Oil prices fall as inventory report reflects demand weakness | Reuters

Oil prices fall as inventory report reflects demand weakness | Reuters: 

Oil prices settled lower on Wednesday after U.S. inventory figures showed demand weakening for refined products as global COVID-19 cases spiked. 

Brent crude futures LCOc1 settled at $41.73 a barrel, down $1.43, or 3.3%, as of 12:48 p.m. ET. U.S. West Texas Intermediate (WTI) crude CLc1 futures dropped $1.67, or 4%, to $40.03. Both benchmarks rose in the previous session. 

Crude inventories fell by 1 million barrels in the week to Oct. 16 to 488.1 million barrels, while gasoline stocks rose in another weak showing for fuel demand. 

Overall product supplied, a proxy for demand, remained down 13% on the year and over the past four weeks when compared with the year-ago period.

#Dubai wealth fund sells $600mln in long 5-year bonds - document | ZAWYA MENA Edition

Dubai wealth fund sells $600mln in long 5-year bonds - document | ZAWYA MENA Edition

Investment Corporation of Dubai (ICD), the Dubai government's main investment arm, sold $600 million in long five-year bonds at 275 basis points over mid-swaps, a document showed on Wednesday.

ICD began marketing the bonds at around 300 basis points over mid-swaps earlier on Wednesday and received more than $1.1 billion in orders, according to the document issued by one of the banks leading the deal.

Issuers from the Gulf are lining up to take advantage of low interest rates to plug finances hit by cheap oil and the coronavirus pandemic, with Oman also selling bonds on Wednesday in its first issuance since July last year.

The government of Dubai sold $2 billion in bonds last month in its first public debt issuance since 2014 amid a sharp economic downturn that has revived concern over its finances and memories of its 2009 debt crisis.

What’s Next for Libya’s Oil Surge as Warring Rivals Talk Peace - Bloomberg

What’s Next for Libya’s Oil Surge as Warring Rivals Talk Peace - Bloomberg

After years of setbacks and false starts, Libya is back in the oil game. A stalemate between the armed forces battling to control the OPEC nation has led to an uneasy truce, and most fields and ports shuttered amid the fighting are operating once again.

A blockade of many of the country’s energy facilities ended last month, and the state energy firm National Oil Corp. is ramping up production faster than many analysts expected. Output has surpassed half a million barrels a day for the first time since January. Libya’s biggest field, Sharara, has resumed pumping, and seven of its nine export terminals are now open for tankers to load oil. If the truce sticks, production could reach 1 million barrels a day by March, according to JPMorgan Chase & Co.

Whether Libya can sustain and build on the recovery is an open question. The country is still a long way from pumping the 1.2 million barrels a day it supplied prior to the January blockade -- not to mention the 1.8 million that flowed before the 2011 uprising that toppled strongman Moammar Al Qaddafi and triggered almost a decade of strife and lost production.

Repeated efforts to broker a lasting peace between Fayez al-Sarraj’s United Nations-recognized government based in Tripoli and eastern commander Khalifa Haftar have faltered. But on Wednesday, the rivals extended their truce, providing a rare sense of stability for one of the world’s most war-ravaged oil producers.

#AbuDhabi fund drops lawsuit against Goldman over 1MDB | Financial Times

Abu Dhabi fund drops lawsuit against Goldman over 1MDB | Financial Times: 

One of Abu Dhabi’s sovereign wealth funds has dropped a lawsuit alleging Goldman Sachs bribed its officials as part of a “massive global conspiracy” that led to billions of dollars being embezzled from Malaysia’s 1MDB. 

The news comes the day before the expected announcement of a long-awaited global regulatory settlement that includes more than $2bn of new fines for Goldman and a guilty plea from one of its Asian subsidiaries to close a chapter in a scandal that has cast a shadow over the bank for nearly five years. 

“Following collaborative discussions, the International Petroleum Investment Company [Ipic] is dismissing its lawsuit against Goldman Sachs, related to issues regarding 1MDB,” Ipic said. 

Goldman could not immediately comment but a person familiar with the matter confirmed papers requesting to dismiss the lawsuit had been filed in New York and that no financial settlement had been made.

#Dubai Islamic Bank's third-quarter profit slips on higher impairment charges - The National

Dubai Islamic Bank's third-quarter profit slips on higher impairment charges - The National: 

Dubai Islamic Bank, the largest Sharia-compliant lender in the UAE by assets, reported a 19 per cent drop in its third-quarter net profit as impairment charges and operating expenses rose amid the coronavirus pandemic. 

