Oil up more than 4% as U.S. stockpiles fall, hurricane hits output | Reuters:
Oil prices jumped more than 4% on Wednesday, following a drawdown in U.S. crude and gasoline inventories and as Hurricane Sally forced a swath of U.S. offshore production to shut.
Brent crude LCOc1 settled at $42.22 a barrel, up $1.69, or 4.2%. U.S. crude CLc1 finished $1.88, or 4.9%.at $40.16 a barrel.
U.S. crude stocks fell 4.4 million barrels last week to 496 million barrels, their lowest since April, the U.S. Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 1.3 million-barrel rise.
U.S. gasoline stocks fell 400,000 barrels, the EIA said, more than double the draw forecast, while refining utilization rates ticked up 4 percentage points.
Wednesday 16 September 2020
Cost of Reversing Oil Crash Is Adding Up for #SaudiArabia: Chart - Bloomberg
Cost of Reversing Oil Crash Is Adding Up for Saudi Arabia: Chart - Bloomberg:
Saudi Arabia helped revive the oil market in the second quarter, but at a stinging cost to its finances. The kingdom’s crude exports dropped to the lowest on a quarterly basis since at least 2016 as it led a campaign alongside Russia to curb oil production following a coronavirus-induced price crash. While the effort yielded a stark turnaround in prices in May and June, Saudi revenue from oil sales still plunged almost 62% in the three-month period from a year earlier.
Saudi Arabia helped revive the oil market in the second quarter, but at a stinging cost to its finances. The kingdom’s crude exports dropped to the lowest on a quarterly basis since at least 2016 as it led a campaign alongside Russia to curb oil production following a coronavirus-induced price crash. While the effort yielded a stark turnaround in prices in May and June, Saudi revenue from oil sales still plunged almost 62% in the three-month period from a year earlier.
#Dubai's DP World to partner with Israeli firm in bid for Haifa Port | Reuters
Dubai's DP World to partner with Israeli firm in bid for Haifa Port | Reuters:
Dubai’s DP World [DPWRD.UL] is partnering with an Israeli group to bid for one of Israel’s two main ports and to examine opening a direct shipping line between the two Middle East states, it said on Wednesday.
The announcement came a day after Israel and the United Arab Emirates signed an historic agreement to normalize ties, and marks a big development in trade and economic collaboration.
Dubai state-owned DP World, which operates ports from Hong Kong to Buenos Aires, signed a series of agreements with Israel’s DoverTower including a joint bid in the privatization of Haifa Port on the Mediterranean, one of Israel’s two main sea terminals.
“Israel has two ports, the port of Ashdod and the port of Haifa. They are strong ports in excellent locations. If there is an opportunity, there is nothing to prevent us from having a presence there,” DP World Chairman Sultan Ahmed bin Sulayem told Arabiya TV.
Dubai’s DP World [DPWRD.UL] is partnering with an Israeli group to bid for one of Israel’s two main ports and to examine opening a direct shipping line between the two Middle East states, it said on Wednesday.
The announcement came a day after Israel and the United Arab Emirates signed an historic agreement to normalize ties, and marks a big development in trade and economic collaboration.
Dubai state-owned DP World, which operates ports from Hong Kong to Buenos Aires, signed a series of agreements with Israel’s DoverTower including a joint bid in the privatization of Haifa Port on the Mediterranean, one of Israel’s two main sea terminals.
“Israel has two ports, the port of Ashdod and the port of Haifa. They are strong ports in excellent locations. If there is an opportunity, there is nothing to prevent us from having a presence there,” DP World Chairman Sultan Ahmed bin Sulayem told Arabiya TV.
#Qatar's QDB extends loan guarantee program by three months, lifts ceiling - QNA | Reuters
Qatar's QDB extends loan guarantee program by three months, lifts ceiling - QNA | Reuters:
Qatar Development Bank has extended by three months a national programme to provide guarantees to local banks to grant interest-free loans to companies affected by the coronavirus outbreak, state news agency QNA said on Wednesday.
