Oil jumps 8% on stimulus hopes, spending cuts by U.S. producers - Reuters: Oil prices jumped over 8% on Tuesday, bouncing from the biggest rout in nearly 30 years a day earlier, as the possibility of economic stimulus encouraged buying and U.S. producers slashed spending in a move that could cut output.
On Monday, U.S. President Donald Trump pledged “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak. Japan’s government said it planned to spend more than $4 billion in a second package of steps to cope with the virus.
U.S. shale producers, including Occidental Petroleum Corp (OXY.N), deepened spending cuts that could reduce production.
“There was almost an immediate response from U.S. producers to cut spending that will likely result in diminished U.S. oil output in the months ahead,” said John Kilduff, partner at Again Capital LLC in New York, noting “The rapidity of that response helped buoy the market after Monday’s collapse.”
Oil plunged about 25% on Monday. It rebounded on Tuesday along with equities and other financial markets.
Brent futures LCOc1 rose $2.86, or 8.3%, to settle at $37.22 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 rose $3.23, or 10.4%, to settle at $34.36.
Technical traders called the session an “inside day” since neither benchmark touched the previous session’s high or lows, and said prices appeared to be consolidating in a new range.
Tuesday 10 March 2020
The Changing Winners and Losers From Oil’s Historic Plunge - Bloomberg
The Changing Winners and Losers From Oil’s Historic Plunge - Bloomberg:
Oil price shocks always divide the world’s economies into winners and losers, sometimes producing lasting geopolitical change -- and this time is unlikely to be different. But to misquote Tolstoy, every oil crisis distributes happiness and unhappiness in its own way.
Crude’s biggest drop in three decades on Monday coincided with the spreading coronavirus, slow growth in China, a wave of de-globalization affecting trade, and the emergence of the U.S. as the world’s largest oil producer. Even for some consumer nations, gains from lower oil prices may this time be overwhelmed by the collapse in demand caused by Covid-19.
Oil price shocks always divide the world’s economies into winners and losers, sometimes producing lasting geopolitical change -- and this time is unlikely to be different. But to misquote Tolstoy, every oil crisis distributes happiness and unhappiness in its own way.
Crude’s biggest drop in three decades on Monday coincided with the spreading coronavirus, slow growth in China, a wave of de-globalization affecting trade, and the emergence of the U.S. as the world’s largest oil producer. Even for some consumer nations, gains from lower oil prices may this time be overwhelmed by the collapse in demand caused by Covid-19.
#SaudiArabia Seeks More Supertankers to Carry Its Flood of Oil - Bloomberg
Saudi Arabia Seeks More Supertankers to Carry Its Flood of Oil - Bloomberg:
Saudi Arabia is preparing to unleash so much oil on the world that its own fleet can’t handle it all.
The kingdom’s National Shipping Co., also known as Bahri, has booked on a preliminary basis at least eight supertankers to load this month and next from Saudi Arabia’s main oil ports, according to people familiar with the matter, who asked not to be identified because the information isn’t public. The ships, each able to carry about 2 million barrels of oil, include Dalian, Agios Sostis and Hong Kong Spirit, they said. It’s not uncommon for preliminary bookings to fail.
Saudi Arabia’s search for ships underscores how big a flood of oil it’s planning to unleash on the world, following the breakdown last week of talks between OPEC and its allied producers, particularly Russia. Most of the bookings so far have been to the U.S. Gulf, which will only compound the woes for deeply indebted U.S. shale producers that are already battered by a plunge in oil prices.
Saudi Arabia is preparing to unleash so much oil on the world that its own fleet can’t handle it all.
The kingdom’s National Shipping Co., also known as Bahri, has booked on a preliminary basis at least eight supertankers to load this month and next from Saudi Arabia’s main oil ports, according to people familiar with the matter, who asked not to be identified because the information isn’t public. The ships, each able to carry about 2 million barrels of oil, include Dalian, Agios Sostis and Hong Kong Spirit, they said. It’s not uncommon for preliminary bookings to fail.
Saudi Arabia’s search for ships underscores how big a flood of oil it’s planning to unleash on the world, following the breakdown last week of talks between OPEC and its allied producers, particularly Russia. Most of the bookings so far have been to the U.S. Gulf, which will only compound the woes for deeply indebted U.S. shale producers that are already battered by a plunge in oil prices.
ADCB's new platform aims to help businesses expand worldwide | ZAWYA MENA Edition
ADCB's new platform aims to help businesses expand worldwide | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank (ADCB) has unveiled its Trade Booster platform that helps identify businesses looking to trade goods internationally.
The new digital platform partners with 14 banks that make up the Trade Club Alliance: Abu Dhabi Commercial Bank, Attiijariwafa Group, Banco BPM, Banco Santander, Royal Bank of Canada, CIMB, Crédit Agricole Group, Eurobank, KBC Group, Industrial Bank of Korea, MUFG, Nordea Group, Siam Commercial Bank, and Standard Bank.
Each Trade Club Alliance bank is responsible for vetting businesses before they become a member, and will help oversee the admission process, actively identify and facilitate business opportunities and coordinate trade missions on the ground, ADCB said in a statement.
The new platform will provide insight on regulations and trade tariffs for the relevant countries. It will provide members with market information on more than 180 countries, including currency analysis, market trends and shipping requirements, serving as a conduit for trusted buyers and suppliers to connect with counterparts in markets around the world.
Abu Dhabi Commercial Bank (ADCB) has unveiled its Trade Booster platform that helps identify businesses looking to trade goods internationally.
The new digital platform partners with 14 banks that make up the Trade Club Alliance: Abu Dhabi Commercial Bank, Attiijariwafa Group, Banco BPM, Banco Santander, Royal Bank of Canada, CIMB, Crédit Agricole Group, Eurobank, KBC Group, Industrial Bank of Korea, MUFG, Nordea Group, Siam Commercial Bank, and Standard Bank.
