US is net exporter of oil for first time in decades | Financial Times:
The US has cemented its status as a net exporter in world oil markets, a sharp reversal from past years that could affect its ties to foreign allies.
The top oil producer and consumer exported 89,000 more barrels of crude oil and refined petroleum products a day than it imported in September, the first full month of a positive oil trade balance since the 1940s, the Energy Information Administration said Friday. Imports exceeded exports by 12m barrels a day a decade ago.
A variety of factors contributed to the shift: surging production from shale oilfields, the end of a crude oil export ban in 2015 and fuel economy improvements for cars that limited petrol demand even as highway travel rebounded from a recession.
Friday 29 November 2019
Harare’s historic Meikles Hotel set for modern makeover | Financial Times
Harare’s historic Meikles Hotel set for modern makeover | Financial Times:
It is a piece of Zimbabwe’s colonial past that has fallen on hard times — but Harare’s venerable Meikles Hotel could soon be under new management after a Dubai-based buyer approached the US chain Hyatt to run it.
Albwardy Investments, which offered to buy the hotel in the heart of Zimbabwe’s capital for $20m last week, is seeking an international operator as it plans to restore one of the African nation’s most historic buildings.
The proposed deal represents a rare vote of investor confidence in Zimbabwe, which faces its worst economic crisis in a decade under President Emmerson Mnangagwa.
The hotel has faded as Zimbabwe’s economic and political turmoil has deepened, acquiring a gloomy reputation for half-empty suites, mechanical breakdowns and an outdated ambience.
It is a piece of Zimbabwe’s colonial past that has fallen on hard times — but Harare’s venerable Meikles Hotel could soon be under new management after a Dubai-based buyer approached the US chain Hyatt to run it.
Albwardy Investments, which offered to buy the hotel in the heart of Zimbabwe’s capital for $20m last week, is seeking an international operator as it plans to restore one of the African nation’s most historic buildings.
The proposed deal represents a rare vote of investor confidence in Zimbabwe, which faces its worst economic crisis in a decade under President Emmerson Mnangagwa.
The hotel has faded as Zimbabwe’s economic and political turmoil has deepened, acquiring a gloomy reputation for half-empty suites, mechanical breakdowns and an outdated ambience.
#Saudi Aramco flotation to rely on local money | Financial Times
Saudi Aramco flotation to rely on local money | Financial Times:
Saudi Aramco’s stock market flotation will rely almost exclusively on local money, with new data confirming the full extent of the kingdom’s scaled back ambitions for the long-awaited offering.
Banks on the deal said on Friday about 4.9m retail investors in the kingdom bid for shares before the deadline on Thursday, with a total valuation of 47.4bn Saudi riyals ($12.6bn).
Institutional investor subscriptions totalled SR118.9bn with the subscription period ending on December 4, Samba Capital, NCB Capital and HSBC Saudi Arabia said.
Less than 11 per cent were made up by non-Saudi investors, with this portion also accounting for investment from elsewhere in the Gulf.
Saudi Aramco’s stock market flotation will rely almost exclusively on local money, with new data confirming the full extent of the kingdom’s scaled back ambitions for the long-awaited offering.
Banks on the deal said on Friday about 4.9m retail investors in the kingdom bid for shares before the deadline on Thursday, with a total valuation of 47.4bn Saudi riyals ($12.6bn).
Institutional investor subscriptions totalled SR118.9bn with the subscription period ending on December 4, Samba Capital, NCB Capital and HSBC Saudi Arabia said.
Less than 11 per cent were made up by non-Saudi investors, with this portion also accounting for investment from elsewhere in the Gulf.
Is Today’s Oil Price Plunge A Sign Of Things To Come? | OilPrice.com
Is Today’s Oil Price Plunge A Sign Of Things To Come? | OilPrice.com:
Oil prices tanked early on Black Friday on rumors that OPEC’s leading members aren’t willing to deepen output cuts. At 12:40 PM ET, WTI was down 4.59% at $55.54 and Brent was trading 4.27% lower at $60.57.
Oil prices have held firm in recent weeks on the understanding that Saudi Arabia was willing to at least extend the current production quota through June 2020.
In light of the ongoing Aramco IPO process, Saudi Arabia’s highest priority has been to keep oil prices steady around $60 per barrel. The Kingdom, however, is facing some resistance from other members of the oil cartel ahead of its next meeting.
Riyadh’s largest partner in the OPEC+ production cut deal, Russia, has been far less compliant and less vocal about rolling over the current production cuts. Russian oil majors have thus far been slow to respond to Moscow’s mandate to cut oil production and, as a result, the country continues to overproduce. Russian oil CEOs Igor Sechin and Vagit Alekperov even expect OPEC to delay a decision about extending oil production to March 2020.
