OPEC+ Close to Dropping Early Meeting Idea as Russia Balks - Bloomberg:
OPEC and its allies were close to abandoning any plans for an emergency meeting this month to consider fresh production cutbacks because of the coronavirus outbreak.
While Saudi Arabia hasn’t wholly given up on its push for the gathering, the OPEC+ alliance will more likely stick to a scheduled meeting in March as the idea hasn’t so far won over Russia, several delegates from the group said.
The Saudis had been pushing for the emergency meeting as the toll on oil demand from the global epidemic already appears to be severe. World oil consumption will decline this quarter for the first time in more than a decade as the virus reduces travel and economic activity in China, according to the International Energy Agency.
Though an OPEC+ committee last week recommended additional collective cutbacks of 600,000 barrels a day — on top of the 2.1 million already being made — Russia has yet to fully endorse the plan.
Friday 14 February 2020
Oil rises over 1% on hopes demand will rebound from coronavirus effect - Reuters
Oil rises over 1% on hopes demand will rebound from coronavirus effect - Reuters:
Oil prices rose over 1% on Friday, posting their first weekly gain since early January as investors bet the economic impact of the coronavirus would be short-lived and hoped for further Chinese central bank stimulus to tackle any slowdown.
Brent crude LCOc1 rose 98 cents, or 1.74%, to settle at $57.32 a barrel. It rose 5.23% since last Friday, its first weekly increase in six weeks.
U.S. West Texas Intermediate (WTI) futures CLc1 gained 63 cents, or 1.23%, to settle at $52.05 a barrel. The weekly rise was 3.44%.
“The massive liquidation process that drove prices sharply lower last month has likely been completed and is being replaced by accumulation as well as short-covering from speculators who have recently entered the market,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Oil prices rose over 1% on Friday, posting their first weekly gain since early January as investors bet the economic impact of the coronavirus would be short-lived and hoped for further Chinese central bank stimulus to tackle any slowdown.
Brent crude LCOc1 rose 98 cents, or 1.74%, to settle at $57.32 a barrel. It rose 5.23% since last Friday, its first weekly increase in six weeks.
U.S. West Texas Intermediate (WTI) futures CLc1 gained 63 cents, or 1.23%, to settle at $52.05 a barrel. The weekly rise was 3.44%.
“The massive liquidation process that drove prices sharply lower last month has likely been completed and is being replaced by accumulation as well as short-covering from speculators who have recently entered the market,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Oil prices rise 1%, on course for weekly gain - Reuters
Oil prices rise 1%, on course for weekly gain - Reuters:
Oil prices rose on Friday and held on track for their first weekly gain since early January as investors bet the economic impact of the coronavirus would be short-lived and hoped for further Chinese central bank stimulus to tackle any slowdown.
Brent crude LCOc1 was up 57 cents or 1% at $56.91 a barrel by 1024 GMT. It has risen 4.4% since last Friday, its first weekly increase in six weeks.
U.S. West Texas Intermediate (WTI) CLc1 was 48 cents or 0.9% higher at $51.90 a barrel, up 3.2% for the week.
“It would seem in our view that the oil price is on a more positive footing in the past couple of days, with improved sentiment reflected in Asian equity prices holding up,” said BNP Paribas analyst Harry Tchilinguirian.
Oil prices rose on Friday and held on track for their first weekly gain since early January as investors bet the economic impact of the coronavirus would be short-lived and hoped for further Chinese central bank stimulus to tackle any slowdown.
Brent crude LCOc1 was up 57 cents or 1% at $56.91 a barrel by 1024 GMT. It has risen 4.4% since last Friday, its first weekly increase in six weeks.
U.S. West Texas Intermediate (WTI) CLc1 was 48 cents or 0.9% higher at $51.90 a barrel, up 3.2% for the week.
“It would seem in our view that the oil price is on a more positive footing in the past couple of days, with improved sentiment reflected in Asian equity prices holding up,” said BNP Paribas analyst Harry Tchilinguirian.
#Iran’s Economy Is Bleak. Its Stock Market Is Soaring. - The New York Times
Iran’s Economy Is Bleak. Its Stock Market Is Soaring. - The New York Times:
He looked past Iran’s cratering economy, ignored the unraveling nuclear deal and tuned out the bellicose threats of war from President Trump. Maciej Wojtal was focused on a mundane yet crucial question: Where were Iran’s people going to buy their chocolate biscuits?
Iranians were being forced to economize, trading lunch at kebab restaurants for cheap pleasures like sugary snacks. Mr. Wojtal, who runs an investment fund devoted to Iranian stocks, identified a company that was poised to benefit: Gorji Biscuit was well positioned to raise prices, given that foreign competitors were forced to steer clear of Iran because of American sanctions that restricted commerce with the country. He bought its shares and watched their value multiply more than fivefold over the course of 2019.
