U.S. oil plunges 25%, Brent falls below $20 a barrel - Reuters:
Brent crude fell below $20 a barrel and U.S. crude plunged 25% on Monday, driven lower by skittish investors fleeing the U.S. benchmark due to lack of available storage to deal with a coronavirus-induced collapse in demand.
Even as governments worldwide are taking tentative steps towards reducing restriction on movement to help economies rebound, fuel demand remains weak.
Fuel demand is down 30% globally, and storage is becoming precious, with roughly 85% of worldwide onshore storage full as of last week, according to Kpler data.
Economic concerns continue to plague the market. Global economic output is expected to contract by 2% this year - worse than the financial crisis - while demand has collapsed by 30% because of the pandemic.
U.S. West Texas Intermediate crude futures (WTI) fell $4.16, or 24.6%, to settle at $12.78 a barrel. Brent crude slid $1.45, or 6.8%, to settle at $19.99 a barrel.
Monday, 27 April 2020
Banks asked to search and seize BR Shetty’s accounts in #UAE | Banking – Gulf News
Banks asked to search and seize BR Shetty’s accounts in UAE | Banking – Gulf News:
The Central Bank of the UAE (CBUAE) has instructed financial institutions in the country to search and freeze all bank accounts of Indian billionaire BR Shetty and his family along with those of companies where he has a stake.
The apex bank has also blacklisted several firms associated with Shetty along with their entire senior management.
In an advisory issued last week, CBUAE cited decisions of the Federal Attorney General and asked financial institutions to search and freeze any bank accounts, deposits or investments in the name of Shetty or his family members.
The Central Bank of the UAE (CBUAE) has instructed financial institutions in the country to search and freeze all bank accounts of Indian billionaire BR Shetty and his family along with those of companies where he has a stake.
The apex bank has also blacklisted several firms associated with Shetty along with their entire senior management.
In an advisory issued last week, CBUAE cited decisions of the Federal Attorney General and asked financial institutions to search and freeze any bank accounts, deposits or investments in the name of Shetty or his family members.
UPDATE 9-U.S. oil plunges 18%, Brent hovers near $20 a barrel - Agricultural Commodities - Reuters
UPDATE 9-U.S. oil plunges 18%, Brent hovers near $20 a barrel - Agricultural Commodities - Reuters:
Brent crude hovered around $20 a barrel and U.S. crude plunged 18% on Monday, driven lower by skittish investors fleeing the U.S. benchmark due to lack of available storage to deal with a coronavirus-induced collapse in demand.
Even as governments worldwide are taking tentative steps towards reducing restriction on movement to help economies rebound, fuel demand remains weak.
Fuel demand is down 30% globally, and storage is becoming precious, with roughly 85% of worldwide onshore storage full as of last week, according to Kpler data.
Economic concerns continue to plague the market. Global economic output is expected to contract by 2% this year - worse than the financial crisis - while demand has collapsed by 30% because of the pandemic.
Brent crude hovered around $20 a barrel and U.S. crude plunged 18% on Monday, driven lower by skittish investors fleeing the U.S. benchmark due to lack of available storage to deal with a coronavirus-induced collapse in demand.
Even as governments worldwide are taking tentative steps towards reducing restriction on movement to help economies rebound, fuel demand remains weak.
Fuel demand is down 30% globally, and storage is becoming precious, with roughly 85% of worldwide onshore storage full as of last week, according to Kpler data.
Economic concerns continue to plague the market. Global economic output is expected to contract by 2% this year - worse than the financial crisis - while demand has collapsed by 30% because of the pandemic.
#UAE tells banks to freeze accounts of NMC founder Shetty, others: sources - Reuters
UAE tells banks to freeze accounts of NMC founder Shetty, others: sources - Reuters:
United Arab Emirates lenders have been told by the central bank to freeze the accounts of NMC Health shareholder BR Shetty and his family, three sources with knowledge of the matter said.
NMC (NMC.L), which was founded by Shetty in the mid-1970s and has become the largest private healthcare provider in the UAE, was placed into administration this month.
Its shares, which NMC plans to delist in London, were suspended after more than halving in value since December, when short-seller Muddy Waters questioned its financial reporting.
The UAE freezing directive, which was issued by the central bank last week, extends to two other NMC shareholders, Khalifa al-Muhairi and Saeed Mohamed Butti Mohamed al-Qebaisi, the sources, who had seen the order, told Reuters.