The cabinet decision also raised the ceiling of the guarantees to 5 billion Qatari riyals, from 3 billion. The National Guarantee Programme was launched in April.
Qatar Development Bank has extended by three months a national programme to provide guarantees to local banks to grant interest-free loans to companies affected by the coronavirus outbreak, state news agency QNA said on Wednesday.
The cabinet decision also raised the ceiling of the guarantees to 5 billion Qatari riyals, from 3 billion. The National Guarantee Programme was launched in April.
Middle East stocks: Most Gulf markets gain; #Saudi bourse slips | Reuters
Middle East stocks: Most Gulf markets gain; Saudi bourse slips | Reuters:
Most Middle Eastern markets ended higher on Wednesday, with Bahrain outperforming the region, while bank stocks weighed on the Saudi index.
Saudi Arabia's benchmark index .TASI slipped 0.1% and snapped a four-session winning streak, weighed by Al Rajhi Bank's 1120.SE 0.4% fall and Riyad Bank's 1010.SE 1.3% tumble.
Saudi Arabia's largest telecoms operator Saudi Telecom Company (STC) 7010.SE gained 1% as STC has asked banks to pitch for roles in a potential public offering of its products and services development arm, Reuters reported, citing sources.
Saudi Chemical Company 2230.SE surged 9.9%, extending gains from the previous session, when the chemicals firm signed a memorandum of understanding with the Russian Direct Investment Fund to provide a coronavirus vaccine in the kingdom.
Dubai's main share index .DFMGI rose 0.4%, supported by a 2.1% gain in blue-chip developer Emaar Properties EMAR.DU and a 3.4% leap in Emaar Malls EMAA.DU.
The Abu Dhabi index .ADI slipped 0.1%, hurt by the country's largest lender First Abu Dhabi Bank FAB.AD 0.4% fall and Abu Dhabi Commercial Bank ADCB.AD a 0.7% decrease.
In Qatar, the index .QSI added 0.5%, with Qatar Islamic Bank QISB.QA rising 1.1% and Qatar National Bank (QNB) QNBK.QA, the Gulf's largest lender, gaining 0.8%.
On Tuesday, Qatar saw its first green bond issue when Qatar National Bank sold $600 million of the notes, making it only the second commercial bank in the Gulf to venture into the green market.
Bahrain, which signed agreements on Tuesday along with the United Arab Emirates to establish formal ties with Israel, the index .BAX advanced 1.2%, outperforming regional peers.
Most Middle Eastern markets ended higher on Wednesday, with Bahrain outperforming the region, while bank stocks weighed on the Saudi index.
Saudi Arabia's benchmark index .TASI slipped 0.1% and snapped a four-session winning streak, weighed by Al Rajhi Bank's 1120.SE 0.4% fall and Riyad Bank's 1010.SE 1.3% tumble.
Saudi Arabia's largest telecoms operator Saudi Telecom Company (STC) 7010.SE gained 1% as STC has asked banks to pitch for roles in a potential public offering of its products and services development arm, Reuters reported, citing sources.
Saudi Chemical Company 2230.SE surged 9.9%, extending gains from the previous session, when the chemicals firm signed a memorandum of understanding with the Russian Direct Investment Fund to provide a coronavirus vaccine in the kingdom.
Dubai's main share index .DFMGI rose 0.4%, supported by a 2.1% gain in blue-chip developer Emaar Properties EMAR.DU and a 3.4% leap in Emaar Malls EMAA.DU.
The Abu Dhabi index .ADI slipped 0.1%, hurt by the country's largest lender First Abu Dhabi Bank FAB.AD 0.4% fall and Abu Dhabi Commercial Bank ADCB.AD a 0.7% decrease.
In Qatar, the index .QSI added 0.5%, with Qatar Islamic Bank QISB.QA rising 1.1% and Qatar National Bank (QNB) QNBK.QA, the Gulf's largest lender, gaining 0.8%.
