Oil slides on U.S.-China tensions - Reuters:
Oil futures tumbled on Wednesday after U.S. President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong and as some traders doubted Russia’s commitment to deep production cuts.
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman agreed during a telephone call on further “close coordination” on oil output restrictions, the Kremlin said.
Still, many felt Russia was sending mixed signals ahead of the meeting in less than two weeks between the Organization of the Petroleum Exporting Countries and its allies.
The group known as OPEC+ is cutting output by nearly 10 million barrels per day (bpd) in May and June.
“It sounds great on paper, but the market is holding back excitement until we get a few more details about whether there will be cuts, how many barrels will be cut, and the length of the cuts,” said Phil Flynn, senior analyst at Price Futures Group.
Brent crude LCOc1 futures fell $1.65 to $34.52 a barrel, a 4.6 percent loss. U.S. West Texas Intermediate (WTI) crude CLc1 was down $1.54 , or 4.5%, at $32.81.
Wednesday 27 May 2020
Natural Gas News: Russian Flows to Europe Fell as Prices Dropped - Bloomberg
Natural Gas News: Russian Flows to Europe Fell as Prices Dropped - Bloomberg:
Natural gas flows from Europe’s biggest supplier slumped after a price rout and with storage sites at above-average levels.
Flows from Russia via the Yamal-Europe pipeline that runs across Belarus and Poland to Mallnow, Germany, slumped to zero Tuesday after a sharp decline since Sunday. Shipments into Baumgarten in Austria, a major European hub for Russian gas, fell by 25% from its 10-day average.
Gazprom PJSC said it continues to use the Yamal-Europe link, with actual volumes depending on client requests. Operators Gascade Gastransport GmbH and Gas Connect Austria GmbH have not notified the market of any currently planned or unplanned works.
Natural gas flows from Europe’s biggest supplier slumped after a price rout and with storage sites at above-average levels.
Flows from Russia via the Yamal-Europe pipeline that runs across Belarus and Poland to Mallnow, Germany, slumped to zero Tuesday after a sharp decline since Sunday. Shipments into Baumgarten in Austria, a major European hub for Russian gas, fell by 25% from its 10-day average.
Gazprom PJSC said it continues to use the Yamal-Europe link, with actual volumes depending on client requests. Operators Gascade Gastransport GmbH and Gas Connect Austria GmbH have not notified the market of any currently planned or unplanned works.
Mohammed bin Salman (MBS) #SaudiArabia Vision 2030: What Is It? - Bloomberg
Mohammed bin Salman (MBS) Saudi Arabia Vision 2030: What Is It? - Bloomberg:
Anybody landing at Riyadh airport can’t fail to notice the billboards. Every government institution carries the logo, even the once-feared religious police. Women can buy a long, traditional dress covered with the same branding.
“Vision 2030” is everywhere in Saudi Arabia. The grand plan to transform society and the economy defines the leadership of Crown Prince Mohammed bin Salman, who cemented his power in 2017 to drive changes that would have been unimaginable a few years ago. And every decision, from jailing fellow royals in the name of tackling corruption to allowing women to drive and lifting restrictions on entertainment, is aimed at ensuring its success—and the young prince’s legacy.
While 2019 was about selling shares in oil mammoth Aramco, this year was supposed to showcase the next stage of progress as Saudi Arabia welcomes world leaders from the Group of 20. Construction of new cities in the desert from scratch is underway, as are whole new industries from defense to tourism. But then came an oil price war that Prince Mohammed escalated and the unforeseen shock to the globe of the coronavirus pandemic. Now there are question marks over just how feasible “Vision 2030” really is.
Anybody landing at Riyadh airport can’t fail to notice the billboards. Every government institution carries the logo, even the once-feared religious police. Women can buy a long, traditional dress covered with the same branding.
“Vision 2030” is everywhere in Saudi Arabia. The grand plan to transform society and the economy defines the leadership of Crown Prince Mohammed bin Salman, who cemented his power in 2017 to drive changes that would have been unimaginable a few years ago. And every decision, from jailing fellow royals in the name of tackling corruption to allowing women to drive and lifting restrictions on entertainment, is aimed at ensuring its success—and the young prince’s legacy.
