Oil little changed as falling demand offsets hopes of U.S. aid package - Reuters:
Oil prices rose modestly on Tuesday, but settled off the day’s highs as the coronavirus pandemic’s heavy toll on demand offset hopes for a forthcoming $2 trillion U.S. economic relief package.
India, the world’s third largest oil consumer, ordered its 1.3 billion residents to stay home for three weeks as of Tuesday, the latest big fuel user to announce restrictions on social movement that have destroyed demand for gasoline and jet fuel worldwide.
The oil market has been hit by twin shocks. The unexpected price war between Saudi Arabia and Russia has unleashed a flood of supply while the pandemic is on track to cut fuel demand by at least 10% worldwide.
Brent LCOc1 futures rose 12 cents, or 0.4%, to settle at $27.15 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 gained 65 cents, or 2.8%, to settle at $24.01.
Tuesday 24 March 2020
U.S.- #Saudi Oil Cartel Not a Good Idea, APA CEO Mike Sommers Says: Video - Bloomberg
U.S.-Saudi Oil Cartel Not a Good Idea, APA CEO Mike Sommers Says: Video - Bloomberg:
Mike Sommers, American Petroleum Institute chief executive officer, says he'd be against the U.S. and Saudi Arabia forming a new oil cartel. He speaks with Bloomberg's Vonnie Quinn and Amanda Lang on "Bloomberg Markets." (Source: Bloomberg)
Mike Sommers, American Petroleum Institute chief executive officer, says he'd be against the U.S. and Saudi Arabia forming a new oil cartel. He speaks with Bloomberg's Vonnie Quinn and Amanda Lang on "Bloomberg Markets." (Source: Bloomberg)
As OPEC Pursues Oil Supply War, Here’s Who Has Most Firepower - Bloomberg
As OPEC Pursues Oil Supply War, Here’s Who Has Most Firepower - Bloomberg:
With the shackles of OPEC’s output limits thrown off and a price war underway, the group’s biggest oil producers are preparing to churn out more barrels to protect market share.
But making up in volume for what they’re losing in price is looking increasingly difficult as the coronavirus pandemic eviscerates demand. What’s more, some producers, like Iraq and Libya, are facing political and security stumbling blocks to increasing production.
With the shackles of OPEC’s output limits thrown off and a price war underway, the group’s biggest oil producers are preparing to churn out more barrels to protect market share.
But making up in volume for what they’re losing in price is looking increasingly difficult as the coronavirus pandemic eviscerates demand. What’s more, some producers, like Iraq and Libya, are facing political and security stumbling blocks to increasing production.
NMC Health debt now estimated at $6.6bn after latest review - Arabianbusiness
NMC Health debt now estimated at $6.6bn after latest review - Arabianbusiness:
Embattled healthcare operator NMC Health’s debt position is currently estimated at $6.6 billion, significantly higher than the approximately $5 billion reported earlier in March, the company said in a statement posted to the London Stock Exchange.
According to the statement, the debt includes a $360 million convertible bond and $400 million sukuk.
On March 10, NMC estimated that its debts stood at about $5 billion. Since then, the company has verified another $0.3 billion currently outstanding that related to facilities the company’s board was aware of in June 2019, as well as $0.8 billion of newly identified facilities and an additional $0.4 billion of facilities entered into post June 20190 and unidentified earlier in March.
“NMC is continuing to work with its advisers to understand the exact nature and quantum of the undisclosed facilities, including the circumstances in which they were obtained,” the statement said.
Embattled healthcare operator NMC Health’s debt position is currently estimated at $6.6 billion, significantly higher than the approximately $5 billion reported earlier in March, the company said in a statement posted to the London Stock Exchange.
According to the statement, the debt includes a $360 million convertible bond and $400 million sukuk.
On March 10, NMC estimated that its debts stood at about $5 billion. Since then, the company has verified another $0.3 billion currently outstanding that related to facilities the company’s board was aware of in June 2019, as well as $0.8 billion of newly identified facilities and an additional $0.4 billion of facilities entered into post June 20190 and unidentified earlier in March.
“NMC is continuing to work with its advisers to understand the exact nature and quantum of the undisclosed facilities, including the circumstances in which they were obtained,” the statement said.
#Sharjah's SNOC puts LNG storage terminal project on hold | ZAWYA MENA Edition
Sharjah's SNOC puts LNG storage terminal project on hold | ZAWYA MENA Edition:
Sharjah National Oil Corporation (SNOC) has put on hold its floating Liquefied Natural Gas (LNG) storage terminal at Hamriyah Port in the emirate of Sharjah, the company CEO said on Tuesday.
