Saudi Arabia Won’t Tap Debt Market Again In 2020, Minister Says - Bloomberg
Saudi Arabia has no plans to tap international debt markets again this year as the kingdom leans on domestic borrowing to cover its budget deficit, Finance Minister Mohammed Al-Jadaan said.
“We went to the local market significantly this year, we are likely to go to the market next year,” Al-Jadaan said in an interview with Bloomberg TV on Friday. “There are no plans currently for an international issuance.”
The world’s largest crude exporter is relying on more borrowing as it grapples with the impact of the twin economic shocks caused by oil market turmoil and the coronavirus pandemic. But the kingdom covered nearly its entire budget deficit with domestic borrowing in the third quarter, even as its fiscal gap widened 27% from a year earlier.
It also borrowed 45 billion riyals more than needed from domestic lenders, and will use that over-financing to help plug the rest of the year’s deficit, the finance ministry said last month. That means the kingdom won’t need to tap international markets in the last few months of the year, as Morgan Stanley similarly predicted earlier.
Friday, 20 November 2020
Oil rises about 1%, posts third week of gains on vaccine hopes | Reuters
Oil rises about 1%, posts third week of gains on vaccine hopes | Reuters
Oil prices rose about 1% higher on Friday and posted a third consecutive weekly rise, buoyed by successful COVID-19 vaccine trials, while renewed lockdowns in several countries to limit the spread of the coronavirus capped gains.
Brent crude LCOc1 futures rose 76 cents, or 1.7%, to settle at $44.96 a barrel.
The more active U.S. West Texas Intermediate (WTI) January crude contract CLc2 gained 52 cents, or 1.2% to $42.42 a barrel. The WTI contract for December CLc1, which expired on Friday, rose 41 cents, or 1%, to settle at $42.15 a barrel.
Both benchmarks gained about 5% this week.
Prospects for effective COVID-19 vaccines have bolstered oil markets this week. Pfizer Inc said it will apply to U.S. health regulators on Friday for emergency use authoritization of its vaccine, the first such application in a major step toward providing protection against the new coronavirus.
Oil prices rose about 1% higher on Friday and posted a third consecutive weekly rise, buoyed by successful COVID-19 vaccine trials, while renewed lockdowns in several countries to limit the spread of the coronavirus capped gains.
Brent crude LCOc1 futures rose 76 cents, or 1.7%, to settle at $44.96 a barrel.
The more active U.S. West Texas Intermediate (WTI) January crude contract CLc2 gained 52 cents, or 1.2% to $42.42 a barrel. The WTI contract for December CLc1, which expired on Friday, rose 41 cents, or 1%, to settle at $42.15 a barrel.
Both benchmarks gained about 5% this week.
Prospects for effective COVID-19 vaccines have bolstered oil markets this week. Pfizer Inc said it will apply to U.S. health regulators on Friday for emergency use authoritization of its vaccine, the first such application in a major step toward providing protection against the new coronavirus.
America’s Biggest Oil Storage Hub is Filling to the Brim Again - Bloomberg
America’s Biggest Oil Storage Hub is Filling to the Brim Again - Bloomberg
Oil tanks in America’s most important crude storage hub are filling to the brim once again, quickly approaching the critical levels reached in May after prices crashed.
Stockpiles at Cushing, Oklahoma, the delivery point for West Texas Intermediate futures, stood at 61.6 million barrels as of Nov. 13, or about 81% of capacity, according to the most recent U.S. government data. That’s 3.83 million barrels shy of the levels seen in May.
Though a repeat of the negative oil prices seen in April is unlikely, the mounting supply glut brings home how lockdown measures to contain the Covid-19 pandemic may soon force traders to store oil in every nook and cranny available, including ships and pipelines. Some are already doing that.
The reasons behind the buildup are similar to what happened before: Refineries are still coping with lackluster demand as coronavirus cases surge anew. On top of that, some of them have also been undergoing seasonal maintenance.
“Even as those facilities come back online, we are seeing excess inflows into Cushing overshadowing increased demand,” said Hillary Stevenson, a research director at Wood Mackenzie Ltd.
With states reimposing restrictions, demand for gasoline fell by half a million barrels a day last week, the biggest week-over-week decline since May, data from the Energy Information Administration show.
Oil tanks in America’s most important crude storage hub are filling to the brim once again, quickly approaching the critical levels reached in May after prices crashed.
Stockpiles at Cushing, Oklahoma, the delivery point for West Texas Intermediate futures, stood at 61.6 million barrels as of Nov. 13, or about 81% of capacity, according to the most recent U.S. government data. That’s 3.83 million barrels shy of the levels seen in May.
