Oil falls on coronavirus demand concerns, weak U.S. jobs numbers - Reuters:
Oil prices fell 2% on Thursday as investors worried the U.S. Congress may not agree on a stimulus package and as jobless numbers rose, while analysts prepared to cut energy demand forecasts as the number of coronavirus cases surges higher.
That price decline came despite the benefit of a drop in the dollar to a near 22-month low.
Brent LCOc1 futures fell 98 cents, or 2.2%, to settle at $43.31 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 83 cents, or 2.0%, to settle at $41.07.
The U.S. dollar was trading at its lowest against a basket of currencies .DXY since September 2018. A weaker dollar usually spurs buying of dollar-priced commodities, like oil, because they become cheaper for holders of other currencies.
Thursday, 23 July 2020
#Dubai court freezes NMC founder Shetty’s assets | Financial Times
Dubai court freezes NMC founder Shetty’s assets | Financial Times:
A Dubai court has issued a worldwide freezing order on the assets of NMC founder BR Shetty at the request of a Dutch bank, as creditors scramble to recover funds from the collapsed hospital operator.
Credit Europe Bank’s Dubai business has brought proceedings against NMC and Mr Shetty for non-payment of $8.4m in outstanding debt relating to a 2013 facility, according to recently unsealed court documents. It said roughly $25m in security cheques issued by Mr Shetty bounced.
The Indian entrepreneur argued he was not liable to repay because his signature in the lending agreements was forged and he never gave a personal guarantee or security cheques, the documents show — claims the bank disputed.
NMC was placed into administration in April as the healthcare group imploded amid accusations of fraud and the discovery of billions of dollars in unreported debt.
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Credit Europe Bank’s Dubai business has brought proceedings against NMC and BR Shetty for non-payment of $8.4m in outstanding debt relating to a 2013 facility © Reuters |
A Dubai court has issued a worldwide freezing order on the assets of NMC founder BR Shetty at the request of a Dutch bank, as creditors scramble to recover funds from the collapsed hospital operator.
Credit Europe Bank’s Dubai business has brought proceedings against NMC and Mr Shetty for non-payment of $8.4m in outstanding debt relating to a 2013 facility, according to recently unsealed court documents. It said roughly $25m in security cheques issued by Mr Shetty bounced.
The Indian entrepreneur argued he was not liable to repay because his signature in the lending agreements was forged and he never gave a personal guarantee or security cheques, the documents show — claims the bank disputed.
NMC was placed into administration in April as the healthcare group imploded amid accusations of fraud and the discovery of billions of dollars in unreported debt.
OPEC and Oil: Saudis Sees No Gain From Ending Russia Price War - Bloomberg
OPEC and Oil: Saudis Sees No Gain From Ending Russia Price War - Bloomberg:
Saudi Arabia gained no financial reward in the first full month after ending its oil-price war with Russia.
The kingdom earned 23.9 billion riyals ($6.4 billion) from oil exports in May, the Riyadh-based General Authority for Statistics said Thursday. That was even less than the previous month, when the price war was at its height, and down more than 60% from last year’s monthly average of $16.8 billion.
The government slashed exports to 6.2 million barrels a day in May from a record 9.3 million in April as it came under pressure from world leaders, including U.S. President Donald Trump, to change tack and rebalance an energy market battered by the coronavirus pandemic.
The good news for Saudi Arabia is that revenue from oil, of which it’s the world’s biggest exporter, probably rose in June and will likely be higher still this month.
Saudi Arabia gained no financial reward in the first full month after ending its oil-price war with Russia.
The kingdom earned 23.9 billion riyals ($6.4 billion) from oil exports in May, the Riyadh-based General Authority for Statistics said Thursday. That was even less than the previous month, when the price war was at its height, and down more than 60% from last year’s monthly average of $16.8 billion.
The government slashed exports to 6.2 million barrels a day in May from a record 9.3 million in April as it came under pressure from world leaders, including U.S. President Donald Trump, to change tack and rebalance an energy market battered by the coronavirus pandemic.
The good news for Saudi Arabia is that revenue from oil, of which it’s the world’s biggest exporter, probably rose in June and will likely be higher still this month.
Why fiscal stimulus could be the only hope for MENA economic recovery in 2021 | ZAWYA MENA Edition
Why fiscal stimulus could be the only hope for MENA economic recovery in 2021 | ZAWYA MENA Edition:
Fiscal stimulus and policy will play a crucial role in the MENA region's upturn in the wake of the COVID-19 pandemic and the oil price plunge in the first half of 2020, experts say.
Banking giant MUFG's forecasts indicate that, by the end of 2021, the region will have a level of activity that is well below its pre-pandemic growth trajectory. In many cases, it will record activity below its 2019 level. In addition, deep recessions are expected in 2020 across almost all MENA regional economies.
