Aramco Weighs Pipeline Stake Sale to Raise Over $10 Billion - Bloomberg:
Saudi Aramco, the world’s largest oil producer, is weighing the sale of a stake in its pipeline unit to raise money amid a slump in crude prices, according to people familiar with the matter.
Aramco may need to raise cash this year as it confronts a historic rout in oil prices and a burgeoning list of spending obligations. The company has reaffirmed its commitment to pay out $75 billion in dividends this year and also needs to make the first installment for its $70 billion acquisition of a stake in chemicals producer Saudi Basic Industries Corp.
Aramco, the world’s most valuable publicly traded company after selling shares on the Riyadh exchange last year, could raise more than $10 billion from the sale, the people said, asking not to be identified as the information is private. Aramco has already held some preliminary discussions with potential advisers on the deal, but talks are still at an early stage and Aramco may decide against a sale, the people said.
Saudi Aramco declined to comment.
Monday, 30 March 2020
Brent tumbles to lowest since 2002, U.S. crude dips below $20/bbl - Reuters
Brent tumbles to lowest since 2002, U.S. crude dips below $20/bbl - Reuters:
Global oil benchmark Brent crude plunged to its cheapest in almost 18 years on Monday and U.S. crude briefly tumbled below $20 per barrel on growing fears the global coronavirus shutdown could last months and demand for fuel will decline further.
With Saudi Arabia and Russia set to flood the market with oil next month, producers and shippers have been scrambling to lock oil up in storage as demand falls.
Meanwhile, the coronavirus pandemic is expected to cause at least a 20% drop in fuel demand worldwide as governments take steps to restrict the spread of the virus.
Brent futures fell $2.17, or 8.7%, to settle at $22.76 a barrel, their lowest close since November 2002, while U.S. West Texas Intermediate (WTI) crude fell $1.42, or 6.6%, to $20.09, the lowest close since February 2002.
Global oil benchmark Brent crude plunged to its cheapest in almost 18 years on Monday and U.S. crude briefly tumbled below $20 per barrel on growing fears the global coronavirus shutdown could last months and demand for fuel will decline further.
With Saudi Arabia and Russia set to flood the market with oil next month, producers and shippers have been scrambling to lock oil up in storage as demand falls.
Meanwhile, the coronavirus pandemic is expected to cause at least a 20% drop in fuel demand worldwide as governments take steps to restrict the spread of the virus.
Brent futures fell $2.17, or 8.7%, to settle at $22.76 a barrel, their lowest close since November 2002, while U.S. West Texas Intermediate (WTI) crude fell $1.42, or 6.6%, to $20.09, the lowest close since February 2002.
U.S., Russia agree to oil market talks as Trump calls price war 'crazy' - Reuters
U.S., Russia agree to oil market talks as Trump calls price war 'crazy' - Reuters:
U.S. President Donald Trump and Russian President Vladimir Putin agreed during a phone call on Monday to have their top energy officials meet to discuss slumping global oil markets, the Kremlin said, as Trump called Russia’s price war with Saudi Arabia “crazy.”
The agreement marks a new twist in global oil diplomacy since a failed deal by OPEC producers and Russia to cut production mingled with the fallout from the coronavirus pandemic to send oil prices into a historic tailspin. The falling prices have threatened higher-cost oil drillers in the United States and around the globe with bankruptcy.
“Opinions on the current state of global oil markets were exchanged. It was agreed there would be Russo-American consultations about this through the ministers of energy,” the Kremlin said in a readout of the call.
The Kremlin did not say what exactly the ministers would discuss, but Moscow has previously signaled it would like to see more countries joining efforts to balance global oil markets. The White House did not immediately respond to a request for comment.
U.S. President Donald Trump and Russian President Vladimir Putin agreed during a phone call on Monday to have their top energy officials meet to discuss slumping global oil markets, the Kremlin said, as Trump called Russia’s price war with Saudi Arabia “crazy.”