Each Trade Club Alliance bank is responsible for vetting businesses before they become a member, and will help oversee the admission process, actively identify and facilitate business opportunities and coordinate trade missions on the ground, ADCB said in a statement.
The new platform will provide insight on regulations and trade tariffs for the relevant countries. It will provide members with market information on more than 180 countries, including currency analysis, market trends and shipping requirements, serving as a conduit for trusted buyers and suppliers to connect with counterparts in markets around the world.
#Saudi energy minister: no need for OPEC+ meet if no agreement on handling oil market crisis - Reuters
Saudi energy minister: no need for OPEC+ meet if no agreement on handling oil market crisis - Reuters:
Saudi Arabia’s energy minister said on Tuesday he does not see a need to hold an OPEC+ meeting in May-June if there was no agreement on what measures should be taken to deal with the impact of the coronavirus on oil demand and prices.
“I fail to see the wisdom for holding meetings in May-June that would only demonstrate our failure in attending to what we should have done in a crisis like this and taking the necessary measures,” Prince Abdulaziz bin Salman told Reuters, responding to comments made by his Russian counterpart on Tuesday.
Prince Abdulaziz said every oil producer needs to maintain its market share, after Russian energy minister Alexander Novak earlier was quoted as saying that discounts offered by Saudi Aramco for its oil have led to panic in the market.
“In a free market every producer needs to demonstrate its competitiveness, preserve and increase its market share,” the Saudi minister added.
Saudi Arabia’s energy minister said on Tuesday he does not see a need to hold an OPEC+ meeting in May-June if there was no agreement on what measures should be taken to deal with the impact of the coronavirus on oil demand and prices.
“I fail to see the wisdom for holding meetings in May-June that would only demonstrate our failure in attending to what we should have done in a crisis like this and taking the necessary measures,” Prince Abdulaziz bin Salman told Reuters, responding to comments made by his Russian counterpart on Tuesday.
Prince Abdulaziz said every oil producer needs to maintain its market share, after Russian energy minister Alexander Novak earlier was quoted as saying that discounts offered by Saudi Aramco for its oil have led to panic in the market.
“In a free market every producer needs to demonstrate its competitiveness, preserve and increase its market share,” the Saudi minister added.
Oil drop, coronavirus are 'perfect storm' for Middle East, North Africa: World Bank - Reuters
Oil drop, coronavirus are 'perfect storm' for Middle East, North Africa: World Bank - Reuters:
A record drop in oil prices and the coronavirus outbreak have left the Middle East and North Africa more exposed than other regions to fallout from a possible global recession, according to the World Bank.
Oil prices suffered their biggest one-day fall in nearly 30 years on Monday, after the unexpected collapse of a production agreement between Saudi Arabia, Russia and other major crude producers triggered a price war.
Meanwhile, cases of coronavirus are rising across the two regions. Iran is one of the global epicentres of the outbreak, with more than 8,000 cases and almost 300 fatalities, the health ministry said on Tuesday.
“As the world struggles with the fear of recession, the Middle East and North Africa (MENA) could be the hardest hit by what is arguably a perfect storm: the coronavirus spreads to the region and oil prices collapse,” the World Bank said in a briefing paper by Rabah Arezki, its chief economist for MENA, and a second economist, Rachel Fang.
A record drop in oil prices and the coronavirus outbreak have left the Middle East and North Africa more exposed than other regions to fallout from a possible global recession, according to the World Bank.
Oil prices suffered their biggest one-day fall in nearly 30 years on Monday, after the unexpected collapse of a production agreement between Saudi Arabia, Russia and other major crude producers triggered a price war.
Meanwhile, cases of coronavirus are rising across the two regions. Iran is one of the global epicentres of the outbreak, with more than 8,000 cases and almost 300 fatalities, the health ministry said on Tuesday.
“As the world struggles with the fear of recession, the Middle East and North Africa (MENA) could be the hardest hit by what is arguably a perfect storm: the coronavirus spreads to the region and oil prices collapse,” the World Bank said in a briefing paper by Rabah Arezki, its chief economist for MENA, and a second economist, Rachel Fang.
Rating agencies warn oil slump could trigger blizzard of downgrades - Reuters
Rating agencies warn oil slump could trigger blizzard of downgrades - Reuters:
The world’s top rating agencies said on Tuesday that the sharp drop in oil prices, if sustained, could cause a wave of sovereign downgrades as well as heavy multi-notch rating cuts to junk-rated oil and gas firms.
Fitch’s top Middle East and Africa sovereign analyst, Jan Friederich, told Reuters that with oil prices dropping as low as $31 a barrel this and likely to stay low, countries from Saudi Arabia, Iraq and Oman to Nigeria and Angola were all in focus.
“Countries that are in a somewhat vulnerable external position and have a fixed exchange rate are of course particularly vulnerable,” Friederich said.
On individual countries, he said Saudi Arabia’s financial reserves and its sovereign wealth fund provided a buffer but that there was not “infinite leeway” in the country’s A (stable) rating for the buffers to disappear.
The world’s top rating agencies said on Tuesday that the sharp drop in oil prices, if sustained, could cause a wave of sovereign downgrades as well as heavy multi-notch rating cuts to junk-rated oil and gas firms.
Fitch’s top Middle East and Africa sovereign analyst, Jan Friederich, told Reuters that with oil prices dropping as low as $31 a barrel this and likely to stay low, countries from Saudi Arabia, Iraq and Oman to Nigeria and Angola were all in focus.
“Countries that are in a somewhat vulnerable external position and have a fixed exchange rate are of course particularly vulnerable,” Friederich said.
