Oil Claws Back Some Losses on Prolonged Libyan Export Crisis - Bloomberg

Oil Claws Back Some Losses on Prolonged Libyan Export Crisis - Bloomberg:

Oil erased some earlier declines as concern mounted about supply disruptions in Libya and Iraq despite ample output from other major producers.

Futures trimmed losses to settle little changed near $58 a barrel in New York on Tuesday. The Libyan port crisis that strangled exports from North Africa’s biggest oil supplier extended into a fourth day. Meanwhile, spreading unrest in Iraq threatened shipments from OPEC’s No. 2 producer.

The Libyan disruption is significant because “there is a lot demand for light, sweet crude” among refiners working to comply with stricter fuel rules, said Phil Flynn, an analyst at Price Futures Group Inc.

Oil prices also were pressured as a deadly virus from China spread to the U.S.

West Texas Intermediate futures for February declined 20 cents to settle at $58.34 a barrel on the New York Mercantile Exchange. The contract expires Tuesday.

Brent crude for March settlement dropped 61 cents to $64.59 on the ICE Futures Europe exchange in London.

#SaudiArabia Returns to Eurobond Market as Gulf Tensions Ease - Bloomberg

Saudi Arabia Returns to Eurobond Market as Gulf Tensions Ease - Bloomberg:

Saudi Arabia is selling its first Eurobond of the year on Tuesday as tension in the Middle East eases over the U.S. assassination of Iranian commander Qassem Soleimani.

The kingdom is selling $5 billion of debt, taking advantage of low borrowing costs globally. It’s seeking to plug part of its growing budget deficit by issuing about $32 billion of local currency and international debt over the course of the year.

Tuesday’s deal was made up of three dollar tranches, according to people with knowledge of the matter, who asked not to be identified because they’re not authorized to speak about it. The country is selling a seven-year offering for 85 basis points over U.S. Treasuries, 110 basis points for a 12-year security. It’s also selling a 35-year bond that yields 3.84%, which is Saudi Arabia’s longest yet.

UPDATE 3-U.S. shale oil, natgas output growth to hit slowest in a year -EIA - Reuters

UPDATE 3-U.S. shale oil, natgas output growth to hit slowest in a year -EIA - Reuters:

U.S. oil and natural gas output in major shale formations is expected to rise by the smallest in about a year in February to record highs, the U.S. Energy Information Administration (EIA) said on Tuesday, as producers pull back on new drilling.

Shale oil output is expected to rise by about 22,000 barrels per day (bpd) in February to about 9.2 million bpd, which would be the smallest monthly increase since production declined in February 2019.

U.S. gas output in the big shale basins was projected to increase less than 0.1 billion cubic feet per day (bcfd) to a record 86.0 bcfd, its smallest monthly increase since a drop in January 2019.

The Permian and Bakken regions have been the biggest drivers of a shale boom that helped make the United States the biggest oil producer in the world, ahead of Saudi Arabia and Russia.

#Dubai’s DFM ekes out gains as #AbuDhabi’s ADX slips | Markets – Gulf News

Dubai’s DFM ekes out gains as Abu Dhabi’s ADX slips | Markets – Gulf News:

The main benchmark on the Dubai bourse ended marginally higher on Tuesday, as gains recorded by banking stocks were almost nulled by declines in the real estate sector. 


The top index on the Dubai Financial Market (DFM) edged up 0.1 per cent at 2,854.92 points in light trade, while the Abu Dhabi Securities Exchange (ADX) slipped 0.5 per cent to 5,184.53.

While real estate blue-chip Emaar Property slipped 0.2 per cent, top lender Emirates NBD rose 0.4 per cent and Dubai Islamic Bank edged up 0.2 per cent.

DFM’s real estate peer tracker fell 0.2 per cent, while lending stocks rose 0.2 per cent. This comes a day after the Dubai index snapped a seven-day winning streak as the index was dragged by losses of 0.7 per cent in both the banking and real estate sectors.

#Lebanon’s Default Likely After March Bond, Oxford Economics Says - Bloomberg

Lebanon’s Default Likely After March Bond, Oxford Economics Says - Bloomberg:

Lebanese authorities will be reluctant to announce a default on debt payments until a functioning government is formed, pushing back any plans for a bond restructuring to later this year, according to Oxford Economics.

