Oil eases as U.S. stimulus hopes dim, virus cases rise - Reuters:
Oil prices fell about 1% on Tuesday after rising earlier in the session as hopes dimmed for a swift stimulus package to relieve the U.S. economy as coronavirus cases increased globally.
Brent crude LCOc1 futures fell 49 cents, or 1.1%, to settle at $44.50 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 33 cents, or 0.8%, to finish at $41.61 a barrel.
Some profit-taking ahead of weekly U.S. oil inventory data weighed on prices. Crude and gasoline inventories were seen declining last week, while distillates probably built, a Reuters poll showed ahead of industry data later on Tuesday, followed by the government’s report on Wednesday.
The U.S. Senate’s top Republican and Democrat criticized each others’ approach to coronavirus aid on Tuesday, with no word on when talks on a new package might resume and no movement on benefits for tens of millions who lost jobs in the crisis.
Tuesday 11 August 2020
Middle East Deals: #AbuDhabi Adnoc Seeks Investors for $21 Billion Gas Pipeline - Bloomberg
Middle East Deals: Abu Dhabi Adnoc Seeks Investors for $21 Billion Gas Pipeline - Bloomberg:
Abu Dhabi is considering bringing local investors into its natural-gas pipeline network, according to people familiar with the matter, just months after raising cash from foreign funds.
State-owned Abu Dhabi National Oil Co. is discussing moving its 51% holding in the pipelines into a special-purpose vehicle, according to the people. It would then sell about 20% of the vehicle to one or more local funds, giving them an indirect interest in the underlying assets, the people said, asking not to be identified because the information is private.
The company plans to do any deal at the same valuation as a transaction in June, when it sold a stake in the pipelines to international investors, valuing the asset at nearly $21 billion including debt, the people said. Adnoc would retain operational control of the pipeline network after the sale, according to the people.
Abu Dhabi, the capital of the United Arab Emirates, has been opening up its energy industry as it tries to generate additional sources of funding. The pipeline deals will bring in cash at a time when the emirate is grappling with this year’s plunge in crude prices and the coronavirus pandemic.
Abu Dhabi is considering bringing local investors into its natural-gas pipeline network, according to people familiar with the matter, just months after raising cash from foreign funds.
State-owned Abu Dhabi National Oil Co. is discussing moving its 51% holding in the pipelines into a special-purpose vehicle, according to the people. It would then sell about 20% of the vehicle to one or more local funds, giving them an indirect interest in the underlying assets, the people said, asking not to be identified because the information is private.
The company plans to do any deal at the same valuation as a transaction in June, when it sold a stake in the pipelines to international investors, valuing the asset at nearly $21 billion including debt, the people said. Adnoc would retain operational control of the pipeline network after the sale, according to the people.
Abu Dhabi, the capital of the United Arab Emirates, has been opening up its energy industry as it tries to generate additional sources of funding. The pipeline deals will bring in cash at a time when the emirate is grappling with this year’s plunge in crude prices and the coronavirus pandemic.
Emaar Malls reveals 69% drop in profits for H1 2020 - Arabianbusiness
Emaar Malls reveals 69% drop in profits for H1 2020 - Arabianbusiness:
Dubai-based Emaar Malls, the retail unit majority-owned by Emaar Properties, has reported a net profit of $94 million for the first six months of the year – down 69 percent on the same period last year ($308m), as the company battled against the economic impacts of the global Covid-19 pandemic.
Revenue also slipped 30 percent to $451m for first half of 2020 compared to $606m in the corresponding period last year.
Emaar’s Mohamed Alabbar said: “I firmly believe that Emaar Malls’ results showed strength and resilience in the face of the challenges presented to us by the pandemic. Our continuous innovation, diversification of our portfolio and investment in digital to bring our destinations to life in new channels added further strength to our results.”
Brick-and-mortar shopping malls suffered particularly as they closed down for almost three months as part of the government’s restrictions to contain the spread of coronavirus – last month, Alabbar revealed that the company’s flagship Dubai Mall was welcoming around 100,000 visitors daily - the pre-Covid number was in the region of a-quarter-of-a-million daily visitors.
Dubai-based Emaar Malls, the retail unit majority-owned by Emaar Properties, has reported a net profit of $94 million for the first six months of the year – down 69 percent on the same period last year ($308m), as the company battled against the economic impacts of the global Covid-19 pandemic.
