U.S. Rig Count Drops As Oil Price Slide Accelerates | OilPrice.com:
After another week of faltering oil prices as the coronavirus outbreak continues to spook the market, Baker Hughes reported that the number of oil and gas rigs in the US decreased this week, to 790—a decrease of 4 rigs. The total oil and gas rig count is now 265 down from this time last year.
The number of oil rigs decreased for the week, by 1 rigs, according to Baker Hughes data, bringing the total to 675—a 172-rig loss year over year.
The total number of active gas rigs in the United States fell by 3 according to the report, to 112. This compares to 198 a year ago.
Meanwhile, oil production has hovered at 13 million bpd for three weeks now, according to data provided by the Energy Information Administration—a high for the United States.
By basin, oil rigs have slumped the most over the last 52 weeks in the Mississippian and Granite Wash basins (-80%), followed by Cana Woodford (-69%). By sheer numbers, the Permian basin saw the most declines at 75 over that same period, but that figure represents only a 16% decline—making the Permian one of the least affected basins over the last year.
Friday, 31 January 2020
Oil Heads for Biggest Monthly Loss Since May With Focus on Virus - Bloomberg
Oil Heads for Biggest Monthly Loss Since May With Focus on Virus - Bloomberg:
Oil headed for its biggest monthly drop since May as Asia’s coronavirus spread, stoking concerns that demand for transportation fuels will shrink.
Futures were little changed in New York on Friday, after sliding to a five-month low on Thursday, as the World Health Organization declared the outbreak a global health emergency. Prices have slumped 14% in January as the disease locks down entire cities in China, the largest importer, and shows no sign of abating.
The rout has alarmed Saudi Arabia, prompting the biggest member of the OPEC cartel to push for an emergency meeting that could deepen production cuts already being made by the group. However, the overture hasn’t yet secured support from Russia, the most important player in a broader coalition known as OPEC+.
Oil headed for its biggest monthly drop since May as Asia’s coronavirus spread, stoking concerns that demand for transportation fuels will shrink.
Futures were little changed in New York on Friday, after sliding to a five-month low on Thursday, as the World Health Organization declared the outbreak a global health emergency. Prices have slumped 14% in January as the disease locks down entire cities in China, the largest importer, and shows no sign of abating.
The rout has alarmed Saudi Arabia, prompting the biggest member of the OPEC cartel to push for an emergency meeting that could deepen production cuts already being made by the group. However, the overture hasn’t yet secured support from Russia, the most important player in a broader coalition known as OPEC+.
Oil rises as WHO declares emergency but opposes travel ban - Reuters
Oil rises as WHO declares emergency but opposes travel ban - Reuters:
Oil prices rose on Friday but were still set for a fourth consecutive weekly loss, as markets attempted to assess the economic damage of the new coronavirus that has spread from China to around 20 countries, killing more than 200 people.
Brent crude LCOc1 was up 20 cents at $58.49 a barrel by 1208 GMT but still down 3.6% on the week.
U.S. West Texas Intermediate (WTI) CLc1 rose by 24 cents to $52.38 a barrel, but remained down 3.3% on the week.
Both benchmarks rose by more than $1 earlier in the session.
Oil prices rose on Friday but were still set for a fourth consecutive weekly loss, as markets attempted to assess the economic damage of the new coronavirus that has spread from China to around 20 countries, killing more than 200 people.
Brent crude LCOc1 was up 20 cents at $58.49 a barrel by 1208 GMT but still down 3.6% on the week.
U.S. West Texas Intermediate (WTI) CLc1 rose by 24 cents to $52.38 a barrel, but remained down 3.3% on the week.
Both benchmarks rose by more than $1 earlier in the session.
Portable LNG Plants Arrive at Natural Gas Wells to Curb Flaring - Bloomberg
Portable LNG Plants Arrive at Natural Gas Wells to Curb Flaring - Bloomberg:
Perched on the back of a semi-trailer is the latest weapon in tackling the problem of wasted natural gas that oil producers often vent into the air or even burn off at the wellhead.
Cryobox takes fuel directly from wells and turns it into liquefied natural gas, which is easy to store and transport.
For small gas fields uneconomical or too distant to connect to a traditional pipeline network, this small-scale LNG plant is a solution to absorb fuel that would otherwise be wasted. That also makes it a way to prevent greenhouse gas emissions that contribute to global warming and solve a growing problem for the industry.
Wherever oil is produced, gas often follows. If there aren’t enough customers to take it away, the gas is often treated as a waste product and either burned off at the wellhead or allowed to escape into the air—flared or vented in the jargon of the industry.
Perched on the back of a semi-trailer is the latest weapon in tackling the problem of wasted natural gas that oil producers often vent into the air or even burn off at the wellhead.
Cryobox takes fuel directly from wells and turns it into liquefied natural gas, which is easy to store and transport.
For small gas fields uneconomical or too distant to connect to a traditional pipeline network, this small-scale LNG plant is a solution to absorb fuel that would otherwise be wasted. That also makes it a way to prevent greenhouse gas emissions that contribute to global warming and solve a growing problem for the industry.
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Edge LNG’s Cryobox ready for shipment to a work site.
Source: Edge LNG
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Wherever oil is produced, gas often follows. If there aren’t enough customers to take it away, the gas is often treated as a waste product and either burned off at the wellhead or allowed to escape into the air—flared or vented in the jargon of the industry.
Economist Who Said SARS Cost $40 Billion Sees Bigger Hit Now - Bloomberg
Economist Who Said SARS Cost $40 Billion Sees Bigger Hit Now - Bloomberg:
The global cost of the coronavirus could be three or four times that of the 2003 SARS outbreak that sapped the world’s economy by $40 billion, according to the economist who calculated that figure.
The sheer growth in the Chinese economy over the last 17 years means the global health emergency triggered by the coronavirus outbreak has far greater potential to gouge global growth, according to Warwick McKibbin, professor of economics at the Australian National University in Canberra.
“It’s just a mathematical thing,” McKibbin said in a phone interview. “Most of the GDP loss that we saw in the SARS model, and in reality, was China slowing down. And so, with China much bigger, you’d expect the billions would be much bigger.”
While difficult to pinpoint a precise cost as the crisis is still unfolding, the impact will be experienced mostly through changes in “human psychology,” he said. “Panic is what seems to be the biggest drain on the economy, rather than deaths.”
The global cost of the coronavirus could be three or four times that of the 2003 SARS outbreak that sapped the world’s economy by $40 billion, according to the economist who calculated that figure.
The sheer growth in the Chinese economy over the last 17 years means the global health emergency triggered by the coronavirus outbreak has far greater potential to gouge global growth, according to Warwick McKibbin, professor of economics at the Australian National University in Canberra.
“It’s just a mathematical thing,” McKibbin said in a phone interview. “Most of the GDP loss that we saw in the SARS model, and in reality, was China slowing down. And so, with China much bigger, you’d expect the billions would be much bigger.”
While difficult to pinpoint a precise cost as the crisis is still unfolding, the impact will be experienced mostly through changes in “human psychology,” he said. “Panic is what seems to be the biggest drain on the economy, rather than deaths.”
State Bank of India Profit Rises on Bad-Loan Provision Clawback - Bloomberg
State Bank of India Profit Rises on Bad-Loan Provision Clawback - Bloomberg:
State Bank of India posted a rise in quarterly profit as the country’s largest lender wrote back provisions on its bad loans.
Net income rose to 55.8 billion rupees ($782 million) in the three months ended December from 39.6 billion rupees a year earlier, broadly in line with the 58.7 billion rupee average of analysts’ estimates compiled by Bloomberg.
SBI has been helped by the resolution of some large bad loan accounts, such as Essar Steel India Ltd., allowing the bank to write back provisions. The lender contributes about a quarter of total Indian bank loans, and its success in reining soured credit could be offset by the nation’s slowing economy.
India’s insolvency regime was bolstered last year by a Supreme Court ruling that paved the way for ArcelorMittal’s $5.9 billion takeover of Essar Steel and empowered banks to set the terms of the distribution of sale proceeds among Essar’s creditors.
State Bank of India posted a rise in quarterly profit as the country’s largest lender wrote back provisions on its bad loans.
Net income rose to 55.8 billion rupees ($782 million) in the three months ended December from 39.6 billion rupees a year earlier, broadly in line with the 58.7 billion rupee average of analysts’ estimates compiled by Bloomberg.
SBI has been helped by the resolution of some large bad loan accounts, such as Essar Steel India Ltd., allowing the bank to write back provisions. The lender contributes about a quarter of total Indian bank loans, and its success in reining soured credit could be offset by the nation’s slowing economy.
India’s insolvency regime was bolstered last year by a Supreme Court ruling that paved the way for ArcelorMittal’s $5.9 billion takeover of Essar Steel and empowered banks to set the terms of the distribution of sale proceeds among Essar’s creditors.
#Saudi SAMA launches licenses for non-bank financial institutions -statement | ZAWYA MENA Edition
Saudi SAMA launches licenses for non-bank financial institutions -statement | ZAWYA MENA Edition:
The Saudi Arabian Monetary Authority (SAMA) issued licenses for non-bank financial institutions in the Kingdom for the first time on Thursday, licensing an electronic wallet company and a payment services company.
The move to license financial technology companies was aimed at opening financial services to non-banking actors and supporting development of the national economy, SAMA said in a statement.
The companies licensed were Saudi Digital Payments Company (STCPay) as an Electronic Wallet Company, and GEIDEA Technology Company as a payment services company, SAMA said.
The Saudi Arabian Monetary Authority (SAMA) issued licenses for non-bank financial institutions in the Kingdom for the first time on Thursday, licensing an electronic wallet company and a payment services company.
The move to license financial technology companies was aimed at opening financial services to non-banking actors and supporting development of the national economy, SAMA said in a statement.
The companies licensed were Saudi Digital Payments Company (STCPay) as an Electronic Wallet Company, and GEIDEA Technology Company as a payment services company, SAMA said.
Why the GCC's electricity pricing policy is 'unsustainable' - Arabianbusiness
Why the GCC's electricity pricing policy is 'unsustainable' - Arabianbusiness:
The current electricity pricing policy in the Gulf Cooperation Council (GCC) countries is unsustainable as decades of subsidies have led to high consumption rates and wasted power, costing billions of dollars, according to a new study.
The report by Strategy& Middle East, part of the PwC network, said the region needs reform to achieve its ambitious industrialisation agenda and have an economically viable electricity sector.
It highlighted an "erroneous perception" among large industrial companies that pricing reforms will put them at a competitive disadvantage thus creating a large resistance to them.
The research estimates that the electricity subsidies have cost GCC countries more than $120 billion over the past 20 years, and leaving these policies in place until 2030 would cost an additional $150 billion as demand increases.
The current electricity pricing policy in the Gulf Cooperation Council (GCC) countries is unsustainable as decades of subsidies have led to high consumption rates and wasted power, costing billions of dollars, according to a new study.
The report by Strategy& Middle East, part of the PwC network, said the region needs reform to achieve its ambitious industrialisation agenda and have an economically viable electricity sector.
It highlighted an "erroneous perception" among large industrial companies that pricing reforms will put them at a competitive disadvantage thus creating a large resistance to them.
The research estimates that the electricity subsidies have cost GCC countries more than $120 billion over the past 20 years, and leaving these policies in place until 2030 would cost an additional $150 billion as demand increases.
Oil climbs as WHO declares emergency, says it 'opposes' travel, trade restrictions - Reuters
Oil climbs as WHO declares emergency, says it 'opposes' travel, trade restrictions - Reuters:
Oil prices rose on Friday following sharp losses this week, as the World Health Organization (WHO) came out against travel and trade restrictions in declaring a global emergency over the spread of a coronavirus that originated in China last year.
Oil prices fell nearly 4% through Thursday this week - hitting three-months lows - before rebounding on Friday, with investors and traders worried over how spread of the virus would impact demand for oil and its products.
“WHO’s decision ... to oppose restricting travel and trades against China boosted market confidence, even though the organization declared a global health emergency,” said Margaret Yang, market analyst at CMC Markets.
Brent crude futures LCOc1 were 68 cents higher at $58.97 a barrel by 0738 GMT, after falling 2.5% in the previous session. Brent is still down 2.8% for the week.
U.S. West Texas Intermediate (WTI) futures CLc1 were up by 70 cents to $52.84 a barrel. The contract fell 2.2% on Thursday and is now 2.5% lower for the week.
Oil prices rose on Friday following sharp losses this week, as the World Health Organization (WHO) came out against travel and trade restrictions in declaring a global emergency over the spread of a coronavirus that originated in China last year.
Oil prices fell nearly 4% through Thursday this week - hitting three-months lows - before rebounding on Friday, with investors and traders worried over how spread of the virus would impact demand for oil and its products.
“WHO’s decision ... to oppose restricting travel and trades against China boosted market confidence, even though the organization declared a global health emergency,” said Margaret Yang, market analyst at CMC Markets.
Brent crude futures LCOc1 were 68 cents higher at $58.97 a barrel by 0738 GMT, after falling 2.5% in the previous session. Brent is still down 2.8% for the week.
U.S. West Texas Intermediate (WTI) futures CLc1 were up by 70 cents to $52.84 a barrel. The contract fell 2.2% on Thursday and is now 2.5% lower for the week.
Thursday, 30 January 2020
Oil falls to new three-month lows as virus fears grow, OPEC mulls meeting - Reuters
Oil falls to new three-month lows as virus fears grow, OPEC mulls meeting - Reuters:
Oil prices fell more than 2% on Thursday to the lowest in three months on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting.
Brent crude LCOc1 was down $1.52, or 2.5%, to settle at $58.29 a barrel. The global benchmark earlier dropped to $57.71, its lowest since Oct. 8.
U.S. crude CLc1 fell $1.19, or 2.2%, to settle at $52.14 a barrel, after hitting a session low at $51.66 a barrel, its weakest since Oct. 10.
Prices have steadied in recent days at three-month lows as investors tried to assess what economic damage the virus might inflict and its impact on demand for crude oil and its products.
Oil prices fell more than 2% on Thursday to the lowest in three months on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting.
Brent crude LCOc1 was down $1.52, or 2.5%, to settle at $58.29 a barrel. The global benchmark earlier dropped to $57.71, its lowest since Oct. 8.
U.S. crude CLc1 fell $1.19, or 2.2%, to settle at $52.14 a barrel, after hitting a session low at $51.66 a barrel, its weakest since Oct. 10.
Prices have steadied in recent days at three-month lows as investors tried to assess what economic damage the virus might inflict and its impact on demand for crude oil and its products.
#Lebanon News: Lebanese Bond Meltdown Eases Even as Russia Denies Aid Report - Bloomberg
Lebanon News:
Lebanon’s bonds pared this week’s tumble after a Beirut-based newspaper reported that Russia is considering financial support for the Arab nation -- despite the Finance Ministry in Moscow later denying it was in talks about aiding the government.
Russia plans to help Lebanon cope with its economic crisis and is considering a $1 billion deposit with its central bank, Al-Akhbar reported. If the money did come through, it might help Lebanon repay a $1.2 billion bond maturing on March 9.
It would “improve the chances of the bond due in six weeks being repaid,” said Richard Segal, a senior analyst at Manulife Investment Management in London. “I’d place these odds at 50:50.”
Lebanon has asked several countries for loans to prevent shortages of imported food and medicine.
Lebanon’s bonds pared this week’s tumble after a Beirut-based newspaper reported that Russia is considering financial support for the Arab nation -- despite the Finance Ministry in Moscow later denying it was in talks about aiding the government.
Russia plans to help Lebanon cope with its economic crisis and is considering a $1 billion deposit with its central bank, Al-Akhbar reported. If the money did come through, it might help Lebanon repay a $1.2 billion bond maturing on March 9.
It would “improve the chances of the bond due in six weeks being repaid,” said Richard Segal, a senior analyst at Manulife Investment Management in London. “I’d place these odds at 50:50.”
Lebanon has asked several countries for loans to prevent shortages of imported food and medicine.
