Oil rises as production curbs face renewed demand fears - Reuters:
Oil prices rose on Tuesday, as optimism about recent commitments from major oil producers to curb production offset concerns about a resurgence in coronavirus cases.
Brent crude rose 38 cents, or 0.9%, to settle at $41.18 a barrel. West Texas Intermediate crude (WTI) rose 75 cents, or 2%, to end at $38.94 a barrel.
The Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, on Saturday agreed to extend record cuts of 9.7 million barrels per day (bpd) until the end of July.
However, Saudi Arabia, Kuwait and the United Arab Emirates said they would not maintain supplemental reductions that amount to more than a million barrels of daily supply.
Tuesday 9 June 2020
MIDEAST STOCKS-Profit-taking weighs on #Dubai; #Saudi rises as bank stocks gain - Agricultural Commodities - Reuters
MIDEAST STOCKS-Profit-taking weighs on Dubai; Saudi rises as bank stocks gain - Agricultural Commodities - Reuters:
Dubai's stock market fell on Tuesday,
snapping six sessions of gains, dragged by property shares and
profit-taking, while the Saudi index rose modestly.
Dubai's main share index retreated 1.8%, dragged
down by a 4.1% fall in blue-chip developer Emaar Properties
and a 3.9% decline in Emaar Development.
Mall operators in the Gulf region are delaying new
mega-projects as the COVID-19 pandemic and low oil prices upend
a retail industry built around huge centres catering to tourists
and wealthy locals.
Egyptian investment bank EFG Hermes forecast store sales in
Dubai to drop by 20% in 2020 if foreign visitors were allowed
entry in the third quarter, and by 40% if travel bans remain
until the year-end.
Saudi Arabia's benchmark index gained 0.4%, as Al
Rajhi Bank added 0.7% and Dr Sulaiman Al-Habib Medical
Services advanced 2.5%.
Dubai's stock market fell on Tuesday,
snapping six sessions of gains, dragged by property shares and
profit-taking, while the Saudi index rose modestly.
Dubai's main share index retreated 1.8%, dragged
down by a 4.1% fall in blue-chip developer Emaar Properties
and a 3.9% decline in Emaar Development.
Mall operators in the Gulf region are delaying new
mega-projects as the COVID-19 pandemic and low oil prices upend
a retail industry built around huge centres catering to tourists
and wealthy locals.
Egyptian investment bank EFG Hermes forecast store sales in
Dubai to drop by 20% in 2020 if foreign visitors were allowed
entry in the third quarter, and by 40% if travel bans remain
until the year-end.
Saudi Arabia's benchmark index gained 0.4%, as Al
Rajhi Bank added 0.7% and Dr Sulaiman Al-Habib Medical
Services advanced 2.5%.
Oil dips on oversupply concerns and stronger dollar - Reuters
Oil dips on oversupply concerns and stronger dollar - Reuters:
Oil prices fell on Tuesday, weighed down by a stronger dollar and oversupply concerns after it was announced that a trio of Gulf producers would end voluntary output cuts.
Brent crude was down 52 cents, or 1.3%, at $40.28 a barrel by 1340 GMT. West Texas Intermediate (WTI) crude fell 27 cents, or 0.7%, to $37.92.
A “slightly stronger U.S. dollar ... is weighing on crude prices. Also the prospect of higher production from Saudi Arabia, Kuwait, UAE and Oman in July is not helping prices,” said UBS analyst Giovanni Staunovo.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a grouping known as OPEC+, on Saturday agreed to extend record cuts of 9.7 million barrels per day (bpd) until the end of July.
Oil prices fell on Tuesday, weighed down by a stronger dollar and oversupply concerns after it was announced that a trio of Gulf producers would end voluntary output cuts.
Brent crude was down 52 cents, or 1.3%, at $40.28 a barrel by 1340 GMT. West Texas Intermediate (WTI) crude fell 27 cents, or 0.7%, to $37.92.
A “slightly stronger U.S. dollar ... is weighing on crude prices. Also the prospect of higher production from Saudi Arabia, Kuwait, UAE and Oman in July is not helping prices,” said UBS analyst Giovanni Staunovo.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a grouping known as OPEC+, on Saturday agreed to extend record cuts of 9.7 million barrels per day (bpd) until the end of July.