The agreement marks a new twist in global oil diplomacy since a failed deal by OPEC producers and Russia to cut production mingled with the fallout from the coronavirus pandemic to send oil prices into a historic tailspin. The falling prices have threatened higher-cost oil drillers in the United States and around the globe with bankruptcy.
“Opinions on the current state of global oil markets were exchanged. It was agreed there would be Russo-American consultations about this through the ministers of energy,” the Kremlin said in a readout of the call.
The Kremlin did not say what exactly the ministers would discuss, but Moscow has previously signaled it would like to see more countries joining efforts to balance global oil markets. The White House did not immediately respond to a request for comment.
Gulf countries set to face headwind from coronavirus, low oil prices, capital flight -S&P - Reuters
Gulf countries set to face headwind from coronavirus, low oil prices, capital flight -S&P - Reuters:
Gulf oil exporting countries are expected to face headwinds this year from lower oil prices, economic pressures due to the coronavirus outbreak, and capital flight from emerging markets, S&P Global Ratings said.
Saudi Arabia is likely to see a “sharp rise” in its fiscal deficit this year due to oil supply increases and a collapse in oil demand, S&P said in a webcast on Monday.
But financially weaker Gulf countries like Bahrain and Oman would be likely to receive support from their wealthier Gulf neighbours if their currency pegs to the U.S. dollar were to be under threat, the credit rating agency said.
Gulf oil exporting countries are expected to face headwinds this year from lower oil prices, economic pressures due to the coronavirus outbreak, and capital flight from emerging markets, S&P Global Ratings said.
Saudi Arabia is likely to see a “sharp rise” in its fiscal deficit this year due to oil supply increases and a collapse in oil demand, S&P said in a webcast on Monday.
But financially weaker Gulf countries like Bahrain and Oman would be likely to receive support from their wealthier Gulf neighbours if their currency pegs to the U.S. dollar were to be under threat, the credit rating agency said.
RPT-COLUMN-Coronavirus demand hit renders OPEC+, Trump manoeuvres irrelevant: Russell - Reuters
RPT-COLUMN-Coronavirus demand hit renders OPEC+, Trump manoeuvres irrelevant: Russell - Reuters:
Imagine for a moment that the Organization of the Petroleum Exporting Countries (OPEC) and Russia had agreed at the start of this month to extend and deepen their crude oil output cuts. It wouldn’t have made the blindest bit of difference.
While it was only three and half weeks ago, though it feels as long as a lifetime, the collapse of the deal between OPEC and allies, including Russia, to limit output is no longer relevant in a world devastated by coronavirus.
If OPEC and its allies, known as OPEC+, had agreed to extend the 2.1 million barrels per day (bpd) and add a further 1.5 million bpd, there is little doubt crude prices wouldn’t have crashed as they did in the wake of the breakdown of the talks, and the subsequent move by top exporter Saudi Arabia to flood the market.
But the rapid spread of the coronavirus beyond its origin in China to most of the populated world, including the major crude demand centres of Europe and North America, means that the current price slump was inevitable, as the scale of the loss of global demand would have simply overwhelmed the OPEC+ output deal, assuming it had been extended and increased.
Imagine for a moment that the Organization of the Petroleum Exporting Countries (OPEC) and Russia had agreed at the start of this month to extend and deepen their crude oil output cuts. It wouldn’t have made the blindest bit of difference.
While it was only three and half weeks ago, though it feels as long as a lifetime, the collapse of the deal between OPEC and allies, including Russia, to limit output is no longer relevant in a world devastated by coronavirus.
If OPEC and its allies, known as OPEC+, had agreed to extend the 2.1 million barrels per day (bpd) and add a further 1.5 million bpd, there is little doubt crude prices wouldn’t have crashed as they did in the wake of the breakdown of the talks, and the subsequent move by top exporter Saudi Arabia to flood the market.
But the rapid spread of the coronavirus beyond its origin in China to most of the populated world, including the major crude demand centres of Europe and North America, means that the current price slump was inevitable, as the scale of the loss of global demand would have simply overwhelmed the OPEC+ output deal, assuming it had been extended and increased.
