Oil edges lower after U.S. crude and gasoline build - Reuters:
Oil eased on Wednesday after a report showing U.S. crude inventories grew unexpectedly last week and gasoline stocks surged, but losses were limited by optimism that a U.S.-China trade deal would be reached soon.
Brent crude futures LCOc1 fell 34 cents, or 0.5%, to $63.93 a barrel by 1:14 p.m. EST (1814 GMT). U.S. West Texas Intermediate crude CLc1 fell 34 cents, or 0.8%, to $57.93 a barrel.
WTI trade volumes were also on track to be lower for the week ahead of the U.S. Thanksgiving holiday.
U.S. crude stocks swelled by 1.6 million barrels last week as production hit a record high at 12.9 million barrels per day and refinery runs slowed, the Energy Information Administration said. Analysts in a Reuters poll had forecast a drop of 418,000 barrels.
Wednesday 27 November 2019
Man City stake sale breaks valuation record for a sports group | Financial Times
Man City stake sale breaks valuation record for a sports group | Financial Times:
Manchester City’s owner has agreed to sell a $500m stake to Silver Lake in a deal that breaks a record in sports valuations and fuels the football group’s international expansion.
The US private equity firm is buying more than 10 per cent of City Football Group at a valuation of $4.8bn, injecting new capital into the Abu Dhabi-controlled organisation that owns Manchester City and affiliated teams in the US and China.
On Wednesday, Silver Lake and CFG announced the deal, which was first reported by the Financial Times. “We and Silver Lake share the strong belief in the opportunities being presented by the convergence of entertainment, sports and technology,” CFG chairman Khaldoon Al Mubarak said in a statement. The companies said the transaction was subject to regulatory approval in some territories.
Manchester City’s owner has agreed to sell a $500m stake to Silver Lake in a deal that breaks a record in sports valuations and fuels the football group’s international expansion.
The US private equity firm is buying more than 10 per cent of City Football Group at a valuation of $4.8bn, injecting new capital into the Abu Dhabi-controlled organisation that owns Manchester City and affiliated teams in the US and China.
On Wednesday, Silver Lake and CFG announced the deal, which was first reported by the Financial Times. “We and Silver Lake share the strong belief in the opportunities being presented by the convergence of entertainment, sports and technology,” CFG chairman Khaldoon Al Mubarak said in a statement. The companies said the transaction was subject to regulatory approval in some territories.
Russia Set to Overshoot Oil Quota Yet Again Ahead of OPEC+ Talks - Bloomberg
Russia Set to Overshoot Oil Quota Yet Again Ahead of OPEC+ Talks - Bloomberg:
Russia, OPEC’s largest ally in a deal to cut oil production, is once again failing to keep its side of the bargain.
The country pumped 39.884 million tons of crude and condensate from Nov. 1 to Nov. 26, according to Energy Ministry CDU-TEK data seen by Bloomberg. That equals a daily average of 11.244 million barrels -- based on a 7.33 barrels-per-ton ratio -- which is 54,000 more than its OPEC+ cap.
Assuming no sharp cut in output in the remaining four days of the month, November will become the eighth month this year of non-compliance by Russia. That leaves the country in an awkward position ahead of ministerial talks with other members of the OPEC+ coalition in Vienna next week, where de facto leader Saudi Arabia is likely to lean on laggards to adhere to the agreement.
Russia, OPEC’s largest ally in a deal to cut oil production, is once again failing to keep its side of the bargain.
The country pumped 39.884 million tons of crude and condensate from Nov. 1 to Nov. 26, according to Energy Ministry CDU-TEK data seen by Bloomberg. That equals a daily average of 11.244 million barrels -- based on a 7.33 barrels-per-ton ratio -- which is 54,000 more than its OPEC+ cap.
Assuming no sharp cut in output in the remaining four days of the month, November will become the eighth month this year of non-compliance by Russia. That leaves the country in an awkward position ahead of ministerial talks with other members of the OPEC+ coalition in Vienna next week, where de facto leader Saudi Arabia is likely to lean on laggards to adhere to the agreement.
