Oil steadies as economic data overshadows coronavirus worries - Reuters:
Oil prices settled little changed on Tuesday as demand concerns due to a new surge in coronavirus cases overshadowed U.S. government forecasts for lower production.
Brent crude LCOc1 futures settled at $43.08 a barrel, down 2 cents in the session. U.S. West Texas Intermediate CLc1 settled down 1 cent at $40.62 a barrel.
Early in the session, the market popped because of the higher forecast demand, and more bullish jobs data, said Phil Flynn, senior analyst at Price Futures Group in Chicago. But the market gave up the gains as focus returned to rising coronavirus cases.
The U.S. Energy Information Administration (EIA), forecast that global oil demand would recover through the end of 2021, predicting demand of 101.1 million barrels per day (bpd) by the fourth quarter of next year.
Tuesday, 7 July 2020
Banks and real estate pull up #UAE stock indices | Analysis – Gulf News
Banks and real estate pull up UAE stock indices | Analysis – Gulf News:
The UAE stock indices rallied by more than 0.50 per cent on Tuesday, continuing their bullish momentum of recent days.
The gains were led by banks and real estate companies, on both DFM and ADX.
The stocks that contributed most to gains are Emaar Properties, Emirates Integrated Telecommunications and Emirates NBD on DFM, while FAB and Aldar Properties pulled up ADX.
A major news of for the day was ADIB raising the foreign ownership limit to 40 per cent from 25 per cent. This year Dubai Islamic Bank had also announced an increase to the foreign ownership limits, but data suggests that the limits have not been legally raised.
Others to have higher foreign exposure limits are Agthia Group and Methaq Takaful Insurance. It’s debatable on whether raising these limits will make any practical difference.
The UAE stock indices rallied by more than 0.50 per cent on Tuesday, continuing their bullish momentum of recent days.
The gains were led by banks and real estate companies, on both DFM and ADX.
The stocks that contributed most to gains are Emaar Properties, Emirates Integrated Telecommunications and Emirates NBD on DFM, while FAB and Aldar Properties pulled up ADX.
A major news of for the day was ADIB raising the foreign ownership limit to 40 per cent from 25 per cent. This year Dubai Islamic Bank had also announced an increase to the foreign ownership limits, but data suggests that the limits have not been legally raised.
Others to have higher foreign exposure limits are Agthia Group and Methaq Takaful Insurance. It’s debatable on whether raising these limits will make any practical difference.
MIDEAST STOCKS-Banks, property shares buoy #UAE; Egypt retreats - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks, property shares buoy UAE; Egypt retreats - Agricultural Commodities - Reuters:
Stock markets in the United Arab Emirates
(UAE) closed higher on Tuesday, led by financials and property
shares, while Egypt ended marginally lower as tobacco
heavyweight Eastern Company lost more than 3%.
Dubai's main share index gained 0.5%, led by a 1.5%
rise in blue-chip developer Emaar Properties and a
0.5% gain in Emirates NBD Bank.
Amlak Finance surged 14.6%, its biggest intraday
gain since Dec. 2019, after signing an agreement with Dubai Land
Department allowing customers to invest in properties listed by
the firm.
The Abu Dhabi index rose 0.5%, with the country's
largest lender First Abu Dhabi Bank rising 0.9%, while
Abu Dhabi Islamic Bank added 1.3%, a day after the
sharia-compliant lender said it had raised its foreign ownership
limit to 40% from 25%.
However, gains were capped by Abu Dhabi National Energy
Company (Taqa) shedding 4.8% after it agreed to
finance the UAE's largest gas-fired power plant, expected to
cost approximately 4.2 billion dirhams ($1.14 billion).
Stock markets in the United Arab Emirates
(UAE) closed higher on Tuesday, led by financials and property
shares, while Egypt ended marginally lower as tobacco
heavyweight Eastern Company lost more than 3%.
Dubai's main share index gained 0.5%, led by a 1.5%
rise in blue-chip developer Emaar Properties and a
0.5% gain in Emirates NBD Bank.
