Oil prices rise as U.S. crude stocks build less than expected - Reuters:
Oil prices were up slightly on Thursday after the U.S. government reported a much smaller-than-anticipated rise in crude stocks, but gains were capped by worries about the spread of Coronavirus outside China.
U.S. Energy Information Administration (EIA) data showed crude inventories rose only 414,000 barrels last week, much less than the 2.5 million barrel build predicted by analysts in a Reuters poll.
However, scores of new coronavirus cases and a first death in South Korea fanned fears of global pandemic as research suggested it could be more contagious than previously thought.
Brent crude futures LCOc1 settled up 19 cents, or 0.32%, at $59.31 a barrel.
The front-month U.S. West Texas Intermediate (WTI) crude CLc1 futures contract, which expired Thursday, gained 49 cents, or 0.9%, to settle at $53.78 a barrel. The more-active second-month WTI benchmark CLc2 was up 45 cents, or 0.8%, at $53.94 a barrel.
Thursday 20 February 2020
Oil prices rise as U.S. crude stocks build less than expected - Reuters
Oil prices rise as U.S. crude stocks build less than expected - Reuters:
Oil prices rose on Thursday after the U.S. government reported a much smaller-than-anticipated rise in crude stocks, but gains were capped by worries about the spread of Coronavirus outside China.
Data from the U.S. Energy Information Administration (EIA) showed that crude inventories rose only 414,000 barrels last week, compared with expectations of a 2.5 million barrel rise from analysts in a Reuters poll.
However, scores of new coronavirus cases and a first death in South Korea fanned fears of global pandemic as research suggested it could be more contagious than previously thought.
Brent crude futures LCOc1 was up 46 cents, or 0.8%, at $59.58 a barrel by 12:20 a.m. ET (1720 GMT).
The front-month U.S. West Texas Intermediate (WTI) crude CLc1 futures contract, which expires Thursday, gained 63 cents, or 1.18%, to $53.92 a barrel. The more-active second-month WTI benchmark CLc2 was up 95 cents, or 0.7%, at $54.44 a barrel.
Oil prices rose on Thursday after the U.S. government reported a much smaller-than-anticipated rise in crude stocks, but gains were capped by worries about the spread of Coronavirus outside China.
Data from the U.S. Energy Information Administration (EIA) showed that crude inventories rose only 414,000 barrels last week, compared with expectations of a 2.5 million barrel rise from analysts in a Reuters poll.
However, scores of new coronavirus cases and a first death in South Korea fanned fears of global pandemic as research suggested it could be more contagious than previously thought.
Brent crude futures LCOc1 was up 46 cents, or 0.8%, at $59.58 a barrel by 12:20 a.m. ET (1720 GMT).
The front-month U.S. West Texas Intermediate (WTI) crude CLc1 futures contract, which expires Thursday, gained 63 cents, or 1.18%, to $53.92 a barrel. The more-active second-month WTI benchmark CLc2 was up 95 cents, or 0.7%, at $54.44 a barrel.
MIDEAST STOCKS-Most Gulf markets end higher, Doha Bank lifts #Qatar - Reuters
MIDEAST STOCKS-Most Gulf markets end higher, Doha Bank lifts Qatar - Reuters:
Most Gulf markets closed higher on Thursday amid rising
oil prices, with Qatar outperforming as Doha Bank jumped after releasing a
five-year plan.
Oil prices held near one-month highs on Thursday supported by China's
efforts to boost its economy, a drop in new coronavirus cases and supply
concerns in Venezuela and Libya.
Brent crude futures were up 7 cents at $59.19 a barrel by 0939 GMT.
In Qatar, the index closed up 0.6% with Doha Bank surging
9.6%, its biggest intra-day rise since May 2009, while Qatar Islamic Bank ended
up 0.8%.
Doha Bank released a supplementary release to its full year earnings saying
it has created a five years strategic plan to address challenging economic
conditions.
The bank shed over 17% in its last three sessions, after its 2019 net profit
dropped to 754 million riyals from 830 million riyals a year earlier.
Most Gulf markets closed higher on Thursday amid rising
oil prices, with Qatar outperforming as Doha Bank jumped after releasing a
five-year plan.
Oil prices held near one-month highs on Thursday supported by China's
efforts to boost its economy, a drop in new coronavirus cases and supply
concerns in Venezuela and Libya.
