Salesman Cleared in $2 Billion African Scam in Blow to U.S. - Bloomberg

Salesman Cleared in $2 Billion African Scam in Blow to U.S. - Bloomberg:

A Privinvest Group salesman was acquitted of defrauding investors in a $2 billion global loan scandal that prosecutors said involved more than $200 million in bribes to bankers and Mozambican officials, a blow to U.S. efforts to police corruption abroad.

Jean Boustani, who worked for the global shipbuilding company based in the United Arab Emirates, was found not guilty Monday on all three conspiracy counts against him -- to commit wire fraud, securities fraud and launder money. He smiled and crossed himself after the verdict was read out in federal court in Brooklyn, N.Y., and embraced each of his lawyers in a bear hug.

“Your honor, first of all, I apologize for being emotional, a little bit. It wasn’t easy for me after 11 months in jail,” he told U.S. District Judge William Kuntz. Boustani, who’d been in jail in the U.S. since his arrest in early January at John F. Kennedy International Airport in New York, thanked the court “for all your time, dedication and for your fair judgment throughout this trial.” He raised his fist in the air on the way out.

The verdict came down to the venue, three jurors,  including the foreman, said in interviews afterward. All three, who declined to give their names, said the panel didn’t see how federal prosecutors in Brooklyn, in the Eastern District of New York, had the authority to prosecute crimes that hadn’t occurred in their jurisdiction.

Fracking Slowdown in Permian Basin Leads to More Job Losses - Bloomberg

https://www.bloomberg.com/news/articles/2019-12-02/fracking-slowdown-in-permian-basin-leads-to-more-job-losses:

The throttling back of fracking in the world’s biggest shale patch is hitting the unemployment line in Texas.

Fracking contractor Superior Energy Services Inc. slashed 112 jobs from its Pumpco unit in the Permian Basin last month, according to an email Monday from the Texas Workforce Commission. The state received notice of the Ector County reductions on Nov. 22, with the firing date set for three days after that, according to the commission. 

Employment in the Permian Basin of West Texas has fallen by 400 through the first 10 months of the year, a massive change from the 16,700 jobs added in the same period last year, according to a report last week from the Federal Reserve Bank of Dallas.

Permian Basin frack crews, who are brought in to complete the final stage for creating a new oil well, have dropped 21% so far this year, according Primary Vision Inc. For all of 2018, frack crews in the West Texas and New Mexico oil fields expanded by 1.3%.

Aramco CEO Survives Drones, Outlasts Rival in Hairy IPO Year - Bloomberg

Aramco CEO Survives Drones, Outlasts Rival in Hairy IPO Year - Bloomberg:

Saudi Aramco Chief Executive Officer Amin Nasser will find himself at the helm of the world’s largest publicly traded company when the shares of the giant oil producer start trading on the Riyadh stock exchange later this month.

It will cap a stormy year for the 60-year-old petroleum engineer, who’s proven a skillful survivor. He demonstrated his managerial prowess after the Sept. 14 drone and missile attacks that knocked out more than half of the state producer’s oil production: Aramco restored output within 11 days and continued to meet its commitments to customers. 

Nasser also steered Aramco’s first bond issue, a $12 billion deal that was 10 times oversubscribed. The April sale, which earned him the nickname of the “$100 billion man,” underscored Saudi Arabia’s return to global capital markets after the kingdom’s ostracism over the assassination of columnist Jamal Khashoggi last year. Although the IPO has proven a tougher sell to international investors, its climax will cap almost four years of work for Nasser.

#Kuwait Said to Invest as Much as $1 Billion in Aramco IPO - Bloomberg

Kuwait Said to Invest as Much as $1 Billion in Aramco IPO - Bloomberg:

Kuwait’s government will invest as much as $1 billion in the initial public offering of Saudi Aramco as the kingdom asks regional allies to bolster the record share sale, according to people familiar with the matter.