Oil Prices Fall As EIA Reports Crude, Gasoline And Distillate Build | OilPrice.com
Oil Prices Fall As EIA Reports Crude, Gasoline And Distillate Build | OilPrice.com:
Crude oil prices fell lower today after the Energy Information Administration reported a crude oil inventory increase of 1.6 million barrels for the week to November 22. The build in gasoline stockpiles, however, was larger—and distillate fuels booked a rise as well.
Analysts had expected a decline of about 350,000 barrels, after last week the EIA reported an inventory build of 1.4 million barrels. Despite the build, however, prices trended higher that day on renewed optimism about U.S.-Chinese relations.
Crude oil inventories are now 3 percent above the upper limit of the average for this time of the year, the EIA said.
The EIA also reported a sizeable 5.1-million-barrel build in gasoline stockpiles, with production averaging 10.1 million bpd last week. This compares with a 1.8-million-barrel increase in gasoline inventories a week earlier, with production averaging 10.1 million bpd.
Crude oil prices fell lower today after the Energy Information Administration reported a crude oil inventory increase of 1.6 million barrels for the week to November 22. The build in gasoline stockpiles, however, was larger—and distillate fuels booked a rise as well.
Analysts had expected a decline of about 350,000 barrels, after last week the EIA reported an inventory build of 1.4 million barrels. Despite the build, however, prices trended higher that day on renewed optimism about U.S.-Chinese relations.
Crude oil inventories are now 3 percent above the upper limit of the average for this time of the year, the EIA said.
The EIA also reported a sizeable 5.1-million-barrel build in gasoline stockpiles, with production averaging 10.1 million bpd last week. This compares with a 1.8-million-barrel increase in gasoline inventories a week earlier, with production averaging 10.1 million bpd.
Russia to press OPEC+ to change its oil output calculations - Reuters
Russia to press OPEC+ to change its oil output calculations - Reuters:
Russia is likely to call on fellow oil producers to change the way Moscow’s output is measured when most of the world’s biggest oil-producing nations meet next month in Vienna, Russian and OPEC sources say.
For three years OPEC and non-OPEC nations have curbed oil output in order to balance the market and support prices, but Russia has been measuring its production differently to the others.
Unlike Saudi Arabia and other OPEC producers, Russia has been including condensate - a high-premium light type of crude oil mainly extracted during gas production - in its crude oil production numbers.
In the past this has caused no problems for Moscow, but with Russia launching new gas fields in the Arctic and East Siberia and opening a new gas pipeline to China, its gas condensate production is rising.
Russia is likely to call on fellow oil producers to change the way Moscow’s output is measured when most of the world’s biggest oil-producing nations meet next month in Vienna, Russian and OPEC sources say.
For three years OPEC and non-OPEC nations have curbed oil output in order to balance the market and support prices, but Russia has been measuring its production differently to the others.
Unlike Saudi Arabia and other OPEC producers, Russia has been including condensate - a high-premium light type of crude oil mainly extracted during gas production - in its crude oil production numbers.
In the past this has caused no problems for Moscow, but with Russia launching new gas fields in the Arctic and East Siberia and opening a new gas pipeline to China, its gas condensate production is rising.
MIDEAST STOCKS-DIB supports #Dubai as most Gulf markets fall - Agricultural Commodities - Reuters
MIDEAST STOCKS-DIB supports Dubai as most Gulf markets fall - Agricultural Commodities - Reuters:
Most Gulf stock markets extended the
previous session's losses on Wednesday following a rebalancing
of MSCI's benchmark emerging market index, but gains in Dubai
Islamic Bank helped Dubai rebound.
Global index provider MSCI on Tuesday completed an increase
in the weighting of mainland Chinese stocks, or A shares, in its
widely followed emerging markets benchmark. Most Gulf
stock indexes slipped into negative territory after that as
passive investors withdrew funds from the region, which now
accounts for a smaller portion of the index.
The benchmark Saudi index led the losses and
declined by a further 0.3% on Wednesday with financials leading
the way. Al Rajhi Bank and Saudi British Bank
were down 1% and 3.4% respectively.
