More Bad News For Oil As The API Reports A Large Crude Build | OilPrice.com

More Bad News For Oil As The API Reports A Large Crude Build | OilPrice.com:

The American Petroleum Institute (API) has estimated a crude oil inventory build of 5.954 barrels for the week ending November 14, compared to analyst expectations of a 1.543-million-barrel build—a huge discrepancy for the much-watched inventory figures.

Last week saw a draw in crude oil inventories of 500,000 million barrels, according to API data. The EIA’s estimates, however, reported a build of 2.2-million barrels for that week.

After today’s inventory move, the net draw for the year now sits at just 2.81 million barrels for the 47-week reporting period so far, using API data.

Oil slumps on oversupply fears, trade talk concerns - Reuters

Oil slumps on oversupply fears, trade talk concerns - Reuters:

Oil fell more than $1 a barrel on Tuesday on concerns about excess global crude supply and limited progress toward resolving the U.S.-China trade dispute that has clouded the outlook for oil demand. 

Brent crude LCOc1 futures fell $1.53, or 2.5%, to settle at $60.91 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures lost $1.84, or 3.2%, to settle at $55.21 a barrel.

Brent has rallied about 15% this year, supported by a pact by the Organization of the Petroleum Exporting Countries and its allies, including Russia - a group known as OPEC+ - to cut combined oil output by 1.2 million barrels per day from Jan. 1.

Russia is unlikely to agree to deepen cuts in oil output at a meeting with fellow exporters next month, but could commit to extend existing curbs to support Saudi Arabia, three sources said.

How Riyadh’s #Saudi Aramco ambitions were thwarted | Financial Times

How Riyadh’s Saudi Aramco ambitions were thwarted | Financial Times:

Some of the world’s top investment bankers gathered at a Riyadh palace on Saturday to deliver their final recommendations on a project that had consumed the government of Saudi Arabia for the past few years: the initial public offering of Saudi Aramco.


The financiers were there to meet Yasir al-Rumayyan, the state oil company’s chairman and the head of the country’s sovereign wealth fund, along with cabinet ministers and the company’s leadership.

Their message would disappoint the hosts: international investors were unwilling to buy shares in Saudi Aramco anywhere near the $2tn valuation long sought by the kingdom’s powerful Crown Prince Mohammed bin Salman. No amount of sweeteners — from promises of higher dividends to bonus shares for local retail investors — had managed to change that reality.

At the heart of Prince Mohammed’s economic reforms, the IPO was at one time seen as a mechanism to raise $100bn from a 5 per cent share sale and help open up the Saudi economy to foreign investors. Not only was the size of the listing scaled back, so was its scope, along with any plans to list on international exchanges.

A Look Inside #Dubai's $350 Million 'Sustainable City'

Aramco Sees Nearly Enough Orders to Cover IPO After 3 Days - Bloomberg

Aramco Sees Nearly Enough Orders to Cover IPO After 3 Days - Bloomberg:

Saudi Aramco’s bankers are seeing sufficient early demand to pull off the state oil giant’s initial public offering just three days after launching the deal, people with knowledge of the matter said.

The IPO arrangers are indicating in private discussions that they already have nearly enough orders to cover the institutional portion of the deal, the people said, asking not to be identified because the information is private. They still have more than two weeks to go, as fund managers can subscribe to the stock until Dec. 4, according to Aramco’s prospectus.

Building early momentum is important in large equity offerings, as investors are encouraged to jump in when they see other institutions rushing to buy shares. The precise amount of real demand will only become clear later once underwriters compare the orders they’ve received, the people said.

New #UAE insolvency law means no jail for bounced cheques: Ministry | Uae – Gulf News

New insolvency law means no jail for bounced cheques: Ministry | Uae – Gulf News:

Getting a bounced cheque will no longer mean jail time, thanks to the new insolvency law that was announced earlier this week, Ministry of Finance (MoF) said on Tuesday.

Approved by the UAE Cabinet, the insolvency law is applicable to both citizens and expatriates, providing them with a structured payment plan to settle their debts. Under the new law, a civil court will appoint financial experts to assist debtors in finding a way to pay their debts, with the final settlement also involving the creditor once the court approves the plan.

Most importantly, the new law will ensure that no legal action will be taken against the debtor once they invoke their insolvency status and begin the process of restructuring their financial payments, during which time they will be allowed to continue working normally as well as taking bank loans if approved by the court.

