Middle East, Gulf Deals: $25 Billion Inked in the Week - Bloomberg

Middle East, Gulf Deals: $25 Billion Inked in the Week - Bloomberg:

It’s been a busy week for dealmaking in the Middle East.

In a matter of days, about $25 billion in deals have been struck in the oil-rich region, including the year’s biggest infrastructure and banking transactions even as the coronavirus pandemic cripples overall dealmaking.

The blitz is quite rare for a region often known for political unrest and its influence on energy markets. It is also welcome relief for investment bankers looking to salvage what could be a difficult year for mergers and acquisitions.

M&A activity in the Middle East is reviving as governments take measures to diversify their economies away from oil. They’re also seeking to create more efficiencies through consolidation or by bringing in overseas investors. Sovereign wealth funds including Saudi Arabia’s Public Investment Fund are deploying billions of dollars to buy stakes in companies ranging from Facebook Inc. to Citigroup Inc. to take advantage of a downturn in prices.

Oil dips on rise in U.S. coronavirus cases, set for weekly fall - Reuters

Oil dips on rise in U.S. coronavirus cases, set for weekly fall - Reuters:

Oil prices settled lower on Friday as new coronavirus cases spiked in the United States and China, and on growing concerns about rising U.S. output ticking up while crude stockpiles sat at record highs.

Brent crude futures settled down 3 cents at $40.91, falling 1% on the week. U.S. West Texas Intermediate (WTI) crude futures fell 23 cents to $38.49, down 1.6% on the week.

Earlier gains, supported by optimism over rising road traffic boosting fuel demand, were erased in U.S. trading on fears that spiking COVID-19 infections in large gasoline-consuming U.S. states could stall the demand recovery. Cases have risen sharply in California, Texas and Florida, the three most populous U.S. states.

Friday morning, Texas Governor Greg Abbott reversed the state’s reopening plan, ordering most bars to close due to the surge in cases.

How Much Money Has #SaudiArabia Lost From Oil-Price War? - Bloomberg

How Much Money Has Saudi Arabia Lost From Oil-Price War? - Bloomberg:

Oil prices fell so much in April that even with record volumes of exports, Saudi Arabia’s earnings from crude plunged 65% from a year earlier. Brent has risen almost 60% since the beginning of May to around $40 a barrel, but that’s in large part because the kingdom and other major producers such as Russia have cut supplies. That means Saudi finances are unlikely to get a major boost soon.

RPT-Rainy day hastens sovereign wealth funds' refocus to home - Reuters

RPT-Rainy day hastens sovereign wealth funds' refocus to home - Reuters:

Famed for snapping up glitzy real estate and stakes in troubled international banks during the global financial crisis, sovereign wealth funds are investing more at home, a trend set to accelerate in the wake of the economic carnage wrought by COVID-19.

Some of these state-owned entities, such as Singapore’s Temasek Holdings, already acted more as development funds aimed at supporting their countries’ economies, but many of them are considered “rainy day” funds - meaning they will have a big role in helping governments to manage the fallout from the pandemic.

There has been a flurry of recent domestic deals, such as Turkey’s fund injecting 21 billion lira ($3.1 billion) into three state banks and Temasek supporting a $1.5 billion rights issue by Sembcorp Marine.

That’s in addition to withdrawals from the Nigerian and Norwegian funds to help their governments deal with the economic impact of the virus.

Oil prices inch up as demand upswing counters virus concerns - Reuters

Oil prices inch up as demand upswing counters virus concerns - Reuters:

Oil prices inched up on Friday as the bullish impetus from signs of fuel demand recovery was kept in check by a rising number of new coronavirus cases in the United States and China and tentative expecations of U.S. output ticking up.

Brent crude LCOc1 futures were 38 cents higher at $41.43 at 0829 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 29 cents at $39.01.

Both contracts are on track for a weekly fall of around 1.7% after record U.S. crude inventory data dragged prices down on Wednesday.

Analysts said satellite data showing a strong pick-up in traffic in China, Europe and across the United States pointed to an improvement in fuel demand.