Amlak Finance surged 14.6%, its biggest intraday
gain since Dec. 2019, after signing an agreement with Dubai Land
Department allowing customers to invest in properties listed by
the firm.
The Abu Dhabi index rose 0.5%, with the country's
largest lender First Abu Dhabi Bank rising 0.9%, while
Abu Dhabi Islamic Bank added 1.3%, a day after the
sharia-compliant lender said it had raised its foreign ownership
limit to 40% from 25%.
However, gains were capped by Abu Dhabi National Energy
Company (Taqa) shedding 4.8% after it agreed to
finance the UAE's largest gas-fired power plant, expected to
cost approximately 4.2 billion dirhams ($1.14 billion).
Oil slips as U.S. virus spike stokes demand worries - Reuters
Oil slips as U.S. virus spike stokes demand worries - Reuters:
Oil prices edged lower on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.
Brent crude futures declined by 7 cents, or 0.16%, to $43.03, by 1404 GMT, after hitting a session low of $42.46. U.S. West Texas Intermediate (WTI) crude futures fell 12 cents, or 0.30%, to $40.51 a barrel, having fallen to $39.90 earlier in the day.
#“Oil prices are lower today on concerns that the surge in coronavirus cases in the U.S. will limit a recovery in fuel demand,” bank RBC said.
#Sixteen U.S. states have reported record increases in new COVID-19 cases in the first five days of July, according to a Reuters tally.
Oil prices edged lower on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.
Brent crude futures declined by 7 cents, or 0.16%, to $43.03, by 1404 GMT, after hitting a session low of $42.46. U.S. West Texas Intermediate (WTI) crude futures fell 12 cents, or 0.30%, to $40.51 a barrel, having fallen to $39.90 earlier in the day.
#“Oil prices are lower today on concerns that the surge in coronavirus cases in the U.S. will limit a recovery in fuel demand,” bank RBC said.
#Sixteen U.S. states have reported record increases in new COVID-19 cases in the first five days of July, according to a Reuters tally.
Thermometers in hand, #Dubai opens for tourists amid pandemic
Thermometers in hand, Dubai opens for tourists amid pandemic:
From French soccer jerseys to slick online campaigns, Dubai is trumpeting the fact that it reopened for tourism on Tuesday — but what that means for this sheikhdom that relies on the dollars, pounds, rupees and yuan spent by travelers remains in question.
With travel uncertain and the coronavirus still striking nations Dubai relies on for tourists, this city-state wants to begin coaxing people back to its beaches and its cavernous shopping malls. By instilling the idea that Dubai is safe, authorities likely hope to fuel interest in the sheikhdom ahead of its crucial winter months for tourism.
But all that depends on controlling a virus that the United Arab Emirates as a whole continues to fight. Armed with thermometers, mandatory face masks and hand sanitizer, Dubai is wagering it is ready.
“I think that will give people confidence — when they’re ready to travel — to come to Dubai,” said Paul Bridger, the corporate director for operations at DubPublish Postai-based Rove Hotels. “It will take time to come back. ... We are expecting to be one of the first markets to be back because of the confidence that we can give to people that are traveling.”
From French soccer jerseys to slick online campaigns, Dubai is trumpeting the fact that it reopened for tourism on Tuesday — but what that means for this sheikhdom that relies on the dollars, pounds, rupees and yuan spent by travelers remains in question.
With travel uncertain and the coronavirus still striking nations Dubai relies on for tourists, this city-state wants to begin coaxing people back to its beaches and its cavernous shopping malls. By instilling the idea that Dubai is safe, authorities likely hope to fuel interest in the sheikhdom ahead of its crucial winter months for tourism.
But all that depends on controlling a virus that the United Arab Emirates as a whole continues to fight. Armed with thermometers, mandatory face masks and hand sanitizer, Dubai is wagering it is ready.
