Oil edges up on OPEC output cut compliance; pandemic still weighs - Reuters:
Oil prices rose slightly on Thursday as a panel of OPEC and its allies met to review record oil supply cuts, even as the market remained concerned about additional coronavirus cases reported in parts of the United States and China.
Brent crude LCOc1 futures settled at $41.51 a barrel, up 80 cents or nearly 2%. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $38.84 a barrel, up 88 cents, or 2.3%.
“You’re going to see more OPEC compliance,” said Phil Flynn, senior oil analyst at Price Futures Group in Chicago. “I think we’d be a lot higher if it weren’t for these coronavirus fears.”
An OPEC+ panel pressed countries such as Iraq and Kazakhstan on Thursday to comply better with oil cuts and left the door open for extending or easing record production curbs from August.
Thursday, 18 June 2020
Covid-19 Airlines News: Emirates Adds Flights to New York, London and Singapore - Bloomberg
Covid-19 Airlines News: Emirates Adds Flights to Asia, Europe, US - Bloomberg:
Emirates and Qatar Airways will add more cities to their destinations and boost flights on existing routes as the carriers ramp up operations.
The Dubai-based Emirates’ decision follows the United Arab Emirates issuing guidelines for the resumption of flights. It will take the total number of Emirates destinations on offer to 40.
Qatar Airways’ additions will see its U.S. network rebuilt to 39 weekly flights by mid-July, including resumption of flights to New York and Los Angeles.
Emirates and Qatar Airways will add more cities to their destinations and boost flights on existing routes as the carriers ramp up operations.
The Dubai-based Emirates’ decision follows the United Arab Emirates issuing guidelines for the resumption of flights. It will take the total number of Emirates destinations on offer to 40.
Qatar Airways’ additions will see its U.S. network rebuilt to 39 weekly flights by mid-July, including resumption of flights to New York and Los Angeles.
OPEC+ Finalizes Deal on Compensation for Iraq Cuts Cheating - Bloomberg
OPEC+ Finalizes Deal on Compensation for Iraq Cuts Cheating - Bloomberg:
OPEC’s habitual quota cheat, Iraq, said it will implement its oil-production cuts in full this month and agreed on the details of how to compensate for falling short of its target in May.
The accord, reached in principle earlier in June, was finalized at a ministerial video conference on Thursday, according to delegates. It gives added credibility to the OPEC+ supply deal and could bring even more oil off the market just as the demand recovery from the coronavirus pandemic begins to accelerate.
Last month, the Organization of Petroleum Exporting Countries and its allies fell short of their 9.7 million-barrel-a-day cuts target by 1.26 million. That volume will be compensated in full in the coming months, said a delegate, who asked not to be named because the information is private.
“OPEC+ is taking its task very seriously,” Ben Luckock, co-head of oil trading at commodities house Trafigura Group, said in an interview prior to Thursday’s meeting. “Performance is going to be better. The message at the last meeting was taken very seriously, and none would like to go to the next OPEC+ meeting and be labeled a cheater.”
OPEC’s habitual quota cheat, Iraq, said it will implement its oil-production cuts in full this month and agreed on the details of how to compensate for falling short of its target in May.
The accord, reached in principle earlier in June, was finalized at a ministerial video conference on Thursday, according to delegates. It gives added credibility to the OPEC+ supply deal and could bring even more oil off the market just as the demand recovery from the coronavirus pandemic begins to accelerate.
Last month, the Organization of Petroleum Exporting Countries and its allies fell short of their 9.7 million-barrel-a-day cuts target by 1.26 million. That volume will be compensated in full in the coming months, said a delegate, who asked not to be named because the information is private.
“OPEC+ is taking its task very seriously,” Ben Luckock, co-head of oil trading at commodities house Trafigura Group, said in an interview prior to Thursday’s meeting. “Performance is going to be better. The message at the last meeting was taken very seriously, and none would like to go to the next OPEC+ meeting and be labeled a cheater.”
#Saudi Chase of $10 Billion Investment Goal Faltered Before Virus - Bloomberg
Saudi Chase of $10 Billion Investment Goal Faltered Before Virus - Bloomberg:
Saudi Arabia missed its $10 billion target for foreign direct investment by more than half last year, as damage from the coronavirus pandemic and low oil prices now threatens to throw plans further off track.