The overall real GDP growth in MENA region is expected to contract in 2020 by -5.6 percent from +0.2 percent in 2019. In the GCC, the real GDP growth is expected to fall by -3.9 percent in 2020 from +0.6 percent in 2019.
According to Ehsan Khoman, Head of MENA Research and Strategy at MUFG, fiscal stimulus will keep playing a significant role in the recovery. "Policymakers in the Middle East and North Africa are well aware that they will have to do more,” he said.
Fiscal stimulus and policy will play a crucial role in the MENA region's upturn in the wake of the COVID-19 pandemic and the oil price plunge in the first half of 2020, experts say.
Banking giant MUFG's forecasts indicate that, by the end of 2021, the region will have a level of activity that is well below its pre-pandemic growth trajectory. In many cases, it will record activity below its 2019 level. In addition, deep recessions are expected in 2020 across almost all MENA regional economies.
The overall real GDP growth in MENA region is expected to contract in 2020 by -5.6 percent from +0.2 percent in 2019. In the GCC, the real GDP growth is expected to fall by -3.9 percent in 2020 from +0.6 percent in 2019.
According to Ehsan Khoman, Head of MENA Research and Strategy at MUFG, fiscal stimulus will keep playing a significant role in the recovery. "Policymakers in the Middle East and North Africa are well aware that they will have to do more,” he said.
Emirates offers pilots, cabin crew four months unpaid leave - Reuters
Emirates offers pilots, cabin crew four months unpaid leave - Reuters:
Emirates airline is offering some pilots and cabin crew up to four months of unpaid leave, as it strives to manage the impact of the COVID-19 pandemic, an internal email said.
The Dubai state-owned carrier, facing a cash crunch caused by the pandemic, has already cut salaries and thousands of jobs, including pilots and cabin crew.
Eligible pilots and cabin crew can take up to four months off between August and November during which they would still receive benefits, such as company-provided accommodation, an internal email seen by Reuters said.
“As a result of recent and unexpected travel restrictions imposed by some countries, an opportunity has arisen to offer our pilots and cabin crew unpaid leave. We have elected to offer this option as a short-term measure to reduce our resources,” the email said.
Emirates airline is offering some pilots and cabin crew up to four months of unpaid leave, as it strives to manage the impact of the COVID-19 pandemic, an internal email said.
The Dubai state-owned carrier, facing a cash crunch caused by the pandemic, has already cut salaries and thousands of jobs, including pilots and cabin crew.
Eligible pilots and cabin crew can take up to four months off between August and November during which they would still receive benefits, such as company-provided accommodation, an internal email seen by Reuters said.
“As a result of recent and unexpected travel restrictions imposed by some countries, an opportunity has arisen to offer our pilots and cabin crew unpaid leave. We have elected to offer this option as a short-term measure to reduce our resources,” the email said.
MIDEAST STOCKS-Major Gulf stocks subdued as banks weigh on #Dubai - Reuters
MIDEAST STOCKS-Major Gulf stocks subdued as banks weigh on Dubai - Reuters:
Major stock markets in the Gulf were
subdued on Thursday, with Dubai hurt by losses in its banking
shares.
Saudi Arabia's benchmark index was flat, with Saudi
Telecom Company retreating 2.1% after it reported a
decrease in second-quarter profit.
The kingdom's finance minister said on Wednesday that July
data is promising for an economic recovery, though many
uncertainties remain, and economic contraction will likely be
less than the 6.8% predicted by the International Monetary Fund.
Dubai's main share index retreated 0.6%, weighed
down by a 1.2% fall in Emirates NBD Bank and a 1.5%
decrease in blue-chip developer Emaar Properties.
Elsewhere, Dubai Islamic Bank was down 0.5%.
On Wednesday, the United Arab Emirates' largest
sharia-compliant lender reported a net profit of 1.01 billion
dirhams ($274.99 million) in the second quarter, down from 1.38
billion dirhams a year ago.
Major stock markets in the Gulf were
subdued on Thursday, with Dubai hurt by losses in its banking
shares.
Saudi Arabia's benchmark index was flat, with Saudi
Telecom Company retreating 2.1% after it reported a
decrease in second-quarter profit.
The kingdom's finance minister said on Wednesday that July
data is promising for an economic recovery, though many
uncertainties remain, and economic contraction will likely be
less than the 6.8% predicted by the International Monetary Fund.
Dubai's main share index retreated 0.6%, weighed
down by a 1.2% fall in Emirates NBD Bank and a 1.5%
decrease in blue-chip developer Emaar Properties.
Elsewhere, Dubai Islamic Bank was down 0.5%.
On Wednesday, the United Arab Emirates' largest
sharia-compliant lender reported a net profit of 1.01 billion
dirhams ($274.99 million) in the second quarter, down from 1.38
billion dirhams a year ago.
