Oil steady; U.S.-China tensions weigh, possible output cuts support - Reuters:
Oil futures steadied on Monday as rising U.S.-China tensions weighed on sentiment, but prices drew support from reports that OPEC and Russia were close to a deal extending output cuts.
Brent futures LCOc1 rose 48 cents, or 1.3%, to settle at $38.32 a barrel. U.S. crude CLc1 fell 5 cents, or 0.1%, to settle at $35.44 a barrel.
Prices found support after news that the Organization of the Petroleum Exporting Countries and Russia, known as OPEC+, were moving closer to a compromise on extending oil output cuts and were discussing rolling over the curbs one to two months.
Algeria, which holds the rotating OPEC presidency, has proposed that OPEC+ hold a meeting on June 4 rather than the previously planned June 9-10.
Monday, 1 June 2020
#AbuDhabi Said to Near Pipeline Stake Sale to GIP-Backed Group - Bloomberg
Abu Dhabi Said to Near Pipeline Stake Sale to GIP-Backed Group - Bloomberg:
Abu Dhabi’s state-owned energy producer is close to selling a multibillion-dollar stake in its natural gas pipelines to an investor group backed by Global Infrastructure Partners and Brookfield Asset Management Inc., in what is set to be one of the year’s biggest infrastructure deals.
The buyers could sign an agreement with Abu Dhabi National Oil Co. for a 49% stake in the pipelines this month, according to people with knowledge of the matter, who asked not to be identified as discussions are private. A deal could value the pipelines at more than $15 billion, including debt, they said said.
Equity financing has been arranged and the bidders are negotiating the terms of a debt package with banks, the people said. While discussions are advanced and ongoing, the timing and valuation could still change, according to the people.
The GIP consortium also includes Italian infrastructure operator Snam SpA, Ontario Teachers’ Pension Plan, Singapore sovereign fund GIC Pte and South Korea’s NH Investment & Securities Co.
Abu Dhabi’s state-owned energy producer is close to selling a multibillion-dollar stake in its natural gas pipelines to an investor group backed by Global Infrastructure Partners and Brookfield Asset Management Inc., in what is set to be one of the year’s biggest infrastructure deals.
The buyers could sign an agreement with Abu Dhabi National Oil Co. for a 49% stake in the pipelines this month, according to people with knowledge of the matter, who asked not to be identified as discussions are private. A deal could value the pipelines at more than $15 billion, including debt, they said said.
Equity financing has been arranged and the bidders are negotiating the terms of a debt package with banks, the people said. While discussions are advanced and ongoing, the timing and valuation could still change, according to the people.
The GIP consortium also includes Italian infrastructure operator Snam SpA, Ontario Teachers’ Pension Plan, Singapore sovereign fund GIC Pte and South Korea’s NH Investment & Securities Co.
OPEC’s Strong Start to New Oil Cuts Marred by Usual Suspects - Bloomberg
OPEC’s Strong Start to New Oil Cuts Marred by Usual Suspects - Bloomberg:
OPEC’s delivery of its latest oil-production cutbacks, while strong overall, was undermined by its habitual laggards.
The Organization of Petroleum Exporting Countries implemented three-quarters of the cuts pledged in May to re-balance a global market upended by the coronavirus, according to a Bloomberg survey. Yet performance was marred by Iraq and Nigeria, who executed less than half of their agreed reduction.
The cartel and its partners, who make up a 23-nation alliance known as OPEC+, promised to collectively curb output by a record 9.7 million barrels a day in May and June amid an unprecedented collapse in fuel demand. The coalition will meet this week or next to consider its next step.
OPEC+ will discuss maintaining that level of cuts for another couple of months to disperse a billion-barrel glut that’s accumulated during the pandemic, and the high compliance rate so far may encourage ministers they can keep it going. At the same time, the laggards may be in for criticism for diluting the impact of the strategy.
OPEC’s delivery of its latest oil-production cutbacks, while strong overall, was undermined by its habitual laggards.
The Organization of Petroleum Exporting Countries implemented three-quarters of the cuts pledged in May to re-balance a global market upended by the coronavirus, according to a Bloomberg survey. Yet performance was marred by Iraq and Nigeria, who executed less than half of their agreed reduction.
The cartel and its partners, who make up a 23-nation alliance known as OPEC+, promised to collectively curb output by a record 9.7 million barrels a day in May and June amid an unprecedented collapse in fuel demand. The coalition will meet this week or next to consider its next step.
