Brent settles higher on easing lockdowns, U.S. crude falls amid storage shortage - Reuters:
U.S. crude prices settled lower on Tuesday, falling about 3% as domestic stockpiles were expected to have risen closer to record highs amid tightening storage despite plans to cut production during the COVID-19 pandemic.
However, markets were supported on hopes of demand recovering across the world, as governments announced the easing of coronavirus-related restrictions, although Britain said its too dangerous to relax a lockdown for fear of a deadly second outbreak.
At least 16 U.S. states looked set to restart business.
“Demand destruction has leveled off in the U.S., but production cuts have just begun in earnest,” said Phil Flynn, senior analyst at Price Futures Group.”
U.S. West Texas Intermediate (WTI) crude CLc1 was down 44 cents, or 3.4%, at $12.34 a barrel. The contract plunged 25% on Monday.
Global benchmark Brent crude LCOc1 settled up 47 cents, or 2.3%, at $20.46 a barrel, following a 6.8% slide on Monday.
Tuesday 28 April 2020
Oil Crash Has Little Relevance to Emerging Markets in Virus Era - Bloomberg
Oil Crash Has Little Relevance to Emerging Markets in Virus Era - Bloomberg:
Time was when an oil-price rout almost certainly meant a currency meltdown in emerging markets. Now, it’s failing to cause as much as a flutter.
Sixteen of 25 developing-nation currencies analyzed by Bloomberg are trading near their highest levels in at least 15 years against Brent crude, the benchmark for more than half of the world’s oil. And all but two of them have a correlation coefficient of less than 0.3 with the commodity, signaling crude-price moves have little impact.
The breakdown of oil’s traditional influence on emerging markets shows that currencies are driven more by the economic outlook in the coronavirus era and are treating the oil slump as an idiosyncratic story. They could rebound once the pandemic subsides and national lock-downs are lifted, even if oil prices are slow to respond.
Time was when an oil-price rout almost certainly meant a currency meltdown in emerging markets. Now, it’s failing to cause as much as a flutter.
Sixteen of 25 developing-nation currencies analyzed by Bloomberg are trading near their highest levels in at least 15 years against Brent crude, the benchmark for more than half of the world’s oil. And all but two of them have a correlation coefficient of less than 0.3 with the commodity, signaling crude-price moves have little impact.
The breakdown of oil’s traditional influence on emerging markets shows that currencies are driven more by the economic outlook in the coronavirus era and are treating the oil slump as an idiosyncratic story. They could rebound once the pandemic subsides and national lock-downs are lifted, even if oil prices are slow to respond.
#Saudi Banks Act in Unison to Reassure Investors on Oil and Virus - Bloomberg
Saudi Banks Act in Unison to Reassure Investors on Oil and Virus - Bloomberg:
Saudi Arabia’s banks are all on the same page when it comes to the message they want to send to investors this earnings season: they’re financially sound, even with the double whammy of the coronavirus and collapse in oil prices.
All of the oil-rich kingdom’s listed lenders used the same language -- word-for-word -- to highlight their strength and warn that it’s still too early “to determine the size and extent of the financial impact at this stage.”
The kingdom’s largest lender, National Commercial Bank, was the first to reassure investors on Tuesday that “its financial soundness indicators are strong and able to stand the current economic challenges.” It also said government initiatives to support the banking sector “will limit the economic and financial impact” of the measures taken to curtail the spread of the coronavirus.
By the time Arab National Bank posted the same statement to the stock market just one hour later, that message had been repeated ten times.
Saudi Arabia’s banks are all on the same page when it comes to the message they want to send to investors this earnings season: they’re financially sound, even with the double whammy of the coronavirus and collapse in oil prices.
All of the oil-rich kingdom’s listed lenders used the same language -- word-for-word -- to highlight their strength and warn that it’s still too early “to determine the size and extent of the financial impact at this stage.”