Investors can reap a 13% return by buying Lebanon’s dollar-denominated note due March 9, London-based strategist Nafez Zouk said in an emailed note. While there’s an 85% probability those bonds will be repaid at maturity, dwindling foreign-currency reserves mean a default may still be announced in the second half of 2020, Zouk said.

The chances of Lebanon repaying its $2.1 billion bond maturing in April 2021 are “slim,” he said.

The recommendation comes after a record slump in the March bond last week, fueled by reports local lenders have been selling the instruments to avoid participating in a central bank-initiated voluntary debt swap.

#SaudiArabia Escapes Deflation Just Barely as Cycle Turns: Chart - Bloomberg

Saudi Arabia Escapes Deflation Just Barely as Cycle Turns: Chart - Bloomberg:

Saudi inflation crawled above zero in December for the first time in a year, ending an unprecedented stretch of price declines made worse by a slump in housing costs. A pickup in the non-oil economy is likely to keep up price pressures after the headline figure ticked up as food inflation doubled last month. A diminishing drag from housing, coupled with stronger domestic demand, should push Saudi inflation further into positive territory throughout this year, according to Ziad Daoud of Bloomberg Economics.

#UAE's Shuaa Capital subsidiary inks deal for a new $400mln investment portfolio | ZAWYA MENA Edition

UAE's Shuaa Capital subsidiary inks deal for a new $400mln investment portfolio | ZAWYA MENA Edition:

Dubai-listed Shuaa Capital announced that one of its offshore subsidiaries has reached an agreement to manage an investment portfolio of assets of around $400 million.

The transaction increases the assets under management of Shuaa Capital and its subsidiaries to $13.4 billion, the firm said in a statement on Dubai Financial Market (DFM).

The deal will also generate several fees to Shuaa Capital including annual management fees and other potential performance fees, it added.

Shuaa last year completed a merger with Abu Dhabi Financial Group (ADFG) creating an entity with $12.8 billion of assets under management at the time.

Aramco IPO proceeds to fund #Saudi industry, including defense: finance minister - Reuters

Aramco IPO proceeds to fund Saudi industry, including defense: finance minister - Reuters:

Saudi Arabia will pump the proceeds from last month’s listing of oil giant Saudi Aramco into the local economy over several years, including building up the domestic defense industry amid tensions with Iran, its finance minister said on Tuesday.

Mohammed al-Jadaan told Reuters there were “serious efforts” to reduce antagonism between Washington and Tehran after a top Iranian general was killed in a U.S. air strike and Iran retaliated with missile attacks against American bases in Iraq.

“If you look at history, we in this region have managed to weather through worse geopolitical situations, including actual, real wars,” he said in an interview on the sidelines of the World Economic Forum.

“We in Saudi have to focus on the economy and reform ... We firmly believe the disputes can only be resolved by dialogue.”

Oil market shrugs off Libya crisis - Reuters

Oil market shrugs off Libya crisis - Reuters:

Oil prices fell more on Tuesday on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya’s crude production to a trickle.

Brent crude LCOc1 was down 37 cents at $64.83 a barrel by 1450 GMT, having hit a session low of $64.06. U.S. West Texas Intermediate crude CLc1 was down 20 cents at $58.34, after hitting a low of $57.68 earlier in the day.

“Market participants appear to fret less about supply disruptions in the Middle East, or at least the risk of disruptions, thanks to the impressive growth we have seen in U.S. output over recent years,” Bank ING said.

Almost all of Libya’s crude export capacity is now under force majeure - a waiver on contractual obligations - after pipeline blockades in the east and west of the country hindered oil production.

MIDEAST STOCKS-Egypt extends losses in subdued Gulf - Reuters

MIDEAST STOCKS-Egypt extends losses in subdued Gulf - Reuters:

Middle Eastern stock markets were largely
subdued on Tuesday, mirroring global stocks, as mounting
concerns about a new strain of coronavirus in China dampened
risk appetite.

The death toll from the coronavirus outbreak in China
climbed to six On Tuesday as authorities reported a surge in new
cases.

The National Health Commission (NHC) put the number of
confirmed cases at 291 by the end of Monday, but further
information from individual provinces on Tuesday showed a
widening geographic spread.

Egypt's blue-chip index fell for a second day,
retreating 1%, with 25 of 30 stocks easing on the index.

Oil Slides as Ample Supplies Soften Shock of Libya Disruption - Bloomberg

Oil Slides as Ample Supplies Soften Shock of Libya Disruption - Bloomberg:

Oil fell as global markets remain comfortably supplied despite the suspension of exports from Libya, and as equities faltered on political and economic worries in Asia.

