Oil steadies as demand fears offset high OPEC+ compliance - Reuters:
Oil prices steadied on Tuesday as high compliance with supply cuts from the OPEC+ producer group offset demand fears from the new coronavirus.
Brent crude futures LCOc1 rose 9 cents to settle at $45.46 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures ended unchanged at $42.89 a barrel.
Supporting prices on Tuesday, a technical panel found that compliance with OPEC+ oil output cuts in July was between 95% and 97%, according to a draft report seen on Monday by Reuters.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a grouping known as OPEC+, eased their cuts in August to 7.7 million barrels per day (bpd) from 9.7 million bpd previously.
Tuesday 18 August 2020
Mideast Stocks: #Saudi leads Gulf markets higher; Egypt retreats | ZAWYA MENA Edition
Mideast Stocks: Saudi leads Gulf markets higher; Egypt retreats | ZAWYA MENA Edition:
Most Gulf bourses ended higher on Tuesday, with Saudi Arabia outperforming in the region on the back of banking shares, while the Egyptian index was hit by blue-chip sell-off.
Saudi Arabia's benchmark index advanced 1.2%, buoyed by a 1.5% gain in oil giant Saudi Aramco and a 4.6% leap in Riyad Bank .
The kingdom's consumer price index jumped 6.1% in July compared with last year, boosted by a tripling of value-added tax, official data showed on Sunday.
Dubai's main share index rose 0.8%, extending gains for a sixth session, with blue-chip developer Emaar Properties jumping 3.6%, while its unit Emaar Malls gained 2%.
Dubai Islamic Bank, the country's largest sharia-compliant lender, advanced as much as 2.5%.
Arabtec Holding, however, declined 4.9% to extend losses for a third straight session.
Most Gulf bourses ended higher on Tuesday, with Saudi Arabia outperforming in the region on the back of banking shares, while the Egyptian index was hit by blue-chip sell-off.
Saudi Arabia's benchmark index advanced 1.2%, buoyed by a 1.5% gain in oil giant Saudi Aramco and a 4.6% leap in Riyad Bank .
The kingdom's consumer price index jumped 6.1% in July compared with last year, boosted by a tripling of value-added tax, official data showed on Sunday.
Dubai's main share index rose 0.8%, extending gains for a sixth session, with blue-chip developer Emaar Properties jumping 3.6%, while its unit Emaar Malls gained 2%.
Dubai Islamic Bank, the country's largest sharia-compliant lender, advanced as much as 2.5%.
Arabtec Holding, however, declined 4.9% to extend losses for a third straight session.
#Kuwait budget deficit could widen to $46bln in 2020/21 -document | ZAWYA MENA Edition
Kuwait budget deficit could widen to $46bln in 2020/21 -document | ZAWYA MENA Edition:
Kuwait expects its budget deficit to widen in its 2020/21 fiscal year to 14 billion dinars ($46 billion), according to a ministry of finance estimate in a parliamentary document, as the economy reels from the coronavirus outbreak and weak oil prices.
The projection compares with a previous forecast of 7.7 billion dinars, according to the document, seen by Reuters. Kuwait's fiscal year runs from April 1 to March 31.
Kuwait is debating this week a debt law in the parliament that would allow the country to borrow as much as 20 billion dinars over 30 years.
The oil-rich Gulf state is scrambling to boost state coffers badly hit by the coronavirus crisis and low crude prices, and has been rapidly depleting its General Reserve Fund to plug a budget deficit.
Kuwait expects its budget deficit to widen in its 2020/21 fiscal year to 14 billion dinars ($46 billion), according to a ministry of finance estimate in a parliamentary document, as the economy reels from the coronavirus outbreak and weak oil prices.
The projection compares with a previous forecast of 7.7 billion dinars, according to the document, seen by Reuters. Kuwait's fiscal year runs from April 1 to March 31.
Kuwait is debating this week a debt law in the parliament that would allow the country to borrow as much as 20 billion dinars over 30 years.
The oil-rich Gulf state is scrambling to boost state coffers badly hit by the coronavirus crisis and low crude prices, and has been rapidly depleting its General Reserve Fund to plug a budget deficit.
Oil holds gains made on high OPEC+ compliance - Reuters
Oil holds gains made on high OPEC+ compliance - Reuters:
Oil prices were broadly steady on Tuesday, hanging on to gains from the previous session thanks to high compliance with production cuts from members of the OPEC+ producer group.