United Arab Emirates lenders have been told by the central bank to freeze the accounts of NMC Health shareholder BR Shetty and his family, three sources with knowledge of the matter said.
NMC (NMC.L), which was founded by Shetty in the mid-1970s and has become the largest private healthcare provider in the UAE, was placed into administration this month.
Its shares, which NMC plans to delist in London, were suspended after more than halving in value since December, when short-seller Muddy Waters questioned its financial reporting.
The UAE freezing directive, which was issued by the central bank last week, extends to two other NMC shareholders, Khalifa al-Muhairi and Saeed Mohamed Butti Mohamed al-Qebaisi, the sources, who had seen the order, told Reuters.
RPT-COLUMN-Asian LNG prices take bigger coronavirus hit than Brent crude: Russell - Reuters
RPT-COLUMN-Asian LNG prices take bigger coronavirus hit than Brent crude: Russell - Reuters:
While the coronavirus-led plunge in crude oil prices has grabbed the bulk of the headlines, the collapse in spot liquefied natural gas (LNG) prices in Asia has been just as dramatic, and just as likely to have lasting consequences.
Spot LNG prices for delivery to North Asia LNG-AS slipped to $1.95 per million British thermal units (mmBtu) in the week ended April 24 - the lowest on record and also the first time they have closed below the $2 mark.
That means a slump of 71.3% since their pre-winter peak of $6.80 per mmBtu in October last year, worse than the 70.1% fall in Brent crude oil futures from their Jan. 8 peak this year - $71.75 a barrel - to the April 24 close of $21.44.
While the coronavirus-led plunge in crude oil prices has grabbed the bulk of the headlines, the collapse in spot liquefied natural gas (LNG) prices in Asia has been just as dramatic, and just as likely to have lasting consequences.
Spot LNG prices for delivery to North Asia LNG-AS slipped to $1.95 per million British thermal units (mmBtu) in the week ended April 24 - the lowest on record and also the first time they have closed below the $2 mark.
That means a slump of 71.3% since their pre-winter peak of $6.80 per mmBtu in October last year, worse than the 70.1% fall in Brent crude oil futures from their Jan. 8 peak this year - $71.75 a barrel - to the April 24 close of $21.44.
Du CEO warns 'worst is still ahead' for #UAE telco amid Covid-19 crisis - Arabianbusiness
Du CEO warns 'worst is still ahead' for UAE telco amid Covid-19 crisis - Arabianbusiness:
The CEO of Emirates Integrated Telecommunications Company (EITC), Johan Dennelind, has warned of tough times ahead for the provider, who last week announced a year-on-year 4.8 percent drop in revenues to AED2.99 billion for the first quarter of 2020.
According to a company statement last week, Q1 2020 EBITDA and net income were down by 10.8 percent (AED1.266bn) and 21 percent (AED335m) year-on-year respectively, driven by a decline in mobile revenues as a result of customers moving towards more prepaid options as opposed to fixed contracts.
Dennelind told Arabian Business: “We have only talked about Q1 and as you see our revenues are down five percent on year-on-year for the quarter and moving forward we expect the worst is still ahead of us in terms of our revenue impact and we’re mitigating more on the cost side to try to stay in the right zone.
The CEO of Emirates Integrated Telecommunications Company (EITC), Johan Dennelind, has warned of tough times ahead for the provider, who last week announced a year-on-year 4.8 percent drop in revenues to AED2.99 billion for the first quarter of 2020.
According to a company statement last week, Q1 2020 EBITDA and net income were down by 10.8 percent (AED1.266bn) and 21 percent (AED335m) year-on-year respectively, driven by a decline in mobile revenues as a result of customers moving towards more prepaid options as opposed to fixed contracts.
Dennelind told Arabian Business: “We have only talked about Q1 and as you see our revenues are down five percent on year-on-year for the quarter and moving forward we expect the worst is still ahead of us in terms of our revenue impact and we’re mitigating more on the cost side to try to stay in the right zone.
First #AbuDhabi Bank's profit hit by impairment charges - Reuters
First Abu Dhabi Bank's profit hit by impairment charges - Reuters:
First Abu Dhabi Bank (FAB.AD), the biggest lender in the United Arab Emirates (UAE), reported a 22% drop in quarterly profit on Monday, hit by interest rate cuts and impairment charges.
