UPDATE 1-U.S. natgas futures fall near 5% with oil, mild weather forecasts - Reuters:
U.S. natural gas futures fell almost 5%
on Tuesday with oil prices declining as the coronavirus slows
economic growth and forecasts for milder weather and less
heating demand next week than previously expected.
Front-month gas futures for April delivery on the New
York Mercantile Exchange fell 8.6 cents, or 4.7%, to settle at
$1.729 per million British thermal units (mmBtu). That puts the
contract within a nickel of its lowest close in four years.
Brent crude fell to its lowest since 2016 as the
coronavirus pandemic slowed economic growth and oil demand while
Saudi Arabia and Russia kept up their battle for market share.
Even before the coronavirus started to spread, gas prices
were trading near their lowest in years. Near-record production
and mild weather has enabled utilities to leave more gas in
storage, making fuel shortages and price spikes unlikely this
winter.
Gas futures were trading about 40% below the eight-month
high of $2.905 per mmBtu hit in early November.
Tuesday, 17 March 2020
Brent crude sinks below $30/bbl as recession fears weigh - Reuters
Brent crude sinks below $30/bbl as recession fears weigh - Reuters:
Crude oil prices settled below $30 a barrel as the coronavirus pandemic slowed economic growth and oil demand on Tuesday while Saudi Arabia and Russia kept up their battle for market share.
Countries including the United States and Canada, along with nations in Europe and Asia, are taking unprecedented steps to contain the virus, which has already killed 7,500 people. Numerous governments have told residents to restrict their movements while businesses shutter, curbing demand for fuels.
Brent crude LCOc1 futures fell $1.32 to settle at $28.73, the first time that benchmark has settled below $30 per barrel since 2016. It then fell further in post-settlement trade.
West Texas Intermediate (WTI) crude CLc1 futures fell $1.75, or 6.1%, to settle at $26.95 a barrel.
“You’re getting new demand destruction news coming at you every hour,” said John Kilduff, a partner at Again Capital Management in New York.
Crude oil prices settled below $30 a barrel as the coronavirus pandemic slowed economic growth and oil demand on Tuesday while Saudi Arabia and Russia kept up their battle for market share.
Countries including the United States and Canada, along with nations in Europe and Asia, are taking unprecedented steps to contain the virus, which has already killed 7,500 people. Numerous governments have told residents to restrict their movements while businesses shutter, curbing demand for fuels.
Brent crude LCOc1 futures fell $1.32 to settle at $28.73, the first time that benchmark has settled below $30 per barrel since 2016. It then fell further in post-settlement trade.
West Texas Intermediate (WTI) crude CLc1 futures fell $1.75, or 6.1%, to settle at $26.95 a barrel.
“You’re getting new demand destruction news coming at you every hour,” said John Kilduff, a partner at Again Capital Management in New York.
REFILE- #Bahrain banks must offer borrowers six-month deferral on installments - central bank - Reuters
REFILE-Bahrain banks must offer borrowers six-month deferral on installments - central bank - Reuters:
Bahrain’s central bank said on Monday banks, financing and microfinance companies must offer six-month deferrals on installments for borrowers impacted by the coronavirus outbreak, according to a circular seen by Reuters.
The bank said the deferrals must come with no fees and no increase in interest rates unless borrowers agree to shorter periods.
The bank also said it will give retail banks concessionary repo arrangements for up to six months at 0% on a case-by-case basis. It reduced the cash reserve ratio for retail banks to 3% from 5%.
Bahrain’s central bank said on Monday banks, financing and microfinance companies must offer six-month deferrals on installments for borrowers impacted by the coronavirus outbreak, according to a circular seen by Reuters.
The bank said the deferrals must come with no fees and no increase in interest rates unless borrowers agree to shorter periods.
The bank also said it will give retail banks concessionary repo arrangements for up to six months at 0% on a case-by-case basis. It reduced the cash reserve ratio for retail banks to 3% from 5%.
#UAE News: Daily Shares Decline to be Limited to 5% From March 18 - Bloomberg
UAE News: Daily Shares Decline to be Limited to 5% From March 18 - Bloomberg:
The United Arab Emirates imposed a 5% daily lower fluctuation limit for shares as markets in Dubai and Abu Dhabi joined a global rout.
Some shares may be allowed to drop as much as 7%, according to a statement posted on the website of the Securities & Commodities Authority. It didn’t provide further details.