OPEC+ will discuss maintaining that level of cuts for another couple of months to disperse a billion-barrel glut that’s accumulated during the pandemic, and the high compliance rate so far may encourage ministers they can keep it going. At the same time, the laggards may be in for criticism for diluting the impact of the strategy.
Middle East News: #Qatar Orders $20 Billion of LNG Tankers - Bloomberg
Middle East News: Qatar Orders $20 Billion of LNG Tankers - Bloomberg:
Qatar has signed a deal worth around $20 billion with South Korean shipbuilders to help cement its position as the world’s largest producer of liquefied natural gas.
The Gulf emirate entered into agreements with Daewoo Shipbuilding & Marine Engineering Co., Hyundai Heavy Industries Co. and Samsung Heavy Industries Co., according to a statement on Monday from state producer Qatar Petroleum. The three Korea-based firms will reserve a “major portion” of their LNG ship-construction capacity for QP through 2027.
The deal, valued at around 70 billion Qatari rials ($19.1 billion), could see them build more than 100 LNG vessels for Qatar, QP said.
“We have everything in place to commence the largest LNG-shipbuilding program in history,” said Saad Al-Kaabi, QP’s chief executive officer and Qatar’s energy minister. “We have secured approximately 60% of the global LNG shipbuilding capacity through 2027.”
Qatar has signed a deal worth around $20 billion with South Korean shipbuilders to help cement its position as the world’s largest producer of liquefied natural gas.
The Gulf emirate entered into agreements with Daewoo Shipbuilding & Marine Engineering Co., Hyundai Heavy Industries Co. and Samsung Heavy Industries Co., according to a statement on Monday from state producer Qatar Petroleum. The three Korea-based firms will reserve a “major portion” of their LNG ship-construction capacity for QP through 2027.
The deal, valued at around 70 billion Qatari rials ($19.1 billion), could see them build more than 100 LNG vessels for Qatar, QP said.
“We have everything in place to commence the largest LNG-shipbuilding program in history,” said Saad Al-Kaabi, QP’s chief executive officer and Qatar’s energy minister. “We have secured approximately 60% of the global LNG shipbuilding capacity through 2027.”
MIDEAST STOCKS-Major Gulf stocks end higher, #Qatar outperforms - Agricultural Commodities - Reuters
MIDEAST STOCKS-Major Gulf stocks end higher, Qatar outperforms - Agricultural Commodities - Reuters:
Most major stock markets in the Middle
East ended higher on Monday as optimism over easing coronavirus
restrictions boosted risk appetite.
In Dubai, the index gained 1.5%, with its largest
lender Emirates NBD adding 2.8% and Emaar Properties
increasing 1.6%.
Last week, Dubai lifted restrictions on movement and allowed
business activity to restart.
The UAE, which had suspended entry of non-Emirati residents
on March 19, said last month it would soon start allowing in
those with valid residencies stranded abroad whose families are
in the UAE.
The state news agency had said residents with relatives in
the UAE could start returning as of June 1 to reunite with
family.
Qatar's index climbed 2%, boosted by a 10% surge in
telecoms firm Ooredoo.
Ooredoo said that its unit will pay its global medium term
note holders’ interest payment on June 22.
Most major stock markets in the Middle
East ended higher on Monday as optimism over easing coronavirus
restrictions boosted risk appetite.
In Dubai, the index gained 1.5%, with its largest
lender Emirates NBD adding 2.8% and Emaar Properties
increasing 1.6%.
Last week, Dubai lifted restrictions on movement and allowed
business activity to restart.
The UAE, which had suspended entry of non-Emirati residents
on March 19, said last month it would soon start allowing in
those with valid residencies stranded abroad whose families are
in the UAE.
The state news agency had said residents with relatives in
the UAE could start returning as of June 1 to reunite with
family.
Qatar's index climbed 2%, boosted by a 10% surge in
telecoms firm Ooredoo.
Ooredoo said that its unit will pay its global medium term
note holders’ interest payment on June 22.
Oil drops as U.S.-China tension escalates - Reuters
Oil drops as U.S.-China tension escalates - Reuters:
Oil futures edged lower on Monday as rising U.S.-China tensions weighed on market sentiment, but reports that OPEC and Russia were close to a deal extending output buoyed prices.
