Oil hits 5-month highs as U.S. producers cut output ahead of hurricane | Financial Post:
Crude oil prices rose to a five-month high on Tuesday as U.S. producers shut most offshore output in the Gulf of Mexico ahead of Hurricane Laura even as rising coronavirus cases in Asia and Europe capped gains.
Brent futures rose 73 cents, or 1.6%, to settle at $45.86 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 73 cents, or 1.7%, to settle at $43.35.
That was the highest closes for both benchmarks since March 5, the day before Saudi Arabia and Russia failed to agree on a new plan to cut output and about a week before the World Health Organization declared COVID-19 a pandemic.
U.S. producers cut crude output ahead of Hurricane Laura at a rate approaching the level of 2005’s Hurricane Katrina and also halted most oil refining along the Texas/Louisiana coast.
Tuesday, 25 August 2020
#Qatar Considers Economic Aid for Lebanon After Beirut Blast - Bloomberg
Qatar Considers Economic Aid for Lebanon After Beirut Blast - Bloomberg:
Qatar is considering giving economic aid to Lebanon to help it through its worst financial crisis in decades and rebuild Beirut following this month’s massive explosion.
“We have some ideas that we will discuss with the Lebanese government,” Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani said in a press conference on Tuesday during a visit to the city.
The Gulf country sent $50 million to Lebanon soon after the blast at Beirut’s port on Aug. 4.
Qatar was mulling assistance for Lebanon even before the explosion, Al Thani said.
Qatar is considering giving economic aid to Lebanon to help it through its worst financial crisis in decades and rebuild Beirut following this month’s massive explosion.
“We have some ideas that we will discuss with the Lebanese government,” Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani said in a press conference on Tuesday during a visit to the city.
The Gulf country sent $50 million to Lebanon soon after the blast at Beirut’s port on Aug. 4.
Qatar was mulling assistance for Lebanon even before the explosion, Al Thani said.
#AbuDhabi tightens guidance, gets over $23bln demand for three-part bonds - document | ZAWYA MENA Edition
Abu Dhabi tightens guidance, gets over $23bln demand for three-part bonds - document | ZAWYA MENA Edition:
Abu Dhabi tightened the price guidance on Tuesday for a three-tranche U.S. dollar-denominated bond offering and received more than $23 billion in orders for the debt sale, a document showed.
The notes due in 2023 were tightened to 70-75 basis points (bps) over U.S. Treasuries from around 95 bps earlier in the day. The tranche due in March 2031 was tightened to 110-115 bps from around 135 bps and the bonds due in 2070 were tightened to 2.75-2.8% from around 3%.
Abu Dhabi tightened the price guidance on Tuesday for a three-tranche U.S. dollar-denominated bond offering and received more than $23 billion in orders for the debt sale, a document showed.
The notes due in 2023 were tightened to 70-75 basis points (bps) over U.S. Treasuries from around 95 bps earlier in the day. The tranche due in March 2031 was tightened to 110-115 bps from around 135 bps and the bonds due in 2070 were tightened to 2.75-2.8% from around 3%.
MIDEAST STOCKS- #Dubai leads gains on property shares; #Saudi eases - Reuters
MIDEAST STOCKS-Dubai leads gains on property shares; Saudi eases - Reuters:
Dubai shares reversed early losses to close higher on Tuesday, led by gains in property stocks, while other major markets in the Gulf region were little changed.
Dubai's main share index gained 1%, with blue-chip developer Emaar Properties rising 2.4% and its unit Emaar Development advancing 3.9%.
Elsewhere, sharia-compliant lender Dubai Islamic Bank was up 1.9%.
Saudi Arabia's benchmark index lost 0.2%, driven down by a 1.6% decline in the kingdom's largest lender National Commercial Bank, while Jabal Omar Development slid 4.3%.
The developer on Monday posted a net loss of 465.2 million riyals ($124.04 million) in second-quarter, compared to a profit of 29.8 million riyals a year earlier.
Dubai shares reversed early losses to close higher on Tuesday, led by gains in property stocks, while other major markets in the Gulf region were little changed.
Dubai's main share index gained 1%, with blue-chip developer Emaar Properties rising 2.4% and its unit Emaar Development advancing 3.9%.
Elsewhere, sharia-compliant lender Dubai Islamic Bank was up 1.9%.
Saudi Arabia's benchmark index lost 0.2%, driven down by a 1.6% decline in the kingdom's largest lender National Commercial Bank, while Jabal Omar Development slid 4.3%.
The developer on Monday posted a net loss of 465.2 million riyals ($124.04 million) in second-quarter, compared to a profit of 29.8 million riyals a year earlier.