Hatem Al Mosa confirmed during an online media roundtable that the project had been put on hold while SNOC completes the evaluation of the size of the natural gas and condensate reserves at the Mahani onshore field in Sharjah.
In January this year, SNOC and its partner Eni had announced the successful discovery of Mahani field, the first onshore Sharjah discovery in 37 years.
“We have decided to put the project on hold until we understand the size of the Mahani [discovery]… and future gas discoveries,” he said, adding that buying LNG under 10-year contracts is not right in the current scenario.
Sharjah National Oil Corporation (SNOC) has put on hold its floating Liquefied Natural Gas (LNG) storage terminal at Hamriyah Port in the emirate of Sharjah, the company CEO said on Tuesday.
Hatem Al Mosa confirmed during an online media roundtable that the project had been put on hold while SNOC completes the evaluation of the size of the natural gas and condensate reserves at the Mahani onshore field in Sharjah.
In January this year, SNOC and its partner Eni had announced the successful discovery of Mahani field, the first onshore Sharjah discovery in 37 years.
“We have decided to put the project on hold until we understand the size of the Mahani [discovery]… and future gas discoveries,” he said, adding that buying LNG under 10-year contracts is not right in the current scenario.
Mideast Stocks: Most major Gulf indexes rebound in line with oil, global stocks | ZAWYA MENA Edition
Mideast Stocks: Most major Gulf indexes rebound in line with oil, global stocks | ZAWYA MENA Edition:
Most major bourses in the Gulf rebounded on Tuesday, mirroring gains in oil and global equities, as investors pinned hopes on unprecedented stimulus steps by the U.S Federal Reserve to ease strains in financial markets amid the coronavirus pandemic.
In its latest mould-breaking step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and municipal bonds and backstop a series of other measures.
Brent crude was up by 90 cents a barrel, or 3.2%, to $27.93 by 1225 GMT.
The Abu Dhabi index jumped 6.1%, boosted by a 9.5% surge in top lender First Abu Dhabi Bank FAB.AD and a 6.8% rise in Emirates Telecommunications.
On Sunday, the United Arab Emirates approved an additional 16 billion dirhams ($4.36 billion) for a total stimulus package of 126 billion dirhams to counter the coronavirus outbreak, the UAE vice president tweeted after a cabinet meeting.
Most major bourses in the Gulf rebounded on Tuesday, mirroring gains in oil and global equities, as investors pinned hopes on unprecedented stimulus steps by the U.S Federal Reserve to ease strains in financial markets amid the coronavirus pandemic.
In its latest mould-breaking step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and municipal bonds and backstop a series of other measures.
Brent crude was up by 90 cents a barrel, or 3.2%, to $27.93 by 1225 GMT.
The Abu Dhabi index jumped 6.1%, boosted by a 9.5% surge in top lender First Abu Dhabi Bank FAB.AD and a 6.8% rise in Emirates Telecommunications.
On Sunday, the United Arab Emirates approved an additional 16 billion dirhams ($4.36 billion) for a total stimulus package of 126 billion dirhams to counter the coronavirus outbreak, the UAE vice president tweeted after a cabinet meeting.
#UAE closing airports on Tuesday, a day earlier than first announced | ZAWYA MENA Edition
UAE closing airports on Tuesday, a day earlier than first announced | ZAWYA MENA Edition:
United Arab Emirates will suspend all passengers flights in and out of the Gulf Arab state on Tuesday night, Dubai Airports said on its website, indicating it would take place 24 hours earlier than initially announced.
"The decision has been made by the UAE authorities to suspend all inbound and outbound passenger flights, and the transit of airline passengers in the UAE,” the state operator said, adding the measure would be implemented from 11:59 p.m. (1959 GMT).
United Arab Emirates will suspend all passengers flights in and out of the Gulf Arab state on Tuesday night, Dubai Airports said on its website, indicating it would take place 24 hours earlier than initially announced.
"The decision has been made by the UAE authorities to suspend all inbound and outbound passenger flights, and the transit of airline passengers in the UAE,” the state operator said, adding the measure would be implemented from 11:59 p.m. (1959 GMT).
The Real Reason Oil Prices Crashed | OilPrice.com
The Real Reason Oil Prices Crashed | OilPrice.com:
Here’s a quick question: what happens when a lot of people are producing more and more of a commodity, but fewer people want to buy it? It’s economics for preschoolers. You don’t even need multiple choice answers to guess right. But here’s another, increased difficulty, question: whose fault is the current oil price crash?
