Oil Snaps 5-Day Rally With Supply Glut Eclipsing Demand Recovery - Bloomberg

Oil Snaps 5-Day Rally With Supply Glut Eclipsing Demand Recovery - Bloomberg:

Oil snapped a five-day rally as a persistent supply glut outweighed signs of recovering U.S. fuel demand.

Futures in New York fell 2.3% Wednesday, after doubling in value from a week ago. American gasoline consumption on a four-week basis rebounded at its strongest rate on record last week but remained far below the seasonal average, according to the Energy Information Administration. At the same time, crude stockpiles increased by 4.59 million barrels, and total petroleum inventories rose to the highest level ever, sustaining concerns about storage capacity.

“We will continue to have oversupply and slow demand for a while yet,” said Bart Melek, head of commodity strategy at Toronto Dominion Bank. “I don’t expect prices to go much higher above the current $23.50, and there is downside risk in the near-term.” In addition, an armada of oil tankers carrying Saudi oil to the U.S. could further test storage and force prices below $20 again, he said.

PRICES:
West Texas Intermediate fell 57 cents to settle at $23.99 a barrel in New York. Brent declined $1.25 to settle at $29.72 a barrel.

NMC Health collapse leaves battle lines drawn | Financial Times

NMC Health collapse leaves battle lines drawn | Financial Times:

BR Shetty set up healthcare provider NMC in 1975. It is now at the centre of one of the biggest scandals to engulf a FTSE 100 company © Bloomberg via Getty Images

For London’s financial centre, NMC Health had it all.

The Abu Dhabi-based hospital operator was an emerging market company with a seductive pitch to investors and a charismatic founder.

Entrepreneur BR Shetty, who set up NMC in 1975 after emigrating to the United Arab Emirates from his native India, hailed London’s “deep pool of capital” and “global profile” as the company prepared for its initial public offering in the UK capital in 2012.

Less than a decade later, NMC, the biggest private provider of healthcare in the UAE, is at the centre of one of the biggest scandals to engulf a FTSE 100 company. In a spectacular unravelling that began in December and accelerated in March, NMC discovered suspected fraud, disclosed more than $4bn of hidden debts and was forced into administration by its largest lender, Abu Dhabi Commercial Bank.

Alvarez & Marsal, the restructuring firm appointed as administrators, has sought to reassure staff that NMC’s hospitals and clinics will stay open to help battle the coronavirus that is now sweeping across the UAE.

Oil dives more than 5%, below $30 a barrel as glut grows - Reuters

Oil dives more than 5%, below $30 a barrel as glut grows - Reuters:

Oil dropped more than 5%, falling below $30 a barrel on Wednesday as U.S. crude inventories ticked up and gasoline demand remained below normal seasonal levels, offsetting hopes for a recovery in demand as some countries ease coronavirus lockdowns.

Base
Brent was down $1.90, or 6.2%, at $29.07 a barrel, reversing course after rising in the past six sessions. West Texas Intermediate (WTI) crude fell $1.30, or 5.4%, to $23.26.

Brent crude has almost doubled since hitting a 21-year low on April 22, supported by expectations demand will recover and by a record supply cut led by the Organization of the Petroleum Exporting Countries. Still, the benchmark and its U.S. counterpart remain weighed down by tepid demand and high volumes in storage.

U.S. crude stocks and distillate inventories rose while gasoline inventories fell, the Energy Information Administration said on Wednesday.

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.

MIDEAST DEBT-Gulf debt market shows signs of recovery as issuers line up - Reuters

MIDEAST DEBT-Gulf debt market shows signs of recovery as issuers line up - Reuters:

Several Gulf issuers, including Abu Dhabi state fund Mubadala and the Saudi-headquartered Arab Petroleum Investments Corp (APICORP), will likely issue bonds as soon as next week, sources said, signalling a revival in the region’s primary debt market.

Public international bond issuances screeched to a halt in late February, with activity only tentatively restarting early last month.

Investment-grade sovereigns Qatar, Abu Dhabi and Saudi Arabia have subsequently raised a combined $24 billion in bonds, though corporates and banks have remained cautious so far.

Two sources said Mubadala and APICORP could issue bonds as soon as next week.

#Qatar Airways to Boost Flights to Half its Network by End-June - Bloomberg

Qatar Airways to Boost Flights to Half its Network by End-June - Bloomberg:

Qatar Airways plans to boost flights to about half of its network by the end of June, as governments around the globe start easing travel restrictions following months of lockdown.

The state-owned airline aims to have 80 destinations by the end of June, according to the statement sent on Wednesday. Currently, the airline operates flights to more than 30 destinations around the world.

The gradual expansion will focus on connections between the airline’s hub in Doha and airports in London, Chicago, Dallas and Hong Kong, the company said. Qatar Airways’ plans, which assume inbound travel, are subject to coronavirus bans being lifted at these destinations.