On individual countries, he said Saudi Arabia’s financial reserves and its sovereign wealth fund provided a buffer but that there was not “infinite leeway” in the country’s A (stable) rating for the buffers to disappear.
#SaudiArabia, Russia raise stakes in oil standoff - Reuters
Saudi Arabia, Russia raise stakes in oil standoff - Reuters:
Saudi Arabia will raise its crude supply to a record high in April, the kingdom announced on Tuesday, as it ratcheted up a standoff with Moscow over market share and appeared to reject Russian overtures for new talks.
The clash of oil titans Saudi Arabia and Russia sparked a 25% slump in crude prices on Monday, triggering panic selling and heavy losses on Wall Street’s main stock indexes, already hit badly by the coronavirus outbreak.
U.S. President Donald Trump spoke with Saudi Arabia’s Crown Prince Mohammed bin Salman in a call on Monday to discuss global energy markets, the White House said on Tuesday.
Amin Nasser, CEO of Saudi Aramco (2222.SE) said the oil giant would increase supply to 12.3 million barrels per day (bpd) in April for customers inside the kingdom and abroad.
Saudi Arabia will raise its crude supply to a record high in April, the kingdom announced on Tuesday, as it ratcheted up a standoff with Moscow over market share and appeared to reject Russian overtures for new talks.
The clash of oil titans Saudi Arabia and Russia sparked a 25% slump in crude prices on Monday, triggering panic selling and heavy losses on Wall Street’s main stock indexes, already hit badly by the coronavirus outbreak.
U.S. President Donald Trump spoke with Saudi Arabia’s Crown Prince Mohammed bin Salman in a call on Monday to discuss global energy markets, the White House said on Tuesday.
Amin Nasser, CEO of Saudi Aramco (2222.SE) said the oil giant would increase supply to 12.3 million barrels per day (bpd) in April for customers inside the kingdom and abroad.
Debt levels said to soar to $5bn at troubled NMC Health - Arabianbusiness
Debt levels said to soar to $5bn at troubled NMC Health - Arabianbusiness:
Troubled healthcare operator NMC Health said on Tuesday that its debt levels have risen over the past six months and are currently estimated at $5 billion.
The announcement comes after UAE-based NMC hired Moelis and PwC to support the company in its discussions with lenders and to assist in providing transparency with respect to its financial position.
The board of NMC said it received an update on its financial position on Tuesday, with work on verifying the debt figure ongoing.
In addition to $2.1 billion group debt reported in June 2019, the company said it has identified over $2.7 billion in facilities that had previously not been disclosed to or approved by the board.
"NMC is continuing to work with its advisers to understand the exact nature and quantum of the undisclosed facilities. The board believes that some proceeds may have been utilised for non-group purposes," a statement said.
Troubled healthcare operator NMC Health said on Tuesday that its debt levels have risen over the past six months and are currently estimated at $5 billion.
The announcement comes after UAE-based NMC hired Moelis and PwC to support the company in its discussions with lenders and to assist in providing transparency with respect to its financial position.
The board of NMC said it received an update on its financial position on Tuesday, with work on verifying the debt figure ongoing.
In addition to $2.1 billion group debt reported in June 2019, the company said it has identified over $2.7 billion in facilities that had previously not been disclosed to or approved by the board.
"NMC is continuing to work with its advisers to understand the exact nature and quantum of the undisclosed facilities. The board believes that some proceeds may have been utilised for non-group purposes," a statement said.
UPDATE 1-DP World slashes fees at key #Dubai business park - Reuters
UPDATE 1-DP World slashes fees at key Dubai business park - Reuters:
DP World on Tuesday slashed fees at one of Dubai’s biggest business parks, which it said would immediately benefit 7,500 companies, as the global coronavirus outbreak weighs on consumer confidence and business productivity.
Registration, licensing and related administrative functions at the DP World-owned Jebel Ali Free Zone (Jafza) have been cut by 50% to 70%, it said in a statement.
Jafza is one of many specialised ‘free zones’ in the United Arab Emirates where companies can be 100% foreign owned and benefit from some tax exemptions.
The Middle East’s biggest transshipment port, Jebel Ali Port, is adjacent to the free zone and operated by DP World.
DP World on Tuesday slashed fees at one of Dubai’s biggest business parks, which it said would immediately benefit 7,500 companies, as the global coronavirus outbreak weighs on consumer confidence and business productivity.
Registration, licensing and related administrative functions at the DP World-owned Jebel Ali Free Zone (Jafza) have been cut by 50% to 70%, it said in a statement.
Jafza is one of many specialised ‘free zones’ in the United Arab Emirates where companies can be 100% foreign owned and benefit from some tax exemptions.
The Middle East’s biggest transshipment port, Jebel Ali Port, is adjacent to the free zone and operated by DP World.
How to cope with $30 oil: producers ready more cuts - Reuters
How to cope with $30 oil: producers ready more cuts - Reuters:
Already hard-pressed oil producers, including global major Chevron, are contemplating a new round of spending and drilling cuts on Tuesday as they try to quell concerns about profitability with crude prices now almost half of what they were in January.
A price war between Saudi Arabia and Russia pushed oil prices down about a third lower on Monday, sending another shockwave through an industry that has been scaling back aggressively for years.
Chevron Corp, the second largest U.S. producer, was the biggest high-profile company from a slew of corporate statements on Tuesday, reiterating that it was looking at ways to cut spending.
A source close to the company said that while it would not be easy to cut capital spending in an already tight budget, bosses would probably look to cut rigs in the Permian basin in Texas, home to most of North America’s oil and gas production.
Already hard-pressed oil producers, including global major Chevron, are contemplating a new round of spending and drilling cuts on Tuesday as they try to quell concerns about profitability with crude prices now almost half of what they were in January.
