Oil Resumes Plunge After IEA Warns That Demand Is in ‘Free Fall’ - Bloomberg

Oil Resumes Plunge After IEA Warns That Demand Is in ‘Free Fall’ - Bloomberg:

PRICES:

• U.S. marker West Texas Intermediate fell $1.89 to $22.60 a barrel in New York
• Global benchmark Brent crude declined 3.8% to $26.34 a barrel

Futures in New York tumbled 7.7% in New York, dropping for the first time this week, after IEA executive director Fatih Birol said demand could drop as much as 20 million barrels a day. The gloomy outlook exacerbated investor pessimism driven by a U.S. decision to rescind a crude-buying offer after failing to win funding from Congress.

Market gauges have been signaling weakness, with key swaps in the North Sea plummeting, and U.S. traders and consultant IHS Markit raising alarms about storage space running out. Goldman Sachs Group Inc. also warned of a massive contraction in demand that not even a supply freeze or cut from OPEC could rectify.

“We’ve never seen something like this before,” said Mike Hiley, president of OTC Futures. “Oil is going to continue to be stuck in this rut given the simultaneous supply and demand shocks. Stimulus doesn’t really help these issues. Just because people have more money in their pockets, doesn’t mean they’re getting in their cars.”

Gulf Sovereign Funds Seen Shedding $300 Billion in Market Mayhem - Bloomberg

Gulf Sovereign Funds Seen Shedding $300 Billion in Market Mayhem - Bloomberg:

The Gulf region’s rainy day funds are bracing for the deluge.

On top of the collapse of oil prices and meltdown in global markets, Gulf sovereign wealth funds are channeling some of their billions back to counter the recession triggered by the coronavirus pandemic. The decline in assets could exceed $300 billion this year, according to the Institute of International Finance, the industry’s global association.

The impact will echo all the way to Wall Street, where asset managers count on capital from the funds sponsored by Abu Dhabi, Kuwait, Qatar and Saudi Arabia. Now that these countries need the cash back home, hedge funds and private-equity firms risk losing a substantial piece of business.

“These interlinked shocks - an oil supply shock and covid19 demand shock - are weakening oil revenues, a source of new capital for sovereign funds, and significantly increasing spending needs,” said Rachel Ziemba, founder of advisory firm Ziemba Insights. “These funds were already barely receiving new capital in the last few years, now there will likely be drawdowns.”

Oil Shock Unmasks Fragile Mideast Trio With Bahrain Most Exposed - Bloomberg

Oil Shock Unmasks Fragile Mideast Trio With Bahrain Most Exposed - Bloomberg:

The collapse in oil prices is exposing a divide between Arab energy producers, with Bahrain the most vulnerable to the shockwaves rippling through the market amid the coronavirus outbreak, according to Bloomberg Economics.

Bahrain, Oman, Iraq, as well as Iran, are the weakest when measured by a set of five criteria ranging from international reserves and public debt to the price of oil needed to balance the current account. The scorecard found Qatar, the United Arab Emirates, Saudi Arabia and Kuwait are deemed robust.

“A snapshot of the metrics shows some countries might be comfortable now, but the direction has been heading toward broader weakness,” said Ziad Daoud, Bloomberg’s chief Middle East economist in Dubai.

Oil prices sink as crippled demand outweighs stimulus hopes - Reuters

Oil prices sink as crippled demand outweighs stimulus hopes - Reuters:

Oil prices fell on Thursday after three sessions of gains as restrictions on travel worldwide crimped fuel demand, with U.S. crude futures plunging about 4% after the United States scrapped plans to buy domestic oil for its emergency reserve.

Concerns about demand also overshadowed expectations that a $2 trillion U.S. stimulus package will bolster economic activity.

West Texas Intermediate (WTI) crude CLc1 futures dropped 91 cents, or 3.7%, to $23.58 a barrel by 11:11 a.m. EDT (1511 GMT). Brent crude LCOc1 futures fell 11 cents to $27.28 a barrel. Both contracts are down about 60% this year.