According to a report by the United Nations Conference on Trade and Development, FDI inflows reached $4.6 billion in 2019, up from $4.2 billion a year earlier. Outward investments were almost triple the level of inflows, but declined nearly 43% relative to 2018 even as state enterprises bought assets abroad and some wealthy Saudis looked for ways to move money out of the country.
Attracting more foreign investment is a key goal under Crown Prince Mohammed bin Salman’s “Vision 2030” plan to diversify the economy away from oil. Saudi Arabia’s inward investments increased mainly because of a few large mergers and acquisitions, including major oil contracts, according to the UN agency known as UNCTAD.
Saudi Arabia missed its $10 billion target for foreign direct investment by more than half last year, as damage from the coronavirus pandemic and low oil prices now threatens to throw plans further off track.
According to a report by the United Nations Conference on Trade and Development, FDI inflows reached $4.6 billion in 2019, up from $4.2 billion a year earlier. Outward investments were almost triple the level of inflows, but declined nearly 43% relative to 2018 even as state enterprises bought assets abroad and some wealthy Saudis looked for ways to move money out of the country.
Mideast Stocks: Most major Gulf indexes gain ahead of OPEC+ meet | ZAWYA MENA Edition
Mideast Stocks: Most major Gulf indexes gain ahead of OPEC+ meet | ZAWYA MENA Edition:
Most major stock markets in the Gulf closed on a positive note on Thursday, reversing losses earlier in the session, ahead of a meeting between OPEC producers and their allies to discuss future output strategy.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, are expected to hold an online meeting later on Thursday to discuss the future of a record 9.7 million barrels per day (bpd) output cut.
The benchmark index in Saudi Arabia rose 0.6%, with oil giant Saudi Aramco gaining 1.4% and petrochemical firm Saudi Basic Industries (SABIC) advancing 2.5%.
On Wednesday, Aramco completed its purchase of a 70% stake in SABIC for $69.1 billion and extended the payment period by three years to 2028.
Meanwhile, the kingdom's crude oil exports in April rose to 10.237 million barrels per day (bpd) from 7.391 million bpd in March, official data showed on Thursday.
The Qatari index gained 1%, led by a 2.1% increase in Qatar Islamic Bank and a 2.3% rise in petrochemical firm Industries Qatar.
Most major stock markets in the Gulf closed on a positive note on Thursday, reversing losses earlier in the session, ahead of a meeting between OPEC producers and their allies to discuss future output strategy.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, are expected to hold an online meeting later on Thursday to discuss the future of a record 9.7 million barrels per day (bpd) output cut.
The benchmark index in Saudi Arabia rose 0.6%, with oil giant Saudi Aramco gaining 1.4% and petrochemical firm Saudi Basic Industries (SABIC) advancing 2.5%.
On Wednesday, Aramco completed its purchase of a 70% stake in SABIC for $69.1 billion and extended the payment period by three years to 2028.
Meanwhile, the kingdom's crude oil exports in April rose to 10.237 million barrels per day (bpd) from 7.391 million bpd in March, official data showed on Thursday.
The Qatari index gained 1%, led by a 2.1% increase in Qatar Islamic Bank and a 2.3% rise in petrochemical firm Industries Qatar.
#SaudiArabia to Invest in Mukesh Ambani of India’s Jio Platforms - Bloomberg
Saudi Arabia to Invest in Mukesh Ambani of India’s Jio Platforms - Bloomberg:
Saudi Arabia’s sovereign fund will invest $1.5 billion in the telecommunications and digital services business controlled by Indian billionaire Mukesh Ambani, bringing total new investment in Jio Platforms Ltd. to $15.2 billion since April.
The Public Investment Fund will hold a 2.32% stake in the arm of Reliance Industries Ltd., the Mumbai-based company said in a statement Thursday.
The deal, the 11th into Jio in about two months, adds to the list of high-profile backers betting the company will disrupt India’s massive consumer market with its technology. Reliance Industries has vowed to pay down net debt to zero before March 2021, while using its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital business.
Ambani’s $65 billion digital unit has sold about 25% in stakes to buyers including Facebook Inc. and U.S. private equity firms including KKR & Co., Silver Lake Partners and General Atlantic.
Saudi Arabia’s sovereign fund will invest $1.5 billion in the telecommunications and digital services business controlled by Indian billionaire Mukesh Ambani, bringing total new investment in Jio Platforms Ltd. to $15.2 billion since April.