If this were a multiple-choice question, the answers would look something like this: a. Saudi Arabia; b. Russia; c. The United States; d. The coronavirus outbreak; and e. All of the above. The correct answer, of course, is e., if we get past our personal preferences for a culprit. But how much did each of these contribute to the crisis?
Now that’s a harder question to answer.
Saudi Arabia used to be the world’s largest oil producer and, more importantly, the world’s cheapest oil producer. This has given the Kingdom a lot of leverage when it comes to controlling oil prices. Prices went where Saudi Arabia wanted, either by shutting off the taps or turning them up to gushing.
Here’s a quick question: what happens when a lot of people are producing more and more of a commodity, but fewer people want to buy it? It’s economics for preschoolers. You don’t even need multiple choice answers to guess right. But here’s another, increased difficulty, question: whose fault is the current oil price crash?
If this were a multiple-choice question, the answers would look something like this: a. Saudi Arabia; b. Russia; c. The United States; d. The coronavirus outbreak; and e. All of the above. The correct answer, of course, is e., if we get past our personal preferences for a culprit. But how much did each of these contribute to the crisis?
Now that’s a harder question to answer.
Saudi Arabia used to be the world’s largest oil producer and, more importantly, the world’s cheapest oil producer. This has given the Kingdom a lot of leverage when it comes to controlling oil prices. Prices went where Saudi Arabia wanted, either by shutting off the taps or turning them up to gushing.
IMF warns of 'wide reverberations' as coronavirus risks job losses, bankruptcies in Middle East | ZAWYA MENA Edition
IMF warns of 'wide reverberations' as coronavirus risks job losses, bankruptcies in Middle East | ZAWYA MENA Edition:
As the coronavirus infections continue to spread at alarming levels, the International Monetary Fund (IMF) has called on governments in the Middle East for urgent economic policy actions and warned that the health crisis, coupled with the oil price plunge, could significantly drag growth and lead to job losses and bankruptcies.
The key job-rich sectors in the region, including the UAE - home to a huge concentration of expats - have already been impacted by the series of measures to contain the spread of the pandemic, and there will be “wide reverberations” if people lose jobs, and salaries and remittances fall, said Jihad Azour, IMF director of the Middle East and Central Asia on Monday.
“Measures to contain the pandemic’s spread are hurting key job-rich sectors: tourist cancellations in Egypt have reached 80 percent, while hospitality and retail have been affected in the United Arab Emirates and elsewhere,” said Azour.
“Given the large numbers of people employed in the service sector, there will be wide reverberations if unemployment rises and wages and remittances fall,” he added.
As the coronavirus infections continue to spread at alarming levels, the International Monetary Fund (IMF) has called on governments in the Middle East for urgent economic policy actions and warned that the health crisis, coupled with the oil price plunge, could significantly drag growth and lead to job losses and bankruptcies.
The key job-rich sectors in the region, including the UAE - home to a huge concentration of expats - have already been impacted by the series of measures to contain the spread of the pandemic, and there will be “wide reverberations” if people lose jobs, and salaries and remittances fall, said Jihad Azour, IMF director of the Middle East and Central Asia on Monday.
“Measures to contain the pandemic’s spread are hurting key job-rich sectors: tourist cancellations in Egypt have reached 80 percent, while hospitality and retail have been affected in the United Arab Emirates and elsewhere,” said Azour.
“Given the large numbers of people employed in the service sector, there will be wide reverberations if unemployment rises and wages and remittances fall,” he added.
Gulf bonds post gains on global market rally - Reuters
Gulf bonds post gains on global market rally - Reuters:
Gulf government dollar bonds posted gains on Tuesday as global markets rallied as investors bet the U.S. Federal Reserve’s promise of unlimited dollar funding would ease strains on financial markets even if it could not stop the economic hit of the coronavirus epidemic.
At 0940 GMT, Saudi 30-year dollar bonds due in 2049 were up 3 cents, Refinitiv data showed. Similar bonds by its oil giant Saudi Aramco were up 2.3 cents.
Bonds by Abu Dhabi, seen as one of the region’s strongest credits, maturing in 2047 were up 1.6 cents, while Qatar 30-year bonds due in 2049 were up 2.8 cents. Thirty-year bonds by Oman, one of the region’s weakest credits, due in 2048 were up 0.5 cents.
Gulf government dollar bonds posted gains on Tuesday as global markets rallied as investors bet the U.S. Federal Reserve’s promise of unlimited dollar funding would ease strains on financial markets even if it could not stop the economic hit of the coronavirus epidemic.
