REFILE-Swiss president to lead financial delegation to Gulf - Reuters:
Swiss President Ueli Maurer will lead a delegation from the country’s financial sector to visit Saudi Arabia and the United Arab Emirates for talks on strengthening business ties, the government in Bern said on Friday.
Maurer will be received by heads of state in Abu Dhabi, Dubai and Riyadh during the trip from Oct. 26 to 29, the finance ministry that he heads said.
The chief executives of Citigroup and Credit Suisse , as well as the heads of fund managers BlackRock and BlackStone will be among those gathering in Riyadh for a glitzy investment conference next week, an event not attended by top financiers last year after the murder of Saudi journalist Jamal Khashoggi.
Friday 25 October 2019
Russia affirms close oil cooperation with #SaudiArabia, OPEC+ - Reuters
Russia affirms close oil cooperation with Saudi Arabia, OPEC+ - Reuters:
Russia’s energy ministry said on Friday it continues close cooperation with Saudi Arabia and OPEC and non-OPEC oil producers to enhance market stability and predictability.
Its statement came a day after Igor Sechin, CEO of Russian oil giant Rosneft, said the September attacks on Saudi oil assets created doubts over its reliability as a supplier.
“The quick restoration of the production capacity in Saudi Arabia after the drone attacks has once again underscored professionalism and reliability of the largest producers in the industry,” the ministry said.
Russia’s energy ministry said on Friday it continues close cooperation with Saudi Arabia and OPEC and non-OPEC oil producers to enhance market stability and predictability.
Its statement came a day after Igor Sechin, CEO of Russian oil giant Rosneft, said the September attacks on Saudi oil assets created doubts over its reliability as a supplier.
“The quick restoration of the production capacity in Saudi Arabia after the drone attacks has once again underscored professionalism and reliability of the largest producers in the industry,” the ministry said.
Oil prices clock strong weekly gains on trade hopes, crude supply - Reuters
Oil prices clock strong weekly gains on trade hopes, crude supply - Reuters:
Oil prices rose on Friday, registering the strongest weekly gains in more than a month as support from optimism over a U.S.-China trade deal, falling U.S. crude stocks and possible action from OPEC to extend output cuts outweighed broader economic concerns.
West Texas Intermediate (WTI) crude futures settled 43 cents, or 0.8%, higher at $56.66 a barrel, clocking a weekly rise of more than 5%, its strongest since June 21. Brent crude ended 35 cents, or 0.6%, higher at $62.02 a barrel, logging a weekly gain of more than 4%, its best since Sept. 20.
Oil got a boost from signs of progress in talks on resolving the U.S.-China trade dispute that has weighed on crude demand. Washington officials on Friday said the United States and China were close to finalizing the first part of a trade deal after months of a tariff war.
Oil prices rose on Friday, registering the strongest weekly gains in more than a month as support from optimism over a U.S.-China trade deal, falling U.S. crude stocks and possible action from OPEC to extend output cuts outweighed broader economic concerns.
West Texas Intermediate (WTI) crude futures settled 43 cents, or 0.8%, higher at $56.66 a barrel, clocking a weekly rise of more than 5%, its strongest since June 21. Brent crude ended 35 cents, or 0.6%, higher at $62.02 a barrel, logging a weekly gain of more than 4%, its best since Sept. 20.
Oil got a boost from signs of progress in talks on resolving the U.S.-China trade dispute that has weighed on crude demand. Washington officials on Friday said the United States and China were close to finalizing the first part of a trade deal after months of a tariff war.
#Iran’s Economic Resiliency Makes Talks More Likely - Bloomberg
Iran’s Economic Resiliency Makes Talks More Likely - Bloomberg:
The International Monetary Fund has revised downward its projections for Iran’s economy this year, predicting a 9.5% contraction, as against its previous projection of a 6% shrinkage. It will be the economy’s worst performance since 1984, when Iran was mired in a war with Iraq.
At first glance, this seems to support the Trump administration’s claims that its “maximum pressure” sanctions campaign is bringing the Iranian economy to the brink of collapse. But this view is challenged by the IMF’s projection that the decline will halt in 2020 when Iran’s economy will rebound to zero growth—despite the sanctions.
A closer examination reveals an economic recovery is already underway, as stability returns to consumer prices, manufacturing, trade, and the Iranian currency. Somewhat counterintuitively, this could improve the prospects of talks between Iran and the U.S. A stable economy may reassure the Islamic Republic that it can negotiate from a position of some strength.
The International Monetary Fund has revised downward its projections for Iran’s economy this year, predicting a 9.5% contraction, as against its previous projection of a 6% shrinkage. It will be the economy’s worst performance since 1984, when Iran was mired in a war with Iraq.
At first glance, this seems to support the Trump administration’s claims that its “maximum pressure” sanctions campaign is bringing the Iranian economy to the brink of collapse. But this view is challenged by the IMF’s projection that the decline will halt in 2020 when Iran’s economy will rebound to zero growth—despite the sanctions.
A closer examination reveals an economic recovery is already underway, as stability returns to consumer prices, manufacturing, trade, and the Iranian currency. Somewhat counterintuitively, this could improve the prospects of talks between Iran and the U.S. A stable economy may reassure the Islamic Republic that it can negotiate from a position of some strength.
Floating Storage for LNG Surges With More Ships From #Qatar - Bloomberg
Floating Storage for LNG Surges With More Ships From Qatar - Bloomberg:
The number of liquefied natural gas tankers identified as floating storage appears to be peaking, tightening the market for shipping and adding to a supply overhang.
