Oil ends higher, as trade deal progress spurs energy demand hopes - Reuters:
Oil rose about 1% on Thursday, as progress on another major trade deal fed optimism that energy demand will grow in 2020.
The U.S. Senate approved a revamp of the U.S.-Mexico-Canada Free Trade Agreement a day after the signing of the Phase 1 trade deal between the United States and China.
Brent LCOc1 settled up 62 cents, or 1%, to $64.62 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose by 71 cents, or 1.2%, to $58.52 a barrel.
The deal that the Senate approved was a revamp of the 26-year-old North American Free Trade Agreement. A day earlier, U.S. and Chinese leaders signed the Phase 1 trade deal calling for the world’s largest importer to buy $50 billion more of U.S. oil, liquefied natural gas and other energy products over two years.
Thursday, 16 January 2020
Verdict on Aramco Crude-to-Chemicals Plan With Sabic Seen in 2Q - Bloomberg
Verdict on Aramco Crude-to-Chemicals Plan With Sabic Seen in 2Q - Bloomberg:
Saudi Basic Industries Corp. and Saudi Aramco expect to announce in the second quarter whether they’ll proceed with plans to build a facility to process crude oil directly into chemicals, Sabic’s chief executive officer said.
The companies are still working on the proposal, assessing technological and market risks as well as spending requirements, Sabic CEO Yousef Al Benyan said Thursday in an interview in Riyadh. Sabic, the biggest chemicals producer in the Middle East, and Aramco, the world’s largest oil exporter, agreed in 2016 to study the project, which would cut out a costly intermediate link in the production of plastics.
“We are in the phase of looking at the final scope,” Al Benyan said. “As soon as we finalize it, and I think this will come in the second quarter, we will be able to make some announcement.”
The complex, which the partners originally planned to build at Yanbu on the kingdom’s western coast, is expected to process 400,000 barrels a day of crude and produce about 9 million tons of chemicals and base oils annually. Olivier Thorel, Aramco’s executive director for chemicals, said in December that the project was progressing more slowly than anticipated.
Saudi Basic Industries Corp. and Saudi Aramco expect to announce in the second quarter whether they’ll proceed with plans to build a facility to process crude oil directly into chemicals, Sabic’s chief executive officer said.
The companies are still working on the proposal, assessing technological and market risks as well as spending requirements, Sabic CEO Yousef Al Benyan said Thursday in an interview in Riyadh. Sabic, the biggest chemicals producer in the Middle East, and Aramco, the world’s largest oil exporter, agreed in 2016 to study the project, which would cut out a costly intermediate link in the production of plastics.
“We are in the phase of looking at the final scope,” Al Benyan said. “As soon as we finalize it, and I think this will come in the second quarter, we will be able to make some announcement.”
The complex, which the partners originally planned to build at Yanbu on the kingdom’s western coast, is expected to process 400,000 barrels a day of crude and produce about 9 million tons of chemicals and base oils annually. Olivier Thorel, Aramco’s executive director for chemicals, said in December that the project was progressing more slowly than anticipated.
Oil up sharply as more trade deal progress spurs energy demand hopes - Reuters
Oil up sharply as more trade deal progress spurs energy demand hopes - Reuters:
Oil rose more than 1% on Thursday, as progress on another major trade deal fed optimism that energy demand will grow in 2020.
The U.S. Senate approved a revamp of the U.S.-Mexico-Canada Free Trade Agreement a day after the signing of the Phase 1 trade deal between U.S and China.
Brent LCOc1 was up 95 cents, or 1.4%, to $64.95 a barrel by 11:37 a.m. EST (1637 GMT), and U.S. West Texas Intermediate (WTI) crude CLc1 rose by $1.02, or 1.8%, to $58.83 a barrel.
The U.S. Senate on Thursday approved a revamp of the 26-year-old North American Free Trade Agreement. A day earlier, U.S. and Chinese leaders signed the Phase 1 trade deal that calls for the world’s largest importer to buy $50 billion more of U.S. oil, liquefied natural gas and other energy products over two years.
Oil rose more than 1% on Thursday, as progress on another major trade deal fed optimism that energy demand will grow in 2020.
The U.S. Senate approved a revamp of the U.S.-Mexico-Canada Free Trade Agreement a day after the signing of the Phase 1 trade deal between U.S and China.
Brent LCOc1 was up 95 cents, or 1.4%, to $64.95 a barrel by 11:37 a.m. EST (1637 GMT), and U.S. West Texas Intermediate (WTI) crude CLc1 rose by $1.02, or 1.8%, to $58.83 a barrel.