“You have companies that actually benefit from sanctions,” Mr. Wojtal said. “Whoever had to compete with imported goods, he’s better off.”
Born and raised in Poland, Mr. Wojtal, 36, oversees the only foreign fund that is focused on buying stocks that trade on two exchanges in Tehran. This may seem a forbidding realm of finance, a marketplace overseen by an Iranian government under siege by sanctions. To avoid American-enforced prohibitions on using the dollar to transact with Iran, Mr. Wojtal’s fund is administered in the Netherlands and operates entirely in euros.
He looked past Iran’s cratering economy, ignored the unraveling nuclear deal and tuned out the bellicose threats of war from President Trump. Maciej Wojtal was focused on a mundane yet crucial question: Where were Iran’s people going to buy their chocolate biscuits?
Iranians were being forced to economize, trading lunch at kebab restaurants for cheap pleasures like sugary snacks. Mr. Wojtal, who runs an investment fund devoted to Iranian stocks, identified a company that was poised to benefit: Gorji Biscuit was well positioned to raise prices, given that foreign competitors were forced to steer clear of Iran because of American sanctions that restricted commerce with the country. He bought its shares and watched their value multiply more than fivefold over the course of 2019.
“You have companies that actually benefit from sanctions,” Mr. Wojtal said. “Whoever had to compete with imported goods, he’s better off.”
Born and raised in Poland, Mr. Wojtal, 36, oversees the only foreign fund that is focused on buying stocks that trade on two exchanges in Tehran. This may seem a forbidding realm of finance, a marketplace overseen by an Iranian government under siege by sanctions. To avoid American-enforced prohibitions on using the dollar to transact with Iran, Mr. Wojtal’s fund is administered in the Netherlands and operates entirely in euros.
Top NMC shareholder Muhairi quits board amid turmoil | Financial Times
Top NMC shareholder Muhairi quits board amid turmoil | Financial Times:
Khalifa al-Muhairi, one of NMC’s controlling shareholders, has resigned from the board of the healthcare group after a turbulent few months in which the company’s finances and ownership structure have been questioned.
The largest private healthcare provider in the United Arab Emirates said Mr Muhairi, the executive vice-chairman, stepped down on Friday. Along with India-born founder BR Shetty, he had been asked to step back from board duties earlier this week when it was disclosed that their shareholdings had been inaccurately reported.
That prompted UK regulators to start an investigation into the size of the shareholdings of Messrs Shetty and Muhairi, as well as the other Emirati controlling partner, Saeed al-Qebaisi.
Abu Dhabi-based NMC has been in turmoil since short-seller Muddy Waters questioned the group’s finances, raising doubts about its debt and asset valuations. NMC, which denied the charges, has commissioned former FBI director Louis Freeh to investigate the allegations. Its share price has since declined almost 70 per cent.
Khalifa al-Muhairi, one of NMC’s controlling shareholders, has resigned from the board of the healthcare group after a turbulent few months in which the company’s finances and ownership structure have been questioned.
The largest private healthcare provider in the United Arab Emirates said Mr Muhairi, the executive vice-chairman, stepped down on Friday. Along with India-born founder BR Shetty, he had been asked to step back from board duties earlier this week when it was disclosed that their shareholdings had been inaccurately reported.
That prompted UK regulators to start an investigation into the size of the shareholdings of Messrs Shetty and Muhairi, as well as the other Emirati controlling partner, Saeed al-Qebaisi.
Abu Dhabi-based NMC has been in turmoil since short-seller Muddy Waters questioned the group’s finances, raising doubts about its debt and asset valuations. NMC, which denied the charges, has commissioned former FBI director Louis Freeh to investigate the allegations. Its share price has since declined almost 70 per cent.
#Kuwait, #Saudi to Resume Production From Khafji by Month-End - Bloomberg
Kuwait, Saudi to Resume Production From Khafji by Month-End - Bloomberg:
Kuwait and Saudi Arabia will resume oil production from a shared field by the end of this month, more than five years after a dispute halted supply.
The restart of the offshore Khafji field will bring additional production capacity to a market that’s already dealing with excess oil supply as the deadly coronavirus hits demand. The countries, which also authorized the resumption of the Wafra field in their shared Neutral Zone effective Sunday, have said the projects are unlikely to add significant amounts of crude within the duration of OPEC’s deal to curb output, which runs until the end of March.
The Neutral Zone’s oil fields can pump about 500,000 barrels a day -- more than the production of each of the three smallest members of the Organization of Petroleum Countries last month. Saudi Arabia and Kuwait reached an agreement in December to resume output in the barren strip of desert straddling their nations -- a relic of the time when European powers drew implausible ruler-straight borders across the Middle East.