A price war between Saudi Arabia and Russia pushed oil prices down about a third lower on Monday, sending another shockwave through an industry that has been scaling back aggressively for years.
Chevron Corp, the second largest U.S. producer, was the biggest high-profile company from a slew of corporate statements on Tuesday, reiterating that it was looking at ways to cut spending.
A source close to the company said that while it would not be easy to cut capital spending in an already tight budget, bosses would probably look to cut rigs in the Permian basin in Texas, home to most of North America’s oil and gas production.
MIDEAST STOCKS-Gulf stocks close higher as oil rebounds - Reuters
MIDEAST STOCKS-Gulf stocks close higher as oil rebounds - Reuters:
Middle Eastern stocks ended higher on Tuesday,
recovering from record falls a day earlier, as oil prices rebounded on hopes of
a global economic stimulus and Russia signalled possible cooperation with OPEC.
Brent futures rose 10% by 1041 GMT, a day after it slumped 25% as
Saudi Arabia slashed crude prices for April and planned output hikes after
Russia refused to support deeper oil production cuts.
The Russian Energy Ministry has called a meeting with oil companies on
Wednesday to discuss future cooperation with the OPEC, sources told Reuters.
U.S. President Donald Trump on Monday said he will be taking "major" steps
to gird the U.S. economy, while Japan's government plans to spend more than $4
billion in a second package of steps to cope with coronavirus.
Saudi Arabia's index surged 7.1%, its biggest intra-day gain since
August 2015, snapping a four-session losing streak. Financial shares weighed on
the index most, with Al Rajhi Bank rising 8.8%.
Saudi Aramco closed up 9.9% at 31.15 riyals ($8.30). The Oil
giant, whose stock declined sharply in last two sessions, said it would raise
its crude supply to 12.3 million barrels per day in April.
Food and beverage firm Almarai jumped 9.9% after it appointed Naif
Middle Eastern stocks ended higher on Tuesday,
recovering from record falls a day earlier, as oil prices rebounded on hopes of
a global economic stimulus and Russia signalled possible cooperation with OPEC.
Brent futures rose 10% by 1041 GMT, a day after it slumped 25% as
Saudi Arabia slashed crude prices for April and planned output hikes after
Russia refused to support deeper oil production cuts.
The Russian Energy Ministry has called a meeting with oil companies on
Wednesday to discuss future cooperation with the OPEC, sources told Reuters.
U.S. President Donald Trump on Monday said he will be taking "major" steps
to gird the U.S. economy, while Japan's government plans to spend more than $4
billion in a second package of steps to cope with coronavirus.
Saudi Arabia's index surged 7.1%, its biggest intra-day gain since
August 2015, snapping a four-session losing streak. Financial shares weighed on
the index most, with Al Rajhi Bank rising 8.8%.
Saudi Aramco closed up 9.9% at 31.15 riyals ($8.30). The Oil
giant, whose stock declined sharply in last two sessions, said it would raise
its crude supply to 12.3 million barrels per day in April.
Food and beverage firm Almarai jumped 9.9% after it appointed Naif
Oil jumps after rout on stimulus hopes, Russian signal on OPEC talks - Reuters
Oil jumps after rout on stimulus hopes, Russian signal on OPEC talks - Reuters:
Oil prices jumped by around 8% on Tuesday a day after the biggest rout in nearly 30 years as investors eyed the possibility of economic stimulus and Russia signalled that talks with OPEC remained possible.
U.S. President Donald Trump on Monday said he will be taking “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak, while Japan’s government plans to spend more than $4 billion in a second package of steps to cope with the virus.
Brent crude futures LCOc1 were up $2.84, around 8%, to $37.20 a barrel by 1228 GMT, after hitting a session high of $38.22 a barrel.
West Texas Intermediate (WTI) crude CLc1 gained $2.53, or around 8%, to $33.66 a barrel, after hitting a high of $34.60.
Oil prices jumped by around 8% on Tuesday a day after the biggest rout in nearly 30 years as investors eyed the possibility of economic stimulus and Russia signalled that talks with OPEC remained possible.
U.S. President Donald Trump on Monday said he will be taking “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak, while Japan’s government plans to spend more than $4 billion in a second package of steps to cope with the virus.
Brent crude futures LCOc1 were up $2.84, around 8%, to $37.20 a barrel by 1228 GMT, after hitting a session high of $38.22 a barrel.
West Texas Intermediate (WTI) crude CLc1 gained $2.53, or around 8%, to $33.66 a barrel, after hitting a high of $34.60.
Emaar stops taking bookings at three #Dubai hotels - Arabianbusiness
Emaar stops taking bookings at three Dubai hotels - Arabianbusiness:
Emaar Hospitality will stop taking bookings at three hotels in Dubai for more than five months as it temporarily “refocuses” on certain assets amid the ongoing coronavirus epidemic, according to the company.
In a statement, an Emaar spokesperson said that “following the recent global impact on the travel industry drawing us into a state of force majeure, Emaar Hospitality Group has taken the decision to temporarily refocus on a selected number of assets”.
It is understood that the hotels are Address Fountain Views, Vida Creek Harbour and Vida Emirates Hills.
The decision will come into force on March 15 and last until August 31, the document said.
Restaurants, gyms and pools at the three locations will remain open, while guests will be rebooked at other Emaar properties in Dubai.
Emaar Hospitality will stop taking bookings at three hotels in Dubai for more than five months as it temporarily “refocuses” on certain assets amid the ongoing coronavirus epidemic, according to the company.
In a statement, an Emaar spokesperson said that “following the recent global impact on the travel industry drawing us into a state of force majeure, Emaar Hospitality Group has taken the decision to temporarily refocus on a selected number of assets”.
It is understood that the hotels are Address Fountain Views, Vida Creek Harbour and Vida Emirates Hills.