Oil Plummets to 17-Year Low as Broken Market Drowns in Crude - Bloomberg
Oil Plummets to 17-Year Low as Broken Market Drowns in Crude - Bloomberg:
Oil tumbled to a 17-year low as coronavirus lockdowns cascaded through the world’s largest economies, leaving the market overwhelmed by cratering demand and a ballooning surplus.
Oil tumbled to a 17-year low as coronavirus lockdowns cascaded through the world’s largest economies, leaving the market overwhelmed by cratering demand and a ballooning surplus.
Finablr's auditors EY resign over list of 'concerns' - Arabianbusiness
Finablr's auditors EY resign over list of 'concerns' - Arabianbusiness:
Ernst & Young (EY) has resigned as auditor of Finablr, the embattled owner of foreign-exchange businesses including Travelex Holdings.
In a statement to the London Stock Exchange (LSE) on Monday, EY announced its resignation, citing concerns over corporate governance and the make-up of the board.
EY’s letter of resignation said there were “concerns arising out of recent events at the company and NMC Health plc…the composition of the board of the company, the adequacy of corporate governance concerns and the recent issues that have caused the company to commission an independent review of the company's financial arrangements, including of related party transactions and on and off- balance-sheet debt".
Prior to its resignation, EY had called for a number of changes to be made at board level.
Ernst & Young (EY) has resigned as auditor of Finablr, the embattled owner of foreign-exchange businesses including Travelex Holdings.
In a statement to the London Stock Exchange (LSE) on Monday, EY announced its resignation, citing concerns over corporate governance and the make-up of the board.
EY’s letter of resignation said there were “concerns arising out of recent events at the company and NMC Health plc…the composition of the board of the company, the adequacy of corporate governance concerns and the recent issues that have caused the company to commission an independent review of the company's financial arrangements, including of related party transactions and on and off- balance-sheet debt".
Prior to its resignation, EY had called for a number of changes to be made at board level.
Hedge funds trim short oil positions as prices hit crisis point: Kemp - Reuters
Hedge funds trim short oil positions as prices hit crisis point: Kemp - Reuters:
Hedge funds began trimming short positions in petroleum last week as crude oil prices fell to crisis levels for some producers and refiners and traders started to anticipate shutdowns at oilfields and refineries.
Extreme high and low prices are usually fleeting because they are dynamically unstable and contain the seeds of their own destruction, forcing large and accelerated adjustments from consumers and producers.
U.S. crude and distillate prices have been hit harder than Brent or gasoline, so fund managers seem to be anticipating they have the most potential for a short-term reversal.
Hedge funds and other money managers were net sellers of just 8 million barrels in the six major petroleum futures and options contracts in the week ending March 24.
Hedge funds began trimming short positions in petroleum last week as crude oil prices fell to crisis levels for some producers and refiners and traders started to anticipate shutdowns at oilfields and refineries.
Extreme high and low prices are usually fleeting because they are dynamically unstable and contain the seeds of their own destruction, forcing large and accelerated adjustments from consumers and producers.
U.S. crude and distillate prices have been hit harder than Brent or gasoline, so fund managers seem to be anticipating they have the most potential for a short-term reversal.
Hedge funds and other money managers were net sellers of just 8 million barrels in the six major petroleum futures and options contracts in the week ending March 24.
#Saudi, #UAE businesses battle cash crunch despite anti-coronavirus stimulus - Reuters
Saudi, UAE businesses battle cash crunch despite anti-coronavirus stimulus - Reuters:
Saudi Arabia and the United Arab Emirates are spending tens of billions to prop up their economies during the coronavirus crisis and oil price slump but the scaling back of state projects is blunting the impact.
The pain felt by the tourism, retail, hospitality and logistics sectors due to global travel disruptions and closure of most public venues is spreading to the contracting and oil services industries in the Arab world’s biggest economies.