Oil prices tanked early on Black Friday on rumors that OPEC’s leading members aren’t willing to deepen output cuts. At 12:40 PM ET, WTI was down 4.59% at $55.54 and Brent was trading 4.27% lower at $60.57.
Oil prices have held firm in recent weeks on the understanding that Saudi Arabia was willing to at least extend the current production quota through June 2020.
In light of the ongoing Aramco IPO process, Saudi Arabia’s highest priority has been to keep oil prices steady around $60 per barrel. The Kingdom, however, is facing some resistance from other members of the oil cartel ahead of its next meeting.
Riyadh’s largest partner in the OPEC+ production cut deal, Russia, has been far less compliant and less vocal about rolling over the current production cuts. Russian oil majors have thus far been slow to respond to Moscow’s mandate to cut oil production and, as a result, the country continues to overproduce. Russian oil CEOs Igor Sechin and Vagit Alekperov even expect OPEC to delay a decision about extending oil production to March 2020.
#Saudi Aramco IPO oversubscribed so far, but not by big margin - Reuters
Saudi Aramco IPO oversubscribed so far, but not by big margin - Reuters:
Saudi Aramco’s initial public offering (IPO) was on course to be oversubscribed but not by a huge margin, according to figures released so far by the lead manager before a Dec. 4 close for institutional investors to submit offers.
Bids received by Friday from institutional and retail investors totaled $44.3 billion, lead manager Samba Capital said, about 1.7 times the value Saudi Arabia aims to raise from selling a 1.5% stake in the state-owned oil giant.
Although the IPO has received more than enough bids, the level of interest is relatively muted compared to other emerging market IPOs and subdued even when compared to the listing of a top Saudi bank in 2014 that was oversubscribed many times over.
If Riyadh hits its target of raising 96 billion riyals ($25.6 billion) or more it would still be a world record IPO, valuing the company at about $1.7 trillion.
Saudi Aramco’s initial public offering (IPO) was on course to be oversubscribed but not by a huge margin, according to figures released so far by the lead manager before a Dec. 4 close for institutional investors to submit offers.
Bids received by Friday from institutional and retail investors totaled $44.3 billion, lead manager Samba Capital said, about 1.7 times the value Saudi Arabia aims to raise from selling a 1.5% stake in the state-owned oil giant.
Although the IPO has received more than enough bids, the level of interest is relatively muted compared to other emerging market IPOs and subdued even when compared to the listing of a top Saudi bank in 2014 that was oversubscribed many times over.
If Riyadh hits its target of raising 96 billion riyals ($25.6 billion) or more it would still be a world record IPO, valuing the company at about $1.7 trillion.
Oil slumps but sets monthly gain ahead of OPEC meeting - Reuters
Oil slumps but sets monthly gain ahead of OPEC meeting - Reuters:
Oil prices fell on Friday, with U.S. crude dropping more than 4%, on fresh trade tensions and record high U.S. crude production, but they still ended the month higher as OPEC watchers expect an extension next week to a pact to throttle oil output beyond March.
Brent crude futures LCOc1 settled down $1.44 at $62.43 a barrel, and was down 1.5% on the week. Still, the contract posted its biggest monthly gain since April with a rise of about 6%.
West Texas Intermediate (WTI) futures CLc1 settled down $2.94 at $55.17, falling of 4.1% on the week, after three consecutive increases. On a monthly basis, WTI is poised for a jump of about 2.3%, its highest since June.
Trading volumes were low due after Thursday’s U.S. Thanksgiving Day holiday.
Oil prices fell on Friday, with U.S. crude dropping more than 4%, on fresh trade tensions and record high U.S. crude production, but they still ended the month higher as OPEC watchers expect an extension next week to a pact to throttle oil output beyond March.
Brent crude futures LCOc1 settled down $1.44 at $62.43 a barrel, and was down 1.5% on the week. Still, the contract posted its biggest monthly gain since April with a rise of about 6%.
West Texas Intermediate (WTI) futures CLc1 settled down $2.94 at $55.17, falling of 4.1% on the week, after three consecutive increases. On a monthly basis, WTI is poised for a jump of about 2.3%, its highest since June.
Trading volumes were low due after Thursday’s U.S. Thanksgiving Day holiday.
#SaudiArabia Signals It’s Had Enough of OPEC+ Cheating on Quotas - Bloomberg
Saudi Arabia Signals It’s Had Enough of OPEC+ Cheating on Quotas - Bloomberg:
For the last year, Saudi Arabia has largely turned a blind eye to cheaters within the OPEC+ alliance, cutting its own output more than agreed to offset over-production from the likes of Iraq and even Russia. Now, Riyadh’s had enough.
