Oil Prices for May 19, 2020 - Bloomberg

Oil Prices for May 19, 2020 - Bloomberg:

Oil gained in a day of choppy trading as investors weighed supply cuts and a demand rebound against an ominous economic outlook from the Federal Reserve.

West Texas Intermediate crude for July delivery rose 1%. Output cuts by the world’s largest producers are whittling down a supply glut while oil consumption is recovering as economies around the globe emerge from lockdowns. Citigroup Inc. said the oil surplus weighing on the market in the second quarter is expected to turn into a record deficit in the third.

“The demand side has come off the low, the supply side is still falling,” said Peter McNally, global lead for industrials, materials and energy at Third Bridge. “That has led to this bounce back in the prices.”

But investors were disheartened by bearish remarks from Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin on Tuesday. The head of the central bank told a Senate committee that Americans could start losing their homes and warned that long-term unemployment can damage the economy.

Aramco Is First Oil Major to Regain Pre-Price-War Stock Level - Bloomberg

Aramco Is First Oil Major to Regain Pre-Price-War Stock Level - Bloomberg:

Saudi Aramco is the first major global oil producer to see its stock recover to the level it traded at before the price war between Russia and Saudi Arabia.

Aramco climbed 3.1% in Riyadh on Tuesday, advancing for a record sixth day alongside an extended increase in the price of crude. The stock has gained each session since the company announced it would retain dividend payouts, despite a drop in first-quarter profit.

Aramco’s recovery has been achieved on much smaller share volumes than its international counterparts, with less than 2% of the Saudi company’s stock available for trading. An average of about $35 million worth of Aramco shares changed hands each session last week, rising to $100 million on Monday. That compares with yesterday’s Exxon Mobil Corp. share turnover of $1.4 billion.

Much of Aramco’s stock sold during its initial public offering in December went to locals, who stand to receive bonus shares if they maintain their holdings for six months. The shares are now 20% higher than this year’s lowest close on March 16.

UPDATE 3- #AbuDhabi sells $3 billion in bonds with April re-opening - Reuters

UPDATE 3-Abu Dhabi sells $3 billion in bonds with April re-opening - Reuters:

Abu Dhabi sold $3 billion in bonds on Tuesday with a tap of dollar bonds issued last month, a document showed, as governments in the Gulf seek extra cash amid the coronavirus pandemic and a slump in oil prices.

Oil-rich Abu Dhabi issued in April $7 billion in bonds due in 2025, 2030 and 2050, just after a jumbo $10 billion bond sale by Qatar.

Considered among the best credits in the region, Abu Dhabi, the capital of the United Arab Emirates, received around $45 billion in orders for the April deal.

It has now gone back to the markets with a bond tap, where an existing transaction is reopened for subscription using the same documentation as before. It is set to raise $3 billion more, according to a document issued by one of the banks leading the deal and seen by Reuters.

Etihad Airways announces job losses 'across several areas' - Arabianbusiness

Etihad Airways announces job losses 'across several areas' - Arabianbusiness:

Etihad Airways has confirmed that it has been forced to make redundancies as a result of the economic crisis caused by the Covid-19 pandemic.

A statement from the Abu Dhabi-based carrier confirmed that jobs had been lost, although there were no specific numbers announced.

A spokesperson said: “We are incredibly proud of our world-class workforce, however, we have had to make redundancies across several areas of our business to reflect current market conditions.”

MIDEAST STOCKS-Markets lifted by global rally and oil prices - Reuters

MIDEAST STOCKS-Markets lifted by global rally and oil prices - Reuters:

Major Middle East stock markets closed higher on Tuesday,
tracking a rise in global equities and a recovery in oil prices, with Saudi
Arabia leading gains on the back of oil giant Saudi Aramco.

Global equity markets surged on Monday and Asian shares extended gains on
Tuesday after data on Moderna Inc's COVID-19 vaccine, the first to be
tested in the United States, showed it produced protective antibodies in a small
group of healthy volunteers.

Oil prices rose for a fourth straight session on Tuesday, supported by signs
of output cuts and demand recovery as coronavirus restrictions are eased.

"Global sentiment is leading the rise in local markets supported by
recovering oil prices," said Marie Salem, head of institutions at Daman
Securities.

Swift OPEC+ Cuts Revive Premiums in Asia Physical Oil Market - Bloomberg

Swift OPEC+ Cuts Revive Premiums in Asia Physical Oil Market - Bloomberg:

Swift and bold output cuts by OPEC and its allies are boosting prices of physical oil barrels in Asia as supply tightens.

Premiums for a wide-ranging variety of crude from Russia’s ESPO, Abu Dhabi’s Upper Zakum and Qatar’s Al-Shaheen have increased significantly in the Asian spot market since OPEC+ started reducing output this month in-line with its pledge to cut almost 10 million barrels a day. Supplies of more sulfurous oil from the Middle East that are favored by a majority of Asian refiners should begin to tighten due to the production curbs.

Demand is recovering in major oil consumers China and India, led by a rebound in gasoline and diesel consumption. Chinese refiners are seeing profits from turning crude into fuels, even as processors across much of the region including Singapore face negative margins. In spite of that, buyers are continuing to scramble for cargoes after Saudi Arabia, Kuwait and the U.A.E. said they would reduce contractual supplies from June as they press ahead with planned curbs to support a market rebalancing.

NMC founder owes over $250 mln to Bank of Baroda-court document - Reuters

NMC founder owes over $250 mln to Bank of Baroda-court document - Reuters:

Bank of Baroda is seeking to recover loans worth more than $250 million from NMC founder BR Shetty and his companies and an Indian court has barred him and his wife from selling or transferring some properties while it hears the case, a court document showed.

