Cleared former Barclays head to give evidence in London Qatar trial - The National:
Barclays Bank’s former chief executive is set to give evidence in a £1.6 billion (Dh7.15bn) legal battle over “secret” payments to Qatar – a year after he was cleared of any criminal wrongdoing connected to the 2008 deal.
John Varley, who led Barclays from 2004 to 2010, is due to appear as a witness on behalf of the bank in a legal claim brought by financier Amanda Staveley.
Ms Staveley’s PCP Capital Partners says the bank lied to other Gulf investors about larger commission payments to Qatar for investments during the 2008 financial crisis that staved off a government takeover.
Barclays is defending the claim, saying Qatar was not given secret commissions but was paid extra for providing introductions and other business services.
Sunday, 24 May 2020
Oil’s Sudden Rebound Is Exposing the Achilles’ Heel of Shale - Bloomberg
Crude Oil, Shale News: Latest Analysis Amid Price War - Bloomberg:
Oil prices have surged more than 75% in the U.S. this month. But don’t expect a quick rebound in supply from shale explorers.
The quick turnaround in oil markets is exposing the shale industry’s big weak spot: Lightning-fast production declines. Shale gushers turn to trickles so quickly that explorers must constantly drill new locations to sustain output.
And they haven’t been doing that. Drilling activity touched an all-time U.S. low after Covid-19 lockdowns crushed global energy demand and explorers slashed spending to survive a crash that has erased tens of thousands of jobs and pushed some companies into bankruptcy.
It’s a phenomenon that’s ultimately attributable to the very geology of shale. Just like a shaken bottle of champagne explodes when its cork is popped, a fracked shale-oil well erupts with an initial burst of supply. The froth is short-lived, however, unlike old-fashioned wells in conventional rocks that are characterized by steadier long-term production rates. To offset the decline curve, shale explorers used to keep drilling. And drilling. And drilling.
Oil prices have surged more than 75% in the U.S. this month. But don’t expect a quick rebound in supply from shale explorers.
The quick turnaround in oil markets is exposing the shale industry’s big weak spot: Lightning-fast production declines. Shale gushers turn to trickles so quickly that explorers must constantly drill new locations to sustain output.
And they haven’t been doing that. Drilling activity touched an all-time U.S. low after Covid-19 lockdowns crushed global energy demand and explorers slashed spending to survive a crash that has erased tens of thousands of jobs and pushed some companies into bankruptcy.
It’s a phenomenon that’s ultimately attributable to the very geology of shale. Just like a shaken bottle of champagne explodes when its cork is popped, a fracked shale-oil well erupts with an initial burst of supply. The froth is short-lived, however, unlike old-fashioned wells in conventional rocks that are characterized by steadier long-term production rates. To offset the decline curve, shale explorers used to keep drilling. And drilling. And drilling.
#SaudiArabia to invest in Iraq's Akkas gas field | ZAWYA MENA Edition
Saudi Arabia to invest in Iraq's Akkas gas field | ZAWYA MENA Edition:
Iraq and Saudi Arabia agreed on Saturday to continue working to re-balance markets and stressed their commitment to output cuts agreed by the Organization of the Petroleum Exporting Countries, Russia and other allies, Saudi state news agency SPA said.
The comments came after Iraq's Finance Minister Ali Allawi, who is acting oil minister, visited Saudi Arabia to discuss the oil market with the Saudi energy minister, SPA said.
Both sides said they were satisfied with improving oil market conditions, the agency added.
Saudi news channel Al Arabiya reported that Iraq had agreed to allow Saudi companies to invest in its western Akkas gas field.
Iraq and Saudi Arabia agreed on Saturday to continue working to re-balance markets and stressed their commitment to output cuts agreed by the Organization of the Petroleum Exporting Countries, Russia and other allies, Saudi state news agency SPA said.
The comments came after Iraq's Finance Minister Ali Allawi, who is acting oil minister, visited Saudi Arabia to discuss the oil market with the Saudi energy minister, SPA said.
Both sides said they were satisfied with improving oil market conditions, the agency added.
Saudi news channel Al Arabiya reported that Iraq had agreed to allow Saudi companies to invest in its western Akkas gas field.
#Saudi economy is solid, has the ability to deal with budget deficit and revenues decline - Minister - Reuters
Saudi economy is solid, has the ability to deal with budget deficit and revenues decline - Minister - Reuters:
Saudi Arabia’s finance minister Mohammed al Jadaan said on Sunday that the kingdom’s economy is solid and has the ability to deal with the coronavirus crisis despite the need to cut spending.
“The Saudi economy is able to absorb the decline in revenues and to deal with budget deficit,” he said in a statement published by the state news agency.
The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman.
Saudi Arabia’s finance minister Mohammed al Jadaan said on Sunday that the kingdom’s economy is solid and has the ability to deal with the coronavirus crisis despite the need to cut spending.
“The Saudi economy is able to absorb the decline in revenues and to deal with budget deficit,” he said in a statement published by the state news agency.
The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman.