The Kuwait Investment Authority had been reluctant to commit significant funds to the IPO, but was told by the government that a stake was in the country’s strategic interest, the people said, asking not to be identified discussing a confidential matter. Kuwait communicated its decision to Aramco on Monday.

Kuwait’s decision follows Abu Dhabi, the oil-rich member of the United Emirates, which has decided to invest $1.5 billion in Aramco, people familiar with the matter said last week.

Bringing in another major investor from the Gulf region will be a relief for Saudi Arabia after plans to market the IPO globally were abandoned. Aramco had high hopes of drawing in sovereign investors, including a big purchase from China, but has yet to announce any firm commitments.

UPDATE 1-Germany's Lufthansa says not open to #Qatar investment - Reuters

UPDATE 1-Germany's Lufthansa says not open to Qatar investment - Reuters:

Lufthansa responded coldly on Monday to a report that rival Qatar Airways was interested in taking a stake in or collaborating with the German airline.

The Gulf carrier, which holds minority stakes in airlines including IAG, Cathay Pacific, and China Southern Airlines, has been seeking to boost collaborations.

Its chief executive Akbar al-Baker was quoted by German news agency dpa on Sunday as saying he was interested in investing in Lufthansa to seize business opportunities in Europe’s biggest economy.

“We did not have Lufthansa privatised in Germany to have it nationalised in Qatar,” a Lufthansa spokesman said.

RPT-COLUMN-China's new Russian natural gas pipeline won't worry LNG, oversupply will: Russell - Reuters

RPT-COLUMN-China's new Russian natural gas pipeline won't worry LNG, oversupply will: Russell - Reuters:

A new pipeline from Russia that will eventually be capable of delivering more than a quarter of China’s current level of natural gas imports sounds like the last thing embattled liquefied natural gas (LNG) producers need.

The Power of Siberia pipeline was scheduled on Monday to start delivering natural gas from Russia to China’s northeast, bringing the cleaner-burning fuel some 3,000 kilometres (1,865 miles) to a region that up to now has been heavily reliant on coal.

The pipeline is due to reach its full capacity of 38 billion cubic metres (bcm) a year by 2025, which is equivalent to about 28.1 million tonnes of LNG.

China’s total natural gas imports from LNG and existing pipelines from central Asia were 77.1 million tonnes in the first 10 months of 2019, meaning they should be around 93 million tonnes for the full year.

UPDATE 1- #Kuwait bourse share sale oversubscribed by more than 8.5 times - Reuters

UPDATE 1-Kuwait bourse share sale oversubscribed by more than 8.5 times - Reuters:

The Kuwait Capital Market Authority (CMA) said on Monday the sale of its stake in the local bourse to Kuwaiti citizens was more than 8.5 times oversubscribed, in the last stage of the company’s privatisation process.

“The CMA has now completed the privatisation of Boursa Kuwait,” it said. “The 50% public offering was preceded by the successful sale of 44% of the company to strategic investors in February 2019.”

The remaining 6% is owned by Kuwait’s Public Institution for Social Security, it said.

#SaudiArabia wants OPEC+ to deepen oil cuts due to Aramco IPO - Reuters

Saudi Arabia wants OPEC+ to deepen oil cuts due to Aramco IPO - Reuters:

OPEC and its allies plan to deepen oil cuts and have the deal in place so it runs at least until June 2020 as Saudi Arabia wants to deliver a positive surprise to the market before the listing of Saudi Aramco, two sources familiar with the talks said.

The deal being discussed by the Organization of the Petroleum Exporting Countries and other producers, known as OPEC+, would add at least 400,000 barrels per day (bpd) to existing cuts of 1.2 million bpd or 1.2% of global supply.

The current deal runs to March.

“They (the Saudis) want to surprise the market,” one of the sources said.

