Mideast Stocks: Markets gain on global rally, rising oil prices | ZAWYA MENA Edition:
Stock markets in the Middle East rebounded on Tuesday, tracking a rally in global equities and as crude oil prices rose on record supply cuts and improving fuel demand.
Brent crude rose 77 cents, or 1.94%, to $40.49 a barrel by 0918 GMT, extending gains into a third session.
The International Energy Agency forecast oil demand at 91.7 million barrels per day for 2020, 500,000 bpd higher than its estimate in May's report, citing higher-than-expected consumption during the lockdowns.
Saudi Arabia's benchmark stock index added 0.6%, with oil giant Saudi Aramco rising 0.9% and Dr Sulaiman Al-Habib Medical Services 4013.SE gaining 2%.
Dubai's main share index rose 0.9%, driven by a 1.5% rise in Emaar Properties and a 3% jump in logistic company Aramex.
On Monday, Aramex announced the launch of Aramex SMART, a delivery, payment and returns solution for e-tailers, to boost e-commerce in the region.
Tuesday 16 June 2020
Oil prices rise 3% on signs of U.S. economic recovery - Reuters
Oil prices rise 3% on signs of U.S. economic recovery - Reuters:
Oil prices rose 3% in volatile trade on Tuesday as Wall Street surged and the International Energy Agency (IEA) increased its oil demand forecast for 2020, but gains were capped by worries about a second wave of coronavirus cases.
Brent crude futures ended the session up $1.24, or 3.1%, at $40.96 a barrel while U.S. West Texas Intermediate crude (WTI) rose $1.26, or 3.4% to settle at $38.38 a barrel.
Oil prices were bolstered early in the session as U.S. stocks opened higher after a record increase in May retail sales revived hopes of a swift post-pandemic economic rebound, with sentiment also lifted by data showing reduced COVID-19 death rates in a trial of a generic steroid drug.
In its monthly report, the IEA forecast oil demand at 91.7 million barrels per day (bpd) in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during coronavirus lockdowns.
Oil prices rose 3% in volatile trade on Tuesday as Wall Street surged and the International Energy Agency (IEA) increased its oil demand forecast for 2020, but gains were capped by worries about a second wave of coronavirus cases.
Brent crude futures ended the session up $1.24, or 3.1%, at $40.96 a barrel while U.S. West Texas Intermediate crude (WTI) rose $1.26, or 3.4% to settle at $38.38 a barrel.
Oil prices were bolstered early in the session as U.S. stocks opened higher after a record increase in May retail sales revived hopes of a swift post-pandemic economic rebound, with sentiment also lifted by data showing reduced COVID-19 death rates in a trial of a generic steroid drug.
In its monthly report, the IEA forecast oil demand at 91.7 million barrels per day (bpd) in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during coronavirus lockdowns.
Oil demand drop set to last throughout 2021 and beyond, warns IEA | Financial Times
Oil demand drop set to last throughout 2021 and beyond, warns IEA | Financial Times:
The drop in oil demand caused by the coronavirus pandemic will endure throughout 2021 and even beyond, the International Energy Agency has said, mostly due to a slower recovery in air travel.
In its first forecast for next year, the IEA said demand would rise by 5.7m barrels a day to 97.4m b/d. This is a rebound from the expected 8.1m b/d fall in 2020, set to be the largest drop on record. But it will still put 2021’s total demand 2.4m b/d below 2019.
“We have to assume that oil demand doesn’t get back to around 100m b/d till some point in 2022,” said Neil Atkinson, head of oil markets at the IEA. “But even that assumes strong economic growth in that year and no resurgence of Covid-19, so we can’t be sure. It might well be into 2023.”
In its monthly oil-market report, the IEA said the “dire” situation of the aviation sector was largely to blame, noting that passenger traffic this year was expected to be almost 55 per cent lower than in 2019. The industry will remain a drag beyond next year, the Paris-based body estimates. The IEA expects jet fuel demand to drop by 3m b/d in 2020 and then rebound by just 1m b/d in 2021.
The drop in oil demand caused by the coronavirus pandemic will endure throughout 2021 and even beyond, the International Energy Agency has said, mostly due to a slower recovery in air travel.
In its first forecast for next year, the IEA said demand would rise by 5.7m barrels a day to 97.4m b/d. This is a rebound from the expected 8.1m b/d fall in 2020, set to be the largest drop on record. But it will still put 2021’s total demand 2.4m b/d below 2019.