Damac chairman expects Covid-19 to impact property prices and demand - Arabianbusiness
Damac chairman expects Covid-19 to impact property prices and demand - Arabianbusiness:
Chairman of Dubai-based developer Damac Properties Hussain Sajwani believes the current coronavirus pandemic will impact prices and demand for property.
It comes as the company reported a net loss of AED120 million ($32.7m) for the first quarter of 2020, compared to a AED31m ($8.4m) profit for the same period last year, which has been attributed to “non-cash items”.
Sajwani said profits were hit by the provision for impairment on development properties amounting to AED130m ($35.4m), provision for impairment on trade receivables (AED53m - $14.4m) and “loss on fair value” of financial investment (AED14m - $3.8m) “due to prevalent market conditions”.
He has also warned of the inevitable impact of coronavirus on future results. “We have assessed the potential impacts of the outbreak on our operations due to the restrictions placed by various governments to curb the spread of Covid-19. This will likely impact the prices and demand of properties, expected credit loss from trade receivables and contract assets and the fair valuation of financial investment.”
 |
| Damac chairman Hussain Sajwani said profits were hit by non-cash items. |
Chairman of Dubai-based developer Damac Properties Hussain Sajwani believes the current coronavirus pandemic will impact prices and demand for property.
It comes as the company reported a net loss of AED120 million ($32.7m) for the first quarter of 2020, compared to a AED31m ($8.4m) profit for the same period last year, which has been attributed to “non-cash items”.
Sajwani said profits were hit by the provision for impairment on development properties amounting to AED130m ($35.4m), provision for impairment on trade receivables (AED53m - $14.4m) and “loss on fair value” of financial investment (AED14m - $3.8m) “due to prevalent market conditions”.
He has also warned of the inevitable impact of coronavirus on future results. “We have assessed the potential impacts of the outbreak on our operations due to the restrictions placed by various governments to curb the spread of Covid-19. This will likely impact the prices and demand of properties, expected credit loss from trade receivables and contract assets and the fair valuation of financial investment.”
Peak Fossil Fuels Is Next Big Test for Russia’s Battered Economy - Bloomberg
Peak Fossil Fuels Is Next Big Test for Russia’s Battered Economy - Bloomberg:
The economy of the world’s biggest energy exporter is heading for its deepest slump in more than 10 years due to the fallout from the coronavirus. A bigger crisis may be just around the corner.
Analysts at the Kremlin-funded Skolkovo Energy Center warned this month that the nation faces years of economic stagnation as demand for its carbon-heavy exports gradually drops. If Russia doesn’t adapt, budget receipts will “decline drastically” and growth may be limited to less than 0.8% a year for the next two decades, less than a third of what the Economy Ministry is targeting.
President Vladimir Putin has relied on high oil prices as a backstop for economic growth -- and his own popularity ratings -- for most of his two decades at Russia’s helm. Now forecasters expect that the coronavirus recession will accelerate the decline in global fossil fuel use, with some even predicting that the peak was in 2019, about 15 years earlier than the Kremlin was expecting.
The economy of the world’s biggest energy exporter is heading for its deepest slump in more than 10 years due to the fallout from the coronavirus. A bigger crisis may be just around the corner.
Analysts at the Kremlin-funded Skolkovo Energy Center warned this month that the nation faces years of economic stagnation as demand for its carbon-heavy exports gradually drops. If Russia doesn’t adapt, budget receipts will “decline drastically” and growth may be limited to less than 0.8% a year for the next two decades, less than a third of what the Economy Ministry is targeting.
President Vladimir Putin has relied on high oil prices as a backstop for economic growth -- and his own popularity ratings -- for most of his two decades at Russia’s helm. Now forecasters expect that the coronavirus recession will accelerate the decline in global fossil fuel use, with some even predicting that the peak was in 2019, about 15 years earlier than the Kremlin was expecting.
Iraqi, #Saudi energy ministers say committed to output cuts - Reuters
Iraqi, Saudi energy ministers say committed to output cuts - Reuters:
Iraq and Saudi Arabia agreed on Saturday to continue working to re-balance markets and stressed their commitment to output cuts agreed by the Organization of the Petroleum Exporting Countries, Russia and other allies, Saudi state news agency SPA said.
The comments came after Iraq’s Finance Minister Ali Allawi, who is acting oil minister, visited Saudi Arabia to discuss the oil market with the Saudi energy minister, SPA said.
Both sides said they were satisfied with improving oil market conditions, the agency added.
Saudi news channel Al Arabiya reported that Iraq had agreed to allow Saudi companies to invest in its western Akkas gas field.
Iraq and Saudi Arabia agreed on Saturday to continue working to re-balance markets and stressed their commitment to output cuts agreed by the Organization of the Petroleum Exporting Countries, Russia and other allies, Saudi state news agency SPA said.
The comments came after Iraq’s Finance Minister Ali Allawi, who is acting oil minister, visited Saudi Arabia to discuss the oil market with the Saudi energy minister, SPA said.
Both sides said they were satisfied with improving oil market conditions, the agency added.
Saudi news channel Al Arabiya reported that Iraq had agreed to allow Saudi companies to invest in its western Akkas gas field.