Dubai and Abu Dhabi’s main stock indexes are both down 32% this month. The earlier fluctuation limit was 10%.
The United Arab Emirates imposed a 5% daily lower fluctuation limit for shares as markets in Dubai and Abu Dhabi joined a global rout.
Some shares may be allowed to drop as much as 7%, according to a statement posted on the website of the Securities & Commodities Authority. It didn’t provide further details.
Dubai and Abu Dhabi’s main stock indexes are both down 32% this month. The earlier fluctuation limit was 10%.
Travelex Owner Starts Preparing for Potential Insolvency - Bloomberg
Travelex Owner Starts Preparing for Potential Insolvency - Bloomberg:
Finablr Plc, the embattled owner of foreign-exchange businesses including Travelex Holdings Ltd., said it hired an adviser to prepare for potential insolvency proceedings.
The London-listed firm is working with an unidentified accounting firm on “rapid contingency planning,” according to a regulatory filing Tuesday. It’s taking the action “with a view to maximizing value in the group,” Finablr said in the filing.
Finablr’s move comes a day after it warned the board couldn’t accurately assess its financial situation and said its chief executive officer was stepping down. It said Monday the company would implement “a package of urgent measures” to restore stability and had hired compliance consultancy Kroll to review its debt and related-party transactions.
The company found about $100 million in checks dating from before Finablr’s May initial public offering that were used to benefit third parties, according to Monday’s statement.
Finablr Plc, the embattled owner of foreign-exchange businesses including Travelex Holdings Ltd., said it hired an adviser to prepare for potential insolvency proceedings.
The London-listed firm is working with an unidentified accounting firm on “rapid contingency planning,” according to a regulatory filing Tuesday. It’s taking the action “with a view to maximizing value in the group,” Finablr said in the filing.
Finablr’s move comes a day after it warned the board couldn’t accurately assess its financial situation and said its chief executive officer was stepping down. It said Monday the company would implement “a package of urgent measures” to restore stability and had hired compliance consultancy Kroll to review its debt and related-party transactions.
The company found about $100 million in checks dating from before Finablr’s May initial public offering that were used to benefit third parties, according to Monday’s statement.
#SaudiArabia News: Oil Exports to Rise to Record 10 Million B/D - Bloomberg
Saudi Arabia News: Oil Exports to Rise to Record 10 Million B/D - Bloomberg:
Saudi Arabia plans to boost oil exports even further from April to May, reaching a record of more than 10 million barrels a day as the kingdom taps a new field.
The increase in shipments of about 250,000 barrels a day shows the kingdom is determined to carry on with its policy of pumping flat out after its alliance with Russia collapsed. Moscow and Riyadh are engaged now in a price war that has sent Brent crude, the global benchmark, below $30 a barrel and prompted energy companies including Exxon Mobil Corp. to plan for big spending cuts.
“Saudi Arabia will utilize the gas produced from the Fadhili gas plant to compensate for around 250,000 barrels a day of domestic oil consumption, which will enable the Kingdom to increase its crude exports during the coming few months to exceed 10 million barrels a day,” the kingdom’s Energy Ministry said in a statement on Tuesday.
Saudi Arabia plans to boost oil exports even further from April to May, reaching a record of more than 10 million barrels a day as the kingdom taps a new field.
The increase in shipments of about 250,000 barrels a day shows the kingdom is determined to carry on with its policy of pumping flat out after its alliance with Russia collapsed. Moscow and Riyadh are engaged now in a price war that has sent Brent crude, the global benchmark, below $30 a barrel and prompted energy companies including Exxon Mobil Corp. to plan for big spending cuts.
“Saudi Arabia will utilize the gas produced from the Fadhili gas plant to compensate for around 250,000 barrels a day of domestic oil consumption, which will enable the Kingdom to increase its crude exports during the coming few months to exceed 10 million barrels a day,” the kingdom’s Energy Ministry said in a statement on Tuesday.
Oil sinks below $30 as recession fears weigh - Reuters
Oil sinks below $30 as recession fears weigh - Reuters:
Oil fell below $30 a barrel on Tuesday to its lowest since 2016 as the coronavirus pandemic hits economic growth and oil demand while Saudi Arabia and Russia battle for market share.
Countries including the United States and Canada, along with nations in Europe and Asia, are taking unprecedented steps to contain the virus, curbing demand for crude and products such as gasoline and jet fuel.
