Kuwait Sees Neutral Zone Oil Pact With Saudis Within 45 Days - Bloomberg:
Kuwait expects to sign an agreement with Saudi Arabia to restart oil production from the neutral zone along their border within 30 to 45 days, according to a person familiar with the matter.
The pact, reached after months of intensive negotiations, won’t be final until it’s signed, the person said, asking not to be identified as the talks are private. Khafji, one of two fields in the zone, can start production immediately, while the Wafra field will need three to six months, the person said.
The neutral zone, which has been shuttered for at least four years, can produce as much as 500,000 barrels a day. Negotiations continue with the Kuwaiti authorities, but even if production resumes, the area would not add oil to global markets because both countries adhere to output limits that OPEC has extended into early 2020, according to a person familiar with Saudi thinking.
Sunday 20 October 2019
#SaudiArabia's Best Bet Is to Crash the Price of Oil - Bloomberg
Saudi Arabia's Best Bet Is to Crash the Price of Oil - Bloomberg:
Saudi Arabia should give up trying to manage the global crude market and return to the pump-at-will policy it briefly adopted in 2014 under its longest serving oil minister Ali Al-Naimi.
In the mercantilist world in which we now live, where decisions are based on narrow national interest, it makes no sense for the world's lowest-cost oil producer to subsidize shale and prop up other high-cost suppliers.
Of course when it does, oil prices will crash just as they did in 1986 when the country finally abandoned fixed official selling prices. And then, in the aftermath, global investors will get in a flap about all things Saudi: the IPO of the kingdom’s state oil company, the financing required to fund a young and under-employed population, Mohammed bin Salman’s ambitious Vision 2030 plan to transform the economy away from its dependence on oil.
Saudi Arabia should give up trying to manage the global crude market and return to the pump-at-will policy it briefly adopted in 2014 under its longest serving oil minister Ali Al-Naimi.
In the mercantilist world in which we now live, where decisions are based on narrow national interest, it makes no sense for the world's lowest-cost oil producer to subsidize shale and prop up other high-cost suppliers.
Of course when it does, oil prices will crash just as they did in 1986 when the country finally abandoned fixed official selling prices. And then, in the aftermath, global investors will get in a flap about all things Saudi: the IPO of the kingdom’s state oil company, the financing required to fund a young and under-employed population, Mohammed bin Salman’s ambitious Vision 2030 plan to transform the economy away from its dependence on oil.
#Lebanon's Hariri agrees to reforms amid nationwide protests over economic crisis - Reuters
Lebanon's Hariri agrees to reforms amid nationwide protests over economic crisis - Reuters:
Lebanese Prime Minister Saad al-Hariri agreed on Sunday a package of reforms with government partners to ease an economic crisis that has sparked protests aimed at ousting a ruling elite seen as riddled with corruption and cronyism.
Officials told Reuters the agreement was reached as hundreds of thousands of protesters flooded the streets for a fourth day in the biggest show of dissent against the establishment in decades.
A sea of people, some waving Lebanese flags, called for revolution in protests that resembled the 2011 Arab revolts that toppled four presidents.
Lebanese Prime Minister Saad al-Hariri agreed on Sunday a package of reforms with government partners to ease an economic crisis that has sparked protests aimed at ousting a ruling elite seen as riddled with corruption and cronyism.
Officials told Reuters the agreement was reached as hundreds of thousands of protesters flooded the streets for a fourth day in the biggest show of dissent against the establishment in decades.
A sea of people, some waving Lebanese flags, called for revolution in protests that resembled the 2011 Arab revolts that toppled four presidents.
Economic shift, projects prompt #Saudi, #UAE to lead $1bln industrial gas market | ZAWYA MENA Edition
Economic shift, projects prompt Saudi, UAE to lead $1bln industrial gas market | ZAWYA MENA Edition:
Saudi Arabia has emerged as the frontrunner of GCC industrial gases market, thanks to increasing infrastructural activities and rising demand from the regional chemical industry.
