'Business is finished': Iranian merchants fear the worst as virus spreads - Reuters

'Business is finished': Iranian merchants fear the worst as virus spreads - Reuters:

Iranian merchants plying the busy Strait of Hormuz between Dubai and Iran fear their next trip home will be a one-way trip after the United Arab Emirates banned ferry services to prevent the spread of coronavirus.

“Business is finished,” said Iranian trader Morad as he stacked goods on a small wooden dhow this week destined for the Iranian port of Bandar Abbas some 230 km (140 miles) away.

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020. Picture taken March 2, 2020. REUTERS/Christopher Pike 

Iran, which has emerged as an epicenter for the disease that originated in China, is already grappling with economic hardship as U.S. sanctions curb oil and gas exports crucial for government revenues.

Now its non-oil trade, which the International Monetary Fund had estimated would be about $40 billion in 2020 - or nearly 10% of its economy - is under threat just weeks after mass protests against the government over economic hardships were crushed.

OPEC raises stakes with Russia, seeks biggest oil cut since 2008 crisis - Reuters

OPEC raises stakes with Russia, seeks biggest oil cut since 2008 crisis - Reuters:

OPEC pushed on Thursday for a bigger-than-expected oil output cut to support prices that have been hit by the coronavirus outbreak, effectively presenting its non-OPEC partners with an ultimatum to back the move or face a price collapse. 



OPEC’s proposal to curb supplies by an extra 1.5 million barrels per day (bpd) until the end of 2020 was a surprise, given the group was expected to propose cuts of 1 million bpd and, hours earlier on Thursday, had said curbs should be limited to the second quarter.

But an unusual informal meeting of OPEC ministers in a Vienna hotel on Thursday evening announced that the group now wanted the cut - already the biggest since the 2008 financial crisis - to run until the end of year.

Russia and Kazakhstan, both members of the broader grouping known as OPEC+ which meets in Vienna on Friday, said they had not yet agreed to a deeper cut, raising the risk of a collapse in cooperation that has propped up crude prices since 2016.

OPEC Deal Is High Risk for Both #SaudiArabia and #Russia - Bloomberg

OPEC Deal Is High Risk for Both Saudi Arabia and Russia - Bloomberg:

With OPEC pre-announcing a big production cut for it and its allies without the support of Russia, Saudi Arabia appears to be trying to corner Moscow into either supporting it or facing the blame for a price collapse. But that’s a very risky strategy.

President Vladimir Putin doesn’t react well to being cornered. And Riyadh has effectively painted itself in a corner, too. If Russia at the OPEC+ meeting tomorrow says nyet to the proposed cut of 1.5 million barrels a day, and puts forward a smaller reduction, Saudi Arabia will have two options: Either bridge the gap itself, cutting its own output even more, or let the whole deal collapse. Both Riyadh and Moscow are now in a corner.

Mideast Stocks: Most of Gulf markets decline on coronavirus fears | ZAWYA MENA Edition

Mideast Stocks: Most of Gulf markets decline on coronavirus fears | ZAWYA MENA Edition:

Most major stock markets in the Gulf ended lower on Thursday, led by financial stocks, on concerns over the economic fallout from the coronavirus that has spread to nearly 80 countries and territories and killed more than 3,000 people.

Saudi Arabia's benchmark index reversed early gains to close 0.8% down, with all its banking shares trading lower.

Tourism-related firm Jabal Omar Development was the biggest drag on the index, which sank 4.4%, while Al Rajhi Bank was down 0.5%.

Saudi Arabia extended suspension of Umrah pilgrimages by foreigners to also include Saudi citizens and residents due to concerns about the new coronavirus, state news agency SPA reported. 

Saudi Arabia, Kuwait, and the United Arab Emirates (UAE) also halted the use of Gulf Cooperation Council cards for transit between the six member states, instead mandating passports, which can reveal more about previous travel.

Oil slides as demand worries overshadow OPEC deal to deepen supply cuts - Reuters

Oil slides as demand worries overshadow OPEC deal to deepen supply cuts - Reuters:

Oil prices fell on Thursday as the coronavirus epidemic showed no signs of slowing, feeding worries about the global economy and prompting investors to sell more risky assets like stocks and crude oil and park money in safe havens.