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.
Middle East News: HSBC Warns Against Buying #SaudiArabia's Banks - Bloomberg
Middle East News: HSBC Warns Against Buying Saudi Arabia's Banks - Bloomberg:
Six Saudi lenders had their stock recommendations cut to reduce from hold by HSBC Holdings Plc, which said valuations have become too expensive given the negative risks to earnings.
The downgrades for Riyad Bank, Arab National Bank, Banque Saudi Fransi, Al Rajhi Bank, National Commercial Bank and Samba Financial Group mean all seven banks covered by the broker now have the same rating, with Alinma Bank being kept at reduce.
While measures such as regulatory easing and free government deposits are temporarily helping lenders’ credit quality and margins, they are only delaying credit risk events until mid-September, analyst Aybek Islamov wrote in a note.
The sector’s current valuation “leaves no room for negative earnings surprise at a time when these are highly likely,” Islamov said. He expects combined net income for the seven banks he covers to fall 17% this year and a further 3% in 2021.
Six Saudi lenders had their stock recommendations cut to reduce from hold by HSBC Holdings Plc, which said valuations have become too expensive given the negative risks to earnings.
The downgrades for Riyad Bank, Arab National Bank, Banque Saudi Fransi, Al Rajhi Bank, National Commercial Bank and Samba Financial Group mean all seven banks covered by the broker now have the same rating, with Alinma Bank being kept at reduce.
While measures such as regulatory easing and free government deposits are temporarily helping lenders’ credit quality and margins, they are only delaying credit risk events until mid-September, analyst Aybek Islamov wrote in a note.
The sector’s current valuation “leaves no room for negative earnings surprise at a time when these are highly likely,” Islamov said. He expects combined net income for the seven banks he covers to fall 17% this year and a further 3% in 2021.
Emirates Kicks Off Thousands of Job Cuts to Navigate Virus Slump - Bloomberg
Emirates Kicks Off Thousands of Job Cuts to Navigate Virus Slump - Bloomberg:
Emirates started the process of firing thousands of workers to help the world’s largest long-haul carrier preserve cash during the industry’s recovery from the Covid-19 pandemic, according to people familiar with the matter.
The majority of those being retrenched are cabin-crew members, said the people, who asked not to be identified due to the sensitivity of the matter. A minority of the carrier’s 3,000 engineers are also losing their jobs, they said, alongside pilots who mainly flew the super-jumbo Airbus SE A380.
Emirates announced plans to cut jobs last week, without giving specific numbers, and a spokeswoman reiterated that position on Tuesday. Emirates Group, which includes air-services firm Dnata, could over time reduce its number of employees by some 30,000, or almost a third of its total, Bloomberg News reported last month.
Dubai’s government has said it will financially support the airline, which has temporarily cut salaries and grounded most of its passenger flights to mitigate the effect of the outbreak.
Emirates started the process of firing thousands of workers to help the world’s largest long-haul carrier preserve cash during the industry’s recovery from the Covid-19 pandemic, according to people familiar with the matter.
The majority of those being retrenched are cabin-crew members, said the people, who asked not to be identified due to the sensitivity of the matter. A minority of the carrier’s 3,000 engineers are also losing their jobs, they said, alongside pilots who mainly flew the super-jumbo Airbus SE A380.
Emirates announced plans to cut jobs last week, without giving specific numbers, and a spokeswoman reiterated that position on Tuesday. Emirates Group, which includes air-services firm Dnata, could over time reduce its number of employees by some 30,000, or almost a third of its total, Bloomberg News reported last month.
Dubai’s government has said it will financially support the airline, which has temporarily cut salaries and grounded most of its passenger flights to mitigate the effect of the outbreak.
#Dubai’s Economy Starting to Heal, Still ‘Long Way From Recovery’ - Bloomberg
Dubai’s Economy Starting to Heal, Still ‘Long Way From Recovery’ - Bloomberg:
A gauge of business conditions in Dubai bounced back to the highest since the coronavirus pandemic dragged the economy into a downturn, even as weak demand still stands in the way of a recovery.