U.S. futures were notably weaker than international benchmark Brent crude. The U.S. Department of Energy scrapped a plan to purchase domestic crude oil for its Strategic Petroleum Reserve (SPR) after funding was not included in the broader stimulus package.

Emirates Global Aluminium profits fall amid lower finished metals prices - Arabianbusiness

Emirates Global Aluminium profits fall amid lower finished metals prices - Arabianbusiness:

Emirates Global Aluminium’s earnings fell to $693 million in 2019 from $1.2 billion the year before amid lower prices for finished metals and proportionally higher prices for raw materials in the first half of the year, the company has announced.

In a statement, EGA said that revenues fell 12 percent from $6.4 billion in 2018 to $5.6 billion in 2019, driven by lower world prices for aluminium but partially offset by a higher volume of value-added products.

The statement added that cash generated from operating activities stood at $1.1 billion for the year, compared to $1.5 billion in 2018.

Additionally, the statement said that EGA’s value-added product sales of 2.3 million tonnes amounted to 87.4 percent of total sales, helping it maintain its position as the world’s largest ‘premium aluminium’ producer by volume.

European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar closing indices

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.

Mideast Stocks: Most major Gulf stocks decline, but banks boost #Saudi | ZAWYA MENA Edition

Mideast Stocks: Most major Gulf stocks decline, but banks boost Saudi | ZAWYA MENA Edition:

Most major Gulf shares lost steam on Thursday, ending a two-day rally triggered by the giant $2 trillion stimulus package in the United States to mitigate the economic blow from the fast-spreading coronavirus pandemic.

In Abu Dhabi, the index sank 3.8%, with the country's largest lender First Abu Dhabi Bank (FAB) and telecoms firm Etisalat dropping 5% and 4.9%, respectively.

Dubai's main share index slipped 0.8%. The United Arab Emirates' (UAE) largest sharia-compliant lender Dubai Islamic Bank fell 3.1%, while Emaar Malls was down 3.6%.

The UAE will halt all public transport and restrict people's movements in the evening for a weekend nationwide disinfection campaign starting Thursday to curb the spread of the new coronavirus.

The Qatari index lost 0.7%, as Qatar National Bank declined 3.5% and Qatar Islamic Bank eased 1.4%.

The Gulf state temporarily closed all in-person money exchange and transfer services from March 26 to limit the spread of the coronavirus, its state news agency said on Wednesday.

Shell, other oil companies seek less #Saudi crude in April due to weaker demand -sources - Reuters

Shell, other oil companies seek less Saudi crude in April due to weaker demand -sources - Reuters:

Several European and Nordic oil refiners are taking less crude from Saudi Arabia in April, industry sources said, suggesting a lack of demand for the extra supplies the country has offered as it seeks to boost market share.

The world’s top oil exporter is planning to boost exports sharply after a three-year supply-cut deal between the Organization of the Petroleum Exporting Countries and other producers led by Russia collapsed earlier this month.

But with demand also collapsing due to government restrictions to contain the coronavirus outbreak, oil companies have been reducing refinery processing rates and are not in a rush to nominate extra Saudi barrels, the sources said.

“There are definitely refinery run cuts,” a trade source, speaking on condition of anonymity, who has discussed the issue with oil companies said. “So then it is hard to nominate a lot.”

European, Middle Eastern & African Stocks - Bloomberg #SaudiArabia #UAE #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.

Oil Tanks Are So Full That Traders May Stow It on Pipe Networks - Bloomberg

Oil Tanks Are So Full That Traders May Stow It on Pipe Networks - Bloomberg:

The glut of U.S. oil is growing so fast that at least one pipeline owner is concerned wily traders may try to stow away crude on its network until prices improve.

Plains All American Pipeline LP is requiring customers to prove they have a buyer or place to offload crude they’re shipping through the company’s pipes, according to people familiar with the matter. The idea is to prevent anyone from using Plains’s network to park oil in lieu of higher prices.