#Kuwait's foreign minister named new PM amid government feud - Reuters

Kuwait's foreign minister named new PM amid government feud - Reuters:

Kuwait’s ruler on Tuesday named Sheikh Sabah al-Khalid al-Sabah as prime minister, elevating him from his role as foreign minister, after a row between ruling family members and parliament prompted the last government to resign.

Emir Sheikh Sabah al-Ahmad al-Sabah initially tapped caretaker premier Sheikh Jaber al-Mubarak al-Sabah to form a new cabinet but he rebuffed the offer on Monday, citing a media campaign against him.

The government resignation came after lawmakers sought a no-confidence vote against the interior minister and as a dispute between senior officials, including the interior and defence ministers, over alleged mishandling of public funds went public.

MIDEAST STOCKS- #AbuDhabi outperforms as major Gulf markets rise - Reuters

MIDEAST STOCKS-Abu Dhabi outperforms as major Gulf markets rise - Reuters:

Abu Dhabi stocks outperformed other Gulf
markets on Tuesday, led by financial-services and telecoms
shares, while Egypt was hit by sell-off among blue chips.

The Abu Dhabi index advanced 0.8%, led by a 1.7% gain
by Emirates Telecommunications and a 0.7% rise in
the United Arab Emirates' largest bank, First Abu Dhabi Bank
.

International Holding jumped 4.8%. After the market
closed, the aquaculture company said that it was calling off an
acquisition of SHUAA Capital International.

Saudi Arabia's benchmark index extended gains for a
third day, to end 0.6% higher.

The kingdom's largest petrochemical maker, Saudi Basic
Industries, rose 2.4%. Savola Group was up
3.2%.

#Abraaj Stake in Nigeria’s C&I Leasing to Drop After Share Sale - Bloomberg

Abraaj Stake in Nigeria’s C&I Leasing to Drop After Share Sale - Bloomberg:

Abraaj Group, the private-equity firm forced into liquidation last year after being accused mismanaging investor funds, will reduce its stake in C&I Leasing Plc by not subscribing to a share sale to existing investors.

“They have made it known to us they are not willing to take up their rights,” C&I Chief Executive Officer Andrew Otike-Odibi said by phone. Abraaj obtained the approval of Nigeria’s Securities and Exchange Commission to convert a $10 million loan to C&I into equity, which when executed will give liquidators of Abraaj 70% of the Lagos-based company.

#Saudi Aramco: Wall Street's Banks Walk Into a $2 Trillion Mess - Bloomberg

Saudi Aramco: Wall Street's Banks Walk Into a $2 Trillion Mess - Bloomberg:

The scaling back of Saudi Aramco’s initial public offering — despite nearly every major investment bank being involved — raises awkward questions about the effectiveness of mammoth syndicates of advisers and IPO book-runners. More appears to be less.

Almost all of the big Wall Street and European investment banks are on the roster for the sale of shares in the world’s most profitable company. Alongside them were no less than three so-called “special advisers,” M Klein & Co., Lazard Frères SAS and Moelis & Co. Usually, that job would be to prevent the book-runners (who underwrite the offering) from setting a price that’s an easy sell but less than ideal for the vendor. They probably had a more general role here. Either way, with three firms in this category, it’s a wonder there wasn’t another layer of advisers on top. 





The syndicate’s job was largely to sell the Aramco shares to big institutional funds in the West. Now, with Saudi Arabia focusing on a local sale, their work is pretty much redundant.

Emirates Says Still Considering Boeing 787 Order: Clark - Bloomberg

Emirates Says Still Considering Boeing 787 Order: Clark - Bloomberg:

Dubai-based carrier Emirates Airlines is still considering the Boeing 787 order and a decision is likely months away. That's according to the company's President Tim Clark. Speaking exclusively to Bloomberg's Yousef Gamal El-Din at the Dubai Airshow, Clark also says that 2020 will be a tough year for airline industry and that he doesn't see the Boeing 737 Max flying again this year. (Source: Bloomberg)

Russia unlikely to deepen oil output cuts: sources - Reuters

Russia unlikely to deepen oil output cuts: sources - Reuters:

Russia is unlikely to agree to deepen cuts in oil output at a meeting with fellow exporters next month, but could commit to extend existing curbs to support Saudi Arabia, three sources said on Tuesday.

The Organization of the Petroleum Exporting Countries meets on Dec. 5 at its headquarters in Vienna, followed by talks with a group of other exporters, which includes Russia, known as OPEC+.

On the same day, Dec 5, Saudi Arabia is set to announce the pricing for the public share placement of its energy giant, Saudi Aramco (IPO-ARMO.SE), in what it hopes will be the world’s largest IPO. The oil price at the time is likely to be critical to the pricing of the share offering.