Brent crude slipped as much as 1.4% in London, approaching $64 a barrel. Libyan ports have been closed on the order of militia leader Khalifa Haftar while he haggles over a peace settlement with the national government. Yet crude markets remain calm because “the world is awash with oil, mainly coming from the United States,” International Energy Agency Executive Director Fatih Birol said in a Bloomberg TV interview at the World Economic Forum in Davos.

Brent crude dropped 86 cents, or 1.3%, to $64.34 a barrel on the ICE Futures Europe exchange as of 10:13 a.m. in London. West Texas Intermediate futures for February lost 59 cents to $57.95 from Friday’s close. There was no settlement Monday due to the Martin Luther King Jr. holiday.

Property in #Dubai, Property Prices/Rates in Dubai 2020: Average Dubai property values drop by more than 10% - Arabianbusiness

Property in Dubai, Property Prices/Rates in Dubai 2020: Average Dubai property values drop by more than 10% - Arabianbusiness:

The value of properties in Dubai fell by 10.4 percent on average in 2019, according to the latest report from local consulting firm ValuStrat.

Capital values dropped more than 15 percent annually for apartments in Discovery Gardens and Dubai Production City.

While four out of 26 locations witnessed single-digit declines, villas in the Meadows, Palm Jumeirah and Emirates Hills, as well as apartments in Dubai Sports City.

Haider Tuaima, head of real estate research at ValuStrat, said: “An evident positive buyer sentiment has been observed for the past 15 months, boosting investor demand, this was likely due to attractive prices, fewer off-plan launches and delayed project completions.

#Dubai's DP World buys stake in Swiss container terminal operator - Arabianbusiness

Dubai's DP World buys stake in Swiss container terminal operator - Arabianbusiness:

DP World and Swissterminal Holding, the container terminal operator in Switzerland, have announced a strategic partnership.

DP World said it has taken a stake of 44 percent in Swissterminal Holding with the Mayer family, who founded the business, remaining the majority shareholder.

The parties have agreed not to disclose financial details of the transaction, a statement said.

Swissterminal, which is headquartered in Frenkendorf close to Basel, operates additional locations in Zurich-Niederglatt, Basel-Birsfelden, Basel-Kleinhueningen and Liestal.

Where OPEC+ Oil Production Stands Now

Where OPEC+ Oil Production Stands Now:

OPEC intensified its oil production cuts in December, the final month before the start of a revamped version of a multinational agreement to prevent a glut. Its partners failed to meet their obligation for the second consecutive month. Here’s a look at compliance as the OPEC+ alliance rounded out three full years of output curbs.

Adherence by the Organization of Petroleum Exporting Countries increased to 166% last month. Seven of the 11 OPEC members participating in cuts reduced supply as agreed—the most of any month in 2019. Non-OPEC conformity slipped to 58%, as just four of the 10 nations in that cohort complied. Bloomberg’s calculations are based on data from OPEC and the International Energy Agency.

#Dubai News: Al Shaibani to Become Head of Dubai Palm-Shaped Island Developer - Bloomberg

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

Top government official Mohammed Al Shaibani will take over as chairman of the Dubai-based palm-shaped island developer Nakheel PJSC, replacing Ali Lootah.

Al Shaibani, who is also chief executive officer of Investment Corp. of Dubai and director general of the city’s ruler’s court, will take over after Lootah resigned, Nakheel said in a statement.

Lootah, who steered the state-owned developer through a $10.5 billion debt restructuring, left the company after 10 years in the role, Bloomberg reported on Monday. He will join the board of Dubai World, according to the statement.

Al Shaibani is one of four new board members, which also include former Nakheel Chairman Sultan bin Sulayem, Khalifa AlDaboos, and Issam Galadari, according to the statement. Lootah replaced Bin Sulayem as chairman in 2010.

Barclay Brothers in Talks to Sell Ritz Hotel to Saudis, FT Says - Bloomberg

Barclay Brothers in Talks to Sell Ritz Hotel to Saudis, FT Says - Bloomberg:

The Barclay brothers are in talks to sell London’s 114-year-old Ritz Hotel to Sidra Capital, an investment group of wealthy Saudi Arabian families, the Financial Times reported, citing people close to the discussions.

The brothers want at least 750 million pounds ($975 million) for the luxury hotel, the FT said, citing a person working with another potential bidder.