Oil Prices Not Expected to Rise to Previous Levels, Says Christof Ruehl - Bloomberg
Oil Prices Not Expected to Rise to Previous Levels, Says Christof Ruehl - Bloomberg:
Christof Ruehl, a senior fellow at the Harvard Kennedy School and at the Center for Global Energy Policy at Columbia University discussed oil price volatility and Saudi Arabia's growth prospects. He spoke with Manus Cranny and Yousef Gamal El Din on Jan. 21 on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Christof Ruehl, a senior fellow at the Harvard Kennedy School and at the Center for Global Energy Policy at Columbia University discussed oil price volatility and Saudi Arabia's growth prospects. He spoke with Manus Cranny and Yousef Gamal El Din on Jan. 21 on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi Push for Early OPEC+ Meeting Hits Russian Resistance - Bloomberg
Saudi Push for Early OPEC+ Meeting Hits Russian Resistance - Bloomberg:
Saudi Arabia’s push to convene an emergency OPEC+ meeting next month, bringing forward a gathering scheduled for March, ran into resistance from its key oil-market ally, Russia.
The kingdom, the biggest member of the Organization of Petroleum Exporting Countries, has consulted with fellow producers on expediting the meeting -- currently lined up for March 5 to 6 -- amid growing alarm that Asia’s coronavirus outbreak will weaken oil demand, several delegates said.
As of Thursday evening, the process was temporarily on hold after encountering a variety of scheduling obstacles, delegates said. Whether talks resume will depend on movements in oil prices, one of the delegates said.
West Texas Intermediate crude, the U.S. benchmark, was down 2.8% at $51.86 a barrel as of 12:59 p.m. local time.
Saudi Arabia’s push to convene an emergency OPEC+ meeting next month, bringing forward a gathering scheduled for March, ran into resistance from its key oil-market ally, Russia.
The kingdom, the biggest member of the Organization of Petroleum Exporting Countries, has consulted with fellow producers on expediting the meeting -- currently lined up for March 5 to 6 -- amid growing alarm that Asia’s coronavirus outbreak will weaken oil demand, several delegates said.
As of Thursday evening, the process was temporarily on hold after encountering a variety of scheduling obstacles, delegates said. Whether talks resume will depend on movements in oil prices, one of the delegates said.
West Texas Intermediate crude, the U.S. benchmark, was down 2.8% at $51.86 a barrel as of 12:59 p.m. local time.
#SaudiArabia opens talks on possible February OPEC+ meeting after oil price slide - Reuters
Saudi Arabia opens talks on possible February OPEC+ meeting after oil price slide - Reuters:
Saudi Arabia has opened talks with OPEC and allied oil producers about moving their upcoming OPEC+ policy meeting to early February from March, four OPEC+ sources said, after a swift slide in oil prices alarmed Riyadh.
Worries over the economic impact of China’s coronavirus have rattled global markets, helping send the price of crude down to around $58 a barrel from above $65 a barrel on Jan. 20. [O/R]
No final decision over the new date of the meeting has been made, and not all OPEC members are on board yet, with Iran a possible contender to oppose the move, the sources said.
OPEC+, which includes Russia, has been reducing oil supply to support prices, agreeing in December to hold back 1.7 million barrels per day (bpd) of output until the end of March.
Saudi Arabia has opened talks with OPEC and allied oil producers about moving their upcoming OPEC+ policy meeting to early February from March, four OPEC+ sources said, after a swift slide in oil prices alarmed Riyadh.
Worries over the economic impact of China’s coronavirus have rattled global markets, helping send the price of crude down to around $58 a barrel from above $65 a barrel on Jan. 20. [O/R]
No final decision over the new date of the meeting has been made, and not all OPEC members are on board yet, with Iran a possible contender to oppose the move, the sources said.
OPEC+, which includes Russia, has been reducing oil supply to support prices, agreeing in December to hold back 1.7 million barrels per day (bpd) of output until the end of March.
UPDATE 1- #Lebanon's March 2020 bond in record rally on payment hopes - Reuters
UPDATE 1-Lebanon's March 2020 bond in record rally on payment hopes - Reuters:
Lebanon’s March 2020 bond rallied by a record amount on Thursday, signalling growing investor hopes that the $1.2 billion issue might be repaid despite the country battling its worst economic crisis in decades.
Market sentiment towards debt-laden Lebanon has improved since Prime Minister Hassan Diab on Wednesday asked the government and banks for a plan to restore confidence and ease a liquidity crunch.
Lebanon’s March 2020 bond, its most immediate debt maturity, surged 4.1 cents in its biggest daily gain on record, although it still only stood at 80.5 cents in the dollar.
While Lebanon’s longer-dated bonds are trading at less than half their face value, indicating a high probability of a debt default or restructuring at some point, the market has focused on whether the government will meet the March obligation.
Lebanon’s March 2020 bond rallied by a record amount on Thursday, signalling growing investor hopes that the $1.2 billion issue might be repaid despite the country battling its worst economic crisis in decades.
Market sentiment towards debt-laden Lebanon has improved since Prime Minister Hassan Diab on Wednesday asked the government and banks for a plan to restore confidence and ease a liquidity crunch.
Lebanon’s March 2020 bond, its most immediate debt maturity, surged 4.1 cents in its biggest daily gain on record, although it still only stood at 80.5 cents in the dollar.
While Lebanon’s longer-dated bonds are trading at less than half their face value, indicating a high probability of a debt default or restructuring at some point, the market has focused on whether the government will meet the March obligation.
#Saudi bank lending jumps on mortgages, Aramco IPO boosts money supply - Reuters
Saudi bank lending jumps on mortgages, Aramco IPO boosts money supply - Reuters:
Annual growth in Saudi Arabian bank lending to the private sector rose at its highest pace in years in December, boosted by mortgages, while the proceeds of Saudi Aramco’s initial public offering lifted money supply, official data showed.
The world’s biggest oil exporter is aiming to boost the private sector and diversify its revenues, but will likely see its growth curbed this year because of sliding oil prices and crude output cuts agreed with OPEC allies.
Bank lending to the private sector SALOA=ECI grew 7% year-on-year in December, the central bank said this week, the highest annual growth rate since October 2016.
Annual growth in M3 money supply SAM3=ECI, the broadest money supply measure, jumped 7.1% year on year – the highest in over four years – with some analysts saying the spike was partly due to proceeds coming from the IPO of state oil giant Aramco.
Annual growth in Saudi Arabian bank lending to the private sector rose at its highest pace in years in December, boosted by mortgages, while the proceeds of Saudi Aramco’s initial public offering lifted money supply, official data showed.
The world’s biggest oil exporter is aiming to boost the private sector and diversify its revenues, but will likely see its growth curbed this year because of sliding oil prices and crude output cuts agreed with OPEC allies.
Bank lending to the private sector SALOA=ECI grew 7% year-on-year in December, the central bank said this week, the highest annual growth rate since October 2016.
Annual growth in M3 money supply SAM3=ECI, the broadest money supply measure, jumped 7.1% year on year – the highest in over four years – with some analysts saying the spike was partly due to proceeds coming from the IPO of state oil giant Aramco.
Oil falls 2% on spread of China virus - Reuters
Oil falls 2% on spread of China virus - Reuters:
Oil prices fell on Thursday on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting.
Brent crude LCOc1 was down $1.29, or 2.16%, at $58.52 a barrel by 1321 GMT, having risen 0.5% on Wednesday. U.S. crude CLc1 was down $1.07, or 2.01%, at $52.26 after dropping 0.3% in the previous session.
Countries have started isolating hundreds of citizens evacuated from the Chinese city of Wuhan on Thursday to stop the spread of an epidemic that has killed 170 people as worry about the impact on the world’s second-biggest economy rattled markets.
Prices have steadied in recent days at three-month lows as investors tried to assess what economic damage the virus might inflict and to demand for crude oil and its products.
Oil prices fell on Thursday on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting.
Brent crude LCOc1 was down $1.29, or 2.16%, at $58.52 a barrel by 1321 GMT, having risen 0.5% on Wednesday. U.S. crude CLc1 was down $1.07, or 2.01%, at $52.26 after dropping 0.3% in the previous session.
Countries have started isolating hundreds of citizens evacuated from the Chinese city of Wuhan on Thursday to stop the spread of an epidemic that has killed 170 people as worry about the impact on the world’s second-biggest economy rattled markets.
Prices have steadied in recent days at three-month lows as investors tried to assess what economic damage the virus might inflict and to demand for crude oil and its products.
MIDEAST STOCKS-Gulf bourses mixed; Telecom Egypt continues rally | Nasdaq
MIDEAST STOCKS-Gulf bourses mixed; Telecom Egypt continues rally | Nasdaq:
Saudi Arabian stocks rose on Thursday as most of its banking shares climbed, while Egypt outperformed the region led by gains in blue-chips. Other Middle Eastern bourses were mixed.
Egypt's blue-chip index advanced, 1.1% with 24 of 30 stocks on the index rising.
Telecom Egypt soared 10%, reaching its highest since September. The stock was up for a third session, helped by Vodafone Group's deal to sell its 55% stake in Vodafone Egypt . Telecom Egypt said on Sunday it had no intention of selling its 45% stake in Vodafone Egypt. Stock exchange data showed Egyptian investors were net buyers of stocks.
Saudi Arabia's benchmark index closed up 0.8%, with Al Rajhi Bank and National Commercial Bank (NCB) rising 1.2% and 2.5%, respectively. On Wednesday, the latter reported a 18.8% rise in 2019 net profit to 11.4 billion riyals ($3.04 billion). But, state-owned oil giant Saudi Aramco retreated 0.7% to 34.2 riyals.
Saudi Arabian stocks rose on Thursday as most of its banking shares climbed, while Egypt outperformed the region led by gains in blue-chips. Other Middle Eastern bourses were mixed.
Egypt's blue-chip index advanced, 1.1% with 24 of 30 stocks on the index rising.
Telecom Egypt soared 10%, reaching its highest since September. The stock was up for a third session, helped by Vodafone Group's deal to sell its 55% stake in Vodafone Egypt . Telecom Egypt said on Sunday it had no intention of selling its 45% stake in Vodafone Egypt. Stock exchange data showed Egyptian investors were net buyers of stocks.
Saudi Arabia's benchmark index closed up 0.8%, with Al Rajhi Bank and National Commercial Bank (NCB) rising 1.2% and 2.5%, respectively. On Wednesday, the latter reported a 18.8% rise in 2019 net profit to 11.4 billion riyals ($3.04 billion). But, state-owned oil giant Saudi Aramco retreated 0.7% to 34.2 riyals.
Not Even Aramco’s Giant IPO Can Get Saudis Trading More Stocks - Bloomberg
Not Even Aramco’s Giant IPO Can Get Saudis Trading More Stocks - Bloomberg:
If anything could push up trading volumes on a stock market, you’d think it would be the world’s biggest initial public offering and an upgrade from two of the main providers of global equity indexes.
Not so with Saudi Arabia.
Turnover on the Tadawul exchange in Riyadh has averaged 3.6 billion riyals ($960 million) a day over the past year, which is 16% below the gauge’s five-year average.
That’s despite Saudi stocks being promoted to emerging-market status by MSCI Inc. and FTSE Russell in 2019 and oil giant Saudi Aramco’s $29.4 billion listing in December. While there were trading spikes around those events, they proved short-lived.
If anything could push up trading volumes on a stock market, you’d think it would be the world’s biggest initial public offering and an upgrade from two of the main providers of global equity indexes.
Not so with Saudi Arabia.
Turnover on the Tadawul exchange in Riyadh has averaged 3.6 billion riyals ($960 million) a day over the past year, which is 16% below the gauge’s five-year average.
That’s despite Saudi stocks being promoted to emerging-market status by MSCI Inc. and FTSE Russell in 2019 and oil giant Saudi Aramco’s $29.4 billion listing in December. While there were trading spikes around those events, they proved short-lived.
OPEC May Call Early Meeting as Virus Puts Oil Demand at Risk - Bloomberg
OPEC May Call Early Meeting as Virus Puts Oil Demand at Risk - Bloomberg:
OPEC members are considering holding an emergency meeting next month, as oil prices sink on concern the coronavirus outbreak will hit demand.
Algerian Energy Minister Mohamed Arkab said the producer group’s meeting scheduled for March is likely to be moved to February, the Algerie Presse Service reported. A decision may be taken “in the coming days,” he said. He currently holds the rotating post of OPEC President, giving him the authority to convene emergency meetings in consultation with the Secretary-General and other members.
One delegate from an OPEC member said privately it could happen as soon as next week, and another floated mid-February as a date. Still, several delegates said they were unaware of discussions to bring the March 5-6 meeting forward.
There’s good reason to be skeptical about the prospective change of dates. If the group convenes an emergency meeting without announcing new measures, the disappointment among traders could push prices even lower. It already unveiled deeper production cuts just over a month ago, and as these are put into effect, Saudi Arabia -- which has borne the greatest burden in reducing supply - has slashed output to the lowest since 2014.
OPEC members are considering holding an emergency meeting next month, as oil prices sink on concern the coronavirus outbreak will hit demand.
Algerian Energy Minister Mohamed Arkab said the producer group’s meeting scheduled for March is likely to be moved to February, the Algerie Presse Service reported. A decision may be taken “in the coming days,” he said. He currently holds the rotating post of OPEC President, giving him the authority to convene emergency meetings in consultation with the Secretary-General and other members.
One delegate from an OPEC member said privately it could happen as soon as next week, and another floated mid-February as a date. Still, several delegates said they were unaware of discussions to bring the March 5-6 meeting forward.
There’s good reason to be skeptical about the prospective change of dates. If the group convenes an emergency meeting without announcing new measures, the disappointment among traders could push prices even lower. It already unveiled deeper production cuts just over a month ago, and as these are put into effect, Saudi Arabia -- which has borne the greatest burden in reducing supply - has slashed output to the lowest since 2014.
Lebanon News: Bonds Sink as Debt Crisis Continues - Bloomberg
Lebanon News: Bonds Sink as Debt Crisis Continues - Bloomberg:
As investors count down to Lebanon’s next bond maturity on March 9, a fresh meltdown in the debt market reflects their concern over the government’s solvency.
Many of the crisis-ridden nation’s Eurobonds have slumped to record lows as relief over the formation of a new government last week proved to be short-lived:
As investors count down to Lebanon’s next bond maturity on March 9, a fresh meltdown in the debt market reflects their concern over the government’s solvency.
Many of the crisis-ridden nation’s Eurobonds have slumped to record lows as relief over the formation of a new government last week proved to be short-lived:
- The price of the $1.2 billion security due in March has declined 5 cents this week to 76 cents on the dollar, a record low; that equates to a yield to maturity of almost 300%
- A $2.1 billion bond maturing in April 2021 slid below 50 cents for the first time this week and traded at 45 cents on Wednesday
- Notes due May 2029 have fallen 8 cents in the past five trading days to 34 cents
Oil falls on spread of Wuhan virus, U.S. oil-stocks build - Reuters
Oil falls on spread of Wuhan virus, U.S. oil-stocks build - Reuters:
Oil prices fell on Thursday as alarm spread over the economic impact of the Wuhan virus in China, while a bigger-than-expected increase in U.S. crude stocks added to the negative tone.
Brent LCOc1 was down 95 cents, or 1.6%, at $58.86 a barrel by 0738 GMT, having risen 0.5% on Wednesday. U.S. crude CLc1 was down 84 cents, or 1.6%, at $52.49 a barrel, after dropping 0.3% in the previous session.
Prices had steadied in recent days, after a rout pushed them to three-month lows as investors tried to assess damage from the virus to economic growth and demand for crude and its products.
But now the rising death toll from the virus and its dispersion around the world has again turned screens red, with Asian stock markets down sharply.
Oil prices fell on Thursday as alarm spread over the economic impact of the Wuhan virus in China, while a bigger-than-expected increase in U.S. crude stocks added to the negative tone.
Brent LCOc1 was down 95 cents, or 1.6%, at $58.86 a barrel by 0738 GMT, having risen 0.5% on Wednesday. U.S. crude CLc1 was down 84 cents, or 1.6%, at $52.49 a barrel, after dropping 0.3% in the previous session.
Prices had steadied in recent days, after a rout pushed them to three-month lows as investors tried to assess damage from the virus to economic growth and demand for crude and its products.
