Oil dives over 5% as U.S. crude stocks hit record, COVID cases mount - Reuters:
Oil prices tumbled over 5%, or more than $2 a barrel on Wednesday, after U.S. crude storage hit another record and coronavirus cases rebounded in countries like Germany and surged in heavily populated areas of the United States.
The United States had its second-largest rise in infections since the pandemic began. Mounting infections there as well as in China, Latin America and India have unnerved investors and pressured oil prices.
“The market is signalling that if it doesn’t get constant reassurance that we are emerging from the breakdown in demand that happened because of the pandemic, then higher oil prices really don’t make sense,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
Brent crude settled at $40.31 a barrel, down $2.32, or 5.4%. On Tuesday, Brent hit its highest price since early March, just before the pandemic and Saudi-Russia price war roiled markets.
U.S. West Texas Intermediate (WTI) crude settled at $38.01 a barrel, losing $2.36, or 5.8%.
Wednesday, 24 June 2020
Mukesh Ambani says after 'unprecedented' fund raising, RIL working to close Aramco deal - The Economic Times
Mukesh Ambani says after 'unprecedented' fund raising, RIL working to close Aramco deal - The Economic Times:
Billionaire Mukesh Ambani has said that after the recent fund raising activity, which he refers to as an unprecedented event in Indian corporate history, the company is now moving towards closing its deal with Saudi Aramco.
RelianceNSE 0.40 % Industries (RIL) raised Rs 168,818 crore in two months through the country’s largest ever rights issue and series of stake sale deals in its arm Jio Platforms, delivering on a promise given to shareholders in August last year. The company is now working on delivering another promise-- stake sale in its oil-to-chemicals business to Saudi Aramco.
“In the energy businesses, Reliance is working to complete the contours of a strategic partnership with Saudi Aramco. The partnership gives our refineries access to a wide portfolio of value-accretive crude grades and enhanced feedstock security for a higher oil-to-chemicals conversion,” Ambani said in the company’s annual report for 2019-20.
Billionaire Mukesh Ambani has said that after the recent fund raising activity, which he refers to as an unprecedented event in Indian corporate history, the company is now moving towards closing its deal with Saudi Aramco.
RelianceNSE 0.40 % Industries (RIL) raised Rs 168,818 crore in two months through the country’s largest ever rights issue and series of stake sale deals in its arm Jio Platforms, delivering on a promise given to shareholders in August last year. The company is now working on delivering another promise-- stake sale in its oil-to-chemicals business to Saudi Aramco.
“In the energy businesses, Reliance is working to complete the contours of a strategic partnership with Saudi Aramco. The partnership gives our refineries access to a wide portfolio of value-accretive crude grades and enhanced feedstock security for a higher oil-to-chemicals conversion,” Ambani said in the company’s annual report for 2019-20.
NMC administrators consider sale of international fertility business: sources - Reuters
NMC administrators consider sale of international fertility business: sources - Reuters:
The administrators of hospital operator NMC Health are weighing the sale of the company’s international fertility business, which could be worth more that $500 million, sources familiar with the matter said on Wednesday.
Administrators from Alvarez & Marsal were appointed in April to oversee NMC Health after months of turmoil over its finances.
NMC, founded by Indian entrepreneur B.R. Shetty, is the largest private sector healthcare provider in the UAE.
The administrators have held early talks with banks about the potential sale ahead of a formal launch of the sale process, two sources said.
The administrators of hospital operator NMC Health are weighing the sale of the company’s international fertility business, which could be worth more that $500 million, sources familiar with the matter said on Wednesday.
Administrators from Alvarez & Marsal were appointed in April to oversee NMC Health after months of turmoil over its finances.
NMC, founded by Indian entrepreneur B.R. Shetty, is the largest private sector healthcare provider in the UAE.
The administrators have held early talks with banks about the potential sale ahead of a formal launch of the sale process, two sources said.
