Oil Pares Gains as Plentiful Supply Tempers Libya Disruption - Bloomberg

Oil Pares Gains as Plentiful Supply Tempers Libya Disruption - Bloomberg:

Oil pared gains after rising to the highest in more than a week as projections of plentiful world supplies countered concern about disruptions in Iraq and Libya.


Brent futures climbed earlier to $66 a barrel as Libya’s oil production almost ground to a halt when armed forces closed a critical pipeline, shuttering output from the nation’s biggest oil project. In fellow OPEC nation Iraq, escalating protests stopped work at a minor field on Sunday.

In the past few months, oil markets have rallied after an attack on Saudi oil infrastructure in September and military confrontation between Iran and the U.S. this month, only for prices to drop once tensions subsided.

“The oil market has been conditioned to look past any immediate supply disruptions,” Daniel Ghali, a TD Securities commodity strategist, said by phone. “We really are in an oversupplied market.”

Brent crude rose 35 cents to $65.20 a barrel Monday on the ICE Futures Europe exchange, having earlier climbed 1.8% to $66, the highest since Jan. 9. West Texas Intermediate futures gained 12 cents to $58.66 a barrel in electronic trading on the New York Mercantile Exchange after rising 2% earlier. U.S. markets were closed Monday for the Martin Luther King holiday.

Somebody Big Has Called This Year’s Oil Market Completely Wrong - Bloomberg

Somebody Big Has Called This Year’s Oil Market Completely Wrong - Bloomberg:

The world’s three biggest oil-market forecasters are split on what’s going to happen with supply and demand this year — and at least one of them is going to be proved flat wrong.

That’s the bottom line from a comparison of supply-and-demand forecasts provided by OPEC, the International Energy Agency in Paris, and the U.S. Energy Information Administration. The Organization of Petroleum Exporting Countries agreed in December to deepen output curbs until the end of March.

OPEC’s own research team sees that pact continuing to drain global stockpiles throughout 2020. By contrast, the IEA and EIA see inventory levels rising -- even if the deal gets implemented in full. And even if were to be extended for the entirety of 2020.

The OPEC+ group agreed in December to lower their combined output target by a further 500,000 barrels a day, plus a voluntary additional reduction of 400,000 barrels a day from Saudi Arabia, which depends on everybody else meeting their targets.

#Dubai News: Chairman of State-Owned Developer Nakheel to Leave - Bloomberg

Dubai News: Chairman of State-Owned Developer Nakheel to Leave - Bloomberg:

Nakheel PJSC Chairman Ali Lootah, who steered the Dubai state-owned developer through a $10.5 billion debt restructuring, is leaving after 10 years in the role, according to people with knowledge of the matter.

Lootah was hired as head of the developer of the palm-shaped islands in 2010, replacing Sultan Ahmed Bin Sulayem. The people asked not to be identified because the matter isn’t public.

A spokeswoman for Nakheel declined to comment.

Nakheel was at the center of Dubai’s debt crisis in 2009 that pushed the emirate to the brink of a default. After receiving support from the government, it now has billions of dirhams of projects and infrastructure development underway.

#Libya will face 'catastrophe' if oil blockade continues: Tripoli premier - Reuters

Libya will face 'catastrophe' if oil blockade continues: Tripoli premier - Reuters:

Libya will face a “catastrophic situation” unless foreign powers put pressure on eastern-based commander Khalifa Haftar to lift a blockade of oilfields that has cut output to almost zero, the country’s internationally recognized premier said on Monday.

Since Friday, Haftar’s forces have closed Libya’s major oil ports in a power play as European and Arab powers and the United States were meeting with his supporters in Berlin to push him to halt a campaign to capture the capital Tripoli.

Tripoli-based Prime Minister Fayez al-Serraj told Reuters he rejects eastern demands to link a reopening of oil ports to a new distribution of oil revenues among Libyans, saying such income was in any case meant to benefit the entire country. 


“The situation will be catastrophic should it stay like this,” Serraj said in an interview in Berlin.

#Lebanon urgently needs new government to avoid collapse: Hariri - Reuters

Lebanon urgently needs new government to avoid collapse: Hariri - Reuters:

Lebanon needs to quickly form a new government to stop a cycle of collapse and worsening economic and security conditions, caretaker prime minister Saad al-Hariri said on Monday, after a weekend of violent confrontations shook the capital. 


Beirut this weekend saw the worst violence since protests against the country’s elite erupted in October, with hundreds injured as security forces deployed water cannon and rubber bullets to disperse stone-throwing protesters.

Politicians have failed to agree on a government or an economic rescue plan since the unrest pushed Hariri to quit as prime minister on Oct. 29, paralyzing efforts to recover from a crisis that has shattered confidence in banks and raised investor concerns about its ability to repay steep foreign debt.