Governments in Europe, the United Arab Emirates and Qatar have started taking steps to reopen their shuttered economies. Airlines have been particularly hit with the unprecedented near-total shutdown of travel with 70% of global carrier capacity idled. The industry could burn through $61 billion in the second quarter alone, according to the International Air Transport Association.

Saudis Gain Edge in Oil-Sales Contest by Whacking Prices - Bloomberg

Saudis Gain Edge in Oil-Sales Contest by Whacking Prices - Bloomberg:

The uneasy truce that settled over oil markets this month as some of the world’s largest producers began cutting output belies the raging competition among exporters seeking to preserve their share of a diminished market.

Saudi Arabia, the world’s biggest exporter, appears to be winning the fight for sales as it slashes prices for its crude. Producers globally are struggling to retain customers as the coronavirus destroys demand for fuel. After flooding the market in April, producers are now scaling back shipments as part of the deal by OPEC+ suppliers to soak up the glut in oil.

For evidence of where the Saudis have been winning, look no further than last month’s crude exports. Saudi Arabia was the only one of OPEC’s top four producers to boost sales to India in April, according to Bloomberg tanker tracking. The kingdom’s shipments to China doubled, and its exports to the U.S. reached 1 million barrels a day, the most since August 2018.

“The Saudis are doing very well,” said Ahmed Mehdi, a research associate at the Oxford Institute for Energy Studies, referring to the battle for buyers. “Aramco has been aggressive in protecting market share in Asia.”

MIDEAST STOCKS-Major Gulf indexes fall alongside subdued global equities - Reuters

MIDEAST STOCKS-Major Gulf indexes fall alongside subdued global equities - Reuters:

Major stock markets in the Gulf ended
lower on Wednesday as doubts about the easing of coronavirus
lockdowns and simmering U.S.-China tensions cast a shadow over
global equity markets.

U.S. President Donald Trump has kept up the pressure on
China, urging the country to be transparent about the origins of
the coronavirus, which began in the Chinese city of Wuhan late
last year.

Saudi Arabia's benchmark index dropped 0.8%, with
National Commercial Bank, the country's largest lender,
falling 2% and Al Rajhi Bank down 0.7%.

Moody's on Tuesday affirmed ratings of all Saudi Banks, but
changed outlooks to negative.

Clothing manufacturer Thob Al Aseel gained 3.3%
after signing a 97.5 million riyals ($25.97 million) contract
for medical supplies.

#Saudi Fund Offered $1.6 Billion for Ritz Hotel Amid Family Feud - Bloomberg

Saudi Fund Offered $1.6 Billion for Ritz Hotel Amid Family Feud - Bloomberg:

Ritz hotel on Piccadily in London on March 11. Photographer: Chris J. Ratcliffe/Bloomberg

Saudi Arabia investment fund Sidra Capital offered 1.3 billion pounds ($1.6 billion) for the luxurious Ritz Hotel in London before it was eventually sold for nearly half of that sum to a private Qatari investor.

The bid was revealed Wednesday during a court dispute between two sides of one of the U.K.’s wealthiest families, the Barclays. The hotel, which opened in London’s Mayfair in 1906, was sold for less than 800 million pounds in March.

Billionaire identical twins Frederick and David Barclay bought the hotel for 75 million pounds in 1995. The once inseparable pair, who also own the Telegraph newspaper, have since handed control of their businesses to their children, who are now locked in a bitter family feud being publicly fought in the courts.

Frederick Barclay and his daughter Amanda are suing four of their relatives after Frederick discovered that his nephew Alistair had recorded his conversations with Amanda in the conservatory of the hotel. The two had been talking about “potential acquisitions and disposals of business assets” as well as the structure and financing of the group.

Mideast Petro-States Look Past Oil’s Crash to Chase Solar Power - Bloomberg

Mideast Petro-States Look Past Oil’s Crash to Chase Solar Power - Bloomberg:

Some of the Middle East’s biggest oil producers are pushing into solar energy even amid the rout in crude prices.

Cheap crude used to deter investment in renewable energy in countries that depend on oil sales for revenue. Today, solar projects cost only about a 10th of what they did a decade ago, thanks to more affordable equipment and better technology, according to research by BloombergNEF.

The Middle East’s first forays into renewables faltered when oil prices dropped or official priorities shifted. Solar programs that Saudi Arabia and Abu Dhabi embarked on a decade or so ago would have required tens of billions of dollars and never got far off the ground. Since then, governments have found partners to help shoulder costs, and in spite of potential delays from the coronavirus, their solar ambitions are gaining traction.