Kuwait and Saudi Arabia will resume oil production from a shared field by the end of this month, more than five years after a dispute halted supply.
The restart of the offshore Khafji field will bring additional production capacity to a market that’s already dealing with excess oil supply as the deadly coronavirus hits demand. The countries, which also authorized the resumption of the Wafra field in their shared Neutral Zone effective Sunday, have said the projects are unlikely to add significant amounts of crude within the duration of OPEC’s deal to curb output, which runs until the end of March.
The Neutral Zone’s oil fields can pump about 500,000 barrels a day -- more than the production of each of the three smallest members of the Organization of Petroleum Countries last month. Saudi Arabia and Kuwait reached an agreement in December to resume output in the barren strip of desert straddling their nations -- a relic of the time when European powers drew implausible ruler-straight borders across the Middle East.
UPDATE 1- #Lebanon may need 70% debt write off, 50% currency drop, say economists - Reuters
UPDATE 1-Lebanon may need 70% debt write off, 50% currency drop, say economists - Reuters:
Lebanon’s bond holders may have to write off 70% of their investments and the value of the country’s currency might be cut in half in an International Monetary Fund rescue, analysts crunching the numbers on its debt woes estimate.
Lebanon formally requested the IMF’s technical help on Wednesday as it tries to avoid a full-blown economic collapse. Whether that turns into a formal bailout remains to be seen, but analysts have started to evaluate possibilities.
“Past experience suggests that this will involve haircuts of up to 70%,” Capital Economics’ Jason Tuvey wrote in a note, referring to debt write-offs.
That would wipe out banks’ capital, and the cost of re-capitalising them would come to around 25% of Lebanon’s gross domestic product, though IMF technical assistance could help limit the strains.
Lebanon’s bond holders may have to write off 70% of their investments and the value of the country’s currency might be cut in half in an International Monetary Fund rescue, analysts crunching the numbers on its debt woes estimate.
Lebanon formally requested the IMF’s technical help on Wednesday as it tries to avoid a full-blown economic collapse. Whether that turns into a formal bailout remains to be seen, but analysts have started to evaluate possibilities.
“Past experience suggests that this will involve haircuts of up to 70%,” Capital Economics’ Jason Tuvey wrote in a note, referring to debt write-offs.
That would wipe out banks’ capital, and the cost of re-capitalising them would come to around 25% of Lebanon’s gross domestic product, though IMF technical assistance could help limit the strains.
Oil storage firm Brooge plans major expansion of #Fujairah capacity - Arabianbusiness
Oil storage firm Brooge plans major expansion of Fujairah capacity - Arabianbusiness:
Oil storage firm Brooge Holdings has signed a land lease agreement with the Fujairah Oil Industrial Zone (FOIZ) for an additional 450,000 sq m of space, as part of plans to expand its operations at the UAE’s East Coast hub.
Brooge Holdings, which is listed on the US Nasdaq, operates in Fujairah through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company (BPGIC).
The agreement covers a prime plot of land on which BPGIC plans to develop its phase 3 facility which could add storage and services capacity of up to three and half times the current size, state news agency WAM reported.
The expansion of storage and refining capacity will complement the facilities in its phase 1 and 2 developments. Initial studies indicate that the land could house up to approximately 3.5 million cubic metres of storage tanks and a refinery with a capacity of up to 180,000 barrels per day.
Oil storage firm Brooge Holdings has signed a land lease agreement with the Fujairah Oil Industrial Zone (FOIZ) for an additional 450,000 sq m of space, as part of plans to expand its operations at the UAE’s East Coast hub.
Brooge Holdings, which is listed on the US Nasdaq, operates in Fujairah through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company (BPGIC).
The agreement covers a prime plot of land on which BPGIC plans to develop its phase 3 facility which could add storage and services capacity of up to three and half times the current size, state news agency WAM reported.
The expansion of storage and refining capacity will complement the facilities in its phase 1 and 2 developments. Initial studies indicate that the land could house up to approximately 3.5 million cubic metres of storage tanks and a refinery with a capacity of up to 180,000 barrels per day.
#UAE retail giant says to open 20 more hypermarkets by 2022 - Arabianbusiness
UAE retail giant says to open 20 more hypermarkets by 2022 - Arabianbusiness:
UAE retail giant Lulu Group has announced that it will open 20 hypermarkets within the next two years in the country.
According to Yusuff Ali MA, chairman and managing director of Lulu Group International, the new stores will open in Khalifa City, Al Falah, Riyadh City in Abu Dhabi, Silicon Oasis, Dubai South Mall in Dubai, Muwaila, Saja, Umm Al Tarafa in Sharjah.
