Oil Has Best Day Ever After Trump Hints at Role in Price War - Bloomberg

Oil Has Best Day Ever After Trump Hints at Role in Price War - Bloomberg:







PRICES:

• West Texas Intermediate for April delivery, which expires Friday, climbed $4.85 to settle at $25.22 a barrel on the New York Mercantile Exchange 
• Global benchmark Brent crude added $3.96 to $28.84 at 3:47 p.m. on London’s ICE Futures Europe exchange

Qatari, U.A.E., Indian Lenders Face Exposure to Troubled Finablr - Bloomberg

Qatari, U.A.E., Indian Lenders Face Exposure to Troubled Finablr - Bloomberg:

Banks from Qatar, the United Arab Emirates and India risk losing millions of dollars due to their exposure to Finablr Plc, the foreign-exchange operator that’s preparing for potential insolvency, according to people with knowledge of the matter.

Qatar National Bank, Doha Bank, National Bank of Fujairah, Commercial Bank International and Bank of Baroda are still owed about $300 million by Finablr’s parent BRS Ventures, which is owned by Bavaguthu Raghuram Shetty, some of the people said, asking not to be identified because the matter is private. The loan was used to refinance a bridge loan for the acquisition of Travelex Holdings Ltd.

Shetty pledged about 56% of his shares in the London-listed firm as collateral for the loan when he was unable to repay it after Finablr’s initial public offering last May, the people said. Since listing, the shares have plummeted about 93%, giving Finablr a market value of 77 million pounds ($89 million) when it was halted from trading this week. That’s down from a peak of 1.5 billion pounds in December, making it one of the most value-destructive IPOs in London in recent years.

While all banks may struggle to recover the funds, Qatari lenders are likely to be hit the hardest due to an ongoing standoff between the gas-rich Gulf state and the U.A.E. where BRS Ventures is based. A group of countries, led by Saudi Arabia, cut commercial and political ties with Qatar in 2017 so it’s not clear how the Qatari banks could enforce their claims against Shetty’s company, the people said.

Gulf stock markets hit multi-year lows as virus, oil weigh - Arabianbusiness

Gulf stock markets hit multi-year lows as virus, oil weigh - Arabianbusiness:

Gulf stock markets have plunged to multi-year lows despite massive stimulus spending as the region has suffered the double blow of plummeting oil prices and sweeping coronavirus shutdowns.

Since early March, all seven bourses in the Gulf region have suffered some of their most tumultuous performances, with UAE markets in Dubai and Abu Dhabi as well as in Kuwait shedding over a third of their value.

The Saudi Tadawul market -- the biggest bourse in the region and among the world's top ten -- has slumped about 18 percent since the start of the month.

Saudi energy giant Aramco, the largest listed company in the world, has dipped 12 percent since March 1 and its market value has dropped to $1.57 trillion.

Saudi Arabia, the United Arab Emirates, Qatar and Oman have announced stimulus measures worth some $85 billion in total to support their economies, with some of the cash targeted to shore up sagging stock markets.

Mideast airlines lose $7B as airports shut to combat virus

Mideast airlines lose $7B as airports shut to combat virus:

Seven Middle Eastern countries have suspended all commercial flights due to the fast-spreading new coronavirus, as the aviation industry’s largest trade association announced Thursday that airlines in the region have already lost more than $7 billion in revenue.

Those losses translate into potentially hundreds of thousands of people losing their jobs in the airline industry in the Middle East alone, the International Air Transport Association said.

IATA called for emergency aid of up to $200 billion for airlines globally.

The Middle East has some 20,000 cases of the virus, with most cases in Iran or linked to travel from Iran.

UPDATE 1-U.S. blacklists 5 #UAE-based companies over purchase of Iran oil - Reuters

UPDATE 1-U.S. blacklists 5 UAE-based companies over purchase of Iran oil - Reuters:

The United States on Thursday imposed sanctions on five United Arab Emirates-based companies, accusing them of having collectively purchased in 2019 hundreds of thousands of metric tons of petroleum products from Iran.

The U.S. Treasury Department said in a statement the blacklisted companies - Petro Grand FZE, Alphabet International DMCC, Swissol Trade DMCC, Alam Althrwa General Trading LLC and Alwaneo LLC Co - purchased the petroleum products in 2019 from the National Iranian Oil Company for delivery to the United Arab Emirates.