Brent crude LCOc1 slipped 1.5% to $29.57 a barrel at 1316 GMT, having earlier touched $29.44, the lowest since January 2016. U.S. West Texas Intermediate (WTI) crude CLc1 rose 0.7% to $28.91.
Oil fell below $30 a barrel on Tuesday to its lowest since 2016 as the coronavirus pandemic hits economic growth and oil demand while Saudi Arabia and Russia battle for market share.
Countries including the United States and Canada, along with nations in Europe and Asia, are taking unprecedented steps to contain the virus, curbing demand for crude and products such as gasoline and jet fuel.
Brent crude LCOc1 slipped 1.5% to $29.57 a barrel at 1316 GMT, having earlier touched $29.44, the lowest since January 2016. U.S. West Texas Intermediate (WTI) crude CLc1 rose 0.7% to $28.91.
MIDEAST STOCKS-Most Gulf bourses extend losses; banks boost #Saudi - Reuters
MIDEAST STOCKS-Most Gulf bourses extend losses; banks boost Saudi - Reuters:
Most Middle Eastern stocks slid to new
multi-year lows on Tuesday, as heightened fears of the
coronavirus pandemic weighed on sentiment, while Saudi took a
breather after four sessions of losses.
The cases of coronavirus in the six-nation Gulf Cooperation
Council reached to 1,042, whereas Bahrain on Monday reported its
first death from the virus.
The Abu Dhabi index tumbled 6.3%, with the country's
largest lender First Abu Dhabi Bank losing 9.9% and
telecom firm Etisalat shedding 7.1%.
In Dubai, the index lost 5%, reaching its lowest
since January 2013. Blue-chip developer Emaar Properties
plunged 10%, while Emirates NBD Bank closed
down 5.4%.
United Arab Emirates, which reported 98 cases of
coronavirus, has urged its citizens abroad to return home due to
travel difficulties amid the spread of the virus and suspensions
of flights from some countries, state news agency WAM said on
Monday, citing the ministry of foreign affairs and international
cooperation.
- 25 of 30 Egyptian stocks decline
- Nine of 11 banks rise in Saudi
- Saudi Aramco closes up, at 29.1 riyals
- Qatar extends gains on stimulus plan
Most Middle Eastern stocks slid to new
multi-year lows on Tuesday, as heightened fears of the
coronavirus pandemic weighed on sentiment, while Saudi took a
breather after four sessions of losses.
The cases of coronavirus in the six-nation Gulf Cooperation
Council reached to 1,042, whereas Bahrain on Monday reported its
first death from the virus.
The Abu Dhabi index tumbled 6.3%, with the country's
largest lender First Abu Dhabi Bank losing 9.9% and
telecom firm Etisalat shedding 7.1%.
In Dubai, the index lost 5%, reaching its lowest
since January 2013. Blue-chip developer Emaar Properties
plunged 10%, while Emirates NBD Bank closed
down 5.4%.
United Arab Emirates, which reported 98 cases of
coronavirus, has urged its citizens abroad to return home due to
travel difficulties amid the spread of the virus and suspensions
of flights from some countries, state news agency WAM said on
Monday, citing the ministry of foreign affairs and international
cooperation.
Shuaa aims to increase asset base to $20bn as it plans to boost operations - The National
Shuaa aims to increase asset base to $20bn as it plans to boost operations - The National:
Shuaa Capital plans to expand investment banking and asset management businesses as part of a new strategy to grow money it manages to $20 billion (Dh73.4bn), the company said as it revealed its first full-year results since 2019's reverse takeover by Abu Dhabi Financial Group.
The company's expansion strategy "sets the foundation for significant and sustainable growth, despite market challenges resulting from Covid-19 and falling oil prices”, said Shuaa Capital chief executive, Jassim Alseddiqi.
“Our strategic plans, ambition and talent will enable us to strengthen our position as a leading regional investment manager, achieve regional dominance in investment banking and solidify our innovation leadership,” he added.
The reverse takeover of Shuaa Capital by ADFG, which completed in August last year, created an entity with $12.8bn of assets under management, more than 12,500 clients and 380 employees.
Shuaa Capital plans to expand investment banking and asset management businesses as part of a new strategy to grow money it manages to $20 billion (Dh73.4bn), the company said as it revealed its first full-year results since 2019's reverse takeover by Abu Dhabi Financial Group.
The company's expansion strategy "sets the foundation for significant and sustainable growth, despite market challenges resulting from Covid-19 and falling oil prices”, said Shuaa Capital chief executive, Jassim Alseddiqi.