With the key storage hub in Cushing, Oklahoma, already more than half full, concern is rising among investors and oil producers that the surfeit of American crude may overwhelm storage capacity and force companies to shut down wells. Shale explorers are dialing back drilling but it won’t have a meaningful impact on overall crude supplies any time soon.

Similar anxieties are wracking the fuel markets as the Covid-19 outbreak saps demand and foreign producers swamp global markets with oil. Colonial Pipeline Co., operator of the busiest U.S. fuels conduit, last week warned clients that any gasoline or diesel on their system that had no end-user or storage reservation would be sold off to the highest bidder.

Even a #Saudi-Russia Truce Would Be Too Late to Save OPEC+ Legacy - Bloomberg

Even a Saudi-Russia Truce Would Be Too Late to Save OPEC+ Legacy - Bloomberg:

Even if Riyadh and Moscow ended their fight for oil-market share now, everything they achieved together over three years of OPEC+ would still go up in smoke.

The U.S. has used the build-up to Thursday’s emergency teleconference between leaders of Group of 20 nations to urge a rapprochement between Saudi Arabia, which is chairing the event, and Russia.

Even if President Donald Trump could resolve the conflict between the two exporters -- and Moscow is giving reasons to think he can’t -- the kingdom has already committed to flood the market with crude next month. While a truce could help temper any further price slump, it would be too late to rescue the legacy of the partners-turned-rivals, who until this month had cooperated to keep world oil markets in equilibrium.

Back in 2016, when the Saudis and Russia spearheaded a global alliance of producers known as OPEC+, they were motivated by the desire to clear an oil surplus of 300 million barrels in the industrialized world, which was keeping prices low.

U.S. Calls on #SaudiArabia to Halt Plan to Unleash Record Oil Supply - Bloomberg

U.S. Calls on Saudi Arabia to Halt Plan to Unleash Record Oil Supply - Bloomberg:



The Trump administration is pressing Saudi Arabia to dial back its plan to flood the oil market as the price war with Russia sent crude prices crashing to the lowest levels in decades. Bloomberg’s Stephen Stapczynski reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)

#Qatar Air CEO Warns There May be ‘Nothing Left to Consolidate’ - Bloomberg

Qatar Air CEO Warns There May be ‘Nothing Left to Consolidate’ - Bloomberg:



Qatar Airways Chief Executive Officer Akbar Al Baker said many airlines will go bust as the coronavirus outbreak ravages demand for travel, limiting the scope for takeovers.

While the Gulf carrier is open to acting on any investment opportunities that present themselves, the pandemic is likely to lead to the immediate collapse of some operators, Al Baker said Thursday on Bloomberg Television.

“There will be nothing left for consolidation because a lot of airlines will go belly up,” he said. “In this very difficult period, it will only be the survival of the fittest.”

Tadawul cuts trading hours to curb spread of coronavirus | ZAWYA MENA Edition

Tadawul cuts trading hours to curb spread of coronavirus | ZAWYA MENA Edition:

The Saudi Stock Exchange (Tadawul) has reduced the trading hours temporarily to slow the spread of coronavirus.

Starting today, Thursday, trading hours for all listed securities will be from 10 am to 1 pm, the exchange said in a statement.

Tadawul’s trading hours were from 10 am to 3 pm prior to the announcement.

#AbuDhabi banks announce 17 financial initiatives for the community and businesses | ZAWYA MENA Edition

Abu Dhabi banks announce 17 financial initiatives for the community and businesses | ZAWYA MENA Edition:

The Abu Dhabi Government has unveiled a comprehensive package of financial incentives, in line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council.

A collective effort by Abu Dhabi banks - First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB) and Abu Dhabi Commercial Bank (ADCB) – in coordination with Abu Dhabi Department of Finance and the Abu Dhabi Department of Economic Development, the package is aimed at supporting the community and businesses in Abu Dhabi during the current period of economic uncertainty.

Designed to provide for the immediate needs of individuals and small to medium-sized enterprises (SMEs) in Abu Dhabi, these 17 financial initiatives seek to reduce finance-related costs, facilitate the ease of access to financing, and maintain the resilience of the Abu Dhabi economy. The measures announced today include 10 banking-related initiatives specifically for individuals, and seven financial initiatives for SMEs.