Oil’s losses came even as OPEC agreed to cut crude output by an extra 1.5 million barrels per day (bpd) in the second quarter, its deepest cut since the 2008 financial crisis.

The group made its action conditional on Russia and others joining. Analysts and traders said global oil markets were likely to be oversupplied in the second quarter as demand plummets.

Brent crude LCOc1 fell by $1.14, or 2.2%, to settle at $49.99 a barrel while U.S. West Texas Intermediate (WTI) CLc1 ended the session down 88 cents, or 1.9%, at $45.90.

Lebanon prosecutor freezes assets of 20 banks - The National

Lebanon prosecutor freezes assets of 20 banks - The National:

Lebanon's financial prosecutor took the decision to freeze the assets of 20 of the country's banks, the state-run news agency reported on Thursday.

Judge Ali Ibrahim also imposed a freeze on the assets of the heads and members of boards of directors of these banks, the National News Agency reported. It didn't name the lenders or provide any additional information. Separately, Lebanon's cabinet approved a draft law to lift banking secrecy, Reuters reported, citing Justice Minister Marie Claude Najm.

Lebanon is experiencing its worst economic crisis since the end of a 15-year civil war in 1990, which gave rise to an unprecedented wave of public protests in October. The crisis led to the Lebanese pound losing more than a third of its value against the US dollar on the black market and lenders implementing capital controls.

Gulf airlines could lose $4.9bn, 23% of passengers due to virus spread - Arabianbusiness

Gulf airlines could lose $4.9bn, 23% of passengers due to virus spread - Arabianbusiness:

Airlines in the Gulf region could see passenger numbers slump by 23 percent and revenues by nearly 5 billion due to the global spread of the new coronavirus, it was revealed on Thursday.

The International Air Transport Association (IATA) updated its analysis of the financial impact of COVID-19 and said it now sees 2020 global revenue losses for the passenger business of up to $113 billion if it continues to spread at its current rate. 


No estimates are yet available for the impact on cargo operations, IATA said.

For a region including Bahrain, Iraq, Iran, Kuwait, Lebanon, the UAE, IATA said passenger numbers could fall by 23 percent with revenue losses of $4.9 billion while for the rest of Middle East 9 percent of passengers could be lost at a cost of $2.3 billion.

Robust economic growth to support Kuwaiti banks, says Moody's | ZAWYA MENA Edition

Robust economic growth to support Kuwaiti banks, says Moody's | ZAWYA MENA Edition:

The outlook for Kuwait's banking system remains stable as robust economic growth will support credit conditions, Moody's Investors Service said.

While high lending concentration to single borrowers and to the volatile real-estate sector pose substantial risks to the country's banks, these are mitigated by very large loan-loss reserves, robust capital and sound liquidity, it said a report issued Wednesday.


"Non-oil GDP growth will remain strong, supporting banks' business-generation," said Nitish Bhojnagarwala, VP-Senior Credit Officer at Moody's. "High lending concentration to single borrowers and to the volatile real-estate sector pose substantial risks to Kuwait's banks, but these are mitigated by very large loan-loss reserves, robust capital and sound liquidity."

Moody's expects non-oil GDP growth to remain strong, picking up to around 3 percent this year from 2.5 percent in 2019. “The government remains committed to its national development plan and its many projects will drive annual credit growth to around 5 percent over our outlook period.”

LNG News: CNPC Issues Force Majeure After Coronavirus Outbreak - Bloomberg

LNG News: CNPC Issues Force Majeure After Coronavirus Outbreak - Bloomberg:

China National Petroleum Corp. has issued a force majeure on all prompt natural gas imports, according to people with knowledge of the situation, the second Chinese buyer to refuse shipments in a sign that global commodity flows may face a sustained impact from the coronavirus fight.

CNPC, the parent of PetroChina Co., is taking the extreme step after initially working with sellers to reschedule shipments, and plans to cancel contracted deliveries of the fuel both as liquefied natural gas and via pipelines in the short-term, said the people, who asked not to be identified as the information isn’t public. At least one LNG supplier had been notified, the people said.

