fulfill a national security requirement or a strategic government need, according to a statement by Dubai’s Executive Council. They will only be created if the private sector is unable or unwilling to provide the services or goods needed or if the government is better-placed to offer them. New government companies must operate without legislative favoritism or any additional advantages that would give them an edge over private-sector peers.
Emirate of #Sharjah starts marketing 10-yr dollar sukuk - document - Reuters
Emirate of Sharjah starts marketing 10-yr dollar sukuk - document - Reuters:
Sharjah, the third-largest emirate of the United Arab Emirates, started marketing a 10-year dollar sukuk, or Islamic bonds, at around 185 basis points over midswaps, a document showed.
HSBC is coordinating the transaction, which is expected to close later on Wednesday.
The bonds are expected to be of benchmark size, which generally means upwards of $500 million.
Sharjah, the third-largest emirate of the United Arab Emirates, started marketing a 10-year dollar sukuk, or Islamic bonds, at around 185 basis points over midswaps, a document showed.
HSBC is coordinating the transaction, which is expected to close later on Wednesday.
The bonds are expected to be of benchmark size, which generally means upwards of $500 million.
DIFC posts 45% solid growth in Islamic assets in 12 months | ZAWYA MENA Edition
DIFC posts 45% solid growth in Islamic assets in 12 months | ZAWYA MENA Edition:
Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa, and South Asia (MEASA) region, announced that it has recorded solid growth of 45% in Islamic assets during the period between the second quarter of 2018 and Q2-2019.
Islamic finance has been growing at 1.5 times the rate of traditional finance as the MEASA is significantly driving this industry on the back of a number of jumbo sukuk issuances and almost $1 trillion in financial assets across GCC countries, according to a press release.
Dubai is one of the largest centres in the world for sukuk listings with offerings worth $62 billion, including listings on Nasdaq Dubai valuing at $60 billion, the DIFC highlighted.
Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa, and South Asia (MEASA) region, announced that it has recorded solid growth of 45% in Islamic assets during the period between the second quarter of 2018 and Q2-2019.
Islamic finance has been growing at 1.5 times the rate of traditional finance as the MEASA is significantly driving this industry on the back of a number of jumbo sukuk issuances and almost $1 trillion in financial assets across GCC countries, according to a press release.
Dubai is one of the largest centres in the world for sukuk listings with offerings worth $62 billion, including listings on Nasdaq Dubai valuing at $60 billion, the DIFC highlighted.
MIDEAST STOCKS-Petrochemicals hurt #Qatar, Gulf mostly quiet early on - Reuters
MIDEAST STOCKS-Petrochemicals hurt Qatar, Gulf mostly quiet early on - Reuters:
Gulf stocks mostly rose early on Wednesday, although Qatari petrochemical shares pulled down that market.
Saudi Arabia’s index edged up 0.2%, with AL Rajhi Bank gaining 0.5% and Jabal Omar Development up 1.7%.
Yamamah Cement gained 3.1% after posting third-quarter profit of 54.7 million riyals ($14.58 million), compared with a loss of 46.4 million riyals year ago.
Gulf stocks mostly rose early on Wednesday, although Qatari petrochemical shares pulled down that market.
Saudi Arabia’s index edged up 0.2%, with AL Rajhi Bank gaining 0.5% and Jabal Omar Development up 1.7%.
Yamamah Cement gained 3.1% after posting third-quarter profit of 54.7 million riyals ($14.58 million), compared with a loss of 46.4 million riyals year ago.
'Broken system' starves U.S. oil boom of immigrant workers - Reuters
'Broken system' starves U.S. oil boom of immigrant workers - Reuters:
New Mexico oil man Johnny Vega laid out his predicament as his crew hoisted pipes from a well during the biggest oil boom in U.S. history.
The son of a Mexican guestworker, Vega cannot find enough legal workers to meet demand for his oil well service rigs.
There is no shortage of Hispanic and Latino immigrant workers without work permits he could hire in Lea County, New Mexico - the No.2 oil-producing county in the United States.
But Vega says he wants to play by the rules, not least because of a heightened risk of company audits by U.S. Immigration and Customs Enforcement (ICE) under President Donald Trump. As a result, he has equipment that could be generating $700,000 a month standing idle in his yard.
New Mexico oil man Johnny Vega laid out his predicament as his crew hoisted pipes from a well during the biggest oil boom in U.S. history.
The son of a Mexican guestworker, Vega cannot find enough legal workers to meet demand for his oil well service rigs.
There is no shortage of Hispanic and Latino immigrant workers without work permits he could hire in Lea County, New Mexico - the No.2 oil-producing county in the United States.
But Vega says he wants to play by the rules, not least because of a heightened risk of company audits by U.S. Immigration and Customs Enforcement (ICE) under President Donald Trump. As a result, he has equipment that could be generating $700,000 a month standing idle in his yard.
Subscribe to:
Posts (Atom)