The process to sell the hotel has been underway for several weeks, the people said. They didn’t disclose which Saudi family was funding the potential bid or how much they were offering. There’s no certainty the talks will lead to a deal, they said.

The Barclays acquired the hotel, on the edge of London’s St, James and Mayfair districts, for around 75 million pounds in 1995, and proceeded to invest tens of millions of pounds to restore it to its former glory, the FT said.

UPDATE 1-Bahrain's GFH starts marketing dollar sukuk - Reuters

UPDATE 1-Bahrain's GFH starts marketing dollar sukuk - Reuters:

Bahrain-based GFH Financial Group started marketing on Tuesday five-year sukuk, or Islamic bonds, denominated in U.S. dollars, with a yield of around 7%, a document showed.


The debt sale is expected to close later on Tuesday.

The issuer is rated B by S&P and Fitch.

The sukuk will be of benchmark size, which generally means upwards of $500 million.

London's community of wealthy Middle East property buyers continues to grow - Arabianbusiness

London's community of wealthy Middle East property buyers continues to grow - Arabianbusiness:

As the number of new prospective buyers in London rises to the highest in more than 15 years, the percentage of wealthy buyers from the Middle East who are targeting the British capital also continues to grow, according to new data.

While London real estate company Knight Frank has not released exact figures, it reported that the number of new prospective buyers who registered with it during the second week of January soared 92 percent year-on-year and is at its highest weekly total for 15 years.

Tom Bill, head of London residential research said in a press statement: “The reasons for this uptick include the relatively benign global economic backdrop, ultra-low mortgage rates, the currency discount and the fact prime residential markets have re-priced in response to political uncertainty and tax changes.”

“The extent of the pent-up demand that has built over 2019 could also inject more urgency into the market. In the final quarter of last year, there were 10 new buyers for every new property listed in prime central and outer London, the highest ratio in more than 15 years,” he added.

UPDATE 1- #SaudiArabia starts selling triple-tranche dollar bonds - Reuters

UPDATE 1-Saudi Arabia starts selling triple-tranche dollar bonds - Reuters:

Saudi Arabia started marketing on Tuesday U.S. dollar denominated bonds split into tranches of seven, 12 and 35 years, a document showed, as the kingdom taps international investors as part of plans to raise $32 billion worth of debt this year. 


Riyadh has been borrowing extensively over the past few years, locally and internationally, to tap new financing channels in an era of lower oil prices.

It is offering initial price guidance of around 110 basis points (bps) over U.S. Treasuries for the seven-year paper, 135 bps over the benchmark for the 12-year tranche, and 180 bps over for the 35-year, a document by one of the banks leading the deal showed.

Citigroup, Morgan Stanley and Standard Chartered are joint global coordinators and lead managers, and BNP Paribas, HSBC, JPMorgan and NCB Capital have been hired as passive lead managers.

Oil prices slide as supply concerns fade - Reuters

Oil prices slide as supply concerns fade - Reuters:

Oil prices fell nearly 1% on Tuesday as investors expected Libya’s oil production to eventually resume following a force majeure declared by the oil exporter on two major oilfields amid a military blockade.

Brent crude LCOc1 was down 56 cents, or nearly 0.9%, at $64.64 per barrel by 0748 GMT, after rising to its highest in more than a week on Monday. U.S. West Texas Intermediate crude CLc1 was down 35 cents, or 0.6%, at $58.19 a barrel. 


“The situation in Libya provided oil prices an early boost but the rally fizzled out as expectations remain that Libya’s oil production will eventually return to normal levels,” said Edward Moya, a market analyst with OANDA.

Two major oilfields in southwest Libya began shutting down on Sunday after a pipeline was closed off, potentially reducing national output to a fraction of its normal level, the country’s National Oil Corp (NOC) said.

MIDEAST STOCKS-Gulf markets dither early on, Aramco weighs on #Saudi | Nasdaq

MIDEAST STOCKS-Gulf markets dither early on, Aramco weighs on Saudi | Nasdaq:

Major Gulf stock markets moved sideways early on Tuesday, with financials and energy stocks weighing on Saudi Arabia and real estate shares underpinning Dubai's index.

Saudi's benchmark index .TASI dropped 0.4% with state-owned Saudi Aramco 2222.SE shedding 0.6% and Al Rajhi Bank 1120.SE losing 0.3%.

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.

The International Monetary Fund trimmed 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%.