Oil rises on supply cut pledges and slow return of Gulf field - Reuters:
Oil prices rose on Tuesday in thin pre-Christmas trading after Russia said cooperation with OPEC on supply cuts would continue and amid optimism that the United States and China could finalize a trade agreement.
Brent crude LCOc1 was up 57 cents, or 0.86%, at $66.96 a barrel by 10:22 a.m. EST (1522 GMT) U.S. West Texas Intermediate CLc1 was 56 cents higher at $60.87 a barrel.
OPEC and Russia will continue their cooperation as long as it is “effective and brings results,” Russian energy minister Alexander Novak said in an interview on Monday.
OPEC and allies agreed in November to extend and deepen output curbs in place since 2017. Under the reduced output, as much as 2.1 million barrels per day (bpd) could be taken off the market, or about 2% of global demand.
Tuesday 24 December 2019
Saudis, #Kuwait Agree to Resume Oil Output at Shared Fields - Bloomberg
Saudis, Kuwait Agree to Resume Oil Output at Shared Fields - Bloomberg:
Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output.
Their agreement allows for “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. The oil fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Chevron Corp., which operates the area’s Wafra field together with Kuwait Gulf Oil Co., expects full production there to be restored within 12 months, it said Tuesday in a statement. Wafra has been shut down since May 2015.
A resumption on that timetable would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. Even so, the agreement to re-start the fields could weigh on market sentiment amid concerns about faltering growth in world demand and rising supply from the U.S. and other producers.
Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output.
Their agreement allows for “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. The oil fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Chevron Corp., which operates the area’s Wafra field together with Kuwait Gulf Oil Co., expects full production there to be restored within 12 months, it said Tuesday in a statement. Wafra has been shut down since May 2015.
A resumption on that timetable would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. Even so, the agreement to re-start the fields could weigh on market sentiment amid concerns about faltering growth in world demand and rising supply from the U.S. and other producers.
Goldman may stabilize #Saudi Aramco shares following IPO - Reuters
Goldman may stabilize Saudi Aramco shares following IPO - Reuters:
Saudi Aramco (2222.SE) said that Goldman Sachs may stabilize its shares after a record initial public offering earlier this month.
Stabilization agents support the share price by purchasing additional shares on the market.
The stabilization period will end on Jan. 9, but so far no transactions have been executed, it said in a statement.
Aramco shares ended nearly 0.6% lower at 35.40 riyals ($9.44), above its IPO price of 32 riyals per share, valuing the oil giant at about $1.9 trillion.
The shares have eased after hitting an intraday high of 38.7 riyals on Dec 12.
Saudi Aramco (2222.SE) said that Goldman Sachs may stabilize its shares after a record initial public offering earlier this month.
Stabilization agents support the share price by purchasing additional shares on the market.
The stabilization period will end on Jan. 9, but so far no transactions have been executed, it said in a statement.
Aramco shares ended nearly 0.6% lower at 35.40 riyals ($9.44), above its IPO price of 32 riyals per share, valuing the oil giant at about $1.9 trillion.
The shares have eased after hitting an intraday high of 38.7 riyals on Dec 12.
Emirates' long-serving boss to hand over the controls next year - Reuters
Emirates' long-serving boss to hand over the controls next year - Reuters:
Tim Clark will retire as the president of Emirates Airline [EMIRA.UL] at the end of June 2020 after more than three decades at the state-controlled business that has helped to transform Dubai into one of the world’s major travel crossroads.
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum said on Tuesday in an internal memo to staff, reviewed by Reuters, that Clark would stay on as an adviser to the company.
“Through wars, economic recessions, disasters natural or manmade, and various industry upheavals, Tim has ably steered and grown Emirates to its standing today as the world’s largest international airline, and an eminent player in the global airline industry,” Sheikh Ahmed said in the memo.
An Emirates spokeswoman confirmed the retirement to Reuters.