Brent crude futures were up 7 cents at $59.19 a barrel by 0939 GMT.
In Qatar, the index closed up 0.6% with Doha Bank surging
9.6%, its biggest intra-day rise since May 2009, while Qatar Islamic Bank ended
up 0.8%.
Doha Bank released a supplementary release to its full year earnings saying
it has created a five years strategic plan to address challenging economic
conditions.
The bank shed over 17% in its last three sessions, after its 2019 net profit
dropped to 754 million riyals from 830 million riyals a year earlier.
#UAE Central Bank's foreign currency balances reach $108bln in January | ZAWYA MENA Edition
UAE Central Bank's foreign currency balances reach $108bln in January | ZAWYA MENA Edition:
The foreign currency balance of the Central Bank of the UAE jumped to AED400 billion in January 2020, a rise of 1.3 percent compared to AED394.73 billion in December 2019.
The bank's statistics showed that the increase is due to the rise of balances and deposits held in banks abroad, which amounted to some AED369 billion, a growth of around one percent compared to AED365.68 billion in December 2019.
According to the criteria followed by the bank, its assets in foreign currencies do not include its reserves and the special drawing rights of the International Monetary Fund. The balance of the bank's securities held until maturity reached around AED11.47 billion in January while the balance of other foreign assets amounted to AED19.49 billion in the same month.
The foreign currency balance of the Central Bank of the UAE jumped to AED400 billion in January 2020, a rise of 1.3 percent compared to AED394.73 billion in December 2019.
The bank's statistics showed that the increase is due to the rise of balances and deposits held in banks abroad, which amounted to some AED369 billion, a growth of around one percent compared to AED365.68 billion in December 2019.
According to the criteria followed by the bank, its assets in foreign currencies do not include its reserves and the special drawing rights of the International Monetary Fund. The balance of the bank's securities held until maturity reached around AED11.47 billion in January while the balance of other foreign assets amounted to AED19.49 billion in the same month.
#SaudiArabia raises holdings of US Treasuries to $180bln in December | ZAWYA MENA Edition
Saudi Arabia raises holdings of US Treasuries to $180bln in December | ZAWYA MENA Edition:
Saudi Arabia raised its holdings of US Treasuries by $7.6 billion or 4.41% year-on-year during December 2019, according to data released by the US Department of the Treasury on Wednesday.
Total Saudi investments in US debt instruments climbed to $179.8 billion at the end of last December, compared to $172.2 billion at the end of 2018, data showed.
Month-on-month, the kingdom’s holdings of US Treasuries edged up by $100 million or 0.05% from $179.7 billion at the end of November 2019.
Saudi Arabia topped Arab countries in terms of investments in US bonds, followed by Kuwait and the UAE with $43.3 billion and $40.7 billion, respectively.
Globally, the kingdom came in the 12th place among holders of US Treasuries, topped by Japan, China, and the UK with $1,154.9 billion, $1,069.9 billion, and $332.6 billion, respectively.
Saudi Arabia raised its holdings of US Treasuries by $7.6 billion or 4.41% year-on-year during December 2019, according to data released by the US Department of the Treasury on Wednesday.
Total Saudi investments in US debt instruments climbed to $179.8 billion at the end of last December, compared to $172.2 billion at the end of 2018, data showed.
Month-on-month, the kingdom’s holdings of US Treasuries edged up by $100 million or 0.05% from $179.7 billion at the end of November 2019.
Saudi Arabia topped Arab countries in terms of investments in US bonds, followed by Kuwait and the UAE with $43.3 billion and $40.7 billion, respectively.
Globally, the kingdom came in the 12th place among holders of US Treasuries, topped by Japan, China, and the UK with $1,154.9 billion, $1,069.9 billion, and $332.6 billion, respectively.
DP World’s $5.15bn dividend to #Dubai World is credit positive for #UAE banks - The National
DP World’s $5.15bn dividend to Dubai World is credit positive for UAE banks - The National:
The Port and Free Zone World (PFZW) and DP World’s planned $5.15 billion (Dh18.91bn) dividend to Dubai World will be credit positive for UAE banks, Moody’s Investors Service said.
Dubai World is expected to use the money to repay around $5bn of the nearly $11bn in restructured debt it owes to UAE lenders and international investors.