On Tuesday, Qatar saw its first green bond issue when Qatar National Bank sold $600 million of the notes, making it only the second commercial bank in the Gulf to venture into the green market.
Bahrain, which signed agreements on Tuesday along with the United Arab Emirates to establish formal ties with Israel, the index .BAX advanced 1.2%, outperforming regional peers.
#AbuDhabi Investment Office to open Tel Aviv office | Reuters
Abu Dhabi Investment Office to open Tel Aviv office | Reuters:
The state-run Abu Dhabi Investment Office (ADIO) is to open its first office outside the United Arab Emirates in Tel Aviv, the Abu Dhabi Media Office said on Wednesday, following normalisation of relations between the UAE and Israel.
Israel on Tuesday signed normalisation agreements at the White House in Washington with both the UAE and Bahrain.
“Tel Aviv is the first in a planned network of international offices that will support companies looking to expand their operations in Abu Dhabi, and to connect innovators from around the world to solve global challenges,” the statement on Twitter said.
ADIO and Invest in Israel, part of the economy ministry, agreed two weeks ago on bilateral investment cooperation.
The state-run Abu Dhabi Investment Office (ADIO) is to open its first office outside the United Arab Emirates in Tel Aviv, the Abu Dhabi Media Office said on Wednesday, following normalisation of relations between the UAE and Israel.
Israel on Tuesday signed normalisation agreements at the White House in Washington with both the UAE and Bahrain.
“Tel Aviv is the first in a planned network of international offices that will support companies looking to expand their operations in Abu Dhabi, and to connect innovators from around the world to solve global challenges,” the statement on Twitter said.
ADIO and Invest in Israel, part of the economy ministry, agreed two weeks ago on bilateral investment cooperation.
#SaudiArabia’s crown prince endangers ties with western allies | Financial Times
Saudi Arabia’s crown prince endangers ties with western allies | Financial Times:
There is a new wave of reform in the Middle East. The United Arab Emirates’ momentous decision to forge ties with Israel brings with it many questions about the future for Palestinians, but it confirms a willingness in Abu Dhabi to modernise and inject fresh thinking into the region’s politics.
In its larger neighbour Saudi Arabia, we see a country transforming. Riyadh was once a quiet, private place. No more: before the pandemic lockdown it teemed with activity. Women have been granted new freedoms and are gradually playing a larger role in society. Many Saudi youth are now excited about their country’s future. For those of us who have spent time in Saudi Arabia in recent decades, these are scenes we never witnessed in the past, the results of a reform process.
Despite this progress the 2018 murder of journalist Jamal Khashoggi continues to shock the world. Even friends of the kingdom were astonished by the brutality of this senseless crime. Crown Prince Mohammed bin Salman has spoken of his responsibility, as de facto leader of the country. The west has watched closely to see if this was a terrible aberration or indicates a pattern of behaviour.
Now, once again, Prince Mohammed’s unpredictable behaviour is becoming a cause for concern. Mohammed bin Nayef, the former crown prince, finds himself under house arrest on what appear to be trumped up charges.
Prince Mohammed bin Nayef was instrumental in countering al-Qaeda after the terror attacks of 9/11. His transformation of the kingdom’s intelligence service provided the US and its allies with important capabilities. The former crown prince took on al-Qaeda in the Arabian Peninsula, one of the terror group’s most vicious and murderous regional franchises. He bears the scars of almost being blown up in an assassination attempt by a suicide bomber.
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| Crown Prince Mohammed bin Salman's treatment of Mohammed bin Nayef and his associates will test the resolve of Saudi Arabia’s friends and embolden its many opponents © Bandar Aldani/AFP/Getty |
There is a new wave of reform in the Middle East. The United Arab Emirates’ momentous decision to forge ties with Israel brings with it many questions about the future for Palestinians, but it confirms a willingness in Abu Dhabi to modernise and inject fresh thinking into the region’s politics.