The 16 properties in several Indian cities including Bengaluru were among guarantees put up by Shetty and his wife against the 19.13 billion rupees ($253 million) loans, according to a May 16 court order seen by Reuters. The court in Bengalaru set the next hearing in the case for June 8.

NMC, the largest private healthcare provider in the United Arab Emirates, was placed under administration in April after months of turmoil. It disclosed in March it had debts of $6.6 billion, well above earlier estimates of $2.1 billion.

Finablr, in which Shetty has a controlling stake, said in April it may have nearly $1 billion more in debt than previously reported.

#AbuDhabi Offers More Bonds as Borrowers Stockpile Cash - Bloomberg

Abu Dhabi Offers More Bonds as Borrowers Stockpile Cash - Bloomberg:

Abu Dhabi is seeking to raise more money from international debt markets just weeks after a $7 billion bond sale as it takes advantage of a drop in borrowing costs to bolster its finances.

The emirate is marketing a tap of its three-tranche deal priced in April, according to people familiar with the matter who asked not to be identified because the matter is private. The yields on those bonds, which garnered about $45 billion in orders last month, declined on Monday to all-time lows as optimism that the worst of the oil crisis triggered by the coronavirus pandemic is over offered relief for energy-related borrowers.

“For Abu Dhabi, pricing was never an issue, they are a solid credit with good sponsorship,” said Angad Rajpal, the head of fixed income at Emirates NBD Asset Management in Dubai. “It will receive good interest and it is a smart call to tap and further shore up their buffers than to draw down on the reserves.”

The yields that are initially on offer are about 30 basis points to 35 basis points higher than Abu Dhabi’s existing debt, Rajpal said. “I would expect levels to tighten and price not too far from the original notes,” he said.

Billionaire #Saudi banking tycoon dead at 79, family says

Billionaire Saudi banking tycoon dead at 79, family says:

 In this Aug. 10, 2006 file photo, Turkish Prime Minister Recep Tayyip Erdogan, left, and King Abdullah of Saudi Arabia, right, applaud after Islamic Chamber of Commerce and Industry President Sheikh Saleh Abdullah Kamel, center, made a speech during a meeting at the Ottoman era Ciragan Palace in Istanbul, Turkey. Billionaire Saudi businessman Saleh Abdullah Kamel, who founded the banking and real estate conglomerate Dallah Albaraka Group, has died at the age of 79. His business empire grew in the late 1960′s, at the same time that the kingdom was using its oil wealth to rapidly develop and in need of homegrown companies to build roads, highways and cities. (AP Photo/Murad Sezer, File)

Billionaire Saudi businessman Saleh Abdullah Kamel, who founded the banking and real estate conglomerate Dallah Albaraka Group, has died, according to relatives quoted in the kingdom’s media. He was 79.

People close to Kamel told The Associated Press he died at the Dr. Samir Abbas Hospital in the city of Jiddah, where he was taken after suffering a heart attack early on Tuesday.

Kamel’s business empire grew from its humble beginnings in the late 1960′s — at the same time that the kingdom was using its oil wealth to rapidly develop and in need of homegrown companies to build roads, highways and cities.

Over the years, the business expanded to tens of thousands of employees and today includes subsidiaries and stakes in a range of businesses, such as the operation and maintenance of airports and roads, tourism, trade, trucking and transportation, telecommunications, media, agriculture, poultry and health care.

European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar

European, Middle Eastern & African Stocks - Bloomberg:

Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.

#AbuDhabi's Etihad cuts hundreds of jobs: sources - Reuters

Abu Dhabi's Etihad cuts hundreds of jobs: sources - Reuters:

Abu Dhabi’s Etihad Airways has laid off hundreds of employees this month, including cabin crew, after the coronavirus pandemic forced it to ground flights, according to industry and company sources.

The state-owned airline, which had 20,530 employees as of August 2019, grounded passenger flights in March and a month later said it had made a large number of staff redundant.

Two sources said hundreds of staff had been laid off this month with employees being let go on an almost daily basis.

More job cuts were expected, they said.

An Etihad spokeswoman told Reuters there had been redundancies across several areas of the airline.

Oil gains on signs of output cuts, improved demand - Reuters

Oil gains on signs of output cuts, improved demand - Reuters:

Oil prices rose slightly on Tuesday amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic.

Benchmark Brent crude climbed 7 cents, or 0.2%, to $34.88 a barrel by 0907 GMT, after earlier touching its highest since April 9.

U.S. West Texas Intermediate crude was up 70 cents, or 2.2%, at $32.52 a barrel.

“The market sees both forces aligning: the cuts OPEC+ promised are materialising and other non-member production shut-downs are also really helping to limit the oversupply,” said Paola Rodriguez Masiu, senior oil markets analyst at Rystad Energy.

Sovereign wealth funds fly to relative safety of U.S. assets amid pandemic - Reuters

Sovereign wealth funds fly to relative safety of U.S. assets amid pandemic - Reuters:

Sovereign wealth funds flocked to U.S. equities and bonds in the first quarter at the expense of riskier investments such as those in emerging markets as the coronavirus spread around the world, data shows. 

U.S. equity strategies managed by third-party fund managers sucked in net flows of $5.36 billion from sovereign funds in the first quarter, with the majority headed to passive S&P 500 equity strategies which posted their largest inflows in at least three years, according to data from eVestment.

U.S. fixed income was also in demand, with net inflows of $341.1 million also the most in at least three years.

eVestment’s senior research analyst Mike Cho noted the inflows were particularly strong for those investing in lower-risk fixed-income assets. In general, sovereign funds were net contributors of capital to long-only strategies during the period, Cho said.