Oil falls 1% as Russia needs time to mull more OPEC+ supply cuts - Reuters:
Oil prices fell 1% on Friday as Russia said it needed more time before committing to output cuts sought by other large producers while the coronavirus outbreak fanned worries about global crude demand.
Oil prices posted their fifth straight weekly decline, as speculators have backed away due to weaker consumption figures and expectations that the coronavirus, which has killed more than 600 people, will remain a drag on demand.
Brent crude LCOc1 futures lost 46 cents, or 0.8%, to settle at $54.47 a barrel. Brent sank 6.3% for the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 63 cents, or 1.2%, to settle at $50.32 a barrel. The contract lost 2.4% for the week.
Friday 7 February 2020
Oil Set For Fifth Consecutive Weekly Drop As Coronavirus Hits Demand | OilPrice.com
Oil Set For Fifth Consecutive Weekly Drop As Coronavirus Hits Demand | OilPrice.com:
Oil prices were on track for a fifth weekly decline early on Friday, weighed down by the loss of demand in China amid the coronavirus outbreak while OPEC and Russia scramble to come up with a unified position on how to contain the price slide.
At 7:07 a.m. EDT on Friday, WTI Crude was down 0.67 percent at $50.61 while Brent Crude traded down 0.44 percent at $54.67. Oil prices were on course for the longest run of weekly declines since November 2018, according to Bloomberg estimates.
This week was yet another week in which the market was focused on the demand destruction the deadly virus is causing with all the travel restrictions and thousands of canceled flights to, from, and within China.
Due to weak fuel demand and depressed industrial activity, Chinese refiners—from the biggest refiner in Asia, Sinopec, to the independent refiners in Shandong—are cutting refinery runs, while commodity trading houses and oil majors are scrambling to find spot buyers for crude oil outside China.
Oil prices were on track for a fifth weekly decline early on Friday, weighed down by the loss of demand in China amid the coronavirus outbreak while OPEC and Russia scramble to come up with a unified position on how to contain the price slide.
At 7:07 a.m. EDT on Friday, WTI Crude was down 0.67 percent at $50.61 while Brent Crude traded down 0.44 percent at $54.67. Oil prices were on course for the longest run of weekly declines since November 2018, according to Bloomberg estimates.
This week was yet another week in which the market was focused on the demand destruction the deadly virus is causing with all the travel restrictions and thousands of canceled flights to, from, and within China.
Due to weak fuel demand and depressed industrial activity, Chinese refiners—from the biggest refiner in Asia, Sinopec, to the independent refiners in Shandong—are cutting refinery runs, while commodity trading houses and oil majors are scrambling to find spot buyers for crude oil outside China.
Coronavirus triggers turmoil in global gas market | Financial Times
Coronavirus triggers turmoil in global gas market | Financial Times:
The coronavirus outbreak has thrown the global gas market into turmoil with Chinese importers threatening to cancel up to 70 per cent of seaborne imports in February as demand collapses and companies struggle to staff ports.
The move by China, the world’s second-largest importer of liquefied natural gas, has sent prices to their lowest level on record and sparked a row with suppliers, which claim the Chinese companies are breaching their contracts to secure lower prices on the spot market.
The stand-off is the latest sign of the economic damage being wreaked by the coronavirus outbreak, which is expected to curtail global growth as large parts of the world’s second-largest economy essentially are in lockdown.
Lower gas prices are a potential boon for manufacturers and consumers but a problem for energy companies, which have warned of a big hit to profits in the first half of this year.
The coronavirus outbreak has thrown the global gas market into turmoil with Chinese importers threatening to cancel up to 70 per cent of seaborne imports in February as demand collapses and companies struggle to staff ports.
The move by China, the world’s second-largest importer of liquefied natural gas, has sent prices to their lowest level on record and sparked a row with suppliers, which claim the Chinese companies are breaching their contracts to secure lower prices on the spot market.
The stand-off is the latest sign of the economic damage being wreaked by the coronavirus outbreak, which is expected to curtail global growth as large parts of the world’s second-largest economy essentially are in lockdown.
Lower gas prices are a potential boon for manufacturers and consumers but a problem for energy companies, which have warned of a big hit to profits in the first half of this year.
How to Be in the Richest 1% Around the World - Bloomberg
How to Be in the Richest 1% Around the World - Bloomberg:
The “top 1%” is the symbol of wealth and power thanks to a protest movement. Since Occupy Wall Street popularized the term almost a decade ago, inequality has surged, and this exclusive group has only gotten richer and more influential.
Yet the top 1% covers a wide span, from prosperous professionals to billionaires with more wealth than many nations. And the difficulty of making the cut varies greatly depending on where you live.
To join the group in the oil-rich United Arab Emirates requires more than $900,000, or 12 times more income than in India, a developing market so populous that the top 1% includes more than 13 million souls. In much of the developed world, an income of $200,000 to $300,000 gets you in the top 1%.
The “top 1%” is the symbol of wealth and power thanks to a protest movement. Since Occupy Wall Street popularized the term almost a decade ago, inequality has surged, and this exclusive group has only gotten richer and more influential.