While 2019 was about selling shares in oil mammoth Aramco, this year was supposed to showcase the next stage of progress as Saudi Arabia welcomes world leaders from the Group of 20. Construction of new cities in the desert from scratch is underway, as are whole new industries from defense to tourism. But then came an oil price war that Prince Mohammed escalated and the unforeseen shock to the globe of the coronavirus pandemic. Now there are question marks over just how feasible “Vision 2030” really is.
OPEC+ must plan exit strategy: Kemp - Reuters
OPEC+ must plan exit strategy: Kemp - Reuters:
Saudi Arabia and its allies in the expanded OPEC+ group of oil-exporting nations have only just started to implement output cuts, so it might seem premature to start talking about the need for an exit strategy.
But an important part of being a successful market manager is about knowing when to increase production and capacity to forestall excessive investment by rivals and potential rivals.
OPEC’s biggest problem has always been increasing output in a timely manner after a price slump – rather than continuing to withhold supply in the hope of even higher prices.
Following output reductions in 2009, 2017 and 2019, Saudi Arabia and its allies restrained production too long and allowed prices to rise too high.
Saudi Arabia and its allies in the expanded OPEC+ group of oil-exporting nations have only just started to implement output cuts, so it might seem premature to start talking about the need for an exit strategy.
But an important part of being a successful market manager is about knowing when to increase production and capacity to forestall excessive investment by rivals and potential rivals.
OPEC’s biggest problem has always been increasing output in a timely manner after a price slump – rather than continuing to withhold supply in the hope of even higher prices.
Following output reductions in 2009, 2017 and 2019, Saudi Arabia and its allies restrained production too long and allowed prices to rise too high.
Oil falls on U.S.-China tensions over Hong Kong - Reuters
Oil falls on U.S.-China tensions over Hong Kong - Reuters:
Oil prices fell on Wednesday after U.S. President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong.
A potential deterioration in relations between the world’s two biggest economies could ratchet up the pressure on global businesses and oil demand already weakened by the coronavirus pandemic.
Brent crude LCOc1 fell 47 cents, or 1.3%, to $35.70 a barrel by 1106 GMT and U.S. West Texas Intermediate (WTI) crude CLc1 was down 32 cents, or almost 1%, at $34.03.
“As much as oil fundamentals are improving, there are still several flies in the bullish ointment. They include the latest uptick in U.S.-China tensions,” said Stephen Brennock of oil broker PVM.
Oil prices fell on Wednesday after U.S. President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong.
A potential deterioration in relations between the world’s two biggest economies could ratchet up the pressure on global businesses and oil demand already weakened by the coronavirus pandemic.
Brent crude LCOc1 fell 47 cents, or 1.3%, to $35.70 a barrel by 1106 GMT and U.S. West Texas Intermediate (WTI) crude CLc1 was down 32 cents, or almost 1%, at $34.03.
“As much as oil fundamentals are improving, there are still several flies in the bullish ointment. They include the latest uptick in U.S.-China tensions,” said Stephen Brennock of oil broker PVM.
European, Middle Eastern & African Stocks - Bloomberg #UAE 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.
European, Middle Eastern & African Stocks - Bloomberg #UAE 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.
Covid-19 Impact: Hotel Chain Accor Cuts 800 Mideast, Africa Jobs - Bloomberg
Covid-19 Impact: Hotel Chain Accor Cuts 800 Mideast, Africa Jobs - Bloomberg:
Accor SA has cut 800 jobs in the Middle East and Africa due to the pandemic and sees some positive signs emerging from the United Arab Emirates and Saudi Arabia, according to its chief executive office for the Middle East and Africa.
Most of its 25,000 employees working in the region have either been furloughed or have reduced working hours, Mark Willis said in an interview with Bloomberg TV on Wednesday. The group made 800 jobs redundant, he said.