In its larger neighbour Saudi Arabia, we see a country transforming. Riyadh was once a quiet, private place. No more: before the pandemic lockdown it teemed with activity. Women have been granted new freedoms and are gradually playing a larger role in society. Many Saudi youth are now excited about their country’s future. For those of us who have spent time in Saudi Arabia in recent decades, these are scenes we never witnessed in the past, the results of a reform process.
Despite this progress the 2018 murder of journalist Jamal Khashoggi continues to shock the world. Even friends of the kingdom were astonished by the brutality of this senseless crime. Crown Prince Mohammed bin Salman has spoken of his responsibility, as de facto leader of the country. The west has watched closely to see if this was a terrible aberration or indicates a pattern of behaviour.
Now, once again, Prince Mohammed’s unpredictable behaviour is becoming a cause for concern. Mohammed bin Nayef, the former crown prince, finds himself under house arrest on what appear to be trumped up charges.
Prince Mohammed bin Nayef was instrumental in countering al-Qaeda after the terror attacks of 9/11. His transformation of the kingdom’s intelligence service provided the US and its allies with important capabilities. The former crown prince took on al-Qaeda in the Arabian Peninsula, one of the terror group’s most vicious and murderous regional franchises. He bears the scars of almost being blown up in an assassination attempt by a suicide bomber.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #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.
#UAE Signals It’ll Atone For Pumping Too Much Oil in July, August - Bloomberg
UAE Signals It’ll Atone For Pumping Too Much Oil in July, August - Bloomberg:
The United Arab Emirates sent a fresh signal it will make up for pumping too much oil in the past two months, as crude prices come under renewed pressure from sagging energy demand and rising coronavirus infections.
Abu Dhabi National Oil Co., which produces almost all the UAE’s crude, has indicated to refiners and traders that reductions in oil shipments for October will continue through November.
Adnoc will cut 25% of supplies based on volumes customers ask to receive in November, according to a statement seen by Bloomberg. All four of Adnoc’s grades of crude -- Murban, Umm Lulu, Das and Upper Zakum -- will be affected. It follows Adnoc slashing contracted allocations for October by 30%.
The company, owned by the Abu Dhabi government, usually informs long-term buyers of its supply plans around the 27th day of each month. Its decision to issue a statement early could be an attempt to flag its commitment to output reductions agreed by the Organization of Petroleum Exporting Countries and partners including Russia at the height of the pandemic in April.
The United Arab Emirates sent a fresh signal it will make up for pumping too much oil in the past two months, as crude prices come under renewed pressure from sagging energy demand and rising coronavirus infections.
Abu Dhabi National Oil Co., which produces almost all the UAE’s crude, has indicated to refiners and traders that reductions in oil shipments for October will continue through November.
Adnoc will cut 25% of supplies based on volumes customers ask to receive in November, according to a statement seen by Bloomberg. All four of Adnoc’s grades of crude -- Murban, Umm Lulu, Das and Upper Zakum -- will be affected. It follows Adnoc slashing contracted allocations for October by 30%.
The company, owned by the Abu Dhabi government, usually informs long-term buyers of its supply plans around the 27th day of each month. Its decision to issue a statement early could be an attempt to flag its commitment to output reductions agreed by the Organization of Petroleum Exporting Countries and partners including Russia at the height of the pandemic in April.
Oil Gains After Report of Surprise Drop in U.S. Crude Stocks - Bloomberg
Oil Gains After Report of Surprise Drop in U.S. Crude Stocks - Bloomberg:
Oil extended gains to trade near $39 a barrel in New York, buoyed by an industry report of a surprise drop in U.S. crude stockpiles and advances in other financial markets.
The American Petroleum Institute reported crude stockpiles declined by 9.52 million barrels last week, according to people familiar with the numbers. That contrasts with an increase forecast in a Bloomberg-compiled survey before government data due Wednesday. While the global economy is still expected to shrink this year, the slump won’t be as sharp as previously feared, according to the OECD.
