Oil Steadies With Weak Dollar Eclipsing Sluggish Demand Backdrop - Bloomberg

Oil Steadies With Weak Dollar Eclipsing Sluggish Demand Backdrop - Bloomberg:

Crude nearly erased all losses with a declining dollar and strong U.S. equities lending support to a market weakened by sluggish demand.

Futures in New York settled close to flat after dropping as much as 1.9% earlier on Wednesday. The dollar weakened to the lowest level since March and U.S. stocks largely firmed amid signs that Trump administration officials and Senate Republicans are discussing a short-term extension of unemployment insurance.

“If we get close to a short-term stimulus extension for unemployment, that’s probably going to give demand expectations a boost,” said Phil Flynn, senior market analyst at Price Futures Group Inc.

Still, U.S. government data showed crude stockpiles increased by nearly 5 million barrels last week, supplies of distillate surged to the highest in decades and gasoline demand ticked lower, signaling that the virus is keeping drivers off the road during the typically high-consumption summer months.

PRICES
West Texas Intermediate for September delivery fell 2 cents to settle at $41.90 a barrel. The Bloomberg Dollar Spot Index fell as much as 0.4%. Brent for September settlement edged lower by 3 cents to end the session at $44.29 a barrel.

#AbuDhabi’s Adnoc Forms Venture For Petrochemical Investment - Bloomberg

Abu Dhabi’s Adnoc Forms Venture For Petrochemical Investment - Bloomberg:

Abu Dhabi National Oil Co. formed a venture with a state holding company to boost investment in petrochemical projects, part of the emirate’s drive to expand beyond raw crude into more valuable products.

Adnoc and its partner, ADQ, agreed to invest in and manage downstream activities at the planned Ruwais Derivatives Park, they said in a statement. They will complete a feasibility study this year.

The partners, both based in Abu Dhabi, capital of the United Arab Emirates, didn’t disclose financial details of the deal. Adnoc will hold 60% of the venture, with ADQ owning the rest.

Adnoc, like other Middle Eastern crude suppliers, faces an uncertain outlook for oil demand. Brent crude is down 33% this year to around $44 a barrel, hammered by the coronavirus and a gradual shift toward renewable sources of energy.

#SaudiArabia to widen privatisation scope, finance minister says - Reuters

Saudi Arabia to widen privatisation scope, finance minister says - Reuters:

Saudi Arabia will look to sell assets in sectors not previously considered for privatisation, the country’s finance minister said on Wednesday, as the country contends with the economic impact of sustained low oil prices.

Saudi Arabia, the world’s largest oil exporter, is facing a sharp recession because of the coronavirus crisis and depleted oil revenues.

The International Monetary Fund has forecast a 6.8% contraction this year, but Finance Minister Mohammed al-Jadaan said at Bloomberg event that he expects the economy to contract less than that.

“A lot of factors work in our favour ... local and domestic tourism for example is picking up very nicely this month,” he said.

Saudi Arabia has planned a series of privatisations in recent years, including the initial public offering of state-owned oil giant Aramco, which took place last year.

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.

#Qatar Airways seeks $5 billion compensation from Arab bloc over airspace ban - Reuters

Qatar Airways seeks $5 billion compensation from Arab bloc over airspace ban - Reuters:

Qatar Airways is seeking at least $5 billion in compensation from Saudi Arabia, the United Arab Emirates, Egypt and Bahrain for blocking it from their airspace, the state-owned carrier said on Wednesday.

The airline has been banned from the airspace of the four countries since June 2017 when they cut ties with Qatar over accusations it supports terrorism. Doha denies the charges and says the bloc aims to infringe on its sovereignty.

Qatar Airways said the measures specifically targeted the airline with the aim of closing its operations in the four countries, destroying the value of its investments and causing damage to its global operations.

The airline is seeking damages through four investment arbitrations under three treaties, including the Arab Investment Agreement, it said in a statement.

Gulf firms to delay investments due to oil, coronavirus shocks - S&P - Reuters

Gulf firms to delay investments due to oil, coronavirus shocks - S&P - Reuters:

Companies in the Gulf, battered by low oil prices and the coronavirus crisis, are likely to delay investments this year as they manage costs and liquidity, S&P said, cautioning a recovery would take at least a few quarters.


S&P Global Ratings has taken negative rating actions on 16 entities in the six-member Gulf Cooperation Council (GCC) and expects a mid-to-high single-digit economic contraction for most GCC countries this year.

“We expect broad-based pressure across most sectors and markets in the region but some will feel it more than others as economic activity decelerates, disposable income declines, and employment trends weaken,” the agency said in a report.

Aviation and tourism have been hit hardest, it said, particularly in Dubai, where transport and tourism are vital for the economy.

#Dubai Islamic Bank net profit falls 27% - Reuters

Dubai Islamic Bank net profit falls 27% - Reuters:

Dubai Islamic Bank’s (DIB) second-quarter net profit fell 27% from a year ago as net impairment charges jumped 68%, though they eased from last quarter.

DIB posted a net profit attributable to owners of 1.01 billion dirhams ($274.99 million) for the quarter. 


Its net impairment charges were 637 million dirhams, much lower than the 1.48 billion dirhams booked in the first quarter, which included 818 million dirhams in extraordinary charges.