#Qatar to shut money exchange and transfer services from March 26 -state news agency - Reuters

Qatar to shut money exchange and transfer services from March 26 -state news agency - Reuters:

Qatar announced it will temporarily close all in-person money exchange and transfer services from March 26 to limit the spread of the coronavirus, its state news agency said on Wednesday.

Coronavirus delivers tough blow to #Lebanon’s dying economy

Coronavirus delivers tough blow to Lebanon’s dying economy:

Through 15 years of civil war and various bouts of violence since, Lebanon’s Barbar eatery never closed its doors, serving up sandwiches to customers even if it meant doing so from behind sandbags.

The coronavirus pandemic, however, has managed to do what various wars could not: Close bars, restaurants and entertainment spots across the tiny Mediterranean country. It’s an economic gut punch at a time when Lebanon is already mired in the worst financial crisis in its history.

While residents of many other countries are counting on a government bailout, that’s not an option in the country teetering on the edge of bankruptcy.

“We have never gone through something like this — ever,” said Barbar owner Ali Ghaziri, standing outside his shop on Beirut’s normally busy Hamra street, now completely deserted.

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.

Ten signs the oil industry is bent out of shape - Reuters

Ten signs the oil industry is bent out of shape - Reuters:

The oil industry has been hit by a simultaneous demand and supply shock in March as the coronavirus pandemic cuts fuel consumption and top producer Saudi Arabia raises output to full capacity to fight a price war with rivals.

International crude oil prices have lost about 45% this month and fallen below the cost of much of the world’s production, causing energy companies worldwide to slash spending by tens of billions of dollars.

The collapse in demand and of energy diplomacy between Saudi Arabia, Russia and others have triggered unprecedented responses from governments and investors. Here are ten signs of an industry in distress.

Oil falls as sinking demand outweighs stimulus hopes - Reuters

Oil falls as sinking demand outweighs stimulus hopes - Reuters:

Oil prices fell on Thursday, ending three sessions of gains, as movement restrictions worldwide to contain the coronavirus destroyed demand and overshadowed expectations that a U.S. $2 trillion emergency stimulus will bolster economic activity.

Brent crude futures fell $1.04, or 3.75%, to $26.35 a barrel by 0834 GMT. West Texas Intermediate (WTI) crude futures fell 94 cents, or 3.8%, to $23.55 a barrel. Both contracts are down about 60% this year.

“Oil markets received a lift from the U.S. stimulus chatter, but for the most part activity remains rudderless, awash in a sea of oil,” Stephen Innes, market strategist at AxiTrader, said.

The U.S. Senate on Wednesday overwhelmingly backed a $2 trillion bill aimed at helping unemployed workers and industries hurt by the coronavirus epidemic.

MIDEAST STOCKS- #Saudi, #Qatar extend gains on U.S. stimulus, others retreat | Nasdaq

MIDEAST STOCKS-Saudi, Qatar extend gains on U.S. stimulus, others retreat | Nasdaq:

Major stock markets in the Gulf were mixed on Thursday, with Saudi Arabia and Qatar extending gains on hopes that a $2 trillion U.S. emergency stimulus package will shore up economic activity across the globe.

On Wednesday, the U.S. Senate unanimously backed a $2 trillion bill aimed at helping unemployed workers and industries hurt by the pandemic.

Saudi Arabia's benchmark index .TASI rose 1.5%, with Al Rajhi Bank 1120.SE adding 1.9% and Saudi Basic Industries 2010.SE gaining 2.4%.

Al Moammar Information Systems 7200.SE jumped 6.6%, after receiving a purchase order worth 134.4 million riyals ($35.81 million).

The kingdom reported its second coronavirus death on Wednesday and tightened a nationwide curfew, barring travel in and out of Riyadh, the capital, and the holy cities of Mecca and Medina, as well as movement between all provinces.