Its net profit in the first quarter was 2.4 billion dirhams($653.4 million) versus 3.1 billion dirhams a year earlier.
Net impairment charges leapt 44.8% to 738 million dirhams, which it said reflected “prudent provisioning due to a challenging operating environment”.
The UAE central bank has launched $70 billion worth of capital and liquidity measures aimed at providing economic stimulus during the coronavirus pandemic.
First Abu Dhabi Bank (FAB.AD), the biggest lender in the United Arab Emirates (UAE), reported a 22% drop in quarterly profit on Monday, hit by interest rate cuts and impairment charges.
Its net profit in the first quarter was 2.4 billion dirhams($653.4 million) versus 3.1 billion dirhams a year earlier.
Net impairment charges leapt 44.8% to 738 million dirhams, which it said reflected “prudent provisioning due to a challenging operating environment”.
The UAE central bank has launched $70 billion worth of capital and liquidity measures aimed at providing economic stimulus during the coronavirus pandemic.
IMF calls for Mideast sovereign wealth funds to boost local economies - Reuters
IMF calls for Mideast sovereign wealth funds to boost local economies - Reuters:
Sovereign wealth funds in the Middle East should be used to boost growth, an International Monetary Fund (IMF) official said on Monday, as regional economies struggle with the coronavirus pandemic and the crippling impact of lower oil prices.
Oil exporters in the Middle East and North Africa (MENA) region are expected to see a yearly decline in oil export receipts this year of $226 billion, according to the IMF.
This is likely to weigh on their budgets, widening fiscal deficits and potentially limiting governments’ firepower to boost economic growth.
For Gulf oil exporters this is problematic as government spending has been a key engine of economic transformation plans launched over the past few years to diversify their economies away from oil revenues.
Sovereign wealth funds in the Middle East should be used to boost growth, an International Monetary Fund (IMF) official said on Monday, as regional economies struggle with the coronavirus pandemic and the crippling impact of lower oil prices.
Oil exporters in the Middle East and North Africa (MENA) region are expected to see a yearly decline in oil export receipts this year of $226 billion, according to the IMF.
This is likely to weigh on their budgets, widening fiscal deficits and potentially limiting governments’ firepower to boost economic growth.
For Gulf oil exporters this is problematic as government spending has been a key engine of economic transformation plans launched over the past few years to diversify their economies away from oil revenues.
#Saudi wealth fund builds $500m Live Nation stake | Financial Times
Saudi wealth fund builds $500m Live Nation stake | Financial Times:
Saudi Arabia’s sovereign wealth fund has built a $500m stake in battered concert promoter Live Nation, marking the Gulf kingdom’s latest big bet on a troubled company in recent weeks as it scours global markets for bargains.
The Public Investment Fund, the Saudi vehicle steered by Crown Prince Mohammed Bin Salman, has acquired a 5.7 per cent stake in the Los Angeles-based entertainment group, according to a US regulatory filing. Shares in Live Nation climbed 6.7 per cent to $40.78 just before midday in New York, giving it a market value of $8.8bn.
In recent weeks the PIF has snapped up stakes in beleaguered cruise line operator Carnival and European oil companies including Royal Dutch Shell and Total, whose shares have been hit by the collapse in crude prices. It also agreed a £300m deal to buy a majority stake in English Premier League football club Newcastle United.
Live Nation is among the hardest-hit media companies in the coronavirus crisis, with more than 30,000 events cancelled or postponed across the world.
Saudi Arabia’s sovereign wealth fund has built a $500m stake in battered concert promoter Live Nation, marking the Gulf kingdom’s latest big bet on a troubled company in recent weeks as it scours global markets for bargains.
The Public Investment Fund, the Saudi vehicle steered by Crown Prince Mohammed Bin Salman, has acquired a 5.7 per cent stake in the Los Angeles-based entertainment group, according to a US regulatory filing. Shares in Live Nation climbed 6.7 per cent to $40.78 just before midday in New York, giving it a market value of $8.8bn.
In recent weeks the PIF has snapped up stakes in beleaguered cruise line operator Carnival and European oil companies including Royal Dutch Shell and Total, whose shares have been hit by the collapse in crude prices. It also agreed a £300m deal to buy a majority stake in English Premier League football club Newcastle United.
Live Nation is among the hardest-hit media companies in the coronavirus crisis, with more than 30,000 events cancelled or postponed across the world.