MIDEAST STOCKS- #Saudi index retreats on haj curbs; Egypt outperforms - Agricultural Commodities - Reuters
CORRECTED-MIDEAST STOCKS-Saudi index retreats on haj curbs; Egypt outperforms - Agricultural Commodities - Reuters:
Saudi Arabian shares ended lower on
Wednesday, following the kingdom's decision to bar visitors from
abroad from the annual haj pilgrimage due to the coronavirus,
while the Egyptian bourse advanced with broad-based gains among
its constituents.
Saudi Arabia's benchmark index was down 0.7%, hurt
by a 1.9% fall in Al Rajhi Bank and a 1.4% decline in
petrochemical firm Saudi Basic Industries.
The kingdom is to limit the number of domestic haj pilgrims
to around 1,000 to prevent the spread of the coronavirus, after
barring Muslims abroad from the rite for the first year in
modern times.
Official data showed that Saudi Arabia earns around $12
billion a year from haj and the year-round pilgrimage umrah.
Saudi Arabian shares ended lower on
Wednesday, following the kingdom's decision to bar visitors from
abroad from the annual haj pilgrimage due to the coronavirus,
while the Egyptian bourse advanced with broad-based gains among
its constituents.
Saudi Arabia's benchmark index was down 0.7%, hurt
by a 1.9% fall in Al Rajhi Bank and a 1.4% decline in
petrochemical firm Saudi Basic Industries.
The kingdom is to limit the number of domestic haj pilgrims
to around 1,000 to prevent the spread of the coronavirus, after
barring Muslims abroad from the rite for the first year in
modern times.
Official data showed that Saudi Arabia earns around $12
billion a year from haj and the year-round pilgrimage umrah.
Shale Oil Recovery Is Seen Taking Years After Decade of Excess - Bloomberg
Shale Oil Recovery Is Seen Taking Years After Decade of Excess - Bloomberg:
As oil prices tick up to $40 a barrel following a pandemic-induced plunge, there’s a sense the shale industry is snapping back to life with Continental Resources Inc., EOG Resources Inc. and Parsley Energy Inc. all saying they’re restarting closed wells.
But top industry forecasters are painting a far darker picture. The reopenings, they say, will do little to bring new growth to an industry being increasingly starved of cash by Wall Street after a decade of excess. Even before the pandemic, investors were demanding companies spend no more than they earn. Now, that’s become a major barrier to future growth.
Looking out 18 months, U.S. output will still be around 16% below its peak in February, according to the average of five major forecasters surveyed by Bloomberg. It will probably be at least 2023 before the U.S. again hits its record close to 13 million barrels a day.
As oil prices tick up to $40 a barrel following a pandemic-induced plunge, there’s a sense the shale industry is snapping back to life with Continental Resources Inc., EOG Resources Inc. and Parsley Energy Inc. all saying they’re restarting closed wells.
But top industry forecasters are painting a far darker picture. The reopenings, they say, will do little to bring new growth to an industry being increasingly starved of cash by Wall Street after a decade of excess. Even before the pandemic, investors were demanding companies spend no more than they earn. Now, that’s become a major barrier to future growth.
Looking out 18 months, U.S. output will still be around 16% below its peak in February, according to the average of five major forecasters surveyed by Bloomberg. It will probably be at least 2023 before the U.S. again hits its record close to 13 million barrels a day.
Middle East Deals: #Kuwait Luxury Retailer Boutiqaat Hires Citi - Bloomberg
Middle East Deals: Kuwait Luxury Retailer Boutiqaat Hires Citi - Bloomberg:
Kuwait’s Boutiqaat hired Citigroup Inc. to explore strategic options for the online retailer of luxury goods and cosmetics, according to people with knowledge of the matter.
The U.S. bank is working with the company on possibilities including a partial sale of the business and fund raising, the people said, asking not to be identified as the discussions are private.
Boutiqaat is seeking a valuation of about $700 million, two of the people said, while another person familiar with the company’s plans said it’s targeting around $1 billion. The company was valued at about $500 million in a 2019 funding round, they said.