Brent futures LCOc1 fell 37 cents, or 1%, to $37.47 a barrel by 11:10 a.m. (1510 GMT). U.S. crude CLc1 fell $1.02, or 2.9%, to $34.47 a barrel.
Investors turned cautious after China warned of retaliation on U.S. moves over Hong Kong.
China has asked its state-owned firms to halt purchases of soybeans and pork from the United States, two people familiar with the matter said, after Washington said it would eliminate special U.S. treatment for Hong Kong to punish Beijing.
Oil futures edged lower on Monday as rising U.S.-China tensions weighed on market sentiment, but reports that OPEC and Russia were close to a deal extending output buoyed prices.
Brent futures LCOc1 fell 37 cents, or 1%, to $37.47 a barrel by 11:10 a.m. (1510 GMT). U.S. crude CLc1 fell $1.02, or 2.9%, to $34.47 a barrel.
Investors turned cautious after China warned of retaliation on U.S. moves over Hong Kong.
China has asked its state-owned firms to halt purchases of soybeans and pork from the United States, two people familiar with the matter said, after Washington said it would eliminate special U.S. treatment for Hong Kong to punish Beijing.
Airlines and Covid-19: Emirates Casts Doubt on Aircraft Orders - Bloomberg
Airlines and Covid-19: Emirates Casts Doubt on Aircraft Orders - Bloomberg:
Gulf airline Emirates said it’s unable to commit to outstanding aircraft orders in light of the coronavirus crisis, casting doubt over a backlog worth tens of billions of dollars to Boeing Co. and Airbus SE.
“All bets are off,” Tim Clark, the Dubai-based carrier’s president, said in a online forum Monday. “We are nowhere near confident enough that the economics, the cash flows, the bottom line will put us in a good position to be able to guess if we’ll buy a hundred of this or a hundred of that.”
Emirates ranks as the world’s largest long-haul carrier and had unfilled orders for more than 200 jets at the end of March, comprising Boeing 777s and 787s, Airbus A350s, and the last few A380 superjumbos. Grounding existing aircraft is not always an option since they may be encumbered by leases and other debt, and the carrier’s focus is on getting those planes flying again, he said.
Gulf airline Emirates said it’s unable to commit to outstanding aircraft orders in light of the coronavirus crisis, casting doubt over a backlog worth tens of billions of dollars to Boeing Co. and Airbus SE.
“All bets are off,” Tim Clark, the Dubai-based carrier’s president, said in a online forum Monday. “We are nowhere near confident enough that the economics, the cash flows, the bottom line will put us in a good position to be able to guess if we’ll buy a hundred of this or a hundred of that.”
Emirates ranks as the world’s largest long-haul carrier and had unfilled orders for more than 200 jets at the end of March, comprising Boeing 777s and 787s, Airbus A350s, and the last few A380 superjumbos. Grounding existing aircraft is not always an option since they may be encumbered by leases and other debt, and the carrier’s focus is on getting those planes flying again, he said.
Gulf currency pegs to remain despite oil price slump, S&P says | ZAWYA MENA Edition
Gulf currency pegs to remain despite oil price slump, S&P says | ZAWYA MENA Edition:
The six nations of the Gulf Cooperation Council will maintain their pegged currencies despite a fall in oil prices, S&P Global Ratings said on Monday.
The ability of Gulf countries to defend their currencies' pegs, to the dollar in most cases, has come under scrutiny as historically low oil prices and the fallout from the coronavirus pandemic have pressured their economies.
Kuwait, Qatar, the United Arab Emirates and Saudi Arabia have strong levels of reserves to weather shocks, while Bahrain and Oman have a lower level of external liquid assets, S&P said.
But the ratings agency believes Bahrain and Oman's wealthier neighbours would provide financial support in times of stress if needed, similar to a $10 billion aid package pledged to Bahrain by Kuwait, Saudi Arabia and the UAE in 2018.
The six nations of the Gulf Cooperation Council will maintain their pegged currencies despite a fall in oil prices, S&P Global Ratings said on Monday.
The ability of Gulf countries to defend their currencies' pegs, to the dollar in most cases, has come under scrutiny as historically low oil prices and the fallout from the coronavirus pandemic have pressured their economies.
Kuwait, Qatar, the United Arab Emirates and Saudi Arabia have strong levels of reserves to weather shocks, while Bahrain and Oman have a lower level of external liquid assets, S&P said.