“Our strategic plans, ambition and talent will enable us to strengthen our position as a leading regional investment manager, achieve regional dominance in investment banking and solidify our innovation leadership,” he added.
The reverse takeover of Shuaa Capital by ADFG, which completed in August last year, created an entity with $12.8bn of assets under management, more than 12,500 clients and 380 employees.
NMC Health reassures staff on salary payments | Markets – Gulf News
NMC Health reassures staff on salary payments | Markets – Gulf News:
UAE’s largest hospital operator, NMC Health, is close to securing a deal with its creditor banks for the release of the company’s funds and ensure there is no repeat of the delayed salary payments of last month, according to banking sources who spoke to ‘Gulf News’.
February salaries were paid in three stages to the 16,500-strong workforce, with the last set getting theirs by March 10 or so. Even then, it required help from Daman, the Abu Dhabi headquartered medical insurer to help out with the funds needed to pay off the salaries. It was said to be the first time in the company’s history that salaries had been delayed. It was felt that a repeat would severely undermine staff morale and hurt future prospects.
NMC Health operates more than 120 hospitals and clinics in the UAE, together accounting for more than 2,000 hospital beds.
Now, NMC Health’s interim CEO, Michael Davis issued a statement on Tuesday to reassure staff that the February issue was a one-off. In a statement to staff, released today, he expressed full “confidence” in salvaging the situation and thanked them for “their commitment to the community”.
UAE’s largest hospital operator, NMC Health, is close to securing a deal with its creditor banks for the release of the company’s funds and ensure there is no repeat of the delayed salary payments of last month, according to banking sources who spoke to ‘Gulf News’.
February salaries were paid in three stages to the 16,500-strong workforce, with the last set getting theirs by March 10 or so. Even then, it required help from Daman, the Abu Dhabi headquartered medical insurer to help out with the funds needed to pay off the salaries. It was said to be the first time in the company’s history that salaries had been delayed. It was felt that a repeat would severely undermine staff morale and hurt future prospects.
NMC Health operates more than 120 hospitals and clinics in the UAE, together accounting for more than 2,000 hospital beds.
Now, NMC Health’s interim CEO, Michael Davis issued a statement on Tuesday to reassure staff that the February issue was a one-off. In a statement to staff, released today, he expressed full “confidence” in salvaging the situation and thanked them for “their commitment to the community”.
#UAE's Emirates, flydubai shut 16 more routes as coronavirus cases surge to 180,000 | ZAWYA MENA Edition
UAE's Emirates, flydubai shut 16 more routes as coronavirus cases surge to 180,000 | ZAWYA MENA Edition:
As many countries around the world shut their borders to limit the spread of coronavirus, Emirates airline and flydubai are temporarily suspending today at least 16 more routes.
Emirates said that effective March 17, aircraft plying to and from nine cities in Portugal, Malta, Cyprus, Jordan, Iraq, Lebanon and Turkey will be grounded, bringing the total number of closed flight routes to 30 since the outbreak.
As for flydubai, services on at least seven destinations are suspended effective today, including India, Ukraine, Jordan, Iraq, Lebanon, Turkey and Sudan. More flight cancellations are also scheduled to take effect tomorrow and the next day, affecting travellers to and from Azerbaijan, Baku, Djibouti and Egypt.
Abu Dhabi-based Etihad Airways had earlier halted airline services on 18 destinations and reduced frequencies on some routes.
As many countries around the world shut their borders to limit the spread of coronavirus, Emirates airline and flydubai are temporarily suspending today at least 16 more routes.
Emirates said that effective March 17, aircraft plying to and from nine cities in Portugal, Malta, Cyprus, Jordan, Iraq, Lebanon and Turkey will be grounded, bringing the total number of closed flight routes to 30 since the outbreak.
As for flydubai, services on at least seven destinations are suspended effective today, including India, Ukraine, Jordan, Iraq, Lebanon, Turkey and Sudan. More flight cancellations are also scheduled to take effect tomorrow and the next day, affecting travellers to and from Azerbaijan, Baku, Djibouti and Egypt.
Abu Dhabi-based Etihad Airways had earlier halted airline services on 18 destinations and reduced frequencies on some routes.