Saudi Arabia last week announced suspension of work on the third phase of a $100 billion expansion of the Grand Mosque in Mecca over coronavirus fears. Two days earlier, construction giant Saudi Binladin Group said in an internal note, seen by Reuters, that two employees on the project had been infected.
Riyadh-based MOBCO Civil Construction sent a memo to staff in the Saudi cities of Riyadh, Mecca and Medina notifying them that it plans to cut wages between 25% to 50% due to “unforeseen circumstances of COVID-19”, according to the internal document dated March 25, which was seen by Reuters.
Saudi Arabia and the United Arab Emirates are spending tens of billions to prop up their economies during the coronavirus crisis and oil price slump but the scaling back of state projects is blunting the impact.
The pain felt by the tourism, retail, hospitality and logistics sectors due to global travel disruptions and closure of most public venues is spreading to the contracting and oil services industries in the Arab world’s biggest economies.
Saudi Arabia last week announced suspension of work on the third phase of a $100 billion expansion of the Grand Mosque in Mecca over coronavirus fears. Two days earlier, construction giant Saudi Binladin Group said in an internal note, seen by Reuters, that two employees on the project had been infected.
Riyadh-based MOBCO Civil Construction sent a memo to staff in the Saudi cities of Riyadh, Mecca and Medina notifying them that it plans to cut wages between 25% to 50% due to “unforeseen circumstances of COVID-19”, according to the internal document dated March 25, which was seen by Reuters.
U.S. crude dips below $20 as lockdowns wipe out demand - Reuters
U.S. crude dips below $20 as lockdowns wipe out demand - Reuters:
Oil prices fell sharply on Monday, with U.S. crude briefly dropping below $20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last months and demand for fuel could decline further.
Brent crude, the international benchmark for oil prices, was down $2.08, or 8.3%, at $22.85 by 1127 GMT, after earlier dropping to $22.58, the lowest since November 2002.
U.S. West Texas Intermediate (WTI) crude fell $1.11, or 5.2%, to $20.40. Earlier in the session, WTI fell as low as $19.92.
The price of oil is now so low that it is becoming unprofitable for many oil firms to remain active, analysts said, and higher cost producers will have no choice but to shut production, especially since storage capacities are almost full.
Oil prices fell sharply on Monday, with U.S. crude briefly dropping below $20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last months and demand for fuel could decline further.
Brent crude, the international benchmark for oil prices, was down $2.08, or 8.3%, at $22.85 by 1127 GMT, after earlier dropping to $22.58, the lowest since November 2002.
U.S. West Texas Intermediate (WTI) crude fell $1.11, or 5.2%, to $20.40. Earlier in the session, WTI fell as low as $19.92.
The price of oil is now so low that it is becoming unprofitable for many oil firms to remain active, analysts said, and higher cost producers will have no choice but to shut production, especially since storage capacities are almost full.
MIDEAST STOCKS-Weak oil, fears of prolonged lockdowns weigh on Mideast | Nasdaq
MIDEAST STOCKS-Weak oil, fears of prolonged lockdowns weigh on Mideast | Nasdaq:
Most bourses in the Middle East fell on Monday, weakened by a combination of lower oil prices and intensified fears that the global coronavirus shutdown could last for months.
Brent crude LCOc1, the international benchmark for oil prices, was down $1.92, or 7.7%, at $23.01 by 1027 GMT, after earlier dropping to $22.58, the lowest since November 2002.
In Abu Dhabi, the index .ADI sank 3.5%, with its top lender First Abu Dhabi Bank FAB.AD declining 5% and telecoms firm Etisalat ETISALAT.AD was down 3.1%.
Dubai's main share index .DFMGI eased 2.3%, led by a 4% fall in sharia Compliant lender Dubai Islamic Bank DISB.DU and a 4.1% drop in Emaar Properties EMAR.DU.
The United Arab Emirates on Saturday extended to April 5 a nightly curfew to combat the spread of coronavirus as neighbouring Qatar reported its first death from the disease.