But now the rising death toll from the virus and its dispersion around the world has again turned screens red, with Asian stock markets down sharply.
Mideast Stocks: Major Gulf markets little changed in quiet early trade | ZAWYA MENA Edition
Mideast Stocks: Major Gulf markets little changed in quiet early trade | ZAWYA MENA Edition:
Most Gulf stock markets were little changed in thin trading early on Thursday, with banking and energy shares hurting Saudi Arabia while corporate earnings supported Abu Dhabi.
The Saudi stock index slipped 0.2% with Saudi British Bank shedding 1.4% and oil giant Saudi Aramco was down 0.4%.
Yemen's Iran-aligned Houthi movement said on Wednesday it had launched rockets and drone strikes at Saudi targets, including Aramco oil facilities, the group's first claim of such attacks since it offered to halt them four months ago.
Oil prices were higher after the reports but fell on Thursday, as alarm spread over the economic impact of China's coronavirus. A bigger-than-expected increase in U.S. crude stockpiles added to the pressure on prices.
Most Gulf stock markets were little changed in thin trading early on Thursday, with banking and energy shares hurting Saudi Arabia while corporate earnings supported Abu Dhabi.
The Saudi stock index slipped 0.2% with Saudi British Bank shedding 1.4% and oil giant Saudi Aramco was down 0.4%.
Yemen's Iran-aligned Houthi movement said on Wednesday it had launched rockets and drone strikes at Saudi targets, including Aramco oil facilities, the group's first claim of such attacks since it offered to halt them four months ago.
Oil prices were higher after the reports but fell on Thursday, as alarm spread over the economic impact of China's coronavirus. A bigger-than-expected increase in U.S. crude stockpiles added to the pressure on prices.
Wednesday, 29 January 2020
Moody's raises rating of #Dubai Aerospace Enterprise to investment grade - Arabianbusiness
Moody's raises rating of Dubai Aerospace Enterprise to investment grade - Arabianbusiness:
Dubai Aerospace Enterprise (DAE) on Wednesday announced that Moody’s Investors Service has upgraded its corporate family rating to investment grade.
The ratings agency said the rating of the aircraft leasing company had been changed from Baa3 from Ba1, and the senior unsecured rating of subsidiary DAE Funding to Baa3 from Ba2. This action concludes the review for upgrade initiated in November, the agency said, adding that the outlook is stable.
Firoz Tarapore, CEO of DAE said: “We have worked assiduously over the last two years to position our franchise to be rated as an investment grade company. We are delighted with this rating upgrade from Moody’s.
"DAE's senior unsecured debt is now rated investment grade by three major US credit rating agencies. This will enable us to further solidify our Top 10 franchise, accelerate our growth ambitions and strengthen our liquidity and capital position."
Dubai Aerospace Enterprise (DAE) on Wednesday announced that Moody’s Investors Service has upgraded its corporate family rating to investment grade.
The ratings agency said the rating of the aircraft leasing company had been changed from Baa3 from Ba1, and the senior unsecured rating of subsidiary DAE Funding to Baa3 from Ba2. This action concludes the review for upgrade initiated in November, the agency said, adding that the outlook is stable.
Firoz Tarapore, CEO of DAE said: “We have worked assiduously over the last two years to position our franchise to be rated as an investment grade company. We are delighted with this rating upgrade from Moody’s.
"DAE's senior unsecured debt is now rated investment grade by three major US credit rating agencies. This will enable us to further solidify our Top 10 franchise, accelerate our growth ambitions and strengthen our liquidity and capital position."
Yemen's Houthis say they fired at Aramco, other #Saudi targets - Reuters
Yemen's Houthis say they fired at Aramco, other Saudi targets - Reuters:
Yemen’s Iran-aligned Houthi movement said on Wednesday it had fired rocket and drone strikes at Saudi targets including Aramco oil facilities, the group’s first claim of such attacks since it offered to halt them four months ago.
Few details were given of the precise nature and timing of the attacks, and there was no immediate confirmation from the Saudi authorities of any strikes.
In comments reported by Houthi-run Al Masirah TV, Houthi military spokesman Yahya Saria said more than 15 “operations” had been carried out in the past week inside Saudi Arabia in retaliation for an escalation in air strikes.
Saudi Aramco facilities in Jizan on the Red Sea were targeted, along with other targets near the border with Yemen, including Abha and Jizan airports and Khamis Mushait military base, “with a large number of rockets and drones”, he said in a separate statement.
Yemen’s Iran-aligned Houthi movement said on Wednesday it had fired rocket and drone strikes at Saudi targets including Aramco oil facilities, the group’s first claim of such attacks since it offered to halt them four months ago.
Few details were given of the precise nature and timing of the attacks, and there was no immediate confirmation from the Saudi authorities of any strikes.
In comments reported by Houthi-run Al Masirah TV, Houthi military spokesman Yahya Saria said more than 15 “operations” had been carried out in the past week inside Saudi Arabia in retaliation for an escalation in air strikes.
Saudi Aramco facilities in Jizan on the Red Sea were targeted, along with other targets near the border with Yemen, including Abha and Jizan airports and Khamis Mushait military base, “with a large number of rockets and drones”, he said in a separate statement.
Oil mixed as virus fears, U.S. stock build face talk of further OPEC cuts - Reuters
Oil mixed as virus fears, U.S. stock build face talk of further OPEC cuts - Reuters:
Oil prices were mixed on Wednesday as worries about the coronavirus outbreak and swelling U.S. crude inventories weighed on prices, counter-balanced by talk that OPEC could extend oil output cuts.
Brent crude LCOc1 rose 30 cents, or 0.5%, to settle at $59.81 per barrel. U.S. crude Clc1 ended at $53.33, down 15 cents or 0.3%.
Financial markets are trying to assess economic fallout as the virus spreads out of China where the death toll continues to rise, while airlines cut flights to China.
“Following the outbreak of coronavirus, commodities markets suffered from a technical selloff,” said Michel Salden, senior portfolio manager of Vontobel Asset Management. But oil prices would likely rebound soon after a 14% drop so far, far more than the fall in stock markets.
Oil prices were mixed on Wednesday as worries about the coronavirus outbreak and swelling U.S. crude inventories weighed on prices, counter-balanced by talk that OPEC could extend oil output cuts.
Brent crude LCOc1 rose 30 cents, or 0.5%, to settle at $59.81 per barrel. U.S. crude Clc1 ended at $53.33, down 15 cents or 0.3%.
Financial markets are trying to assess economic fallout as the virus spreads out of China where the death toll continues to rise, while airlines cut flights to China.
“Following the outbreak of coronavirus, commodities markets suffered from a technical selloff,” said Michel Salden, senior portfolio manager of Vontobel Asset Management. But oil prices would likely rebound soon after a 14% drop so far, far more than the fall in stock markets.
Oil Slides On Rising Crude Inventories | OilPrice.com
Oil Slides On Rising Crude Inventories | OilPrice.com:
Crude oil headed lower today, reversing a rally after the Energy Information Administration reported a build in oil inventories of 3.5 million barrels for the week to January 24.
Analysts had expected a draw of 460,000 bpd, after last week the EIA reported a draw of 400,000 bpd for the seven days to January 17.
At 431.7 million barrels, crude oil inventories in the United States are a little below the five-year average for this time of the year.
The EIA also reported a 1.2-million-barrel build in gasoline inventories as well, versus a build of 1.7 million barrels for the previous week. Gasoline production averaged 9.2 million bpd, down from 9.5 million bpd a week earlier.
Distillate fuel inventories fell by 1.3 million barrels last week. This compared with a 1.2-million-barrel decline a week earlier. Distillate fuel production averaged 5 million bpd in the week to January 24, unchanged from the previous week.
At the time of writing, Brent crude was trading at $58.75 a barrel and West Texas Intermediate was at $53.24 a barrel.
Crude oil headed lower today, reversing a rally after the Energy Information Administration reported a build in oil inventories of 3.5 million barrels for the week to January 24.
Analysts had expected a draw of 460,000 bpd, after last week the EIA reported a draw of 400,000 bpd for the seven days to January 17.
At 431.7 million barrels, crude oil inventories in the United States are a little below the five-year average for this time of the year.
The EIA also reported a 1.2-million-barrel build in gasoline inventories as well, versus a build of 1.7 million barrels for the previous week. Gasoline production averaged 9.2 million bpd, down from 9.5 million bpd a week earlier.
Distillate fuel inventories fell by 1.3 million barrels last week. This compared with a 1.2-million-barrel decline a week earlier. Distillate fuel production averaged 5 million bpd in the week to January 24, unchanged from the previous week.
At the time of writing, Brent crude was trading at $58.75 a barrel and West Texas Intermediate was at $53.24 a barrel.
Credit Suisse Ignored Warning on $2 Billion Deal With Tycoon - Bloomberg
Credit Suisse Ignored Warning on $2 Billion Deal With Tycoon - Bloomberg:
Credit Suisse Group AG ignored warnings from its outgoing regional chief executive officer on the risks of lending $2 billion to Mozambique in a scandal that has landed the Swiss bank in a lawsuit and opened up questions about its due diligence.
A legal filing from Credit Suisse published last week has revealed that Fawzi Kyriakos-Saad, at the time the chief of the bank’s EMEA business, warned a group of dealmakers not to proceed with the initial stage of the multi-billion dollar financing.
It’s the first time the lender has confirmed that its managers had misgivings about the transaction, which ultimately generated a number of deals for the bank.
The money was meant to provide for a new coastal patrol force and develop a tuna fishing fleet for one of the world’s poorest countries. But the fundraisings would ultimately come to the attention of U.S. prosecutors who alleged that the contracts were a front for government officials and Credit Suisse’s own bankers to enrich themselves by as much as $200 million.
Credit Suisse Group AG ignored warnings from its outgoing regional chief executive officer on the risks of lending $2 billion to Mozambique in a scandal that has landed the Swiss bank in a lawsuit and opened up questions about its due diligence.
A legal filing from Credit Suisse published last week has revealed that Fawzi Kyriakos-Saad, at the time the chief of the bank’s EMEA business, warned a group of dealmakers not to proceed with the initial stage of the multi-billion dollar financing.
It’s the first time the lender has confirmed that its managers had misgivings about the transaction, which ultimately generated a number of deals for the bank.
The money was meant to provide for a new coastal patrol force and develop a tuna fishing fleet for one of the world’s poorest countries. But the fundraisings would ultimately come to the attention of U.S. prosecutors who alleged that the contracts were a front for government officials and Credit Suisse’s own bankers to enrich themselves by as much as $200 million.
Sabic Sees Chemicals Glut Hit Profit as Aramco Buyout Looms - Bloomberg
Sabic Sees Chemicals Glut Hit Profit as Aramco Buyout Looms - Bloomberg:
Saudi Basic Industries Inc. expects earnings to come under further pressure this year from sluggish economic growth and an oversupply of petrochemicals. The shares fell.
The Middle East’s biggest chemicals maker reported its first quarterly loss in a decade last quarter due to lower sales prices and writedowns at a joint venture. The same factors that squeezed prices and profit margins last year are likely to persist in 2020, the state-run company said Wednesday.
“We see there is a slowdown in growth globally, specifically in China and Europe,” Chief Executive Officer Yousef Al Benyan told reporters in Riyadh. “These are very important regions that are going to impact the overall demand of our chemicals industry.” Additional production capacity in the U.S. and China “has really put pressure on margins,” he said.
Sabic is an important part of Crown Prince Mohammed bin Salman’s ambition to overhaul the kingdom’s economy by developing new industries and manufacturing. Saudi Aramco is preparing to buy the sovereign wealth fund’s majority stake in Sabic as the oil producer seeks to become a global chemicals powerhouse.
Saudi Basic Industries Inc. expects earnings to come under further pressure this year from sluggish economic growth and an oversupply of petrochemicals. The shares fell.
The Middle East’s biggest chemicals maker reported its first quarterly loss in a decade last quarter due to lower sales prices and writedowns at a joint venture. The same factors that squeezed prices and profit margins last year are likely to persist in 2020, the state-run company said Wednesday.
“We see there is a slowdown in growth globally, specifically in China and Europe,” Chief Executive Officer Yousef Al Benyan told reporters in Riyadh. “These are very important regions that are going to impact the overall demand of our chemicals industry.” Additional production capacity in the U.S. and China “has really put pressure on margins,” he said.
Sabic is an important part of Crown Prince Mohammed bin Salman’s ambition to overhaul the kingdom’s economy by developing new industries and manufacturing. Saudi Aramco is preparing to buy the sovereign wealth fund’s majority stake in Sabic as the oil producer seeks to become a global chemicals powerhouse.
Dubai's Drake & Scull files new criminal complaints against former CEO - Arabianbusiness
Dubai's Drake & Scull files new criminal complaints against former CEO - Arabianbusiness:
Drake & Scull International (DSI) said on Wednesday it has filed new criminal complaints with the Abu Dhabi public funds prosecutor against its former CEO and vice chairman Khaldoun Tabari, family members and other former executive managers.
Responding to 15 prior criminal complaints filed by Dubai-based DSI, the prosecutor has charged Tabari for misappropriation, fraud, embezzlement, intentional damage to public funds, profiteering others and forgery, DSI said, without giving details of the new complaints.
The company added in a statement that it has been pursuing legal action against Tabari to get him extradited to the UAE following his arrest by Jordanian authorities at Queen Alia International Airport in Amman.
The arrest followed an International arrest warrant filed by UAE authorities against Tabari that resulted in an Interpol red notice issued January 7. DSI recently confirmed media reports regarding the arrest.
Drake & Scull International (DSI) said on Wednesday it has filed new criminal complaints with the Abu Dhabi public funds prosecutor against its former CEO and vice chairman Khaldoun Tabari, family members and other former executive managers.
Responding to 15 prior criminal complaints filed by Dubai-based DSI, the prosecutor has charged Tabari for misappropriation, fraud, embezzlement, intentional damage to public funds, profiteering others and forgery, DSI said, without giving details of the new complaints.
The company added in a statement that it has been pursuing legal action against Tabari to get him extradited to the UAE following his arrest by Jordanian authorities at Queen Alia International Airport in Amman.
The arrest followed an International arrest warrant filed by UAE authorities against Tabari that resulted in an Interpol red notice issued January 7. DSI recently confirmed media reports regarding the arrest.
Banks to provide $650 mln loan for #Kuwait wastewater plant - Reuters
Banks to provide $650 mln loan for Kuwait wastewater plant - Reuters:
A group of six local and international banks has agreed to provide a $650 million 26-year loan to finance the construction and operation of Kuwait’s Umm al-Hayman Company for Waste Water Treatment project, three of the lenders said in a joint statement.
The consortium of banks is led by Al Ahli Bank of Kuwait , Commercial Bank of Kuwait and KfW IPEX-Bank. It also includes DZ Bank, the Korea Development Bank and Siemens Bank.
Kuwait’s Ministry of Public Works signed a public-private partnership with the project company last week to develop the plant, the statement from the lenders said.
Umm al-Hayman Company for Waste Water Treatment is 40% owned by its developers WTE Wassertechnik GmbH and Kuwait’s International Financial Advisors, 10% by the Kuwait Investment Authority and 50% by Kuwait Authority for Partnership Projects (KAPP), the statement said.
A group of six local and international banks has agreed to provide a $650 million 26-year loan to finance the construction and operation of Kuwait’s Umm al-Hayman Company for Waste Water Treatment project, three of the lenders said in a joint statement.
The consortium of banks is led by Al Ahli Bank of Kuwait , Commercial Bank of Kuwait and KfW IPEX-Bank. It also includes DZ Bank, the Korea Development Bank and Siemens Bank.
Kuwait’s Ministry of Public Works signed a public-private partnership with the project company last week to develop the plant, the statement from the lenders said.
Umm al-Hayman Company for Waste Water Treatment is 40% owned by its developers WTE Wassertechnik GmbH and Kuwait’s International Financial Advisors, 10% by the Kuwait Investment Authority and 50% by Kuwait Authority for Partnership Projects (KAPP), the statement said.
