Oil Bounces Back as OPEC Sees Potential for Outside Supply Cuts - Bloomberg

Oil Bounces Back as OPEC Sees Potential for Outside Supply Cuts - Bloomberg:

Oil advanced for the first time in three days after a report that OPEC sees a potential reduction in supply from outside of the group.

Futures rose as much as 1.3% in New York Wednesday after the American Petroleum Institute reported that U.S. stockpiles fell 541,000 barrels last week, according to people familiar. Apart from a “sharp” cut in projected output from non-member countries next year, the Organization of Petroleum Exporting Countries also sees a possible “upswing” in the forecast for demand growth, according to Secretary-General Mohammad Barkindo. The comments underscore a more upbeat outlook for the oil market into the new year.

When the OPEC news hit the market, prices “started to rally from the red to the green,” said Bob Yawger, future divisions director for Mizuho Securities in New York. “Until this turnaround, things were getting ugly.”

Gulf states’ participation in football tournament signals thaw in #Qatar relations | Financial Times

Gulf states’ participation in football tournament signals thaw in Qatar relations | Financial Times:

Khalifa International Stadium in Doha, Qatar, will host the Arabian Gulf Cup tournament, which starts later this month © Getty

Saudi Arabia and other Gulf states have agreed to take part in a football tournament in Qatar, a surprise move that signals a possible thaw in relations after a more than two-year trade and travel boycott of the gas-rich state. 


Saudi Arabia, the United Arab Emirates and Bahrain said late on Tuesday that they would participate in the Arabian Gulf Cup scheduled for November 24 to December 6 in Qatar, a regional competition that includes the other two members of the Gulf Cooperation Council, Kuwait and Oman, as well as Iraq and Yemen.

The decision by Riyadh and Abu Dhabi to send teams to the tournament is the latest signal that quiet diplomacy led by Kuwait’s nonagenarian ruler Sheikh Sabah al-Ahmad al-Jaber al-Sabah could lead to an agreement to end the dispute or at least recalibrate the crisis.

Morgan Stanley Is Latest Bank to Offer $1 Trillion Aramco Spread - Bloomberg

Morgan Stanley Is Latest Bank to Offer $1 Trillion Aramco Spread - Bloomberg:

Morgan Stanley is one of the most bearish -- and bullish -- on Saudi Aramco’s valuation.

In a presentation for investors, Morgan Stanley bankers ran through several valuation models that gave a spread of about $1 trillion between the most bearish and bullish scenarios.

For example, based on a dividend discount model the spread ran from $1.06 trillion up to $2 trillion. The base case was $1.52 trillion, according to the presentation seen by Bloomberg. A spokesman for Morgan Stanley declined to comment.

Signs Mount That #Qatar Embargo May End as Mediation Gears Up - Bloomberg

Signs Mount That Qatar Embargo May End as Mediation Gears Up - Bloomberg:

Efforts to resolve the standoff between Qatar and a Saudi-led bloc are gathering momentum, with an upcoming soccer tournament in Doha helping to pave the way for a possible breakthrough, according to a Gulf official with knowledge of the matter.

The mediation is currently focusing on mending ties between Qatar and Saudi Arabia, and will bring the United Arab Emirates on board later, the official said on condition of anonymity due to the sensitivity of the issue.

Saudi Arabia, the U.A.E. and Bahrain have agreed to take part in the Gulf soccer cup in Qatar in November, more than two years after severing diplomatic and economic ties with their gas-rich neighbor.

A senior Saudi official said in Washington last week that Qatar has also started taking steps to repair relations with its neighbors.

#Qatar Petroleum signs 10-year LPG supply agreement with China's Wanhua Chemicals - Reuters

Qatar Petroleum signs 10-year LPG supply agreement with China's Wanhua Chemicals - Reuters:

Qatar Petroleum said on Wednesday it had signed a 10-year Liquefied Petroleum Gas (LPG) supply agreement with China’s Wanhua Chemicals. 

The agreement is for the sale of approximately 800,000 metric tons per year of LPG over a period of 10 years, the firm said in a statement on Wednesday.

Oil is our gold and we aim to use all of it, ADNOC official says - Reuters

Oil is our gold and we aim to use all of it, ADNOC official says - Reuters:

Abu Dhabi National Oil Co aims to exhaust its vast oil and gas reserves even as many consumers switch to cleaner sources of energy, a senior executive in the Gulf oil company said.