The announcement, which followed the blacklisting of Chinese and South African companies earlier this week over Iran oil trade, seemed a further indication Washington would not ease its campaign of choking off Tehran’s ability to export its oil, despite appeals from China and others that it do so on humanitarian grounds because of the coronavirus outbreak.

U.S. oil surges 20% after three-day sell off - Reuters

U.S. oil surges 20% after three-day sell off - Reuters:

U.S. oil prices rose 20% on Thursday, recouping some losses from a sell-off that drove prices to near 20-year lows, but analysts saw the rebound as a brief reprieve, anticipating more weakness as the coronavirus outbreak takes its toll on global demand. 



The outbreak has put pressure on the market as schools and businesses have shuttered, suppressing economic activity around the globe. At the same time, the price war between Saudi Arabia and Russia is flooding markets worldwide with cheap oil.

U.S. crude and global benchmark Brent, both of which have lost half their value in less than two weeks, got some respite on Thursday as investors across financial markets assessed the impact of massive central bank stimulus measures.

Brent crude LCOc1 was up $2.00, or 9%, at $26.88 a barrel by 11:51 a.m. EDT (1551 GMT), having plunged to $24.52 on Wednesday, its lowest since 2003.

West Texas Intermediate (WTI) crude CLc1 gained $3.85, or 19%, to $24.22 after dropping nearly 25% to an 18-year low in the previous session.

Gulf’s sovereign funds are now gilt-edged airbags – Breakingviews

Gulf’s sovereign funds are now gilt-edged airbags – Breakingviews:

The Middle East’s big sovereign wealth funds are set to become coronavirus airbags. The $700 billion Abu Dhabi Investment Authority, $300 billion Qatar Investment Authority and Saudi Arabia’s $300 billion Public Investment Fund control a big slug of global assets and have become a fixture in global dealmaking. But they’re attached to increasingly precarious economies.

Emerging markets, including Saudi Arabia, are hearing a deafening sucking sound. The cumulative $70 billion-plus of non-resident portfolio outflows since late January is nearly three times the level seen in 2008, according to the Institute of International Finance. With a barrel of Brent crude oil now trading under $30, Saudi, the United Arab Emirates, Bahrain, Oman, Kuwait and Qatar are all well below the point at which their budgets and their current accounts balance. With inventories soaring to the point that oil may not even be able to be stored, far less sold, they could stay low for years.

When crude was last at this level, between 2014 and 2016, Saudi and its peers cut subsidies and introduced new taxes that helped curb demand and protect their pegs. They could do so again, or hike debt. Yet even autocrats can only push subjects accustomed to fiscal perks so far, and the spread of a Saudi Eurobond maturing in 2030 over U.S. Treasuries has more than doubled over the last month, Refinitiv data shows. Raiding rainy-day funds might be preferable.

The funds have airbag capacity. Most have a liquid buffer. ADIA, for example, doesn’t disclose its exact asset breakdown but can hold a maximum of 30% in government bonds and cash.

Oil War, Virus Plight Force $13.3 Billion in #Saudi Spending Cuts - Bloomberg

Oil War, Virus Plight Force $13.3 Billion in Saudi Spending Cuts - Bloomberg:

Saudi Arabia announced 50 billion riyals ($13.3 billion) in budget spending cuts after the crash in oil prices and the coronavirus outbreak wreaked havoc on its public finances.

As the kingdom doubled down in its price war with Russia, authorities signed off on expenditure reductions equivalent to under 5% of the total outlays approved in this year’s budget, Finance Minister Mohammed al-Jadaan was cited as saying by state-run Saudi Press Agency. Only days ago, the central bank unveiled a 50 billion-riyal package to support private businesses hurt by the disease known as Covid-19.

“The government approved a partial reduction in some items with the least social and economic impact,” al-Jadaan said, according to SPA.

“In view of the possible continuation of the effects of the spread of Covid-19 and its consequences on the global economy, the developments will be reassessed, items of expenditures reviewed and appropriate decisions will be taken in a timely manner,” al-Jadaan said.