NMC seeks up to $250 million ahead of #UAE insolvency proceedings: sources - Reuters
NMC seeks up to $250 million ahead of UAE insolvency proceedings: sources - Reuters:
Hospital operator NMC Health is looking to raise up to $250 million in debt while it prepares for insolvency proceedings in the United Arab Emirates and has picked Perella Weinberg Partners to advise it on the process, sources said.
The company, run by administrators Alvarez & Marsal, has also tasked Perella to advise it on the sale of UK-based Aspen Healthcare, a company it acquired in 2018, the two sources familiar with the matter said.
NMC Health Plc, the London-listed holding company for the hospital group, went into administration in April after months of turmoil over its finances.
Its UAE entity is considering to apply for insolvency under the jurisdiction of Abu Dhabi Global Markets (ADGM), sources have previously told Reuters, to obtain protection from the court from any enforcement from creditors, similar to Chapter 11 in the United States.
Hospital operator NMC Health is looking to raise up to $250 million in debt while it prepares for insolvency proceedings in the United Arab Emirates and has picked Perella Weinberg Partners to advise it on the process, sources said.
The company, run by administrators Alvarez & Marsal, has also tasked Perella to advise it on the sale of UK-based Aspen Healthcare, a company it acquired in 2018, the two sources familiar with the matter said.
NMC Health Plc, the London-listed holding company for the hospital group, went into administration in April after months of turmoil over its finances.
Its UAE entity is considering to apply for insolvency under the jurisdiction of Abu Dhabi Global Markets (ADGM), sources have previously told Reuters, to obtain protection from the court from any enforcement from creditors, similar to Chapter 11 in the United States.
MIDEAST STOCKS-Most major Gulf markets slip in early trade - Reuters
MIDEAST STOCKS-Most major Gulf markets slip in early trade - Reuters:
Major stock markets in the Gulf traded in negative territory early on Thursday, with Dubai and Saudi bourses hurt by weak earnings at their blue-chip stocks.
Saudi Arabia’s benchmark index fell 0.2%, with Saudi Telecom Company losing 1.9% following a decrease in second-quarter net profit.
Amongst others, oil company Saudi Aramco slipped 0.2%.
The kingdom will look to sell assets in sectors not previously considered for privatisation, its finance minister said on Wednesday, as the country contends with the economic impact of sustained low oil prices.
Dubai’s main share index dropped 0.9%, pressured by a 1.5% fall in blue-chip lender Emaar Properties and a 1.1% decrease in Dubai Islamic Bank (DIB).
Major stock markets in the Gulf traded in negative territory early on Thursday, with Dubai and Saudi bourses hurt by weak earnings at their blue-chip stocks.
Saudi Arabia’s benchmark index fell 0.2%, with Saudi Telecom Company losing 1.9% following a decrease in second-quarter net profit.
Amongst others, oil company Saudi Aramco slipped 0.2%.
The kingdom will look to sell assets in sectors not previously considered for privatisation, its finance minister said on Wednesday, as the country contends with the economic impact of sustained low oil prices.
Dubai’s main share index dropped 0.9%, pressured by a 1.5% fall in blue-chip lender Emaar Properties and a 1.1% decrease in Dubai Islamic Bank (DIB).
Shale’s Bust Shows Basis of Boom: Debt, Debt and Debt: QuickTake - Bloomberg
Shale’s Bust Shows Basis of Boom: Debt, Debt and Debt: QuickTake - Bloomberg:
America’s shale boom once looked like one of the century’s great business success stories. Now some of its most iconic names are in bankruptcy court and we’re not done yet. But while Covid-19 and the biggest-ever crude crunch it brought may have been the last straw, the sector’s weaknesses extend back many years, as U.S. oil and gas companies ran up over $300 billion in losses since 2010. Here’s a look at what went wrong and what the fallout might be.
1. How bad is it?
More than 230 North American oil and gas producers, owing at least $152 billion in debt, have filed for bankruptcy since the beginning of 2015, according to the latest report from law firm Haynes & Boone. In the second quarter alone, companies that went bankrupt had total debts of $29 billion. The restructurings are showing no signs of letting up, as June tied for the busiest month on record with seven oil and gas bankruptcies, according to data compiled by Bloomberg. That month, the shale bust marked a grim milestone by claiming the pioneer of America’s drilling renaissance, Chesapeake Energy Corp. For other parts of the shale supply chain, 2020 is also on pace to be the biggest year of bankruptcies in terms of debt owed.
America’s shale boom once looked like one of the century’s great business success stories. Now some of its most iconic names are in bankruptcy court and we’re not done yet. But while Covid-19 and the biggest-ever crude crunch it brought may have been the last straw, the sector’s weaknesses extend back many years, as U.S. oil and gas companies ran up over $300 billion in losses since 2010. Here’s a look at what went wrong and what the fallout might be.