At 0940 GMT, Saudi 30-year dollar bonds due in 2049 were up 3 cents, Refinitiv data showed. Similar bonds by its oil giant Saudi Aramco were up 2.3 cents.
Bonds by Abu Dhabi, seen as one of the region’s strongest credits, maturing in 2047 were up 1.6 cents, while Qatar 30-year bonds due in 2049 were up 2.8 cents. Thirty-year bonds by Oman, one of the region’s weakest credits, due in 2048 were up 0.5 cents.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar
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.
Oil jumps 5% to over $28 on Fed steps to support economy - Reuters
Oil jumps 5% to over $28 on Fed steps to support economy - Reuters:
Oil jumped 5% on Tuesday to above $28 a barrel, supported by steps by the U.S. Federal Reserve to bolster the economy and hopes the United States will soon reach a deal on a $2 trillion coronavirus aid package.
The Fed on Monday rolled out an array of programs including backing for the first time corporate bond purchases. U.S. Treasury Secretary Steven Mnuchin voiced confidence that a deal on the aid package would be reached soon.
Brent crude LCOc1 was up by $1.44 a barrel, or 5.3%, to $28.47 by 0926 GMT. The global benchmark fell to $24.52 on Wednesday, its lowest level since 2003.
U.S. West Texas Intermediate CLc1 gained $1.26, or 5.4%, to $24.62.
“Oil is clawing its way higher, mainly on the back of the weaker dollar that stemmed from the Fed’s unprecedented measures,” said Edward Moya, senior market analyst at broker OANDA.
Oil jumped 5% on Tuesday to above $28 a barrel, supported by steps by the U.S. Federal Reserve to bolster the economy and hopes the United States will soon reach a deal on a $2 trillion coronavirus aid package.
The Fed on Monday rolled out an array of programs including backing for the first time corporate bond purchases. U.S. Treasury Secretary Steven Mnuchin voiced confidence that a deal on the aid package would be reached soon.
Brent crude LCOc1 was up by $1.44 a barrel, or 5.3%, to $28.47 by 0926 GMT. The global benchmark fell to $24.52 on Wednesday, its lowest level since 2003.
U.S. West Texas Intermediate CLc1 gained $1.26, or 5.4%, to $24.62.
“Oil is clawing its way higher, mainly on the back of the weaker dollar that stemmed from the Fed’s unprecedented measures,” said Edward Moya, senior market analyst at broker OANDA.
MIDEAST STOCKS-Gulf markets mostly rebound, tracking oil, Asian shares | Nasdaq
MIDEAST STOCKS-Gulf markets mostly rebound, tracking oil, Asian shares | Nasdaq:
Stock markets in the Middle East rebounded on Tuesday, in line with oil prices and Asian shares as investors bet the U.S Federal Reserve's promise of unlimited dollar funding would ease intense strains in financial markets.
In its latest mould-breaking step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and municipal bonds.
Brent crude oil LCOc1 rose by 62 cents, or 2.3%, to $27.65 a barrel by 0346 GMT.
Saudi Arabia's benchmark index .TASI gained 2.7%, driven by a 3.3% rise in oil giant Saudi Aramco 2222.SE and a 2.1% increase in Al Rajhi Bank 1120.SE.
The kingdom's central bank on Monday announced it will provide financing for micro, small and medium enterprises amounting to 13.3 billion riyals ($3.54 billion), Reuters reported citing state TV El Akhbariya.
In Dubai, the index .DFMGI added 0.9%, with blue-chip developer Emaar Properties EMAR.DU climbing 6.4% and Emirates NBD Bank ENBD.DU gaining 2.1%.
Stock markets in the Middle East rebounded on Tuesday, in line with oil prices and Asian shares as investors bet the U.S Federal Reserve's promise of unlimited dollar funding would ease intense strains in financial markets.
In its latest mould-breaking step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and municipal bonds.
Brent crude oil LCOc1 rose by 62 cents, or 2.3%, to $27.65 a barrel by 0346 GMT.
Saudi Arabia's benchmark index .TASI gained 2.7%, driven by a 3.3% rise in oil giant Saudi Aramco 2222.SE and a 2.1% increase in Al Rajhi Bank 1120.SE.
The kingdom's central bank on Monday announced it will provide financing for micro, small and medium enterprises amounting to 13.3 billion riyals ($3.54 billion), Reuters reported citing state TV El Akhbariya.
In Dubai, the index .DFMGI added 0.9%, with blue-chip developer Emaar Properties EMAR.DU climbing 6.4% and Emirates NBD Bank ENBD.DU gaining 2.1%.
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