Oil edges up a day after selloff; rangebound ahead of U.S. crude stocks data | Reuters:
Oil prices settled slightly higher on Tuesday ahead of weekly U.S. inventory figures, rebounding modestly from the previous day’s selloff that was driven by a surge in overseas coronavirus infections.
Analysts said renewed lockdown restrictions in Europe will have only a limited impact on fuel demand, which could prevent a pronounced selloff in oil markets. With major oil-producing nations still restricting supply, the market has been locked in a range for most of the summer.
Brent crude LCOc1 rose 28 cents to settle at $41.72 a barrel. U.S. West Texas Intermediate crude (WTI) CLc1 for October, which expires Tuesday, settled up 29 cents to $39.60.
“The energy complex appears immune to negative news regarding the virus while case counts don’t increase enough to force renewed widespread lockdowns,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Tuesday, 22 September 2020
Major Gulf indexes end mixed; Egypt snaps losing streak | Reuters
Major Gulf indexes end mixed; Egypt snaps losing streak | Reuters:
Major Gulf markets ended mixed on Tuesday, with financial shares weighing on the Saudi index, while property shares boosted Qatar’s benchmark.
Saudi Arabia's benchmark index .TASI fell 0.6%, with Al Rajhi Bank 1120.SE losing 1% and oil giant Saudi Aramco 2222.SE down 0.8%.
Dubai's main share index .DFMGI slipped 0.3%, hurt by a 2.3% fall in Emirates NBD Bank ENBD.DU and a 0.4% drop in Mashreq Bank MASB.DU.
The Abu Dhabi index .ADI edged up 0.1%, supported by a 1.1% rise in Abu Dhabi Commercial Bank ADCB.AD and a 0.2% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the United Arab Emirates’ largest lender, has hired banks to arrange an investor call ahead of an issuance of U.S. dollar-denominated bonds, a document showed.
The planned Additional Tier 1 perpetual bonds are not callable for six years, the document showed.
In Qatar, the index .QSI closed up 0.8%, led by a 10% surge in United Development Company UDCD.QA and a 3.7% rise in Barwa Real Estate Company BRES.QA.
Gulf Warehousing Co GWCS.QA, which is not part the index, jumped 6.4%, after the firm was approved as first regional supporter and official logistics provider for FIFA World Cup Qatar 2022.
Major Gulf markets ended mixed on Tuesday, with financial shares weighing on the Saudi index, while property shares boosted Qatar’s benchmark.
Saudi Arabia's benchmark index .TASI fell 0.6%, with Al Rajhi Bank 1120.SE losing 1% and oil giant Saudi Aramco 2222.SE down 0.8%.
Dubai's main share index .DFMGI slipped 0.3%, hurt by a 2.3% fall in Emirates NBD Bank ENBD.DU and a 0.4% drop in Mashreq Bank MASB.DU.
The Abu Dhabi index .ADI edged up 0.1%, supported by a 1.1% rise in Abu Dhabi Commercial Bank ADCB.AD and a 0.2% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the United Arab Emirates’ largest lender, has hired banks to arrange an investor call ahead of an issuance of U.S. dollar-denominated bonds, a document showed.
The planned Additional Tier 1 perpetual bonds are not callable for six years, the document showed.
In Qatar, the index .QSI closed up 0.8%, led by a 10% surge in United Development Company UDCD.QA and a 3.7% rise in Barwa Real Estate Company BRES.QA.
Gulf Warehousing Co GWCS.QA, which is not part the index, jumped 6.4%, after the firm was approved as first regional supporter and official logistics provider for FIFA World Cup Qatar 2022.
#UAE's Mubadala, Baring partner on $3.5bn financing platform - Arabianbusiness
UAE's Mubadala, Baring partner on $3.5bn financing platform - Arabianbusiness:
Barings, one of the world’s leading financial services firms, on Tuesday announced that it has formed the Barings Mubadala Enterprise (BME), a platform seeking to provide financing solutions to European middle-market businesses.
The partnership is anchored by UAE-based Mubadala Investment Company and will invest alongside MassMutual and Barings’ capital.
