Oil prices settle lower, even as Saudi Arabia announces additional June output cut - MarketWatch:
West Texas Intermediate crude for June delivery CL.1, 2.49% CLM20, 2.49% on the New York Mercantile Exchange lost 60 cents, or 2.4%, to settle at $24.14 a barrel after touching an intraday low of $23.67. The front-month contract rose 25.1% last week, according to Dow Jones Market Data.
Global benchmark July Brent crude BRNN20, +1.85% saw a late change to its settlement on ICE Futures Europe on Monday, losing $1.34, or 4.3%, to settle at $29.63 a barrel. Brent last week logged a 17.1% weekly climb.
Monday, 11 May 2020
#SaudiArabia deepens oil cuts as weak demand weighs on prices - Reuters
Saudi Arabia deepens oil cuts as weak demand weighs on prices - Reuters:
Saudi Arabia will voluntarily deepen oil output cuts from June as low oil prices are causing huge pain to the kingdom’s budget and global demand remains weak due to lockdowns to contain the coronavirus pandemic.
The announcement by the kingdom to add 1 million barrels per day (bpd) - equal to 1% of global supply - to the previously announced cuts follows last week’s phone conversation between U.S. President Donald Trump and Saudi Arabia’s King Salman.
Trump had worked last month to persuade Saudi Arabia, fellow OPEC members and Russia - a group known as OPEC+ - to cut oil output after a collapse in crude prices put heavy pressure on U.S. producers.
Last Friday, the two men discussed oil and defence amid news Washington would withdraw two Patriot anti-missile batteries from Saudi Arabia that have been a defence against Iran. Washington said the withdrawal was not linked to oil.
Saudi Arabia will voluntarily deepen oil output cuts from June as low oil prices are causing huge pain to the kingdom’s budget and global demand remains weak due to lockdowns to contain the coronavirus pandemic.
The announcement by the kingdom to add 1 million barrels per day (bpd) - equal to 1% of global supply - to the previously announced cuts follows last week’s phone conversation between U.S. President Donald Trump and Saudi Arabia’s King Salman.
Trump had worked last month to persuade Saudi Arabia, fellow OPEC members and Russia - a group known as OPEC+ - to cut oil output after a collapse in crude prices put heavy pressure on U.S. producers.
Last Friday, the two men discussed oil and defence amid news Washington would withdraw two Patriot anti-missile batteries from Saudi Arabia that have been a defence against Iran. Washington said the withdrawal was not linked to oil.
#UAE will make additional oil output cut in June - energy minister - Reuters
UAE will make additional oil output cut in June - energy minister - Reuters:
The United Arab Emirates will cut its oil output by 100,000 barrels per day more in June than its commitments under the OPEC+ pact, its energy minister said on Monday, joining Saudi Arabia and Kuwait in announcing new crude supply reductions.
“In support of efforts led by the Kingdom of Saudi Arabia to further restore stability to energy markets, the UAE has committed to undertake an additional voluntary cut of 100,000 barrels per day in the month of June,” Suhail al-Mazrouei said in a statement.
The United Arab Emirates will cut its oil output by 100,000 barrels per day more in June than its commitments under the OPEC+ pact, its energy minister said on Monday, joining Saudi Arabia and Kuwait in announcing new crude supply reductions.
“In support of efforts led by the Kingdom of Saudi Arabia to further restore stability to energy markets, the UAE has committed to undertake an additional voluntary cut of 100,000 barrels per day in the month of June,” Suhail al-Mazrouei said in a statement.
UPDATE 1-Falcon Private Bank signals wind down with client transfer talks - Reuters
UPDATE 1-Falcon Private Bank signals wind down with client transfer talks - Reuters:
Falcon Private Bank signalled its winding down on Monday, as the Swiss wealth manager involved in Malaysia’s 1MDB scandal said it was in advanced talks to transfer clients to another Swiss bank and exit private banking activities.
“We have concluded that, especially in the current environment, the controlled cessation of Falcon’s banking activities is the best way to protect the interests of our stakeholders,” its Chairman Roberto Grassi said in a statement.
Last month, Reuters reported that the private bank owned by Abu Dhabi state fund Mubadala Investment Company was preparing to go out of business.