On the basis of geographical outlook, the kingdom is seen as a significant market for industrial gases and is expected to grow at a compounded annual growth rate (CAGR) of 6 percent, according to a research report by Persistence Market Research (PMR) on GCC industrial gases market outlook and analysis for 2019-2029.
The GCC industrial gases market is likely to account for $1 billion by end of 2019 and is expected to grow at a CAGR of 6 percent for the forecast period.
Saudi Arabia has emerged as the frontrunner of GCC industrial gases market, thanks to increasing infrastructural activities and rising demand from the regional chemical industry.
On the basis of geographical outlook, the kingdom is seen as a significant market for industrial gases and is expected to grow at a compounded annual growth rate (CAGR) of 6 percent, according to a research report by Persistence Market Research (PMR) on GCC industrial gases market outlook and analysis for 2019-2029.
The GCC industrial gases market is likely to account for $1 billion by end of 2019 and is expected to grow at a CAGR of 6 percent for the forecast period.
S&P affirms #Oman ratings at BB/B with negative outlook | ZAWYA MENA Edition
S&P affirms Oman ratings at BB/B with negative outlook | ZAWYA MENA Edition:
S&P Global Ratings affirmed its 'BB/B' long- and short-term foreign and local currency sovereign credit ratings on Oman and said the outlook was negative.
S&P, the first of the major credit assessors to give Oman a non-investment grade, said that its “negative outlook reflects the risk that in the absence of substantial fiscal measures to curtail the government deficit, fiscal and external buffers will continue to erode.”
The global ratings agency said it could lower ratings on Oman in the next 6-12 months if the sultanate is unable to contain external debt accumulation related to still-sizable fiscal deficits, which S&P expect will continue to increase through 2022.
S&P Global Ratings affirmed its 'BB/B' long- and short-term foreign and local currency sovereign credit ratings on Oman and said the outlook was negative.
S&P, the first of the major credit assessors to give Oman a non-investment grade, said that its “negative outlook reflects the risk that in the absence of substantial fiscal measures to curtail the government deficit, fiscal and external buffers will continue to erode.”
The global ratings agency said it could lower ratings on Oman in the next 6-12 months if the sultanate is unable to contain external debt accumulation related to still-sizable fiscal deficits, which S&P expect will continue to increase through 2022.
Mideast Stocks- Banks boost Saudi index; other Gulf markets down | ZAWYA MENA Edition
Mideast Stocks- Banks boost Saudi index; other Gulf markets down | ZAWYA MENA Edition:
Saudi Arabia's stock market rose sharply on Sunday, lifted by cheaper valuations and a delay in Aramco's IPO, while other major Gulf markets were mostly weighed down by shares of financial institutions.
The Saudi market rose 2%, extending gains for a third straight session with all banking stocks higher. The kingdom's largest lender by assets National Commercial Bank jumped 5.3%, its biggest intraday gain since September 2018. Al Rajhi Bank closed 1,7% higher.
Akber Khan, head of asset management at Al Rayan Investment in Doha noted that before the Tadawul index began to rally last week, it had fallen almost 20% in the previous 3 months, with half of that in October alone, bring valuations for many stocks to compelling levels.
Saudi Arabia's stock market rose sharply on Sunday, lifted by cheaper valuations and a delay in Aramco's IPO, while other major Gulf markets were mostly weighed down by shares of financial institutions.
The Saudi market rose 2%, extending gains for a third straight session with all banking stocks higher. The kingdom's largest lender by assets National Commercial Bank jumped 5.3%, its biggest intraday gain since September 2018. Al Rajhi Bank closed 1,7% higher.
Akber Khan, head of asset management at Al Rayan Investment in Doha noted that before the Tadawul index began to rally last week, it had fallen almost 20% in the previous 3 months, with half of that in October alone, bring valuations for many stocks to compelling levels.
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