“I think that will give people confidence — when they’re ready to travel — to come to Dubai,” said Paul Bridger, the corporate director for operations at DubPublish Postai-based Rove Hotels. “It will take time to come back. ... We are expecting to be one of the first markets to be back because of the confidence that we can give to people that are traveling.”
#UAE banks can withstand shocks of any size: central bank - Reuters
UAE banks can withstand shocks of any size: central bank - Reuters:
The United Arab Emirates Central Bank said on Tuesday the country’s banking sector can withstand any scale of shock as banks are well capitalised, despite forecasting a deterioration of credit metrics in the country.
Ratings agency Moody’s said on Monday the twin challenges of the coronavirus crisis and the drop in oil prices will hit bank profits hard in the oil-producing Gulf region.
In a statement, the UAE central bank said that while the coronavirus pandemic poses challenges to banks, “our stress tests demonstrate that the UAE banking sector is able to withstand macro-financial shocks of any size”.
The capital adequacy rate among UAE banks stood at 16.9% as of the end of March and the eligible liquid asset rate was 16.6% as of the end of May - “well in excess of the minimum regulatory requirements”, it said.
The United Arab Emirates Central Bank said on Tuesday the country’s banking sector can withstand any scale of shock as banks are well capitalised, despite forecasting a deterioration of credit metrics in the country.
Ratings agency Moody’s said on Monday the twin challenges of the coronavirus crisis and the drop in oil prices will hit bank profits hard in the oil-producing Gulf region.
In a statement, the UAE central bank said that while the coronavirus pandemic poses challenges to banks, “our stress tests demonstrate that the UAE banking sector is able to withstand macro-financial shocks of any size”.
The capital adequacy rate among UAE banks stood at 16.9% as of the end of March and the eligible liquid asset rate was 16.6% as of the end of May - “well in excess of the minimum regulatory requirements”, it said.
Despite downturn, #SaudiArabia pursues goal of doubling size of capital city - Reuters
Despite downturn, Saudi Arabia pursues goal of doubling size of capital city - Reuters:
Saudi Arabia is pressing on with plans to double the size and population of its capital city in the next decade, a government official said, despite an economic downturn due to the coronavirus crisis and low oil prices.
Fahd Al-Rasheed, president of Riyadh’s royal commission, said the government has already committed some $266.6 billion for ongoing and new projects as part of total investments of some $800 billion over the next 10 years in participation with the private sector to transform the city.
“The idea is for Riyadh to become a 15 million person city by 2030,” he told Reuters, saying growth would create jobs.
“Riyadh is already the epicentre of economic development in the country and the region ... We have now the ambitious plan under Vision 2030 of doubling both our economy and population over the next 10 years.”
Saudi Arabia is pressing on with plans to double the size and population of its capital city in the next decade, a government official said, despite an economic downturn due to the coronavirus crisis and low oil prices.
Fahd Al-Rasheed, president of Riyadh’s royal commission, said the government has already committed some $266.6 billion for ongoing and new projects as part of total investments of some $800 billion over the next 10 years in participation with the private sector to transform the city.
“The idea is for Riyadh to become a 15 million person city by 2030,” he told Reuters, saying growth would create jobs.
“Riyadh is already the epicentre of economic development in the country and the region ... We have now the ambitious plan under Vision 2030 of doubling both our economy and population over the next 10 years.”
In The Physical Oil Market, Sour Barrels Trade at Sweet Prices - Bloomberg
In The Physical Oil Market, Sour Barrels Trade at Sweet Prices - Bloomberg:
Leaving behind the waters of the Caribbean Sea, the 1,100-feet long oil tanker Maran Apollo is emblematic of the wider petroleum market.
Steaming at 11.5 knots, she’s heading toward China, where oil demand is fast recovering, hauling a cargo of two million barrels of U.S. crude. But her voyage didn’t start a few days ago. She loaded in early May, and with no buyers during the worst of the coronavirus outbreak, the supertanker stood floating in the U.S. Gulf of Mexico for almost two months, waiting for better times.