Mideast News: Top #Saudi Binladin Executives Leave Amid $15 Billion Debt Revamp - Bloomberg
Mideast News: Top Saudi Binladin Executives Leave Amid $15 Billion Debt Revamp - Bloomberg:
Saudi Binladin Group lost two more senior executives, including the head of its biggest business, as the Saudi Arabian construction giant grapples with a crushing debt load of about $15 billion.
Majid Al Harthy resigned as chief executive officer of the Jeddah-based company’s construction division and was replaced by Abdulrahman Bajunaid on Aug. 19, according to an internal announcement seen by Bloomberg. Bajunaid is experienced in financial restructuring, having held senior positions in banking and other private-sector businesses, the memorandum said, without giving reasons for why Al Harthy quit.
The CEO’s exit follows the resignation earlier this month of Saad Bin Laden, the vice chairman of its parent, Binladin International Holding Group, people familiar with the situation said.
The holding company also appointed Ahmed Al Sanea as acting managing director, they said, asking not to be identified speaking publicly about internal matters. The CEO of that same entity is Khalid Al Gwaiz, who joined in March.
Saudi Binladin Group lost two more senior executives, including the head of its biggest business, as the Saudi Arabian construction giant grapples with a crushing debt load of about $15 billion.
Majid Al Harthy resigned as chief executive officer of the Jeddah-based company’s construction division and was replaced by Abdulrahman Bajunaid on Aug. 19, according to an internal announcement seen by Bloomberg. Bajunaid is experienced in financial restructuring, having held senior positions in banking and other private-sector businesses, the memorandum said, without giving reasons for why Al Harthy quit.
The CEO’s exit follows the resignation earlier this month of Saad Bin Laden, the vice chairman of its parent, Binladin International Holding Group, people familiar with the situation said.
The holding company also appointed Ahmed Al Sanea as acting managing director, they said, asking not to be identified speaking publicly about internal matters. The CEO of that same entity is Khalid Al Gwaiz, who joined in March.
#AbuDhabi fund said to be seek resolution to Mumbai airport takeover deal - Arabianbusiness
Abu Dhabi fund said to be seek resolution to Mumbai airport takeover deal - Arabianbusiness:
Abu Dhabi Investment Authority (ADIA) has reportedly sought the Indian government’s help in resolving a tussle over its takeover bid for Mumbai International Airport Ltd (MIAL) amid a rival bid from the Adani Group to acquire the aviation hub.
ADIA, in consortium with India’s NIIF (National Infrastructure and Investment Fund) and Canada’s PSP (Public Sector Pension) Investments, have an existing agreement with the GVK Group, the promoter of MIAL, to acquire 79 percent stake in GVK Airport Holdings for $964 million.
The agreement entered into April 2019 has ‘deal exclusivity’ until January 31, 2021.
ADIA, which told Arabian Business it had no comment to make on a report in India's Economic Times, has reportedly written to India’s Prime Minister’s Office and finance ministry for a fair resolution to the takeover tussle.
Abu Dhabi Investment Authority (ADIA) has reportedly sought the Indian government’s help in resolving a tussle over its takeover bid for Mumbai International Airport Ltd (MIAL) amid a rival bid from the Adani Group to acquire the aviation hub.
ADIA, in consortium with India’s NIIF (National Infrastructure and Investment Fund) and Canada’s PSP (Public Sector Pension) Investments, have an existing agreement with the GVK Group, the promoter of MIAL, to acquire 79 percent stake in GVK Airport Holdings for $964 million.
The agreement entered into April 2019 has ‘deal exclusivity’ until January 31, 2021.
ADIA, which told Arabian Business it had no comment to make on a report in India's Economic Times, has reportedly written to India’s Prime Minister’s Office and finance ministry for a fair resolution to the takeover tussle.
Steady oil price belies weakening physical market - Reuters
Steady oil price belies weakening physical market - Reuters:
The oil price is holding steady close to $45 a barrel, but prices further forward and in the physical market are showing new signs of weakness mainly due to a fall in demand from China after the country’s buying binge earlier in the year.
The spread between Brent crude for nearby delivery and six-months ahead is at its widest since late May at around $2.50, a market structure known as contango.
The coronavirus crisis reduced global oil demand by nearly a third in April and May when 4 billion people around the world were in some form of lockdown.
The market began to rebalance in late May when economies began to reopen and as OPEC and other major producing countries made big production cuts.
The oil price is holding steady close to $45 a barrel, but prices further forward and in the physical market are showing new signs of weakness mainly due to a fall in demand from China after the country’s buying binge earlier in the year.
The spread between Brent crude for nearby delivery and six-months ahead is at its widest since late May at around $2.50, a market structure known as contango.
The coronavirus crisis reduced global oil demand by nearly a third in April and May when 4 billion people around the world were in some form of lockdown.