Yet the top 1% covers a wide span, from prosperous professionals to billionaires with more wealth than many nations. And the difficulty of making the cut varies greatly depending on where you live.
To join the group in the oil-rich United Arab Emirates requires more than $900,000, or 12 times more income than in India, a developing market so populous that the top 1% includes more than 13 million souls. In much of the developed world, an income of $200,000 to $300,000 gets you in the top 1%.
OPEC+: Russia's Response to Oil Output Cuts Tests Saudi Arabia - Bloomberg
OPEC+: Russia's Response to Oil Output Cuts Tests Saudi Arabia - Bloomberg:
Revenge, they say, is a dish best served cold.
That seems to be the view of the Russian government, as it contemplates how to respond to pleas that it join Saudi Arabia and other OPEC members in cutting oil production. Many expect the coronavirus outbreak to trigger a demand slump.
Talks between Russia and the Organization of Petroleum Exporting Countries have dragged on all week in Vienna as Moscow has resisted signing on to output reductions, delegates told Bloomberg News. With the market already looking well-supplied, OPEC's technical experts are said to have recommended a cut of 600,000 barrels a day — considerably deeper than internal analysis that the virus will reduce demand by around 400,000 daily barrels for about six months.
Russia has its own immediate reasons for standing pat. The country’s oil output last year hit its highest level since the days of the Soviet Union, reaching around 11.25 million barrels a day. What’s more, it’s now in a situation that historically only Saudi Arabia and a few other Gulf countries have enjoyed, with spare capacity on hand — in the region of 500,000 barrels at day, enough to give it a role as a swing producer for the wo
Revenge, they say, is a dish best served cold.
That seems to be the view of the Russian government, as it contemplates how to respond to pleas that it join Saudi Arabia and other OPEC members in cutting oil production. Many expect the coronavirus outbreak to trigger a demand slump.
Talks between Russia and the Organization of Petroleum Exporting Countries have dragged on all week in Vienna as Moscow has resisted signing on to output reductions, delegates told Bloomberg News. With the market already looking well-supplied, OPEC's technical experts are said to have recommended a cut of 600,000 barrels a day — considerably deeper than internal analysis that the virus will reduce demand by around 400,000 daily barrels for about six months.
Russia has its own immediate reasons for standing pat. The country’s oil output last year hit its highest level since the days of the Soviet Union, reaching around 11.25 million barrels a day. What’s more, it’s now in a situation that historically only Saudi Arabia and a few other Gulf countries have enjoyed, with spare capacity on hand — in the region of 500,000 barrels at day, enough to give it a role as a swing producer for the wo
As Liquidation Threat Looms, Jet Airways Bidders Still Not Ready - Bloomberg
As Liquidation Threat Looms, Jet Airways Bidders Still Not Ready - Bloomberg:
Bankrupt carrier Jet Airways India Ltd., once the nation’s biggest by market value, faces fresh warning signs as a deadline to avoid liquidation looms.
Creditors will likely be forced into extending a Feb. 17 deadline for the sale of the airline as the shortlisted bidders have yet to form bidding groups, according to people familiar with the matter. Time is tight as creditors may have to push the company into liquidation if there is no resolution by around mid March.
In a stunning fall, the Mumbai-based airline was forced to suspend operations last year after it fell victim to a cut-throat price war initiated by a slew of budget carriers. It has missed payments to banks, staff and lessors.
The two shortlisted bidders Synergy Group Corp. and Prudent ARC Ltd. had both submitted expressions of interest in January, but haven’t yet cobbled together bidding groups.. Synergy is seeking a local partner for its bid, while Prudent is looking to team up with a company with international aviation experience, the people said, asking not to be identified because the matter is private.
Bankrupt carrier Jet Airways India Ltd., once the nation’s biggest by market value, faces fresh warning signs as a deadline to avoid liquidation looms.
Creditors will likely be forced into extending a Feb. 17 deadline for the sale of the airline as the shortlisted bidders have yet to form bidding groups, according to people familiar with the matter. Time is tight as creditors may have to push the company into liquidation if there is no resolution by around mid March.
In a stunning fall, the Mumbai-based airline was forced to suspend operations last year after it fell victim to a cut-throat price war initiated by a slew of budget carriers. It has missed payments to banks, staff and lessors.
The two shortlisted bidders Synergy Group Corp. and Prudent ARC Ltd. had both submitted expressions of interest in January, but haven’t yet cobbled together bidding groups.. Synergy is seeking a local partner for its bid, while Prudent is looking to team up with a company with international aviation experience, the people said, asking not to be identified because the matter is private.
#UAE banks resilient despite $91bln property exposure | ZAWYA MENA Edition
UAE banks resilient despite $91bln property exposure | ZAWYA MENA Edition:
All rated UAE banks are poised to maintain stable credit profiles in 2020, barring any unexpected increase in geopolitical risk or a major fall in oil prices, thanks to their resilient financial performance, analysts at S&P Global Ratings said. Asset-quality indicators of the banks also remain buoyant despite a more than 35 per cent decline in real estate prices since mid-year 2014 and banks' somewhat large real estate exposure, the ratings agency said. The real estate exposure of UAE banks is about 20 per cent of total lending or Dh 333 billion as of September 30.