Net profit attributable to owners of the bank for the three month period ending September 30 declined to about Dh1 billion ($274 million), the lender said in a statement to the Dubai Financial Market, where its shares trade. Impairment charges for the period rose 60 per cent to Dh530.4m from the year-earlier period while operating expenses increased 16 per cent to Dh663.5m. 

“The global environment remains uncertain with geographies around the world yet to fully recover," Mohammed Al Shaibani, director-general of the Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said. 

"At home, the UAE remains committed towards economic development with a strong focus on precautionary safety measures as we witness the gradual recovery of trade and business services,” he added.

Mubadala’s Ibrahim Ajami on a long-term approach to tech investments: Business Extra - The National

Mubadala’s Ibrahim Ajami on a long-term approach to tech investments: Business Extra - The National: 

Ibrahim Ajami joins this week to talk about Mubadala's evolving technology investment strategy. 

The head of ventures at Abu Dhabi’s strategic investment fund is looking at 25-year time horizons, longer than the typical private equity investor, and is working to build bridges between Abu Dhabi and tech hubs around the world. 

Last month, Mubadala announced a deal with US private equity group Silver Lake, one of the world’s biggest tech investors this century, backed by a $2 billion investment in a new fund. 

Silver Lake has invested in companies like Airbnb, SenseTime, Alibaba and Twitter.

#Kuwait has a different sort of debt issue to tackle | Analysis – Gulf News

Kuwait has a different sort of debt issue to tackle | Analysis – Gulf News: 

Kuwait has a sterling reputation in the field of sovereign investments and as a pioneer in creating national wealth funds. In fact, the first sovereign fund in the world was set up by Kuwait in the 1960s. 

Despite such extensive experience, the political tensions, especially between the government and legislators in the National Assembly, reflect mindsets that negatively affect economic growth. 

For example, last August, Minister of Finance Ali Al Sheatan said, “The government may not be able to pay the salaries of employees in November”, and which led the credit rating agency Moody’s to downgrade Kuwait’s rating in September from Aa2 to A1. 

Therefore, officials have to be extremely cautious in what they are trying to say - as the Gulf proverb says, ‘Eating dates is not like counting seeds’. The minister’s statement set off a panic in society and on social media, although it did not reflect the reality of the country’s relatively strong financial conditions. Why?

Gulf Bond Flurry Sets $102 Billion Record Before U.S. Election - Bloomberg

Gulf Bond Flurry Sets $102 Billion Record Before U.S. Election - Bloomberg: 

A burst of debt deals in the Gulf has pushed issuance to a record in the region as borrowers rush to shore up their oil-dependent budgets before the U.S. presidential vote. 

Gulf Cooperation Council sovereigns and corporates have sold $102 billion in debt so far this year, already exceeding the highest full-year figure. Junk-rated Oman was in the market on Wednesday with a sale of seven and 12-year dollar notes, alongside offerings by Qatar Islamic Bank SAQ and the Investment Corporation of Dubai. 

“The last window of opportunity” before the presidential contest between Donald Trump and Joe Biden is galvanizing issuers, said Sergey Dergachev, a money manager at Union Investment Privatfonds GmbH in Frankfurt. A “worst case” could see a contested result or more social unrest, which would be “very bad for risk sentiment,” he said. 

For Saudi Arabia and the UAE, a Biden White House could see a cooling in relations, with greater scrutiny of human rights and a restoration of the diplomatic norms bypassed by Trump.

Outlook: More GCC banks likely to consolidate amid tight economy, flat oil prices | ZAWYA MENA Edition

Outlook: More GCC banks likely to consolidate amid tight economy, flat oil prices | ZAWYA MENA Edition: 

More banks in the Gulf Cooperation Council (GCC) region are likely to consolidate amid challenging economic conditions and low oil prices, a top UAE bank official hinted on Wednesday. 

The mergers and acquisition space in the region have seen increased levels of activity in recent years, with lenders scaling down to remain competitive in a tight business environment. Prior to the coronavirus pandemic, growth in economies like the UAE – which has been suffering a real estate downturn - was already quite sluggish and certain markets were overbanked. 

“The ongoing consolidation of the banking sector in the GCC region is expected to continue with constrained growth opportunities and lower oil prices,” said Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank (DIB). 