“We have to assume that oil demand doesn’t get back to around 100m b/d till some point in 2022,” said Neil Atkinson, head of oil markets at the IEA. “But even that assumes strong economic growth in that year and no resurgence of Covid-19, so we can’t be sure. It might well be into 2023.”
In its monthly oil-market report, the IEA said the “dire” situation of the aviation sector was largely to blame, noting that passenger traffic this year was expected to be almost 55 per cent lower than in 2019. The industry will remain a drag beyond next year, the Paris-based body estimates. The IEA expects jet fuel demand to drop by 3m b/d in 2020 and then rebound by just 1m b/d in 2021.
WTO piracy ruling raises new doubt over #Saudi takeover of Newcastle | Financial Times
WTO piracy ruling raises new doubt over Saudi takeover of Newcastle | Financial Times:
The £300m Saudi Arabia-led takeover of Newcastle United football club faces renewed scrutiny after the World Trade Organization ruled the Gulf kingdom was responsible for television piracy including the improper screening of English Premier League matches.
The Saudi government had “infringed” international trade agreements because of the country’s involvement with beoutQ, an Arabic language network, the WTO said on Tuesday in a ruling that capped an 18-month legal case.
Qatar had brought the WTO case, arguing beoutQ was streaming content rightfully owned by beIN Sports, a Doha-based broadcaster that has paid billions of dollars for exclusive rights to major sporting events.
The judgment complicates the Newcastle takeover, which is led by the Public Investment Fund, the Saudi sovereign wealth fund steered by the country’s de facto ruler, Crown Prince Mohammed bin Salman.
The £300m Saudi Arabia-led takeover of Newcastle United football club faces renewed scrutiny after the World Trade Organization ruled the Gulf kingdom was responsible for television piracy including the improper screening of English Premier League matches.
The Saudi government had “infringed” international trade agreements because of the country’s involvement with beoutQ, an Arabic language network, the WTO said on Tuesday in a ruling that capped an 18-month legal case.
Qatar had brought the WTO case, arguing beoutQ was streaming content rightfully owned by beIN Sports, a Doha-based broadcaster that has paid billions of dollars for exclusive rights to major sporting events.
The judgment complicates the Newcastle takeover, which is led by the Public Investment Fund, the Saudi sovereign wealth fund steered by the country’s de facto ruler, Crown Prince Mohammed bin Salman.
Covid-19 News: #SaudiArabia Rolls Out $1 Billion Stimulus Package - Bloomberg
Covid-19 News: Saudi Arabia Rolls Out $1 Billion Stimulus Package - Bloomberg:
Saudi Arabia will offer a 3.7 billion riyal ($1 billion) stimulus package to support more than 500 small and medium-sized industrial companies hurt by the novel coronavirus.
The initiatives, announced by the Saudi Industrial Development Fund, are part of a wider package of governmental support, and include the deferral and restructuring of loan payments for hundreds of companies, according to a statement from the fund.
The fund will also offer lines of credit to partly finance up to three months of operating expenses for qualified companies, and will “continue to explore solutions that will support the private sector,” it said.
Businesses across the world’s largest oil exporter are struggling to stay afloat after measures to slow the spread of the virus, coupled with historic turmoil in global oil markets, have upended the economy.
Saudi Arabia will offer a 3.7 billion riyal ($1 billion) stimulus package to support more than 500 small and medium-sized industrial companies hurt by the novel coronavirus.
The initiatives, announced by the Saudi Industrial Development Fund, are part of a wider package of governmental support, and include the deferral and restructuring of loan payments for hundreds of companies, according to a statement from the fund.
The fund will also offer lines of credit to partly finance up to three months of operating expenses for qualified companies, and will “continue to explore solutions that will support the private sector,” it said.
Businesses across the world’s largest oil exporter are struggling to stay afloat after measures to slow the spread of the virus, coupled with historic turmoil in global oil markets, have upended the economy.
Abraaj scandal: the world's largest private equity insolvency - Videos - Arabianbusiness
Abraaj scandal: the world's largest private equity insolvency - Videos - Arabianbusiness:
In court papers last year, US prosecutors said Naqvi stole more than $250m. But in a new filing on Friday, the liquidators put the losses much higher, claiming Naqvi stole $385m from 2009 to 2018 as he moved money for his own use in more than 3,700 transactions.
The liquidators are at work trying to trace the transactions and have asked a New York judge for permission to file subpoenas on 18 banks.
Naqvi, who has denied wrongdoing, is under house arrest in London facing possible extradition to the US.