Oil rises as markets wait on virus impact and U.S. stockpiles fall - Reuters
Oil rises as markets wait on virus impact and U.S. stockpiles fall - Reuters:
Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout, on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand and data showing a decline in U.S. stockpiles.
Brent crude LCOc1 rose 47 cents, or 0.8%, to $59.98 a barrel by 1350 GMT. U.S. crude was up 36 cents, or 0.7%, at $53.84.
Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
“While the coronavirus continues to spread both in and outside China the market is trying to adjust positions across all asset classes,” said Saxo Bank analyst Ole Hansen.
Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout, on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand and data showing a decline in U.S. stockpiles.
Brent crude LCOc1 rose 47 cents, or 0.8%, to $59.98 a barrel by 1350 GMT. U.S. crude was up 36 cents, or 0.7%, at $53.84.
Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
“While the coronavirus continues to spread both in and outside China the market is trying to adjust positions across all asset classes,” said Saxo Bank analyst Ole Hansen.
MIDEAST STOCKS-Most Middle Eastern stocks rise; Egypt outperforms - Reuters
MIDEAST STOCKS-Most Middle Eastern stocks rise; Egypt outperforms - Reuters:
Most Middle Eastern stock markets rose on
Wednesday, supported by gains in banking shares and recovering
oil prices, while Egypt ended a four-day losing streak.
Oil prices rose for a second day, recouping some losses
after a five-day rout, on talk that OPEC would extend oil output
cuts if a new coronavirus hurts demand and on data showing a
decline in U.S. stockpiles.
Egypt's blue-chip index advanced 1% as Telecom
Egypt soared 10% following Vodafone Group's
agreement to sell its stake in Egyptian unit, Vodafone Egypt
.
Telecom Egypt said on Sunday it had no intention of selling
its 45% stake in Vodafone Egypt.
Stock exchange data showed that Egyptian investors were net
buyers of stocks.
Most Middle Eastern stock markets rose on
Wednesday, supported by gains in banking shares and recovering
oil prices, while Egypt ended a four-day losing streak.
Oil prices rose for a second day, recouping some losses
after a five-day rout, on talk that OPEC would extend oil output
cuts if a new coronavirus hurts demand and on data showing a
decline in U.S. stockpiles.
Egypt's blue-chip index advanced 1% as Telecom
Egypt soared 10% following Vodafone Group's
agreement to sell its stake in Egyptian unit, Vodafone Egypt
.
Telecom Egypt said on Sunday it had no intention of selling
its 45% stake in Vodafone Egypt.
Stock exchange data showed that Egyptian investors were net
buyers of stocks.
Oil Claws Back Some Virus Losses After U.S. Stockpiles Report - Bloomberg
Oil Claws Back Some Virus Losses After U.S. Stockpiles Report - Bloomberg:
Oil extended its recovery from a virus-induced slump as a report showing a drop in U.S. crude inventories, a rebound on Wall Street and speculation OPEC+ will step in to prop up prices reassured investors.
The American Petroleum Institute reported stockpiles fell by 4.27 million barrels last week, which would be the biggest drop this year if confirmed by government data due later on Wednesday. That took some attention away from the novel coronavirus, which kept spreading as confirmed cases in China overtook the official number of infections during the SARS epidemic.
Oil has rebounded 1.5% after closing at a three-month low on Monday amid concern over the potential impact of the outbreak on travel and economic activity in China, the world’s biggest energy consumer. The Organization of Petroleum Exporting Countries and its allies could deepen output cuts at its next meeting in March to take account of lower demand due to the virus, according to Ed Morse, head of commodities research at Citigroup Inc.
Oil extended its recovery from a virus-induced slump as a report showing a drop in U.S. crude inventories, a rebound on Wall Street and speculation OPEC+ will step in to prop up prices reassured investors.
The American Petroleum Institute reported stockpiles fell by 4.27 million barrels last week, which would be the biggest drop this year if confirmed by government data due later on Wednesday. That took some attention away from the novel coronavirus, which kept spreading as confirmed cases in China overtook the official number of infections during the SARS epidemic.
Oil has rebounded 1.5% after closing at a three-month low on Monday amid concern over the potential impact of the outbreak on travel and economic activity in China, the world’s biggest energy consumer. The Organization of Petroleum Exporting Countries and its allies could deepen output cuts at its next meeting in March to take account of lower demand due to the virus, according to Ed Morse, head of commodities research at Citigroup Inc.
#Sharjah's 'significant' gas discovery to boost emirate's economy | ZAWYA MENA Edition
Sharjah's 'significant' gas discovery to boost emirate's economy | ZAWYA MENA Edition:
Sharjah, the third-largest emirate of the Unites Arab Emirates, is set to see positive domestic energy and economic development with its new gas discovery.
The Northern emirate announced a successful new discovery of natural gas and condensate onshore earlier this week, with flow rates of up to 50 million standard cubic feet per day.
“That is considered a significant flow of a new discovery well,” Cyril Widdershoven, global energy markets expert and founder of consultancy Verocy told Zawya.
Sharjah National Oil Corporation (SNOC) and its Italian partner ENI both hold a 50 percent stake in the discovery as part of a concession agreement signed early last year. It is considered the first onshore gas discovery in the emirate in 37 years.
Sharjah, the third-largest emirate of the Unites Arab Emirates, is set to see positive domestic energy and economic development with its new gas discovery.
The Northern emirate announced a successful new discovery of natural gas and condensate onshore earlier this week, with flow rates of up to 50 million standard cubic feet per day.
“That is considered a significant flow of a new discovery well,” Cyril Widdershoven, global energy markets expert and founder of consultancy Verocy told Zawya.
Sharjah National Oil Corporation (SNOC) and its Italian partner ENI both hold a 50 percent stake in the discovery as part of a concession agreement signed early last year. It is considered the first onshore gas discovery in the emirate in 37 years.
COLUMN-LNG, the champagne of fuels, should enjoy its beer moment: Russell - Reuters
COLUMN-LNG, the champagne of fuels, should enjoy its beer moment: Russell - Reuters:
It’s been an extremely weak start to the new decade for liquefied natural gas (LNG) with spot prices in Asia falling to more than 10-year lows, but it’s not all doom and gloom for an industry that sees itself as part of the solution to climate change.
The average spot price for LNG LNG-AS delivered to north Asia for March dropped to $4 per million British thermal units in the week to Jan. 24, with some cargoes trading at just $3.95.
At below $4 per mmBtu, the spot price is at the weakest level in Asia since summer of 2009, according to data from S&P Global Platts, the price reporting agency that assesses the benchmark Japan-Korea-Marker (JKM) price.
The price is down 41% from its winter peak of $6.80 per mmBtu, hit in the week to Oct. 11, meaning that the super-chilled fuel has effectively missed out on the usual boost to prices from demand in north Asia in the colder months.
It’s been an extremely weak start to the new decade for liquefied natural gas (LNG) with spot prices in Asia falling to more than 10-year lows, but it’s not all doom and gloom for an industry that sees itself as part of the solution to climate change.
The average spot price for LNG LNG-AS delivered to north Asia for March dropped to $4 per million British thermal units in the week to Jan. 24, with some cargoes trading at just $3.95.
At below $4 per mmBtu, the spot price is at the weakest level in Asia since summer of 2009, according to data from S&P Global Platts, the price reporting agency that assesses the benchmark Japan-Korea-Marker (JKM) price.
The price is down 41% from its winter peak of $6.80 per mmBtu, hit in the week to Oct. 11, meaning that the super-chilled fuel has effectively missed out on the usual boost to prices from demand in north Asia in the colder months.
UPDATE 1- #Saudi lender NCB reports 18.8% rise in 2019 net profit - Reuters
UPDATE 1-Saudi lender NCB reports 18.8% rise in 2019 net profit - Reuters:
Saudi Arabia’s National Commercial Bank (NCB), saw a 13.2% rise in fourth-quarter net profit, according to Reuters calculations, helped by increased revenue from commissions and financing, and lower operating costs.
The country’ largest lender made a net profit of 3 billion riyals ($799.8 million)in the three months to Dec. 31, up from 2.65 billion riyals in the same period of 2018, Reuters calculated from financial statements in the absence of a quarterly breakdown.
NCB’s 2019 net profit was 11.4 billion riyals, up from 9.59 billion riyals in the same period a year earlier.
The profit was above the 10.3 billion riyals average net profit forecast of analysts polled by Refintiv.
Saudi Arabia’s National Commercial Bank (NCB), saw a 13.2% rise in fourth-quarter net profit, according to Reuters calculations, helped by increased revenue from commissions and financing, and lower operating costs.
The country’ largest lender made a net profit of 3 billion riyals ($799.8 million)in the three months to Dec. 31, up from 2.65 billion riyals in the same period of 2018, Reuters calculated from financial statements in the absence of a quarterly breakdown.
NCB’s 2019 net profit was 11.4 billion riyals, up from 9.59 billion riyals in the same period a year earlier.
The profit was above the 10.3 billion riyals average net profit forecast of analysts polled by Refintiv.
Vodafone to sell stake in Egyptian unit to Saudi Telecom for $2.4 billion - Reuters
Vodafone to sell stake in Egyptian unit to Saudi Telecom for $2.4 billion - Reuters:
Vodafone Group (VOD.L) has struck a preliminary deal to sell its 55% stake in its Egyptian unit to Saudi Arabia’s largest telecoms operator STC (7010.SE) for $2.4 billion, the companies said on Wednesday.
The non-binding deal values Vodafone Egypt at $4.4 billion and the two companies have agreed a arrangement over the long-term use of the Vodafone brand and other services in Egypt.
Selling the stake is in line with Vodafone’s efforts to streamline its operations to focus on Europe and sub-Saharan Africa, Vodafone Chief Executive Nick Read said.
“It will reduce our net debt and unlock value for our shareholders,” he said.
Vodafone Group (VOD.L) has struck a preliminary deal to sell its 55% stake in its Egyptian unit to Saudi Arabia’s largest telecoms operator STC (7010.SE) for $2.4 billion, the companies said on Wednesday.
The non-binding deal values Vodafone Egypt at $4.4 billion and the two companies have agreed a arrangement over the long-term use of the Vodafone brand and other services in Egypt.
Selling the stake is in line with Vodafone’s efforts to streamline its operations to focus on Europe and sub-Saharan Africa, Vodafone Chief Executive Nick Read said.
“It will reduce our net debt and unlock value for our shareholders,” he said.
Oil rises as markets wait on virus impact; U.S. stocks fall - Reuters
Oil rises as markets wait on virus impact; U.S. stocks fall - Reuters:
Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand, while data showing a decline in U.S. stockpiles helped steady prices.
Brent crude LCOc1 rose 58 cents, or 1%, to $60.09 a barrel by 0730 GMT. U.S. crude was up 55 cents, or 1%, at $54.03 a barrel.
Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
“Price action since last Tuesday does suggest that the market is pricing in a fairly sizeable demand impact,” ING Research said in a note.
Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand, while data showing a decline in U.S. stockpiles helped steady prices.
Brent crude LCOc1 rose 58 cents, or 1%, to $60.09 a barrel by 0730 GMT. U.S. crude was up 55 cents, or 1%, at $54.03 a barrel.
Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
“Price action since last Tuesday does suggest that the market is pricing in a fairly sizeable demand impact,” ING Research said in a note.
MIDEAST STOCKS-Major Gulf stocks up, #Saudi's NCB jumps on strong FY earnings | Nasdaq
MIDEAST STOCKS-Major Gulf stocks up, Saudi's NCB jumps on strong FY earnings | Nasdaq:
Major stock markets in the Middle East rose on Wednesday, largely on the back of gains in financial shares and a recovery in oil prices, while Saudi was cheered by a host of corporate announcements.
Oil prices climbed for a second day, recouping some losses after a five-day rout, on talk that OPEC could extend output cuts if China's outbreak of coronavirus hurts demand.
Saudi Arabia's benchmark index .TASI was up 0.5%, driven by a 3.1% increase in National Commercial Bank (NCB) 1180.SE.
The country's largest lender reported a higher net profit of 11.4 billion riyals ($3.04 billion) in 2019, compared to 9.59 billion riyals year before.
Saudi Telecom 7010.SE advanced 0.9% following its preliminary agreement to buy Vodafone's VOD.L 55% stake in Vodafone Egypt VODE.CA for $2.4 billion.
Major stock markets in the Middle East rose on Wednesday, largely on the back of gains in financial shares and a recovery in oil prices, while Saudi was cheered by a host of corporate announcements.
Oil prices climbed for a second day, recouping some losses after a five-day rout, on talk that OPEC could extend output cuts if China's outbreak of coronavirus hurts demand.
Saudi Arabia's benchmark index .TASI was up 0.5%, driven by a 3.1% increase in National Commercial Bank (NCB) 1180.SE.
The country's largest lender reported a higher net profit of 11.4 billion riyals ($3.04 billion) in 2019, compared to 9.59 billion riyals year before.
Saudi Telecom 7010.SE advanced 0.9% following its preliminary agreement to buy Vodafone's VOD.L 55% stake in Vodafone Egypt VODE.CA for $2.4 billion.
UPDATE 1-SABIC posts Q4 loss of $192 mln on writedown at affiliate, lower selling prices - Agricultural Commodities - Reuters
UPDATE 1-SABIC posts Q4 loss of $192 mln on writedown at affiliate, lower selling prices - Agricultural Commodities - Reuters:
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, posted a fourth-quarter net loss, the first quarterly loss in over a decade, due to lower average selling prices and a writedown at an affiliate.
SABIC swung to the loss of 720 million riyals ($192 million), compared to a profit of 3.22 billion riyals during the same quarter a year earlier, the company said in a bourse filing on Wednesday.
“Despite an uptick in Brent oil prices in the fourth quarter, the results were negatively impacted by a further decline in petrochemical prices driven by oversupply in the key products and slowing global growth coupled with seasonal impacts,” SABIC said.
Yousef Husseini, an analyst at EFG Hermes, said the last time SABIC suffered a quarterly loss was in the first quarter of 2009, and he predicted 2020 will be a tough year.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, posted a fourth-quarter net loss, the first quarterly loss in over a decade, due to lower average selling prices and a writedown at an affiliate.
SABIC swung to the loss of 720 million riyals ($192 million), compared to a profit of 3.22 billion riyals during the same quarter a year earlier, the company said in a bourse filing on Wednesday.
“Despite an uptick in Brent oil prices in the fourth quarter, the results were negatively impacted by a further decline in petrochemical prices driven by oversupply in the key products and slowing global growth coupled with seasonal impacts,” SABIC said.
Yousef Husseini, an analyst at EFG Hermes, said the last time SABIC suffered a quarterly loss was in the first quarter of 2009, and he predicted 2020 will be a tough year.
Tuesday, 28 January 2020
Column: Fear of China virus outstrips crude oil supply outages: Russell - Reuters
Column: Fear of China virus outstrips crude oil supply outages: Russell - Reuters:
A question for the crude oil market. Why is the potential loss of a few hundred thousand barrels per day of demand from the coronavirus in China more important than the actual loss of about 1 million bpd of supply from Libya?
Benchmark Brent crude futures LCOc1 have slumped around 10% since Jan. 20, the last day prices rose before the current losing streak, with the contract ending at $59.32 a barrel on Monday, the weakest close in three months.
The hit to oil prices has come as the number of cases of the new coronavirus outbreak, centered around the Chinese city of Wuhan, has soared and the disease has spread to several other countries.
At least 106 people have died and more than 2,800 have been infected with the virus, and Chinese authorities have effectively locked down Wuhan, a city of some 10 million people, and several other cities.
A question for the crude oil market. Why is the potential loss of a few hundred thousand barrels per day of demand from the coronavirus in China more important than the actual loss of about 1 million bpd of supply from Libya?
Benchmark Brent crude futures LCOc1 have slumped around 10% since Jan. 20, the last day prices rose before the current losing streak, with the contract ending at $59.32 a barrel on Monday, the weakest close in three months.
The hit to oil prices has come as the number of cases of the new coronavirus outbreak, centered around the Chinese city of Wuhan, has soared and the disease has spread to several other countries.
At least 106 people have died and more than 2,800 have been infected with the virus, and Chinese authorities have effectively locked down Wuhan, a city of some 10 million people, and several other cities.