How Low Can Brent, WTI Crude Oil Go? One Forecast Sees $5/Barrel - Bloomberg

How Low Can Brent, WTI Crude Oil Go? One Forecast Sees $5/Barrel - Bloomberg:

Oil traders struggling to navigate one of the biggest oil crashes in history say the worst is yet to come.

Even after a 60% plunge so far this year to the lowest since 2003, prices will likely drop further to $20 a barrel or below, according to a survey of traders from some of the world’s biggest oil companies and merchants. Analysts from Goldman Sachs Group Inc. to Citigroup Inc. also expect prices to extend declines in the coming months, with some even speculating certain regional prices could go negative as markets try to send signals to halt supply.

Oil has been battered by the simultaneous fight against Covid-19, which is expected to reverse more than a decade of global demand growth, and a flood of supply as Saudi Arabia and Russia battle for market share. The sudden and severe plunge in oil prices has helped fuel the broader sell-off across markets, and threatens economies across Latin America and the Middle East, as well as the U.S., where the energy industry accounts for large chunks of both output and debt.

Exclusive: Bahrain in talks for $1 billion loan after bond plans suspended - sources - Reuters

Exclusive: Bahrain in talks for $1 billion loan after bond plans suspended - sources - Reuters:

Bahrain is in talks with banks for a loan of about $1 billion after the Gulf state’s plans to issue international bonds were suspended due to bad market conditions, sources told Reuters.

The small Gulf oil producer, rated “junk” by all the three major credit rating agencies, is seeking funds amid a slump in global oil prices which is hurting its finances.

Bahrain was bailed out by some of its wealthier Gulf allies in 2018 to stave off the risk of a credit crisis after a prolonged period of lower oil prices pushed its public debt to nearly 93% percent of annual economic output.

The latest plunge in crude prices - due to a market share war between Saudi Arabia and Russia and the fallout from coronavirus - is now straining the finances of Gulf Arab states, with Bahrain and Oman particularly vulnerable.

Oil up after three-day plunge but coronavirus curbs gains - Reuters

Oil up after three-day plunge but coronavirus curbs gains - Reuters:

Oil prices rose nearly 3% on Thursday after a three-day selloff sparked by the spread of the coronavirus and a market share battle between Saudi Arabia and Russia drove them to their lowest in almost two decades.

Benchmark Brent, which has lost half its value in less than two weeks, got some respite as investors across financial markets assessed the impact of massive central bank stimulus measures.

Brent crude LCOc1 was up 72 cents, or 3%, to $25.60 a barrel by 1225 GMT, after plunging to $24.52 on Wednesday, its lowest level since 2003.

West Texas Intermediate (WTI) crude CLc1 gained $1.57, or 7.8%, to $21.94 after dropping nearly 25% in the previous session to an 18-year low.

But analysts said gains were likely to be temporary, as tumbling demand was compounded by the collapse this month of a deal between OPEC, Russia and others to curb supply.

MIDEAST STOCKS-Most Gulf stocks end higher on stimulus, oil prices | Nasdaq

MIDEAST STOCKS-Most Gulf stocks end higher on stimulus, oil prices | Nasdaq:

Most markets in the Middle East reversed losses to close higher on Thursday as measures by the region's central banks calmed investor nerves, while higher oil prices also aided sentiment.

Oil prices bounced nearly 7% after a three-day selloff drove them to their lowest in almost two decades as demand plummeted due to the coronavirus and supplies surged in a fight for market share between Russia and Saudi Arabia.

Brent crude LCOc1 jumped $1.43, or 5.75%, to $26.33 a barrel by 1045 GMT.

In Abu Dhabi, the index .ADI leapt 8.4%, with First Abu Dhabi Bank (FAB) FAB.AD surging 14.9%, its biggest intraday gain since June 2016.

Abu Dhabi Commercial Bank ADCB.AD was up 14.4% after the lender said on Wednesday it will introduce a wide range of measures from April 2 to help over 1.2 million retail and thousands of small-and-medium business customers.

The UAE last week announced a $27 billion plan to counter the economic fallout from the outbreak.

Dubai's main share index .DFMGI added 2.9%, with blue-chip developer Emaar Properties EMAR.DU soaring 12.1%.

With Oil at Record Low, Canada Is First Price-War Casualty - Bloomberg

With Oil at Record Low, Canada Is First Price-War Casualty - Bloomberg:

In the oil price war between Saudi Arabia and Russia, the first big victim is likely to be Canada.