“We expect varying credit-positive effects among creditor banks depending on whether and how much they contribute to financing the new $9bn of PFZW debt guaranteed by DP World,” Moody’s said. “For creditor banks that do not extend financing to DP World, the debt repayment would result in a net reduction in their exposure to the Dubai World Group, which is credit positive.”
Earlier this week, PFZW, which owns 80.45 per cent of DP World, offered DP World to buy out the 19.55 per cent of shares owned by the company's minority shareholders for around $2.7bn. The transaction would give PFZW full ownership of DP World, which will then be delisted from Nasdaq Dubai.
The Port and Free Zone World (PFZW) and DP World’s planned $5.15 billion (Dh18.91bn) dividend to Dubai World will be credit positive for UAE banks, Moody’s Investors Service said.
Dubai World is expected to use the money to repay around $5bn of the nearly $11bn in restructured debt it owes to UAE lenders and international investors.
“We expect varying credit-positive effects among creditor banks depending on whether and how much they contribute to financing the new $9bn of PFZW debt guaranteed by DP World,” Moody’s said. “For creditor banks that do not extend financing to DP World, the debt repayment would result in a net reduction in their exposure to the Dubai World Group, which is credit positive.”
Earlier this week, PFZW, which owns 80.45 per cent of DP World, offered DP World to buy out the 19.55 per cent of shares owned by the company's minority shareholders for around $2.7bn. The transaction would give PFZW full ownership of DP World, which will then be delisted from Nasdaq Dubai.
Oil Shrugs Off Virus to Eye $60 on Stimulus and Supply Threats - Bloomberg
Oil Shrugs Off Virus to Eye $60 on Stimulus and Supply Threats - Bloomberg:
Oil extended gains to an eighth day on optimism that China will be able to soften the demand hit from the coronavirus, even as Saudi Arabia signaled heightened concerns about the outbreak.
China’s banks cut benchmark borrowing costs for new corporate and household loans after Beijing slashed a range of policy rates this month in response to the epidemic that’s pushed refinery runs down by 25% this year. Saudi Energy Minister Prince Abdulaziz bin Salman compared the situation to a blaze that needs the fire brigade ahead of an OPEC+ meeting next month.
Oil extended gains to an eighth day on optimism that China will be able to soften the demand hit from the coronavirus, even as Saudi Arabia signaled heightened concerns about the outbreak.
China’s banks cut benchmark borrowing costs for new corporate and household loans after Beijing slashed a range of policy rates this month in response to the epidemic that’s pushed refinery runs down by 25% this year. Saudi Energy Minister Prince Abdulaziz bin Salman compared the situation to a blaze that needs the fire brigade ahead of an OPEC+ meeting next month.
#Dubai Islamic Bank hires banks to arrange dollar sukuk issuance - document - Reuters
Dubai Islamic Bank hires banks to arrange dollar sukuk issuance - document - Reuters:
Dubai Islamic Bank, the United Arab Emirates’ largest shariah-compliant bank, has hired regional and international banks to arrange a potential long five-year or seven-year dollar sukuk issuance, a document showed on Thursday.
The bank hired Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank to lead the potential Islamic bonds sale. They will arrange an investor call on Thursday and investor meetings in London on Tuesday.
Dubai Islamic Bank, the United Arab Emirates’ largest shariah-compliant bank, has hired regional and international banks to arrange a potential long five-year or seven-year dollar sukuk issuance, a document showed on Thursday.
The bank hired Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank to lead the potential Islamic bonds sale. They will arrange an investor call on Thursday and investor meetings in London on Tuesday.
#Sharjah's non-oil economy to remain 'below historical rates' | ZAWYA MENA Edition
Sharjah's non-oil economy to remain 'below historical rates' | ZAWYA MENA Edition:
Sharjah will not see a significant deterioration in its fiscal position this year, but it will continue to accumulate debt, and its non-oil economy will remain weak.
“Growth in the UAE’s and Sharjah’s non-oil economy [will]] remain materially below historical rates,” Moody’s Investors Service said on Tuesday.
The ratings agency has changed the emirate’s outlook from “negative” to “stable” but downgraded the long-term currency issuer ratings to Baa2 from A3, due to rising debt burden and weaker than expected financial strength.
