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.
Thursday 30 January 2020
#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.