Though a repeat of the negative oil prices seen in April is unlikely, the mounting supply glut brings home how lockdown measures to contain the Covid-19 pandemic may soon force traders to store oil in every nook and cranny available, including ships and pipelines. Some are already doing that.
The reasons behind the buildup are similar to what happened before: Refineries are still coping with lackluster demand as coronavirus cases surge anew. On top of that, some of them have also been undergoing seasonal maintenance.
“Even as those facilities come back online, we are seeing excess inflows into Cushing overshadowing increased demand,” said Hillary Stevenson, a research director at Wood Mackenzie Ltd.
With states reimposing restrictions, demand for gasoline fell by half a million barrels a day last week, the biggest week-over-week decline since May, data from the Energy Information Administration show.
Oil prices little changed, on track for third straight weekly gain | Reuters
Oil prices little changed, on track for third straight weekly gain | Reuters
Oil prices were little changed on Friday, on track for a third consecutive weekly rise, but demand concerns stemming from surging coronavirus cases and renewed lockdowns in several countries capped gains.
Prospects of an effective COVID-19 vaccine and hopes that OPEC and its allies will keep production in check have bolstered oil markets this week.
Brent crude LCOc1 futures were up 2 cents, or 0.05% at $44.22 a barrel by 0730 GMT.
The more active U.S. West Texas Intermediate (WTI) January crude contract CLc2 dipped 4 cents to $41.86 a barrel. The WTI contract for December CLc1, which expires on Friday, was down 3 cents at $41.71 per barrel.
“Both contracts continue to consolidate at the upper end of their November ranges. However, momentum has notably waned, and both are vulnerable to negative headline surprises now,” said Jeffrey Halley, senior market analyst at OANDA.
Oil prices were little changed on Friday, on track for a third consecutive weekly rise, but demand concerns stemming from surging coronavirus cases and renewed lockdowns in several countries capped gains.
Prospects of an effective COVID-19 vaccine and hopes that OPEC and its allies will keep production in check have bolstered oil markets this week.
Brent crude LCOc1 futures were up 2 cents, or 0.05% at $44.22 a barrel by 0730 GMT.
The more active U.S. West Texas Intermediate (WTI) January crude contract CLc2 dipped 4 cents to $41.86 a barrel. The WTI contract for December CLc1, which expires on Friday, was down 3 cents at $41.71 per barrel.
“Both contracts continue to consolidate at the upper end of their November ranges. However, momentum has notably waned, and both are vulnerable to negative headline surprises now,” said Jeffrey Halley, senior market analyst at OANDA.
COVID deals blow to #SaudiArabia's G20 summit ambitions | Reuters
COVID deals blow to Saudi Arabia's G20 summit ambitions | Reuters
When Saudi Arabia, the world’s top oil exporter and a leading U.S. ally, took over the G20 presidency in December 2019, hopes in the kingdom were high.
A global summit would help rehabilitate the country on the international stage and turn the world’s attentions to key reforms launched by de facto ruler Crown Prince Mohammed bin Salman to open up the kingdom and diversify the economy.
But instead of hoped-for photo ops in opulent palaces, this year’s summit is mostly virtual due to COVID-19, dealing a blow to the prince’s ambitions in a year of global economic downturn.
Though circumstances are far from ideal, “the show must go on, and Saudis have to make the most of the meeting,” said Robert Mogielnicki, a resident scholar at the Arab Gulf States Institute in Washington.
Top of the Group of 20 major economies’ agenda is a COVID-19 action plan and measures to stem the pandemic’s impact on global economies, including debt relief for the poorest countries.
Saudi Arabia’s reputation has been battered since 2018, with a global furore over the murder of journalist Jamal Khashoggi, the war in Yemen and the continued detention of women’s rights activists arrested that year.
When Saudi Arabia, the world’s top oil exporter and a leading U.S. ally, took over the G20 presidency in December 2019, hopes in the kingdom were high.
A global summit would help rehabilitate the country on the international stage and turn the world’s attentions to key reforms launched by de facto ruler Crown Prince Mohammed bin Salman to open up the kingdom and diversify the economy.
But instead of hoped-for photo ops in opulent palaces, this year’s summit is mostly virtual due to COVID-19, dealing a blow to the prince’s ambitions in a year of global economic downturn.
Though circumstances are far from ideal, “the show must go on, and Saudis have to make the most of the meeting,” said Robert Mogielnicki, a resident scholar at the Arab Gulf States Institute in Washington.
Top of the Group of 20 major economies’ agenda is a COVID-19 action plan and measures to stem the pandemic’s impact on global economies, including debt relief for the poorest countries.
Saudi Arabia’s reputation has been battered since 2018, with a global furore over the murder of journalist Jamal Khashoggi, the war in Yemen and the continued detention of women’s rights activists arrested that year.
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