Oil futures edge up on talk of further OPEC+ supply curbs - Reuters

Oil futures edge up on talk of further OPEC+ supply curbs - Reuters:

Oil futures gained about 1% on Monday on hints the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

Brent futures for the most active contract for February delivery rose 43 cents, or 0.7%, to $60.92 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 79 cents, or 1.4%, to $55.96.

Oil eased off session highs earlier in the day as Wall Street dropped after data showed U.S. factory activity contracted in November and after U.S. President Donald Trump unexpectedly announced plans to reimpose tariffs on steel and aluminum from Argentina and Brazil.

MIDEAST STOCKS-Major Gulf markets fall as Aramco IPO oversubscribed - Reuters

MIDEAST STOCKS-Major Gulf markets fall as Aramco IPO oversubscribed - Reuters:

Most Middle Eastern markets dropped on
Monday as investors appeared to have offloaded their positions
to invest back into Saudi Aramco's initial public
offering (IPO) which was oversubscribed by more than twice the
number of shares on offer. 

Institutional investors have already put in 144.1 billion
riyals ($38.4 billion) worth of bids for Aramco's planned IPO,
which is more than double the capital it seeks to raise from
institutions, financial advisers for the IPO said on Monday.

Institutional investors still have until Dec. 4 to place
orders.

OPEC and its allies plan to deepen oil cuts and have the
deal in place so it runs at least until June 2020 as Saudi
Arabia wants to deliver a positive surprise to the market before
the listing of Saudi Aramco, two sources familiar with the talks
said.

Five things to watch at this week’s Opec meeting | Financial Times

Five things to watch at this week’s Opec meeting | Financial Times:

Oil producers from the Opec cartel will meet in Vienna on Thursday and will be joined by ministers from Russia and other exporters on Friday. Their task: to hammer out an agreement on how they will manage their oil production next year. Although there has been concern about global demand weakness and still-robust production from the US, the current Brent crude price just above $60 a barrel is seen by some producers as a comfortable level. 

Here are five things that oil market watchers will be focused on:

Russia Opens Giant Gas Link to China as Putin Pivots East - Bloomberg

Russia Opens Giant Gas Link to China as Putin Pivots East - Bloomberg:

The world’s biggest natural gas exporter and one of the globe’s top consumers of the fuel cemented their energy cooperation on Monday with the launch of Russia’s giant Power of Siberia pipeline to northern China.

Gas started flowing toward China through the link, which has become a symbol of President Vladimir Putin’s pivot to the fast-growing economies of Asia as relations deteriorate with the West. The pipeline, which runs from Russia’s enormous reserves in eastern Siberia and will eventually be 3,000 kilometers (1,900 miles) long, will help satisfy China’s vast and expanding energy needs. 

“The tap is open, gas is being supplied to the gas transportation system” of China, Alexey Miller, chief executive officer of Gazprom PJSC, told Putin via videolink from the compression station near the Chinese border.

OPEC+ Gambles That U.S. Shale’s Golden Age Is Over - Bloomberg

OPEC+ Gambles That U.S. Shale’s Golden Age Is Over - Bloomberg:

For years, OPEC ignored the rise of the U.S. shale industry and came to regret its mistake. Now, the group is making another bold gamble on America’s oil revolution: that its golden age is over.

When the Organization of Petroleum Exporting Countries meets this week, ministers will discuss whether to extend their current output target, rather than reduce it, according to people familiar with the internal debate. The reason? They believe relentless U.S. oil production growth will slow rapidly next year.

OPEC isn’t alone. Across the industry, oil traders and executives believe U.S. production will grow less in 2020 than this year, and at a significantly slower rate than in 2018. On paper, the cartel has the oil market under control.

Taken to Brink by Trump, Gulf States Are Backpedaling on Iran - Bloomberg

Taken to Brink by Trump, Gulf States Are Backpedaling on Iran - Bloomberg:

An expanded soccer tournament, a direct flight, clandestine meetings and a pledge to release prisoners of war; diplomacy is breaking out as Gulf Arab nations back away from a Donald Trump-inspired confrontation with Iran. And the signs are everywhere.