BME and its capital partners aim to provide $3.5 billion in financing over the next 18 months to help meet growing corporate demand for flexible capital solutions in Europe.
Barings’ chairman and CEO, Tom Finke, said: “This partnership will leverage our significant capabilities in origination and alternative credit to help strategic capital partners such as Mubadala invest with scale. We are looking to take advantage of middle-market direct lending opportunities, focusing on senior secured loans as borrowers shift focus from traditional bank financing to institutional capital providers to fund acquisitions and growth projects.”
Barings, one of the world’s leading financial services firms, on Tuesday announced that it has formed the Barings Mubadala Enterprise (BME), a platform seeking to provide financing solutions to European middle-market businesses.
The partnership is anchored by UAE-based Mubadala Investment Company and will invest alongside MassMutual and Barings’ capital.
BME and its capital partners aim to provide $3.5 billion in financing over the next 18 months to help meet growing corporate demand for flexible capital solutions in Europe.
Barings’ chairman and CEO, Tom Finke, said: “This partnership will leverage our significant capabilities in origination and alternative credit to help strategic capital partners such as Mubadala invest with scale. We are looking to take advantage of middle-market direct lending opportunities, focusing on senior secured loans as borrowers shift focus from traditional bank financing to institutional capital providers to fund acquisitions and growth projects.”
RPT-COLUMN-Hedge fund selling slows ahead of #Saudi warning: Kemp | Reuters
RPT-COLUMN-Hedge fund selling slows ahead of Saudi warning: Kemp | Reuters:
Hedge funds sold petroleum for the fourth week running, though the rate slowed from the two-year peak set a week earlier, as they lowered their expectations on oil consumption, prompting Saudi Arabia to issue an unusually blunt warning to short sellers.
Hedge funds and other money managers sold the equivalent of 18 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 15, down from sales of 171 million the week before.
The combined position across all six contracts has fallen to 426 million barrels (which puts it in the 24th percentile for all weeks since 2013) from 664 million barrels on Aug. 18 (the 63rd percentile).
Petroleum positions have turned firmly bearish, from moderately bullish in the middle of last month, records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission show.
Hedge funds sold petroleum for the fourth week running, though the rate slowed from the two-year peak set a week earlier, as they lowered their expectations on oil consumption, prompting Saudi Arabia to issue an unusually blunt warning to short sellers.
Hedge funds and other money managers sold the equivalent of 18 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 15, down from sales of 171 million the week before.
The combined position across all six contracts has fallen to 426 million barrels (which puts it in the 24th percentile for all weeks since 2013) from 664 million barrels on Aug. 18 (the 63rd percentile).
Petroleum positions have turned firmly bearish, from moderately bullish in the middle of last month, records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission show.
Creditors take action against #UAE's Al Jaber in decade-long saga | Reuters
Creditors take action against UAE's Al Jaber in decade-long saga | Reuters:
Creditors have started to enforce claims against Abu Dhabi-based Al Jaber Group, in a dispute triggered by a construction downturn in the United Arab Emirates more than a decade ago.
Al Jaber, a contractor with interests across a range of sectors, has struggled since building up debt in the wake of a UAE real estate crisis and began talks with creditors in 2011.
Abu Dhabi Commercial Bank ADCB.AD, which is working as restructuring and security agent, said in a document dated Sept. 21 which was seen by Reuters, that it had instructions from the majority of creditors to proceed with claims against Al Jaber.
A representative for Al Jaber did not immediately respond to a request or comment. ADCB declined to comment.
Creditors have started to enforce claims against Abu Dhabi-based Al Jaber Group, in a dispute triggered by a construction downturn in the United Arab Emirates more than a decade ago.
Al Jaber, a contractor with interests across a range of sectors, has struggled since building up debt in the wake of a UAE real estate crisis and began talks with creditors in 2011.
Abu Dhabi Commercial Bank ADCB.AD, which is working as restructuring and security agent, said in a document dated Sept. 21 which was seen by Reuters, that it had instructions from the majority of creditors to proceed with claims against Al Jaber.