The decision will come into force on March 15 and last until August 31, the document said.
Restaurants, gyms and pools at the three locations will remain open, while guests will be rebooked at other Emaar properties in Dubai.
Oil Price Collapse Is OPEC, Russia's Revenge Against Shale
Oil Price Collapse Is OPEC, Russia's Revenge Against Shale:
When Saudi Arabia, Russia, and other oil-producing countries met in Vienna last week, they debated who should slash oil output to offset the collapse in demand due to the coronavirus outbreak. When the meeting was over, the answer was clear: America.
Last week’s drama between Saudi Arabia and Russia, the world’s two largest oil producers after the United States, made for a historic meeting of the Organization of the Petroleum Exporting Countries (OPEC) that may cripple the organization’s credibility for years to come—and undermine the shale revolution in the process.
While past oil shocks have been driven by either supply or demand, the price collapse of 2020 is highly unusual in oil market history: It results from a massive demand shock and a huge supply overhang at the same time.
With the economic slowdown from the coronavirus outbreak projected to cause the first annual drop in oil demand since the global financial crisis in 2009, oil prices had already plunged 20 percent in the lead up to last week’s meeting of the so-called OPEC+ group, which includes both OPEC members and several other oil-producing countries, most notably Russia. As the extent of the demand drop became clear, Saudi Arabia pushed the other OPEC+ countries to agree to the steepest supply cuts in more than a decade.
When Saudi Arabia, Russia, and other oil-producing countries met in Vienna last week, they debated who should slash oil output to offset the collapse in demand due to the coronavirus outbreak. When the meeting was over, the answer was clear: America.
Last week’s drama between Saudi Arabia and Russia, the world’s two largest oil producers after the United States, made for a historic meeting of the Organization of the Petroleum Exporting Countries (OPEC) that may cripple the organization’s credibility for years to come—and undermine the shale revolution in the process.
While past oil shocks have been driven by either supply or demand, the price collapse of 2020 is highly unusual in oil market history: It results from a massive demand shock and a huge supply overhang at the same time.
With the economic slowdown from the coronavirus outbreak projected to cause the first annual drop in oil demand since the global financial crisis in 2009, oil prices had already plunged 20 percent in the lead up to last week’s meeting of the so-called OPEC+ group, which includes both OPEC members and several other oil-producing countries, most notably Russia. As the extent of the demand drop became clear, Saudi Arabia pushed the other OPEC+ countries to agree to the steepest supply cuts in more than a decade.
Saudi Arabia’s risky game of Russian roulette with oil could end in tears
Saudi Arabia’s risky game of Russian roulette with oil could end in tears:
Oil markets have been caught in the eye of a storm between the fears of coronavirus and bickering between Saudi Arabia and Russia at Opec. Some industry veterans now fret this high-stakes game of roulette could see the value of a barrel of the global economy’s lifeblood tumble below $20. They may be right.
Brent crude suffered its biggest fall since the start of the Gulf war in 1991 in London trading on Monday. The benchmark – which helps set the price for almost $1.3 trillion of crude – has halved in value since the beginning of the year, with its value plummeting below $34 per barrel. But worse may be to come.
Qatar’s former oil minister and president of Opec Abdullah bin Hamad Al-Attiyah fears markets are entering into uncharted territory. “I saw the first shock and the first collapse and this is worse,” warns the oil and gas industry veteran in an interview with S&P Global Platts. “My expectation is for oil to fall below $20 per barrel. We have seen it before.”
The reasons for his concerns are two-fold. Firstly, a three-year old pact between Riyadh and the Kremlin to manage the price of oil has collapsed, perhaps irrevocably. In response to plummeting prices caused by the coronavirus outbreak, Saudi Arabia had hoped for Opec and its allies to extend 1.7 million barrels per day of production cuts through to the end of 2020, with a top-up of a further 1.5 million barrels per day.
Oil markets have been caught in the eye of a storm between the fears of coronavirus and bickering between Saudi Arabia and Russia at Opec. Some industry veterans now fret this high-stakes game of roulette could see the value of a barrel of the global economy’s lifeblood tumble below $20. They may be right.
Brent crude suffered its biggest fall since the start of the Gulf war in 1991 in London trading on Monday. The benchmark – which helps set the price for almost $1.3 trillion of crude – has halved in value since the beginning of the year, with its value plummeting below $34 per barrel. But worse may be to come.
Qatar’s former oil minister and president of Opec Abdullah bin Hamad Al-Attiyah fears markets are entering into uncharted territory. “I saw the first shock and the first collapse and this is worse,” warns the oil and gas industry veteran in an interview with S&P Global Platts. “My expectation is for oil to fall below $20 per barrel. We have seen it before.”
The reasons for his concerns are two-fold. Firstly, a three-year old pact between Riyadh and the Kremlin to manage the price of oil has collapsed, perhaps irrevocably. In response to plummeting prices caused by the coronavirus outbreak, Saudi Arabia had hoped for Opec and its allies to extend 1.7 million barrels per day of production cuts through to the end of 2020, with a top-up of a further 1.5 million barrels per day.
Middle East News: #Oman Seeks More Than $1 Billion in Loans - Bloomberg
Middle East News: Oman Seeks More Than $1 Billion in Loans - Bloomberg:
Oman, the most vulnerable Gulf country in the oil-price war, plans to raise more than $1 billion in loans in the first half to bridge its budget deficit, according to people with knowledge of the plans.
The sultanate, which is rated junk by the three major rating companies, is in talks with local and international banks about the borrowing, the people said, asking not to be identified because the talks are private. No decision has been made, they said.
If oil prices remain low the government will focus on asset sales and reserves to fill a widening gap, one of the people said. The Ministry of Finance didn’t immediately respond to requests for comment.