The U.S. Senate on Thursday approved a revamp of the 26-year-old North American Free Trade Agreement. A day earlier, U.S. and Chinese leaders signed the Phase 1 trade deal that calls for the world’s largest importer to buy $50 billion more of U.S. oil, liquefied natural gas and other energy products over two years.
Al Ramz Corporation acquires Shuaa Capital's market-making business | ZAWYA MENA Edition
Al Ramz Corporation acquires Shuaa Capital's market-making business | ZAWYA MENA Edition:
The Emirati domiciled financial institution Al Ramz Corporation Investment and Development has acquired the market-making business of Shuaa Capital, the region’s leading asset management and investment banking platform.
Under the terms of the acquisition, personnel and market-making activities will be transferred to Al Ramz Corporation, according to a press release on Thursday.
Commenting on the transaction, managing director of Al Ramz Corporation, Mohammad Al Mortada Al Dandashi, commented, “Market making is a core business in our strategy which we continue to develop and grow. For over two decades now, Al Ramz has played an integral role in developing the UAE financial markets, contributing to the market’s liquidity, efficiency and appeal to investors.”
In the meantime, deputy CEO and group head of asset management of Shuaa Capital, Mustafa Kheriba, concluded, “The sale of the equities market?making business to Al Ramz is in line with our post?merger strategy to realign efforts on Shuaa’s capital efficient businesses and exit non-core businesses so we can further grow and expand the group’s Asset Management and Investment Banking platform.”
The Emirati domiciled financial institution Al Ramz Corporation Investment and Development has acquired the market-making business of Shuaa Capital, the region’s leading asset management and investment banking platform.
Under the terms of the acquisition, personnel and market-making activities will be transferred to Al Ramz Corporation, according to a press release on Thursday.
Commenting on the transaction, managing director of Al Ramz Corporation, Mohammad Al Mortada Al Dandashi, commented, “Market making is a core business in our strategy which we continue to develop and grow. For over two decades now, Al Ramz has played an integral role in developing the UAE financial markets, contributing to the market’s liquidity, efficiency and appeal to investors.”
In the meantime, deputy CEO and group head of asset management of Shuaa Capital, Mustafa Kheriba, concluded, “The sale of the equities market?making business to Al Ramz is in line with our post?merger strategy to realign efforts on Shuaa’s capital efficient businesses and exit non-core businesses so we can further grow and expand the group’s Asset Management and Investment Banking platform.”
Mideast Stocks: Financials lift most of Gulf, blue-chips boost Egypt | ZAWYA MENA Edition
Mideast Stocks: Financials lift most of Gulf, blue-chips boost Egypt | ZAWYA MENA Edition:
All major Gulf markets closed higher on Thursday, led by financial stocks as oil prices rose after the U.S.-China trade agreement was signed, while gains in blue-chips buoyed Egypt.
Oil prices rose on Thursday after the United States and China agreed on an eagerly awaited Phase 1 trade deal, giving some relief to markets.
Saudi Arabia's benchmark index ended 0.3% up, with Al Rajhi Bank gaining 0.5% and Banque Saudi Fransi up 1.4%.
Middle Eastern fund managers plan to increase investments in Saudi Arabia, while keeping exposure in the rest of the region at current levels, according to a Reuters poll.
All major Gulf markets closed higher on Thursday, led by financial stocks as oil prices rose after the U.S.-China trade agreement was signed, while gains in blue-chips buoyed Egypt.
Oil prices rose on Thursday after the United States and China agreed on an eagerly awaited Phase 1 trade deal, giving some relief to markets.
Saudi Arabia's benchmark index ended 0.3% up, with Al Rajhi Bank gaining 0.5% and Banque Saudi Fransi up 1.4%.
Middle Eastern fund managers plan to increase investments in Saudi Arabia, while keeping exposure in the rest of the region at current levels, according to a Reuters poll.
#Dubai's Noor Bank CEO to leave amid merger with DIB: sources - Reuters
Dubai's Noor Bank CEO to leave amid merger with DIB: sources - Reuters:
The chief executive of Dubai’s Noor Bank is leaving the bank, which is being acquired by Dubai Islamic Bank (DISB.DU), two sources familiar with the move said.
John Iossifidis, who joined Noor Bank in the middle of 2017 and previously worked at Mashreqbank (MASB.DU), disclosed his departure in a memo to employees, the sources told Reuters.