A representative for Al Jaber did not immediately respond to a request or comment. ADCB declined to comment.
#Oman to target $3-$4 billion with upcoming bond sale - sources | Reuters
Oman to target $3-$4 billion with upcoming bond sale - sources | Reuters:
Oman plans to issue U.S. dollar-denominated bonds soon, targeting $3 billion to $4 billion with the deal, two sources said, as the Gulf state seeks to bolster finances badly hit by a slump in oil prices.
The deal would cover a $2 billion bridge loan Oman secured last month and give it additional funding in what would be Oman’s first foray in the international bond market this year.
A relatively small crude producer burdened by high levels of debt, Oman - rated “junk” by all major rating agencies - said this month it was planning to tap local and international debt markets, without disclosing how much it plans to raise from overseas investors.
The bonds will be arranged by some of the banks that provided the $2 billion bridge loan, said the two sources familiar with the matter, speaking on condition of anonymity.
Oman plans to issue U.S. dollar-denominated bonds soon, targeting $3 billion to $4 billion with the deal, two sources said, as the Gulf state seeks to bolster finances badly hit by a slump in oil prices.
The deal would cover a $2 billion bridge loan Oman secured last month and give it additional funding in what would be Oman’s first foray in the international bond market this year.
A relatively small crude producer burdened by high levels of debt, Oman - rated “junk” by all major rating agencies - said this month it was planning to tap local and international debt markets, without disclosing how much it plans to raise from overseas investors.
The bonds will be arranged by some of the banks that provided the $2 billion bridge loan, said the two sources familiar with the matter, speaking on condition of anonymity.
Brent Oil Pares Gain With Virus Rebound Spurring Demand Jitters - Bloomberg
Brent Oil Pares Gain With Virus Rebound Spurring Demand Jitters - Bloomberg:
Oil pared an earlier gain as a resurgent coronavirus looms over the demand outlook.
Futures in London were still 0.8% higher, having earlier rallied with European markets. Brent subsequently pared its gains as the U.K. said its latest round of virus restrictions could last for six months. That follows warnings the U.S. could experience another outbreak cycle.
Crude’s slump has seen volatility jump higher with markets beginning to buckle under a renewed wave of virus cases. As governments mull tighter restrictions to prevent its spread, there’s a fresh risk to oil demand, and industry giants including China’s biggest oil company have said refined products demand could peak as soon as 2025.
“Fundamentals once again look challenged,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S.
Oil pared an earlier gain as a resurgent coronavirus looms over the demand outlook.
Futures in London were still 0.8% higher, having earlier rallied with European markets. Brent subsequently pared its gains as the U.K. said its latest round of virus restrictions could last for six months. That follows warnings the U.S. could experience another outbreak cycle.
Crude’s slump has seen volatility jump higher with markets beginning to buckle under a renewed wave of virus cases. As governments mull tighter restrictions to prevent its spread, there’s a fresh risk to oil demand, and industry giants including China’s biggest oil company have said refined products demand could peak as soon as 2025.
“Fundamentals once again look challenged,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S.
Opec keeps strategy under wraps in oil stumble | Financial Times
Opec keeps strategy under wraps in oil stumble | Financial Times:
Saudi Arabia’s energy minister is keeping his options open while the recovery in oil prices splutters, setting up a potentially volatile period ahead.
Crude prices tumbled at the start of September after traders grew nervous that further potential lockdowns to slow the spread of coronavirus could fracture a fragile recovery in consumption.
But Prince Abdulaziz bin Salman is reluctant to commit to any new measures to bolster the oil market, telling reporters last week that “anyone who thinks they will get a word from me on what we will do next, is absolutely living in La La Land”.
His only two predictions were that the market would be “jumpy” in the months ahead, and that he would leave speculators “ouching like hell”.
Saudi Arabia’s energy minister is keeping his options open while the recovery in oil prices splutters, setting up a potentially volatile period ahead.
Crude prices tumbled at the start of September after traders grew nervous that further potential lockdowns to slow the spread of coronavirus could fracture a fragile recovery in consumption.