The Public Investment Fund will hold a 2.32% stake in the arm of Reliance Industries Ltd., the Mumbai-based company said in a statement Thursday.
The deal, the 11th into Jio in about two months, adds to the list of high-profile backers betting the company will disrupt India’s massive consumer market with its technology. Reliance Industries has vowed to pay down net debt to zero before March 2021, while using its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital business.
Ambani’s $65 billion digital unit has sold about 25% in stakes to buyers including Facebook Inc. and U.S. private equity firms including KKR & Co., Silver Lake Partners and General Atlantic.
#Saudi Aramco CEO says to use cash, debt to pay dividends - Reuters
Aramco CEO says to use cash, debt to pay dividends - Reuters:
Saudi Aramco will use a combination of cash and debt to pay its dividend of $18.75 billion for the first quarter of this year, the company’s chief executive said on Thursday.
“It will be a combination of both,” Amin Nasser told reporters during a phone call, when asked whether Aramco would tap debt markets to cover the dividend or use its own cash.
“We would like to use our free cash definitely most of time, but other debt instruments from banks or bonds are also available for us as we have a strong balance sheet.”
Saudi Aramco will use a combination of cash and debt to pay its dividend of $18.75 billion for the first quarter of this year, the company’s chief executive said on Thursday.
“It will be a combination of both,” Amin Nasser told reporters during a phone call, when asked whether Aramco would tap debt markets to cover the dividend or use its own cash.
“We would like to use our free cash definitely most of time, but other debt instruments from banks or bonds are also available for us as we have a strong balance sheet.”
UPDATE 1-Reliance says #Saudi's PIF to invest $1.49 bln in Jio - Reuters
UPDATE 1-Reliance says Saudi's PIF to invest $1.49 bln in Jio - Reuters:
Saudi Arabia’s Public Investment Fund (PIF) will buy a 2.32% stake in Reliance Industries’ digital unit Jio Platforms for 113.67 billion rupees ($1.49 billion), the Indian conglomerate said on Thursday.
The deal with the Saudi sovereign wealth fund means Reliance has now sold 24.7% of Jio Platforms and raised just over $15 billion from investors including Facebook.
The investment gives Jio Platforms — which comprises telecoms venture Jio Infocomm and music, movie apps — an enterprise value of 5.16 trillion rupees, Reliance said in a statement.
“We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth,” PIF Governor Yasir Al-Rumayyan said in the statement.
Saudi Arabia’s Public Investment Fund (PIF) will buy a 2.32% stake in Reliance Industries’ digital unit Jio Platforms for 113.67 billion rupees ($1.49 billion), the Indian conglomerate said on Thursday.
The deal with the Saudi sovereign wealth fund means Reliance has now sold 24.7% of Jio Platforms and raised just over $15 billion from investors including Facebook.
The investment gives Jio Platforms — which comprises telecoms venture Jio Infocomm and music, movie apps — an enterprise value of 5.16 trillion rupees, Reliance said in a statement.
“We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth,” PIF Governor Yasir Al-Rumayyan said in the statement.
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.
#Oman Steps Up Plan for Middle East’s Biggest Oil-Tank Farm - Bloomberg
Oman Steps Up Plan for Middle East’s Biggest Oil-Tank Farm - Bloomberg:
Oman’s ambitious goal of building the biggest oil-storage facility in the Middle East is finally progressing, more than seven years after the Gulf sultanate announced the plan.
Oman Tank Terminal Co. has almost finished constructing eight tanks to store crude for a new refinery near the town of Duqm on the Arabian Sea. It’s now pushing ahead with others that could be used by oil companies and traders, according to two people with knowledge of the project. That would increase Duqm’s capacity to at least 25 million barrels, according to OTTCO’s website.
The Ras Markaz Crude Oil Park could provide an alternative for energy traders and exporters eager to avoid the Strait of Hormuz, a choke-point at the mouth of the Persian Gulf that’s seen numerous flareups in recent years, including Iranian seizures of tankers. The Omani facility lies roughly 600 miles (966 kilometers) from the waterway. The United Arab Emirates port of Fujairah, the region’s largest hub with 14 million barrels of commercial crude-storage capacity, is less than 100 miles from Hormuz.