The kingdom’s largest lender, National Commercial Bank, was the first to reassure investors on Tuesday that “its financial soundness indicators are strong and able to stand the current economic challenges.” It also said government initiatives to support the banking sector “will limit the economic and financial impact” of the measures taken to curtail the spread of the coronavirus.
By the time Arab National Bank posted the same statement to the stock market just one hour later, that message had been repeated ten times.
As society opens, #Saudi women surge into job market - Arabianbusiness
As society opens, Saudi women surge into job market - Arabianbusiness:
Like thousands of Saudi women, Rouaa al-Mousa entered the workforce as reforms sweep the ultra-conservative kingdom and is certain that neither grumbling male bosses nor the coronavirus will change that.
Armed with a college degree but bound by conservative Saudi attitudes to women working, the 25-year-old was expecting to wait years before finding a suitable job.
But Mousa graduated in the midst of changes in the kingdom that have seen women flood the labour market.
She got a job working the evening shift as a receptionist at a government institution in Riyadh -- part of a mixed team of 10 women and six men.
Like thousands of Saudi women, Rouaa al-Mousa entered the workforce as reforms sweep the ultra-conservative kingdom and is certain that neither grumbling male bosses nor the coronavirus will change that.
Armed with a college degree but bound by conservative Saudi attitudes to women working, the 25-year-old was expecting to wait years before finding a suitable job.
But Mousa graduated in the midst of changes in the kingdom that have seen women flood the labour market.
She got a job working the evening shift as a receptionist at a government institution in Riyadh -- part of a mixed team of 10 women and six men.
BRIEF-Moody's Says #Dubai's Economy And GRES Most Exposed Among Emirates To Coronavirus Impact - Reuters
BRIEF-Moody's Says Dubai's Economy And GRES Most Exposed Among Emirates To Coronavirus Impact - Reuters:
* MOODY’S SAYS DUBAI’S ECONOMY AND GRES MOST EXPOSED AMONG EMIRATES TO CORONAVIRUS IMPACT
* MOODY’S - CORONAVIRUS OUTBREAK AND PANDEMIC’S INDIRECT IMPACT ON GLOBAL GROWTH & TRADE POSE SIGNIFICANT SHOCK TO ECONOMIC GROWTH IN UNITED ARAB EMIRATES
* MOODY’S SAYS NEGATIVE GROWTH AND FISCAL IMPLICATIONS OF COVID-19 ARE MOST ACUTE IN DUBAI DUE TO ITS RELIANCE ON THE TOURISM AND TRANSPORTATION SECTORS
* MOODY’S SAYS CORONAVIRUS IS A MAJOR SHOCK FOR THE UAE’S OPEN ECONOMY, EXTENT OF WHICH WILL ONLY BE MARGINALLY SOFTENED BY STIMULUS MEASURES
* MOODY’S SAYS DUBAI’S GRE DEBT REMAINS MOST EXPOSED TO MACRO RISKS BECAUSE OF ITS HOLDINGS IN REAL ESTATE, TRANSPORTATION, TOURISM SECTORS
* MOODY’S SAYS DUBAI’S ECONOMY AND GRES MOST EXPOSED AMONG EMIRATES TO CORONAVIRUS IMPACT
* MOODY’S - CORONAVIRUS OUTBREAK AND PANDEMIC’S INDIRECT IMPACT ON GLOBAL GROWTH & TRADE POSE SIGNIFICANT SHOCK TO ECONOMIC GROWTH IN UNITED ARAB EMIRATES
* MOODY’S SAYS NEGATIVE GROWTH AND FISCAL IMPLICATIONS OF COVID-19 ARE MOST ACUTE IN DUBAI DUE TO ITS RELIANCE ON THE TOURISM AND TRANSPORTATION SECTORS
* MOODY’S SAYS CORONAVIRUS IS A MAJOR SHOCK FOR THE UAE’S OPEN ECONOMY, EXTENT OF WHICH WILL ONLY BE MARGINALLY SOFTENED BY STIMULUS MEASURES
* MOODY’S SAYS DUBAI’S GRE DEBT REMAINS MOST EXPOSED TO MACRO RISKS BECAUSE OF ITS HOLDINGS IN REAL ESTATE, TRANSPORTATION, TOURISM SECTORS
#UAE banks face write-downs of between 25%-50% on NMC debt - sources - Reuters
UAE banks face write-downs of between 25%-50% on NMC debt - sources - Reuters:
Banks in the United Arab Emirates (UAE) with exposure to troubled hospital operator NMC Health risk having to make provisions for between 25% to 50% on more than $2 billion of outstanding debt to the company, three banking sources said.