Oil edges up as stock markets rebound after virus-related selloff - Reuters
Oil edges up as stock markets rebound after virus-related selloff - Reuters:
Oil futures edged up on Tuesday after falling for five days, gaining support from a rebound in Wall Street stocks and talk that OPEC and its allies might tighten the market amid fears the coronavirus could weigh on oil demand.
U.S. stocks rose as gains in technology and financial shares helped major indexes recover from their biggest selloff in about four months on worries over a coronavirus outbreak and its possible impact on global growth.
Brent LCOc1 futures rose 19 cents, or 0.3%, to $59.51 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 34 cents, or 0.6%, to $53.48.
“The bulk of today’s oil market advance appeared to reflect spillover from the strong rebound in the equities,” Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, said in a report, noting the strong dollar also restricted “buying enthusiasm in the energy complex.”
Oil futures edged up on Tuesday after falling for five days, gaining support from a rebound in Wall Street stocks and talk that OPEC and its allies might tighten the market amid fears the coronavirus could weigh on oil demand.
U.S. stocks rose as gains in technology and financial shares helped major indexes recover from their biggest selloff in about four months on worries over a coronavirus outbreak and its possible impact on global growth.
Brent LCOc1 futures rose 19 cents, or 0.3%, to $59.51 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 34 cents, or 0.6%, to $53.48.
“The bulk of today’s oil market advance appeared to reflect spillover from the strong rebound in the equities,” Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, said in a report, noting the strong dollar also restricted “buying enthusiasm in the energy complex.”
Adnoc’s $15 Billion Gas Pipeline Said to Attract BlackRock, GIP - Bloomberg
Adnoc’s $15 Billion Gas Pipeline Said to Attract BlackRock, GIP - Bloomberg:
BlackRock Inc., Global Infrastructure Partners and KKR & Co. are among suitors considering bidding for a stake in natural gas pipelines being sold by Abu Dhabi’s state-owned energy giant, people familiar with the matter said.
Australia’s IFM Investors Pty and Ontario Teachers’ Pension Plan are also weighing offers for a stake in Abu Dhabi National Oil Co.’s gas pipeline unit, according to the people. A deal could value the business at as much as $15 billion including debt, the people said, asking not to be identified because the information is private.
The oil giant expects to receive first-round bids in mid-February, the people said. Adnoc is seeking to sell as much as 49% of the business through a lease structure, according to the people.
Abu Dhabi, the capital of the United Arab Emirates, is among Persian Gulf oil producers that are opening up their operations to outside investment to attract fresh capital and diversify their economies. Adnoc has raised billions of dollars by bringing in partners for businesses including its refining unit and drilling business.
BlackRock Inc., Global Infrastructure Partners and KKR & Co. are among suitors considering bidding for a stake in natural gas pipelines being sold by Abu Dhabi’s state-owned energy giant, people familiar with the matter said.
Australia’s IFM Investors Pty and Ontario Teachers’ Pension Plan are also weighing offers for a stake in Abu Dhabi National Oil Co.’s gas pipeline unit, according to the people. A deal could value the business at as much as $15 billion including debt, the people said, asking not to be identified because the information is private.
The oil giant expects to receive first-round bids in mid-February, the people said. Adnoc is seeking to sell as much as 49% of the business through a lease structure, according to the people.
Abu Dhabi, the capital of the United Arab Emirates, is among Persian Gulf oil producers that are opening up their operations to outside investment to attract fresh capital and diversify their economies. Adnoc has raised billions of dollars by bringing in partners for businesses including its refining unit and drilling business.
Brent crude steadies just under $60/bbl, China oil demand in focus - Reuters
Brent crude steadies just under $60/bbl, China oil demand in focus - Reuters:
Oil futures steadied somewhat on Tuesday after a five-day losing streak as OPEC sources said the group and its allies might tighten the market amid fears that the coronavirus, which has claimed over 100 lives in China, could weigh on oil demand.
Brent crude LCOc1, which oscillated between positive and negative territory during European trading, was down 20 cents at $59.12 a barrel at 1416 GMT, having hit a three-month low of $58.50 on Monday. [MKTS/GLOB]
U.S. West Texas Intermediate CLc1 rose 7 cents to $53.21 a barrel, after slipping to its lowest since early October in the previous session. Both contracts are still on track for their worst monthly falls since May.
Oil futures steadied somewhat on Tuesday after a five-day losing streak as OPEC sources said the group and its allies might tighten the market amid fears that the coronavirus, which has claimed over 100 lives in China, could weigh on oil demand.
Brent crude LCOc1, which oscillated between positive and negative territory during European trading, was down 20 cents at $59.12 a barrel at 1416 GMT, having hit a three-month low of $58.50 on Monday. [MKTS/GLOB]
U.S. West Texas Intermediate CLc1 rose 7 cents to $53.21 a barrel, after slipping to its lowest since early October in the previous session. Both contracts are still on track for their worst monthly falls since May.
#Kuwait's KFH plans to drop assets of about 100 million dinars this year - CEO - Reuters
Kuwait's KFH plans to drop assets of about 100 million dinars this year - CEO - Reuters:
Kuwait Finance House (KFH) , the country’s largest Islamic bank, plans to shed assets worth about 100 million dinars ($329.5 million) in 2020 as it finalises the acquisition of Bahrain’s Ahli United Bank .
The step to exit assets including real estate, stocks and other direct investments comes “as part of KFH’s strategy to focus on the core business” of the bank, CEO Mazin Al-Nahedh said on Tuesday.
He said no profit would likely be made from the exits.
KFH has sold assets worth 137 million dinars in 2019 and achieved a profit of 40.1 million dinars, Nahedh said.
Kuwait Finance House (KFH) , the country’s largest Islamic bank, plans to shed assets worth about 100 million dinars ($329.5 million) in 2020 as it finalises the acquisition of Bahrain’s Ahli United Bank .
The step to exit assets including real estate, stocks and other direct investments comes “as part of KFH’s strategy to focus on the core business” of the bank, CEO Mazin Al-Nahedh said on Tuesday.
He said no profit would likely be made from the exits.
KFH has sold assets worth 137 million dinars in 2019 and achieved a profit of 40.1 million dinars, Nahedh said.
OPEC aims to extend oil output cuts through June, alarmed by China virus - Reuters
OPEC aims to extend oil output cuts through June, alarmed by China virus - Reuters:
OPEC wants to extend current oil output cuts until at least June, with the possibility of deeper reductions on the table if oil demand in China is significantly impacted by the spread of a new coronavirus, OPEC sources said.
The quick slide in oil prices over the past few days has alarmed OPEC officials, the sources say, as the new virus found in China and several other countries raised concerns about a hit to economic growth and oil demand.
Oil futures were on course for a sixth day of losses with Brent crude staying below $60 per barrel. On Monday it hit a three-month low of $58.50, as the virus outbreak triggered a global selloff of riskier assets.
Saudi Arabia, OPEC’s de-facto leader, joined by key oil producers such as the United Arab Emirates, Algeria and Oman, sought to calm market jitters on Monday - urging caution against gloomy expectations on the impact of the virus on the global economy and oil demand.
OPEC wants to extend current oil output cuts until at least June, with the possibility of deeper reductions on the table if oil demand in China is significantly impacted by the spread of a new coronavirus, OPEC sources said.
The quick slide in oil prices over the past few days has alarmed OPEC officials, the sources say, as the new virus found in China and several other countries raised concerns about a hit to economic growth and oil demand.
Oil futures were on course for a sixth day of losses with Brent crude staying below $60 per barrel. On Monday it hit a three-month low of $58.50, as the virus outbreak triggered a global selloff of riskier assets.
Saudi Arabia, OPEC’s de-facto leader, joined by key oil producers such as the United Arab Emirates, Algeria and Oman, sought to calm market jitters on Monday - urging caution against gloomy expectations on the impact of the virus on the global economy and oil demand.
Mideast Stocks: Corporate earnings lift #UAE; other major markets extend losses | ZAWYA MENA Edition
Mideast Stocks: Corporate earnings lift UAE; other major markets extend losses | ZAWYA MENA Edition:
Stock markets in the United Arab Emirates rose on Tuesday as positive corporate earnings outweighed pessimism about the coronavirus outbreak in China, while other major markets extended losses.
The Abu Dhabi index ended 0.2% hhigher, supported by a 7.2% surge in International Holding Company before its board meeting on Wednesday to approve fiscal-year earnings.
First Abu Dhabi Bank added 0.3% after posting a 5% increase in fourth-quarter profit. The United Arab Emirates' largest bank recorded a net profit of 3.08 billion dirhams ($838.60 million) in the fourth quarter, compared with 2.93 billion year ago.
Dubai's main share index edged up 0.1%, ending four days of losses as National Central Cooling Co (Tabreed) jumped 6.3%, its biggest intraday gain since December 2018.
Tabreed's annual profit rose more than 10% to 472.5 million dirhams and proposed a cash dividend of 10.5 fils per share for the year 2019.
Stock markets in the United Arab Emirates rose on Tuesday as positive corporate earnings outweighed pessimism about the coronavirus outbreak in China, while other major markets extended losses.
The Abu Dhabi index ended 0.2% hhigher, supported by a 7.2% surge in International Holding Company before its board meeting on Wednesday to approve fiscal-year earnings.
First Abu Dhabi Bank added 0.3% after posting a 5% increase in fourth-quarter profit. The United Arab Emirates' largest bank recorded a net profit of 3.08 billion dirhams ($838.60 million) in the fourth quarter, compared with 2.93 billion year ago.
Dubai's main share index edged up 0.1%, ending four days of losses as National Central Cooling Co (Tabreed) jumped 6.3%, its biggest intraday gain since December 2018.
Tabreed's annual profit rose more than 10% to 472.5 million dirhams and proposed a cash dividend of 10.5 fils per share for the year 2019.
Oil turns positive after five-day rout as OPEC might act - Reuters
Oil turns positive after five-day rout as OPEC might act - Reuters:
Oil futures on Tuesday broke a five-day losing streak after OPEC sources said the group and its allies might tighten the market amid fears that the coronavirus which has claimed over 100 lives in China, might weigh on oil demand.
Brent crude LCOc1 reversed earlier losses to trade up 18 cents at $59.50 a barrel at 1245 GMT, after having hit a three-month low of $58.50 on Monday. [MKTS/GLOB]
U.S. West Texas Intermediate CLc1 rose 30 cents at $53.44 a barrel, after slipping to its lowest since early October in the previous session. Both contracts are still on track for their worst monthly falls since May.
Oil futures on Tuesday broke a five-day losing streak after OPEC sources said the group and its allies might tighten the market amid fears that the coronavirus which has claimed over 100 lives in China, might weigh on oil demand.
Brent crude LCOc1 reversed earlier losses to trade up 18 cents at $59.50 a barrel at 1245 GMT, after having hit a three-month low of $58.50 on Monday. [MKTS/GLOB]
U.S. West Texas Intermediate CLc1 rose 30 cents at $53.44 a barrel, after slipping to its lowest since early October in the previous session. Both contracts are still on track for their worst monthly falls since May.
Virus panic makes OPEC cat-herding even harder – Breakingviews
Virus panic makes OPEC cat-herding even harder – Breakingviews:
Oil prices are packing a year’s worth of ructions into less than two months. Brent crude futures soared from just above $60 a barrel in early December to $70 a month later, amid supply fears following the U.S. drone strike on Iranian general Qassem Soleimani. They’ve now slumped below $60 on fears of a coronavirus-linked demand implosion – and rendered the job of the producer club that nominally controls oil prices much harder.
The Organization of the Petroleum Exporting Countries had looked to be in control. In early December, Saudi Arabia’s oil minister Prince Abdulaziz bin Salman managed to get the 14 members of OPEC and 10 more allies collectively known as OPEC+ to increase pre-existing cuts amounting to 1.2 million barrels per day to as much as 2.1 million bpd. The unity of purpose reflected concern about a price-sapping period of supply outstripping demand. Even after the cuts, the market could be 0.7 million bpd oversupplied in the first half of 2020, Jefferies reckons.
Still, as Saudi well knows, managing OPEC is like herding cats. There’s no guarantee that producers will do what they say – Nigeria is just one of several perennial agreement-flouters. Russia, the world’s second-largest producer, is already irked at having to pump less, given its budget breaks even with oil prices below $50 a barrel, against $80 for Saudi. Hence December’s cuts were only agreed until March.
Oil prices are packing a year’s worth of ructions into less than two months. Brent crude futures soared from just above $60 a barrel in early December to $70 a month later, amid supply fears following the U.S. drone strike on Iranian general Qassem Soleimani. They’ve now slumped below $60 on fears of a coronavirus-linked demand implosion – and rendered the job of the producer club that nominally controls oil prices much harder.
The Organization of the Petroleum Exporting Countries had looked to be in control. In early December, Saudi Arabia’s oil minister Prince Abdulaziz bin Salman managed to get the 14 members of OPEC and 10 more allies collectively known as OPEC+ to increase pre-existing cuts amounting to 1.2 million barrels per day to as much as 2.1 million bpd. The unity of purpose reflected concern about a price-sapping period of supply outstripping demand. Even after the cuts, the market could be 0.7 million bpd oversupplied in the first half of 2020, Jefferies reckons.
Still, as Saudi well knows, managing OPEC is like herding cats. There’s no guarantee that producers will do what they say – Nigeria is just one of several perennial agreement-flouters. Russia, the world’s second-largest producer, is already irked at having to pump less, given its budget breaks even with oil prices below $50 a barrel, against $80 for Saudi. Hence December’s cuts were only agreed until March.
Barclays sees $2/bbl impact to oil prices as virus fears threaten demand - Reuters
Barclays sees $2/bbl impact to oil prices as virus fears threaten demand - Reuters:
Barclays said on Tuesday oil prices will be impacted by $2 per barrel on the potential economic fallout from the coronavirus outbreak in China.
More than 100 people have died and over 4,000 cases of the new virus have been confirmed in China, leading authorities to increase preventive measures, impose travel restrictions and also extend the Lunar New Year holidays to limit the spread of the virus.
The bank sees a $2 per barrel downside to their full-year Brent and WTI forecasts of $62 per barrel and $57 per barrel, respectively.
Compounding the effects of the spillover to economic growth from China and the region, Barclays expects transitory oil demand erosion of about 0.6-0.8 million barrels per day (mb/d) in the first quarter of this year, or 0.2 mb/d for the full year.
Barclays said on Tuesday oil prices will be impacted by $2 per barrel on the potential economic fallout from the coronavirus outbreak in China.
More than 100 people have died and over 4,000 cases of the new virus have been confirmed in China, leading authorities to increase preventive measures, impose travel restrictions and also extend the Lunar New Year holidays to limit the spread of the virus.
The bank sees a $2 per barrel downside to their full-year Brent and WTI forecasts of $62 per barrel and $57 per barrel, respectively.
Compounding the effects of the spillover to economic growth from China and the region, Barclays expects transitory oil demand erosion of about 0.6-0.8 million barrels per day (mb/d) in the first quarter of this year, or 0.2 mb/d for the full year.
#Qatar Emir Replaces Prime Minister With Close Aide - Bloomberg
Qatar Emir Replaces Prime Minister With Close Aide - Bloomberg:
Qatar’s prime minister has resigned and been replaced by a close aide of the emir.
Khalid bin Khalifa Al Thani, who was the head of the emir’s court, will succeed Abdullah bin Naser bin Khalifa, the state-run Qatar News Agency reported on Tuesday. No reason was given for the previous prime minister’s resignation.
Abdullah bin Naser bin Khalifa had been premier since the current emir, Sheikh Tamim bin Hamad Al Thani assumed power in June 2013.
The appointment comes at a delicate time for Qatar. A three-year standoff with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt continues to cast a pall over regional politics, despite some signs late last year that the countries were moving closer to rapprochement.
Qatar’s prime minister has resigned and been replaced by a close aide of the emir.
Khalid bin Khalifa Al Thani, who was the head of the emir’s court, will succeed Abdullah bin Naser bin Khalifa, the state-run Qatar News Agency reported on Tuesday. No reason was given for the previous prime minister’s resignation.