Oman, the most vulnerable Gulf country in the oil-price war, plans to raise more than $1 billion in loans in the first half to bridge its budget deficit, according to people with knowledge of the plans.
The sultanate, which is rated junk by the three major rating companies, is in talks with local and international banks about the borrowing, the people said, asking not to be identified because the talks are private. No decision has been made, they said.
If oil prices remain low the government will focus on asset sales and reserves to fill a widening gap, one of the people said. The Ministry of Finance didn’t immediately respond to requests for comment.
UAE News: #AbuDhabi Insurer Helps NMC Health Pay Salaries - Bloomberg
UAE News: Abu Dhabi Insurer Helps NMC Health Pay Salaries - Bloomberg:
An Abu Dhabi-owned insurer is helping NMC Health Plc pay overdue bills, according to people familiar with the matter, in what could be a sign the emirate is stepping in to help the embattled hospital operator.
The National Health Insurance Co., known as Daman, is speeding up payments to Abu Dhabi-based NMC so it can pay salaries and other invoices, the people said.
The move by Daman, which is 80%-owned by Abu Dhabi’s government and the rest by Munich Re, is seen as an intervention by the oil-rich emirate to address a cash shortfall. It also shows the extent of troubles at NMC, which was once a darling of London stock markets and an example of a Middle Eastern success story.
Banks have been reluctant to lend to London-listedNMC since Muddy Waters Capital LLC accused it of financial improprieties in December. The company earlier this month asked lenders for an informal standstill on its existing facilities.
An Abu Dhabi-owned insurer is helping NMC Health Plc pay overdue bills, according to people familiar with the matter, in what could be a sign the emirate is stepping in to help the embattled hospital operator.
The National Health Insurance Co., known as Daman, is speeding up payments to Abu Dhabi-based NMC so it can pay salaries and other invoices, the people said.
The move by Daman, which is 80%-owned by Abu Dhabi’s government and the rest by Munich Re, is seen as an intervention by the oil-rich emirate to address a cash shortfall. It also shows the extent of troubles at NMC, which was once a darling of London stock markets and an example of a Middle Eastern success story.
Banks have been reluctant to lend to London-listedNMC since Muddy Waters Capital LLC accused it of financial improprieties in December. The company earlier this month asked lenders for an informal standstill on its existing facilities.
Oil Price News: #SaudiArabia Aramco to Pump Record Crude in April - Bloomberg
Oil Price News: Saudi Arabia Aramco to Pump Record Crude in April - Bloomberg:
Saudi Arabia escalated its oil price war with Russia on Tuesday, with its state-owned company pledging to supply a record 12.3 million barrels a day next month, a massive production hike to flood the market.
The output increase -- more than 25% up from last month -- puts Aramco supply above its maximum sustainable capacity, indicating that the kingdom is even tapping its strategic inventories to dump as much crude, as quickly as possible, on the market. In February, Saudi Arabia produced about 9.7 million barrels a day.
It’s the latest maneuver in what’s set to be a long and bitter price war between Russia and Saudi Arabia. On Monday benchmark oil prices fell more than 20%, the largest one-day drop since the Gulf War in 1991, creating mayhem in global equity and bond markets.
Saudi Arabia escalated its oil price war with Russia on Tuesday, with its state-owned company pledging to supply a record 12.3 million barrels a day next month, a massive production hike to flood the market.
The output increase -- more than 25% up from last month -- puts Aramco supply above its maximum sustainable capacity, indicating that the kingdom is even tapping its strategic inventories to dump as much crude, as quickly as possible, on the market. In February, Saudi Arabia produced about 9.7 million barrels a day.
It’s the latest maneuver in what’s set to be a long and bitter price war between Russia and Saudi Arabia. On Monday benchmark oil prices fell more than 20%, the largest one-day drop since the Gulf War in 1991, creating mayhem in global equity and bond markets.
Want to Make a Gulf Dealmaker Laugh? Ask When’s the Next IPO - Bloomberg
Want to Make a Gulf Dealmaker Laugh? Ask When’s the Next IPO - Bloomberg:
Times are especially tough for dealmakers in the Gulf, where the currents battering global markets have converged. But a simple question did brighten a senior banker’s mood the other day: He burst out laughing when asked about his next initial public offering.
The promise that Saudi Arabia would anchor a regional investment-banking boom moved further into the distance after the crash in oil prices and the weekend arrests of senior members of the House of Saud.
The reaction Monday in Dubai’s financial center amid the market rout ranged from gallows humor -- jokes about stocking up on toilet paper -- to resignation to some guarded optimism. The bankers and lawyers all agreed that no clients would be making any critical decisions until the dust settles. Some complained air-travel restrictions related to the coronavirus meant they couldn’t visit those few customers contemplating moves.
“This kind of uncertainty may affect investment decisions and will require strategic and tactical adjustments but will also create new opportunities,” said Miguel Azevedo, head of investment banking for the Middle East and Africa at Citigroup Inc.
Times are especially tough for dealmakers in the Gulf, where the currents battering global markets have converged. But a simple question did brighten a senior banker’s mood the other day: He burst out laughing when asked about his next initial public offering.
The promise that Saudi Arabia would anchor a regional investment-banking boom moved further into the distance after the crash in oil prices and the weekend arrests of senior members of the House of Saud.
The reaction Monday in Dubai’s financial center amid the market rout ranged from gallows humor -- jokes about stocking up on toilet paper -- to resignation to some guarded optimism. The bankers and lawyers all agreed that no clients would be making any critical decisions until the dust settles. Some complained air-travel restrictions related to the coronavirus meant they couldn’t visit those few customers contemplating moves.
“This kind of uncertainty may affect investment decisions and will require strategic and tactical adjustments but will also create new opportunities,” said Miguel Azevedo, head of investment banking for the Middle East and Africa at Citigroup Inc.