The market began to rebalance in late May when economies began to reopen and as OPEC and other major producing countries made big production cuts.
Emirates and Etihad airlines ask crew to take more unpaid leave - Reuters
Emirates and Etihad airlines ask crew to take more unpaid leave - Reuters:
Middle East airlines Emirates and Etihad Airways have again asked cabin crew to take voluntary unpaid leave as they try to manage the impact from the COVID-19 pandemic, according to internal memos and sources familiar with the matter.
Aviation has been one of the worst-hit industries during the pandemic and Emirates and Etihad of the United Arab Emirates have cut thousands of jobs, sources have said.
In an internal memo, Emirates crew are told they can take unpaid leave for between one and three months from Sept. 1 to Nov. 30 owing to expected staffing requirements.
Emirates, which in July asked pilots and crew to take four months of unpaid leave, also laid off some crew last week, two sources said, continuing a redundancy process that began in July.
Middle East airlines Emirates and Etihad Airways have again asked cabin crew to take voluntary unpaid leave as they try to manage the impact from the COVID-19 pandemic, according to internal memos and sources familiar with the matter.
Aviation has been one of the worst-hit industries during the pandemic and Emirates and Etihad of the United Arab Emirates have cut thousands of jobs, sources have said.
In an internal memo, Emirates crew are told they can take unpaid leave for between one and three months from Sept. 1 to Nov. 30 owing to expected staffing requirements.
Emirates, which in July asked pilots and crew to take four months of unpaid leave, also laid off some crew last week, two sources said, continuing a redundancy process that began in July.
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.
Abu Dhabi comes back to bond market with three-part dollar issue
Abu Dhabi comes back to bond market with three-part dollar issue
Abu Dhabi started marketing on Tuesday a U.S. dollar-denominated bond offering split into three tranches of three, 10 and a half and 50 years, a document showed.
Each bond tranche is of benchmark size, which generally means at least $500 million each, according to the document issued by one of the banks leading the deal and seen by Reuters.
The paper due in 2023 offers investors an initial price of around 95 basis points over U.S. Treasuries and a second tranche due in March 2031 offers around 135 basis points over the same benchmark.
The longest tranche, maturing in 2070, offers around 3%.
Abu Dhabi started marketing on Tuesday a U.S. dollar-denominated bond offering split into three tranches of three, 10 and a half and 50 years, a document showed.
Each bond tranche is of benchmark size, which generally means at least $500 million each, according to the document issued by one of the banks leading the deal and seen by Reuters.
The paper due in 2023 offers investors an initial price of around 95 basis points over U.S. Treasuries and a second tranche due in March 2031 offers around 135 basis points over the same benchmark.
The longest tranche, maturing in 2070, offers around 3%.
Yara completes $1 billion #Qatar sale, starts share buyback - Reuters
Yara completes $1 billion Qatar sale, starts share buyback - Reuters:
Yara (YAR.OL), one of the world’s largest fertiliser makers, has completed a long-awaited sale of its stake in Qatar Fertiliser Company, paving the way for a significant share buyback program, the Norwegian company said on Tuesday.
Yara in March agreed to sell its 25% holding in Qafco to Qatar Petroleum for $1 billion, exiting a partnership that began more than 50 years ago, but the deal was conditional on regulatory approvals that have now been granted.
Oslo-based Yara will now initiate a buyback of up to 5% of its own shares, it said in a statement.
The company will buy up to 8.55 million shares on the open market and aims to purchase a further 4.85 million shares from the holdings of the Norwegian government - thus keeping the state’s stake in Yara unchanged at 36.2%.
Yara (YAR.OL), one of the world’s largest fertiliser makers, has completed a long-awaited sale of its stake in Qatar Fertiliser Company, paving the way for a significant share buyback program, the Norwegian company said on Tuesday.
Yara in March agreed to sell its 25% holding in Qafco to Qatar Petroleum for $1 billion, exiting a partnership that began more than 50 years ago, but the deal was conditional on regulatory approvals that have now been granted.
Oslo-based Yara will now initiate a buyback of up to 5% of its own shares, it said in a statement.
The company will buy up to 8.55 million shares on the open market and aims to purchase a further 4.85 million shares from the holdings of the Norwegian government - thus keeping the state’s stake in Yara unchanged at 36.2%.
Etihad asks cabin crew to take up to six months unpaid leave: memo - Reuters
Etihad asks cabin crew to take up to six months unpaid leave: memo - Reuters:
Etihad Airways is asking cabin crew to take up to six months unpaid leave from September as it tries to manage the impact of the COVID-19 pandemic, according to an internal memo and two sources familiar with the matter.
The Abu Dhabi state carrier, which lost $758 million in the first half of the year, has been gradually resuming passenger services since June after grounding flights in March.