Most Gulf stock markets extended the
previous session's losses on Wednesday following a rebalancing
of MSCI's benchmark emerging market index, but gains in Dubai
Islamic Bank helped Dubai rebound.
Global index provider MSCI on Tuesday completed an increase
in the weighting of mainland Chinese stocks, or A shares, in its
widely followed emerging markets benchmark. Most Gulf
stock indexes slipped into negative territory after that as
passive investors withdrew funds from the region, which now
accounts for a smaller portion of the index.
The benchmark Saudi index led the losses and
declined by a further 0.3% on Wednesday with financials leading
the way. Al Rajhi Bank and Saudi British Bank
were down 1% and 3.4% respectively.
'Extremely Bullish' on #UAE Banks, Says Marie Salem, Head of Institutions at Daman Investments - Bloomberg
'Extremely Bullish' on U.A.E. Banks, Says Marie Salem, Head of Institutions at Daman Investments - Bloomberg:
Marie Salem, head of institutions at Daman Investments, discusses what Saudi Aramco's initial public offering means for the kingdom's banks and the outlook for United Arab Emirates lenders. Dubai Islamic Bank PJSC said Monday it agreed to buy Noor Bank PJSC in an all-share deal that potentially values the transaction at about $940 million. Salem speaks with Tracy Alloway and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Marie Salem, head of institutions at Daman Investments, discusses what Saudi Aramco's initial public offering means for the kingdom's banks and the outlook for United Arab Emirates lenders. Dubai Islamic Bank PJSC said Monday it agreed to buy Noor Bank PJSC in an all-share deal that potentially values the transaction at about $940 million. Salem speaks with Tracy Alloway and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil and politics risks to stable MENA sovereign outlook: Fitch Ratings | ZAWYA MENA Edition
Oil and politics risks to stable MENA sovereign outlook: Fitch Ratings | ZAWYA MENA Edition:
Outlooks are mostly stable on sovereign ratings in the Middle East North Africa Region (MENA), but renewed weakness in oil prices and regional and domestic political developments continue to pose a downside risk to ratings in 2020, Fitch Ratings says.
Among the 14 Fitch-rated MENA sovereigns, only Tunisia (B+) is on a Negative Outlook, maintained in June 2019. In August, Fitch downgraded Lebanon to 'CCC' from 'B-', in light of intensifying pressure on the country's financing model. A 'CCC' rating indicates that default is a real possibility, and Fitch does not typically assign Outlooks at this rating level. To different degrees, both Lebanon and Tunisia have wide twin deficits, high and rising public and external debt, a challenging political environment and tepid economic growth.
Headline fiscal balances will continue to weaken across much of the Gulf Cooperation Council (GCC) in 2020. We expect governments to reverse some of the fiscal loosening that took place amid an oil revenue windfall in 2018, but this will not be sufficient to completely offset the expected moderation of oil prices amid continued pressure on production volumes.
Outlooks are mostly stable on sovereign ratings in the Middle East North Africa Region (MENA), but renewed weakness in oil prices and regional and domestic political developments continue to pose a downside risk to ratings in 2020, Fitch Ratings says.
Among the 14 Fitch-rated MENA sovereigns, only Tunisia (B+) is on a Negative Outlook, maintained in June 2019. In August, Fitch downgraded Lebanon to 'CCC' from 'B-', in light of intensifying pressure on the country's financing model. A 'CCC' rating indicates that default is a real possibility, and Fitch does not typically assign Outlooks at this rating level. To different degrees, both Lebanon and Tunisia have wide twin deficits, high and rising public and external debt, a challenging political environment and tepid economic growth.
Headline fiscal balances will continue to weaken across much of the Gulf Cooperation Council (GCC) in 2020. We expect governments to reverse some of the fiscal loosening that took place amid an oil revenue windfall in 2018, but this will not be sufficient to completely offset the expected moderation of oil prices amid continued pressure on production volumes.