CNPC declined to comment.

The nation’s buyers have struggled with the impact of the virus, which has cut demand for the fuel and maxed out storage space. Firms declare force majeure when they’re unable to meet contractual obligations for reason beyond their control.


China’s biggest suppliers of LNG include Australia, Qatar and Malaysia, while Russia and Central Asian nations -- Turkmenistan, Kazakhstan and Uzbekistan -- as well as Myanmar supply via pipeline.

#AbuDhabi Holding, Egypt Wealth Fund Seek Banque du Caire Stake - Bloomberg

Abu Dhabi Holding, Egypt Wealth Fund Seek Banque du Caire Stake - Bloomberg:

Abu Dhabi Development Holding Co. and Egypt’s sovereign wealth fund are seeking to buy a combined stake in Banque du Caire as part of the state-owned lender’s initial public offering, according to two people familiar with the matter. 


The people asked not to be identified because the discussions are private. The Egyptian fund’s chief executive officer, Ayman Soliman, earlier said it was in talks with Banque du Caire with a view to becoming a strategic investor in the IPO.

He didn’t give the name of the international firm also involved, but said an agreement may be reached by the end of March.

ADDH, which was established in 2018 as a public joint stock company and holds a portfolio of state-owned enterprises spanning utilities to health care, declined to comment.

Oil Holds Below $47 as OPEC’s Planned Cut Awaits Russian Backing - Bloomberg

Oil Holds Below $47 as OPEC’s Planned Cut Awaits Russian Backing - Bloomberg:

Oil held below $47 a barrel in New York as OPEC agreed on a sharp production cut that’s still dependent on approval from Russia.

Crude initially rose as ministers meeting in Vienna backed a 1.5 million-barrel-a-day reduction, but erased gains as it became clear that the plan is contingent on Russia’s support. Energy Minister Alexander Novak on Wednesday had refused to endorse such a move, and won’t return to negotiations until Friday.

“It is a big cut and a surprise they could agree on that,” said Jens Pedersen, senior analyst at Danske Bank. “But let’s see the country-split and how large a share Saudi Arabia takes.”

West Texas Intermediate futures for April delivery rose 1 cent to $46.79 a barrel on the New York Mercantile Exchange as of 11:46 a.m. London time. Brent futures for May were little changed at $51.10 a barrel on the ICE Futures Europe exchange.

OPEC Production Cut Won't Shock Or Awe Oil Markets - Bloomberg

OPEC Production Cut Won't Shock Or Awe Oil Markets - Bloomberg:

Even as stalwarts of the energy calendar such as CERAWeek bow out in the face of coronavirus, OPEC+ is doggedly convening this week in its Viennese petri dish. But in what may count as the most OPEC-plussy move ever, the organization waited until beyond the last minute, after many journalists had flown in already, to inform them they wouldn’t actually be allowed to enter the building.

OPEC+ is having a hard time responding to a black swan that threatens a repeat of the global financial crisis. IHS Markit, which shelved CERAWeek, now estimates oil demand in the first quarter will fall by 3.8 million barrels a day, sharper even than in early 2009. It now also expects 2020 will record an annual decline, an exceedingly rare occurrence.

OPEC+ has inherent weaknesses, exemplified by the fact that it had to add that “+” in the first place. Of the 20 members subject to supply curbs, just four — Kuwait, Russia, Saudi Arabia and the United Arab Emirates — account for 70% of the oil being withheld 1 . Of those four, Russia has never really put the “us” in “plus” and has resisted calls for even deeper cuts this year. The rest of the gang mostly offer the comfort of numbers and a periodic boost for Viennese hotels at this point.

#Saudi SABIC profits down 74% in 2019 | ZAWYA MENA Edition

Saudi SABIC profits down 74% in 2019 | ZAWYA MENA Edition:

Saudi Basic Industries Corporation (SABIC) reported a 74% decline in net profits for 2019, as shown by the company’s annual financial results.

Net profit after zakat and tax amounted to SAR 5.56 billion last year, compared with SAR 21.52 billion in the year before, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Wednesday.