While the global environment remains tough for the industry, positive signs are starting to appear in the United Arab Emirates and Saudi Arabia, he said. “You can feel the positive vibe in Dubai specifically.”
Accor SA has cut 800 jobs in the Middle East and Africa due to the pandemic and sees some positive signs emerging from the United Arab Emirates and Saudi Arabia, according to its chief executive office for the Middle East and Africa.
Most of its 25,000 employees working in the region have either been furloughed or have reduced working hours, Mark Willis said in an interview with Bloomberg TV on Wednesday. The group made 800 jobs redundant, he said.
While the global environment remains tough for the industry, positive signs are starting to appear in the United Arab Emirates and Saudi Arabia, he said. “You can feel the positive vibe in Dubai specifically.”
COVID-19 dwindles fiscal outlook for MEA sovereigns: Fitch | ZAWYA MENA Edition
COVID-19 dwindles fiscal outlook for MEA sovereigns: Fitch | ZAWYA MENA Edition:
Fiscal prospects for almost all sovereigns in the Middle East and Africa (MEA) have deteriorated sharply due to the COVID-19 pandemic, a Fitch report revealed.
“This mainly reflects the impact of a sharp decline in oil prices on public finances of oil exporters, and the effect of domestic and international containment measures in curtailing economic activity and thus fiscal revenues,” the global ratings agency said in its report.
The ratings agency expects most of the region to return to economic growth in 2021 and general government (GG) deficits to narrow consequently. Deficits will however remain wide in many countries, and debt will rise in most MEA sovereigns through 2021.
According to the ratings agency, buffers to absorb the shock have been limited in several cases, partly as a result of the weakening of public finances prior to the outbreak of the pandemic.
Fiscal prospects for almost all sovereigns in the Middle East and Africa (MEA) have deteriorated sharply due to the COVID-19 pandemic, a Fitch report revealed.
“This mainly reflects the impact of a sharp decline in oil prices on public finances of oil exporters, and the effect of domestic and international containment measures in curtailing economic activity and thus fiscal revenues,” the global ratings agency said in its report.
The ratings agency expects most of the region to return to economic growth in 2021 and general government (GG) deficits to narrow consequently. Deficits will however remain wide in many countries, and debt will rise in most MEA sovereigns through 2021.
According to the ratings agency, buffers to absorb the shock have been limited in several cases, partly as a result of the weakening of public finances prior to the outbreak of the pandemic.
NMC Health set to sell trading unit to different parties | ZAWYA MENA Edition
NMC Health set to sell trading unit to different parties | ZAWYA MENA Edition:
NMC Healthcare has received bids to sell its distribution unit and will soon be selling it to different parties, sources said.
The company, which recently laid off hundreds of workers, is offloading stake in the subsidiary as it is considered non-core and requires substantially high working capital to run the operations. In addition, this stake sale will help the company pay off some of its debt
"There are parties who have strong interest in the distribution business. NMC will be offloading the unit soon and that also to different parties," a source said.
"The company is in the process of exploring options for NMC Trading, the group's distribution business, which it has determined to be non-core and requiring substantial levels of working capital. The process should not materially adversely impact distributors' activities, nor NMC Trading's customers," an NMC Healthcare spokeswoman said.
NMC Healthcare has received bids to sell its distribution unit and will soon be selling it to different parties, sources said.
The company, which recently laid off hundreds of workers, is offloading stake in the subsidiary as it is considered non-core and requires substantially high working capital to run the operations. In addition, this stake sale will help the company pay off some of its debt
"There are parties who have strong interest in the distribution business. NMC will be offloading the unit soon and that also to different parties," a source said.
"The company is in the process of exploring options for NMC Trading, the group's distribution business, which it has determined to be non-core and requiring substantial levels of working capital. The process should not materially adversely impact distributors' activities, nor NMC Trading's customers," an NMC Healthcare spokeswoman said.
#Dubai developer DAMAC reports second straight quarterly loss, takes large impairment charges - Reuters
Dubai developer DAMAC reports second straight quarterly loss, takes large impairment charges - Reuters:
Dubai-based DAMAC Properties reported a loss for first-quarter on Wednesday, as the developer took more than 182 million UAE dirham ($49.55 million) in impairment charges.