Slowing business hits #Dubai firms as coronavirus fears intensify | ZAWYA MENA Edition
Slowing business hits Dubai firms as coronavirus fears intensify | ZAWYA MENA Edition:
Companies in Dubai are feeling the economic impact due to coronavirus outbreak, while business confidence has fallen to the lowest level in more than two years, a new survey revealed.
According to IHS Markit, which tracks business conditions in the non-oil private sector, firms have been hit by weaker sales and client demand, with the travel, tourism and construction industries not faring well.
Several companies are facing increasing business challenges including replenishing stocks which has become difficult due to delays on imports from China.
Overall, the seasonally adjusted Dubai Purchasing Managers’ Index (PMI) dropped to a four-year low of 5.0 in February, from 50.6 in January.
“The headline PMI was held back by weaker sales and lower inventories at Dubai firms… Construction fared the worst of the monitored categories, recording a moderate decline in business conditions, while the travel and tourism sector stalled,” IHS Market said in its latest report.
Companies in Dubai are feeling the economic impact due to coronavirus outbreak, while business confidence has fallen to the lowest level in more than two years, a new survey revealed.
According to IHS Markit, which tracks business conditions in the non-oil private sector, firms have been hit by weaker sales and client demand, with the travel, tourism and construction industries not faring well.
Several companies are facing increasing business challenges including replenishing stocks which has become difficult due to delays on imports from China.
Overall, the seasonally adjusted Dubai Purchasing Managers’ Index (PMI) dropped to a four-year low of 5.0 in February, from 50.6 in January.
“The headline PMI was held back by weaker sales and lower inventories at Dubai firms… Construction fared the worst of the monitored categories, recording a moderate decline in business conditions, while the travel and tourism sector stalled,” IHS Market said in its latest report.
#UAE's ADNOC cuts Murban crude price for Feb by $11.70/barrel | ZAWYA MENA Edition
UAE's ADNOC cuts Murban crude price for Feb by $11.70/barrel | ZAWYA MENA Edition:
Abu Dhabi National Oil Company (ADNOC) has cut its retroactive selling price for its benchmark Murban crude for February by $11.70 a barrel to $56.10 a barrel, the company said on Monday.
In January, ADNOC has set its selling price for Murban at $67.80 per barrel.
"ADNOC has always sets a fair and reasonable retroactive price for its crude that is consistent with market conditions. We can assure our customers that this practice will continue," the company said in a statement.
ADNOC has also cut its official selling prices for the rest of its crude grades for February. The move comes after Saudi Arabia slashed crude prices for April, following the collapse of OPEC’s pact on cutting supplies with Russia.
Abu Dhabi National Oil Company (ADNOC) has cut its retroactive selling price for its benchmark Murban crude for February by $11.70 a barrel to $56.10 a barrel, the company said on Monday.
In January, ADNOC has set its selling price for Murban at $67.80 per barrel.
"ADNOC has always sets a fair and reasonable retroactive price for its crude that is consistent with market conditions. We can assure our customers that this practice will continue," the company said in a statement.
ADNOC has also cut its official selling prices for the rest of its crude grades for February. The move comes after Saudi Arabia slashed crude prices for April, following the collapse of OPEC’s pact on cutting supplies with Russia.
#Saudi to hike April crude supply to 12.3 million bpd: Aramco CEO - Reuters
Saudi to hike April crude supply to 12.3 million bpd: Aramco CEO - Reuters:
Saudi Aramco (2222.SE) will raise its crude supply, which includes oil to its customers inside the kingdom and abroad, to 12.3 million barrels per day (bpd) in April, CEO Amin Nasser said on Tuesday.
April’s crude supply will be “300,000 barrels per day over the company’s maximum sustained capacity of 12 million bpd,” Nasser said in a statement received by Reuters.
The company has agreed with its customers to provide those volumes starting April 1, he added.
Supply to the market from production may differ depending on the movement of barrels in and out of storage.
Saudi Aramco (2222.SE) will raise its crude supply, which includes oil to its customers inside the kingdom and abroad, to 12.3 million barrels per day (bpd) in April, CEO Amin Nasser said on Tuesday.
April’s crude supply will be “300,000 barrels per day over the company’s maximum sustained capacity of 12 million bpd,” Nasser said in a statement received by Reuters.
The company has agreed with its customers to provide those volumes starting April 1, he added.
Supply to the market from production may differ depending on the movement of barrels in and out of storage.
Moody's downgrades five Omani banks after sovereign downgrade | ZAWYA MENA Edition
Moody's downgrades five Omani banks after sovereign downgrade | ZAWYA MENA Edition:
Moody's has downgraded the long-term local and foreign currency deposit ratings of five Omani banks, following the rating agency’s downgrade of the government of Oman’s issuer rating to Ba2 with a stable outlook.
The five banks are: Bank Muscat, Bank Dhofar, National Bank of Oman (NBO), Sohar International bank and Oman Arab Bank (OAB).
“Today's rating action reflects, to differing degrees, a combination of (i) the Omani government's weakened fiscal capacity to support the country's banks in case of need, as indicated by the downgrade of the sovereign rating, and (ii) the weakening standalone credit profiles of some banks,” the ratings agency said in a note.
At the same time, Moody's affirmed the long-term local currency deposit ratings and downgraded the long-term foreign currency deposit rating of two banks: HSBC Bank Oman SAOG (HBON) and Bank Nizwa.
Moody's has downgraded the long-term local and foreign currency deposit ratings of five Omani banks, following the rating agency’s downgrade of the government of Oman’s issuer rating to Ba2 with a stable outlook.
The five banks are: Bank Muscat, Bank Dhofar, National Bank of Oman (NBO), Sohar International bank and Oman Arab Bank (OAB).