SABIC attributed the decline in profits to lower average selling prices and investment in Clariant AG by around SAR 1.5 billion, in addition to the recording of impairment provisions in Ibn Rushd by SAR 2.8 billion with the company’s share standing at SAR 1.3 billion.

On Tuesday, SABIC announced purchasing additional shares in Clariant AG to raising its stake from 25% to 31.5%. The transaction’s completion is subject to regulatory approvals.

#UAE News: #AbuDhabi's Etihad Airlines Says Annual Loss Narrows - Bloomberg

UAE News: Abu Dhabi's Etihad Airlines Says Annual Loss Narrows - Bloomberg:

Abu Dhabi’s Etihad Airways continued to make progress paring back its sprawling operation, shrinking the annual loss by about one third even as revenue declined.

The long-haul carrier has been overhauling its cost base since 2017 and turning its focus toward regional travel after splashing out to build a global network. While it’s made progress, the airline still lost $870 million in 2019, bringing the deficit over four years to $5.67 billion. Revenue slid about 5% to $5.6 billion.

“An improvement to the cost base significantly offset the cost pressures faced by the business,” said Chief Executive Officer Tony Douglas. Load factor improved due to a reduction in network and capacity, he said.

Like airlines across the world, state-owned Etihad is now facing a jarring dropoff in travel because of the coronavirus outbreak. The company has temporarily halted flights to China and Hong Kong, and on Wednesday it asked cabin crew to take leave in April that would otherwise be scheduled for later in the year.

Airline hub #UAE tells residents not to travel over virus

Airline hub UAE tells residents not to travel over virus:

The United Arab Emirates on Thursday urged its citizens and its foreign residents not to travel anywhere abroad amid the ongoing worldwide coronavirus outbreak, a stark warning for a country home to two major long-haul airlines.

The country’s Health and Community Protection Ministry warning comes as its capital, Abu Dhabi, sent 215 foreigners it evacuated from hard-hit Hubei in China to a quarantine set up in its Emirates Humanitarian City. They include citizens of Egypt, Sudan and Yemen.

Health officials said that those traveling abroad could face quarantine themselves at the discretion of authorities.

The UAE is home to some 9 million people, with only about 1 million estimated to be Emirati citizens.

The UAE is home to Emirates, the government-owned airline based at Dubai International Airport, the world’s busiest for international travel. Abu Dhabi also is home to Etihad, the country’s national carrier. Both airlines have encouraged staff to take time off as international travel has dropped due to the virus.

Oil prices climb ahead of OPEC meeting to discuss supply cuts - Reuters

Oil prices climb ahead of OPEC meeting to discuss supply cuts - Reuters:

Oil prices climbed higher on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.

Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world’s biggest oil consumer.

Brent crude LCOc1 rose by 46 cents, or 0.9%, to $51.58 per barrel by 0734 GMT, while U.S. West Texas Intermediate (WTI) CLc1 was up by 37 cents, or 0.8%, at $47.15 per barrel.

“Crude oil prices were boosted by a broad positive sentiment overnight, and a much lower-than-expected ... crude oil inventory data,” said Margaret Yang, a market analyst at CMC Markets.

Mideast Stocks: #Saudi stocks gain ahead of OPEC meet, other major Gulf markets mixed | ZAWYA MENA Edition

Mideast Stocks: Saudi stocks gain ahead of OPEC meet, other major Gulf markets mixed | ZAWYA MENA Edition:

The Saudi Arabian stock market gained in early trade on Thursday as oil prices strengthened ahead of an OPEC meeting to discuss supply cuts, while other major Gulf markets were mixed.

Oil prices rose more than 1% ahead of the meeting in which Saudi Arabia is expected to push OPEC and its allies including Russia to agree to further output cuts to support the market.

Prices of brent crude have tumbled by a fifth this year in the wake of the coronavirus epidemic that has impacted global travel, production and supply chains.

Saudi Arabia's benchmark index rose 0.6%, with heavyweights Al Rajhi Bank and Saudi Telecom adding 0.5% and 1.1%, respectively.

State-owned Saudi Aramco climbed 0.3% to 33.15 riyals ($8.83).