Tim Clark will retire as the president of Emirates Airline [EMIRA.UL] at the end of June 2020 after more than three decades at the state-controlled business that has helped to transform Dubai into one of the world’s major travel crossroads.
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| FILE PHOTO: Emirates Airline President Tim Clark speaks at the Arabian Travel Market in Dubai, UAE April 29, 2019. REUTERS/Satish Kumar |
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum said on Tuesday in an internal memo to staff, reviewed by Reuters, that Clark would stay on as an adviser to the company.
“Through wars, economic recessions, disasters natural or manmade, and various industry upheavals, Tim has ably steered and grown Emirates to its standing today as the world’s largest international airline, and an eminent player in the global airline industry,” Sheikh Ahmed said in the memo.
An Emirates spokeswoman confirmed the retirement to Reuters.
MIDEAST STOCKS-Gulf shares fall; Aramco closes lower - Reuters
MIDEAST STOCKS-Gulf shares fall; Aramco closes lower - Reuters:
Gulf stocks mostly fell on Tuesday, with
financials pulling down Qatar, while Saudi Arabia's stock index
traded flat as energy and property shares moved sideways.
The Qatari index declined 0.8% with all its financial
stocks retreating. Qatar National Bank, the Gulf's
largest lender, dropped 1.6% and Qatar Islamic Bank
eased 1.2%.
Saudi Arabia's benchmark index was little changed.
Samba Financial Group shed 2.2% and Saudi Aramco
ended 0.6% lower. Dar Al Arkan gained 1.5%
and Makkah Construction was up 1.7%.
Saudi Industrial Services rose 2.8% after its Red
Sea Gateway Terminal unit signed a new 30-year concession with
the Saudi ports authority to develop the northern part of Jeddah
port.
Gulf stocks mostly fell on Tuesday, with
financials pulling down Qatar, while Saudi Arabia's stock index
traded flat as energy and property shares moved sideways.
The Qatari index declined 0.8% with all its financial
stocks retreating. Qatar National Bank, the Gulf's
largest lender, dropped 1.6% and Qatar Islamic Bank
eased 1.2%.
Saudi Arabia's benchmark index was little changed.
Samba Financial Group shed 2.2% and Saudi Aramco
ended 0.6% lower. Dar Al Arkan gained 1.5%
and Makkah Construction was up 1.7%.
Saudi Industrial Services rose 2.8% after its Red
Sea Gateway Terminal unit signed a new 30-year concession with
the Saudi ports authority to develop the northern part of Jeddah
port.
Oil Holds Above $60 as U.S. Crude Stockpiles Seen Shrinking - Bloomberg
Oil Holds Above $60 as U.S. Crude Stockpiles Seen Shrinking - Bloomberg:
Oil held above $60 a barrel before U.S. government data forecast to show that crude stockpiles declined again, mitigating concerns that global markets face a renewed surplus next year.
Futures were steady for a second day in New York. American crude inventories fell by 1.7 million barrels last week, according to a Bloomberg survey before Energy Information Administration data on Friday and industry figures due later Tuesday. Iraq, one of the biggest over-producers in the OPEC deal, pared output this month amid growing pressure to implement its share of cutbacks, according to tanker-tracker Petro-Logistics SA.
Oil is on course for the best month since January after the U.S. and China made a breakthrough on an initial trade deal and the Organization of Petroleum Exporting Countries and its partners agreed to deepen output cuts. American crude inventories are coming off their highs even as the nation pumps near-record levels and shale explorers revive drilling.
“The latest OPEC+ agreement appears to have boosted sentiment,” analysts at consultants JBC Energy GmbH in Vienna said in a report.
Oil held above $60 a barrel before U.S. government data forecast to show that crude stockpiles declined again, mitigating concerns that global markets face a renewed surplus next year.