But the ratings agency believes Bahrain and Oman's wealthier neighbours would provide financial support in times of stress if needed, similar to a $10 billion aid package pledged to Bahrain by Kuwait, Saudi Arabia and the UAE in 2018.
Corporate tax in #UAE 'is going to happen,' says Habib Al Mulla - Arabianbusiness
Corporate tax in UAE 'is going to happen,' says Habib Al Mulla - Arabianbusiness:
Corporate tax will ultimately be introduced in the UAE and GCC to replace the current high government fee system, with Covid-19 expected to accelerate the process, according to top Emirati lawyer Habib Al Mulla.
Speaking to Arabian Business, the chairman of Baker McKenzie Habib Al Mulla said the tax is "unavoidable" as regional governments look to diversify their main revenue stream away from oil and into a more steady source of income.
"This is a common issue for the Gulf countries because they have similar economic structures and face similar economic challenges. From a Gulf perspective, it's a step we have to take. It's unavoidable. The governments need to diversity their sources of income to something which will be steady and not as reliant on one commodity.
Corporate tax will ultimately be introduced in the UAE and GCC to replace the current high government fee system, with Covid-19 expected to accelerate the process, according to top Emirati lawyer Habib Al Mulla.
Speaking to Arabian Business, the chairman of Baker McKenzie Habib Al Mulla said the tax is "unavoidable" as regional governments look to diversify their main revenue stream away from oil and into a more steady source of income.
"This is a common issue for the Gulf countries because they have similar economic structures and face similar economic challenges. From a Gulf perspective, it's a step we have to take. It's unavoidable. The governments need to diversity their sources of income to something which will be steady and not as reliant on one commodity.
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.
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.
Emirates could take four years to resume flying to entire network - Reuters
Emirates could take four years to resume flying to entire network - Reuters:
Emirates’ outgoing President Tim Clark on Monday said it could take the state carrier up to four years to resume flying to its entire network that has been decimated by the coronavirus pandemic.
The Dubai-based airline, which flew to 157 destinations in 83 countries before the pandemic, grounded passenger flights in March and has since operated few, limited services.
“I think probably by the year 2022/23, 2023/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was,” Clark said in a webcast interview with aviation consultant John Strickland.
Emirates has warned that the current period would be the most difficult in its 35-year history and on Sunday said it had made some staff redundant due to the impact of the pandemic.
Emirates’ outgoing President Tim Clark on Monday said it could take the state carrier up to four years to resume flying to its entire network that has been decimated by the coronavirus pandemic.
The Dubai-based airline, which flew to 157 destinations in 83 countries before the pandemic, grounded passenger flights in March and has since operated few, limited services.
“I think probably by the year 2022/23, 2023/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was,” Clark said in a webcast interview with aviation consultant John Strickland.
Emirates has warned that the current period would be the most difficult in its 35-year history and on Sunday said it had made some staff redundant due to the impact of the pandemic.
Oil steady as OPEC+ considers extension to output curbs - Reuters
Oil steady as OPEC+ considers extension to output curbs - Reuters:
Oil prices were steady on Monday helped by reports that OPEC and Russia were closer to a deal on extending oil cuts but held back by renewed tension between the United States and China.
Benchmark Brent crude LCOc1 was up 19 cents, or 0.5%, at $38.03 a barrel at 1126 GMT. U.S. crude CLc1 had dipped 11 cents, or 0.3%, at $35.38 a barrel.
The Organization of the Petroleum Exporting Countries and Russia, part of a group known as OPEC+, are moving closer to a compromise on the duration for extending oil output cuts and were discussing rolling over the curbs one to two months, two OPEC+ sources told Reuters.
Algeria, which holds the rotating OPEC presidency, has proposed that OPEC+ hold a meeting on June 4 rather than the previously planned June 9-10. Russia has said it has no objection to meeting sooner.
Oil prices were steady on Monday helped by reports that OPEC and Russia were closer to a deal on extending oil cuts but held back by renewed tension between the United States and China.
Benchmark Brent crude LCOc1 was up 19 cents, or 0.5%, at $38.03 a barrel at 1126 GMT. U.S. crude CLc1 had dipped 11 cents, or 0.3%, at $35.38 a barrel.