#UAE News: #Dubai Considers Private Debt to Bolster Finances - Bloomberg
UAE News: Dubai Considers Private Debt to Bolster Finances - Bloomberg:
Dubai is in talks to raise billions of dollars of debt privately instead of following Gulf neighbors by tapping public markets, as the emirate looks to bolster its finances and mitigate the economic fallout of the coronavirus pandemic.
The Middle East’s main business hub is discussing loans and private placements with around a dozen international and domestic banks, according to people with knowledge of the matter.
The emirate is seeking loans of 1 billion dirhams ($272 million) to 2 billion dirhams from each lender and asking them to find fixed-income investors to buy private placements, said one of the people, who asked not to be named. Dubai would probably repay the debt with a public bond in the next five years, they said.
Dubai is in talks to raise billions of dollars of debt privately instead of following Gulf neighbors by tapping public markets, as the emirate looks to bolster its finances and mitigate the economic fallout of the coronavirus pandemic.
The Middle East’s main business hub is discussing loans and private placements with around a dozen international and domestic banks, according to people with knowledge of the matter.
The emirate is seeking loans of 1 billion dirhams ($272 million) to 2 billion dirhams from each lender and asking them to find fixed-income investors to buy private placements, said one of the people, who asked not to be named. Dubai would probably repay the debt with a public bond in the next five years, they said.
Oil Plunges Back Below $12 With ETF Sell-Off Adding to Pressure - Bloomberg
Oil Plunges Back Below $12 With ETF Sell-Off Adding to Pressure - Bloomberg:
Oil slumped below $12 a barrel as the biggest oil ETF said it will sell out of its June WTI futures position, adding to the downward pressure from a huge glut.
Futures in New York slid as much as 30%, snapping a four-day recovery and deepening losses after the U.S. Oil Fund’s announcement. While U.S. drilling is sliding and Saudi Arabia has started reducing output ahead of the start date for OPEC+ supply cuts, an immense surplus of oil means storage tanks are close to capacity around the world. South Korea, which holds the fourth-biggest commercial storage capacity in Asia, was said to have run out of onshore space.
With a number of producers commencing output cuts, some of the huge discounts seen in physical markets have eased, particularly in Europe. Swaps markets in the North Sea and Russia were trading stronger last week, though there’s still plenty of cause for pessimism. On a global level, the swelling glut is set to test storage capacity limits in as little as three weeks, according to Goldman Sachs Group Inc., with traders, refiners and infrastructure providers seeking novel ways to hoard crude, including on tiny barges around Europe’s petroleum-trading hub, and in pipelines.
Oil slumped below $12 a barrel as the biggest oil ETF said it will sell out of its June WTI futures position, adding to the downward pressure from a huge glut.
Futures in New York slid as much as 30%, snapping a four-day recovery and deepening losses after the U.S. Oil Fund’s announcement. While U.S. drilling is sliding and Saudi Arabia has started reducing output ahead of the start date for OPEC+ supply cuts, an immense surplus of oil means storage tanks are close to capacity around the world. South Korea, which holds the fourth-biggest commercial storage capacity in Asia, was said to have run out of onshore space.
With a number of producers commencing output cuts, some of the huge discounts seen in physical markets have eased, particularly in Europe. Swaps markets in the North Sea and Russia were trading stronger last week, though there’s still plenty of cause for pessimism. On a global level, the swelling glut is set to test storage capacity limits in as little as three weeks, according to Goldman Sachs Group Inc., with traders, refiners and infrastructure providers seeking novel ways to hoard crude, including on tiny barges around Europe’s petroleum-trading hub, and in pipelines.
#Saudi's Riyad Bank plans early redemption of $1.06bln sukuk | ZAWYA MENA Edition
Saudi's Riyad Bank plans early redemption of $1.06bln sukuk | ZAWYA MENA Edition:
Riyad Bank intends an early redemption of its 4 billion riyals ($1.06 billion) sukuk due in 2025, the Saudi lender said in a statement on Tadawul.
The sukuk redemption will be in full, at face value, at the end of year five (on June 24, 2020).
The sukuk was issued on June 24, 2015 for an aggregate value of 4 billion riyals with an original maturity of ten years, due on June 24, 2025.
The bank has obtained regulatory approval for the sukuk redemption, the statement showed.