The UAE-based lender acquired its competitor Noor Bank in a transaction structured through a share swap in January this year, shortly before the global coronavirus lockdown. The acquisition involves integrating Noor’s operations into DIB’s.

#Dubai wealth fund starts marketing dollar bonds - document | Reuters

Dubai wealth fund starts marketing dollar bonds - document | Reuters: 

Investment Corporation of Dubai (ICD), the Dubai government’s main investment arm, started marketing long five-year bonds at around 300 basis points over mid-swaps, a document showed on Wednesday. 

The sale of the benchmark bonds will close later on Wednesday, according to the document issued by one of the banks leading the deal. 

Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan and Standard Chartered have been hired to arrange the deal.

#Oman starts marketing two-part dollar bond issuance | Reuters

Oman starts marketing two-part dollar bond issuance | Reuters: 

Oman has started marketing a two-part U.S. dollar bond issuance comprising seven- and 12-year bonds, according to a document seen by Reuters, in the Gulf state’s first international bond issue this year. 

The document, issued by one of the banks leading the deal, showed Oman is marketing the seven-year paper in the 7% area and the 12-year paper in the 7.625% area. 

Oman had also announced plans on Monday to issue a three-year tranche. 

Rated below investment grade by all major credit agencies, Oman is expected to raise upwards of $3 billion with the deal, sources have previously said, as the oil producing country seeks to boost state finances badly hit by the coronavirus crisis.

#SaudiArabia News: BinDawood Holding Surges in IPO on Stock Exchange - Bloomberg

Saudi Arabia News: BinDawood Holding Surges in IPO on Stock Exchange - Bloomberg: 

The BinDawood family’s fortune soared after shares in their eponymous Saudi Arabian grocery business rose by 10% on their first day of trading. 

Members of the family own a 67% stake worth about $2.2 billion in BinDawood Holding Co., according to Bloomberg calculations based on the IPO prospectus. They also raised about $500 million from the initial public offering. 

BinDawood is one of the biggest grocery chains in Saudi Arabia, operating upmarket stores under the Danube brand and mass-market stores under the BinDawood brand. It was founded in 1984 by Khaled Dawood Ibrahim BinDawood and has since grown to operate more than 70 stores. 

The stock surged on Wednesday in Riyadh, rising to 105.60 riyals from the 96 riyals ($25.60) offer price. The shares had already been priced at the top end of the marketed range after the deal was about 50 times oversubscribed and the IPO received $29 billion in bids.

Revealed: how the Middle East may lose 140 million air passengers this year - Arabianbusiness

Revealed: how the Middle East may lose 140 million air passengers this year - Arabianbusiness: 

The Middle East's aviation industry is set to lose more than 140 million passengers this year due to the ongoing impact of the global coronavirus pandemic. 

The International Air Transport Association (IATA) on Wednesday downgraded its traffic forecast for the Middle East for 2020 to reflect a weaker-than-expected recovery. 

It said full-year 2020 passenger numbers in the Middle East are forecast to reach only 30 percent of 2019 levels, down significantly from the 45 percent that was projected in July. 

In absolute numbers, the Middle East is expected to see 60 million travellers this year compared to the 203 million in 2019.

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.

Oil prices slip as U.S. inventory build stokes fears of supply glut | Reuters

Oil prices slip as U.S. inventory build stokes fears of supply glut | Reuters: 

Oil prices eased on Wednesday after a surprise build-up in U.S. crude stockpiles stoked concerns about a global supply glut and a spike in global COVID-19 cases fuelled fears of a stalled oil demand recovery. 

Brent crude futures for December delivery were at $42.66 a barrel, down 50 cents, or 1.16%, as of 1027 GMT, while December U.S. West Texas Intermediate (WTI) crude futures slipped 56 cents, or 1.34%, to $41.14. Both benchmarks rose in the previous session. 

“Lower European equity markets and a surprise crude build are in my view the factors weighing on oil prices today. The market is probably also wanting to see if the EIA confirms the API report later today and any news on a fiscal package in the U.S.,” Giovanni Staunovo, analyst at UBS Bank, said. 

Crude inventories rose by 584,000 barrels in the week to Oct. 16 to 490.6 million barrels, data from industry group the American Petroleum Institute (API) showed, compared with analysts’ expectations in a Reuters poll for a draw of 1 million barrels.