The IHS Markit Dubai Purchasing Managers’ Index rose to 46 in May from a record low 41.7 in April, remaining below the 50 mark that separates contraction from growth. Thanks to a relaxation of lockdown measures, output and new orders declined at a slower rate, while unemployment had the smallest drop in three months, according to a report on Tuesday.
“The latest survey data suggested economic conditions remain a long way from recovery in May,” said David Owen, economist at IHS Markit. “Activity is expected to improve in the year ahead, but it remains to be seen how long it will take for the Dubai economy to rebound following COVID-19.”
A gauge of business conditions in Dubai bounced back to the highest since the coronavirus pandemic dragged the economy into a downturn, even as weak demand still stands in the way of a recovery.
The IHS Markit Dubai Purchasing Managers’ Index rose to 46 in May from a record low 41.7 in April, remaining below the 50 mark that separates contraction from growth. Thanks to a relaxation of lockdown measures, output and new orders declined at a slower rate, while unemployment had the smallest drop in three months, according to a report on Tuesday.
“The latest survey data suggested economic conditions remain a long way from recovery in May,” said David Owen, economist at IHS Markit. “Activity is expected to improve in the year ahead, but it remains to be seen how long it will take for the Dubai economy to rebound following COVID-19.”
Occidental Said to Review Mideast Assets in Bid to Cut Debt - Bloomberg
Occidental Said to Review Mideast Assets in Bid to Cut Debt - Bloomberg:
Occidental Petroleum Corp. is reviewing options for its Middle Eastern assets as it seeks ways to reduce its debt pile, people familiar with the matter said.
Houston-based Occidental is considering reducing its stakes in oil and natural gas fields in Oman, according to the people, who asked not to be identified because the information is private. Its holdings in the Gulf sultanate could be valued at more than $1 billion, the people said.
The company is also open to divesting other assets in the Middle East, though it isn’t formally soliciting interest, the people said. Outside of Oman, it has a presence in the United Arab Emirates and Qatar.
Occidental was saddled with about $40 billion of debt after its purchase of Anadarko Petroleum Corp. last year. It has gone from being a steady, diversified producer to a shale-focused driller that has seen its shares fall more than 40% this year. A slump in energy demand worsened Occidental’s financial situation, forcing it in May to cut a quarterly dividend to the lowest level in decades.
Occidental Petroleum Corp. is reviewing options for its Middle Eastern assets as it seeks ways to reduce its debt pile, people familiar with the matter said.
Houston-based Occidental is considering reducing its stakes in oil and natural gas fields in Oman, according to the people, who asked not to be identified because the information is private. Its holdings in the Gulf sultanate could be valued at more than $1 billion, the people said.
The company is also open to divesting other assets in the Middle East, though it isn’t formally soliciting interest, the people said. Outside of Oman, it has a presence in the United Arab Emirates and Qatar.
Occidental was saddled with about $40 billion of debt after its purchase of Anadarko Petroleum Corp. last year. It has gone from being a steady, diversified producer to a shale-focused driller that has seen its shares fall more than 40% this year. A slump in energy demand worsened Occidental’s financial situation, forcing it in May to cut a quarterly dividend to the lowest level in decades.
UPDATE 1- #Dubai ruler incorporates property firm Meraas into Dubai Holding - Reuters
UPDATE 1-Dubai ruler incorporates property firm Meraas into Dubai Holding - Reuters:
Dubai said on Tuesday that its ruler Sheikh Mohammed bin Rashid al-Maktoum is making state-linked property firm Meraas part of his Dubai Holding investment vehicle.
The move, which was announced in a statement by Dubai’s media office, follows a sharp downturn caused by the coronavirus crisis, which has hit the emirate’s main economic sectors of trade, tourism and transport particularly hard.
Sheikh Mohammed’s decision to bring Meraas under the umbrella of Dubai Holding appeared to be aimed at consolidating balance sheets, cash flows, projects, and centralising decision making, a financial source said.
Dubai Holding holds a substantial portfolio of brands in the property and hospitality sectors, including the Jumeirah Group, Dubai Properties and TECOM Group.
Dubai said on Tuesday that its ruler Sheikh Mohammed bin Rashid al-Maktoum is making state-linked property firm Meraas part of his Dubai Holding investment vehicle.
