Column: U.S. oil inventories offer hope, and a warning, to OPEC+ - Kemp | Reuters
U.S. petroleum inventories are gradually normalising as output curbs by OPEC+ and processing restraint by refiners push the oil market back towards balance.
But with stocks of crude and distillates still well above the five-year average, OPEC+ and refiners will need to maintain their disciplined approach until at least March to avoid renewed downward pressure on prices.
U.S. stocks of crude and petroleum products outside the strategic petroleum reserve declined by 11 million barrels last week and have fallen by a total of 96 million barrels over the last 16 weeks.
Commercial petroleum inventories are 7% above the previous five-year average, down from a surplus of 14% in the middle of July (“Weekly petroleum status report”, Energy Information Administration, Nov. 12).
Commercial inventories have fallen in 15 out of the last 16 weeks, a sign the oil market is under-supplied as a result of production cuts by OPEC+.
Friday, 13 November 2020
Oil falls on rising Libya output, coronavirus surge | Reuters
Oil falls on rising Libya output, coronavirus surge | Reuters
Oil prices fell about 2% on Friday, pressured by swelling output from Libya and fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand.
Hopes for a vaccine kept crude futures on track for a second straight weekly gain.
Brent crude LCOc1 fell 75 cents, or 1.7%, to settle at $42.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 99 cents, or 2.4%, to end the session at $40.13 a barrel. For the week, both notched gains of more than 8%.
Libyan oil production has risen to 1.2 million barrels per day (bpd), a Libyan oil source told Reuters, up from the 1.0 million bpd reported on Nov. 7 by the country’s National Oil Corp.
Oil prices fell about 2% on Friday, pressured by swelling output from Libya and fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand.
Hopes for a vaccine kept crude futures on track for a second straight weekly gain.
Brent crude LCOc1 fell 75 cents, or 1.7%, to settle at $42.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 99 cents, or 2.4%, to end the session at $40.13 a barrel. For the week, both notched gains of more than 8%.
Libyan oil production has risen to 1.2 million barrels per day (bpd), a Libyan oil source told Reuters, up from the 1.0 million bpd reported on Nov. 7 by the country’s National Oil Corp.
EG Group’s owners cash out ahead of £6.8bn Asda deal | Financial Times
EG Group’s owners cash out ahead of £6.8bn Asda deal | Financial Times
The owners of the petrol stations business EG Group have raised expensive debt-like financing from sovereign wealth and pension funds, handing them hundreds of millions of pounds in fresh cash that could help fund their buyout of the UK supermarket chain Asda.
The owners of the petrol stations business EG Group have raised expensive debt-like financing from sovereign wealth and pension funds, handing them hundreds of millions of pounds in fresh cash that could help fund their buyout of the UK supermarket chain Asda.
Brothers Mohsin Issa and Zuber Issa, and the private equity firm TDR Capital, raised the fresh funds at the Jersey holding company through which they own the heavily indebted petrol pump operator.
On Thursday, the offshore vehicle sold new preference shares — considered halfway between debt and traditional equity — to the Abu Dhabi Investment Authority (Adia) and two Canadian pension funds, the Alberta Investment Management Corporation and PSP Investments.
Holders of preference shares receive interest payments that accrue and compound over time but do not hold a stake or any voting rights in the company.
EG itself will not benefit from the funds raised, the group confirmed, though its Jersey holding company is ultimately liable to pay interest on the preference shares. It comes after the brothers and their private equity backers agreed to buy Asda, the UK’s third-largest supermarket group, in a £6.8bn deal announced last month.
Aldar Properties profit rises 8% as development business outperforms | Reuters
Aldar Properties profit rises 8% as development business outperforms | Reuters
Aldar Properties ALDAR.AD, Abu Dhabi's biggest property firm, posted an 8% rise in third-quarter net profit, helped by strong sales of completed residential units and income from its third-party development management business.
Aldar recorded a net profit of 416 million dirhams ($113.27 million) in the quarter ended Sept. 30, up from 387 million dirhams a year earlier, it said in an announcement late on Wednesday.
Sales of high-end development projects and strong cash collection for projects being handed over helped double Aldar’s revenue from its development business, which is set to take over more than 30 billion dirhams worth of Abu Dhabi government capital projects. [nD5N2FS00U]
“Aldar’s diversified business is performing well this year and we are in a robust financial position, driven by strong cash generation,” Chief Financial Officer Greg Fewer said on an earnings call on Thursday, adding that Aldar would assess acquisition opportunities, particularly in its home market, but declined to provide further details.