Futures were steady for a second day in New York. American crude inventories fell by 1.7 million barrels last week, according to a Bloomberg survey before Energy Information Administration data on Friday and industry figures due later Tuesday. Iraq, one of the biggest over-producers in the OPEC deal, pared output this month amid growing pressure to implement its share of cutbacks, according to tanker-tracker Petro-Logistics SA.
Oil is on course for the best month since January after the U.S. and China made a breakthrough on an initial trade deal and the Organization of Petroleum Exporting Countries and its partners agreed to deepen output cuts. American crude inventories are coming off their highs even as the nation pumps near-record levels and shale explorers revive drilling.
“The latest OPEC+ agreement appears to have boosted sentiment,” analysts at consultants JBC Energy GmbH in Vienna said in a report.
#Kuwait and #Saudi sign agreements on dividing Neutral Zone containing joint oilfields - Reuters
Kuwait and Saudi sign agreements on dividing Neutral Zone containing joint oilfields - Reuters:
Kuwait and Saudi Arabia signed on Tuesday an agreement and a memorandum of understanding on dividing the Neutral Zone, which contains jointly-operated oilfields, between the two countries, Kuwait’s state-run news agency (KUNA) said.
There were no additional details on the agreement, which resolves a more than five-year dispute between the two countries and leads to the resumption of oil output from the jointly-operated fields.
Kuwait and Saudi Arabia signed on Tuesday an agreement and a memorandum of understanding on dividing the Neutral Zone, which contains jointly-operated oilfields, between the two countries, Kuwait’s state-run news agency (KUNA) said.
There were no additional details on the agreement, which resolves a more than five-year dispute between the two countries and leads to the resumption of oil output from the jointly-operated fields.
How Expo 2020 #Dubai is forecast to impact the #UAE economy next year - Arabianbusiness
How Expo 2020 Dubai is forecast to impact the UAE economy next year - Arabianbusiness:
The outlook for the UAE’s economy remains promising, with economic growth expected to accelerate from an estimated 1.9 percent in 2019 to around 2.2 percent in 2020, according to new research.
ICAEW, the accountancy and finance body, said that Expo 2020 Dubai is expected to boost UAE's non-oil GDP growth to about 2.8 percent.
Its Economic Update: Middle East Q4 2019 reported, produced in partnership with Oxford Economics, said Expo 2020 Dubai, which is anticipated to attract 25 million visitors, is forecast to contribute up to 1.5 percent of the UAE’s overall GDP in 2020.
The report added that relevant authorities have stepped in to support non-oil activities in the country. Both Abu Dhabi and Dubai are implementing fiscal packages, while the recent interest rate cut by the US Federal Reserve, which the UAE Central Bank followed given the dollar peg, should support private sector credit growth.
The outlook for the UAE’s economy remains promising, with economic growth expected to accelerate from an estimated 1.9 percent in 2019 to around 2.2 percent in 2020, according to new research.
ICAEW, the accountancy and finance body, said that Expo 2020 Dubai is expected to boost UAE's non-oil GDP growth to about 2.8 percent.
Its Economic Update: Middle East Q4 2019 reported, produced in partnership with Oxford Economics, said Expo 2020 Dubai, which is anticipated to attract 25 million visitors, is forecast to contribute up to 1.5 percent of the UAE’s overall GDP in 2020.
The report added that relevant authorities have stepped in to support non-oil activities in the country. Both Abu Dhabi and Dubai are implementing fiscal packages, while the recent interest rate cut by the US Federal Reserve, which the UAE Central Bank followed given the dollar peg, should support private sector credit growth.
#Qatar Petroleum to start pricing its crude grades on forward basis in February - Reuters
Qatar Petroleum to start pricing its crude grades on forward basis in February - Reuters:
Qatar Petroleum will start pricing its crude oil grades of Qatar marine and Qatar land on a prospective pricing basis in February 2020, the company said on Tuesday, confirming an earlier report by Reuters.