Still, oil investors are processing a slew of bearish calls this week. The International Energy Agency warned on Tuesday that the outlook is “even more fragile” due to a resurgence of the coronavirus. That followed weak demand forecasts from BP Plc, Trafigura Group and OPEC. On the other hand, trading giant Vitol Group was more upbeat, saying inventories will likely fall even further this year.
Oil extended gains to trade near $39 a barrel in New York, buoyed by an industry report of a surprise drop in U.S. crude stockpiles and advances in other financial markets.
The American Petroleum Institute reported crude stockpiles declined by 9.52 million barrels last week, according to people familiar with the numbers. That contrasts with an increase forecast in a Bloomberg-compiled survey before government data due Wednesday. While the global economy is still expected to shrink this year, the slump won’t be as sharp as previously feared, according to the OECD.
Still, oil investors are processing a slew of bearish calls this week. The International Energy Agency warned on Tuesday that the outlook is “even more fragile” due to a resurgence of the coronavirus. That followed weak demand forecasts from BP Plc, Trafigura Group and OPEC. On the other hand, trading giant Vitol Group was more upbeat, saying inventories will likely fall even further this year.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #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.
Saudis Seek to Mimic Robinhood Craze to Escape Sliding Oil Price - Bloomberg
Saudis Seek to Mimic Robinhood Craze to Escape Sliding Oil Price - Bloomberg:
The same global phenomenon that’s driving amateur traders into equity markets the world over is giving a boost to Saudi stocks at just the time they need it.
Similar to the Robinhood craze in the U.S., retail investors in the kingdom are piling into small and medium-cap stocks, driving average daily turnover to levels more than double those of a year ago. That’s helped propel a rally in the Tadawul All Share Index, which is poised to be the first benchmark in the Gulf to erase 2020 losses even as the world’s biggest oil exporter grapples with a tumbling oil price.
“We see money chasing good quality companies that were beyond the purview of institutional fund managers,” Joice Mathew, the head of equity research at United Securities in Muscat, said in written comments. “It may not be appropriate to call them Robinhooders of Saudi Arabia, but people are definitely excited about the gains in U.S. markets, and want to mimic it.”
The same global phenomenon that’s driving amateur traders into equity markets the world over is giving a boost to Saudi stocks at just the time they need it.
Similar to the Robinhood craze in the U.S., retail investors in the kingdom are piling into small and medium-cap stocks, driving average daily turnover to levels more than double those of a year ago. That’s helped propel a rally in the Tadawul All Share Index, which is poised to be the first benchmark in the Gulf to erase 2020 losses even as the world’s biggest oil exporter grapples with a tumbling oil price.
“We see money chasing good quality companies that were beyond the purview of institutional fund managers,” Joice Mathew, the head of equity research at United Securities in Muscat, said in written comments. “It may not be appropriate to call them Robinhooders of Saudi Arabia, but people are definitely excited about the gains in U.S. markets, and want to mimic it.”
#UAE-Bahrain Deal With #Israel Hailed as Historic, But Details Are Thin - Bloomberg
UAE-Bahrain Deal With Israel Hailed as Historic, But Details Are Thin - Bloomberg:
The accords the United Arab Emirates and Bahrain signed with Israel Tuesday were hailed by President Donald Trump as a “foundation for a comprehensive peace” across the Middle East and touted as a crowning achievement of his presidency.
Yet despite all the pomp of a grand White House signing ceremony, the signed documents released hours later, while making several sweeping promises -- especially between the UAE and Israel -- left many crucial questions unanswered.
The “Abraham Accords” declaration, which Trump joined in signing, and Bahrain’s deal with Israel are single-page documents. The first offers to pursue a “vision of peace, security and prosperity in the region,” and the second holds out little beyond an agreement to establish diplomatic ties. That’s significant in itself, but the declaration acknowledged that other achievements would be left for later.