The resignation came as shareholders of both Dubai Islamic Bank, the United Arab Emirates largest sharia-compliant bank, and Noor Bank approved the acquisition last month.
The chief executive of Dubai’s Noor Bank is leaving the bank, which is being acquired by Dubai Islamic Bank (DISB.DU), two sources familiar with the move said.
John Iossifidis, who joined Noor Bank in the middle of 2017 and previously worked at Mashreqbank (MASB.DU), disclosed his departure in a memo to employees, the sources told Reuters.
The resignation came as shareholders of both Dubai Islamic Bank, the United Arab Emirates largest sharia-compliant bank, and Noor Bank approved the acquisition last month.
How G20 presidency is likely to deliver #Saudi economic boost - Arabianbusiness
How G20 presidency is likely to deliver Saudi economic boost - Arabianbusiness:
Saudi Arabia becoming the first Arab nation to take over the G20 presidency is likely to deliver a 0.2 percent boost to the kingdom's non-oil private sector GDP, according to new research.
The G20 presidency, which Saudi Arabia took over from Japan in December, will see it host world leaders for a global summit in its capital Riyadh on November 21-22.
The presidency comes as the oil-rich kingdom has promoted a liberalisation drive, including granting greater rights to women, but faced strong criticism over a crackdown on dissent and the murder of journalist Jamal Khashoggi.
A new research note from Jadwa Investment said: "Whilst Saudi Arabia’s capital has hosted several large functions in the recent past, the G20 summit differs due to the sheer number of different events related to it.
Saudi Arabia becoming the first Arab nation to take over the G20 presidency is likely to deliver a 0.2 percent boost to the kingdom's non-oil private sector GDP, according to new research.
The G20 presidency, which Saudi Arabia took over from Japan in December, will see it host world leaders for a global summit in its capital Riyadh on November 21-22.
The presidency comes as the oil-rich kingdom has promoted a liberalisation drive, including granting greater rights to women, but faced strong criticism over a crackdown on dissent and the murder of journalist Jamal Khashoggi.
A new research note from Jadwa Investment said: "Whilst Saudi Arabia’s capital has hosted several large functions in the recent past, the G20 summit differs due to the sheer number of different events related to it.
Hyflux’s Suitor Says ‘Willing to Walk Away’ From Embattled Firm - Bloomberg
Hyflux’s Suitor Says ‘Willing to Walk Away’ From Embattled Firm - Bloomberg:
A Middle Eastern suitor for Hyflux Ltd. said it is willing to walk away from a deal with the embattled water treatment company, after a little-known firm made an offer for the utility’s debt.
The development is an added complication in Singapore’s highest-profile restructuring case, which has left some 34,000 retail investors in the lurch, with few signs of a resolution emerging after more than 18 months. Hyflux is separately asking for a three-month extension of its debt moratorium.
The United Arab Emirates-based utility, Utico FZC, will hold a town-hall meeting for holders of Hyflux’s perpetual securities and preference shares, as well as medium-term notes, on Jan. 20 in Singapore. It comes just days before the expiry of an offer by Aqua Munda Pte to buy the Singaporean company’s debt.
A Middle Eastern suitor for Hyflux Ltd. said it is willing to walk away from a deal with the embattled water treatment company, after a little-known firm made an offer for the utility’s debt.
The development is an added complication in Singapore’s highest-profile restructuring case, which has left some 34,000 retail investors in the lurch, with few signs of a resolution emerging after more than 18 months. Hyflux is separately asking for a three-month extension of its debt moratorium.
The United Arab Emirates-based utility, Utico FZC, will hold a town-hall meeting for holders of Hyflux’s perpetual securities and preference shares, as well as medium-term notes, on Jan. 20 in Singapore. It comes just days before the expiry of an offer by Aqua Munda Pte to buy the Singaporean company’s debt.
EM Insight: Investors Turn Wary of Mideast Dollar Debt - Bloomberg | Video link
EM Insight: Investors Turn Wary of Mideast Dollar Debt - Bloomberg:
Some of the most seasoned investors in the region have turned skittish as tensions between the U.S. and Iran simmer. Dollar-denominated debt sold by Lebanon, Iraq, Bahrain and Oman have been among the worst performers across emerging markets since the killing of top Iranian general Qassem Soleimani. Netty Ismail reports on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Some of the most seasoned investors in the region have turned skittish as tensions between the U.S. and Iran simmer. Dollar-denominated debt sold by Lebanon, Iraq, Bahrain and Oman have been among the worst performers across emerging markets since the killing of top Iranian general Qassem Soleimani. Netty Ismail reports on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Lebanon News: Debt Plan to End Crisis Sputters - Bloomberg
Lebanon News: Debt Plan to End Crisis Sputters - Bloomberg:
Lebanon’s plan to steer through its debt crisis by getting local investors to swap into longer-dated Eurobonds has come unstuck after rating companies warned they would consider it a “selective default,” a person familiar with the matter said.