Abdullah bin Naser bin Khalifa had been premier since the current emir, Sheikh Tamim bin Hamad Al Thani assumed power in June 2013.
The appointment comes at a delicate time for Qatar. A three-year standoff with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt continues to cast a pall over regional politics, despite some signs late last year that the countries were moving closer to rapprochement.
#Lebanon News: Cabinet to Decide on Debt Crisis Bond Payment - Bloomberg
Lebanon News: Cabinet to Decide on Debt Crisis Bond Payment - Bloomberg:
Crisis-ridden Lebanon finally has a government again and top of its agenda will be whether to repay a Eurobond maturing in six weeks.
After lawmakers passed the 2020 budget on Monday, the new cabinet’s next major decision will be what to do about the $1.2 billion of bonds due on March 9.
The team of 20, led by Prime Minister Hassan Diab, a computing-engineering professor, will meet this week with nationwide protests continuing, the central bank’s foreign reserves falling and the diaspora inflows that have kept the economy afloat for decades slowing to a trickle. Government debt stands at more than 150% of gross domestic product, one of the highest levels for any country.
For most investors, it’s a question of when, not if, Lebanon defaults on its debt, which includes more than $30 billion of Eurobonds. Around a third are held by foreigners, with the rest owned by the central bank and local lenders, according to Oxford Economics. Lebanese banks also have billions of dollars of foreign-currency deposits parked at the central bank.
Crisis-ridden Lebanon finally has a government again and top of its agenda will be whether to repay a Eurobond maturing in six weeks.
After lawmakers passed the 2020 budget on Monday, the new cabinet’s next major decision will be what to do about the $1.2 billion of bonds due on March 9.
The team of 20, led by Prime Minister Hassan Diab, a computing-engineering professor, will meet this week with nationwide protests continuing, the central bank’s foreign reserves falling and the diaspora inflows that have kept the economy afloat for decades slowing to a trickle. Government debt stands at more than 150% of gross domestic product, one of the highest levels for any country.
For most investors, it’s a question of when, not if, Lebanon defaults on its debt, which includes more than $30 billion of Eurobonds. Around a third are held by foreigners, with the rest owned by the central bank and local lenders, according to Oxford Economics. Lebanese banks also have billions of dollars of foreign-currency deposits parked at the central bank.
Oil steadies after multi-day rout over China virus - Reuters
Oil steadies after multi-day rout over China virus - Reuters:
Oil futures steadied on Tuesday after five days of declines on concerns a virus outbreak in China could dent demand for oil, with some analysts suggesting the falls may be overdone.
Brent crude LCOc1 was down 4 cents at $59.28 at around 0540 GMT. On Monday it hit a three-month low of $58.50, as the virus outbreak triggered a global selloff of riskier assets.
U.S. West Texas Intermediate CLc1 was up 4 cents at $53.18, having spent most of Tuesday in negative territory after slipping to its lowest since early October in the previous session at $52.13.
The United States warned against travel to China and other countries put out advisories as the death toll from the spreading coronavirus outbreak rose to more than 100 people and left millions of Chinese stranded during the biggest holiday of the year.
Oil futures steadied on Tuesday after five days of declines on concerns a virus outbreak in China could dent demand for oil, with some analysts suggesting the falls may be overdone.
Brent crude LCOc1 was down 4 cents at $59.28 at around 0540 GMT. On Monday it hit a three-month low of $58.50, as the virus outbreak triggered a global selloff of riskier assets.
U.S. West Texas Intermediate CLc1 was up 4 cents at $53.18, having spent most of Tuesday in negative territory after slipping to its lowest since early October in the previous session at $52.13.
The United States warned against travel to China and other countries put out advisories as the death toll from the spreading coronavirus outbreak rose to more than 100 people and left millions of Chinese stranded during the biggest holiday of the year.
UPDATE 1-First #AbuDhabi Bank reports rise in Q4 profit, and impairments - Reuters
UPDATE 1-First Abu Dhabi Bank reports rise in Q4 profit, and impairments - Reuters:
First Abu Dhabi Bank, the biggest lender in the United Arab Emirates (UAE), reported a 5% rise in quarterly profit due to an increase in non-interest income, but like other rivals also saw a steep jump in impairment charges.
UAE lenders are seeing rising bad debt charges as they navigate a property downturn notably in Dubai, which has hit contractors and real estate firms.
Emirates NBD saw impairments rise more than three times, partly due to bad debt charges at its newly acquired Turkish unit, DenizBank, while similar charges climbed 48% at Abu Dhabi Commercial Bank.
Dubai house prices have fallen by at least a quarter since mid-2014, the peak from its recovery from the 2009 debt crisis, and the end of this latest bout of weakness is not yet near.
First Abu Dhabi Bank, the biggest lender in the United Arab Emirates (UAE), reported a 5% rise in quarterly profit due to an increase in non-interest income, but like other rivals also saw a steep jump in impairment charges.
UAE lenders are seeing rising bad debt charges as they navigate a property downturn notably in Dubai, which has hit contractors and real estate firms.
Emirates NBD saw impairments rise more than three times, partly due to bad debt charges at its newly acquired Turkish unit, DenizBank, while similar charges climbed 48% at Abu Dhabi Commercial Bank.
Dubai house prices have fallen by at least a quarter since mid-2014, the peak from its recovery from the 2009 debt crisis, and the end of this latest bout of weakness is not yet near.
MIDEAST STOCKS-Gulf stocks rebound in early trade on Tuesday | Nasdaq
MIDEAST STOCKS-Gulf stocks rebound in early trade on Tuesday | Nasdaq:
Major Gulf stock markets rebounded in early trade on Tuesday as robust financial results outweighed pessimism over the impact of the coronavirus outbreak in China.
Oil prices fell for a sixth session on Tuesday on concern the spread of the virus could weaken economic growth and demand for oil. But Saudi Energy Minister Prince Abdulaziz bin Salman said the market impact was "primarily driven by psychological factors and extremely negative expectations ... despite its very limited impact on global oil demand."
In Abu Dhabi, the index .ADI rose 0.6% as the biggest bank in the United Arab Emirates, First Abu Dhabi Bank FAB, advanced 0.8% after posting a 5% increase in fourth-quarter profit. Emirates Telecom Group ETISALAT.AD was up 0.9%.
Dubai's index .DFMGI edged up 0.1% after four days of declines. Dubai Islamic Bank DISB.DU gained 0.4% and National Central Cooling Co (Tabreed) TABR.DU jumped 5.3%.
Major Gulf stock markets rebounded in early trade on Tuesday as robust financial results outweighed pessimism over the impact of the coronavirus outbreak in China.
Oil prices fell for a sixth session on Tuesday on concern the spread of the virus could weaken economic growth and demand for oil. But Saudi Energy Minister Prince Abdulaziz bin Salman said the market impact was "primarily driven by psychological factors and extremely negative expectations ... despite its very limited impact on global oil demand."
In Abu Dhabi, the index .ADI rose 0.6% as the biggest bank in the United Arab Emirates, First Abu Dhabi Bank FAB, advanced 0.8% after posting a 5% increase in fourth-quarter profit. Emirates Telecom Group ETISALAT.AD was up 0.9%.
Dubai's index .DFMGI edged up 0.1% after four days of declines. Dubai Islamic Bank DISB.DU gained 0.4% and National Central Cooling Co (Tabreed) TABR.DU jumped 5.3%.
Monday, 27 January 2020
Oil sinks to three-month lows as coronavirus raises demand fears - Reuters
Oil sinks to three-month lows as coronavirus raises demand fears - Reuters:
Crude futures dropped 2% to three-month lows on Monday as the death toll from China’s coronavirus grew, curtailing travel and fueling expectations of slowing oil demand.
Brent crude LCOc1 settled at $59.32 a barrel, losing $1.37, or 2.3%, its lowest since Oct. 21. U.S. crude CLc1 settled at $53.14 a barrel, was down $1.05, or 1.9%, its lowest since Oct. 2.
Global stock exchanges, which oil prices tend to follow, also sank as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.[MKTS/GLOB]
The death toll from the coronavirus rose to 81 and the Chinese government extended the Lunar New Year holiday to Feb. 2, trying to keep as many people as possible at home to prevent the virus from spreading further.
Crude futures dropped 2% to three-month lows on Monday as the death toll from China’s coronavirus grew, curtailing travel and fueling expectations of slowing oil demand.
Brent crude LCOc1 settled at $59.32 a barrel, losing $1.37, or 2.3%, its lowest since Oct. 21. U.S. crude CLc1 settled at $53.14 a barrel, was down $1.05, or 1.9%, its lowest since Oct. 2.
Global stock exchanges, which oil prices tend to follow, also sank as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.[MKTS/GLOB]
The death toll from the coronavirus rose to 81 and the Chinese government extended the Lunar New Year holiday to Feb. 2, trying to keep as many people as possible at home to prevent the virus from spreading further.
Wary of Iran, Gulf Arab states seen shrugging off new Lebanese government - Reuters
Wary of Iran, Gulf Arab states seen shrugging off new Lebanese government - Reuters:
Gulf Arab states have long channeled funds into Lebanon’s fragile economy but its rich neighbors, alarmed by the rising influence of their arch-rival Iran’s ally Hezbollah, now appear loath to help ease Beirut’s worst financial crisis in decades.
Prime Minister Hassan Diab, whose cabinet took office last week with the backing of the Shi’ite Muslim Hezbollah movement and its partners, said his first trip abroad would be to the Arab region, particularly the Sunni-dominated Gulf monarchies.
He is unlikely to be received warmly.
None of the Gulf Arab countries, allies of Washington, has officially commented on the new government formed after weeks of wrangling nor extended public invitations to Diab.
Gulf Arab states have long channeled funds into Lebanon’s fragile economy but its rich neighbors, alarmed by the rising influence of their arch-rival Iran’s ally Hezbollah, now appear loath to help ease Beirut’s worst financial crisis in decades.
Prime Minister Hassan Diab, whose cabinet took office last week with the backing of the Shi’ite Muslim Hezbollah movement and its partners, said his first trip abroad would be to the Arab region, particularly the Sunni-dominated Gulf monarchies.
He is unlikely to be received warmly.
None of the Gulf Arab countries, allies of Washington, has officially commented on the new government formed after weeks of wrangling nor extended public invitations to Diab.
Oil-Storage Demand at Top Mideast Hub Drives Brooge Expansion - Bloomberg
Oil-Storage Demand at Top Mideast Hub Drives Brooge Expansion - Bloomberg:
Brooge Petroleum and Gas Investment Co. plans to expand its crude-storage capacity six-fold at the Middle Eastern port of Fujairah to meet “huge” demand at the busiest oil-trading hub in the region.
The United Arab Emirates-based business will sign contracts by the end of the first quarter, or soon after, to lease out the additional capacity, Chief Executive Officer Nicolaas Paardenkooper said in an interview. It will complete a study for the project over the same period and may start construction work by the end of 2020.
“The company’s philosophy has always been to get contracts in place first and then get the land and then start construction,” Paardenkooper said. “We’ve never built on speculation.”
Brooge’s planned expansion would more than double the amount of crude traders could store at Fujairah, the world’s second-largest refueling port for ships. State-run Abu Dhabi National Oil Co. has capacity nearby that it too is expanding many times over; Adnoc’s plans include the construction of crude-storage tanks beneath Fujairah’s mountains.
Brooge Petroleum and Gas Investment Co. plans to expand its crude-storage capacity six-fold at the Middle Eastern port of Fujairah to meet “huge” demand at the busiest oil-trading hub in the region.
The United Arab Emirates-based business will sign contracts by the end of the first quarter, or soon after, to lease out the additional capacity, Chief Executive Officer Nicolaas Paardenkooper said in an interview. It will complete a study for the project over the same period and may start construction work by the end of 2020.
“The company’s philosophy has always been to get contracts in place first and then get the land and then start construction,” Paardenkooper said. “We’ve never built on speculation.”
Brooge’s planned expansion would more than double the amount of crude traders could store at Fujairah, the world’s second-largest refueling port for ships. State-run Abu Dhabi National Oil Co. has capacity nearby that it too is expanding many times over; Adnoc’s plans include the construction of crude-storage tanks beneath Fujairah’s mountains.
#Dubai's Emirates NBD annual profit surges 44%, tops forecast - Reuters
Dubai's Emirates NBD annual profit surges 44%, tops forecast - Reuters:
Dubai’s biggest lender Emirates NBD on Monday posted a 44% surge in 2019 net profit, underpinned by a double-digit growth in net-interest income, stronger loan growth and gains from the listing of its unit Network International.
The bank’s full-year net profit came in at 14.5 billion dirham ($3.95 billion), compared with 10.04 billion dirhams last year, higher than 13.55 billion dirhams as forecast by analysts in a Refintiv poll.
The company said its profit grew only 1%, excluding gains from the listing of digital payment provider Network International in London last year.
Loans increased 33% to 437 billion dirhams, including contribution from newly acquired Turkish lender DenizBank, Emirates said, adding that its non-interest income surged 38% due to higher foreign exchange and credit card-related income.
Dubai’s biggest lender Emirates NBD on Monday posted a 44% surge in 2019 net profit, underpinned by a double-digit growth in net-interest income, stronger loan growth and gains from the listing of its unit Network International.
The bank’s full-year net profit came in at 14.5 billion dirham ($3.95 billion), compared with 10.04 billion dirhams last year, higher than 13.55 billion dirhams as forecast by analysts in a Refintiv poll.
The company said its profit grew only 1%, excluding gains from the listing of digital payment provider Network International in London last year.
Loans increased 33% to 437 billion dirhams, including contribution from newly acquired Turkish lender DenizBank, Emirates said, adding that its non-interest income surged 38% due to higher foreign exchange and credit card-related income.
India wants to delink #Qatar gas supply deals from crude; Qatar says no - Reuters
India wants to delink Qatar gas supply deals from crude; Qatar says no - Reuters:
India wants Qatar to delink the price of its imported gas from that of oil under long-term deals, India’s oil minister said on Monday, to make supplies cheaper for price-sensitive customers after a sharp fall in spot prices of the cleaner fuel.
Liquefied natural gas (LNG) sourced from the spot market costs about half of that under the long-term deals.
India in 1999 signed a long-term LNG deal with Qatar for supplies from 2004, with volumes gradually rising to 7.5 million tonnes per annum (mtpa).
The price of gas under the long-duration deal was linked to the price of crude, as oil markets were well developed compared with that of gas.
India wants Qatar to delink the price of its imported gas from that of oil under long-term deals, India’s oil minister said on Monday, to make supplies cheaper for price-sensitive customers after a sharp fall in spot prices of the cleaner fuel.
Liquefied natural gas (LNG) sourced from the spot market costs about half of that under the long-term deals.
India in 1999 signed a long-term LNG deal with Qatar for supplies from 2004, with volumes gradually rising to 7.5 million tonnes per annum (mtpa).
The price of gas under the long-duration deal was linked to the price of crude, as oil markets were well developed compared with that of gas.
Emirates Islamic's full-year net profit exceeds AED1bn mark for first time - Arabianbusiness
Emirates Islamic's full-year net profit exceeds AED1bn mark for first time - Arabianbusiness:
UAE-based Emirates Islamic has reported net profit of AED1.06 billion ($272 million) for the full-year, surpassing the one billion dirham mark for the first time.
Net profit for the year increased by 15 percent while total income for 2019 increased by 8 percent to AED2.7 billion.
Total assets at AED64.8 billion increased by 11 percent from end-2018 while customer deposits at AED45.3 billion increased by 9 percent in the same period.
Current and saving accounts balances represent 63 percent of total customer deposits, the bank said in a statement.
UAE-based Emirates Islamic has reported net profit of AED1.06 billion ($272 million) for the full-year, surpassing the one billion dirham mark for the first time.
Net profit for the year increased by 15 percent while total income for 2019 increased by 8 percent to AED2.7 billion.
Total assets at AED64.8 billion increased by 11 percent from end-2018 while customer deposits at AED45.3 billion increased by 9 percent in the same period.
Current and saving accounts balances represent 63 percent of total customer deposits, the bank said in a statement.