Aldar Properties ALDAR.AD, Abu Dhabi's biggest property firm, posted an 8% rise in third-quarter net profit, helped by strong sales of completed residential units and income from its third-party development management business.
Aldar recorded a net profit of 416 million dirhams ($113.27 million) in the quarter ended Sept. 30, up from 387 million dirhams a year earlier, it said in an announcement late on Wednesday.
Sales of high-end development projects and strong cash collection for projects being handed over helped double Aldar’s revenue from its development business, which is set to take over more than 30 billion dirhams worth of Abu Dhabi government capital projects. [nD5N2FS00U]
“Aldar’s diversified business is performing well this year and we are in a robust financial position, driven by strong cash generation,” Chief Financial Officer Greg Fewer said on an earnings call on Thursday, adding that Aldar would assess acquisition opportunities, particularly in its home market, but declined to provide further details.
#Saudi crown prince says PIF to inject $40 bln annually in economy in 2021, 2022 | Reuters
Saudi crown prince says PIF to inject $40 bln annually in economy in 2021, 2022 | Reuters
Saudi Arabia’s Crown Prince Mohammed bin Salman said the kingdom’s sovereign wealth fund, the Public Investment Fund, (PIF) will inject 150 billion riyals annually ($40 billion) into the economy in 2021 and 2022, and has become a key growth driver.
The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad as the young prince, known in the West as MbS, seeks to diversify the kingdom’s oil-heavy economy through his Vision 2030 strategy.
“Economic diversification is key to the kingdom’s sustainability, and we are working hard to achieve this through PIF investments in tourism, sports, industry, agriculture, transportation, mining, space and other sectors,” he said in a statement published by the Saudi Press Agency (SPA).
The 34-year-old prince said that PIF managed to double its assets to over 1.3 trillion riyals ($347 billion) and is on track to achieve a target of 7 trillion riyal worth of assets by 2030.
Saudi Arabia’s Crown Prince Mohammed bin Salman said the kingdom’s sovereign wealth fund, the Public Investment Fund, (PIF) will inject 150 billion riyals annually ($40 billion) into the economy in 2021 and 2022, and has become a key growth driver.
The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad as the young prince, known in the West as MbS, seeks to diversify the kingdom’s oil-heavy economy through his Vision 2030 strategy.
“Economic diversification is key to the kingdom’s sustainability, and we are working hard to achieve this through PIF investments in tourism, sports, industry, agriculture, transportation, mining, space and other sectors,” he said in a statement published by the Saudi Press Agency (SPA).
The 34-year-old prince said that PIF managed to double its assets to over 1.3 trillion riyals ($347 billion) and is on track to achieve a target of 7 trillion riyal worth of assets by 2030.
Oil falls on COVID-19 surge but on track for weekly gain | Reuters
Oil falls on COVID-19 surge but on track for weekly gain | Reuters
Oil prices fell on Friday, pressured by fears about a slow recovery in the global economy and fuel demand due to rising COVID-19 infections, but the market remained on track for a second straight weekly gain, helped by hopes for a vaccine.
Brent crude LCOc1 was down 51 cents, or 1.2%, at $43.02 a barrel as of 0741 GMT, after dropping 0.6% on Thursday. U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 66 cents, or 1.6%, to $40.46 a barrel, having lost 0.8% on Thursday.
For the week, both were headed for a surge of about 9%.
U.S. government data also added pressure, as crude inventories rose by 4.3 million barrels last week, compared with an expected fall of 913,000 barrels.
Oil prices fell on Friday, pressured by fears about a slow recovery in the global economy and fuel demand due to rising COVID-19 infections, but the market remained on track for a second straight weekly gain, helped by hopes for a vaccine.
Brent crude LCOc1 was down 51 cents, or 1.2%, at $43.02 a barrel as of 0741 GMT, after dropping 0.6% on Thursday. U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 66 cents, or 1.6%, to $40.46 a barrel, having lost 0.8% on Thursday.
For the week, both were headed for a surge of about 9%.
U.S. government data also added pressure, as crude inventories rose by 4.3 million barrels last week, compared with an expected fall of 913,000 barrels.
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