In court papers last year, US prosecutors said Naqvi stole more than $250m. But in a new filing on Friday, the liquidators put the losses much higher, claiming Naqvi stole $385m from 2009 to 2018 as he moved money for his own use in more than 3,700 transactions.
The liquidators are at work trying to trace the transactions and have asked a New York judge for permission to file subpoenas on 18 banks.
Naqvi, who has denied wrongdoing, is under house arrest in London facing possible extradition to the US.
Saudis see high hopes for 2020 upended by pandemic
Saudis see high hopes for 2020 upended by pandemic:
This was supposed to be Saudi Arabia’s year to shine as host of the prestigious G20 gathering of world leaders. The event would have seen Crown Prince Mohammed bin Salman share handshakes and wide smiles with presidents and prime ministers.
Instead, the gathering this November will likely be a virtual meet-up, stripping its host of the pomp that would have accompanied televised arrivals on Riyadh’s tarmac just two years after the killing of Saudi writer Jamal Khashoggi had cast a shadow over the crown prince, who U.S. intelligence says bore responsibility for the crime.
It was also to be another year of sweeping change for Saudi Arabia. The kingdom had only just begun to swing open its doors to tourists and eye-popping concerts when the pandemic struck, spawning social distancing and lockdowns.
This was supposed to be Saudi Arabia’s year to shine as host of the prestigious G20 gathering of world leaders. The event would have seen Crown Prince Mohammed bin Salman share handshakes and wide smiles with presidents and prime ministers.
Instead, the gathering this November will likely be a virtual meet-up, stripping its host of the pomp that would have accompanied televised arrivals on Riyadh’s tarmac just two years after the killing of Saudi writer Jamal Khashoggi had cast a shadow over the crown prince, who U.S. intelligence says bore responsibility for the crime.
It was also to be another year of sweeping change for Saudi Arabia. The kingdom had only just begun to swing open its doors to tourists and eye-popping concerts when the pandemic struck, spawning social distancing and lockdowns.
#AbuDhabi's ADQ in talks for bank debt - sources - Reuters
Abu Dhabi's ADQ in talks for bank debt - sources - Reuters:
Abu Dhabi’s ADQ, a state-owned holding company, is in talks with banks for bank debt financing, two sources said.
One of them said that ADQ, formerly known as Abu Dhabi Developmental Holding Company, was looking to raise a loan of around $3 billion dollars.
ADQ did not respond to a request for comment on the discussions, reported earlier on Tuesday by Bloomberg.
Established in 2018, ADQ manages a portfolio of more than 90 companies in various non-oil sectors of Abu Dhabi’s economy, according to its website.
Abu Dhabi’s ADQ, a state-owned holding company, is in talks with banks for bank debt financing, two sources said.
One of them said that ADQ, formerly known as Abu Dhabi Developmental Holding Company, was looking to raise a loan of around $3 billion dollars.
ADQ did not respond to a request for comment on the discussions, reported earlier on Tuesday by Bloomberg.
Established in 2018, ADQ manages a portfolio of more than 90 companies in various non-oil sectors of Abu Dhabi’s economy, according to its website.
Oil prices rise on supply cuts, improving demand - Reuters
Oil prices rise on supply cuts, improving demand - Reuters:
Oil prices rose on Tuesday, with Brent crude rising above $40 a barrel, as the IEA increased its oil demand forecast for 2020 and as record supply cuts supported.
Brent crude LCOc1 rose 77 cents, or 1.94%, at $40.49 a barrel by 0918 GMT. U.S. oil CLc1 gained 61 cents, or 1.64%, to $37.73 a barrel.
In its monthly report on Tuesday, the International Energy Agency (IEA) forecast oil demand at 91.7 million barrels per day in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during the lockdowns.
But the agency warned that a fall in flying due to the coronavirus means the world will not return to pre-pandemic demand levels before 2022.
Oil prices rose on Tuesday, with Brent crude rising above $40 a barrel, as the IEA increased its oil demand forecast for 2020 and as record supply cuts supported.
Brent crude LCOc1 rose 77 cents, or 1.94%, at $40.49 a barrel by 0918 GMT. U.S. oil CLc1 gained 61 cents, or 1.64%, to $37.73 a barrel.
In its monthly report on Tuesday, the International Energy Agency (IEA) forecast oil demand at 91.7 million barrels per day in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during the lockdowns.
But the agency warned that a fall in flying due to the coronavirus means the world will not return to pre-pandemic demand levels before 2022.
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.
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