But Prince Abdulaziz bin Salman is reluctant to commit to any new measures to bolster the oil market, telling reporters last week that “anyone who thinks they will get a word from me on what we will do next, is absolutely living in La La Land”.
His only two predictions were that the market would be “jumpy” in the months ahead, and that he would leave speculators “ouching like hell”.
#SaudiArabia Floats Plan to Delay G-20 Summit Until December - Bloomberg
Saudi Arabia Floats Plan to Delay G-20 Summit Until December - Bloomberg:
Saudi Arabia has informally asked Italy to delay the Group of 20 leaders’ summit until December, according to two senior officials with knowledge of the discussions with Riyadh.
The meeting is currently scheduled to take place in the Saudi capital on Nov. 21 and 22, before the G-20 mantle passes to Italy on Dec. 1. The request would mean delaying the start of Italy’s presidency, the officials said, asking not to be identified discussing private conversations.
One of the officials said that the Italian government is flexible and could agree to have the summit in December but not further into its presidency. Discussions between the Italian and Saudi governments are ongoing and a final decision has yet to be taken, said one of the officials. A diplomat from one other G-20 country also said that they had heard about the request.
A spokesman for the Saudis’ G-20 secretariat said by email that Italy will be taking over the presidency as planned at the start of December and the summit will take place in November in line with the original schedule.
Saudi Arabia has informally asked Italy to delay the Group of 20 leaders’ summit until December, according to two senior officials with knowledge of the discussions with Riyadh.
The meeting is currently scheduled to take place in the Saudi capital on Nov. 21 and 22, before the G-20 mantle passes to Italy on Dec. 1. The request would mean delaying the start of Italy’s presidency, the officials said, asking not to be identified discussing private conversations.
One of the officials said that the Italian government is flexible and could agree to have the summit in December but not further into its presidency. Discussions between the Italian and Saudi governments are ongoing and a final decision has yet to be taken, said one of the officials. A diplomat from one other G-20 country also said that they had heard about the request.
A spokesman for the Saudis’ G-20 secretariat said by email that Italy will be taking over the presidency as planned at the start of December and the summit will take place in November in line with the original schedule.
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 Firm Hires Restructuring Expert for $2 Billion Debt Revamp - Bloomberg
UAE Firm Hires Restructuring Expert for $2 Billion Debt Revamp - Bloomberg:
Abu Dhabi-based KBBO Group, once one of NMC Health Plc’s biggest shareholders, has hired a turnaround specialist to restructure its $2 billion debt pile, people familiar with the matter said.
The privately-held investment firm with assets in health care and food named Bruno Navarro as its chief restructuring officer, the people said, asking not to be identified because the matter is private.
Navarro has been involved with some of the biggest and most complex debt situations in the Middle East as head of restructuring at Abu Dhabi Commercial Bank PJSC and Abu Dhabi Islamic Bank PJSC. He has also worked at the International Finance Corporation, a World Bank affiliate, on restructurings in Latin America and Southeast Asia.
KBBO has about $2 billion in debt that needs to be renegotiated, leaving banks in the United Arab Emirates potentially exposed to another financial hit even as they grapple with a spike in bad loans amid the coronavirus pandemic.
Abu Dhabi-based KBBO Group, once one of NMC Health Plc’s biggest shareholders, has hired a turnaround specialist to restructure its $2 billion debt pile, people familiar with the matter said.
The privately-held investment firm with assets in health care and food named Bruno Navarro as its chief restructuring officer, the people said, asking not to be identified because the matter is private.
Navarro has been involved with some of the biggest and most complex debt situations in the Middle East as head of restructuring at Abu Dhabi Commercial Bank PJSC and Abu Dhabi Islamic Bank PJSC. He has also worked at the International Finance Corporation, a World Bank affiliate, on restructurings in Latin America and Southeast Asia.
KBBO has about $2 billion in debt that needs to be renegotiated, leaving banks in the United Arab Emirates potentially exposed to another financial hit even as they grapple with a spike in bad loans amid the coronavirus pandemic.