“The exit from private banking activities will be a controlled and orderly process and performed in a socially responsible manner in close cooperation with the shareholder,” Falcon said, without naming the party involved in talks.
Falcon Private Bank signalled its winding down on Monday, as the Swiss wealth manager involved in Malaysia’s 1MDB scandal said it was in advanced talks to transfer clients to another Swiss bank and exit private banking activities.
“We have concluded that, especially in the current environment, the controlled cessation of Falcon’s banking activities is the best way to protect the interests of our stakeholders,” its Chairman Roberto Grassi said in a statement.
Last month, Reuters reported that the private bank owned by Abu Dhabi state fund Mubadala Investment Company was preparing to go out of business.
“The exit from private banking activities will be a controlled and orderly process and performed in a socially responsible manner in close cooperation with the shareholder,” Falcon said, without naming the party involved in talks.
More countries likely to have credit ratings cut: S&P Global - Reuters
More countries likely to have credit ratings cut: S&P Global - Reuters:
Governments around the world are likely to face more credit rating cuts as the economic cost of the coronavirus continues to take its toll, S&P Global said on Monday.
S&P has reviewed 90 countries, over two-thirds of those it rates since early March, either downgrading or cutting the outlook in almost half of the cases.
It now has 25 countries on negative outlooks - effectively a downgrade warning - compared to just six on positive outlooks and 104 on stable outlooks.
“We think more negative rating actions are likely,” two of S&P’s senior analysts wrote in a new report, estimating that the average government deficit this year would be around 6.3%.
Governments around the world are likely to face more credit rating cuts as the economic cost of the coronavirus continues to take its toll, S&P Global said on Monday.
S&P has reviewed 90 countries, over two-thirds of those it rates since early March, either downgrading or cutting the outlook in almost half of the cases.
It now has 25 countries on negative outlooks - effectively a downgrade warning - compared to just six on positive outlooks and 104 on stable outlooks.
“We think more negative rating actions are likely,” two of S&P’s senior analysts wrote in a new report, estimating that the average government deficit this year would be around 6.3%.
Oil falls on fears of coronavirus second wave - Reuters
Oil falls on fears of coronavirus second wave - Reuters:
Oil prices fell on Monday as a new wave of coronavirus infections in some countries and concern over a persistent glut cancelled out support from supply cuts by the world’s biggest producers.
Brent crude LCOc1 was down 74 cents, or 2.4%, at $30.23 a barrel by 1012 GMT, while U.S. West Texas Intermediate crude CLc1 fell 55 cents, or 2.2%, to $24.19.
Possible signs of a second wave of infections worried investors as Wuhan, the epicentre of the coronavirus outbreak in China, on Monday reported its first cluster of infections since the city’s lockdown was lifted a month ago.
New coronavirus infections are accelerating in Germany only days after it loosened social restrictions, raising concerns that the pandemic could again slip out of control. South Korea also warned of a second wave of the virus on Sunday.
Oil prices fell on Monday as a new wave of coronavirus infections in some countries and concern over a persistent glut cancelled out support from supply cuts by the world’s biggest producers.
Brent crude LCOc1 was down 74 cents, or 2.4%, at $30.23 a barrel by 1012 GMT, while U.S. West Texas Intermediate crude CLc1 fell 55 cents, or 2.2%, to $24.19.
Possible signs of a second wave of infections worried investors as Wuhan, the epicentre of the coronavirus outbreak in China, on Monday reported its first cluster of infections since the city’s lockdown was lifted a month ago.
New coronavirus infections are accelerating in Germany only days after it loosened social restrictions, raising concerns that the pandemic could again slip out of control. South Korea also warned of a second wave of the virus on Sunday.
Big Oil Earnings Battered By Virus, But Worst is Yet to Come - Bloomberg
Big Oil Earnings Battered By Virus, But Worst is Yet to Come - Bloomberg:
Big Oil emerged from first-quarter earnings battered and bruised, but things are only going to get uglier.
Major oil and gas producers from Norway to the U.S. saw profit plunge in the opening three months of the year. Exxon Mobil Corp. reported its first loss in over 30 years, Royal Dutch Shell Plc cut its dividend for the first time since the Second World War.