Brent crude LCOc1 eased by 9 cents, or 0.2%, to $45.28 a barrel by 1117 GMT, having gained 1.3% on Monday. U.S. crude LCOc1 edged down by 17 cents, or 0.4%, to $42.72 after a rise of 2.1% in the previous session.
A technical panel found that compliance with OPEC+ oil output cuts in July was between 95% and 97%, according to a draft report seen on Monday by Reuters.
The panel considered a scenario of substantial downside risk to oil demand if the coronavirus pandemic conditions worsen, the report said, calling for “vigilance and close monitoring of the implementation of the compensation for overproduction”.
Oil prices were broadly steady on Tuesday, hanging on to gains from the previous session thanks to high compliance with production cuts from members of the OPEC+ producer group.
Brent crude LCOc1 eased by 9 cents, or 0.2%, to $45.28 a barrel by 1117 GMT, having gained 1.3% on Monday. U.S. crude LCOc1 edged down by 17 cents, or 0.4%, to $42.72 after a rise of 2.1% in the previous session.
A technical panel found that compliance with OPEC+ oil output cuts in July was between 95% and 97%, according to a draft report seen on Monday by Reuters.
The panel considered a scenario of substantial downside risk to oil demand if the coronavirus pandemic conditions worsen, the report said, calling for “vigilance and close monitoring of the implementation of the compensation for overproduction”.
European, Middle Eastern & African Stocks - Bloomberg #Qatar #SaudiArabia 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.
Israel Eyes Commercial Mission to Lift #UAE Trade to $500 Million - Bloomberg
Israel Eyes Commercial Mission to Lift UAE Trade to $500 Million - Bloomberg:
Israel aims to open a commercial mission in its eventual embassy in the United Arab Emirates to help lift its exports to the country to as much as $500 million after their landmark agreement to normalize ties.
“We need to meet them, we need to talk to them and see what they think,” Ohad Cohen, head of Israel’s Foreign Trade Administration within the Ministry of Economy, said in an interview. The goal will be to have many bilateral frameworks with the UAE, he said.
The Economy Ministry is targeting commerce of $300 million to $500 million, and a similar level of trade and investment coming into Israel, according to an Israeli official, who requested anonymity because the estimates aren’t public. That would place the UAE on par with countries like Poland and Vietnam among Israel’s trade partners.
At the moment, Israel exports goods worth just $300,000 a year to the UAE, a figure that probably underestimates the true value of the deals.
Israel aims to open a commercial mission in its eventual embassy in the United Arab Emirates to help lift its exports to the country to as much as $500 million after their landmark agreement to normalize ties.
“We need to meet them, we need to talk to them and see what they think,” Ohad Cohen, head of Israel’s Foreign Trade Administration within the Ministry of Economy, said in an interview. The goal will be to have many bilateral frameworks with the UAE, he said.
The Economy Ministry is targeting commerce of $300 million to $500 million, and a similar level of trade and investment coming into Israel, according to an Israeli official, who requested anonymity because the estimates aren’t public. That would place the UAE on par with countries like Poland and Vietnam among Israel’s trade partners.
At the moment, Israel exports goods worth just $300,000 a year to the UAE, a figure that probably underestimates the true value of the deals.
Middle East News: #Qatar Airways Refunds, Offers Other Compensation From Covid-19 - Bloomberg
Middle East News: Qatar Airways Refunds, Offers Other Compensation From Covid-19 - Bloomberg:
Qatar Airways has paid more than $1.2 billion in refunds to 600,000 people since March after the coronavirus pandemic forced passengers to scrap their travel plans.
“The amount we have paid out in refunds has undoubtedly had an impact on our bottom line,” Akbar Al Baker, chief executive officer of the state-owned carrier, said in a Tuesday statement, adding that the airline’s finances are strong enough to withstand the impact.
Qatar Airways has paid more than $1.2 billion in refunds to 600,000 people since March after the coronavirus pandemic forced passengers to scrap their travel plans.
“The amount we have paid out in refunds has undoubtedly had an impact on our bottom line,” Akbar Al Baker, chief executive officer of the state-owned carrier, said in a Tuesday statement, adding that the airline’s finances are strong enough to withstand the impact.
European, Middle Eastern & African Stocks - Bloomberg #UAE close; #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.
#UAE's Network International reveals 15.3% drop in Middle East revenues for H1 - Arabianbusiness
UAE's Network International reveals 15.3% drop in Middle East revenues for H1 - Arabianbusiness:
UAE-based payment solutions provider Network International saw its total revenues in the Middle East drop by 15.3 percent in the first six months of the year as a result of the Covid-19-enforced lockdowns and reduced customer spending.