Oil falls 3% to three-month low as China virus threatens demand - Reuters
Oil falls 3% to three-month low as China virus threatens demand - Reuters:
Crude prices dropped 3% to three-month lows on Monday as the death toll from China’s coronavirus grew and more businesses were forced to shut down, fuelling expectations of slowing oil demand.
Brent crude LCOc1 was down $1.77 a barrel, or 2.9%, at $58.92 at 11 a.m. EST (1600 GMT). U.S. crude CLc1 was down $1.51, or 2.8%, at $52.68 a barrel.
Both benchmarks had earlier fallen by more than 3% and were at their lowest since October.
Global stock exchanges, which oil tends follows, also sank as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.
Crude prices dropped 3% to three-month lows on Monday as the death toll from China’s coronavirus grew and more businesses were forced to shut down, fuelling expectations of slowing oil demand.
Brent crude LCOc1 was down $1.77 a barrel, or 2.9%, at $58.92 at 11 a.m. EST (1600 GMT). U.S. crude CLc1 was down $1.51, or 2.8%, at $52.68 a barrel.
Both benchmarks had earlier fallen by more than 3% and were at their lowest since October.
Global stock exchanges, which oil tends follows, also sank as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.
Revealed: the importance of Emaar to #Dubai's property market - Arabianbusiness
Revealed: the importance of Emaar to Dubai's property market - Arabianbusiness:
Emaar Properties continued to dominate the Dubai property market in terms of the number of off-plan sales transactions registered in 2019, according to new research.
Data analysed by Data Finder, the real estate insights and data platform under the Property Finder Group, showed that Dubai’s largest listed developer registered 8,600 off-plan property sales overall in 2019, an increase of 260 percent compared to 2018.
The developer commanded a market share of 36 percent.
Emaar’s joint venture with Meraas, Dubai Hills Estate, registered 1,455 off-plan transactions, a 67 percent annual increase in sales transactions and 6 percent of the off-plan market.
Emaar Properties continued to dominate the Dubai property market in terms of the number of off-plan sales transactions registered in 2019, according to new research.
Data analysed by Data Finder, the real estate insights and data platform under the Property Finder Group, showed that Dubai’s largest listed developer registered 8,600 off-plan property sales overall in 2019, an increase of 260 percent compared to 2018.
The developer commanded a market share of 36 percent.
Emaar’s joint venture with Meraas, Dubai Hills Estate, registered 1,455 off-plan transactions, a 67 percent annual increase in sales transactions and 6 percent of the off-plan market.
#SaudiArabia, #UAE caution oil market against gloom over China virus - Reuters
Saudi Arabia, UAE caution oil market against gloom over China virus - Reuters:
Saudi Arabia, the world’s top oil exporter, on Monday urged caution against “gloomy expectations” regarding the possible impact of the spread of the coronavirus on the global economy and oil demand.
The death toll from a coronavirus outbreak in China rose to 81 on Monday with more than 2,700 infected as health authorities around the world stepped up screening of passengers from China.
Crude prices fell about 3% on Monday as the rising number of cases of the coronavirus and China’s city lockdowns and extension of its Lunar New Year holiday deepened concerns over oil demand. [O/R]
But Saudi Energy Minister Prince Abdulaziz bin Salman said the impact being seen on oil and other markets was “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand.”
Saudi Arabia, the world’s top oil exporter, on Monday urged caution against “gloomy expectations” regarding the possible impact of the spread of the coronavirus on the global economy and oil demand.
The death toll from a coronavirus outbreak in China rose to 81 on Monday with more than 2,700 infected as health authorities around the world stepped up screening of passengers from China.
Crude prices fell about 3% on Monday as the rising number of cases of the coronavirus and China’s city lockdowns and extension of its Lunar New Year holiday deepened concerns over oil demand. [O/R]
But Saudi Energy Minister Prince Abdulaziz bin Salman said the impact being seen on oil and other markets was “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand.”
Oil drops below $60 as China virus stokes demand concern - Reuters
Oil drops below $60 as China virus stokes demand concern - Reuters:
Crude prices extended declines on Monday, dropping below $60 for the first time in nearly three months, as the death toll from China’s coronavirus rose and more businesses were forced to shut down, fuelling expectations of slowing oil demand.
Brent crude LCOc1 was down $1.51 a barrel, or 2.5%, to $59.18 at 1254 GMT, its lowest since late October and the biggest intra-day fall since Jan. 8.
U.S. crude CLc1 was down $1.37, or 2.53%, at $52.82. Both contracts had earlier fallen by more than 3%.
Global stock exchanges also fell as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.
Crude prices extended declines on Monday, dropping below $60 for the first time in nearly three months, as the death toll from China’s coronavirus rose and more businesses were forced to shut down, fuelling expectations of slowing oil demand.
Brent crude LCOc1 was down $1.51 a barrel, or 2.5%, to $59.18 at 1254 GMT, its lowest since late October and the biggest intra-day fall since Jan. 8.
U.S. crude CLc1 was down $1.37, or 2.53%, at $52.82. Both contracts had earlier fallen by more than 3%.
Global stock exchanges also fell as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, such as the Japanese yen and Treasury notes.
MIDEAST STOCKS- #Saudi leads Gulf lower as China virus fears mount - Reuters
MIDEAST STOCKS-Saudi leads Gulf lower as China virus fears mount - Reuters:
Middle East stocks slipped, with Saudi
Arabia hardest hit on Monday, mirroring drops in oil prices and
global shares on concerns about the impact of the coronavirus
outbreak in China.
Saudi Arabia's energy minister said it is closely monitoring
developments in global oil markets resulting from "gloomy
expectations" regarding the possible impact on the Chinese and
global economy, as well as on the oil market.
The death toll in China has risen to 81 and the virus spread
to more than 10 countries, including France, Japan and the
United States.
The total number of confirmed cases in China rose about 30%
from the previous day, to 2,744. But some experts suspect the
number of infected people is much higher.
Saudi Arabia's benchmark index tumbled 1.8%,
extending losses for a fifth-day. National Commercial Bank
slid 3.1%, while Al Rajhi Bank fell 1.2%.
Middle East stocks slipped, with Saudi
Arabia hardest hit on Monday, mirroring drops in oil prices and
global shares on concerns about the impact of the coronavirus
outbreak in China.
Saudi Arabia's energy minister said it is closely monitoring
developments in global oil markets resulting from "gloomy
expectations" regarding the possible impact on the Chinese and
global economy, as well as on the oil market.
The death toll in China has risen to 81 and the virus spread
to more than 10 countries, including France, Japan and the
United States.
The total number of confirmed cases in China rose about 30%
from the previous day, to 2,744. But some experts suspect the
number of infected people is much higher.
Saudi Arabia's benchmark index tumbled 1.8%,
extending losses for a fifth-day. National Commercial Bank
slid 3.1%, while Al Rajhi Bank fell 1.2%.
Gas discovered in #Sharjah, first in 37 years | ZAWYA MENA Edition
Gas discovered in Sharjah, first in 37 years | ZAWYA MENA Edition:
The Sharjah National Oil Corporation and its Italian partner ENI, have announced a successful new discovery of natural gas and condensate onshore at the Mahani field in Sharjah.
The discovery at Mahani-1 exploration well, with flow rates of up to 50 million standard cubic feet per day, comes within the first year of the partnership and represents the first onshore discovery of gas in the Emirate since the early 1980’s. Mahani-1 well was drilled at a total depth of 14,597 feet, which resulted in the discovery of gas with the associated capacitors in the formation of the Thumama. The size of the discovery will be estimated in time in light of expectations for further evaluation and development.
The Mahani-1 exploration well, located in the Area B Concession, is the first exploration well drilled by SNOC following the acquisition of a new 3D seismic survey covering the territory, the national energy company said in a statement. SNOC, which is the operator of Area B, and ENI both hold a 50% stake in the discovery as part of a Concession Agreement that was signed in early 2019. The two companies are also partners in the Concession Areas A and C, also located onshore Sharjah.
The Sharjah National Oil Corporation and its Italian partner ENI, have announced a successful new discovery of natural gas and condensate onshore at the Mahani field in Sharjah.
The discovery at Mahani-1 exploration well, with flow rates of up to 50 million standard cubic feet per day, comes within the first year of the partnership and represents the first onshore discovery of gas in the Emirate since the early 1980’s. Mahani-1 well was drilled at a total depth of 14,597 feet, which resulted in the discovery of gas with the associated capacitors in the formation of the Thumama. The size of the discovery will be estimated in time in light of expectations for further evaluation and development.
The Mahani-1 exploration well, located in the Area B Concession, is the first exploration well drilled by SNOC following the acquisition of a new 3D seismic survey covering the territory, the national energy company said in a statement. SNOC, which is the operator of Area B, and ENI both hold a 50% stake in the discovery as part of a Concession Agreement that was signed in early 2019. The two companies are also partners in the Concession Areas A and C, also located onshore Sharjah.
#Saudi Newcastle punt is not as silly as it sounds – Breakingviews
Saudi Newcastle punt is not as silly as it sounds – Breakingviews:
Saudi Arabia’s enthusiasm for Newcastle United is less silly than it sounds. Riyadh’s wealth fund is mulling a deal to buy the English Premier League soccer club for around 340 million pounds. There are worse ways to spend the $30 billion the kingdom raised selling 1.5% of oil giant Saudi Aramco.
There are plenty of reasons to be sceptical about the oil-rich country replacing retail tycoon Mike Ashley as Newcastle’s owner. Its $300 billion sovereign wealth vehicle, the Public Investment Fund, has made a ropey start spearheading Crown Prince Mohammed bin Salman’s plan to diversify Saudi Arabia away from its dependence on the black stuff. Part of the $45 billion it pledged to the SoftBank-run Vision Fund financed tech dud WeWork, while an investment in Uber Technologies has been on a roller coaster since the ride-hailing firm’s initial public offering. Splashing out on a soccer club that hasn’t been a serious force in the English Premier League since the 1990s looks like another ego trip.
Still, the mooted valuation implies an enterprise value of just under 2 times Newcastle’s revenue in the year to June 2018. Manchester City and Manchester United, the UK’s biggest clubs by revenue, are valued at more than 4 times. The black-and-white shirted team’s poor performance on the pitch partly explains the club’s depressed price. Still, its EBITDA was the seventh highest in the Premier League and the Magpies attracted the eighth-largest crowds, according to Swiss Ramble, a football analyst.
Saudi Arabia’s enthusiasm for Newcastle United is less silly than it sounds. Riyadh’s wealth fund is mulling a deal to buy the English Premier League soccer club for around 340 million pounds. There are worse ways to spend the $30 billion the kingdom raised selling 1.5% of oil giant Saudi Aramco.
There are plenty of reasons to be sceptical about the oil-rich country replacing retail tycoon Mike Ashley as Newcastle’s owner. Its $300 billion sovereign wealth vehicle, the Public Investment Fund, has made a ropey start spearheading Crown Prince Mohammed bin Salman’s plan to diversify Saudi Arabia away from its dependence on the black stuff. Part of the $45 billion it pledged to the SoftBank-run Vision Fund financed tech dud WeWork, while an investment in Uber Technologies has been on a roller coaster since the ride-hailing firm’s initial public offering. Splashing out on a soccer club that hasn’t been a serious force in the English Premier League since the 1990s looks like another ego trip.
Still, the mooted valuation implies an enterprise value of just under 2 times Newcastle’s revenue in the year to June 2018. Manchester City and Manchester United, the UK’s biggest clubs by revenue, are valued at more than 4 times. The black-and-white shirted team’s poor performance on the pitch partly explains the club’s depressed price. Still, its EBITDA was the seventh highest in the Premier League and the Magpies attracted the eighth-largest crowds, according to Swiss Ramble, a football analyst.
Natural Gas Price Drop to Cut Coal Market Share for Power in EU - Bloomberg
Natural Gas Price Drop to Cut Coal Market Share for Power in EU - Bloomberg:
Cheaper natural gas prices this year are likely to cement Europe’s shift away from coal as a fuel for producing power.
Abnormally mild winter weather has cut demand for the fuel as a flood of new supplies entered the world’s biggest gas market. That along with higher costs for carbon-emissions allowances has tilted the economics of generating electricity away from coal and toward using more gas.
The shift has been welcomed by policy makers led by German Chancellor Angela Merkel’s administration, which is looking at ways to accelerate the closure of its coal industry. Its priority is keeping power flowing while reaching ambitious pollution targets in the Paris Agreement on climate change. A lower cost for gas helps along that process.
Cheaper natural gas prices this year are likely to cement Europe’s shift away from coal as a fuel for producing power.
Abnormally mild winter weather has cut demand for the fuel as a flood of new supplies entered the world’s biggest gas market. That along with higher costs for carbon-emissions allowances has tilted the economics of generating electricity away from coal and toward using more gas.
The shift has been welcomed by policy makers led by German Chancellor Angela Merkel’s administration, which is looking at ways to accelerate the closure of its coal industry. Its priority is keeping power flowing while reaching ambitious pollution targets in the Paris Agreement on climate change. A lower cost for gas helps along that process.
Oil Traders Made Billions in 2019 as Conflict Shook the Market - Bloomberg
Oil Traders Made Billions in 2019 as Conflict Shook the Market - Bloomberg:
The world’s largest energy traders enjoyed one of their best ever years in 2019 as pipeline outages, dramatic changes in ship fuel regulations and Middle East conflicts shook up the global oil market.
The bonanza extended beyond the independent traders like Vitol Group and Trafigura Group Ltd. to the in-house units of oil giants Royal Dutch Shell Plc, Total SA and BP Plc, which made billions of dollars in profits.
“By all accounts, 2019 was among the best years ever for the energy trading industry,” said Marco Dunand, the chief executive of Mercuria Energy Group Ltd., one of the five largest independent oil traders.
For the independents, the bumper year all but guarantees a fat bonus season for a group of companies that’s largely owned by their executives and senior staff. For the European oil companies, the trading boom will help Shell, BP and Total to weather a tough year in other parts of their business.
The world’s largest energy traders enjoyed one of their best ever years in 2019 as pipeline outages, dramatic changes in ship fuel regulations and Middle East conflicts shook up the global oil market.
The bonanza extended beyond the independent traders like Vitol Group and Trafigura Group Ltd. to the in-house units of oil giants Royal Dutch Shell Plc, Total SA and BP Plc, which made billions of dollars in profits.
“By all accounts, 2019 was among the best years ever for the energy trading industry,” said Marco Dunand, the chief executive of Mercuria Energy Group Ltd., one of the five largest independent oil traders.
For the independents, the bumper year all but guarantees a fat bonus season for a group of companies that’s largely owned by their executives and senior staff. For the European oil companies, the trading boom will help Shell, BP and Total to weather a tough year in other parts of their business.
How Muddy Waters Is Hammering Indian Billionaire’s NMC Health - Bloomberg
How Muddy Waters Is Hammering Indian Billionaire’s NMC Health - Bloomberg:
After seeing its market value soar to more than $10 billion less than two years ago, NMC Health Plc is now struggling to cling on to investors. The Middle Eastern hospital operator, founded by billionaire Bavaguthu Raghuram Shetty, is in the spotlight after Carson Block’s Muddy Waters Capital claimed it’s understating debt and overstating cash. Shares in the firm and one of its sister companies have slumped.
The accusations in a Dec. 17 report, which NMC denies, have sent the London-listed firm’s market value plummeting 48% to 2.8 billion pounds ($3.7 billion) and wiped $1.5 billion off the Shetty family’s fortune.
Trading in the London-listed company has surged to an average of almost 2.5 million shares a day, from around 560,000 in the preceding three months. Its share price has fallen 24% this year to 13.48 pounds.
After seeing its market value soar to more than $10 billion less than two years ago, NMC Health Plc is now struggling to cling on to investors. The Middle Eastern hospital operator, founded by billionaire Bavaguthu Raghuram Shetty, is in the spotlight after Carson Block’s Muddy Waters Capital claimed it’s understating debt and overstating cash. Shares in the firm and one of its sister companies have slumped.
The accusations in a Dec. 17 report, which NMC denies, have sent the London-listed firm’s market value plummeting 48% to 2.8 billion pounds ($3.7 billion) and wiped $1.5 billion off the Shetty family’s fortune.
