‘Black Swan’ Virus Outbreak Fears Send Oil Short-Selling Soaring - Bloomberg

‘Black Swan’ Virus Outbreak Fears Send Oil Short-Selling Soaring - Bloomberg: Oil short-selling is surging as hedge funds brace for a catastrophic viral outbreak from China that’s curbing travel and threatening global demand for jet fuel and other petroleum products.

They increased wagers against West Texas Intermediate crude by 52% in the week ended Jan. 28, the biggest spike since August 2018, data released Friday show. Panic over the virus that emerged last month pushed crude down 16% in January for the worst start of the year in almost three decades, with WTI futures nearing $51 a barrel after starting 2020 above $61.

“The market was expecting a weak-demand scenario even before the virus, and it’s not only unwinding that but also contending with a potential black swan situation,” said Bob Iaccino, market strategist at Path Trading Partners. “We’ve got some lows to break, and if we don’t stabilize here, we could see WTI go down to $47.75.”

With around 10,000 people infected, the World Health Organization has declared the coronavirus outbreak a global health emergency. U.S. airlines halted flights to China, Russia closed border crossings, and Chinese authorities locked down cities and shut at least two-thirds of the country’s economy.

Kazakh President says planning $11bn joint projects with the #UAE - Arabianbusiness

Kazakh President says planning $11bn joint projects with the UAE - Arabianbusiness:

The UAE and Kazakhstan plan to implement joint investment projects worth about $11 billion, the country's President has announced during a visit to Abu Dhabi.

Kassym-Jomart Tokayev said the two countries have maintained "exemplary relations and cooperation in many respects" in comments published by state news agency WAM.

Tokayev made the remarks during a keynote speech at the UAE-Kazakhstan business meeting in Abu Dhabi, which was organised by the Abu Dhabi Chamber of Commerce and Industry.

"I am very pleased to visit your beautiful country. It can be said with confidence that over 28 years we have established exemplary relations between our states and our people. Regular and comprehensive dialogue at the highest level has served as a solid foundation for our relations," he said.

Speed of reforms sweeping through #SaudiArabia divides opinion - Arabianbusiness

Speed of reforms sweeping through Saudi Arabia divides opinion - Arabianbusiness:

Social changes sweeping Saudi Arabia have been embraced by many but Ibrahim, a middle-aged teacher, frowns as he rejects the "blistering and shocking" reforms that are breaking long-held taboos.

The kingdom's ambitious de facto ruler, Crown Prince Mohammed bin Salman, has introduced multiple economic and social innovations in a kingdom where public life was once severely curtailed by uncompromising religious police.

Under the reform drive, women are allowed to take the wheel of cars after a decades-old driving ban was scrapped, and permitted to go to stadiums to watch sports and concerts.

Cinemas were reopened after many years of closures, noisy parties are permitted, and authorities turn a blind eye as shops remain open during prayers times -- a grave offence in the past.

Aston Martin is a ‘gem that needs love’, says billionaire rescuer | Financial Times

Aston Martin is a ‘gem that needs love’, says billionaire rescuer | Financial Times:

Canadian Formula 1 billionaire Lawrence Stroll said Aston Martin was a “gem that needs love” after leading a £500m rescue of the luxury carmaker.

Following a board meeting that ran into the early hours of Friday morning, Aston’s board opted for the deal from Mr Stroll’s consortium over a rival offer from Chinese carmaker Geely. 


Mr Stroll’s consortium will inject £182m for a 16.7 per cent stake in Aston at a price of £4 per share. Aston will raise a further £318m through a rights issue backed by two of its largest shareholders, Italian group Investindustrial and the Kuwaiti investment fund.

Aston, whose cars are a staple of the James Bond film franchise, has been forced to seek new money less than 18 months after an initial public offering in London that valued the group at £4.3bn. Its time on the public markets has been marked by profit warnings and a collapsing share price. The company’s stock surged almost 20 per cent on Friday.

Oil slides as virus outbreak shakes economic growth predictions - Reuters

Oil slides as virus outbreak shakes economic growth predictions - Reuters:

Oil prices fell on Friday and were on track for a fourth straight weekly loss on mounting worries about economic damage from the coronavirus that has spread from China to around 20 countries, killing more than 200 people.

Prices briefly found support after Russian Energy Minister Alexander Novak said Russia was ready to bring forward a meeting of OPEC and its allies to February from March to address a possible hit to global oil demand from the virus. [nL8N2A067O]

Novak said he was in discussions with OPEC leader Saudi Arabia and that the oil-producing nations would need several more days to assess the impact and decide on the date of the meeting.

“The cartel stands ready to act again if necessary but may accept the short-term pain for now on the expectation that the economic consequences won’t be as bad as people fear and (the) price will bounce back to more acceptable levels on its own,” said Craig Erlam, senior market analyst at OANDA.

Brent crude LCOc1 fell 13 cents to settle at $58.16 a barrel and was down about 4% on the week.

U.S. West Texas Intermediate (WTI) CLc1 fell 58 cents to end the session at $51.56 a barrel, down 4.8% on the week. During the session, prices sank to as low as $50.97 a barrel, the lowest since early August.