Kuwait’s Boutiqaat hired Citigroup Inc. to explore strategic options for the online retailer of luxury goods and cosmetics, according to people with knowledge of the matter.
The U.S. bank is working with the company on possibilities including a partial sale of the business and fund raising, the people said, asking not to be identified as the discussions are private.
Boutiqaat is seeking a valuation of about $700 million, two of the people said, while another person familiar with the company’s plans said it’s targeting around $1 billion. The company was valued at about $500 million in a 2019 funding round, they said.
MSCI to enter #Kuwait stocks into Emerging Market index in November | ZAWYA MENA Edition
MSCI to enter Kuwait stocks into Emerging Market index in November | ZAWYA MENA Edition:
Morgan Stanley Capital International (MSCI) will implement the reclassification of the MSCI Kuwait Indexes from frontier market status to Emerging Market in November 2020.
The step will coincide with the November 2020 semi-annual index review, Kuwait Capital Market Authority said in a tweet.
On April 9, CMA said though Kuwait has met the requirements of the reclassification, the MSCI put off the move until November due to the massive fallout of COVID-19 on global economy and investment patterns.
The health precautions and preventive measures implemented by countries and companies around the globe to stem the tide of the pandemic hindered the operational ability of investors and hampered their accessibility to the firms listed on Kuwait stock market in last May, CMA noted.
Morgan Stanley Capital International (MSCI) will implement the reclassification of the MSCI Kuwait Indexes from frontier market status to Emerging Market in November 2020.
The step will coincide with the November 2020 semi-annual index review, Kuwait Capital Market Authority said in a tweet.
On April 9, CMA said though Kuwait has met the requirements of the reclassification, the MSCI put off the move until November due to the massive fallout of COVID-19 on global economy and investment patterns.
The health precautions and preventive measures implemented by countries and companies around the globe to stem the tide of the pandemic hindered the operational ability of investors and hampered their accessibility to the firms listed on Kuwait stock market in last May, CMA noted.
DP World markets perpetual dollar sukuk at around 6.625% - document - Reuters
DP World markets perpetual dollar sukuk at around 6.625% - document - Reuters:
Dubai-based port operator DP World started marketing U.S. dollar denominated perpetual sukuk, or Islamic bonds, with an initial price guidance of around 6.625%, a document showed on Wednesday.
Perpetual bonds are similar to an equity instrument in that they have no maturity date.
The perpetual sukuk DP Worlds is offering are non-callable for 5-1/2 years.
Dubai-based port operator DP World started marketing U.S. dollar denominated perpetual sukuk, or Islamic bonds, with an initial price guidance of around 6.625%, a document showed on Wednesday.
Perpetual bonds are similar to an equity instrument in that they have no maturity date.
The perpetual sukuk DP Worlds is offering are non-callable for 5-1/2 years.
IMF sees sharper than anticipated recession in #SaudiArabia - Reuters
IMF sees sharper than anticipated recession in Saudi Arabia - Reuters:
Saudi Arabia’s economy will shrink by 6.8% this year, the International Monetary Fund (IMF) said on Wednesday, a sharper decline than the 2.3% contraction estimated in April, as low oil prices and the coronavirus pandemic hit the kingdom hard.
In an update of its April World Economic Outlook forecast, the IMF said it now expects a deeper global recession in 2020 and a slower recovery in 2021, as the coronavirus crisis intensifies in many emerging and developing countries.
In Saudi Arabia, the world’s largest oil exporter and the Gulf’s largest economy, virus containment measures have crippled nascent sectors of the non-oil economy such as tourism and entertainment, and lower oil prices have slashed state revenues.
Saudi Arabia’s economy will shrink by 6.8% this year, the International Monetary Fund (IMF) said on Wednesday, a sharper decline than the 2.3% contraction estimated in April, as low oil prices and the coronavirus pandemic hit the kingdom hard.