Revenue also slipped 30 percent to $451m for first half of 2020 compared to $606m in the corresponding period last year.
Emaar’s Mohamed Alabbar said: “I firmly believe that Emaar Malls’ results showed strength and resilience in the face of the challenges presented to us by the pandemic. Our continuous innovation, diversification of our portfolio and investment in digital to bring our destinations to life in new channels added further strength to our results.”
Brick-and-mortar shopping malls suffered particularly as they closed down for almost three months as part of the government’s restrictions to contain the spread of coronavirus – last month, Alabbar revealed that the company’s flagship Dubai Mall was welcoming around 100,000 visitors daily - the pre-Covid number was in the region of a-quarter-of-a-million daily visitors.
COLUMN- #Saudi Aramco sees Asian crude oil demand recovering. But is it?: Russell - Reuters
COLUMN-Saudi Aramco sees Asian crude oil demand recovering. But is it?: Russell - Reuters:
Saudi Aramco sees a recovery in global oil demand, a view that would justify the paltry reduction in the price the world’s biggest crude exporter will charge refiners in Asia for cargoes loading in September.
Customers probably have a different view.
Aramco Chief Executive Amin Nasser told reporters on Aug. 9 that demand was recovering as countries try to restart economies after lockdowns aimed at curbing the spread of the novel coronavirus pandemic.
“Look at China, their gasoline and diesel demand is almost at pre-COVID 19 levels. We are seeing that Asia is picking up and other markets (too),” he said, after announcing the state-controlled oil giant’s quarterly results.
Saudi Aramco sees a recovery in global oil demand, a view that would justify the paltry reduction in the price the world’s biggest crude exporter will charge refiners in Asia for cargoes loading in September.
Customers probably have a different view.
Aramco Chief Executive Amin Nasser told reporters on Aug. 9 that demand was recovering as countries try to restart economies after lockdowns aimed at curbing the spread of the novel coronavirus pandemic.
“Look at China, their gasoline and diesel demand is almost at pre-COVID 19 levels. We are seeing that Asia is picking up and other markets (too),” he said, after announcing the state-controlled oil giant’s quarterly results.
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.
Middle East News: #SaudiArabia, Allies Say #Qatar Air Blockade Was for Security - Bloomberg
Middle East News: Saudi Arabia, Allies Say Qatar Air Blockade Was for Security - Bloomberg:
A Saudi-led group of countries has told the United Nations’ aviation agency that “emergency conditions” justify a three-year diplomatic impasse with Qatar that prevents that nation’s planes from flying over some neighboring territories.
Foreign affairs ministers from Saudi Arabia, the United Arab Emirates, Egypt and Bahrain wrote to the International Civil Aviation Organization last week to say that announcements made in 2017 allowed them to bar Qatar-registered aircraft from their skies under a provision designed for states of war or national emergency, according to letters seen by Bloomberg News. They cut ties with the tiny Gulf natural-gas producer because of its alleged support for terrorism and friendliness with Iran.
In a response to the Montreal-based ICAO, Qatar Transport Minister Jassim bin Saif Al Sulaiti said the countries hadn’t officially declared a state of emergency in 2017. He also referred to allegations that Qatar supports terrorism and its perceived threat to neighboring countries as “tired” and “libelous.”
The Montreal-based ICAO didn’t immediately respond to an email seeking comment on the negotiations sent outside business hours.
A Saudi-led group of countries has told the United Nations’ aviation agency that “emergency conditions” justify a three-year diplomatic impasse with Qatar that prevents that nation’s planes from flying over some neighboring territories.
Foreign affairs ministers from Saudi Arabia, the United Arab Emirates, Egypt and Bahrain wrote to the International Civil Aviation Organization last week to say that announcements made in 2017 allowed them to bar Qatar-registered aircraft from their skies under a provision designed for states of war or national emergency, according to letters seen by Bloomberg News. They cut ties with the tiny Gulf natural-gas producer because of its alleged support for terrorism and friendliness with Iran.
In a response to the Montreal-based ICAO, Qatar Transport Minister Jassim bin Saif Al Sulaiti said the countries hadn’t officially declared a state of emergency in 2017. He also referred to allegations that Qatar supports terrorism and its perceived threat to neighboring countries as “tired” and “libelous.”