In Africa, revenues fell 10.5 percent year-on-year for H1, while the company’s total revenue for the MENA region was down 11.9 percent.
This resulted in a $150,000 loss for the period, reflecting lower underlying EBITDA and the write-off of $6.7 million of capitalised debt issuance fees associated with the prior lending facility.
Simon Haslam, chief executive officer, said: "There has been much for the business to focus on through this period and we have continued to prioritise supporting our customers and colleagues in navigating through the challenges presented by Covid-19.
UAE-based payment solutions provider Network International saw its total revenues in the Middle East drop by 15.3 percent in the first six months of the year as a result of the Covid-19-enforced lockdowns and reduced customer spending.
In Africa, revenues fell 10.5 percent year-on-year for H1, while the company’s total revenue for the MENA region was down 11.9 percent.
This resulted in a $150,000 loss for the period, reflecting lower underlying EBITDA and the write-off of $6.7 million of capitalised debt issuance fees associated with the prior lending facility.
Simon Haslam, chief executive officer, said: "There has been much for the business to focus on through this period and we have continued to prioritise supporting our customers and colleagues in navigating through the challenges presented by Covid-19.
Oil settles back after gains made on OPEC+ abiding by output cuts - Reuters
Oil settles back after gains made on OPEC+ abiding by output cuts - Reuters:
Oil prices held onto most of their overnight gains on Tuesday after the OPEC+ producer grouping said members were almost fully complying with agreed output cuts to support prices amid a drop in demand for fuels due to the coronavirus pandemic.
Brent crude LCOc1 was down 18 cents, or 0.4%, at $45.19 a barrel by 0702 GMT, after gaining 1.3% on Monday.
U.S. crude was down 26 cents, or 0.6%, at $42.63 a barrel, having risen 2.1% in the previous session.
Compliance with OPEC+ oil output cuts was seen at around 97% in July, two OPEC+ sources told Reuters. The oil producers curbed output by record amounts to reduce worldwide inventories, as demand collapsed due to the pandemic.
Oil prices held onto most of their overnight gains on Tuesday after the OPEC+ producer grouping said members were almost fully complying with agreed output cuts to support prices amid a drop in demand for fuels due to the coronavirus pandemic.
Brent crude LCOc1 was down 18 cents, or 0.4%, at $45.19 a barrel by 0702 GMT, after gaining 1.3% on Monday.
U.S. crude was down 26 cents, or 0.6%, at $42.63 a barrel, having risen 2.1% in the previous session.
Compliance with OPEC+ oil output cuts was seen at around 97% in July, two OPEC+ sources told Reuters. The oil producers curbed output by record amounts to reduce worldwide inventories, as demand collapsed due to the pandemic.
MIDEAST STOCKS-Property shares weigh on #Dubai as major Gulf markets ease - Reuters
MIDEAST STOCKS-Property shares weigh on Dubai as major Gulf markets ease - Reuters:
Most major stock markets in the Gulf were subdued in early trade on Tuesday, as the Dubai index was hit by losses in real state shares.
Saudi Arabia’s benchmark index slipped 0.1%, weighed by petrochemical maker Saudi Basic Industries, which fell 0.6%, and Al Rajhi Bank, which slipped 0.2%.
Dubai’s main share index retreated 0.6%, pressured by a 1.4% fall in Emaar Malls and a 2.4% drop in DAMAC Properties.
Property prices in Dubai, which has a diversified economy that focuses on tourism and international business services, have been falling since its peak in 2014 due to a continued gap between supply and demand.
Arabtec Holding declined 4.9% and was on course to post its third straight session of losses.
Most major stock markets in the Gulf were subdued in early trade on Tuesday, as the Dubai index was hit by losses in real state shares.
Saudi Arabia’s benchmark index slipped 0.1%, weighed by petrochemical maker Saudi Basic Industries, which fell 0.6%, and Al Rajhi Bank, which slipped 0.2%.
Dubai’s main share index retreated 0.6%, pressured by a 1.4% fall in Emaar Malls and a 2.4% drop in DAMAC Properties.
Property prices in Dubai, which has a diversified economy that focuses on tourism and international business services, have been falling since its peak in 2014 due to a continued gap between supply and demand.
Arabtec Holding declined 4.9% and was on course to post its third straight session of losses.