In an update of its April World Economic Outlook forecast, the IMF said it now expects a deeper global recession in 2020 and a slower recovery in 2021, as the coronavirus crisis intensifies in many emerging and developing countries.
In Saudi Arabia, the world’s largest oil exporter and the Gulf’s largest economy, virus containment measures have crippled nascent sectors of the non-oil economy such as tourism and entertainment, and lower oil prices have slashed state revenues.
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.
Oil falls on rising stocks, worries of new virus wave - Reuters
Oil falls on rising stocks, worries of new virus wave - Reuters:
Oil prices fell on Wednesday, reversing the previous session’s surge, as record high inventories and worries about a second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.
Brent crude was down 81 cents, or 1.9%, to $41.82 a barrel by 1148 GMT a day after hitting its highest level since a price plunge began in March.
The benchmark crude has climbed from below $16 in April but remains a third lower than its level at the end of 2019.
U.S. West Texas Intermediate (WTI) crude fell 91 cents, or 2.2%, to $39.46 a barrel.
A rising number of coronavirus cases in the United States, China, Latin America and India has unnerved investors.
Oil prices fell on Wednesday, reversing the previous session’s surge, as record high inventories and worries about a second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.
Brent crude was down 81 cents, or 1.9%, to $41.82 a barrel by 1148 GMT a day after hitting its highest level since a price plunge began in March.
The benchmark crude has climbed from below $16 in April but remains a third lower than its level at the end of 2019.
U.S. West Texas Intermediate (WTI) crude fell 91 cents, or 2.2%, to $39.46 a barrel.
A rising number of coronavirus cases in the United States, China, Latin America and India has unnerved investors.
Moody’s Downgrades #Oman for a Second Time in 2020 as Oil Dips - Bloomberg
Moody’s Downgrades Oman for a Second Time in 2020 as Oil Dips - Bloomberg:
Oman’s sovereign rating was cut for a second time this year by Moody’s Investors Service as a lower crude price environment will likely slash the Gulf nation’s oil revenue.
The rating company downgraded the sovereign a notch lower to Ba3 -- three levels into its non-investment grade scale, and changed its outlook to negative, according to a statement Tuesday. In March, Moody’s put Oman on review for the downgrade, saying the country’s low fiscal strength will likely place pressure on its finances. Its assessment is now on par with S&P Global Ratings and one level below that of Fitch Ratings.
“The downgrade reflects the conclusion that in a lower oil price environment, which Moody’s now assumes will persist into the medium term, the government will unlikely be able to significantly offset the oil revenue loss and avoid a large and durable deterioration in its debt and debt affordability metrics or erosion of its fiscal and foreign currency buffers,” according to the statement.
Oman’s sovereign rating was cut for a second time this year by Moody’s Investors Service as a lower crude price environment will likely slash the Gulf nation’s oil revenue.
The rating company downgraded the sovereign a notch lower to Ba3 -- three levels into its non-investment grade scale, and changed its outlook to negative, according to a statement Tuesday. In March, Moody’s put Oman on review for the downgrade, saying the country’s low fiscal strength will likely place pressure on its finances. Its assessment is now on par with S&P Global Ratings and one level below that of Fitch Ratings.
“The downgrade reflects the conclusion that in a lower oil price environment, which Moody’s now assumes will persist into the medium term, the government will unlikely be able to significantly offset the oil revenue loss and avoid a large and durable deterioration in its debt and debt affordability metrics or erosion of its fiscal and foreign currency buffers,” according to the statement.
Abraaj founder Arif Naqvi fights in court against extradition to US - Arabianbusiness
Abraaj founder Arif Naqvi fights in court against extradition to US - Arabianbusiness:
Attorneys for Arif Naqvi, the embattled founder of collapsed private equity firm Abraaj Group, are arguing in court that the UK should refuse American requests to extradite him to the US to face fraud charges.