Islamic Development Bank set to raise 1 bln euro in green sukuk - Reuters
Islamic Development Bank set to raise 1 bln euro in green sukuk - Reuters:
Jeddah-based Islamic Development Bank is set to raise 1 billion euro ($1.10 billion) through five-year “green” sukuk, or Islamic bonds, a document showed on Wednesday.
The triple-A rated financial institution is offering investors 28 basis points over mid-swaps for the debt sale.
Green bonds are a growing category of fixed-income securities, and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.
Jeddah-based Islamic Development Bank is set to raise 1 billion euro ($1.10 billion) through five-year “green” sukuk, or Islamic bonds, a document showed on Wednesday.
The triple-A rated financial institution is offering investors 28 basis points over mid-swaps for the debt sale.
Green bonds are a growing category of fixed-income securities, and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.
Manchester City owner scores $4.8 billion price tag with stake sale - Reuters
Manchester City owner scores $4.8 billion price tag with stake sale - Reuters:
Manchester City’s Abu Dhabi-controlled owner has agreed to sell a $500 million stake to U.S. private equity firm Silver Lake, making it the world’s most valuable soccer group with a $4.8 billion price tag.
Tech-focused Silver Lake will buy just over 10% of City Football Group (CFG), which owns reigning English Premier League champions Manchester City and teams in the United States, Australia and China, the companies said on Wednesday.
The investment crowns a rags to riches story for Manchester City, which spent much of the 1990s in the doldrums but broke into the big league of world soccer with the help of Middle Eastern cash.
Manchester City’s Abu Dhabi-controlled owner has agreed to sell a $500 million stake to U.S. private equity firm Silver Lake, making it the world’s most valuable soccer group with a $4.8 billion price tag.
Tech-focused Silver Lake will buy just over 10% of City Football Group (CFG), which owns reigning English Premier League champions Manchester City and teams in the United States, Australia and China, the companies said on Wednesday.
The investment crowns a rags to riches story for Manchester City, which spent much of the 1990s in the doldrums but broke into the big league of world soccer with the help of Middle Eastern cash.
#Saudi Aramco IPO unlikely to have 'direct fiscal effect' - Fitch - Arabianbusiness
Saudi Aramco IPO unlikely to have 'direct fiscal effect' - Fitch - Arabianbusiness:
Saudi Aramco's IPO will have little direct fiscal effect, but could help offset the economic impact of renewed government austerity measures by allowing the Public Investment Fund (PIF) to boost domestic investments, according to Fitch Ratings.
The ratings agency said in a new research note that the IPO's effect on Saudi Arabia's external balance sheet will depend on the nature of PIF investments and the sources of financing for the IPO.
Fitch said the IPO could generate proceeds of around SR90-96 billion ($24-26 billion or 3 percent of GDP) at the indicative valuation range of $1.6-1.7 trillion.
These proceeds will flow to the PIF, which will use them for domestic and foreign investments. The funds will be small relative to medium-term financing needs, the agency noted.
Saudi Aramco's IPO will have little direct fiscal effect, but could help offset the economic impact of renewed government austerity measures by allowing the Public Investment Fund (PIF) to boost domestic investments, according to Fitch Ratings.
The ratings agency said in a new research note that the IPO's effect on Saudi Arabia's external balance sheet will depend on the nature of PIF investments and the sources of financing for the IPO.
Fitch said the IPO could generate proceeds of around SR90-96 billion ($24-26 billion or 3 percent of GDP) at the indicative valuation range of $1.6-1.7 trillion.
These proceeds will flow to the PIF, which will use them for domestic and foreign investments. The funds will be small relative to medium-term financing needs, the agency noted.
#AbuDhabi, #Kuwait sovereign funds plan investment in Aramco IPO: sources - Reuters
Abu Dhabi, Kuwait sovereign funds plan investment in Aramco IPO: sources - Reuters:
The sovereign wealth funds of Abu Dhabi and Kuwait plan to invest in the initial public offering (IPO) of Saudi Aramco, which is relying mainly on Saudi and Gulf investors to raise up to $25.6 billion, sources familiar with the matter said.