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Abdullatif bin Rashid Al Zayani, left, Benjamin Netanyahu, second left, Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, right, hold signed documents during the accords signing ceremony with Donald Trump on Sept. 15. Photographer: Yuri Gripas/Abaca/Bloomberg |
The accords the United Arab Emirates and Bahrain signed with Israel Tuesday were hailed by President Donald Trump as a “foundation for a comprehensive peace” across the Middle East and touted as a crowning achievement of his presidency.
Yet despite all the pomp of a grand White House signing ceremony, the signed documents released hours later, while making several sweeping promises -- especially between the UAE and Israel -- left many crucial questions unanswered.
The “Abraham Accords” declaration, which Trump joined in signing, and Bahrain’s deal with Israel are single-page documents. The first offers to pursue a “vision of peace, security and prosperity in the region,” and the second holds out little beyond an agreement to establish diplomatic ties. That’s significant in itself, but the declaration acknowledged that other achievements would be left for later.
#Israel Shipyards, #UAE's DP World to partner in shipping, port activities | Reuters
Israel Shipyards, UAE's DP World to partner in shipping, port activities | Reuters:
Israel’s Dovertower has a signed a series of agreements with DP World [DPWRD.UL] of the United Arab Emirates to cooperate in shipping and port activities, the companies said on Wednesday.
Dovertower is owned by Israeli businessman Shlomi Fogel, who is one of the owners of Israel Shipyards and the Eilat port.
Israel Shipyards and DP World will examine a possible joint bid for Haifa port, which is being privatised.
Dovertower will also partner with DP World to set up a direct shipping line between Dubai and Eilat.
Israel Shipyards and Drydocks World Dubai will examine partnering in producing and marketing products in Dubai.
Israel’s Dovertower has a signed a series of agreements with DP World [DPWRD.UL] of the United Arab Emirates to cooperate in shipping and port activities, the companies said on Wednesday.
Dovertower is owned by Israeli businessman Shlomi Fogel, who is one of the owners of Israel Shipyards and the Eilat port.
Israel Shipyards and DP World will examine a possible joint bid for Haifa port, which is being privatised.
Dovertower will also partner with DP World to set up a direct shipping line between Dubai and Eilat.
Israel Shipyards and Drydocks World Dubai will examine partnering in producing and marketing products in Dubai.
Oil jumps as hurricane hits U.S. output while crude stocks decline | Reuters
Oil jumps as hurricane hits U.S. output while crude stocks decline | Reuters:
Oil prices rose for a second day on Wednesday, gaining more than 2%, as a hurricane closed U.S. offshore oil and gas production and an industry report showed U.S. crude inventories decreased.
Brent crude LCOc1 rose 85 cents, or 2.1%, to $41.38 a barrel by 0645 GMT, while U.S. crude CLc1 rose 92 cents, or 2.4%, to $39.20. Both contracts rose by more than 2% on Tuesday.
More than 25% of U.S. offshore oil and gas output was shut and export ports were closed on Tuesday as Hurricane Sally sat just off the U.S. Gulf Coast.
“Our current estimate for the total outage associated with the Sally weather system is between 3 million and 6 million barrels of oil over approximately 11 days,” Rystad Energy said in a note.
Oil prices rose for a second day on Wednesday, gaining more than 2%, as a hurricane closed U.S. offshore oil and gas production and an industry report showed U.S. crude inventories decreased.
Brent crude LCOc1 rose 85 cents, or 2.1%, to $41.38 a barrel by 0645 GMT, while U.S. crude CLc1 rose 92 cents, or 2.4%, to $39.20. Both contracts rose by more than 2% on Tuesday.
More than 25% of U.S. offshore oil and gas output was shut and export ports were closed on Tuesday as Hurricane Sally sat just off the U.S. Gulf Coast.
“Our current estimate for the total outage associated with the Sally weather system is between 3 million and 6 million barrels of oil over approximately 11 days,” Rystad Energy said in a note.