Oman’s ambitious goal of building the biggest oil-storage facility in the Middle East is finally progressing, more than seven years after the Gulf sultanate announced the plan.
Oman Tank Terminal Co. has almost finished constructing eight tanks to store crude for a new refinery near the town of Duqm on the Arabian Sea. It’s now pushing ahead with others that could be used by oil companies and traders, according to two people with knowledge of the project. That would increase Duqm’s capacity to at least 25 million barrels, according to OTTCO’s website.
The Ras Markaz Crude Oil Park could provide an alternative for energy traders and exporters eager to avoid the Strait of Hormuz, a choke-point at the mouth of the Persian Gulf that’s seen numerous flareups in recent years, including Iranian seizures of tankers. The Omani facility lies roughly 600 miles (966 kilometers) from the waterway. The United Arab Emirates port of Fujairah, the region’s largest hub with 14 million barrels of commercial crude-storage capacity, is less than 100 miles from Hormuz.
Outlook: Non-performing loans will hinder MENA banks' recovery | ZAWYA MENA Edition
Outlook: Non-performing loans will hinder MENA banks' recovery | ZAWYA MENA Edition:
COVID-19 has hit economies in the Middle East and North Africa (MENA) hard over the past few months, and although lockdowns are being scaled back now, economic recovery is likely to be sluggish.
The main obstacle to the region’s banks is the rise in non-performing loans (NPLs), according to London-based economic research consultancy Capital Economics.
"Measures to contain the virus have led to large swathes of economies being shut down, leading to job losses, falls in income, and a greater incidence of business failures. Indeed, a recent survey by the Dubai Chamber of Commerce found that a majority of businesses expect to close within the next year, with those in the travel and tourism sector expecting more acute pain in the coming months," Capital Economics' James Swanston wrote in a note.
Authorities across the region have taken steps in recent months to mitigate the risk that the current economic downturn triggers balance sheet strains. Central banks in the Gulf and Jordan have lowered interest rates in line with the Fed, while in Egypt, Morocco, and Tunisia have cut rates too. Most governments have directed local banks to give debt payment holidays to customers.
COVID-19 has hit economies in the Middle East and North Africa (MENA) hard over the past few months, and although lockdowns are being scaled back now, economic recovery is likely to be sluggish.
The main obstacle to the region’s banks is the rise in non-performing loans (NPLs), according to London-based economic research consultancy Capital Economics.
"Measures to contain the virus have led to large swathes of economies being shut down, leading to job losses, falls in income, and a greater incidence of business failures. Indeed, a recent survey by the Dubai Chamber of Commerce found that a majority of businesses expect to close within the next year, with those in the travel and tourism sector expecting more acute pain in the coming months," Capital Economics' James Swanston wrote in a note.
Authorities across the region have taken steps in recent months to mitigate the risk that the current economic downturn triggers balance sheet strains. Central banks in the Gulf and Jordan have lowered interest rates in line with the Fed, while in Egypt, Morocco, and Tunisia have cut rates too. Most governments have directed local banks to give debt payment holidays to customers.
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.
Oil prices stable ahead of OPEC+ meeting - Reuters
Oil prices stable ahead of OPEC+ meeting - Reuters:
Oil prices were broadly stable on Thursday as Brent erased losses in early European trading ahead of a meeting of OPEC members and their allies against the backdrop of demand concerns over new coronavirus cases in China and elsewhere.
Brent crude LCOc1 futures were up 2 cents at $40.73 a barrel at 0725 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures dropped 14 cents to $37.82 a barrel.
Both benchmarks were down about 2% earlier in the session.
“The market continues to balance re-opening optimism with unknowns around the economic uncertainties from a secondary outbreak of the virus,” said Stephen Innes, market strategist at AxiTrader.
Oil prices were broadly stable on Thursday as Brent erased losses in early European trading ahead of a meeting of OPEC members and their allies against the backdrop of demand concerns over new coronavirus cases in China and elsewhere.
Brent crude LCOc1 futures were up 2 cents at $40.73 a barrel at 0725 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures dropped 14 cents to $37.82 a barrel.
Both benchmarks were down about 2% earlier in the session.
“The market continues to balance re-opening optimism with unknowns around the economic uncertainties from a secondary outbreak of the virus,” said Stephen Innes, market strategist at AxiTrader.