The Finance Ministry sent a letter to the central bank Wednesday asking it to hold off on the deal, according to the person, who asked not be identified because the information isn’t public. Based on their communication with the ministry, rating companies could declare Lebanon to be in breach of its obligations “because it is considered a distressed exchange,” the person said.
Given the threat to the sovereign rating, the ministry has asked the central bank not to pursue the transaction until the government decides on a financing plan for its Eurobonds maturing in 2020, according to the person.
Lebanon’s plan to steer through its debt crisis by getting local investors to swap into longer-dated Eurobonds has come unstuck after rating companies warned they would consider it a “selective default,” a person familiar with the matter said.
The Finance Ministry sent a letter to the central bank Wednesday asking it to hold off on the deal, according to the person, who asked not be identified because the information isn’t public. Based on their communication with the ministry, rating companies could declare Lebanon to be in breach of its obligations “because it is considered a distressed exchange,” the person said.
Given the threat to the sovereign rating, the ministry has asked the central bank not to pursue the transaction until the government decides on a financing plan for its Eurobonds maturing in 2020, according to the person.
Revealed: Energy subsidies cost #UAE $7bln-$10bln in 20 years | ZAWYA MENA Edition
Revealed: Energy subsidies cost UAE $7bln-$10bln in 20 years | ZAWYA MENA Edition:
New electricity tariffs should be introduced in the UAE and other countries in the Gulf Cooperation Council (GCC) region in order to drive down expenditures on power subsidies, which are costing the governments millions of US dollars every year, according to a new study.
The report by Strategy& Middle East that was released this week said that over the past 20 years, the Gulf states have spent more than $120 billion on energy subsidies, while in the UAE, the accumulated figure stands at $7 billion to $10 billion.
While the high subsidies are putting a strain on government coffers, the report said that the current electricity pricing structures in the region are also not sustainable, hence reforms must be rolled out. It added that if the pricing structures are kept unchanged, governments in the Gulf region will incur an additional $150 billion in energy subsidies, as power consumption is expected to continue rising.
New electricity tariffs should be introduced in the UAE and other countries in the Gulf Cooperation Council (GCC) region in order to drive down expenditures on power subsidies, which are costing the governments millions of US dollars every year, according to a new study.
The report by Strategy& Middle East that was released this week said that over the past 20 years, the Gulf states have spent more than $120 billion on energy subsidies, while in the UAE, the accumulated figure stands at $7 billion to $10 billion.
While the high subsidies are putting a strain on government coffers, the report said that the current electricity pricing structures in the region are also not sustainable, hence reforms must be rolled out. It added that if the pricing structures are kept unchanged, governments in the Gulf region will incur an additional $150 billion in energy subsidies, as power consumption is expected to continue rising.
CORRECTED-UPDATE 1- #Qatar National Bank issues $600 mln Formosa bond - Reuters
CORRECTED-UPDATE 1-Qatar National Bank issues $600 mln Formosa bond - Reuters:
Qatar National Bank, the Gulf’s biggest bank by assets, has issued a $600 million Formosa bond as part of efforts to diversify its funding sources, a spokesman said, while sources said the issue was for 40 years.
Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar.
Morgan Stanley was the sole arranger of the transaction, two sources familiar with the matter said. The U.S. bank did not immediately respond to a request for comment.
Qatar National Bank, the Gulf’s biggest bank by assets, has issued a $600 million Formosa bond as part of efforts to diversify its funding sources, a spokesman said, while sources said the issue was for 40 years.
Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar.
Morgan Stanley was the sole arranger of the transaction, two sources familiar with the matter said. The U.S. bank did not immediately respond to a request for comment.
IEA says oil stocks, non-OPEC output to buffer market from shocks - Reuters
IEA says oil stocks, non-OPEC output to buffer market from shocks - Reuters:
Surging oil production from non-OPEC countries led by the United States along with abundant global stocks will help the market weather political shocks such as the U.S.-Iran stand-off, the International Energy Agency (IEA) said on Thursday.