The world’s transition away from fossil fuel in an effort to slash greenhouse gas emissions is expected to accelerate in coming decades, leaving many oil companies and producing nations pondering their long-term future.

But for state-run ADNOC, the main oil-producing company in the United Arab Emirates, which supplies nearly 3% of global oil demand, crude is set to remain the revenue backbone, ADNOC’s upstream executive director Abdulmunim al-Kindy told Reuters.

“Our oil is our gold,” al-Kindy said in an interview during the ADIPEC oil and gas conference in Abu Dhabi, capital of the UAE.

OPEC chief says rival oil supply could underperform in 2020 - Reuters

OPEC chief says rival oil supply could underperform in 2020 - Reuters:

U.S. shale oil supply growth could slow down next year, OPEC’s secretary general said on Wednesday in his latest indication that the oil market in 2020 could surprise to the upside.

Mohammad Barkindo said there would likely be downward revisions of supply going into 2020 especially from United States shale, adding that some U.S. shale oil firms see output growing by only around 300,000-400,000 barrels per day.

“This is coming from the companies themselves, who are saying our (OPEC’s) numbers are more optimistic,” he told reporters. “We are more optimistic than them. They expect a sharper deceleration.”


“We are likely to see sharp revisions of non-OPEC supply going into 2020 particularly from the shale basins in the United States,” he said.

Oil recoups losses as OPEC, U.S. Fed see robust economy - Reuters

Oil recoups losses as OPEC, U.S. Fed see robust economy - Reuters:

Oil prices reversed early losses on Wednesday after OPEC said it saw no signs of global recession and rival U.S. shale oil production could grow by much less than expected in 2020.

Also supporting prices were comments by U.S. Federal Reserve Chair Jerome Powell, who said the U.S. economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.

Brent crude futures LCOc1 stood roughly flat at around $62 per barrel by 1450 GMT, having fallen by over 1% earlier in the day. U.S. West Texas Intermediate crude CLc1 was at $56 per barrel, up 20 cents or 0.4%.

“The baseline outlook remains favorable,” Powell said.

#UAE's ADNOC aligns elements to build liquidity on new crude futures exchange | ZAWYA MENA Edition

UAE's ADNOC aligns elements to build liquidity on new crude futures exchange | ZAWYA MENA Edition:

The Abu Dhabi National Oil Company (ADNOC) aims to build liquidity on the new international exchange for Murban crude oil, which will be based at the Abu Dhabi Global Market (ADGM), and to make Murban futures contract an alternative for Brent.

“You are not born a benchmark, you become one… we need to build trust and align elements which make it reliable and transparent and for the liquidity to build up,” said Philippe Khoury, Group Head of Trading at ADNOC.

“The trust part and the derivatives part are where we have to show our strengths going forward,” he told ADNOC Trading Forum on Tuesday, held as part of ADIPEC 2019.

“The physical part of the Murban is much more powerful than the other crude proposed, in terms of the consistency of quality and quantity which makes it extremely resilient when it comes to making its way into the benchmark road. We still have to demonstrate over time that the community can trust this crude to become a benchmark,” he added.

MIDEAST STOCKS-Most major Gulf markets dip but #Qatar up on energy stocks | Nasdaq

MIDEAST STOCKS-Most major Gulf markets dip but Qatar up on energy stocks | Nasdaq:

Most major Gulf markets slipped on Wednesday, with Saudi Arabia leading the losses amid falling oil prices, while Qatar bucked the trend on energy stocks.

Oil prices fell on Wednesday as hopes for a trade deal between the United States and China faded, weighing on the outlook for the global economy and energy demand. 


Brent crude futures LCOc1 fell 75 cents, or 1.25%, to $61.31 a barrel by 1030 GMT, while U.S. West Texas Intermediate crude CLc1 was at $56.30, down 50 cents or 0.9%.

In Saudi Arabia, the benchmark index .TASI slipped 0.7%, snapping a four-day winning streak with Al Rajhi Bank 1120.SE losing 0.8% and the Gulf's biggest petrochemical maker Saudi Basic Industries (SABIC) 2010.SE dropping 1.8%. 


Qatar's index .QSI rose 0.5% as market heavyweight Industries Qatar IQCD.QA increased 1.8% and Mesaieed Petrochemical MPHC.QA advanced 2.8%.