And that was only the result of the initial spread of the coronavirus. Things have got even worse since as a global pandemic caused an unprecedented oil-market slump. There are some signs of recovery on the horizon, but companies were united in their warnings that the current quarter will be tougher than the first.
A few key takeaways show which companies can endure another three months of pain, and those that will struggle:
Big Oil emerged from first-quarter earnings battered and bruised, but things are only going to get uglier.
Major oil and gas producers from Norway to the U.S. saw profit plunge in the opening three months of the year. Exxon Mobil Corp. reported its first loss in over 30 years, Royal Dutch Shell Plc cut its dividend for the first time since the Second World War.
And that was only the result of the initial spread of the coronavirus. Things have got even worse since as a global pandemic caused an unprecedented oil-market slump. There are some signs of recovery on the horizon, but companies were united in their warnings that the current quarter will be tougher than the first.
A few key takeaways show which companies can endure another three months of pain, and those that will struggle:
#UAE News: #AbuDhabi Mysterious 2,572% Stock Rally Has Traders Scratching Their Heads - Bloomberg
UAE News: Abu Dhabi International Holdings Co. Shares Surge - Bloomberg:
An Abu Dhabi-based investment holding is leaving traders and investors scratching their heads after a 2,574% surge in its stock in the past 12 months with very low trading volumes.
International Holdings Co. PJSC, which had most of its revenue in 2019 coming from fish farming in the United Arab Emirates, has reached a market value as high as $14 billion, up from about $139 million a year ago. The steep rally in its shares hasn’t been dented by this year’s global equity market meltdown sparked by the coronavirus pandemic, or the collapse in oil prices which roiled Middle-Eastern markets. The company’s shares are up 313% in 2020.
The uninterrupted surge has made it the best performing stock worldwide in the past 12 months among companies worth $1 billion or more, and IHC is now the fifth-biggest listed group in the U.A.E. by market value, after Emirates Telecom Group Co., First Abu Dhabi Bank PJSC, Emirates NBD PJSC and DP World Plc.
The stellar rise in the shares is not easy to explain: At the end of last year, the company had total assets of only about $1.1 billion, with net profit for the year at $138 million, according to its annual report. It has been on a buying spree since the start of 2019, although none of the acquisitions had big price tags. PAL Cooling Holding LLC features among its biggest purchases, after IHC issued new shares worth about $357 million to pay for the company.
An Abu Dhabi-based investment holding is leaving traders and investors scratching their heads after a 2,574% surge in its stock in the past 12 months with very low trading volumes.
International Holdings Co. PJSC, which had most of its revenue in 2019 coming from fish farming in the United Arab Emirates, has reached a market value as high as $14 billion, up from about $139 million a year ago. The steep rally in its shares hasn’t been dented by this year’s global equity market meltdown sparked by the coronavirus pandemic, or the collapse in oil prices which roiled Middle-Eastern markets. The company’s shares are up 313% in 2020.
The uninterrupted surge has made it the best performing stock worldwide in the past 12 months among companies worth $1 billion or more, and IHC is now the fifth-biggest listed group in the U.A.E. by market value, after Emirates Telecom Group Co., First Abu Dhabi Bank PJSC, Emirates NBD PJSC and DP World Plc.
The stellar rise in the shares is not easy to explain: At the end of last year, the company had total assets of only about $1.1 billion, with net profit for the year at $138 million, according to its annual report. It has been on a buying spree since the start of 2019, although none of the acquisitions had big price tags. PAL Cooling Holding LLC features among its biggest purchases, after IHC issued new shares worth about $357 million to pay for the company.
Mubadala hires banks for three-tranche bond issue -sources - Reuters
Mubadala hires banks for three-tranche bond issue -sources - Reuters:
Abu Dhabi state fund Mubadala has hired banks for a potential three-tranche bond issue consisting of six and 10-year conventional bonds and 30-year dual-listed Formosa bonds, sources said on Monday.
Mubadala hired Banca IMI, BNP Paribas, BofA Securities, First Abu Dhabi Bank, HSBC, Natixis and Societe Generale to arrange investor calls on Monday, to be followed by the issuance, subject to market conditions.
Sources told Reuters last week that Mubadala could issue bonds as soon as this week.
Abu Dhabi state fund Mubadala has hired banks for a potential three-tranche bond issue consisting of six and 10-year conventional bonds and 30-year dual-listed Formosa bonds, sources said on Monday.