Hit by unfettered supply from the world’s top two crude exporters and reduced demand as a result of the coronavirus, the benchmark blend of crude produced from Canada’s oil sands plunged to a record low of $7.47 a barrel on Wednesday. The fallout: Virtually every barrel of oil now produced there will come at a loss at a time when the energy industry generates 10% of Canada’s gross domestic product and a fifth of its exports.

The losses could spur a stark turnaround for a country that boasted one of the strongest economies in the Group of Seven heading into the crisis, and for Alberta, a province that’s long balanced its budget on the back of its oil royalties. The region was already struggling with a pipeline shortage that curbed growth. The latest blow could spark a “domino effect” across governments, said Dinara Millington, vice president of research at the Canadian Energy Research Institute.

Russia Ruble (RUB USD) Crash Puts Central Bank in Bind - Bloomberg

Russia Ruble (RUB USD) Crash Puts Central Bank in Bind - Bloomberg:

The Bank of Russia stepped in to slow the ruble’s plunge, highlighting the challenge it faces as it tries to cushion a double blow from coronavirus and the plunge in oil prices.

While many central banks are slashing rates, the most the Bank of Russia is expected to be able to do at its rate meeting Friday is hold steady. Options markets are betting rate hikes are possible within the next three months as the ruble traded near its weakest level in four years.

The ruble rebounded on Thursday after the central bank said it will begin additional foreign currency sales if the price of Urals crude is below $25 a barrel, a level it has already reached. This could mean about an extra $800 million of sales a month, according to VTB Capital.

Oil Rollercoaster Has Crude Rebounding After Drop to 18-Year Low - Bloomberg

Oil Rollercoaster Has Crude Rebounding After Drop to 18-Year Low - Bloomberg:



Oil rebounded after plunging to the lowest level in 18 years as investors weigh efforts by policy makers across the globe to strengthen economies against the impact of the coronavirus pandemic.

Futures rose as much as 18% in New York, the most since December 2008, following a 24% rout in the previous session. Oil has been hammered by the dual shocks of collapsing demand and an impending supply flood, but prices are getting some relief along with other markets from stimulus measures.

The European Central Bank has unleashed an emergency bond-buying program, while the U.S. Senate cleared the second major bill responding to the outbreak. White House economic adviser Larry Kudlow said the government might take equity positions as part of corporate rescues.

#UAE best-positioned in GCC to absorb oil shock | ZAWYA MENA Edition

UAE best-positioned in GCC to absorb oil shock | ZAWYA MENA Edition:

The UAE is best-positioned among GCC economies to weather the decline in oil prices as it can finance its current account deficit longer than any of its regional peers, says a new report.

According to Capital Economics, the UAE can finance its current account deficit for 35 years if oil prices stay at $25 a barrel. Kuwait comes second followed by Qatar, Saudi Arabia, Bahrain and Oman. 


"In the four largest Gulf economies - Saudi Arabia, the UAE, Kuwait and Qatar - current account deficits could be financed through a drawdown of large foreign exchange savings for a considerable amount of time. Saudi Arabia could do so for around a decade and the other three countries for even longer," said Jason Tuvey, senior emerging markets economist at

Capital Economics.

The report said the UAE still runs a current account surplus at $30 a barrel.

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.

#SaudiArabia slashes $13bn from budget to deal with coronavirus, oil crisis - Arabianbusiness

Saudi Arabia slashes $13bn from budget to deal with coronavirus, oil crisis - Arabianbusiness:

Saudi Arabia has cut its state budget by $13 billion as the kingdom directs funds to tackle the spread of coronavirus and cushion the impact of low oil prices.

The amount, which was announced by Minister of Finance and acting Minister of Economy and Planning, Mohammad Al-Jadaan, represents almost five percent of the total expenditure previously approved in the 2020 budget.

According to a report on the state news Saudi Press Agency (SPA) website, further cuts could be made. Developments will be re-evaluated, items of expenditures will be reviewed, and appropriate decisions will be taken in a timely manner, Al-Jadaan said.

He added that providing resources to help combat the coronavirus pandemic was a priority for the government.