Airbus frontrunner to win big Air Arabia order: sources - Reuters

Airbus frontrunner to win big Air Arabia order: sources - Reuters:

Airbus (AIR.PA) is likely to win an order for at least 100 jets from Air Arabia AIRA.DU with an announcement possibly coming as soon as the Dubai Airshow next week, two sources told Reuters.

The Emirati budget carrier has been considering the order for up to 120 jets, which would more than double its current fleet of 55 narrowbody aircraft, for more than a year.

Air Arabia, which has held talks with both Airbus and Boeing (BA.N) and said it would make a decision by January, was expected to select the European planemaker, the two sources said.

Airbus declined comment. Air Arabia did not immediately respond to an emailed request for comment.

DAMAC's third quarter profit plunges 78% - Reuters

DAMAC's third quarter profit plunges 78% - Reuters:

DAMAC Properties DAMAC.DU, owner of the only Trump-branded golf club in the Middle East, reported on Wednesday a 78% drop in third quarter profit amid an extended slowdown in Dubai’s property sector.

A supply glut has slowed the market for most of the decade, apart from a brief pickup more than five years ago, sending residential property prices down by at least a quarter since 2014.

DAMAC made 50.9 million dirhams ($13.9 million) in the three months to Sept 30, compared to 230.8 million dirhams a year earlier.

Revenue fell 42% to 895.4 million dirhams.

#UAE oil benchmark plan confused by Brent comment U-turn - Reuters

UAE oil benchmark plan confused by Brent comment U-turn - Reuters:

A United Arab Emirates plan to launch its own global oil benchmark was thrown into confusion on Tuesday after comments made by its own national oil company.

ADNOC first said it sees Murban as a contract to replace the global Brent benchmark, only to retract the comment.

The development highlights a complex nature of Abu Dhabi National Oil Company’s (ADNOC) Murban futures contract.

It will be traded on a new local exchange, ICE Futures Abu Dhabi (IFAD), that will be co-owned by Abu Dhabi, several oil majors and the Intercontinental Exchange Inc, which is also home to Brent trading.

RPT-COLUMN-Oil price risks shift to the upside, funds continue buying: Kemp - Reuters

RPT-COLUMN-Oil price risks shift to the upside, funds continue buying: Kemp - Reuters:

Hedge funds continued to buy oil derivatives last week, anticipating the oil market has entered an upward price cycle as the global economy steadies and the surge in shale production fades.

Hedge funds and other money managers purchased the equivalent of 26 million barrels of futures and options in the six major petroleum contracts in the week to Nov. 5 (tmsnrt.rs/2X5HQQs).

Fund managers were buyers of ICE Brent (+28 million barrels), NYMEX and ICE WTI (+14 million) and U.S. gasoline (+4 million), while selling some U.S. heating oil (-8 million) and European gasoil (-12 million).

Funds have purchased 135 million barrels in the six main contracts over the last four weeks, after selling 206 million barrels in the three weeks before that, according to exchange and regulatory data.

Oil falls as U.S.-China trade deal prospects dim - Reuters

Oil falls as U.S.-China trade deal prospects dim - Reuters:

Oil prices fell on Wednesday as prospects for a trade deal between the United States and China faded, weighing on the outlook for the global economy and energy demand.

U.S. President Donald Trump said on Tuesday the two countries were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony, disappointing investors.

Brent crude futures LCOc1 fell 75 cents, or 1.25%, to $61.31 a barrel by 1030 GMT, while U.S. West Texas Intermediate crude CLc1 was at $56.30, down 50 cents or 0.9%.

“The expectations of an inventory build in the U.S. and uncertainty over the OPEC+ strategy on output cuts and U.S./China trade deal are weighing on oil prices,” said analysts at ING including the head of commodity strategy Warren Patterson.

MIDEAST STOCKS-Most Gulf markets drop as oil prices fall - Reuters

MIDEAST STOCKS-Most Gulf markets drop as oil prices fall - Reuters:

Most of the major Gulf stock markets moved lower in early trade on Wednesday as oil prices fell, with Abu Dhabi underperforming amongst the peers.

Oil prices dipped as hopes for a trade deal between the United States and China dimmed, after U.S. President Donald Trump fell short of providing a date or venue for the signing ceremony, weighing on the outlook for the global economy and energy demand.

Brent crude futures and West Texas Intermediate crude were down 0.3% and 0.2%, respectively.

In Abu Dhabi, the index fell for a sixth straight session and was trading 0.4% lower. Market heavyweight First Abu Dhabi Bank slipped 0.5%, while Emirates Telecommunications Group was down 0.4%.