“Today's rating action reflects, to differing degrees, a combination of (i) the Omani government's weakened fiscal capacity to support the country's banks in case of need, as indicated by the downgrade of the sovereign rating, and (ii) the weakening standalone credit profiles of some banks,” the ratings agency said in a note.
At the same time, Moody's affirmed the long-term local currency deposit ratings and downgraded the long-term foreign currency deposit rating of two banks: HSBC Bank Oman SAOG (HBON) and Bank Nizwa.
Oil jumps after rout on stimulus hopes but price war weighs - Reuters
Oil jumps after rout on stimulus hopes but price war weighs - Reuters:
Oil prices jumped by around 4% on Tuesday after the biggest one-day rout in nearly 30 years, as investors eyed the possibility of economic stimulus, although a looming price war weighed on sentiment.
U.S. President Donald Trump on Monday said he will be taking “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak, while Japan’s government plans to spend more than $4 billion in a second package of steps to cope with the virus.
Brent crude futures were up $1.44, or around 4%, to $35.80 a barrel by 0903 GMT, after hitting a session high of $37.38 a barrel.
West Texas Intermediate (WTI) crude gained $1.52, or around 5%, to $32.65 a barrel, after hitting a high of $33.73.
Both benchmarks plunged 25% on Monday, dropping to their lowest levels since February 2016 and recording their biggest one-day percentage declines since Jan. 17, 1991, when oil prices fell at the outset of the first Gulf War.
Oil prices jumped by around 4% on Tuesday after the biggest one-day rout in nearly 30 years, as investors eyed the possibility of economic stimulus, although a looming price war weighed on sentiment.
U.S. President Donald Trump on Monday said he will be taking “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak, while Japan’s government plans to spend more than $4 billion in a second package of steps to cope with the virus.
Brent crude futures were up $1.44, or around 4%, to $35.80 a barrel by 0903 GMT, after hitting a session high of $37.38 a barrel.
West Texas Intermediate (WTI) crude gained $1.52, or around 5%, to $32.65 a barrel, after hitting a high of $33.73.
Both benchmarks plunged 25% on Monday, dropping to their lowest levels since February 2016 and recording their biggest one-day percentage declines since Jan. 17, 1991, when oil prices fell at the outset of the first Gulf War.
Mideast Stocks: Gulf Stocks rebound in early trade as oil prices bounce back | ZAWYA MENA Edition
Mideast Stocks: Gulf Stocks rebound in early trade as oil prices bounce back | ZAWYA MENA Edition:
Gulf stock markets rebounded in early trade on Tuesday after their record falls in the previous session, tracking a bounce-back in Asian peers and oil prices on stimulus hopes and virus slowdown in China.
Oil prices rose 8% after a 25% slump on Monday, the biggest one-day rout in nearly 30 years, which was triggered by Saudi Arabia's move to slash prices and raise production next month after Russia refused to support deeper cuts in oil output to cope with the outbreak of coronavirus.
President Donald Trump on Monday said he will be taking "major" steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak, while the European Central Bank meets on Thursday and will be under intense pressure to act.
Chinese President Xi Jinping visited Wuhan the epicentre of the coronavirus outbreak on Tuesday; a sign that Beijing believes its efforts to control the virus are working. Mainland China reported 19 new coronavirus infections on Monday down from 40 a day earlier.
Saudi Arabia's benchmark index was up 5.7% with Al Rajhi Bank advancing 6.5%, while the Oil giant Saudi Aramco climbed 6.4% to 30.15 riyals ($8.03)
Gulf stock markets rebounded in early trade on Tuesday after their record falls in the previous session, tracking a bounce-back in Asian peers and oil prices on stimulus hopes and virus slowdown in China.
Oil prices rose 8% after a 25% slump on Monday, the biggest one-day rout in nearly 30 years, which was triggered by Saudi Arabia's move to slash prices and raise production next month after Russia refused to support deeper cuts in oil output to cope with the outbreak of coronavirus.
President Donald Trump on Monday said he will be taking "major" steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak, while the European Central Bank meets on Thursday and will be under intense pressure to act.
Chinese President Xi Jinping visited Wuhan the epicentre of the coronavirus outbreak on Tuesday; a sign that Beijing believes its efforts to control the virus are working. Mainland China reported 19 new coronavirus infections on Monday down from 40 a day earlier.
Saudi Arabia's benchmark index was up 5.7% with Al Rajhi Bank advancing 6.5%, while the Oil giant Saudi Aramco climbed 6.4% to 30.15 riyals ($8.03)
Oil prices rise 4% after biggest one-day fall since 1991 - Reuters
Oil prices rise 4% after biggest one-day fall since 1991 - Reuters:
Oil prices rose by more than $1 on Tuesday after a price war by top producers Saudi Arabia and Russia sparked the biggest daily rout since the 1991 Gulf War, but investors saw little chance of a quick price recovery as the coronavirus cuts demand.
Saudi Arabia and Russia both said they would raise production at the weekend after a three-year pact between them and other major oil producers to limit supply fell apart on Friday.
Brent crude futures rose $1.41, or 4.1%, to $35.77 a barrel by 0034 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.25, or 4%, to $32.38 a barrel following declines of nearly 25 percent on Monday.
Oil prices rose by more than $1 on Tuesday after a price war by top producers Saudi Arabia and Russia sparked the biggest daily rout since the 1991 Gulf War, but investors saw little chance of a quick price recovery as the coronavirus cuts demand.
Saudi Arabia and Russia both said they would raise production at the weekend after a three-year pact between them and other major oil producers to limit supply fell apart on Friday.
Brent crude futures rose $1.41, or 4.1%, to $35.77 a barrel by 0034 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.25, or 4%, to $32.38 a barrel following declines of nearly 25 percent on Monday.
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