“Solar power is the cheapest kilowatt-hour in the Middle East,” Benjamin Attia, an analyst for power and renewables at consultant Wood Mackenzie Ltd., said in a telephone interview from Boston. New projects in the region rely on private funding, rather than government spending, and are therefore “insulated from headwinds” of lower oil prices, he said.

#Dubai Hotel Mogul Says ‘Bleeding’ Firms Need Economy to Reopen - Bloomberg

Dubai Hotel Mogul Says ‘Bleeding’ Firms Need Economy to Reopen - Bloomberg:





Dubai hotel mogul Khalaf Al Habtoor said his companies are “bleeding” because of the coronavirus pandemic and the economy can’t wait for a vaccine to become available before major activity resumes.

The billionaire, who owns seven hotels in Dubai, including the Waldorf Astoria on the man-made island Palm Jumeirah, as well as car dealerships, residential properties and schools, said his group hasn’t yet cut jobs in the hope that global lockdowns would be rolled back by July, allowing tourists to return to the Middle East hub.

“Definitely we have to protect our people from the virus” but we have to go back to work, the Al Habtoor Group LLC chairman told Bloomberg TV in an interview. “We can’t wait for a vaccine until the end of the year,” he said, citing decisions to begin opening economies in parts of Europe.

 Moody’s Investors Service last month said Dubai’s reliance on real estate, transportation and tourism makes it the most exposed to the impact of coronavirus of the seven sheikhdoms that comprise the United Arab Emirates. Its flagship Emirates airline has grounded passenger flights and the Expo 2020 exhibition scheduled to start in October was delayed by a year

UPDATE 1- #Dubai developer Nakheel slashes salaries due to coronavirus crisis - Reuters

UPDATE 1-Dubai developer Nakheel slashes salaries due to coronavirus crisis - Reuters:

Dubai property developer Nakheel has slashed salaries by as much as 50% as it tries to weather the coronavirus crisis, according to an internal email seen by Reuters, and its chief executive resigned in March, a spokeswoman said.

Dubai has faced a slowdown in its property sector for most of the previous decade as the global financial crisis and weak oil prices left the regional business hub oversupplied with homes and offices.

“Due to the ongoing circumstances, we have reached the stage where it is time to implement some necessary measures to help us weather this storm, safeguard our staff and security continuing of our business,” state-owned Nakheel said in the email.

Top management and other senior executives were told that wages would be halved from April 1, while less senior employees have had their salaries cut by between 30% and 40%.

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.

Oil rises above $31 as lockdown easings counter supply glut - Reuters

Oil rises above $31 as lockdown easings counter supply glut - Reuters:

Oil rose above $31 a barrel on Wednesday as hopes for a recovery in demand as some countries ease coronavirus lockdowns offset a report showing a higher-than-expected rise in U.S. inventories.

Brent crude has almost doubled since hitting a 21-year low reached on April 22, supported by expectations demand will recover and by a record supply cut led by the Organization of the Petroleum Exporting Countries.

Brent LCOc1 was up 45 cents, or 1.5%, at $31.42 a barrel at 0830 GMT, having risen in the past six sessions. West Texas Intermediate (WTI) crude CLc1 added 27 cents, or 1.1%, to $24.83.

“Clearly, the optimism of the re-opening of the global economy has supported the oil rally,” said Naeem Aslam, analyst at Avatrade.

MIDEAST STOCKS- #Saudi rises as oil remains over $30; others trade mixed - Agricultural Commodities - Reuters

MIDEAST STOCKS-Saudi rises as oil remains over $30; others trade mixed - Agricultural Commodities - Reuters:

The Saudi Arabian stock market advanced on Wednesday, a day after Brent prices surged nearly 14%, while shares in the United Arab Emirates were subdued following losses in financial stocks.

On Tuesday, International benchmark Brent crude rose $3.77, or 13.9%, to settle at $30.97 a barrel, as countries began easing coronavirus lockdown measures.

The benchmark on Wednesday was up 0.1%, or 3 cents, at $31 a barrel by 0747 GMT.

Saudi Arabia’s benchmark index gained 1.3%, with petrochemical firm Saudi Basic Industries rising 2% and National Commercial Bank, the country’s largest lender, was up 1.3%.

Global stock markets buoyed as Brent crude tops $30 a barrel | Business | The Guardian

Global stock markets buoyed as Brent crude tops $30 a barrel | Business | The Guardian:

Oil prices have jumped more than 13% after reports that China’s stuttering recovery was beginning to make ground.

Stock markets also made gains, despite a decision by the German constitutional court that appeared to undermine efforts by the European Central Bank (ECB) to orchestrate a eurozone-wide stimulus plan. 


The price of Brent crude surged 13.05% to $30.75 a barrel on Tuesday, to continue a week-long increase from below $20.

Analysts said while the better news from China had improved the outlook for oil consumption, there was still a glut of oil on world markets and prices were likely to stay low for the rest of the year.