NMC, the largest private healthcare provider in the UAE, was placed into administration earlier in April after months of turmoil which followed questions about its financial reporting from short-seller Muddy Waters. NMC’s shares were suspended two months ago and on Monday the company requested the delisting of its shares from the London Stock Exchange.
Some UAE banks have classified their debt exposure to the company as “doubtful”, a UAE central bank document showed and one of the three sources familiar with the matter said.
Other banks in the UAE have higher recovery expectations for their exposure and may treat it as substandard, another source said.
Banks in the United Arab Emirates (UAE) with exposure to troubled hospital operator NMC Health risk having to make provisions for between 25% to 50% on more than $2 billion of outstanding debt to the company, three banking sources said.
NMC, the largest private healthcare provider in the UAE, was placed into administration earlier in April after months of turmoil which followed questions about its financial reporting from short-seller Muddy Waters. NMC’s shares were suspended two months ago and on Monday the company requested the delisting of its shares from the London Stock Exchange.
Some UAE banks have classified their debt exposure to the company as “doubtful”, a UAE central bank document showed and one of the three sources familiar with the matter said.
Other banks in the UAE have higher recovery expectations for their exposure and may treat it as substandard, another source said.
Oil fund’s forced sales send WTI prices plunging again: Kemp - Reuters
Oil fund’s forced sales send WTI prices plunging again: Kemp - Reuters:
Front-month U.S. light crude oil futures prices slumped almost 25% yesterday, the second sharp tumble in a week, after the exchange operator ordered a major commodity fund to sell some of its near-dated futures contracts.
United States Oil Fund (USO) announced to investors it would roll its current positions forward over three days between Monday and Wednesday after intervention by the Chicago Mercantile Exchange (CME).
USO positions were previously split between contracts for delivery in June (20%), July (40%), August (20%) and September (20%), after the fund had already been forced to shift them out of the front-month by recent volatility.
The fund is now shifting its positions even further forward, exiting the June contract altogether, and moving positions to July (30%), August (15%), September (15%), October (15%), December (15%) and June 2021 (10%).
Front-month U.S. light crude oil futures prices slumped almost 25% yesterday, the second sharp tumble in a week, after the exchange operator ordered a major commodity fund to sell some of its near-dated futures contracts.
United States Oil Fund (USO) announced to investors it would roll its current positions forward over three days between Monday and Wednesday after intervention by the Chicago Mercantile Exchange (CME).
USO positions were previously split between contracts for delivery in June (20%), July (40%), August (20%) and September (20%), after the fund had already been forced to shift them out of the front-month by recent volatility.
The fund is now shifting its positions even further forward, exiting the June contract altogether, and moving positions to July (30%), August (15%), September (15%), October (15%), December (15%) and June 2021 (10%).
Banks pitching for potential #SaudiArabia euro-denominated bonds - sources - Reuters
Banks pitching for potential Saudi Arabia euro-denominated bonds - sources - Reuters:
Saudi Arabia is likely to issue euro-denominated bonds this year and some banks have started pitching for the possible debt sale, two sources familiar with the matter said, as the kingdom plans to boost borrowing to offset a sharp drop in oil revenue.