He said: "[The] national economy in the UAE depends on several factors that include solid foundations, an increase of purchasing power, and the state of consumer optimism as revealed by the latest indicators and studies. This has encouraged us to further expand in the country."
As part of the expansion strategy, Lulu opened its first hypermarket in 2020 in Dubai South’s new lifestyle destination, Festival Plaza Mall.
UAE retail giant Lulu Group has announced that it will open 20 hypermarkets within the next two years in the country.
According to Yusuff Ali MA, chairman and managing director of Lulu Group International, the new stores will open in Khalifa City, Al Falah, Riyadh City in Abu Dhabi, Silicon Oasis, Dubai South Mall in Dubai, Muwaila, Saja, Umm Al Tarafa in Sharjah.
He said: "[The] national economy in the UAE depends on several factors that include solid foundations, an increase of purchasing power, and the state of consumer optimism as revealed by the latest indicators and studies. This has encouraged us to further expand in the country."
As part of the expansion strategy, Lulu opened its first hypermarket in 2020 in Dubai South’s new lifestyle destination, Festival Plaza Mall.
Determined: Ethiopian female migrants risk all for #Saudi
Determined: Ethiopian female migrants risk all for Saudi:
They are among the most vulnerable of the tens of thousands of migrants making the long and perilous trek from Ethiopia to Saudi Arabia in search of jobs: Women and girls as young as 13. They endure hunger and exhaustion walking through deserts, the dangers of a sea crossing and, often, rape and torture at the hands of traffickers.
Still, they are fearless and determined to reach the oil-rich kingdom and work as maids and domestic servants in Saudi Arabia’s lavish households. Dreaming of improving their lives, many of them sneak away from home in the night because their parents don’t want them to take the risk.
Around 150,000 migrants made the journey each of the past two years, and the proportion of women and girls is rising. According to the U.N.’s International Organization for Migration, the number of women making the trip jumped from nearly 15,000 in 2018 to more than 22,000 in 2019. The number of girls had an enormous increase, quadrupling from 2,075 to 8,360.
They are among the most vulnerable of the tens of thousands of migrants making the long and perilous trek from Ethiopia to Saudi Arabia in search of jobs: Women and girls as young as 13. They endure hunger and exhaustion walking through deserts, the dangers of a sea crossing and, often, rape and torture at the hands of traffickers.
Still, they are fearless and determined to reach the oil-rich kingdom and work as maids and domestic servants in Saudi Arabia’s lavish households. Dreaming of improving their lives, many of them sneak away from home in the night because their parents don’t want them to take the risk.
Around 150,000 migrants made the journey each of the past two years, and the proportion of women and girls is rising. According to the U.N.’s International Organization for Migration, the number of women making the trip jumped from nearly 15,000 in 2018 to more than 22,000 in 2019. The number of girls had an enormous increase, quadrupling from 2,075 to 8,360.
Oil prices stabilize, set for weekly gain on hopes for supply cut - Reuters
Oil prices stabilize, set for weekly gain on hopes for supply cut - Reuters:
Oil prices edged higher Friday, on track for their first weekly gain in six weeks, backed by expectations that major producers will implement deeper output cuts to offset slowing demand in China caused by the coronavirus epidemic.
Brent crude futures LCOc1 were up 13 cents at $56.47 a barrel by 0731 GMT, after gaining 1% the previous session. Brent is 3.7% higher for the week, the first increase since the week of Jan. 3.
U.S. West Texas Intermediate (WTI) futures CLc1 were 14 cents higher at $51.56 a barrel. The contract rose 0.5% on Thursday and is now 2.4% higher for the week.
“Oil prices appear to have stabilized this week on optimism that OPEC+ will once again do whatever it takes to tighten output and on hope that the coronavirus peak is nearing,” said Edward Moya, senior market analyst at OANDA in New York.
Oil prices edged higher Friday, on track for their first weekly gain in six weeks, backed by expectations that major producers will implement deeper output cuts to offset slowing demand in China caused by the coronavirus epidemic.
Brent crude futures LCOc1 were up 13 cents at $56.47 a barrel by 0731 GMT, after gaining 1% the previous session. Brent is 3.7% higher for the week, the first increase since the week of Jan. 3.
U.S. West Texas Intermediate (WTI) futures CLc1 were 14 cents higher at $51.56 a barrel. The contract rose 0.5% on Thursday and is now 2.4% higher for the week.
“Oil prices appear to have stabilized this week on optimism that OPEC+ will once again do whatever it takes to tighten output and on hope that the coronavirus peak is nearing,” said Edward Moya, senior market analyst at OANDA in New York.