Last week, Saudi Arabia, the United Arab Emirates and Bahrain played their first games of the 2019 Arabian Gulf Cup in Qatar after a last-minute decision to take part -- an apparent breakthrough in a 30-month feud that saw them halt trade and flights over Qatar’s links with Iran and support for Islamist groups.

Meanwhile, the Saudi-led coalition that’s fought Iranian-backed Houthi rebels in Yemen since 2015 began releasing jailed Houthis, as efforts to end the conflict gather momentum. Oman is quietly hosting high-level meetings, according to people familiar with the matter, and even Iranian President Hassan Rouhani has hinted at direct channels with the U.A.E.

#Saudi Aramco IPO secures orders worth $38 billion from institutions - Reuters

Saudi Aramco IPO secures orders worth $38 billion from institutions - Reuters:

Saudi Aramco has received orders worth 144.1 billion riyals ($38.4 billion) for the institutional tranche of its planned initial public offering (IPO), its financial advisers said in a joint statement on Monday.

The institutional bookbuilding began on Nov. 17 and investors have until Dec. 4 to place orders. Aramco plans to sell 1.5% of its shares, in a deal which could raise up to $25.6 billion.

The Saudi oil giant has received subscription orders from institutional buyers for around 4.6 billion of shares so far, Samba Capital, NCB Capital and HSBC Saudi Arabia said.

#Qatar Airways considers buying Lufthansa stake - report - Reuters

Qatar Airways considers buying Lufthansa stake - report - Reuters:

Qatar Airways is considering taking a stake in Germany’s Lufthansa, its chief executive Akbar al-Baker was quoted as saying by German news agency dpa.

“If there is an opportunity to invest in Lufthansa, we would like to do it,” Akbar Al-Baker told dpa in Doha on Sunday on the sidelines of a visit of the premier of regional state Lower Saxony, Stephan Weil, to Qatar.

Initially, Qatar Airways would also look into a partnership with Lufthansa, Al-Baker was quoted as saying.

#Saudi exchange introduces cap for Tadawul All Share Index - Reuters

Saudi exchange introduces cap for Tadawul All Share Index - Reuters:

Saudi Arabia’s stock exchange Tadawul said on Monday it has introduced a cap for the equity index with a 15% threshold to reduce dominance of larger companies.

The measure comes ahead of the expected listing of state-owned oil giant Saudi Aramco on the Saudi exchange.

“Any constituent whose index weight reaches or exceeds the threshold will be capped in accordance with the set limit,” Tadawul said in a statement.

Oil jumps above $61 on talk of further OPEC+ supply curbs - Reuters

Oil jumps above $61 on talk of further OPEC+ supply curbs - Reuters:

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day, two sources said.

Brent crude, the global benchmark, rose $1.20 to $61.69 a barrel by 0825 GMT. U.S. West Texas Intermediate (WTI) crude added $1.05 to $56.22.

The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd that started in January expires at the end of March 2020.

MIDEAST STOCKS- #Saudi falls as banking shares slip; #UAE markets closed for holiday - Reuters

MIDEAST STOCKS-Saudi falls as banking shares slip; UAE markets closed for holiday - Reuters:

The Saudi Arabian stock market snapped a two-day rally to trade lower on Monday, pulled down by losses in banking shares, while Qatar was largely unchanged.

Dubai and Abu Dhabi stock markets are closed for three-day public holiday and will resume trading on Dec. 4.

Saudi Arabia’s benchmark index fell 0.5%, with Al Rajhi Bank shedding 0.8% and National Commercial Bank decreasing 0.7%.

The kingdom’s stock exchange Tadawul has introduced the index cap of 15%, a move designed to address concerns that oil giant Saudi Aramco will outweigh other listings socking up market liquidity when it lists on the exchange.