The Saudi issuance is likely to be around June and about the same size as the country’s last euro bond issuance, one of the sources said. The desert kingdom raised 3 billion euros from its debut bonds denominated in euros last July.
A spokesman for the Saudi finance ministry did not immediately respond to a request for comment.
The Saudi government has already raised $12 billion in international bonds this year.
Saudi Arabia is likely to issue euro-denominated bonds this year and some banks have started pitching for the possible debt sale, two sources familiar with the matter said, as the kingdom plans to boost borrowing to offset a sharp drop in oil revenue.
The Saudi issuance is likely to be around June and about the same size as the country’s last euro bond issuance, one of the sources said. The desert kingdom raised 3 billion euros from its debut bonds denominated in euros last July.
A spokesman for the Saudi finance ministry did not immediately respond to a request for comment.
The Saudi government has already raised $12 billion in international bonds this year.
Brent rises on easing lockdowns, U.S. crude falls amid storage shortage - Reuters
Brent rises on easing lockdowns, U.S. crude falls amid storage shortage - Reuters:
Oil prices fell on Tuesday with U.S. crude leading the decline, falling about 3% as domestic stockpiles were expected to have risen closer to record highs amid tightening storage despite plans to cut production.
However, the markets were supported on hopes of demand recovering as across the world, governments announced the easing of restrictions, although Britain said its too dangerous to relax a lockdown for fear of a deadly second outbreak. At least 16 states in the United States looked set to restart business.
Global benchmark Brent crude LCOc1 fell 4 cents, or 0.2%, to $19.95 a barrel at 12:50 p.m. EDT (1450 GMT), following a 6.8% slide on Monday.
“While wild price swings are set to last in the very near term, we see more upside than downside from prices around $20 per barrel. The oil price should recover in the longer term,” said Norbert Rücker, analyst at Swiss bank Julius Baer.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 43 cents, or 3.4%, at $12.35 a barrel. The contract plunged 25% on Monday.
Oil prices fell on Tuesday with U.S. crude leading the decline, falling about 3% as domestic stockpiles were expected to have risen closer to record highs amid tightening storage despite plans to cut production.
However, the markets were supported on hopes of demand recovering as across the world, governments announced the easing of restrictions, although Britain said its too dangerous to relax a lockdown for fear of a deadly second outbreak. At least 16 states in the United States looked set to restart business.
Global benchmark Brent crude LCOc1 fell 4 cents, or 0.2%, to $19.95 a barrel at 12:50 p.m. EDT (1450 GMT), following a 6.8% slide on Monday.
“While wild price swings are set to last in the very near term, we see more upside than downside from prices around $20 per barrel. The oil price should recover in the longer term,” said Norbert Rücker, analyst at Swiss bank Julius Baer.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 43 cents, or 3.4%, at $12.35 a barrel. The contract plunged 25% on Monday.
MIDEAST STOCKS-Most Gulf markets rise, tracking oil, Asian shares - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most Gulf markets rise, tracking oil, Asian shares - Agricultural Commodities - Reuters:
Most stock markets in the Middle East
closed higher on Tuesday, buoyed by gains in Brent oil prices
and Asian, as optimism about the easing of coronavirus-related
restrictions reassured markets.
Brent crude rose 41 cents, or 2%, to $20.40 a barrel
at 1006 GMT, following a 6.8% slide on Monday.
Saudi Arabia's benchmark index gained 0.8%, with Al
Rajhi Bank rising and Saudi British Bank
gaining 5.3%.
But Petrorabigh dropped 2.5% after it posted a net
loss of 1.80 billion riyals ($478.85 million) in the first
quarter, doqn from profit of 257 million riyals a year earlier.
Saudi Arabia's King Salman issued an order allowing the
opening of some economic and commercial activities, which
includes wholesale and retail shops in addition to malls, from
April 29 to May 13, state news agency (SPA) reported on Sunday.