Arab world risks losing 1.7m jobs due to coronavirus, says UN - Arabianbusiness

Arab world risks losing 1.7m jobs due to coronavirus, says UN - Arabianbusiness:

The coronavirus pandemic threatens to wipe out more than 1.7 million jobs across the Arab world this year, the UN Economic Commission for Western Asia warned Wednesday.

Arab nations' gross domestic product (GDP) is expected to shrink by at least $42 billion in 2020, hit by plunging oil prices and virus-linked shutdowns, it said.

"More than 1.7 million jobs could be lost in 2020, with the unemployment rate increasing by 1.2 percentage points," the report said.

"Unlike in the aftermath of the global 2008 financial crisis, employment is expected to be affected across all sectors."

IATA says Middle East airlines need state aid due to liquidity crisis - Reuters

IATA says Middle East airlines need state aid due to liquidity crisis - Reuters:

Governments must urgently consider providing aid to airlines in the Middle East to help them cope with a liquidity crisis due the coronavirus outbreak, the International Air Transport Association (IATA) said on Thursday. 


IATA Vice-President for Africa and the Middle East Muhammad Albakri said Middle East airlines were facing rising revenue losses as people stopped traveling.

Oil halts three-day slump but virus outbreak, oversupply still weigh - Reuters

Oil halts three-day slump but virus outbreak, oversupply still weigh - Reuters:

Oil prices rose nearly 10% on Thursday after a three-day selloff drove them to their lowest levels in almost two decades as demand plummeted due to the coronavirus and supplies surged in a fight for market share between Russia and Saudi Arabia.

Benchmark Brent, which has lost half its value in less than two weeks, was offered some respite as investors across financial markets assessed the impact of massive central bank stimulus.

Brent crude LCOc1 jumped $2.29, or 9.2%, at $27.16 a barrel by 0831 GMT, after plunging to $24.52 on Wednesday, its lowest level since 2003.

U.S. crude CLc1 gained $3.20, or 15.7%, to $23.52 after dropping nearly 25% in the previous session to an 18-year low.

But analysts said gains were likely to be temporary, as tumbling demand due to the coronavirus outbreak was compounded by the collapse this month of a deal on supply curbs between OPEC and other producers.

Glut of crude swells across Atlantic basin on coronavirus, OPEC+ hikes - Reuters

Glut of crude swells across Atlantic basin on coronavirus, OPEC+ hikes - Reuters:

Crude oil traders from West Africa to the U.S. Gulf Coast are offering cargoes at deep discounts, desperately trying to attract buyers as global supplies swell and demand plunges.

Oil prices have plummeted to 18-year lows as the global spread of the coronavirus has throttled back air and road travel at the same time as major producers are hiking production after Russia refused to back deeper output cuts at a meeting of the Organization of the Petroleum Exporting Countries and its allies.

The sudden collapse in demand has resulted in a glut of unsold, high quality crude in Nigeria and sent prices at the U.S. Gulf Coast to a discount to benchmark futures, traders said, as Middle East producers flood the market with supplies.

Nigeria, which produces some of the easiest-to-refine crude that typically commands a premium, has 30 or more unsold April-loading cargoes, traders say, equal to 30 million barrels or 30% of daily world demand.

Mideast Stocks: Most Gulf stocks drop as stimulus measures fade; #Saudi up | ZAWYA MENA Edition

Mideast Stocks: Most Gulf stocks drop as stimulus measures fade; Saudi up | ZAWYA MENA Edition:

Most stock markets in the Gulf traded lower on Thursday as emergency central bank measures in the region failed to halt panic selling, though Saudi Arabia bucked the trend.

Gulf banks are losing out on a critical earnings quarter with the coronavirus outbreak, as deals and lending activity come to a near standstill ahead of a lull that starts with the fasting month of Ramadan in April and extends into summer.

So far, the region has reported over 1,200 cases of the virus with Bahrain recording the Gulf Cooperation Council's (GCC) first death from the disease.

Dubai's main share index dropped 1.6%, driven by a 4.9% fall in Emirates NBD Bank and a 1% decrease in Dubai Islamic Bank.

Elsewhere, the United Arab Emirates' (UAE) only listed airline Air Arabia slid 4.7%, as the stock traded ex-dividend, bringing year-to-date losses to over 37%.