Shangri-La #Dubai hotel tower sold at auction for $190m - Arabianbusiness

Shangri-La Dubai hotel tower sold at auction for $190m - Arabianbusiness:

A landmark hotel property in Dubai operated by Hong Kong’s Shangri-La Group of Hotels has sold for AED700.2 million ($190.62 million) according to results posted on an auction website.

The 42-storey tower on Sheikh Zayed Road, owned by Abu Dhabi-based family-owned conglomerate Al Jaber Group, was listed for sale earlier this month on UAE-based Emirates Auction, a company that manages public and online auctions in the Middle East for asset liquidation, real estate, automobiles, vehicle license plates, jewelry and various other items.

The luxury skyscraper received one bid at AED700.2 million according to the site’s auction result posted online. The property was listed at AED700 million with a minimum increment set at AED200,000.

The listing said the sale did not include furniture or a trade license for the residential and commercial property elements of the tower.

Oil rises as Libya declares force majeure in oilfields - Reuters

Oil rises as Libya declares force majeure in oilfields - Reuters:

Oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, risking reducing crude flows from the OPEC member to a trickle.

Brent crude LCOc1 was up 59 cents, or 0.9%, at $65.44 by 1442 GMT, having earlier touched $66 a barrel, its highest since Jan. 9.

West Texas Intermediate CLc1 was up 39 cents, or 0.7%, at $58.93 a barrel, after rising to $59.73, the highest since Jan. 10.

Two major oilfields in southwest Libya began shutting down on Sunday after forces loyal to Khalifa Haftar closed a pipeline, potentially cutting national output to a fraction of its normal level, the National Oil Corporation (NOC) said.

UPDATE 1- #Kuwait Finance House shareholders approve #Bahrain's AUB takeover - chairman - Reuters

UPDATE 1-Kuwait Finance House shareholders approve Bahrain's AUB takeover - chairman - Reuters:

Kuwait Finance House’s shareholders have approved the acquisition of Bahrain’s Ahli United Bank, KFH’s chairman said on Monday, stepping closer to completing the Gulf’s first major cross-border bank merger in recent years. KFH’s Chairman Hamad Abdulmohsen al-Marzouq said the merged entity would have assets of $101 billion and shareholder equity of $10.5 billion, with an annual forecast profit of $1.5 billion, based on past performance.

KFH announced its plan to take over the Bahraini lender early last year after merger talks since mid-2018.

Bank mergers have picked up pace in the region after two of the United Arab Emirates’ biggest banks linked up to create First Abu Dhabi Bank in 2018.

IMF trims 2020 #Saudi growth forecast to 1.9% on lower oil output - Reuters

IMF trims 2020 Saudi growth forecast to 1.9% on lower oil output - Reuters:

The International Monetary Fund (IMF) lowered its forecast for Saudi Arabia’s economic growth to 1.9% this year due to oil output cuts agreed with oil exporters, having previously forecast the kingdom’s gross domestic product would grow 2.2%. 

Riyadh led an agreement last month that committed the OPEC+ group of oil producers to some of the deepest output cuts in a decade, to avert oversupply and support prices.

The IMF said growth in the Middle East and Central Asia this year is expected to be 2.8%, 0.1 percentage point lower than its estimate in October.

“The downgrade for 2020 mostly reflects a downward revision to Saudi Arabia’s projection on expected weaker oil output growth following the OPEC+ decision in December to extend supply cuts,” said the fund in an update of its World Economic Outlook report.

Column: Hedge funds sell oil as doubts about economy resurface - Reuters

Column: Hedge funds sell oil as doubts about economy resurface - Reuters:

Hedge funds turned heavy sellers of petroleum last week as the threat of conflict in the Middle East receded and was replaced by renewed concerns about the health of the global economy.

Hedge funds and other money managers sold the equivalent of 99 million barrels in the six most important petroleum futures and options contracts in the week to Jan. 14.

The sales come after portfolio managers had purchased 349 million barrels over the previous five weeks and a total of 533 million since mid-October (tmsnrt.rs/30AVkWa).

Funds were heavy sellers of NYMEX and ICE WTI last week (64 million barrels) as well as U.S. diesel (16 million) and European gasoil (23 million).

MIDEAST STOCKS- #Saudi stocks gain as Aramco rebounds; other markets little changed - Reuters

MIDEAST STOCKS-Saudi stocks gain as Aramco rebounds; other markets little changed - Reuters:

Saudi stocks edged up on Monday, supported by gains in
financial shares and a rebound by Saudi Aramco after three sessions of losses,
while other Middle Eastern markets were little changed.

Saudi Arabia's index gained 0.2% as Saudi Aramco reversed
course to close up 0.7% at 34.6 riyals ($9.22), offsetting earlier losses.