The order also limited the curfew across the kingdom to 9
a.m. to 5 p.m. until May 13, while keeping a 24-hour curfew in
Mecca and in previously isolated neighbourhoods.
Most stock markets in the Middle East
closed higher on Tuesday, buoyed by gains in Brent oil prices
and Asian, as optimism about the easing of coronavirus-related
restrictions reassured markets.
Brent crude rose 41 cents, or 2%, to $20.40 a barrel
at 1006 GMT, following a 6.8% slide on Monday.
Saudi Arabia's benchmark index gained 0.8%, with Al
Rajhi Bank rising and Saudi British Bank
gaining 5.3%.
But Petrorabigh dropped 2.5% after it posted a net
loss of 1.80 billion riyals ($478.85 million) in the first
quarter, doqn from profit of 257 million riyals a year earlier.
Saudi Arabia's King Salman issued an order allowing the
opening of some economic and commercial activities, which
includes wholesale and retail shops in addition to malls, from
April 29 to May 13, state news agency (SPA) reported on Sunday.
The order also limited the curfew across the kingdom to 9
a.m. to 5 p.m. until May 13, while keeping a 24-hour curfew in
Mecca and in previously isolated neighbourhoods.
Oil Plunges Again After Sudden Index Shift Prompts Fire Sale - Bloomberg
Oil Plunges Again After Sudden Index Shift Prompts Fire Sale - Bloomberg:
Crude whipsawed near $11 a barrel after a major index tracked by billions of dollars in funds bailed out of near-term contracts for fear prices may turn negative again.
June futures fell as much as 21% in New York before paring some of the decline to trade 8.8% lower. S&P Dow Jones said it will roll all of its West Texas Intermediate contracts for June into July on Tuesday, due to the risk that the nearer contract will go negative. Crude for July rose as much as 9% to $19.66.
The United States Oil Fund LP is also selling all of its WTI June contracts, while several other ETFs have said they will exit near-term contracts and buy later ones.
Crude whipsawed near $11 a barrel after a major index tracked by billions of dollars in funds bailed out of near-term contracts for fear prices may turn negative again.
June futures fell as much as 21% in New York before paring some of the decline to trade 8.8% lower. S&P Dow Jones said it will roll all of its West Texas Intermediate contracts for June into July on Tuesday, due to the risk that the nearer contract will go negative. Crude for July rose as much as 9% to $19.66.
The United States Oil Fund LP is also selling all of its WTI June contracts, while several other ETFs have said they will exit near-term contracts and buy later ones.
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#UAE News: #Dubai Likely to Open to Tourists in Early July video - Bloomberg
UAE News: Dubai Likely to Open to Tourists in Early July - Bloomberg:
Dubai hopes to reopen for tourists at the beginning of July, after halting most arrivals last month to contain the coronavirus pandemic.
Dubai hopes to reopen for tourists at the beginning of July, after halting most arrivals last month to contain the coronavirus pandemic.
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 moves mixed on easing lockdowns, looming storage shortage - Reuters
Oil moves mixed on easing lockdowns, looming storage shortage - Reuters:
Oil prices were mixed on Tuesday as optimism about the easing of coronavirus-related restrictions reassured markets, although traders remained cautious with storage capacities filling up fast and supply cuts not deep enough to counter falling demand.
Brent crude LCOc1 rose 41 cents, or 2%, to $20.40 a barrel at 1006 GMT, following a 6.8% slide on Monday.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 78 cents, or 6%, at $12.00 a barrel. The contract plunged 25% on Monday.
“While wild price swings are set to last in the very near term, we see more upside than downside from prices around $20 per barrel. The oil price should recover in the longer term,” said Norbert Rücker, analyst at Swiss bank Julius Baer.
Oil prices were mixed on Tuesday as optimism about the easing of coronavirus-related restrictions reassured markets, although traders remained cautious with storage capacities filling up fast and supply cuts not deep enough to counter falling demand.
