Middle East Business, Oil Trading News: MENA Energy DMCC — Banks Cut Exposure - Bloomberg:
Several banks are reducing their exposure to Dubai-based oil trader MENA Energy DMCC, as the coronavirus hits commodity businesses and global lenders cut funding.
BNP Paribas SA, Natixis SA and Middle Eastern lenders including Emirates NBD PJSC, Emirates Islamic Bank PJSC and National Bank of Fujairah PJSC have either frozen credit lines or decided to stop dealing with MENA Energy in recent months, according to people with knowledge of the situation, who asked not to be identified because the matter is confidential.
All five banks declined to comment. MENA Energy’s chief executive officer, Rashid Al Ghurair, wasn’t available for comment and a spokesperson for the company, which buys and sells products such as gasoline, fuel oil and jet fuel, declined to discuss its financial situation.
Thursday, 20 August 2020
#Saudi Oil Prince Abdulaziz bin Salman: How He Wins Against OPEC+ Crude Cheats - Bloomberg
Saudi Oil Prince Abdulaziz bin Salman: How He Wins Against OPEC+ Crude Cheats - Bloomberg:
The Saudi royal running the kingdom’s oil policy is achieving something his predecessor never did: bringing the quota cheats of OPEC+ to heel.
Prince Abdulaziz bin Salman has done this through an unusual method. The cartel has instructed members who failed to deliver their agreed share of oil-production cuts -- like Iraq and Nigeria -- to promise extra reductions in compensation.
These punishments pose an unrealistically onerous burden for economies that have been laid low by the oil slump. Sure enough, the countries concerned aren’t complying with them, and initial compensation cuts pledged for July never happened.
But the strategy is paying off for the Saudis. In July, Iraq and Nigeria both achieved 85% of their targeted reductions, according to OPEC+ data, levels of compliance they’ve almost never displayed before.
The Saudi royal running the kingdom’s oil policy is achieving something his predecessor never did: bringing the quota cheats of OPEC+ to heel.
Prince Abdulaziz bin Salman has done this through an unusual method. The cartel has instructed members who failed to deliver their agreed share of oil-production cuts -- like Iraq and Nigeria -- to promise extra reductions in compensation.
These punishments pose an unrealistically onerous burden for economies that have been laid low by the oil slump. Sure enough, the countries concerned aren’t complying with them, and initial compensation cuts pledged for July never happened.
But the strategy is paying off for the Saudis. In July, Iraq and Nigeria both achieved 85% of their targeted reductions, according to OPEC+ data, levels of compliance they’ve almost never displayed before.
Oil falls 1% on OPEC+ oversupply, U.S. jobless data - Reuters
Oil falls 1% on OPEC+ oversupply, U.S. jobless data - Reuters:
Oil fell 1% on Thursday after Reuters reported OPEC+ needed to address daily oversupply of more than 2 million barrels, and the number of U.S. unemployment benefit claims rose unexpectedly, signalling a slow economic recovery.
Brent crude LCOc1 fell 47 cents, or 1%, to settle at $44.90 a barrel while West Texas Intermediate (WTI) CLc1 for September delivery ended the session 35 cents, or 0.8% lower, at $42.58 a barrel on the last day of trading. The more active October WTI contract CLV0 ended down 29 cents, or 0.7%, at $42.82 a barrel.
The Organization of the Petroleum Exporting Countries and its allies, known an OPEC+, said on Wednesday the pace of the oil market recovery appeared to be slower than anticipated with growing risks of a prolonged second wave of the pandemic.
Prices came under renewed pressure after Reuters reported that some OPEC+ members would need to cut output by an extra 2.31 million barrels per day (bpd) to make up for recent oversupply.
Oil fell 1% on Thursday after Reuters reported OPEC+ needed to address daily oversupply of more than 2 million barrels, and the number of U.S. unemployment benefit claims rose unexpectedly, signalling a slow economic recovery.
Brent crude LCOc1 fell 47 cents, or 1%, to settle at $44.90 a barrel while West Texas Intermediate (WTI) CLc1 for September delivery ended the session 35 cents, or 0.8% lower, at $42.58 a barrel on the last day of trading. The more active October WTI contract CLV0 ended down 29 cents, or 0.7%, at $42.82 a barrel.
The Organization of the Petroleum Exporting Countries and its allies, known an OPEC+, said on Wednesday the pace of the oil market recovery appeared to be slower than anticipated with growing risks of a prolonged second wave of the pandemic.
Prices came under renewed pressure after Reuters reported that some OPEC+ members would need to cut output by an extra 2.31 million barrels per day (bpd) to make up for recent oversupply.
OPEC+ needs to fix daily oversupply of more than 2mln barrels -document | ZAWYA MENA Edition
OPEC+ needs to fix daily oversupply of more than 2mln barrels -document | ZAWYA MENA Edition:
Some members of the OPEC+ group of oil-producing nations would need to slash output by an extra 2.31 million barrels per day (bpd) to make up for their recent oversupply, an internal OPEC+ report seen by Reuters shows.
The surplus seen between May and July ought to be compensated for in August and September, the report said.
OPEC+ - which includes members of the Organization of the Petroleum Exporting Countries and other producers including Russia - stepped up their joint output cuts to a record 9.7 million bpd in May before tapering them to 7.7 million bpd this month.
In April the impact of the new coronavirus on air and road travel and other areas of the global economy sent benchmark oil prices LCOc1 below $16 a barrel.