Oil steady as U.S. storm eases but demand recovery fears persist | Reuters
Oil steady as U.S. storm eases but demand recovery fears persist | Reuters:
Oil futures were little changed on Tuesday after sharp overnight losses, as the latest tropical storm in the Gulf of Mexico lost strength, but worries about fuel demand persisted with flare-ups around the globe in coronavirus cases.
Brent crude futures edged 3 cents, or 0.1%, lower to $41.41 a barrel at 0637 GMT, reversing earlier small gains.
U.S. West Texas Intermediate (WTI) crude futures CLc1 for October, due to expire on Tuesday, slipped 4 cents, or 0.1%, to $39.27 a barrel. The more active November contract shed 3 cents, or 0.1%, to $39.51.
Crude prices, which fell about 4% on Monday, won some respite as Texas refineries stayed after a tropical storm was expected to keep losing strength, allaying worries about U.S. refinery demand for feedstock.
Oil futures were little changed on Tuesday after sharp overnight losses, as the latest tropical storm in the Gulf of Mexico lost strength, but worries about fuel demand persisted with flare-ups around the globe in coronavirus cases.
Brent crude futures edged 3 cents, or 0.1%, lower to $41.41 a barrel at 0637 GMT, reversing earlier small gains.
U.S. West Texas Intermediate (WTI) crude futures CLc1 for October, due to expire on Tuesday, slipped 4 cents, or 0.1%, to $39.27 a barrel. The more active November contract shed 3 cents, or 0.1%, to $39.51.
Crude prices, which fell about 4% on Monday, won some respite as Texas refineries stayed after a tropical storm was expected to keep losing strength, allaying worries about U.S. refinery demand for feedstock.
MIDEAST STOCKS-Major Gulf bourses off to mixed start | Nasdaq
MIDEAST STOCKS-Major Gulf bourses off to mixed start | Nasdaq:
Major Gulf stock markets were mixed in early trade on Tuesday, with financial shares weighing on the Saudi index.
Saudi Arabia's benchmark index .TASI dropped 0.6%, with Al Rajhi Bank 1120.SE shedding 1.3%, while oil giant Saudi Aramco 2222.SE was down 0.5%.
Separately, the kingdom's supermarket operator BinDawood Holding may price its initial public offering (IPO) at the top of its range after a bookrunner note said investors bidding below 96 Saudi riyal ($25.60) may not get an allocation.
Dubai's main share index .DFMGI lost 0.4%, driven down by a 0.9% fall in Emirates NBD Bank ENBD.DU and a 0.7% decrease in sharia-compliant lender Dubai Islamic Bank DISB.DU.
The Abu Dhabi index .ADI edged up 0.1%, helped by a 0.4% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the United Arab Emirates' largest lender, has hired banks to arrange an investor call ahead of an issuance of U.S. dollar-denominated bonds, a document showed.
In Qatar, the index .QSI added 0.6%, led by a 9.3% surge in United Development Company UDCD.QA.
Major Gulf stock markets were mixed in early trade on Tuesday, with financial shares weighing on the Saudi index.
Saudi Arabia's benchmark index .TASI dropped 0.6%, with Al Rajhi Bank 1120.SE shedding 1.3%, while oil giant Saudi Aramco 2222.SE was down 0.5%.
Separately, the kingdom's supermarket operator BinDawood Holding may price its initial public offering (IPO) at the top of its range after a bookrunner note said investors bidding below 96 Saudi riyal ($25.60) may not get an allocation.
Dubai's main share index .DFMGI lost 0.4%, driven down by a 0.9% fall in Emirates NBD Bank ENBD.DU and a 0.7% decrease in sharia-compliant lender Dubai Islamic Bank DISB.DU.
The Abu Dhabi index .ADI edged up 0.1%, helped by a 0.4% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the United Arab Emirates' largest lender, has hired banks to arrange an investor call ahead of an issuance of U.S. dollar-denominated bonds, a document showed.
In Qatar, the index .QSI added 0.6%, led by a 9.3% surge in United Development Company UDCD.QA.
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