Brent crude LCOc1 rose 41 cents, or 2%, to $20.40 a barrel at 1006 GMT, following a 6.8% slide on Monday.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 78 cents, or 6%, at $12.00 a barrel. The contract plunged 25% on Monday.
“While wild price swings are set to last in the very near term, we see more upside than downside from prices around $20 per barrel. The oil price should recover in the longer term,” said Norbert Rücker, analyst at Swiss bank Julius Baer.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
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.
MIDEAST STOCKS-Banks aid #Saudi index as FAB weighs on #AbuDhabi - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks aid Saudi index as FAB weighs on Abu Dhabi - Agricultural Commodities - Reuters:
Saudi Arabian stocks edged up on Tuesday, bolstered by banking, while weak earnings by top lender First Abu Dhabi Bank (FAB) weighed on Abu Dhabi.
Saudi Arabia’s benchmark index added 0.2% amid choppy trade, as Riyad Bank advanced 1.9% and Saudi British Bank was up 2.7%.
But oil giant Saudi Aramco retreated 0.5% amid concern about dwindling capacity to store crude worldwide.
Brent crude futures were down 5.8%, or $1.15, at $18.84 a barrel by 0751 GMT.
The Abu Dhabi index declined 1%, led by a 2.7% fall in First Abu Dhabi Bank (FAB).
The biggest lender in the United Arab Emirates reported a 22% drop in quarterly profit on Monday, hit by interest rate cuts and impairment charges.
Saudi Arabian stocks edged up on Tuesday, bolstered by banking, while weak earnings by top lender First Abu Dhabi Bank (FAB) weighed on Abu Dhabi.
Saudi Arabia’s benchmark index added 0.2% amid choppy trade, as Riyad Bank advanced 1.9% and Saudi British Bank was up 2.7%.
But oil giant Saudi Aramco retreated 0.5% amid concern about dwindling capacity to store crude worldwide.
Brent crude futures were down 5.8%, or $1.15, at $18.84 a barrel by 0751 GMT.
The Abu Dhabi index declined 1%, led by a 2.7% fall in First Abu Dhabi Bank (FAB).
The biggest lender in the United Arab Emirates reported a 22% drop in quarterly profit on Monday, hit by interest rate cuts and impairment charges.
Oil prices sink as world runs low on storage capacity amid frail demand - Reuters
Oil prices sink as world runs low on storage capacity amid frail demand - Reuters:
Oil prices slumped again on Tuesday amid concern about dwindling capacity to store crude worldwide, heightened by fears that fuel demand may be slow to pick up once countries ease curbs imposed on business and social life to combat the coronavirus pandemic.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell to as little as $10.64 a barrel on Tuesday, and were off 12.8%, or $1.64, at $11.14 a barrel as of 0635 GMT. WTI plunged 25% on Monday.
Brent crude LCOc1 futures fell to a low of $18.85 and were last down 4.3%, or 85 cents, at $19.14 a barrel. The benchmark slid 6.8% on Monday, and the contract for June delivery expires on April 30.
Strategists said part of the WTI decline is due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later in the year to avert massive losses like last week, when WTI plummeted below zero.
Oil prices slumped again on Tuesday amid concern about dwindling capacity to store crude worldwide, heightened by fears that fuel demand may be slow to pick up once countries ease curbs imposed on business and social life to combat the coronavirus pandemic.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell to as little as $10.64 a barrel on Tuesday, and were off 12.8%, or $1.64, at $11.14 a barrel as of 0635 GMT. WTI plunged 25% on Monday.
Brent crude LCOc1 futures fell to a low of $18.85 and were last down 4.3%, or 85 cents, at $19.14 a barrel. The benchmark slid 6.8% on Monday, and the contract for June delivery expires on April 30.
Strategists said part of the WTI decline is due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later in the year to avert massive losses like last week, when WTI plummeted below zero.