The Organization of the Petroleum Exporting Countries and Russia, part of a group known as OPEC+, are moving closer to a compromise on the duration for extending oil output cuts and were discussing rolling over the curbs one to two months, two OPEC+ sources told Reuters.
Algeria, which holds the rotating OPEC presidency, has proposed that OPEC+ hold a meeting on June 4 rather than the previously planned June 9-10. Russia has said it has no objection to meeting sooner.
#UAE's Julphar launches $136mln rights issue to drive expansion, cut debt | ZAWYA MENA Edition
UAE's Julphar launches $136mln rights issue to drive expansion, cut debt | ZAWYA MENA Edition:
UAE’s Gulf Pharmaceuticals (Julphar), which had earlier accumulated losses, is looking to raise 500 million UAE dirhams ($136 million) via a rights issue, it said on Monday.
The proceeds of the cash call will be used to finance the company’s “ambitious turnaround plan” and expand its operations in Saudi Arabia, Iraq and Egypt, among other key markets.
One of the biggest drug manufacturers in the Middle East and Africa, Julphar, reported in May that it managed to trim down its losses for the first three months of the year by 30 percent to 62.5 million UAE dirhams, compared to 891.1 million dirhams a year earlier.
In a statement on Tuesday, Julphar said the rights issue is set to improve its capital position and debt profile.
UAE’s Gulf Pharmaceuticals (Julphar), which had earlier accumulated losses, is looking to raise 500 million UAE dirhams ($136 million) via a rights issue, it said on Monday.
The proceeds of the cash call will be used to finance the company’s “ambitious turnaround plan” and expand its operations in Saudi Arabia, Iraq and Egypt, among other key markets.
One of the biggest drug manufacturers in the Middle East and Africa, Julphar, reported in May that it managed to trim down its losses for the first three months of the year by 30 percent to 62.5 million UAE dirhams, compared to 891.1 million dirhams a year earlier.
In a statement on Tuesday, Julphar said the rights issue is set to improve its capital position and debt profile.
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.
#Saudi central bank provides $13.3 billion to support bank liquidity - Reuters
Saudi central bank provides $13.3 billion to support bank liquidity - Reuters:
The Saudi central bank said it provided 50 billion riyals ($13.3 billion) to support liquidity in the banking sector, according to a statement on twitter on Monday.
The stimulus measure was introduced to help banks support and finance the private sector, the Saudi Arabian Monetary Authority (SAMA) said, as the economy suffers from low oil prices and measures to contain the coronavirus pandemic.
SAMA said the banking sector was “still registering good performance indicators, enhancing its ability to face challenges and crises.”
Lending to the private sector increased in April by 12.2% year on year and by 0.9% month on month, SAMA data published late on Sunday showed.
The Saudi central bank said it provided 50 billion riyals ($13.3 billion) to support liquidity in the banking sector, according to a statement on twitter on Monday.
The stimulus measure was introduced to help banks support and finance the private sector, the Saudi Arabian Monetary Authority (SAMA) said, as the economy suffers from low oil prices and measures to contain the coronavirus pandemic.
SAMA said the banking sector was “still registering good performance indicators, enhancing its ability to face challenges and crises.”
Lending to the private sector increased in April by 12.2% year on year and by 0.9% month on month, SAMA data published late on Sunday showed.
Oil prices edge up ahead of upcoming OPEC+ meeting - Reuters
Oil prices edge up ahead of upcoming OPEC+ meeting - Reuters:
Oil prices were little changed on Monday, with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.
Brent crude LCOc1 was unchanged at $37.84 a barrel, in the first day of trading in the contract with August as the front month.
West Texas Intermediate (WTI) crude futures CLc1 for July delivery were at $35.53 a barrel, up 4 cents, or 0.1%, by 0629 GMT.
The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May. Gains were boosted by OPEC crude production dropping to its lowest in two decades, with demand expected to recover as more nations emerge from coronavirus lockdowns.
Oil prices were little changed on Monday, with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.
Brent crude LCOc1 was unchanged at $37.84 a barrel, in the first day of trading in the contract with August as the front month.
West Texas Intermediate (WTI) crude futures CLc1 for July delivery were at $35.53 a barrel, up 4 cents, or 0.1%, by 0629 GMT.
The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May. Gains were boosted by OPEC crude production dropping to its lowest in two decades, with demand expected to recover as more nations emerge from coronavirus lockdowns.