Mubadala hired Banca IMI, BNP Paribas, BofA Securities, First Abu Dhabi Bank, HSBC, Natixis and Societe Generale to arrange investor calls on Monday, to be followed by the issuance, subject to market conditions.
Sources told Reuters last week that Mubadala could issue bonds as soon as this week.
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- #Saudi leads Gulf lower after govt. triples VAT rate - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi leads Gulf lower after govt. triples VAT rate - Agricultural Commodities - Reuters:
Gulf stock markets lost ground in early trade on Monday, with Saudi Arabia’s index falling the most after the kingdom said it will triple its value-added tax rate and suspend a cost of living allowance for state employees to shore up its finances.
The austerity measures are being introduced as the world’s largest oil exporter suffers from slumping oil prices, while at the same time fighting the new coronavirus outbreak.
Oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.
Saudi Arabia’s benchmark index declined 2.8%, dragged down by a 3.2% drop in Al Rajhi Bank and a 1.9% fall in oil giant Saudi Aramco.
Gulf stock markets lost ground in early trade on Monday, with Saudi Arabia’s index falling the most after the kingdom said it will triple its value-added tax rate and suspend a cost of living allowance for state employees to shore up its finances.
The austerity measures are being introduced as the world’s largest oil exporter suffers from slumping oil prices, while at the same time fighting the new coronavirus outbreak.
Oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.
Saudi Arabia’s benchmark index declined 2.8%, dragged down by a 3.2% drop in Al Rajhi Bank and a 1.9% fall in oil giant Saudi Aramco.
Oil prices fall on supply glut, fears of second virus wave - Reuters
Oil prices fall on supply glut, fears of second virus wave - Reuters:
Oil prices slipped more than 1% on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic cancelled out support from supply cuts at some of the world’s top producers.
Brent crude futures LCOc1 were down 51 cents, or 1.7%, at $30.46 a barrel by 0624 GMT, while U.S. West Texas Intermediate crude futures CLc1 fell 49 cents, or 2.0%, to $24.25 a barrel.
Both benchmarks have notched up gains over the past two weeks as countries have eased business and social lockdowns imposed to cope with the coronavirus and fuel demand has rebounded modestly. Oil production worldwide is also declining.
But possible signs of a second wave of coronavirus infections in northeast China and South Korea worried investors even as more countries started to pivot towards easing pandemic restrictions in moves that could support oil demand.
Oil prices slipped more than 1% on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic cancelled out support from supply cuts at some of the world’s top producers.
Brent crude futures LCOc1 were down 51 cents, or 1.7%, at $30.46 a barrel by 0624 GMT, while U.S. West Texas Intermediate crude futures CLc1 fell 49 cents, or 2.0%, to $24.25 a barrel.
Both benchmarks have notched up gains over the past two weeks as countries have eased business and social lockdowns imposed to cope with the coronavirus and fuel demand has rebounded modestly. Oil production worldwide is also declining.
But possible signs of a second wave of coronavirus infections in northeast China and South Korea worried investors even as more countries started to pivot towards easing pandemic restrictions in moves that could support oil demand.
Pushed into austerity by virus and oil slump, #Saudi triples VAT rate - Reuters
Pushed into austerity by virus and oil slump, Saudi triples VAT rate - Reuters:
Saudi Arabia will triple its value added tax rate and suspend a cost of living allowance for state employees, the kingdom’s finance minister said on Monday, seeking to shore up finances hit hard by low oil prices and a coronavirus-driven slowdown.
“The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1,” Finance Minister Mohammed al-Jadaan said in the statement reported by the state news agency.
“These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible.”
In 2018, Saudi Arabia’s King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them the rising cost of living after the government hiked domestic gas prices and introduced value-added tax.
Saudi Arabia will triple its value added tax rate and suspend a cost of living allowance for state employees, the kingdom’s finance minister said on Monday, seeking to shore up finances hit hard by low oil prices and a coronavirus-driven slowdown.
“The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1,” Finance Minister Mohammed al-Jadaan said in the statement reported by the state news agency.
“These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible.”
In 2018, Saudi Arabia’s King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them the rising cost of living after the government hiked domestic gas prices and introduced value-added tax.
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