The Qatari index .QSI was down 1.8%. Qatar Islamic Bank QISB.QA fell 3.3%, while Qatar National Bank QNBK.QA retreated 1.9%.
Most bourses in the Middle East fell on Monday, weakened by a combination of lower oil prices and intensified fears that the global coronavirus shutdown could last for months.
Brent crude LCOc1, the international benchmark for oil prices, was down $1.92, or 7.7%, at $23.01 by 1027 GMT, after earlier dropping to $22.58, the lowest since November 2002.
In Abu Dhabi, the index .ADI sank 3.5%, with its top lender First Abu Dhabi Bank FAB.AD declining 5% and telecoms firm Etisalat ETISALAT.AD was down 3.1%.
Dubai's main share index .DFMGI eased 2.3%, led by a 4% fall in sharia Compliant lender Dubai Islamic Bank DISB.DU and a 4.1% drop in Emaar Properties EMAR.DU.
The United Arab Emirates on Saturday extended to April 5 a nightly curfew to combat the spread of coronavirus as neighbouring Qatar reported its first death from the disease.
The Qatari index .QSI was down 1.8%. Qatar Islamic Bank QISB.QA fell 3.3%, while Qatar National Bank QNBK.QA retreated 1.9%.
Goldman Sees U.S., Russian Oil Most Vulnerable to Demand Crash - Bloomberg
Goldman Sees U.S., Russian Oil Most Vulnerable to Demand Crash - Bloomberg:
Oil demand is getting hammered at a faster pace than anyone had predicted and landlocked crude production in the U.S., Russia and Canada is most vulnerable, according to Goldman Sachs Group Inc.
Consumption will drop by 26 million barrels, or 25%, this week as social-distancing measures to contain the coronavirus now impact 92% of global GDP, analysts including Jeff Currie and Damien Courvalin said in a note. There’s been at least 900,000 barrels a day of announced shut-ins at the wellhead, with the true number likely higher and growing by the hour, they said.
“The ultimate magnitude of these shut-ins, which is still unknown, will likely permanently alter the energy industry and its geopolitics,” the analysts said. Landlocked crude prices are heading into negative territory and will eventually create an inflationary oil supply shock because so much production will have been halted, they said.
Brent crude will likely stay near cash costs of $20 a barrel with temporary downward spikes as waterborne varieties are better positioned compared with landlocked oil in the U.S., Canada and Russia that’s sitting behind pipelines, Goldman said. Shut-ins will be not be based upon where wells sit on the cost curve but rather on logistics and access, it said.
Oil demand is getting hammered at a faster pace than anyone had predicted and landlocked crude production in the U.S., Russia and Canada is most vulnerable, according to Goldman Sachs Group Inc.
Consumption will drop by 26 million barrels, or 25%, this week as social-distancing measures to contain the coronavirus now impact 92% of global GDP, analysts including Jeff Currie and Damien Courvalin said in a note. There’s been at least 900,000 barrels a day of announced shut-ins at the wellhead, with the true number likely higher and growing by the hour, they said.
“The ultimate magnitude of these shut-ins, which is still unknown, will likely permanently alter the energy industry and its geopolitics,” the analysts said. Landlocked crude prices are heading into negative territory and will eventually create an inflationary oil supply shock because so much production will have been halted, they said.
Brent crude will likely stay near cash costs of $20 a barrel with temporary downward spikes as waterborne varieties are better positioned compared with landlocked oil in the U.S., Canada and Russia that’s sitting behind pipelines, Goldman said. Shut-ins will be not be based upon where wells sit on the cost curve but rather on logistics and access, it said.
#SaudiArabia, Virus News: Banks Told to Support Businesses - Bloomberg
Saudi Arabia, Virus News: Banks Told to Support Businesses - Bloomberg:
Saudi Arabia’s central bank is ordering lenders to provide concessional loans to businesses grappling with the fallout of the coronavirus so companies won’t have to cut jobs.