The move, which was announced in a statement by Dubai’s media office, follows a sharp downturn caused by the coronavirus crisis, which has hit the emirate’s main economic sectors of trade, tourism and transport particularly hard.
Sheikh Mohammed’s decision to bring Meraas under the umbrella of Dubai Holding appeared to be aimed at consolidating balance sheets, cash flows, projects, and centralising decision making, a financial source said.
Dubai Holding holds a substantial portfolio of brands in the property and hospitality sectors, including the Jumeirah Group, Dubai Properties and TECOM Group.
#Dubai's economy starting to heal, as business conditions bounce back - Arabianbusiness
Dubai's economy starting to heal, as business conditions bounce back - Arabianbusiness:
A gauge of business conditions in Dubai bounced back to the highest since the coronavirus pandemic dragged the economy into a downturn, even as weak demand still stands in the way of a recovery.
The IHS Markit Dubai Purchasing Managers’ Index rose to 46 in May from a record low 41.7 in April, remaining below the 50 mark that separates contraction from growth.
Thanks to a relaxation of lockdown measures, output and new orders declined at a slower rate, while unemployment had the smallest drop in three months, according to a report on Tuesday.
“The latest survey data suggested economic conditions remain a long way from recovery in May,” said David Owen, economist at IHS Markit. “Activity is expected to improve in the year ahead, but it remains to be seen how long it will take for the Dubai economy to rebound following Covid-19.”
A gauge of business conditions in Dubai bounced back to the highest since the coronavirus pandemic dragged the economy into a downturn, even as weak demand still stands in the way of a recovery.
The IHS Markit Dubai Purchasing Managers’ Index rose to 46 in May from a record low 41.7 in April, remaining below the 50 mark that separates contraction from growth.
Thanks to a relaxation of lockdown measures, output and new orders declined at a slower rate, while unemployment had the smallest drop in three months, according to a report on Tuesday.
“The latest survey data suggested economic conditions remain a long way from recovery in May,” said David Owen, economist at IHS Markit. “Activity is expected to improve in the year ahead, but it remains to be seen how long it will take for the Dubai economy to rebound following Covid-19.”
Bank of America takes stake in #Dubai's Emirates NBD - Arabianbusiness
Bank of America takes stake in Dubai's Emirates NBD - Arabianbusiness:
Global lending giant Bank of America Corp. (BofA) has bought a stake in Dubai’s largest bank Emirates NBD for approximately AED900 million, sources familiar with the matter told Arabian Business.
The North Carolina-based bank is believed to have bought 100 million shares – about 1.51% - of Emirates NBD.
The DFM-listed bank achieved a record net profit of AED14.5 billion and total assets in excess of AED 683 billion in 2019. In the same year it completed its acquisition of Turkey-based DenizBank, which increased its presence to 13 countries and its customer base to over 14 million in the MENAT region.
Both banks have adopted artificial intelligence and virtual assistants, with Emirates NBD’s Eva being the first of its kind in the MENA region, and BofA’s Erica surging to record popularity with consumers during the pandemic.
Global lending giant Bank of America Corp. (BofA) has bought a stake in Dubai’s largest bank Emirates NBD for approximately AED900 million, sources familiar with the matter told Arabian Business.
The North Carolina-based bank is believed to have bought 100 million shares – about 1.51% - of Emirates NBD.
The DFM-listed bank achieved a record net profit of AED14.5 billion and total assets in excess of AED 683 billion in 2019. In the same year it completed its acquisition of Turkey-based DenizBank, which increased its presence to 13 countries and its customer base to over 14 million in the MENAT region.
Both banks have adopted artificial intelligence and virtual assistants, with Emirates NBD’s Eva being the first of its kind in the MENA region, and BofA’s Erica surging to record popularity with consumers during the pandemic.
MIDEAST STOCKS-Property stocks weigh on #Dubai; #Saudi up on banks - Agricultural Commodities - Reuters
MIDEAST STOCKS-Property stocks weigh on Dubai; Saudi up on banks - Agricultural Commodities - Reuters:
Dubai’s stock market was on course to snap six sessions of gains on Tuesday, pressured by losses in real estate shares, while the Saudi index gained on the back of a rally in banks.