In an internal memo, staff were told that the airline has more cabin crew than are required and that many are not being rostered on flights, which is not sustainable for the business.
Cabin crew can take between 10 days to six months of unpaid leave from Sept. 16, the email said.
Etihad Airways is asking cabin crew to take up to six months unpaid leave from September as it tries to manage the impact of the COVID-19 pandemic, according to an internal memo and two sources familiar with the matter.
The Abu Dhabi state carrier, which lost $758 million in the first half of the year, has been gradually resuming passenger services since June after grounding flights in March.
In an internal memo, staff were told that the airline has more cabin crew than are required and that many are not being rostered on flights, which is not sustainable for the business.
Cabin crew can take between 10 days to six months of unpaid leave from Sept. 16, the email said.
Oil prices mixed on storm-driven output cuts, rising COVID-19 cases - Reuters
Oil prices mixed on storm-driven output cuts, rising COVID-19 cases - Reuters:
Crude oil prices were mixed on Tuesday as traders weighed massive production cuts in the U.S. Gulf Coast from Tropical Storms Marco and Laura against rising coronavirus cases in Asia and Europe.
Brent crude oil futures LCOc1 added 14 cents, or 0.3%, to $45.27 a barrel by 0700 GMT, while U.S. West Texas Intermediate crude CLc1 was down 4 cents, or 0.1%, at $42.58 a barrel.
“A jump last week in the U.S. rig count and mixed data on COVID-19 infections are having a muted negative effect on oil this week, thanks in part to the possible disruption from two separate hurricanes moving into the U.S. Gulf Coast region,” said Stephen Innes, chief global markets strategist at AxiCorp.
Energy companies moved to cut production at U.S. Gulf Coast oil refineries on Monday after shutting 82% of the area’s offshore crude oil output as the rare double-storm assault on key U.S. oil regions threatens to bring days of heavy rains and strong winds this week.
Crude oil prices were mixed on Tuesday as traders weighed massive production cuts in the U.S. Gulf Coast from Tropical Storms Marco and Laura against rising coronavirus cases in Asia and Europe.
Brent crude oil futures LCOc1 added 14 cents, or 0.3%, to $45.27 a barrel by 0700 GMT, while U.S. West Texas Intermediate crude CLc1 was down 4 cents, or 0.1%, at $42.58 a barrel.
“A jump last week in the U.S. rig count and mixed data on COVID-19 infections are having a muted negative effect on oil this week, thanks in part to the possible disruption from two separate hurricanes moving into the U.S. Gulf Coast region,” said Stephen Innes, chief global markets strategist at AxiCorp.
Energy companies moved to cut production at U.S. Gulf Coast oil refineries on Monday after shutting 82% of the area’s offshore crude oil output as the rare double-storm assault on key U.S. oil regions threatens to bring days of heavy rains and strong winds this week.
MIDEAST STOCKS- #Saudi gains on banking strength; #UAE bourses slip as financials weigh - Reuters
MIDEAST STOCKS-Saudi gains on banking strength; UAE bourses slip as financials weigh - Reuters:
Saudi Arabian shares rose in early trade on Tuesday, led by gains in banking stocks, while losses in financials weighed on Dubai and Abu Dhabi equity markets.
The Saudi Arabian benchmark index rose 0.4%, with Saudi British Bank and Al Rajhi Bank gaining 1.7% and 0.5%, respectively.
National Shipping Carrier of Saudi Arabia (Bahri) gained 0.7%, after Saudi state-owned companies SALIC and Bahri announced forming a commodities joint venture, National Grains Company, on Monday.
Dubai’s main share index dropped 0.5%, dragged by a 2.7% decline in Emirates NBD Bank and a 1% fall in blue-chip developer Emaar Properties.
The Abu Dhabi index lost 0.6%, hurt by a 1% fall in the country’s largest lender First Abu Dhabi Bank and a 0.4% slip in telecoms firm Etisalat.
Saudi Arabian shares rose in early trade on Tuesday, led by gains in banking stocks, while losses in financials weighed on Dubai and Abu Dhabi equity markets.
The Saudi Arabian benchmark index rose 0.4%, with Saudi British Bank and Al Rajhi Bank gaining 1.7% and 0.5%, respectively.
National Shipping Carrier of Saudi Arabia (Bahri) gained 0.7%, after Saudi state-owned companies SALIC and Bahri announced forming a commodities joint venture, National Grains Company, on Monday.
Dubai’s main share index dropped 0.5%, dragged by a 2.7% decline in Emirates NBD Bank and a 1% fall in blue-chip developer Emaar Properties.
The Abu Dhabi index lost 0.6%, hurt by a 1% fall in the country’s largest lender First Abu Dhabi Bank and a 0.4% slip in telecoms firm Etisalat.