On Sunday, Al Rajhi Capital Research rated Aramco "neutral", in line with
most other brokerages, and set a target price of 37.5 riyals per share.

JP Morgan was the first major brokerage to initiate coverage of Saudi
Aramco, rating it "overweight" and setting a price target of 37 riyals per
share. It said it sees scope for an increase in the company's proposed $75
billion base dividend.

Banque Saudi Fransi rose 1.8% and the chemicals company Saudi
Basic Industries gained 0.8%. National Medical Care < 4005.SE> gained
1.7% after the government awarded a medical services contract worth 278.5
million riyals ($74.24 million).

Mideast Stocks: Financials lift #Saudi market; most Gulf stocks gain | ZAWYA MENA Edition

Mideast Stocks: Financials lift Saudi market; most Gulf stocks gain | ZAWYA MENA Edition:

Most major Gulf stock markets rose on Monday in early trade as gains by financial shares lifted Saudi Arabia and property shares supported Dubai's index.

Saudi Arabia's index was up 0.2% with Al Rajhi Bank gaining 0.3% and the biggest bank, National Commercial, adding 0.4%.

National Medical Care rose 2.1% after the government awarded a medical services contract worth 278.5 million riyals ($74.23 million).

But Saudi Aramco slipped 0.2% to 34.3 riyals and is set for four straight days of decline. On Sunday, Al Rajhi Capital Research rated the Aramco stock "neutral", in line with most other brokerages, and set a target price of 37.5 riyals ($10.00)per share.

#Iran’s Bid to Integrate With Global Economy Coming to an End - Bloomberg

Iran’s Bid to Integrate With Global Economy Coming to an End - Bloomberg:

Iran’s six-year push to integrate with the global economy appears to be coming to an end. 


On Monday, Iran threatened to withdraw from its last remaining commitments to the 2015 deal that limited its nuclear program in exchange for the lifting of international sanctions. On the same day, Foreign Minister Javad Zarif pulled out of this week’s World Economic Forum, the global economy’s annual networking event in Switzerland.

The moves follow a speech by Supreme Leader Ayatollah Ali Khamenei on Friday, in which he accused Europe of joining the U.S. campaign to “bring Iran to its knees.” His regime had hoped the so-called EU-3 -- Britain, France and Germany -- would help Iran to circumvent U.S. President Donald Trump’s return to “maximum pressure” sanctions by upholding the nuclear deal. But that no longer seems feasible, if it ever was.

Oil rises to more than a week high after Libyan outage - Reuters

Oil rises to more than a week high after Libyan outage - Reuters:

Oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle.

Brent crude LCOc1 futures were up by 70 cents, or 1.11%, to $65.55 by 0731 GMT, having earlier reached $66 a barrel, the highest since Jan. 9. The West Texas Intermediate CLc1 contract was up by 56 cents, or 1%, at $59.10 a barrel, after rising to $59.73, the highest since Jan. 10. 


In the latest development in a long-running conflict in Libya, where two rival factions have claimed the right to rule the country for more than five years, the National Oil Corporation (NOC) on Sunday said two big oilfields in the southwest had begun shutting down after forces loyal to the Libyan National Army closed a pipeline.

“If this sort of disruption endures, it’s meaningful ... the market is right to be reacting with a bullish tone,” said Lachlan Shaw, head of commodity research, at National Australia Bank in Melbourne.

2020 outlook: GCC markets stable, #Dubai positive | ZAWYA MENA Edition

2020 outlook: GCC markets stable, Dubai positive | ZAWYA MENA Edition:

The outlook for GCC markets in 2020 is mostly stable, while Dubai’s outlook is positive, Kuwait Financial Centre “Markaz” said in a report.

Oil prices in 2020 are expected to remain around the 2019 levels, in the range of $61-$65 per barrel, while an improvement in corporate earnings is expected, the report noted.

Markaz has listed its outlook on major GCC markets:

New DIFC end-of-service scheme expected to extend to rest of #UAE | ZAWYA MENA Edition

New DIFC end-of-service scheme expected to extend to rest of UAE | ZAWYA MENA Edition:

The new end-of-service scheme for the Dubai International Financial Centre (DIFC), which goes into effect today, is expected to roll out in the rest of the UAE as well, according to global legal firm DWF.

Last week, the Prime Minister of the UAE and the ruler of Dubai, enacted amendments to DIFC Employment Law and new Employment Regulations to introduce new end-of- service savings plan. 

“This is a progressive change which should increase the UAE's ability to attract and retain top international talent by bringing the DIFC working practices in line with global standards,” Shiraz Sethi, regional managing partner at DWF, a firm listed on the London Stock Exchange, told Zawya.



“We understand that this is a pilot scheme within the DIFC and once established, we anticipate it will be rolled out to the rest of the UAE,” he added.