The Saudi Arabian Monetary Authority wants banks to immediately put in place a lending program for at least six months to “assist in maintaining employment levels,” according to a document sent by the regulator to lenders and seen by Bloomberg. Banks should also provide relief on debt repayments for any customers that have already been dismissed, SAMA, as the central bank is known, said in the circular.
The measures “will come at a cost to shareholders as banks’ revenue will be put under more pressure by the waivers on fees and some interest charges,” Bloomberg Intelligence analyst Edmond Christou said in a note.
Saudi Arabia’s central bank is ordering lenders to provide concessional loans to businesses grappling with the fallout of the coronavirus so companies won’t have to cut jobs.
The Saudi Arabian Monetary Authority wants banks to immediately put in place a lending program for at least six months to “assist in maintaining employment levels,” according to a document sent by the regulator to lenders and seen by Bloomberg. Banks should also provide relief on debt repayments for any customers that have already been dismissed, SAMA, as the central bank is known, said in the circular.
The measures “will come at a cost to shareholders as banks’ revenue will be put under more pressure by the waivers on fees and some interest charges,” Bloomberg Intelligence analyst Edmond Christou said in a note.
MIDEAST STOCKS-Most Gulf stocks retreat on fears of prolonged shutdowns - Reuters
MIDEAST STOCKS-Most Gulf stocks retreat on fears of prolonged shutdowns - Reuters:
Most Gulf stock markets traded lower on Monday, driven down by banks, on heightened fears that the global coronavirus shutdown could last months.
More than 720,000 people have been infected by the coronavirus across the world and nearly 34,000 have died, according to a Reuters tally.
In Abu Dhabi, the index retreated 2%, as top lender First Abu Dhabi Bank slid 3.7%, while Abu Dhabi Commercial Bank declined 3.3%.
Dubai’s main share index dropped 1.1%, with its largest lender Emirates NBD losing 1.4% and Dubai Islamic Bank easing 0.8%.
Most Gulf stock markets traded lower on Monday, driven down by banks, on heightened fears that the global coronavirus shutdown could last months.
More than 720,000 people have been infected by the coronavirus across the world and nearly 34,000 have died, according to a Reuters tally.
In Abu Dhabi, the index retreated 2%, as top lender First Abu Dhabi Bank slid 3.7%, while Abu Dhabi Commercial Bank declined 3.3%.
Dubai’s main share index dropped 1.1%, with its largest lender Emirates NBD losing 1.4% and Dubai Islamic Bank easing 0.8%.
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 futures slide as pandemic darkens demand outlook - Reuters
Oil futures slide as pandemic darkens demand outlook - Reuters:
Crude oil benchmarks fell sharply on Monday, with Brent hitting its lowest since November 2002, as fears grew over the coronavirus pandemic eroding demand and the Saudi Arabia-Russia price war threatened to overload the market.
Brent futures LCOc1 were down 5.8%, or $1.45, to $23.48 a barrel as of 0623 GMT, after earlier dropping to $23.03, the lowest since November 2002.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell as far as $19.92, near an 18-year low hit earlier this month, and was last trading down 3.8%, or $0.82, at $20.69 a barrel.
“Central banks have been easing (monetary policy) and governments have been offering stimulus packages, but they are only supportive measures, not radical treatments,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
Crude oil benchmarks fell sharply on Monday, with Brent hitting its lowest since November 2002, as fears grew over the coronavirus pandemic eroding demand and the Saudi Arabia-Russia price war threatened to overload the market.
Brent futures LCOc1 were down 5.8%, or $1.45, to $23.48 a barrel as of 0623 GMT, after earlier dropping to $23.03, the lowest since November 2002.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell as far as $19.92, near an 18-year low hit earlier this month, and was last trading down 3.8%, or $0.82, at $20.69 a barrel.
“Central banks have been easing (monetary policy) and governments have been offering stimulus packages, but they are only supportive measures, not radical treatments,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
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