Several banks in the region have increased provisions in anticipation of the coronavirus pandemic’s impact on the credit market.

#UAE's Etisalat reveals net profit increase to $1.3bn amid digital transformation - Arabianbusiness

UAE's Etisalat reveals net profit increase to $1.3bn amid digital transformation - Arabianbusiness:

UAE-based telecoms operator Etisalat has reported a three percent rise in net profit to AED4.6 billion ($1.3bn) for the first six months of 2020, despite the onset of the Covid-19 pandemic, with the company accelerating its digital offering.

Revenues for first half of the year reached AED25.6bn ($7bn) while the company's subscriber base totalled 146 million representing a year-on-year increase of two percent. 


Obaid Humaid Al Tayer, chairman of Etisalat Group, said: “We are witnessing an opportunity to fast track digital transformation. The unconventional conditions have spurred the adoption of digital services, bridging a divide by changing customers’ behaviour towards digital channels.

Middle East Retail: #SaudiArabia's Jarir Sees Growth Opportunity - Bloomberg

Middle East Retail: Saudi Arabia's Jarir Sees Growth Opportunity - Bloomberg:

Jarir Marketing Co., a stationary and electronics retailer in Saudi Arabia, sees an opportunity to open as many as five stores this year and raise market share despite the coronavirus pandemic.

“Traffic has come down but basket size has come up,” Chairman Muhammad Al-Agil said in an interview on Bloomberg TV.

Most retailers in Saudi Arabia had to shut shops following government guidelines to curb the spread of the coronavirus pandemic. Jarir Marketing closed most of its stores for 22 days and some for “much longer.”

Online sales rose six-fold in the second quarter. They “will come down as we go on, but still it’s going to be much larger than last year,” the chairman said.

Oil prices slip as U.S. inventories and virus fears grow - Reuters

Oil prices slip as U.S. inventories and virus fears grow - Reuters:

Oil prices fell on Wednesday as industry data showed a bigger than expected inventory build in the United States, where a surge in coronavirus cases could further dent fuel demand in the world’s biggest oil consumer.

Brent crude fell 60 cents, or 1.4%, to $43.72 a barrel by 0912 GMT. U.S. West Texas Intermediate (WTI) crude dropped 70 cents, or 1.7%, to $41.22.

The American Petroleum Institute (API) industry group reported U.S. crude inventories rose last week by 7.5 million barrels, against expectations for a draw of 2.1 million barrels.

The U.S. Energy Information Administration (EIA) releases official oil data later on Wednesday.

#UAE's migrant workers fret over future in coronavirus economy - Reuters

UAE's migrant workers fret over future in coronavirus economy - Reuters:

When Kapil left his Nepali village for an airport job packing cargo in the United Arab Emirates, he thought he was securing a future for himself and his family.

But less than a year after arriving in the Middle East trade and tourism hub, he questions whether it was the right decision after learning there would be no work this month.

“I’m totally hopeless,” said 29-year-old Kapil, whose wife and five-year-old son are in Nepal.

The coronavirus crisis has taken a heavy toll on the economies of the oil-rich Gulf, heavily reliant on low-paid foreign workers.

They are the backbone of the Gulf economies, taking jobs in construction, services and transport, and are now facing the realities of the pandemic.

Reuters spoke to over 30 workers like Kapil in Dubai, Abu Dhabi and Sharjah, who all said they are now enduring hardship due to coronavirus.

Many have racked up debt and would go hungry without the help of charities as they wait for work and to be paid.

#Qatar allows citizens and permanent residents to travel and return anytime - Reuters

Qatar allows citizens and permanent residents to travel and return anytime - Reuters:

Qatar on Wednesday relaxed restrictions aimed at controlling the novel coronavirus, allowing citizens and permanent residency holders to travel outside the country and return at any time, and residents outside the country to return starting Aug. 1.

The government communications office (GCO) said arrivals from low-risk countries are required to take a coronavirus test at the airport and sign a formal pledge to adhere to quarantine at home for a week, state news agency (QNA) reported on its twitter account, citing a statement from GCO.

GCO said the list of low-risk countries will be published on the Ministry of Public Health’s website and will be reviewed every two weeks.

Travellers from low-risk countries who have obtained COVID-free certificates from an accredited testing centre within 48 hours of travelling will not have to take a test at the airport.

MIDEAST STOCKS-Most major Gulf markets gain; Emirates NBD drags #Dubai - Reuters

MIDEAST STOCKS-Most major Gulf markets gain; Emirates NBD drags Dubai - Reuters:

Most major Gulf stock markets traded in positive territory early on Wednesday, supported by their respective financial shares, but Dubai’s top lender weighed on the index.

Saudi Arabia’s benchmark index added 0.2%, with Saudi Telecom Company rising 0.2% and Al Rajhi Bank gaining 0.2%.

Saudi King Salman held a cabinet meeting via video call from hospital in the capital Riyadh on Tuesday, a day after the 84-year-old monarch was admitted with what state media said was inflammation of the gall bladder.

Dubai’s main share index lost 0.5%, weighed down by a 2% slide in its largest lender Emirates NBD, which had gained nearly 6% on Tuesday after receiving regulatory nod to increase its foreign ownership limit to 40% from 20% earlier.

Elsewhere, blue-chip developer Emaar Properties eased 0.7%.