The Montreal-based ICAO didn’t immediately respond to an email seeking comment on the negotiations sent outside business hours.
Middle East News: #Kuwait Pension Fund to Triple Infrastructure Investments - Bloomberg
Middle East News: Kuwait Pension Fund to Triple Infrastructure Investments - Bloomberg:
Kuwait’s $112 billion pension fund is looking to more than triple investments in infrastructure as part of its asset-allocation strategy over the next couple of years.
“In infrastructure, we’re looking to build up aggressively,” Meshal Al-Othman, director general of the Public Institution for Social Security, said in an interview with Bloomberg TV on Tuesday. “We’re at 3% today. We’re taking that up to roughly 10%.”
It will also “slightly increase” investments in hedge funds and real estate, he said.
Al-Othman is part of a new management team brought in during 2017 to transform the state-owned institution after a corruption scandal involving a previous manager. The fund has since exited more than $20 billion in questionable deals in a major reorganization of its portfolio.
Kuwait’s $112 billion pension fund is looking to more than triple investments in infrastructure as part of its asset-allocation strategy over the next couple of years.
“In infrastructure, we’re looking to build up aggressively,” Meshal Al-Othman, director general of the Public Institution for Social Security, said in an interview with Bloomberg TV on Tuesday. “We’re at 3% today. We’re taking that up to roughly 10%.”
It will also “slightly increase” investments in hedge funds and real estate, he said.
Al-Othman is part of a new management team brought in during 2017 to transform the state-owned institution after a corruption scandal involving a previous manager. The fund has since exited more than $20 billion in questionable deals in a major reorganization of its portfolio.
#Dubai Businesses Return to Growth First Time Since Virus Struck - Bloomberg
Dubai Businesses Return to Growth First Time Since Virus Struck - Bloomberg:
Dubai’s non-oil economy expanded in July for the first time since its downturn began when the coronavirus pandemic upended travel and commerce.
Accompanying the improvement, however, were continuing job losses and a weaker outlook among businesses, according to IHS Markit. Its Dubai Purchasing Managers’ Index rose to 51.7 last month, climbing from June’s mark of 50 that separates growth from contraction.
“July PMI data for the Dubai non-oil private sector signaled the start of a post-Covid-19 recovery,” David Owen, economist at IHS Markit, said in a report Tuesday.
Businesses in Dubai are benefiting from the lifting of lockdown restrictions, with foreign visitors allowed to enter the Middle East’s commercial hub from July 7. The United Arab Emirates, of which Dubai is a part, has kept contagion in check after easing many of the measures imposed to stop the disease.
Dubai’s non-oil economy expanded in July for the first time since its downturn began when the coronavirus pandemic upended travel and commerce.
Accompanying the improvement, however, were continuing job losses and a weaker outlook among businesses, according to IHS Markit. Its Dubai Purchasing Managers’ Index rose to 51.7 last month, climbing from June’s mark of 50 that separates growth from contraction.
Businesses in Dubai are benefiting from the lifting of lockdown restrictions, with foreign visitors allowed to enter the Middle East’s commercial hub from July 7. The United Arab Emirates, of which Dubai is a part, has kept contagion in check after easing many of the measures imposed to stop the disease.
Worldwide sukuk issuance set for modest decline despite COVID-19: Moody's | ZAWYA MENA Edition
Worldwide sukuk issuance set for modest decline despite COVID-19: Moody's | ZAWYA MENA Edition:
Sukuk issuance worldwide could fall by just five percent this year despite the COVID-19 outbreak, reversing four consecutive years of rapid growth, Moody's said in a report.
According to global ratings agency, some $77 billion in sukuk was issued in the first six months of 2020, down from $87 billion in the same period of 2019 as the coronavirus pandemic pared activity in Malaysia and Indonesia.
Nitish Bhojnagarwala, VP-Senior Credit Officer at Moody's, said: "We expect the decline to be partly offset by the slow oil price recovery which will increase the financing needs of Gulf-Cooperation Council (GCC)1 countries. Accordingly, we expect issuance to rally in the second half of the year to around $90 billion, led by a surge in sovereign issuance, notably in the Gulf. Activity in Malaysia and Indonesia may also recover moderately given uncertainty regarding the length of the crisis."
Modest issuance decline would be first for five years, according to Moody's.