QP currently prices the two grades on a retroactive basis but will move this to forward pricing, a more popular approach used by other Middle East crude exporters such as Saudi Arabia that better matches the trading cycle of crude.
The new step will improve the overall competitiveness of Qatar Marine and Qatar Land, and allow existing and new customers to better compare the Qatari crude grades with other grades, QP said.
By changing the pricing methodology, QP is following the UAE’s Abu Dhabi National Oil Co (ADNOC), which in November launched a new pricing mechanism for its flagship Murban crude.
Qatar Petroleum will start pricing its crude oil grades of Qatar marine and Qatar land on a prospective pricing basis in February 2020, the company said on Tuesday, confirming an earlier report by Reuters.
QP currently prices the two grades on a retroactive basis but will move this to forward pricing, a more popular approach used by other Middle East crude exporters such as Saudi Arabia that better matches the trading cycle of crude.
The new step will improve the overall competitiveness of Qatar Marine and Qatar Land, and allow existing and new customers to better compare the Qatari crude grades with other grades, QP said.
By changing the pricing methodology, QP is following the UAE’s Abu Dhabi National Oil Co (ADNOC), which in November launched a new pricing mechanism for its flagship Murban crude.
Oil prices rise in quiet Christmas Eve trade amid supply cuts - Reuters
Oil prices rise in quiet Christmas Eve trade amid supply cuts - Reuters:
Oil prices rose on Tuesday in thin pre-Christmas trading after Russia’s energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in U.S. crude inventories.
Brent crude LCOc1 was up 12 cents, or 0.2%, at $66.51 a barrel by 0702 GMT. U.S. West Texas Intermediate CLc1 was 7 cents higher at $60.59 a barrel.
OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is “effective and brings results,” Russian energy minister Alexander Novak said in an interview on Monday.
Cooperation with the Organization of the Petroleum Exporting Countries (OPEC) would continue “until the market requires it,” Novak added.
Oil prices rose on Tuesday in thin pre-Christmas trading after Russia’s energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in U.S. crude inventories.
Brent crude LCOc1 was up 12 cents, or 0.2%, at $66.51 a barrel by 0702 GMT. U.S. West Texas Intermediate CLc1 was 7 cents higher at $60.59 a barrel.
OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is “effective and brings results,” Russian energy minister Alexander Novak said in an interview on Monday.
Cooperation with the Organization of the Petroleum Exporting Countries (OPEC) would continue “until the market requires it,” Novak added.
MIDEAST STOCKS-Major Gulf markets subdued, Aramco falls again - Reuters
MIDEAST STOCKS-Major Gulf markets subdued, Aramco falls again - Reuters:
All major Gulf markets opened in the red on Tuesday, dampened mainly by financials, while petrochemical shares weighed on Saudi Arabia.
The Saudi benchmark index was down 0.2% as Samba Financial Group lost 2.2%, while Saudi Arabian Mining Co dipped 1.4%.
Elsewhere, the kingdom’s oil giant Saudi Aramco dropped 0.3% to 35.5 riyals ($9.46). The state-owned firm took a breather in the previous session to snap four straight days of losses.
However Saudi Industrial Services Company rose 2.3% after its unit Red Sea Gateway Terminal signed a new 30-year concession with the Saudi ports authority to develop the northern part of Jeddah port.
All major Gulf markets opened in the red on Tuesday, dampened mainly by financials, while petrochemical shares weighed on Saudi Arabia.
The Saudi benchmark index was down 0.2% as Samba Financial Group lost 2.2%, while Saudi Arabian Mining Co dipped 1.4%.
Elsewhere, the kingdom’s oil giant Saudi Aramco dropped 0.3% to 35.5 riyals ($9.46). The state-owned firm took a breather in the previous session to snap four straight days of losses.
However Saudi Industrial Services Company rose 2.3% after its unit Red Sea Gateway Terminal signed a new 30-year concession with the Saudi ports authority to develop the northern part of Jeddah port.