Dubai’s main share index retreated 1.4%, weighed down by a 2.4% fall in blue-chip developer Emaar Properties and a 1.4% drop in Emaar Malls.
Mall operators in the Gulf region are delaying new mega-projects as the COVID-19 pandemic and low oil prices upend a retail industry built around huge centres catering to tourists and wealthy locals.
Emaar Malls, owner and operator of the world’s largest shopping centre, Dubai Mall, has halted construction on two projects, according to two sources familiar with the plans.
Dubai’s stock market was on course to snap six sessions of gains on Tuesday, pressured by losses in real estate shares, while the Saudi index gained on the back of a rally in banks.
Dubai’s main share index retreated 1.4%, weighed down by a 2.4% fall in blue-chip developer Emaar Properties and a 1.4% drop in Emaar Malls.
Mall operators in the Gulf region are delaying new mega-projects as the COVID-19 pandemic and low oil prices upend a retail industry built around huge centres catering to tourists and wealthy locals.
Emaar Malls, owner and operator of the world’s largest shopping centre, Dubai Mall, has halted construction on two projects, according to two sources familiar with the plans.
Column: #Saudi crude oil price hike throws Asian lifeline to U.S. shale - Russell - Reuters
Column: Saudi crude oil price hike throws Asian lifeline to U.S. shale - Russell - Reuters:
Saudi Arabia’s decision to jack up the price of its July exports to Asia may have opened the door for U.S. crude oil producers to boost sales to the region that consumes more oil than anywhere else in the world.
State-controlled producer Saudi Aramco hoisted its official selling prices (OSPs) to all regions for July-loading cargoes, but the biggest hikes were for the key Asian region, which takes the bulk of the kingdom’s exports.
Benchmark Arab Light crude was boosted to a premium of 20 U.S. cents barrel over the Oman/Dubai average for July, from a discount of $5.90 in June, a price increase of $6.10.
This was well above the $3.80 a barrel average increase expected by Asian refiners surveyed by Reuters ahead of the June 7 announcement.
Saudi Arabia’s decision to jack up the price of its July exports to Asia may have opened the door for U.S. crude oil producers to boost sales to the region that consumes more oil than anywhere else in the world.
State-controlled producer Saudi Aramco hoisted its official selling prices (OSPs) to all regions for July-loading cargoes, but the biggest hikes were for the key Asian region, which takes the bulk of the kingdom’s exports.
Benchmark Arab Light crude was boosted to a premium of 20 U.S. cents barrel over the Oman/Dubai average for July, from a discount of $5.90 in June, a price increase of $6.10.
This was well above the $3.80 a barrel average increase expected by Asian refiners surveyed by Reuters ahead of the June 7 announcement.
Oil prices climb as easing of lockdowns fuels hopes for recovery in fuel demand - Reuters
Oil prices climb as easing of lockdowns fuels hopes for recovery in fuel demand - Reuters:
Oil prices rose on Tuesday, boosted by hopes for a swift recovery in fuel demand as coronavirus lockdown measures are eased across the globe, but gains were capped by the spectre of persistent oversupply in the market.
Brent crude futures rose 0.5%, or 22 cents, by 0647 GMT to $41.02 a barrel. The benchmark contract had fallen $1.50 on Monday, snapping a seven-day streak of gains.
U.S. West Texas Intermediate (WTI) crude futures rose 0.8%, or 31 cents, to $38.50 a barrel, after dropping by $1.36 on Monday.
“With Brent holding very nicely above $40, there’s talk among traders that WTI will test that level soon,” said Michael McCarthy, chief market strategist at CMC Markets.
Oil prices rose on Tuesday, boosted by hopes for a swift recovery in fuel demand as coronavirus lockdown measures are eased across the globe, but gains were capped by the spectre of persistent oversupply in the market.
Brent crude futures rose 0.5%, or 22 cents, by 0647 GMT to $41.02 a barrel. The benchmark contract had fallen $1.50 on Monday, snapping a seven-day streak of gains.
U.S. West Texas Intermediate (WTI) crude futures rose 0.8%, or 31 cents, to $38.50 a barrel, after dropping by $1.36 on Monday.
“With Brent holding very nicely above $40, there’s talk among traders that WTI will test that level soon,” said Michael McCarthy, chief market strategist at CMC Markets.