Only a few days ago, she weighed anchor and left for the Chinese port of Rizhao -- a sign that refiners are starting to pull in crude that went unwanted for months.
It’s not any kind oil on board, though. Refiners are competing for barrels in one corner of the market known as medium-heavy sour crude -- barrels with a higher content in sulfur and relatively dense. It’s the kind of oil that Saudi Arabia and its allies pump. And also the type of crude that’s pumped offshore in the U.S. Gulf of Mexico -- and that’s what’s in the Maran Apollo’s tanks.
Leaving behind the waters of the Caribbean Sea, the 1,100-feet long oil tanker Maran Apollo is emblematic of the wider petroleum market.
Steaming at 11.5 knots, she’s heading toward China, where oil demand is fast recovering, hauling a cargo of two million barrels of U.S. crude. But her voyage didn’t start a few days ago. She loaded in early May, and with no buyers during the worst of the coronavirus outbreak, the supertanker stood floating in the U.S. Gulf of Mexico for almost two months, waiting for better times.
Only a few days ago, she weighed anchor and left for the Chinese port of Rizhao -- a sign that refiners are starting to pull in crude that went unwanted for months.
It’s not any kind oil on board, though. Refiners are competing for barrels in one corner of the market known as medium-heavy sour crude -- barrels with a higher content in sulfur and relatively dense. It’s the kind of oil that Saudi Arabia and its allies pump. And also the type of crude that’s pumped offshore in the U.S. Gulf of Mexico -- and that’s what’s in the Maran Apollo’s tanks.
#UAE's Dana Gas asks sukuk investors to disclose holdings: sources - Reuters
UAE's Dana Gas asks sukuk investors to disclose holdings: sources - Reuters:
United Arab Emirates’ Dana Gas has asked owners of its bonds to provide information on their holdings, three sources said and a document reviewed by Reuters showed, a move that some investors fear may be a step towards another debt restructuring.
Dana Gas shook the global Islamic finance industry in 2017, when it said it would not redeem its $700 million sukuk, or Islamic bonds, arguing they were no longer valid under UAE law because of changes in Islamic financial practice.
After a protracted legal battle, it reached an agreement with creditors in 2018. That restructuring followed an earlier one in 2012.
Dana, which now has nearly $380 million in outstanding sukuk due on Oct. 31, this week has asked investors to disclose their holdings, according to an information request seen by Reuters.
United Arab Emirates’ Dana Gas has asked owners of its bonds to provide information on their holdings, three sources said and a document reviewed by Reuters showed, a move that some investors fear may be a step towards another debt restructuring.
Dana Gas shook the global Islamic finance industry in 2017, when it said it would not redeem its $700 million sukuk, or Islamic bonds, arguing they were no longer valid under UAE law because of changes in Islamic financial practice.
After a protracted legal battle, it reached an agreement with creditors in 2018. That restructuring followed an earlier one in 2012.
Dana, which now has nearly $380 million in outstanding sukuk due on Oct. 31, this week has asked investors to disclose their holdings, according to an information request seen by Reuters.
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 down as U.S. virus spike stokes demand worries - Reuters
Oil down as U.S. virus spike stokes demand worries - Reuters:
Oil prices fell on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.
Brent crude LCOc1 futures declined by 44 cents, or 1.02%, to $42.66, by 0935 GMT, after hitting a high of $43.19.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 53 cents, or 1.3%, to $40.10 a barrel, after a high of $40.79.
“Oil prices are lower today on concerns that the surge in coronavirus cases in the U.S. will limit a recovery in fuel demand,” bank RBC said.
Oil prices fell on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.
Brent crude LCOc1 futures declined by 44 cents, or 1.02%, to $42.66, by 0935 GMT, after hitting a high of $43.19.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 53 cents, or 1.3%, to $40.10 a barrel, after a high of $40.79.
“Oil prices are lower today on concerns that the surge in coronavirus cases in the U.S. will limit a recovery in fuel demand,” bank RBC said.
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