While the company’s revenue rose 37% to 1.2 billion dirhams, it posted a loss of 106.1 million dirhams compared with a profit of 31 million dirhams a year earlier - its second consecutive quarterly loss, according to Refinitiv data.
The owner of the only Trump-branded golf course in the Middle East booked a 130 million dirhams impairment charge on development properties and a 52.5 million dirhams impairment on amounts owed to the company.
Chairman Hussain Sajwani in October said developers should self-impose a moratorium on new residential projects for up to two years to help Dubai’s over-supplied market recover.
Dubai-based DAMAC Properties reported a loss for first-quarter on Wednesday, as the developer took more than 182 million UAE dirham ($49.55 million) in impairment charges.
While the company’s revenue rose 37% to 1.2 billion dirhams, it posted a loss of 106.1 million dirhams compared with a profit of 31 million dirhams a year earlier - its second consecutive quarterly loss, according to Refinitiv data.
The owner of the only Trump-branded golf course in the Middle East booked a 130 million dirhams impairment charge on development properties and a 52.5 million dirhams impairment on amounts owed to the company.
Chairman Hussain Sajwani in October said developers should self-impose a moratorium on new residential projects for up to two years to help Dubai’s over-supplied market recover.
#Saudi public sector employees will return to work starting May 31 - Reuters
Saudi public sector employees will return to work starting May 31 - Reuters:
Saudi public sector employees will start returning to work gradually as of Sunday May 31, after more than two months of suspension amid strict measures to help curb the novel coronavirus outbreak.
Public sector workers will eventually resume work as normal as of June 14, Minister of Human Resources Ahmed al-Rajhi said in a televised speech on Tuesday.
On March 16, Saudi Arabia suspended work in all government sectors except health and security as part of the efforts to contain the pandemic.
The government said on Monday it will begin easing restrictions on movement and travel this week.
Saudi public sector employees will start returning to work gradually as of Sunday May 31, after more than two months of suspension amid strict measures to help curb the novel coronavirus outbreak.
Public sector workers will eventually resume work as normal as of June 14, Minister of Human Resources Ahmed al-Rajhi said in a televised speech on Tuesday.
On March 16, Saudi Arabia suspended work in all government sectors except health and security as part of the efforts to contain the pandemic.
The government said on Monday it will begin easing restrictions on movement and travel this week.
Oil falls on demand concerns, tensions over Hong Kong - Reuters
Oil falls on demand concerns, tensions over Hong Kong - Reuters:
Oil prices fell on Wednesday as concerns over how quickly fuel demand will recover tempered an easing of lockdowns to halt the spread of coronavirus, while U.S.-China tensions added to negative sentiment.
Brent crude futures fell 50 cents, or 1.4%, to $35.67 by 0628 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 52 cents, or 1.5%, at $33.83 a barrel.
The Organization of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are cutting their output by nearly 10 million barrels per day in May-June to buttress prices as measures to rein in the coronavirus pandemic have slashed fuel demand.
In the United States, where some states are opening up after lockdowns, optimism about an increase in demand has supported sentiment, but the recovery is fragile, analysts caution. The Memorial Day holiday just passed typically heralds the start of the peak U.S. demand season.
Oil prices fell on Wednesday as concerns over how quickly fuel demand will recover tempered an easing of lockdowns to halt the spread of coronavirus, while U.S.-China tensions added to negative sentiment.
Brent crude futures fell 50 cents, or 1.4%, to $35.67 by 0628 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 52 cents, or 1.5%, at $33.83 a barrel.
The Organization of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are cutting their output by nearly 10 million barrels per day in May-June to buttress prices as measures to rein in the coronavirus pandemic have slashed fuel demand.
In the United States, where some states are opening up after lockdowns, optimism about an increase in demand has supported sentiment, but the recovery is fragile, analysts caution. The Memorial Day holiday just passed typically heralds the start of the peak U.S. demand season.