Abu Dhabi Investment Authority (ADIA) is weighing an investment of at least $1 billion, five sources familiar with the matter told Reuters. A final decision on the amount requires board approval, one of the sources said.
Kuwait Investment Authority (KIA) also plans to invest in the IPO, two of the sources said. The size of the potential deal was not immediately known.
The sovereign wealth funds of Abu Dhabi and Kuwait plan to invest in the initial public offering (IPO) of Saudi Aramco, which is relying mainly on Saudi and Gulf investors to raise up to $25.6 billion, sources familiar with the matter said.
Abu Dhabi Investment Authority (ADIA) is weighing an investment of at least $1 billion, five sources familiar with the matter told Reuters. A final decision on the amount requires board approval, one of the sources said.
Kuwait Investment Authority (KIA) also plans to invest in the IPO, two of the sources said. The size of the potential deal was not immediately known.
Oil eases on growing U.S. stockpiles; U.S.-China trade deal hopes check losses - Reuters
Oil eases on growing U.S. stockpiles; U.S.-China trade deal hopes check losses - Reuters:
Oil slipped on Wednesday after an industry report showed a surprise build-up in U.S. crude inventories, but optimism surrounding the signing of the first phase of a U.S.-China trade deal prevented a bigger slide in prices.
Brent crude futures LCOc1 dropped 9 cents, or 0.14%, to $64.18 a barrel by 0725 GMT, while West Texas Intermediate (WTI) crude futures CLc1 fell 12 cents, or 0.21%, to $58.29 per barrel.
Wednesday’s decline reversed two days of gains, with WTI climbing 1.1% through Tuesday and Brent gaining 1.4% during the period, on the expectation that China and the United States, the world’s two biggest crude oil users, would soon sign a preliminary agreement beginning an end to their 16-month trade war.
Oil slipped on Wednesday after an industry report showed a surprise build-up in U.S. crude inventories, but optimism surrounding the signing of the first phase of a U.S.-China trade deal prevented a bigger slide in prices.
Brent crude futures LCOc1 dropped 9 cents, or 0.14%, to $64.18 a barrel by 0725 GMT, while West Texas Intermediate (WTI) crude futures CLc1 fell 12 cents, or 0.21%, to $58.29 per barrel.
Wednesday’s decline reversed two days of gains, with WTI climbing 1.1% through Tuesday and Brent gaining 1.4% during the period, on the expectation that China and the United States, the world’s two biggest crude oil users, would soon sign a preliminary agreement beginning an end to their 16-month trade war.
MIDEAST STOCKS-Most major Gulf markets up but banks hurt #Qatar - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most major Gulf markets up but banks hurt Qatar - Agricultural Commodities - Reuters:
Most major Gulf stock markets rebounded on Wednesday, a day after tumbling on a rebalancing of MSCI indexes, while Qatar shares fell in early trade.
In Saudi Arabia, the benchmark index rose 0.3% with Al Rajhi Bank and Saudi Basic Industries increasing 1.3% and 0.8% respectively.
Global index provider MSCI on Tuesday implemented the final step of an increase in the weighting of mainland Chinese stocks, or A shares, in its widely followed emerging markets benchmark . Most Gulf stock indexes slipped into negative territory following the event, with Saudi leading the losses.
Dubai’s index rose 0.2%, as Dubai Islamic Bank gained 1.7% and DAMAC Properties leapt 3.6%.
Most major Gulf stock markets rebounded on Wednesday, a day after tumbling on a rebalancing of MSCI indexes, while Qatar shares fell in early trade.
In Saudi Arabia, the benchmark index rose 0.3% with Al Rajhi Bank and Saudi Basic Industries increasing 1.3% and 0.8% respectively.
Global index provider MSCI on Tuesday implemented the final step of an increase in the weighting of mainland Chinese stocks, or A shares, in its widely followed emerging markets benchmark . Most Gulf stock indexes slipped into negative territory following the event, with Saudi leading the losses.
Dubai’s index rose 0.2%, as Dubai Islamic Bank gained 1.7% and DAMAC Properties leapt 3.6%.
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