Naqvi is one of six people facing US charges that the firm defrauded a number of investors, including the Bill & Melinda Gates Foundation.
In court, Naqvi’s lawyers are arguing that London was the hub of Abraaj’s operations before its collapse in 2018, in addition to family ties to the city.
“If the group had a beating heart it was in Dubai, but its mind and control was wherever Arif was, which was often in London, which is where the main investor coverage operation was,” former Abraaj general counsel was quoted as saying in the defence’s skeleton argument.
Attorneys for Arif Naqvi, the embattled founder of collapsed private equity firm Abraaj Group, are arguing in court that the UK should refuse American requests to extradite him to the US to face fraud charges.
Naqvi is one of six people facing US charges that the firm defrauded a number of investors, including the Bill & Melinda Gates Foundation.
In court, Naqvi’s lawyers are arguing that London was the hub of Abraaj’s operations before its collapse in 2018, in addition to family ties to the city.
“If the group had a beating heart it was in Dubai, but its mind and control was wherever Arif was, which was often in London, which is where the main investor coverage operation was,” former Abraaj general counsel was quoted as saying in the defence’s skeleton argument.
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.
MIDEAST STOCKS- #UAE bourses gain in early trade while #Saudi, #Qatar dip - Reuters
MIDEAST STOCKS-UAE bourses gain in early trade while Saudi, Qatar dip - Reuters:
The Dubai stock market rose early on Wednesday, holding on track for a third straight session of gains, while other major Gulf markets moved sideways.
Dubai’s main share index added 0.6%, with its largest lender Emirates NBD gaining 1.4% and blue-chip developer Emaar Properties rising 0.7%.
Emirates NBD began cutting hundreds of jobs this week after the impact of the coronavirus crisis accelerated planned lay-offs, Reuters reported, citing three sources.
Although the full scale of the redundancies was not immediately clear, one source estimated that the lender is cutting some 10% of its staff, equivalent to around 800 people.
The Dubai stock market rose early on Wednesday, holding on track for a third straight session of gains, while other major Gulf markets moved sideways.
Dubai’s main share index added 0.6%, with its largest lender Emirates NBD gaining 1.4% and blue-chip developer Emaar Properties rising 0.7%.
Emirates NBD began cutting hundreds of jobs this week after the impact of the coronavirus crisis accelerated planned lay-offs, Reuters reported, citing three sources.
Although the full scale of the redundancies was not immediately clear, one source estimated that the lender is cutting some 10% of its staff, equivalent to around 800 people.
Oil prices mixed as U.S. gasoline stocks shrink, but crude stockpiles grow - Reuters
Oil prices mixed as U.S. gasoline stocks shrink, but crude stockpiles grow - Reuters:
Oil futures were mixed on Wednesday as concerns about oversupply in the market, stoked by an rise in U.S. crude inventories, were offset by a drop in gasoline stocks that lifted hopes for fuel demand recovery amid the re-opening of the global economy.
Brent crude was up 12 cents, or 0.3%, at $42.75 a barrel by 0643 GMT after falling to $42.30 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures fell 1 cents to $40.34 a barrel, paring some of earlier losses.
U.S. crude inventories rose by a much bigger than expected 1.7 million barrels last week, according to industry group the American Petroleum Institute (API), well ahead of analysts’ expectations for a 300,000-barrel build.
Oil futures were mixed on Wednesday as concerns about oversupply in the market, stoked by an rise in U.S. crude inventories, were offset by a drop in gasoline stocks that lifted hopes for fuel demand recovery amid the re-opening of the global economy.
Brent crude was up 12 cents, or 0.3%, at $42.75 a barrel by 0643 GMT after falling to $42.30 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures fell 1 cents to $40.34 a barrel, paring some of earlier losses.
U.S. crude inventories rose by a much bigger than expected 1.7 million barrels last week, according to industry group the American Petroleum Institute (API), well ahead of analysts’ expectations for a 300,000-barrel build.