1. How bad is it?
More than 230 North American oil and gas producers, owing at least $152 billion in debt, have filed for bankruptcy since the beginning of 2015, according to the latest report from law firm Haynes & Boone. In the second quarter alone, companies that went bankrupt had total debts of $29 billion. The restructurings are showing no signs of letting up, as June tied for the busiest month on record with seven oil and gas bankruptcies, according to data compiled by Bloomberg. That month, the shale bust marked a grim milestone by claiming the pioneer of America’s drilling renaissance, Chesapeake Energy Corp. For other parts of the shale supply chain, 2020 is also on pace to be the biggest year of bankruptcies in terms of debt owed.
UN: Arab economies to shrink by 5.7% amid virus fallout
UN: Arab economies to shrink by 5.7% amid virus fallout:
The pandemic will exact a heavy toll on Arab countries, causing an economic contraction of 5.7% this year, pushing millions into poverty and compounding the suffering of those affected by armed conflict, a U.N. report said Thursday.
The U.N.’s Economic and Social Commission for Western Asia expects some Arab economies to shrink by up to 13%, amounting to an overall loss for the region of $152 billion.
Another 14.3 million people are expected to be pushed into poverty, raising the total number to 115 million — a quarter of the total Arab population, it said. More than 55 million people in the region relied on humanitarian aid before the COVID-19 crisis, including 26 million who were forcibly displaced.
Arab countries moved quickly to contain the virus in March by imposing stay-at-home orders, restricting travel and banning large gatherings, including religious pilgrimages.
The pandemic will exact a heavy toll on Arab countries, causing an economic contraction of 5.7% this year, pushing millions into poverty and compounding the suffering of those affected by armed conflict, a U.N. report said Thursday.
The U.N.’s Economic and Social Commission for Western Asia expects some Arab economies to shrink by up to 13%, amounting to an overall loss for the region of $152 billion.
Another 14.3 million people are expected to be pushed into poverty, raising the total number to 115 million — a quarter of the total Arab population, it said. More than 55 million people in the region relied on humanitarian aid before the COVID-19 crisis, including 26 million who were forcibly displaced.
Arab countries moved quickly to contain the virus in March by imposing stay-at-home orders, restricting travel and banning large gatherings, including religious pilgrimages.
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.
#Saudi oil exports down by nearly $12 billion year-on-year in May - Reuters
Saudi oil exports down by nearly $12 billion year-on-year in May - Reuters:
The value of Saudi Arabia’s oil exports dropped by 65% year-on-year in May, or a fall of nearly $12 billion, official data showed on Thursday.
Compared with April, total exports - including non-oil exports of goods such as chemicals and plastics - decreased by 1.6%, or about $160 million, the General Authority for Statistics said.
Saudi Arabia, the world’s largest oil exporter, is facing a deep recession this year amid the coronavirus crisis and lower oil revenues.
The value of Saudi Arabia’s oil exports dropped by 65% year-on-year in May, or a fall of nearly $12 billion, official data showed on Thursday.
Compared with April, total exports - including non-oil exports of goods such as chemicals and plastics - decreased by 1.6%, or about $160 million, the General Authority for Statistics said.
Saudi Arabia, the world’s largest oil exporter, is facing a deep recession this year amid the coronavirus crisis and lower oil revenues.
Oil inches up, but concerns over demand recovery cap gains - Reuters
Oil inches up, but concerns over demand recovery cap gains - Reuters:
Oil prices edged higher on Thursday, although gains were capped by a surprise build in U.S. crude oil inventories, while a persistent surge in new coronavirus cases continued to dampen a recovery in fuel demand.
U.S. crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the Energy Information Administration said on Wednesday, as a sharp rise in coronavirus cases starts to hit U.S. consumption.
Brent crude LCOc1 rose 7 cents, or 0.2%, to $44.36 a barrel by 0545 GMT while U.S. West Texas Intermediate (WTI) crude CLc1 gained 8 cents, or 0.2%, to $41.98 a barrel.
Prices have been marking time since hitting a four-month high earlier in the week on hopeful news about a coronavirus vaccine.
Oil prices edged higher on Thursday, although gains were capped by a surprise build in U.S. crude oil inventories, while a persistent surge in new coronavirus cases continued to dampen a recovery in fuel demand.
U.S. crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the Energy Information Administration said on Wednesday, as a sharp rise in coronavirus cases starts to hit U.S. consumption.
Brent crude LCOc1 rose 7 cents, or 0.2%, to $44.36 a barrel by 0545 GMT while U.S. West Texas Intermediate (WTI) crude CLc1 gained 8 cents, or 0.2%, to $41.98 a barrel.
Prices have been marking time since hitting a four-month high earlier in the week on hopeful news about a coronavirus vaccine.