Trading in the London-listed company has surged to an average of almost 2.5 million shares a day, from around 560,000 in the preceding three months. Its share price has fallen 24% this year to 13.48 pounds.
Lull in U.S.-Turkey Spats Seen as a ‘Window’ for Istanbul Stocks - Bloomberg
Lull in U.S.-Turkey Spats Seen as a ‘Window’ for Istanbul Stocks - Bloomberg:
The sometimes strained relationship between Ankara and Washington may be enjoying a period of calm, giving Istanbul stocks “a window of opportunity” to gain in 2020, said one of Turkey’s best-performing equity fund managers.
A steady stream of negative headlines testing the alliance has stopped since Iran-U.S. tensions threatened to escalate into conflict. It seems that the crisis has been good in reducing relative risks attached to Turkey’s market, said Haydar Acun, the managing partner at Marmara Capital in Istanbul.
A series of clashes with the U.S. in recent years culminated in the fallout from Turkey’s decision to purchase a Russian missile defense system that started arriving in July. Even so, a cordial personal relationship between presidents Donald Trump and Recep Tayyip Erdogan has survived the disputes. And while plans for parts of a battery of U.S. sanctions against Turkey have progressed, the punitive measures have yet to be imposed.
The sometimes strained relationship between Ankara and Washington may be enjoying a period of calm, giving Istanbul stocks “a window of opportunity” to gain in 2020, said one of Turkey’s best-performing equity fund managers.
A steady stream of negative headlines testing the alliance has stopped since Iran-U.S. tensions threatened to escalate into conflict. It seems that the crisis has been good in reducing relative risks attached to Turkey’s market, said Haydar Acun, the managing partner at Marmara Capital in Istanbul.
A series of clashes with the U.S. in recent years culminated in the fallout from Turkey’s decision to purchase a Russian missile defense system that started arriving in July. Even so, a cordial personal relationship between presidents Donald Trump and Recep Tayyip Erdogan has survived the disputes. And while plans for parts of a battery of U.S. sanctions against Turkey have progressed, the punitive measures have yet to be imposed.
#AbuDhabi Commercial Bank Q4 profit drops 16% on impairment charges - Reuters
Abu Dhabi Commercial Bank Q4 profit drops 16% on impairment charges - Reuters:
Abu Dhabi Commercial Bank (ADCB) reported a 16% drop in fourth-quarter profit on Monday, hurt by an increase in impairment charges.
The bank reported a net profit of 1.05 billion dirhams ($285.89 million) for the three months ended Dec. 31, down from 1.24 billion dirhams a year earlier.
ADCB, which last year merged with smaller peers Union National Bank and Al Hilal Bank, recommended a cash dividend of 0.38 dirhams per share.
Abu Dhabi Commercial Bank (ADCB) reported a 16% drop in fourth-quarter profit on Monday, hurt by an increase in impairment charges.
The bank reported a net profit of 1.05 billion dirhams ($285.89 million) for the three months ended Dec. 31, down from 1.24 billion dirhams a year earlier.
ADCB, which last year merged with smaller peers Union National Bank and Al Hilal Bank, recommended a cash dividend of 0.38 dirhams per share.
India needs to re-examine long-term gas pricing with #Qatar: Oil Minister - Reuters
India needs to re-examine long-term gas pricing with Qatar: Oil Minister - Reuters:
India’s Oil Minister Dharmendra Pradhan said on Monday the country needs to look into the pricing mechanism of existing long term gas supply contracts with Qatar.
He was speaking to a gathering of oil company officials in New Delhi.
India imports 8.5 million tonnes of liquefied natural gas (LNG) annually under a long-term supply deal with Qatar.
Spot prices, or current market prices, of LNG have dropped to multi-year lows in January, highlighting the loss being borne by LNG importing countries tied in long term contracts with suppliers.
India’s Oil Minister Dharmendra Pradhan said on Monday the country needs to look into the pricing mechanism of existing long term gas supply contracts with Qatar.
He was speaking to a gathering of oil company officials in New Delhi.
India imports 8.5 million tonnes of liquefied natural gas (LNG) annually under a long-term supply deal with Qatar.
Spot prices, or current market prices, of LNG have dropped to multi-year lows in January, highlighting the loss being borne by LNG importing countries tied in long term contracts with suppliers.
Emirates NBD reveals 44% increase in net profit to record $3.9bn - Arabianbusiness
Emirates NBD reveals 44% increase in net profit to record $3.9bn - Arabianbusiness:
Emirates NBD has revealed a 44 percent increase in net profit to a record AED14.5 billion ($3.9bn) for 2019.
Financial results released through the Dubai Financial Market (DFM) on Monday revealed a 29 percent increase in total income to AED22.4bn ($6.1bn), due to loan growth and higher fee income.
Net interest was up 26 percent due to loan growth, while non-interest income grew 38 percent as a result of higher foreign exchange and credit card related income.
Core operating profit increased by four percent year-on-year, helped by the completion in July of a deal that saw Dubai's biggest lender acquire a 99.85 percent stake in Turkey's DenizBank.
Emirates NBD has revealed a 44 percent increase in net profit to a record AED14.5 billion ($3.9bn) for 2019.
Financial results released through the Dubai Financial Market (DFM) on Monday revealed a 29 percent increase in total income to AED22.4bn ($6.1bn), due to loan growth and higher fee income.
Net interest was up 26 percent due to loan growth, while non-interest income grew 38 percent as a result of higher foreign exchange and credit card related income.
Core operating profit increased by four percent year-on-year, helped by the completion in July of a deal that saw Dubai's biggest lender acquire a 99.85 percent stake in Turkey's DenizBank.
#Kuwait could need $180 billion in financing over the next six years: IMF - Reuters
Kuwait could need $180 billion in financing over the next six years: IMF - Reuters:
The International Monetary Fund estimates that Kuwait’s financing needs will amount to some $180 billion over the next six years given the Gulf state’s “modest” fiscal measures and expectations of lower oil prices.
Kuwait said earlier this month it expects a budget deficit of 9.2 billion dinars ($30.31 billion) in the fiscal year starting on April 1, a deficit increase of 19% compared to the previous year.
“Subdued oil prices and output are weighing on near-term growth prospects and external and fiscal balances,” the Washington-based international crisis lender said in a statement describing its preliminary findings at the end of an official visit to the country.
“The recent run-up in spending has worsened the fiscal position and eroded liquid buffers. Without a course correction, the fiscal and financing challenges would intensify and the window of opportunity to proceed at a measured pace would narrow.”
The International Monetary Fund estimates that Kuwait’s financing needs will amount to some $180 billion over the next six years given the Gulf state’s “modest” fiscal measures and expectations of lower oil prices.
Kuwait said earlier this month it expects a budget deficit of 9.2 billion dinars ($30.31 billion) in the fiscal year starting on April 1, a deficit increase of 19% compared to the previous year.
“Subdued oil prices and output are weighing on near-term growth prospects and external and fiscal balances,” the Washington-based international crisis lender said in a statement describing its preliminary findings at the end of an official visit to the country.
“The recent run-up in spending has worsened the fiscal position and eroded liquid buffers. Without a course correction, the fiscal and financing challenges would intensify and the window of opportunity to proceed at a measured pace would narrow.”
UPDATE 2- #SaudiArabia says watching oil market closely regarding China virus - Reuters
UPDATE 2-Saudi Arabia says watching oil market closely regarding China virus - Reuters:
Saudi Arabia is closely monitoring developments in global oil markets resulting from “gloomy expectations” regarding the possible impact of the coronavirus on the Chinese and global economy, as well as on the oil market’s fundamentals, its energy minister said on Monday.
OPEC and its allies can respond to any impact on the stability of the oil market if needed, Prince Abdulaziz bin Salman said, but added that he was confident the Chinese government and international community could contain the spread of the virus and fully eradicate it.
The minister said the current impact on global markets, including oil and other commodities, was “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand.”
Saudi Arabia is closely monitoring developments in global oil markets resulting from “gloomy expectations” regarding the possible impact of the coronavirus on the Chinese and global economy, as well as on the oil market’s fundamentals, its energy minister said on Monday.
OPEC and its allies can respond to any impact on the stability of the oil market if needed, Prince Abdulaziz bin Salman said, but added that he was confident the Chinese government and international community could contain the spread of the virus and fully eradicate it.
The minister said the current impact on global markets, including oil and other commodities, was “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand.”
Oil slumps further as China virus spreads - Reuters
Oil slumps further as China virus spreads - Reuters:
Crude prices fell more than 2% to multi-month lows on Monday as the rising number of cases of the new coronavirus in China and city lockdowns there deepened concerns over oil demand.
Brent crude LCOc1 fell by $1.28 a barrel, or 2.1%, to $59.41 by 0744 GMT, having earlier dropped to $58.68, its lowest since late October. U.S. crude CLc1 was down by $1.24, or 2.3%, to $52.95, having earlier eased to $52.15, the lowest since early October.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al-Saud, seeking to calm the market, said on Monday he was watching developments in China and said he felt confident the new virus would be contained.
Markets are being “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite (the virus’s) very limited impact on global oil demand,” he said.
Crude prices fell more than 2% to multi-month lows on Monday as the rising number of cases of the new coronavirus in China and city lockdowns there deepened concerns over oil demand.
Brent crude LCOc1 fell by $1.28 a barrel, or 2.1%, to $59.41 by 0744 GMT, having earlier dropped to $58.68, its lowest since late October. U.S. crude CLc1 was down by $1.24, or 2.3%, to $52.95, having earlier eased to $52.15, the lowest since early October.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al-Saud, seeking to calm the market, said on Monday he was watching developments in China and said he felt confident the new virus would be contained.
Markets are being “primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite (the virus’s) very limited impact on global oil demand,” he said.
MIDEAST STOCKS-Poor earnings weigh on #UAE indexes; #Saudi trades flat - Reuters
MIDEAST STOCKS-Poor earnings weigh on UAE indexes; Saudi trades flat - Reuters:
Stock markets in the United Arab Emirates fell on Monday, hurt by a host of disappointing corporate earnings, while Saudi traded flat as energy and real estate shares moved sideways.
The Abu Dhabi index declined 0.8% as First Abu Dhabi Bank, the country’s largest lender, retreated 1.1% ahead of its board meeting to approve financials. Abu Dhabi Commercial Bank fell 1.5% on weak fourth-quarter earnings and a lower annual dividend.
The bank recorded a net profit of 1.05 billion dirhams for the three months to Dec. 31, down from 1.24 billion a year earlier.
Abu Dhabi Commercial Bank recommended a full-year cash dividend of 0.38 dirham per share compared with 0.46 dirham a year ago.
Stock markets in the United Arab Emirates fell on Monday, hurt by a host of disappointing corporate earnings, while Saudi traded flat as energy and real estate shares moved sideways.
The Abu Dhabi index declined 0.8% as First Abu Dhabi Bank, the country’s largest lender, retreated 1.1% ahead of its board meeting to approve financials. Abu Dhabi Commercial Bank fell 1.5% on weak fourth-quarter earnings and a lower annual dividend.
The bank recorded a net profit of 1.05 billion dirhams for the three months to Dec. 31, down from 1.24 billion a year earlier.
Abu Dhabi Commercial Bank recommended a full-year cash dividend of 0.38 dirham per share compared with 0.46 dirham a year ago.
Sunday, 26 January 2020
Germany Probes Deutsche Bank Payments to #Saudi Royal Adviser: FT - Bloomberg
Germany Probes Deutsche Bank Payments to Saudi Royal Adviser: FT - Bloomberg:
German prosecutors are investigating two former Deutsche Bank AG employees for allegedly paying $1.1 million to secure the wealth management business of a senior Saudi royal, the Financial Times reported.
The money transfers were arranged in 2011 and 2012, along with other perks, including an internship and a seminar at a Swiss ski resort, according to the results of an international probe, seen by the Financial Times.
The lender conducted its probe between 2014 and 2016, leading to the departure of six employees and 12 staff having their bonuses suspended.
Deutsche Bank told Bloomberg it has since put in place measures to ensure there are no similar breaches of the lender’s policies.
German prosecutors are investigating two former Deutsche Bank AG employees for allegedly paying $1.1 million to secure the wealth management business of a senior Saudi royal, the Financial Times reported.
The money transfers were arranged in 2011 and 2012, along with other perks, including an internship and a seminar at a Swiss ski resort, according to the results of an international probe, seen by the Financial Times.
The lender conducted its probe between 2014 and 2016, leading to the departure of six employees and 12 staff having their bonuses suspended.
Deutsche Bank told Bloomberg it has since put in place measures to ensure there are no similar breaches of the lender’s policies.
MIDEAST STOCKS-Middle Eastern stocks dip as China virus fears escalate - Agricultural Commodities - Reuters
MIDEAST STOCKS-Middle Eastern stocks dip as China virus fears escalate - Agricultural Commodities - Reuters:
Saudi's benchmark index ended down 0.7%, with Al
Rajhi Bank and Saudi Basic Industries
shedding 0.6% and 1.2%, respectively.
Saudi Kayan Petrochemical plunged 4.3%, its
biggest intraday fall since April. On Thursday, the firm
reported that its fourth-quarter loss widened to 167.4 million
riyals ($44.63 million).
Saudi Arabia Fertilizers Co (SAFCO), which posted
a 40.5% decline in fourth-quarter profit, dropped 2.3%.
However, National Medical Care leapt 4.2% after
announcing a higher dividend of 2 riyal per share for 2019.
The Dubai index eased 0.6%, hurt by a 1.4% decline
in Dubai Islamic Bank and a 0.7% fall in Emirates NBD
Bank.
Saudi's benchmark index ended down 0.7%, with Al
Rajhi Bank and Saudi Basic Industries
shedding 0.6% and 1.2%, respectively.
Saudi Kayan Petrochemical plunged 4.3%, its
biggest intraday fall since April. On Thursday, the firm
reported that its fourth-quarter loss widened to 167.4 million
riyals ($44.63 million).
Saudi Arabia Fertilizers Co (SAFCO), which posted
a 40.5% decline in fourth-quarter profit, dropped 2.3%.
However, National Medical Care leapt 4.2% after
announcing a higher dividend of 2 riyal per share for 2019.
The Dubai index eased 0.6%, hurt by a 1.4% decline
in Dubai Islamic Bank and a 0.7% fall in Emirates NBD
Bank.
Finablr shares tumble after it says half of its stock pledged as collateral for Travelex debt - The National
Finablr shares tumble after it says half of its stock pledged as collateral for Travelex debt - The National:
Payments and foreign exchange holding company Finablr's share price tumbled on Friday after a bourse filing showed its majority owner, UAE-based Indian billionaire B.R. Shetty, pledged more than half of its stock as security to raise loans.
Finablr said on Friday that 56.03 per cent of its stock, or 392,220,890 shares, was pledged as a security against borrowings by BRS Investments, an investment company owned by Mr Shetty, to buy Travelex, according to a filing to the London Stock Exchange, where its shares trade. The payments processing company's shares plunged 27.37 per cent to 95 pounds (Dh456) at the market close in London on January 24.
Finablr's "operations continue to function as normal," the company said. "BRS has reassured the company around the level of security represented by its shareholding in Finablr and the discussions that it has had with its banking group around repayment/refinancing of the loan as well as the other collateral sources should these be required."
Payments and foreign exchange holding company Finablr's share price tumbled on Friday after a bourse filing showed its majority owner, UAE-based Indian billionaire B.R. Shetty, pledged more than half of its stock as security to raise loans.
Finablr said on Friday that 56.03 per cent of its stock, or 392,220,890 shares, was pledged as a security against borrowings by BRS Investments, an investment company owned by Mr Shetty, to buy Travelex, according to a filing to the London Stock Exchange, where its shares trade. The payments processing company's shares plunged 27.37 per cent to 95 pounds (Dh456) at the market close in London on January 24.
Finablr's "operations continue to function as normal," the company said. "BRS has reassured the company around the level of security represented by its shareholding in Finablr and the discussions that it has had with its banking group around repayment/refinancing of the loan as well as the other collateral sources should these be required."