#Saudi banks placed on Fitch rating watch as oil prices drop | ZAWYA MENA Edition
Saudi banks placed on Fitch rating watch as oil prices drop | ZAWYA MENA Edition:
Fitch Ratings has placed all 10 Saudi Arabian banks' Viability Ratings (VRs) on Rating Watch Negative (RWN) reflecting heightened risks of unexpected severe and prolonged deterioration in the domestic operating environment.
The Long-Term Issuer Default Ratings (IDRs) of four of these banks were also put on RWN, the ratings agency said in a note issued Monday.
The RWN placed on all Saudi Arabian banks' Viability Ratings reflect “heightened risks of unexpected severe and prolonged deterioration in the domestic operating environment for Saudi banks following the sharp fall in oil prices, which came just a few days after the interest-rate cuts by the Saudi authorities following the Fed rate cut.”
As there is little visibility on the authorities' response in terms of government spending, there are uncertainties about the length of a potential shock and its impact on the banking system, the agency said.
Fitch Ratings has placed all 10 Saudi Arabian banks' Viability Ratings (VRs) on Rating Watch Negative (RWN) reflecting heightened risks of unexpected severe and prolonged deterioration in the domestic operating environment.
The Long-Term Issuer Default Ratings (IDRs) of four of these banks were also put on RWN, the ratings agency said in a note issued Monday.
The RWN placed on all Saudi Arabian banks' Viability Ratings reflect “heightened risks of unexpected severe and prolonged deterioration in the domestic operating environment for Saudi banks following the sharp fall in oil prices, which came just a few days after the interest-rate cuts by the Saudi authorities following the Fed rate cut.”
As there is little visibility on the authorities' response in terms of government spending, there are uncertainties about the length of a potential shock and its impact on the banking system, the agency said.
#AbuDhabi's Mubadala fund takes 3.4% stake in troubled Finablr - Arabianbusiness
Abu Dhabi's Mubadala fund takes 3.4% stake in troubled Finablr - Arabianbusiness:
A fund owned by Abu Dhabi state investor Mubadala has taken a 3.4 percent stake in troubled London-listed payments firm Finablr.
Finablr confimred the investment by MIC Capital Partners - owned and managed by Mubadala Capital, part of Mubadala Investment Co - a statement on Tuesday morning.
“They have taken a stake, over the past several weeks, in Finablr, reaching a level of disclosure required by the regulators,” a spokesman told Reuters.
Finablr Plc, the owner of currency-exchange businesses including Travelex Holdings Ltd, warned on Monday it may not be able to continue operating. Its chief executive officer Promoth Manghat has stepped down.
A fund owned by Abu Dhabi state investor Mubadala has taken a 3.4 percent stake in troubled London-listed payments firm Finablr.
Finablr confimred the investment by MIC Capital Partners - owned and managed by Mubadala Capital, part of Mubadala Investment Co - a statement on Tuesday morning.
“They have taken a stake, over the past several weeks, in Finablr, reaching a level of disclosure required by the regulators,” a spokesman told Reuters.
Finablr Plc, the owner of currency-exchange businesses including Travelex Holdings Ltd, warned on Monday it may not be able to continue operating. Its chief executive officer Promoth Manghat has stepped down.
‘We Call It Uninvestible’: Market Views After Another Rout - Bloomberg
‘We Call It Uninvestible’: Market Views After Another Rout - Bloomberg:
After twice seeing stocks on Wall Street tumble by the most since 1987 in recent days, market participants are largely averse to calling a bottom to the rout in global equities.
After twice seeing stocks on Wall Street tumble by the most since 1987 in recent days, market participants are largely averse to calling a bottom to the rout in global equities.
European, Middle Eastern & African Stocks - Bloomberg
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Virus-hit Gulf has little room to boost revenue after oil price shock - Reuters
Virus-hit Gulf has little room to boost revenue after oil price shock - Reuters:
The coronavirus outbreak and plunging crude prices are a double blow that leaves Gulf Arab governments with few options to manage fiscal stability while trying to shield their economies and defend currency pegs.
Even the largest Arab economy, Saudi Arabia, which launched a war for market share with Russia following the March 6 collapse of an output deal between OPEC and its allies that has wiped 30% off oil prices, will face strains.
The last oil price rout in 2014 saw the region, which relies on energy exports, slash subsidies, introduce taxes to diversify revenue sources and try to shrink lavish cradle-to-grave welfare systems and bloated public sectors.
Now, a focus on stimulating economic activity and easing the impact on their populations of the spreading coronavirus makes it difficult for the six Gulf Cooperation Council (GCC) governments to hike taxes or cut subsidies.