Riyad Bank intends an early redemption of its 4 billion riyals ($1.06 billion) sukuk due in 2025, the Saudi lender said in a statement on Tadawul.
The sukuk redemption will be in full, at face value, at the end of year five (on June 24, 2020).
The sukuk was issued on June 24, 2015 for an aggregate value of 4 billion riyals with an original maturity of ten years, due on June 24, 2025.
The bank has obtained regulatory approval for the sukuk redemption, the statement showed.
MIDEAST STOCKS-Oil price fall hurts #Saudi market; others mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Oil price fall hurts Saudi market; others mixed - Agricultural Commodities - Reuters:
Saudi Arabia's stock market slipped on
Monday, ending three sessions of gains amid falling oil prices,
while Dubai's index was buoyed by gains in banking shares.
Oil prices fell on Monday on concerns about scarce storage
capacity and global economic doldrums from the coronavirus
pandemic. Brent crude was down 85 cents, or 4%, at
$20.59 a barrel by 1143 GMT.
Saudi Arabia's benchmark index retreated 0.2%, with
petrochemical firm Saudi Basic Industries dropping
1.4%, while Bank AlBilad 1140.SE was down 2.3% as the lender
traded ex-dividend.
In Dubai, the index rose 1.5%, with Dubai Islamic
Bank gaining 2.6% and Mashreqbank soaring
14.2%.
The emirate said on Sunday it has lifted its full lockdown
on two commercial districts which have a large population of
low-income migrant workers, after the United Arab Emirates eased
nationwide coronavirus curfews over the weekend.
Saudi Arabia's stock market slipped on
Monday, ending three sessions of gains amid falling oil prices,
while Dubai's index was buoyed by gains in banking shares.
Oil prices fell on Monday on concerns about scarce storage
capacity and global economic doldrums from the coronavirus
pandemic. Brent crude was down 85 cents, or 4%, at
$20.59 a barrel by 1143 GMT.
Saudi Arabia's benchmark index retreated 0.2%, with
petrochemical firm Saudi Basic Industries dropping
1.4%, while Bank AlBilad 1140.SE was down 2.3% as the lender
traded ex-dividend.
In Dubai, the index rose 1.5%, with Dubai Islamic
Bank gaining 2.6% and Mashreqbank soaring
14.2%.
The emirate said on Sunday it has lifted its full lockdown
on two commercial districts which have a large population of
low-income migrant workers, after the United Arab Emirates eased
nationwide coronavirus curfews over the weekend.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
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 prices resume slide on oversupply and storage concerns - Reuters
Oil prices resume slide on oversupply and storage concerns - Reuters:
Oil prices slumped again on Monday on concerns over scarce storage capacity, especially in the United States, and global economic doldrums from the coronavirus pandemic.
U.S. oil futures led losses, falling by more than $3 a barrel on fears that storage at Cushing, Oklahoma, could reach full capacity soon.
U.S. West Texas Intermediate CLc1 June futures fell $3.61, or 21.3%, to $13.33 a barrel by 1215 GMT.
Brent crude LCOc1 was down $1.17, or 5.5%, at $20.27 a barrel. The June Brent contract expires on Thursday.
Oil prices slumped again on Monday on concerns over scarce storage capacity, especially in the United States, and global economic doldrums from the coronavirus pandemic.
U.S. oil futures led losses, falling by more than $3 a barrel on fears that storage at Cushing, Oklahoma, could reach full capacity soon.
U.S. West Texas Intermediate CLc1 June futures fell $3.61, or 21.3%, to $13.33 a barrel by 1215 GMT.
Brent crude LCOc1 was down $1.17, or 5.5%, at $20.27 a barrel. The June Brent contract expires on Thursday.
Citigroup Sees Asset Sales Boosting $47 Billion Gulf Debt Binge - Bloomberg
Citigroup Sees Asset Sales Boosting $47 Billion Gulf Debt Binge - Bloomberg:
Oil-rich Gulf nations may turn to asset sales to complement an almost $50 billion debt spree to support economies rocked by the coronavirus pandemic and the collapse in crude prices, according to Citigroup Inc.
Countries including Saudi Arabia and the United Arab Emirates have “really attractive” government-owned assets, which could be sold to the public or partnered with other investors, Atiq Rehman, head of Citigroup Inc.’s emerging-market cluster for Europe, the Middle East and Africa, said in an interview.