Sukuk issuance worldwide could fall by just five percent this year despite the COVID-19 outbreak, reversing four consecutive years of rapid growth, Moody's said in a report.
According to global ratings agency, some $77 billion in sukuk was issued in the first six months of 2020, down from $87 billion in the same period of 2019 as the coronavirus pandemic pared activity in Malaysia and Indonesia.
Nitish Bhojnagarwala, VP-Senior Credit Officer at Moody's, said: "We expect the decline to be partly offset by the slow oil price recovery which will increase the financing needs of Gulf-Cooperation Council (GCC)1 countries. Accordingly, we expect issuance to rally in the second half of the year to around $90 billion, led by a surge in sovereign issuance, notably in the Gulf. Activity in Malaysia and Indonesia may also recover moderately given uncertainty regarding the length of the crisis."
Modest issuance decline would be first for five years, according to Moody's.
Oil higher on hopes for U.S. stimulus, demand recovery - Reuters
Oil higher on hopes for U.S. stimulus, demand recovery - Reuters:
Crude oil prices rose on Tuesday, underpinned by expectations of a U.S. stimulus to help jumpstart the world’s biggest oil consumer, a rebound in Asian demand as economies reopen and a stronger stock market.
Brent crude LCOc1 added 29 cents, or 0.6%, to $45.28 a barrel, by 0819 GMT. West Texas Intermediate U.S. crude CLc1 rose 38 cents, or 0.9%, to $42.32 a barrel.
U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him on coronavirus-related economic relief. The talks between Democrats and the Trump administration broke down last week.
“A deal on the support package is not a foregone conclusion but if it a mutually acceptable accord is struck stocks and oil will get a short-term boost,” Tamas Varga of oil brokerage PVM said.
Crude oil prices rose on Tuesday, underpinned by expectations of a U.S. stimulus to help jumpstart the world’s biggest oil consumer, a rebound in Asian demand as economies reopen and a stronger stock market.
Brent crude LCOc1 added 29 cents, or 0.6%, to $45.28 a barrel, by 0819 GMT. West Texas Intermediate U.S. crude CLc1 rose 38 cents, or 0.9%, to $42.32 a barrel.
U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him on coronavirus-related economic relief. The talks between Democrats and the Trump administration broke down last week.
“A deal on the support package is not a foregone conclusion but if it a mutually acceptable accord is struck stocks and oil will get a short-term boost,” Tamas Varga of oil brokerage PVM said.
MIDEAST STOCKS- #AbuDhabi index leads major Gulf markets higher - Reuters
MIDEAST STOCKS-Abu Dhabi index leads major Gulf markets higher - Reuters:
Major stock markets in the Gulf rose in early trade on Tuesday, with the Abu Dhabi index boosted by gains in International Holding’s shares following a sharp rise in its second-quarter profit.
Saudi Arabia’s benchmark index was up 0.2%, with Al Rajhi Bank rising 0.7% and oil giant Saudi Aramco increasing 0.3%.
Aramco is moving ahead with plans to boost crude output capacity by 1 million barrels per day (bpd) to 13 million bpd despite cuts in capital expenditure this year and next year, the state oil group’s CEO Amin Nasser said on Monday.
Jarir Marketing Company gained 1.5%. The Saudi retailer proposed a higher dividend of 1.70 riyal per share for the second quarter versus 1.40 riyal a year earlier.
In Abu Dhabi, the share index rose 0.7%, buoyed by a 5.7% jump in International Holding.
Major stock markets in the Gulf rose in early trade on Tuesday, with the Abu Dhabi index boosted by gains in International Holding’s shares following a sharp rise in its second-quarter profit.
Saudi Arabia’s benchmark index was up 0.2%, with Al Rajhi Bank rising 0.7% and oil giant Saudi Aramco increasing 0.3%.
Aramco is moving ahead with plans to boost crude output capacity by 1 million barrels per day (bpd) to 13 million bpd despite cuts in capital expenditure this year and next year, the state oil group’s CEO Amin Nasser said on Monday.
Jarir Marketing Company gained 1.5%. The Saudi retailer proposed a higher dividend of 1.70 riyal per share for the second quarter versus 1.40 riyal a year earlier.
In Abu Dhabi, the share index rose 0.7%, buoyed by a 5.7% jump in International Holding.