The ongoing spread of the virus is now threatening oil demand recovery forecasts.
Some members of the OPEC+ group of oil-producing nations would need to slash output by an extra 2.31 million barrels per day (bpd) to make up for their recent oversupply, an internal OPEC+ report seen by Reuters shows.
The surplus seen between May and July ought to be compensated for in August and September, the report said.
OPEC+ - which includes members of the Organization of the Petroleum Exporting Countries and other producers including Russia - stepped up their joint output cuts to a record 9.7 million bpd in May before tapering them to 7.7 million bpd this month.
In April the impact of the new coronavirus on air and road travel and other areas of the global economy sent benchmark oil prices LCOc1 below $16 a barrel.
The ongoing spread of the virus is now threatening oil demand recovery forecasts.
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.
#Kuwait passes law to protect ailing companies, attract investors | ZAWYA MENA Edition
Kuwait passes law to protect ailing companies, attract investors | ZAWYA MENA Edition:
The Kuwaiti parliament has approved a law to increase protection for troubled businesses and provide two new options before they are forced to declare bankruptcy, a parliamentary committee report showed.
Under the 40-year-old previous law, failure to make debt repayments meant automatic bankruptcy and the defaulter faced penalties, including imprisonment, deprivation of political rights and travel bans.
The new law does not treat failure to pay debt as a criminal offence, unless it is fraudulent. It also allows bankruptcy to be avoided either by a settlement with creditors or a restructuring plan.
This law is "one of the most important laws supporting improving the business environment and attracting foreign investment," the committee report said. "It contains clear legal rules and standards that preserve the rights of investors and achieves a balance between the creditor and the debtor."
The Kuwaiti parliament has approved a law to increase protection for troubled businesses and provide two new options before they are forced to declare bankruptcy, a parliamentary committee report showed.
Under the 40-year-old previous law, failure to make debt repayments meant automatic bankruptcy and the defaulter faced penalties, including imprisonment, deprivation of political rights and travel bans.
The new law does not treat failure to pay debt as a criminal offence, unless it is fraudulent. It also allows bankruptcy to be avoided either by a settlement with creditors or a restructuring plan.
This law is "one of the most important laws supporting improving the business environment and attracting foreign investment," the committee report said. "It contains clear legal rules and standards that preserve the rights of investors and achieves a balance between the creditor and the debtor."
MIDEAST STOCKS-Major Gulf markets dip as banks weigh on #Dubai - Reuters
MIDEAST STOCKS-Major Gulf markets dip 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 fell 0.2%, with Riyad Bank retreating 2.1% and Al Rajhi Bank losing 0.3%.
National Industrialization Co slid 0.7% after the petrochemical firm posted a loss of 188.8 million riyals in the second quarter, compared with a profit of 212.1 million riyals a year earlier.
Dubai’s main share index declined 0.5%, pressured by a 1% fall in sharia-compliant lender Dubai Islamic Bank and a 0.9% drop in Emirates NBD Bank.
On Wednesday, the United Arab Emirates recorded its highest daily number of COVID-19 infections in more than a month, a day after the health minister warned cases may rise.
Major stock markets in the Gulf were subdued on Thursday, with Dubai hurt by losses in its banking shares.
Saudi Arabia’s benchmark index fell 0.2%, with Riyad Bank retreating 2.1% and Al Rajhi Bank losing 0.3%.
National Industrialization Co slid 0.7% after the petrochemical firm posted a loss of 188.8 million riyals in the second quarter, compared with a profit of 212.1 million riyals a year earlier.
Dubai’s main share index declined 0.5%, pressured by a 1% fall in sharia-compliant lender Dubai Islamic Bank and a 0.9% drop in Emirates NBD Bank.
On Wednesday, the United Arab Emirates recorded its highest daily number of COVID-19 infections in more than a month, a day after the health minister warned cases may rise.
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.
Oil falls amid demand threat, lower-than-expected drop in stockpiles - Reuters
Oil falls amid demand threat, lower-than-expected drop in stockpiles - Reuters:
Oil prices fell on Thursday as major producers warned of a risk to demand recovery if the coronavirus crisis is prolonged, while U.S. crude inventories dropped less than expected.
Brent crude LCOc1 was down 34 cents, or 0.8%, at $45.03 a barrel by 0732 GMT. U.S. oil CLc1 was down 36 cents, or 0.8%, at $42.57 a barrel.
Stockpiles of crude in the United States fell a fourth straight week, even as net imports rose, the Energy Information Administration (EIA) said on Wednesday. However, the 1.6 million-barrel decline for the week to Aug. 14 was less than a Reuters poll showing expectations for a 2.7 million-barrel fall.
Fuel demand was down 14% from the year-earlier period over the last four weeks, the EIA data also showed.
Oil prices fell on Thursday as major producers warned of a risk to demand recovery if the coronavirus crisis is prolonged, while U.S. crude inventories dropped less than expected.
Brent crude LCOc1 was down 34 cents, or 0.8%, at $45.03 a barrel by 0732 GMT. U.S. oil CLc1 was down 36 cents, or 0.8%, at $42.57 a barrel.
Stockpiles of crude in the United States fell a fourth straight week, even as net imports rose, the Energy Information Administration (EIA) said on Wednesday. However, the 1.6 million-barrel decline for the week to Aug. 14 was less than a Reuters poll showing expectations for a 2.7 million-barrel fall.
Fuel demand was down 14% from the year-earlier period over the last four weeks, the EIA data also showed.