“There are opportunities obviously on that front,” he said. “There is also high investment-grade rating for their ability to raise substantial amount of international debt at very attractive prices. There is capacity to borrow more.”
Gulf governments are looking at ways to shore up their economies as the coronavirus pandemic and a historic crash in oil prices add to pressure on already strained finances. Unlike in Europe, most major entities in the region are still state owned. Saudi Arabia last year raised $29.4 billion by selling less than a 2% stake in the world’s biggest oil producer, Saudi Aramco.
Oil-rich Gulf nations may turn to asset sales to complement an almost $50 billion debt spree to support economies rocked by the coronavirus pandemic and the collapse in crude prices, according to Citigroup Inc.
Countries including Saudi Arabia and the United Arab Emirates have “really attractive” government-owned assets, which could be sold to the public or partnered with other investors, Atiq Rehman, head of Citigroup Inc.’s emerging-market cluster for Europe, the Middle East and Africa, said in an interview.
“There are opportunities obviously on that front,” he said. “There is also high investment-grade rating for their ability to raise substantial amount of international debt at very attractive prices. There is capacity to borrow more.”
Gulf governments are looking at ways to shore up their economies as the coronavirus pandemic and a historic crash in oil prices add to pressure on already strained finances. Unlike in Europe, most major entities in the region are still state owned. Saudi Arabia last year raised $29.4 billion by selling less than a 2% stake in the world’s biggest oil producer, Saudi Aramco.
Mideast economies take massive hit with oil price crash
Mideast economies take massive hit with oil price crash:
Iraq is planning painful cuts in social benefits relied on by millions of government workers. Saudi Arabia will likely have to delay mega-projects. Egypt and Lebanon face a blow as their workers in the Gulf send back less of the much-needed dollars that help keep their fragile economies afloat.
The historic crash in oil prices in the wake of the coronavirus pandemic is reverberating across the Middle East as crude-dependent countries scramble to offset losses from a key source of state revenue — and all this at a time when several of them already face explosive social unrest.
The economies of all the Arab Gulf oil exporters are expected to contract this year, as much as 5% in Iraq, according to the International Monetary Fund.
While some Gulf countries can rely on a cushion of foreign currency reserves, nowhere in the region are the circumstances more dire than in Iraq, where oil sales fund 90% of the state budget.
Iraq is planning painful cuts in social benefits relied on by millions of government workers. Saudi Arabia will likely have to delay mega-projects. Egypt and Lebanon face a blow as their workers in the Gulf send back less of the much-needed dollars that help keep their fragile economies afloat.
The historic crash in oil prices in the wake of the coronavirus pandemic is reverberating across the Middle East as crude-dependent countries scramble to offset losses from a key source of state revenue — and all this at a time when several of them already face explosive social unrest.
The economies of all the Arab Gulf oil exporters are expected to contract this year, as much as 5% in Iraq, according to the International Monetary Fund.
While some Gulf countries can rely on a cushion of foreign currency reserves, nowhere in the region are the circumstances more dire than in Iraq, where oil sales fund 90% of the state budget.
Japan's MUFG expects deep recession across GCC countries - Reuters
Japan's MUFG expects deep recession across GCC countries - Reuters:
Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) (8306.T) expects countries in the six-nation Gulf Cooperation Council (GCC) to be in deep recession this year with overall real GDP contracting 3.7% from a previous growth forecast of 2.9%.
The bank said in a research note on Monday the new forecast took into account oil output cuts, the impact of the new coronavirus on the non-oil economies of the region, and the stimulus provided by GCC governments.
MUFG estimates the drop in oil prices costs the six nations - Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman - some $72 billion in overall lost oil export receipts for each $10 a barrel drop, and said it expects overall GCC financing requirements of $208 billion this year assuming an average Brent price of $43 per barrel.
“The GCC region continues to grapple with two ultra-bearish shocks – demand-side destruction caused by COVID-19 and supply-side challenges caused by the oil price collapse,” it said.
Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) (8306.T) expects countries in the six-nation Gulf Cooperation Council (GCC) to be in deep recession this year with overall real GDP contracting 3.7% from a previous growth forecast of 2.9%.
The bank said in a research note on Monday the new forecast took into account oil output cuts, the impact of the new coronavirus on the non-oil economies of the region, and the stimulus provided by GCC governments.