“A significant widening of the fiscal deficit has contributed to a much faster than expected accumulation in debt last year and, in the absence of any fiscal consolidation measures, is likely to result in a markedly higher debt trajectory over the medium term, indicating weaker fiscal strength than Moddy’s had previously estimated,” Moody’s said.
Sharjah will not see a significant deterioration in its fiscal position this year, but it will continue to accumulate debt, and its non-oil economy will remain weak.
“Growth in the UAE’s and Sharjah’s non-oil economy [will]] remain materially below historical rates,” Moody’s Investors Service said on Tuesday.
The ratings agency has changed the emirate’s outlook from “negative” to “stable” but downgraded the long-term currency issuer ratings to Baa2 from A3, due to rising debt burden and weaker than expected financial strength.
“A significant widening of the fiscal deficit has contributed to a much faster than expected accumulation in debt last year and, in the absence of any fiscal consolidation measures, is likely to result in a markedly higher debt trajectory over the medium term, indicating weaker fiscal strength than Moddy’s had previously estimated,” Moody’s said.
Performance review: Impairment charges weigh heavily on top #UAE banks' Q4 profits | ZAWYA MENA Edition
Performance review: Impairment charges weigh heavily on top UAE banks' Q4 profits | ZAWYA MENA Edition:
Asset quality weakness leading to higher impairment charges weighed on the financial performance of the UAE’s largest banks in the fourth quarter of 2019.
Emirates NBD, First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Dubai Islamic Bank, accounting for nearly 70 per cent of total bank assets in the country altogether, all saw higher impairment charges.
Poor balance sheet performance, deteriorating asset quality and heavy provisions were the key highlights from the quarter, Monsef Morsey, co-head of research at CI Capital, told Zawya via email.
First Abu Dhabi Bank saw Q4 net profit rise 5 percent year-on-year (y-o-y) to 3.08 billion dirhams. Impairment charges rose 17 percent to 499 million dirhams.
Asset quality weakness leading to higher impairment charges weighed on the financial performance of the UAE’s largest banks in the fourth quarter of 2019.
Emirates NBD, First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Dubai Islamic Bank, accounting for nearly 70 per cent of total bank assets in the country altogether, all saw higher impairment charges.
Poor balance sheet performance, deteriorating asset quality and heavy provisions were the key highlights from the quarter, Monsef Morsey, co-head of research at CI Capital, told Zawya via email.
First Abu Dhabi Bank saw Q4 net profit rise 5 percent year-on-year (y-o-y) to 3.08 billion dirhams. Impairment charges rose 17 percent to 499 million dirhams.
#Saudi Prince Looks to G-20 to Shift Focus From Khashoggi, Yemen - Bloomberg
Saudi Prince Looks to G-20 to Shift Focus From Khashoggi, Yemen - Bloomberg:
Fiddling with a string of prayer beads, Saudi palace adviser Fahad Toonsi leaned forward in his seat to share a rare story from the crown prince’s inner circle.
With the kingdom about to embark on a year in the international spotlight as host of this year’s Group of 20 gatherings, Prince Mohammed bin Salman had rejected event logos designed by some of the world’s top agencies in his pursuit of something typically Saudi. Time was running out, Toonsi told his audience of top Saudi journalists, but the prince wouldn’t budge.
They eventually chose a symbol that riffs on a traditional form of weaving by a 28-year-old local designer, Mohammed Al-Hawas. Leading the grouping “is something that calls for great pride from us as Saudis,” explained Toonsi, who’s also the head of the kingdom’s G-20 secretariat.
The top-level attention to detail reflects what’s at stake for Saudi Arabia as it welcomes leaders from the world’s biggest economies after a period in which Prince Mohammed’s reformist zeal has often been overshadowed by outrage over a murdered critic, a crackdown on dissent denounced by human rights groups, and the kingdom’s leading role in the grinding five-year war in Yemen.
Fiddling with a string of prayer beads, Saudi palace adviser Fahad Toonsi leaned forward in his seat to share a rare story from the crown prince’s inner circle.
With the kingdom about to embark on a year in the international spotlight as host of this year’s Group of 20 gatherings, Prince Mohammed bin Salman had rejected event logos designed by some of the world’s top agencies in his pursuit of something typically Saudi. Time was running out, Toonsi told his audience of top Saudi journalists, but the prince wouldn’t budge.