“For now the risk of a major threat to oil supplies appears to have receded,” the Paris-based IEA said in a monthly report.
“Today’s market, where non-OPEC production is rising strongly and OECD stocks are 9 million barrels above the five-year average, provides a solid base from which to react to any escalation in geopolitical tension,” the IEA said.
The IEA said it expected production to outstrip demand for crude from the Organization of the Petroleum Exporting Countries (OPEC) even if members comply fully with a pact with Russia and other non-OPEC allies to curb output.
Surging oil production from non-OPEC countries led by the United States along with abundant global stocks will help the market weather political shocks such as the U.S.-Iran stand-off, the International Energy Agency (IEA) said on Thursday.
“For now the risk of a major threat to oil supplies appears to have receded,” the Paris-based IEA said in a monthly report.
“Today’s market, where non-OPEC production is rising strongly and OECD stocks are 9 million barrels above the five-year average, provides a solid base from which to react to any escalation in geopolitical tension,” the IEA said.
The IEA said it expected production to outstrip demand for crude from the Organization of the Petroleum Exporting Countries (OPEC) even if members comply fully with a pact with Russia and other non-OPEC allies to curb output.
Oil gains after U.S.-China trade deal, fall in inventories - Reuters
Oil gains after U.S.-China trade deal, fall in inventories - Reuters:
Oil prices rose on Thursday buoyed by the long-anticipated signing of an initial Sino-U.S. trade deal that sets the stage for a jump in Chinese purchases of American energy products, while U.S. crude inventories fell more than expected.
Brent LCOc1 was 30 cents, or 0.5%, higher at $64.30 a barrel by 0754 GMT, while U.S. crude was up by 30 cents, or 0.5%, at $58.11 a barrel.
Under the so-called Phase 1 deal to call a truce in a trade war between the world’s two biggest economies, China committed to buying over $50 billion more of U.S. oil, liquefied natural gas and other energy products over two years.
“It was a formal signing of something which had already been agreed, but that has certainly boosted sentiment,” said Virendra Chauhan, oil analyst at Energy Aspects.
Oil prices rose on Thursday buoyed by the long-anticipated signing of an initial Sino-U.S. trade deal that sets the stage for a jump in Chinese purchases of American energy products, while U.S. crude inventories fell more than expected.
Brent LCOc1 was 30 cents, or 0.5%, higher at $64.30 a barrel by 0754 GMT, while U.S. crude was up by 30 cents, or 0.5%, at $58.11 a barrel.
Under the so-called Phase 1 deal to call a truce in a trade war between the world’s two biggest economies, China committed to buying over $50 billion more of U.S. oil, liquefied natural gas and other energy products over two years.
“It was a formal signing of something which had already been agreed, but that has certainly boosted sentiment,” said Virendra Chauhan, oil analyst at Energy Aspects.
MIDEAST STOCKS-Financials buoy most of Gulf; #Qatar trades flat | Nasdaq
MIDEAST STOCKS-Financials buoy most of Gulf; Qatar trades flat | Nasdaq:
Most major Gulf markets were up in early trading on Thursday, led by their financial stocks amid rising oil prices, while the Qatar market traded flat as bank and industrial shares moved sideways.
Oil prices rose on Thursday after the signing of an initial Sino-U.S. trade deal that sets the stage for a surge in Chinese purchases of American energy products, while U.S. crude inventories fell more than expected.
Saudi Arabia's index .TASI rose 0.3% with National Commercial Bank 1180.SE, the kingdom's largest lender, adding 0.4% and Samba Financial Group 1090.SE increasing 0.6%.
Middle Eastern fund managers plan to increase investments in Saudi Arabia, while keeping exposure in the rest of the region at current levels, according to a Reuters poll.
Most major Gulf markets were up in early trading on Thursday, led by their financial stocks amid rising oil prices, while the Qatar market traded flat as bank and industrial shares moved sideways.
Oil prices rose on Thursday after the signing of an initial Sino-U.S. trade deal that sets the stage for a surge in Chinese purchases of American energy products, while U.S. crude inventories fell more than expected.
Saudi Arabia's index .TASI rose 0.3% with National Commercial Bank 1180.SE, the kingdom's largest lender, adding 0.4% and Samba Financial Group 1090.SE increasing 0.6%.
Middle Eastern fund managers plan to increase investments in Saudi Arabia, while keeping exposure in the rest of the region at current levels, according to a Reuters poll.
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