MUFG estimates the drop in oil prices costs the six nations - Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman - some $72 billion in overall lost oil export receipts for each $10 a barrel drop, and said it expects overall GCC financing requirements of $208 billion this year assuming an average Brent price of $43 per barrel.
“The GCC region continues to grapple with two ultra-bearish shocks – demand-side destruction caused by COVID-19 and supply-side challenges caused by the oil price collapse,” it said.
NMC Health requests delisting from LSE - Reuters
NMC Health requests delisting from LSE - Reuters:
Troubled hospital operator NMC Health (NMC.L) said on Monday it requested its shares be delisted from the London Stock Exchange after they were suspended two months ago.
Shares in the UAE-based company were suspended two months ago and it was placed into administration this month following an application form one of the company’s biggest lenders, Abu Dhabi Commercial Bank (ADCB.AD).
That move followed NMC revising its debt position to $6.6 billion, well above earlier estimates.
“We are working at pace to ensure continuity of patient care, stability for staff and suppliers and financial security for NMC’s operating companies,” Richard Fleming, joint administrator of NMC Health and managing director of Alvarez & Marsal, said in a statement on NMC’s behalf.
Troubled hospital operator NMC Health (NMC.L) said on Monday it requested its shares be delisted from the London Stock Exchange after they were suspended two months ago.
 |
| General view of NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020. REUTERS/Satish Kumar |
Shares in the UAE-based company were suspended two months ago and it was placed into administration this month following an application form one of the company’s biggest lenders, Abu Dhabi Commercial Bank (ADCB.AD).
That move followed NMC revising its debt position to $6.6 billion, well above earlier estimates.
“We are working at pace to ensure continuity of patient care, stability for staff and suppliers and financial security for NMC’s operating companies,” Richard Fleming, joint administrator of NMC Health and managing director of Alvarez & Marsal, said in a statement on NMC’s behalf.
Oil prices skid on oversupply, storage concerns - Reuters
Oil prices skid on oversupply, storage concerns - Reuters:
Oil prices fell on Monday on concerns about scarce storage capacity and global economic doldrums from the coronavirus pandemic.
U.S. oil futures led losses, falling by more than $2 a barrel on fears that storage at Cushing, Oklahoma, could reach full capacity soon.
U.S. West Texas Intermediate CLc1 June futures fell $2.42, or 14.3%, to $14.52 a barrel by 0830 GMT.
Brent crude LCOc1 was down 90 cents, or 4.2%, at $20.54 a barrel. The June Brent contract expires on Thursday.
Oil prices fell on Monday on concerns about scarce storage capacity and global economic doldrums from the coronavirus pandemic.
U.S. oil futures led losses, falling by more than $2 a barrel on fears that storage at Cushing, Oklahoma, could reach full capacity soon.
U.S. West Texas Intermediate CLc1 June futures fell $2.42, or 14.3%, to $14.52 a barrel by 0830 GMT.
Brent crude LCOc1 was down 90 cents, or 4.2%, at $20.54 a barrel. The June Brent contract expires on Thursday.
MIDEAST STOCKS- #Saudi bourse retreats after oil drops; others mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi bourse retreats after oil drops; others mixed - Agricultural Commodities - Reuters:
Saudi Arabian stocks retreated in early trade on Monday after oil prices fell, while bourses in the United Arab Emirates were mixed in thin volumes.
Oil prices fell on Monday on signs that worldwide oil storage is filling rapidly, raising concerns that production cuts will not come fast enough to fully offset the collapse in demand from the coronavirus pandemic.
Brent crude was down $1.18, or 5.5%, at $20.26 a barrel by 0738 GMT.
The Saudi index fell 0.4% with oil giant Saudi Aramco losing 0.7%, while Bank AlBilad was down 1.6% as the lender traded ex-dividend.
Saudi Arabian stocks retreated in early trade on Monday after oil prices fell, while bourses in the United Arab Emirates were mixed in thin volumes.
Oil prices fell on Monday on signs that worldwide oil storage is filling rapidly, raising concerns that production cuts will not come fast enough to fully offset the collapse in demand from the coronavirus pandemic.
Brent crude was down $1.18, or 5.5%, at $20.26 a barrel by 0738 GMT.
The Saudi index fell 0.4% with oil giant Saudi Aramco losing 0.7%, while Bank AlBilad was down 1.6% as the lender traded ex-dividend.
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