They eventually chose a symbol that riffs on a traditional form of weaving by a 28-year-old local designer, Mohammed Al-Hawas. Leading the grouping “is something that calls for great pride from us as Saudis,” explained Toonsi, who’s also the head of the kingdom’s G-20 secretariat.
The top-level attention to detail reflects what’s at stake for Saudi Arabia as it welcomes leaders from the world’s biggest economies after a period in which Prince Mohammed’s reformist zeal has often been overshadowed by outrage over a murdered critic, a crackdown on dissent denounced by human rights groups, and the kingdom’s leading role in the grinding five-year war in Yemen.
Oil prices gain on supply threats; demand concerns from coronavirus ease - Reuters
Oil prices gain on supply threats; demand concerns from coronavirus ease - Reuters:
Oil prices climbed on Thursday, extending gains from the previous session, as the market shifted focus to supply disruptions, while demand concerns eased following a drop in new coronavirus cases at the epicenter of the outbreak.
Conflict in Libya that has led to a blockade of its ports and oilfields shows no signs of a resolution, while U.S. sanctions on a subsidiary of Russian state oil major Rosneft (ROSN.MM) could cut more Venezuelan crude from the market, rekindling global oil supply worries.
Brent crude futures LCOc1 were up 14 cents, or 0.2%, to $59.26 a barrel by 0745 GMT, after climbing to as high as $59.71 earlier in the day. The international benchmark rose 2.4% on Wednesday and is currently up for an eighth straight day.
West Texas Intermediate (WTI) crude futures CLc1 climbed 38 cents, or 0.7%, to $53.67 per barrel. WTI has risen in six out of seven sessions going back to Feb. 11.
Oil prices climbed on Thursday, extending gains from the previous session, as the market shifted focus to supply disruptions, while demand concerns eased following a drop in new coronavirus cases at the epicenter of the outbreak.
Conflict in Libya that has led to a blockade of its ports and oilfields shows no signs of a resolution, while U.S. sanctions on a subsidiary of Russian state oil major Rosneft (ROSN.MM) could cut more Venezuelan crude from the market, rekindling global oil supply worries.
Brent crude futures LCOc1 were up 14 cents, or 0.2%, to $59.26 a barrel by 0745 GMT, after climbing to as high as $59.71 earlier in the day. The international benchmark rose 2.4% on Wednesday and is currently up for an eighth straight day.
West Texas Intermediate (WTI) crude futures CLc1 climbed 38 cents, or 0.7%, to $53.67 per barrel. WTI has risen in six out of seven sessions going back to Feb. 11.
MIDEAST STOCKS-Most major Gulf markets rise, #Qatar outperforms | Nasdaq
MIDEAST STOCKS-Most major Gulf markets rise, Qatar outperforms | Nasdaq:
Qatar led gains among most of the Gulf indexes that were trading higher on Thursday, as oil prices rose due to worries of supply disruptions.
Concerns over global supply were rekindled after the United States imposed sanctions on a subsidiary of Russian state oil major Rosneft ROSN.MM, which could cut more Venezuelan crude from the market.
Brent crude futures LCOc1 were up 14 cents, or 0.2%, to $59.26 a barrel by 0505 GMT, after climbing to as high as $59.71 earlier in the day.
The Qatari index .QSI advanced 1.1%, with Mesaieed Petrochemical Holding MPHC.QA jumping 4.5% ahead of its results and Qatar National Bank QNBK.QA, Gulf's largest lender, rising 0.7%.
Qatar led gains among most of the Gulf indexes that were trading higher on Thursday, as oil prices rose due to worries of supply disruptions.
Concerns over global supply were rekindled after the United States imposed sanctions on a subsidiary of Russian state oil major Rosneft ROSN.MM, which could cut more Venezuelan crude from the market.
Brent crude futures LCOc1 were up 14 cents, or 0.2%, to $59.26 a barrel by 0505 GMT, after climbing to as high as $59.71 earlier in the day.
The Qatari index .QSI advanced 1.1%, with Mesaieed Petrochemical Holding MPHC.QA jumping 4.5% ahead of its results and Qatar National Bank QNBK.QA, Gulf's largest lender, rising 0.7%.