The coronavirus outbreak and plunging crude prices are a double blow that leaves Gulf Arab governments with few options to manage fiscal stability while trying to shield their economies and defend currency pegs.
Even the largest Arab economy, Saudi Arabia, which launched a war for market share with Russia following the March 6 collapse of an output deal between OPEC and its allies that has wiped 30% off oil prices, will face strains.
The last oil price rout in 2014 saw the region, which relies on energy exports, slash subsidies, introduce taxes to diversify revenue sources and try to shrink lavish cradle-to-grave welfare systems and bloated public sectors.
Now, a focus on stimulating economic activity and easing the impact on their populations of the spreading coronavirus makes it difficult for the six Gulf Cooperation Council (GCC) governments to hike taxes or cut subsidies.
Oil prices jump over $1 as sharp falls draw bargain buyers - Reuters
Oil prices jump over $1 as sharp falls draw bargain buyers - Reuters:
Oil rose more than $1 on Tuesday as bargain hunters emerged after recent sharp falls due to the coronavirus pandemic and the price war between Saudi Arabia and Russia, but fears of a recession still dragged on the market.
Brent crude LCOc1 was up by 3%, or 89 cents, to $30.94 a barrel by 0746 GMT, after hitting a high of $31.25.
U.S. West Texas Intermediate (WTI) crude CLc1 rose 4.7%, or $1.36, to $30.06, having come off a high of $30.21.
“Presumably, the market is getting supported by physical bargain hunters and short covering,” said Stephen Innes, chief markets strategist at AxiCorp.
Oil rose more than $1 on Tuesday as bargain hunters emerged after recent sharp falls due to the coronavirus pandemic and the price war between Saudi Arabia and Russia, but fears of a recession still dragged on the market.
Brent crude LCOc1 was up by 3%, or 89 cents, to $30.94 a barrel by 0746 GMT, after hitting a high of $31.25.
U.S. West Texas Intermediate (WTI) crude CLc1 rose 4.7%, or $1.36, to $30.06, having come off a high of $30.21.
“Presumably, the market is getting supported by physical bargain hunters and short covering,” said Stephen Innes, chief markets strategist at AxiCorp.
MIDEAST STOCKS- #Saudi stocks gain on banks, Aramco; #UAE extends losses | Nasdaq
MIDEAST STOCKS-Saudi stocks gain on banks, Aramco; UAE extends losses | Nasdaq:
Saudi Arabian stocks firmed in early trade on Tuesday, supported by gains in the banking sector and as index heavyweight Saudi Aramco rose on the back of higher oil prices.
The indexes in the United Arab Emirates (UAE), however, extended their losses as coronavirus cases in the Gulf exceeded 1,000 and Bahrain reported its first death from the virus.
Saudi Arabia's index .TASI was 1.1% higher, after declining for four straight sessions. National Commercial Bank 1180.SE, the country's largest lender, jumped 3.1%, while Al Rajhi Bank 1120.SE ticked up 1.2%.
Saudi Aramco 2222.SE firmed 1.1% as oil rose more than $1 on bargain-buying after recent sharp falls due to the coronavirus pandemic and the price war between Saudi Arabia and Russia.
Aramco's Chief Financial Officer Khalid al-Dabbagh said on Monday the company was "very comfortable" with $30 a barrel oil prices and that it can meet its dividends commitments and shareholders expectations even in the current low oil price environment.
Saudi Arabian stocks firmed in early trade on Tuesday, supported by gains in the banking sector and as index heavyweight Saudi Aramco rose on the back of higher oil prices.
The indexes in the United Arab Emirates (UAE), however, extended their losses as coronavirus cases in the Gulf exceeded 1,000 and Bahrain reported its first death from the virus.
Saudi Arabia's index .TASI was 1.1% higher, after declining for four straight sessions. National Commercial Bank 1180.SE, the country's largest lender, jumped 3.1%, while Al Rajhi Bank 1120.SE ticked up 1.2%.
Saudi Aramco 2222.SE firmed 1.1% as oil rose more than $1 on bargain-buying after recent sharp falls due to the coronavirus pandemic and the price war between Saudi Arabia and Russia.
Aramco's Chief Financial Officer Khalid al-Dabbagh said on Monday the company was "very comfortable" with $30 a barrel oil prices and that it can meet its dividends commitments and shareholders expectations even in the current low oil price environment.