The phenomenon happens when LNG tankers loaded with cargoes either travel slower than usual to their destination or wait at sea for a buyer.
The most recent episode can be traced back to Qatar’s decision to send out more ships ahead of maintenance work on its facilities. The result is making it more expensive for traders to charter a vessel on the prompt market in the Atlantic basin, replicating a similar bout of floating storage in Asia last year.
The number of liquefied natural gas tankers identified as floating storage appears to be peaking, tightening the market for shipping and adding to a supply overhang.
The phenomenon happens when LNG tankers loaded with cargoes either travel slower than usual to their destination or wait at sea for a buyer.
The most recent episode can be traced back to Qatar’s decision to send out more ships ahead of maintenance work on its facilities. The result is making it more expensive for traders to charter a vessel on the prompt market in the Atlantic basin, replicating a similar bout of floating storage in Asia last year.
World Bank executive stresses importance of Aramco IPO plans
World Bank executive stresses importance of Aramco IPO plans:
Listing Saudi Aramco shares on a public stock market is the “single most important thing” the government could do to continue the pace of reform in the Kingdom, a senior executive of the World Bank told Arab News on Thursday.
Simeon Djankov, director of development economics at the World Bank, was speaking on the sidelines of the Doing Business event in Riyadh, at which it was revealed that the World Bank ranks Saudi Arabia as the world’s most-improved business environment over the past 12 months.
Djankov said: “An initial public offering (IPO) of Aramco is tremendously important — probably the No. 1 thing that the Kingdom can do, out of anything in the business environment, because this is a huge company, a global company, and everybody knows about it. It has been delayed a number of times and that has given rise to the question of whether it can ever be done.”
Listing Saudi Aramco shares on a public stock market is the “single most important thing” the government could do to continue the pace of reform in the Kingdom, a senior executive of the World Bank told Arab News on Thursday.
Simeon Djankov, director of development economics at the World Bank, was speaking on the sidelines of the Doing Business event in Riyadh, at which it was revealed that the World Bank ranks Saudi Arabia as the world’s most-improved business environment over the past 12 months.
Djankov said: “An initial public offering (IPO) of Aramco is tremendously important — probably the No. 1 thing that the Kingdom can do, out of anything in the business environment, because this is a huge company, a global company, and everybody knows about it. It has been delayed a number of times and that has given rise to the question of whether it can ever be done.”
UPDATE 1- #UAE c.bank proposes new real estate lending rules for banks - Reuters
UPDATE 1-UAE c.bank proposes new real estate lending rules for banks - Reuters:
The United Arab Emirates’ central bank has proposed new regulatory measures to prevent banks from over-exposure to real estate and to encourage them to maintain diversified assets. The UAE, home to the world’s tallest tower, the Burj Khalifa, has faced a sharp real estate slowdown due to oversupply and weaker investment appetite amid lower oil prices.
The government is implementing new measures to bolster the real estate sector including stimulus packages and allowing foreigners to own freehold property in Abu Dhabi. Dubai granted freehold ownership in 2002.
The redesigned measures are expected to improve flexibility for bank lending to the real estate sector, the central bank said in a statement. It will also ensure that banks with higher real estate exposures will be subject to “supplemental regulatory requirements,” the statement said, without specifying details on the new measures or lending limits.
The United Arab Emirates’ central bank has proposed new regulatory measures to prevent banks from over-exposure to real estate and to encourage them to maintain diversified assets. The UAE, home to the world’s tallest tower, the Burj Khalifa, has faced a sharp real estate slowdown due to oversupply and weaker investment appetite amid lower oil prices.
The government is implementing new measures to bolster the real estate sector including stimulus packages and allowing foreigners to own freehold property in Abu Dhabi. Dubai granted freehold ownership in 2002.
The redesigned measures are expected to improve flexibility for bank lending to the real estate sector, the central bank said in a statement. It will also ensure that banks with higher real estate exposures will be subject to “supplemental regulatory requirements,” the statement said, without specifying details on the new measures or lending limits.
Oil declines, ending three-day rally as growth concerns return - Reuters
Oil declines, ending three-day rally as growth concerns return - Reuters:
Oil prices pulled back on Friday, retracing some of the gains of a three rally on Friday, as downbeat economic growth forecasts revived concerns over the outlook for fuel demand.
Brent crude LCOc1 was down 18 cents, or 0.3%, at $61.49 by 0642 GMT. Having risen nearly 1% on Thursday, the global benchmark was still set for a weekly gain of more than 3%.
West Texas Intermediate (WTI) crude CLc1 was down 21 cents, or 0.4%, at $56.02. The U.S. benchmark rose 0.5% in the previous session and was on track for a gain of more than 4% over the week.
The strong weekly rise was underpinned by a surprise decline in U.S. inventories of crude and optimism about more efforts to support prices by OPEC and its allies.
Oil prices pulled back on Friday, retracing some of the gains of a three rally on Friday, as downbeat economic growth forecasts revived concerns over the outlook for fuel demand.
Brent crude LCOc1 was down 18 cents, or 0.3%, at $61.49 by 0642 GMT. Having risen nearly 1% on Thursday, the global benchmark was still set for a weekly gain of more than 3%.
West Texas Intermediate (WTI) crude CLc1 was down 21 cents, or 0.4%, at $56.02. The U.S. benchmark rose 0.5% in the previous session and was on track for a gain of more than 4% over the week.
The strong weekly rise was underpinned by a surprise decline in U.S. inventories of crude and optimism about more efforts to support prices by OPEC and its allies.