"If the real estate correction is not followed by a stabilisation of prices in the next 24 months, we might see a bigger effect on banks' asset quality. Overall, we expect banks' cost of risk to increase slightly in 2020 to about 120 bps, compared with 110 bps in 2019. Banks in the UAE are now in a better position than the 2009-2010 crisis, because they have built sufficient loan-loss reserves since then," S&P Global Ratings said.
In 2019, despite geopolitical headwinds, all leading banks in the UAE recorded robust performances, with Emirates NBD, Dubai's largest bank, posting a 44 per cent jump in net profit at Dh14.5 billion, up from the Dh10 billion in 2018. First Abu Dhabi Bank, UAE's top lender, announced a modest four per cent increase in net profit to $3.4 billion compared to $3.27 billion in 2018.
All rated UAE banks are poised to maintain stable credit profiles in 2020, barring any unexpected increase in geopolitical risk or a major fall in oil prices, thanks to their resilient financial performance, analysts at S&P Global Ratings said. Asset-quality indicators of the banks also remain buoyant despite a more than 35 per cent decline in real estate prices since mid-year 2014 and banks' somewhat large real estate exposure, the ratings agency said. The real estate exposure of UAE banks is about 20 per cent of total lending or Dh 333 billion as of September 30.
"If the real estate correction is not followed by a stabilisation of prices in the next 24 months, we might see a bigger effect on banks' asset quality. Overall, we expect banks' cost of risk to increase slightly in 2020 to about 120 bps, compared with 110 bps in 2019. Banks in the UAE are now in a better position than the 2009-2010 crisis, because they have built sufficient loan-loss reserves since then," S&P Global Ratings said.
In 2019, despite geopolitical headwinds, all leading banks in the UAE recorded robust performances, with Emirates NBD, Dubai's largest bank, posting a 44 per cent jump in net profit at Dh14.5 billion, up from the Dh10 billion in 2018. First Abu Dhabi Bank, UAE's top lender, announced a modest four per cent increase in net profit to $3.4 billion compared to $3.27 billion in 2018.
#AbuDhabi property prices fall by 11% in 2019 - Arabianbusiness
Abu Dhabi property prices fall by 11% in 2019 - Arabianbusiness:
Abu Dhabi property prices fell by 11 percent in 2019 while rental rates dropped by 9.3 percent, according to a new report by consultants ValuStrat.
Its fourth quarter 2019 Abu Dhabi real estate review also showed that real estate values were down by 2.6 percent compared to the previous quarter.
The ValuStrat Price Index (VPI) for capital values in Abu Dhabi’s residential investment zones for the fourth quarter declined to 69.1 points.
The weighted average residential value in Q4 2019 was AED9,246 per sq m.
Ready properties in Al Reem Island, Al Muneera, Al Reef and Hydra Village saw double digit declines in capital values since Q4 2018, ValuStrat said in the report.
Abu Dhabi property prices fell by 11 percent in 2019 while rental rates dropped by 9.3 percent, according to a new report by consultants ValuStrat.
Its fourth quarter 2019 Abu Dhabi real estate review also showed that real estate values were down by 2.6 percent compared to the previous quarter.
The ValuStrat Price Index (VPI) for capital values in Abu Dhabi’s residential investment zones for the fourth quarter declined to 69.1 points.
The weighted average residential value in Q4 2019 was AED9,246 per sq m.
Ready properties in Al Reem Island, Al Muneera, Al Reef and Hydra Village saw double digit declines in capital values since Q4 2018, ValuStrat said in the report.
Oil falls as Russia needs time on more OPEC+ cuts - Reuters
Oil falls as Russia needs time on more OPEC+ cuts - Reuters:
Oil prices slipped on Friday as Russia said it would need more time before committing to output cuts along with OPEC and other producers amid falling demand for crude as China battles the coronavirus epidemic.
Brent crude LCOc1 futures fell 49 cents, or 0.9%, to $54.44 a barrel by 1305 GMT, and were heading for a fifth weekly loss due to persistent concerns over the impact of the virus.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 53 cents, or 1%, at $50.42 a barrel, also heading for a fifth consecutive week of losses.
Russian Foreign Minister Sergei Lavrov said on Thursday that Moscow supported cooperation with other producers, in remarks which appeared to boost prices in early trading.
Oil prices slipped on Friday as Russia said it would need more time before committing to output cuts along with OPEC and other producers amid falling demand for crude as China battles the coronavirus epidemic.
Brent crude LCOc1 futures fell 49 cents, or 0.9%, to $54.44 a barrel by 1305 GMT, and were heading for a fifth weekly loss due to persistent concerns over the impact of the virus.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 53 cents, or 1%, at $50.42 a barrel, also heading for a fifth consecutive week of losses.
Russian Foreign Minister Sergei Lavrov said on Thursday that Moscow supported cooperation with other producers, in remarks which appeared to boost prices in early trading.
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