Prince Abdulaziz bin Salman, who took over from Khalid Al-Falih in September, will likely use his first OPEC meeting as Saudi oil minister next week to signal OPEC’s dominant producer is no longer willing to compensate for other members’ non-compliance, according to people familiar with the kingdom’s thinking. OPEC meets in Vienna on Dec. 5, followed by the larger OPEC+ alliance, which includes Russia, the next day.
“Saudi Arabia is taking a harder line than in the past,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. in London. “Riyadh is making very clear that they don’t want to shoulder all the cuts alone.”
For the last year, Saudi Arabia has largely turned a blind eye to cheaters within the OPEC+ alliance, cutting its own output more than agreed to offset over-production from the likes of Iraq and even Russia. Now, Riyadh’s had enough.
Prince Abdulaziz bin Salman, who took over from Khalid Al-Falih in September, will likely use his first OPEC meeting as Saudi oil minister next week to signal OPEC’s dominant producer is no longer willing to compensate for other members’ non-compliance, according to people familiar with the kingdom’s thinking. OPEC meets in Vienna on Dec. 5, followed by the larger OPEC+ alliance, which includes Russia, the next day.
“Saudi Arabia is taking a harder line than in the past,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. in London. “Riyadh is making very clear that they don’t want to shoulder all the cuts alone.”
Exclusive: Brazil, China, #UAE firms in second round of bids for Petrobras refineries - sources - Reuters
Exclusive: Brazil, China, UAE firms in second round of bids for Petrobras refineries - sources - Reuters:
Brazil’s state-controlled oil company Petroleo Brasileiro SA (PETR4.SA) has selected four groups for the second round of bidding for four refineries up for sale, including China’s Sinopec, Abu Dhabi’s state investor and two Brazilian firms, according to four people with knowledge of the matter.
Sinopec, Abu Dhabi’s Mubadala Investment Co and Brazil’s Ultrapar Participações SA (UGPA3.SA) and Raizen were chosen to go through to the next phase, they said. Brazil’s Raizen is a joint venture between Cosan SA (CSAN3.SA) and Royal Dutch Shell Plc (RDSa.L).
Petrobras, as the oil company is known, received non- binding offers in early November for the first block of refineries it plans to sell. It selected the groups that will progress to the second round last week, the sources added, declining to be named as the details are confidential.
Brazil’s state-controlled oil company Petroleo Brasileiro SA (PETR4.SA) has selected four groups for the second round of bidding for four refineries up for sale, including China’s Sinopec, Abu Dhabi’s state investor and two Brazilian firms, according to four people with knowledge of the matter.
Sinopec, Abu Dhabi’s Mubadala Investment Co and Brazil’s Ultrapar Participações SA (UGPA3.SA) and Raizen were chosen to go through to the next phase, they said. Brazil’s Raizen is a joint venture between Cosan SA (CSAN3.SA) and Royal Dutch Shell Plc (RDSa.L).
Petrobras, as the oil company is known, received non- binding offers in early November for the first block of refineries it plans to sell. It selected the groups that will progress to the second round last week, the sources added, declining to be named as the details are confidential.
Oil mixed amid slow holiday trade before OPEC+ meeting - Reuters
Oil mixed amid slow holiday trade before OPEC+ meeting - Reuters:
Oil prices were mixed on Friday in quiet trade with the U.S. Thanksgiving holiday limiting activity, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of an output cut agreement to support the market.
Brent crude futures LCOc1 were down 8 cents, or 0.1%, at $63.79 a barrel by 0740 GMT. Brent futures are set for a slight gain of 0.6% for the week, the fourth weekly increase, during which prices have climbed 3.4%.
West Texas Intermediate (WTI) futures CLc1 were up 4 cents, or 0.1%, at $58.15 a barrel.
For the week, WTI is set to gain 0.6%, the fourth weekly increase, during which prices have risen 3.4%.
Oil prices were mixed on Friday in quiet trade with the U.S. Thanksgiving holiday limiting activity, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of an output cut agreement to support the market.
Brent crude futures LCOc1 were down 8 cents, or 0.1%, at $63.79 a barrel by 0740 GMT. Brent futures are set for a slight gain of 0.6% for the week, the fourth weekly increase, during which prices have climbed 3.4%.
West Texas Intermediate (WTI) futures CLc1 were up 4 cents, or 0.1%, at $58.15 a barrel.
For the week, WTI is set to gain 0.6%, the fourth weekly increase, during which prices have risen 3.4%.
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