The sources told Reuters that OPEC and its allies are worried about weak demand growth in 2020.

Aramco IPO banks face pared payday of $90 million or less - sources - Reuters

Aramco IPO banks face pared payday of $90 million or less - sources - Reuters:

The army of banks working on Saudi Aramco’s listing will earn combined fees of $90 million or less, according to three sources involved in the process, after the oil giant scaled back a deal initially viewed as a golden opportunity for high finance.

The fee pool for the flotation of the world’s most profitable company contrasts with other blockbuster listings in recent years. China’s Alibaba (BABA.N), for example, paid out an estimated $300 million for its 2014 listing in New York.

The 25 banks hired by Aramco as bookrunners for its domestic initial public offering (IPO) have seen their projected payouts dwindle despite spending years working on the much-delayed marquee listing.

Saudi Arabia originally put the state company’s value at $2 trillion, but this was revised down to a maximum of $1.7 trillion. Aramco decided on Sunday that it would offer only 1.5% of the company - below the expected 2%.

Global economy dodges recession by narrowest of margins: Kemp - Reuters

Global economy dodges recession by narrowest of margins: Kemp - Reuters:

The global economy may have narrowly avoided a recession, with most industrial and financial indicators pointing to a slight improvement in September-October after a sharp slowdown in the middle of the year.

World trade volumes were down almost 1.5% in the three months from June to August compared with the same period a year earlier, the worst performance since the recession of 2008/09.

The trade data are the most recent available from the Netherland Bureau for Economic Policy Analysis (“World trade monitor”, CPB, Oct. 25).

Since then, however, most equity and bond market indicators as well as industrial production surveys have shown the slowdown has eased (tmsnrt.rs/2O1uDoV).

Oil slips to $62 as trade talks drag on - Reuters

Oil slips to $62 as trade talks drag on - Reuters:

Oil fell for a second day on Tuesday, dropping to $62 a barrel on the limited progress in efforts to resolve the U.S.-China trade dispute, higher than expected Norwegian oil output and forecasts of rising U.S. crude inventories.

A Chinese government source was quoted by CNBC on Monday as saying there was gloom in Beijing about prospects for a trade deal. The long-running dispute has hit economic growth prospects and clouded the outlook on oil demand.

Brent crude LCOc1, the global benchmark, was down 47 cents at $61.97 a barrel at 1131 GMT. It had reached $63.65 — the highest since Sept. 24 — on Thursday. U.S. West Texas Intermediate (WTI) crude CLc1 dropped 50 cents to $56.55.

“The less than promising reports coming from China on the trade war may have taken some of the energy out of the rally,” said Craig Erlam, analyst at brokerage OANDA.

MIDEAST STOCKS- #Saudi extends gains, Air Arabia propels #Dubai - Reuters

MIDEAST STOCKS-Saudi extends gains, Air Arabia propels Dubai - Reuters:

Saudi Arabia’s stock market rose on Tuesday, extending gains for a third straight session, while Air Arabia aided a Dubai rebound.

In Saudi Arabia, the benchmark index rose 0.5% with Al Rajhi Bank and Saudi Telecom gaining 0.9% and 0.7% respectively.

Mediterranean and Gulf Cooperative Insurance and Reinsurance (MedGulf) rose 0.8%. On Sunday, the insurer signed a health insurance contract with Saudi Electricity.

Elsewhere, Basic Chemical Industries increased 0.5%, a day after said it had completed 35% of the work on its chlorine production project at Jubail Industrial City.

#Saudi Aramco flotation is a failure before it has even begun | Nils Pratley | Business | The Guardian

Saudi Aramco flotation is a failure before it has even begun | Nils Pratley | Business | The Guardian:

By all the main advertised yardsticks of success, the flotation of Saudi Aramco can be called a failure even before the shares have started trading. 


Once upon a time, the word’s most profitable company was going to be worth $2tn (£1.5tn), the number coveted by the Saudi Arabian crown prince, Mohammed bin Salman. That’s not happening. The official price range for the initial public offering (IPO) was set at the weekend at $1.6tn to $1.7tn.

A secondary goal was to insert Aramco shares into the portfolios of international investors. A few outsiders will still buy, but the Aramco IPO has morphed into a smaller affair in which the main targets are locals and other Gulf investors. Saudi banks have even been issuing loans to local retail investors to buy stock. Meanwhile, Aramco’s management has cancelled marketing roadshows in the US, Asia and Europe.