A Middle East Make-Up Proves Complicated - Bloomberg #Qatar #SaudiArabia #UAE
The Saudi-led attempt to ostracize Qatar might now yield a foreign policy win for a U.S. president looking to embellish his legacy while maintaining he didn’t lose an election.
But as talks brokered by the Trump administration edge closer toward a deal, the healing of the Saudi-Qatar rift has exposed strains in another relationship between Gulf neighbors that could have more lasting implications.
Conspicuous by its absence from the expected rapprochement with Qatar is the United Arab Emirates, which had moved in tandem for years with Saudi Arabia on everything from oil policy to international relations.
The Saudis and their Emirati allies have diverged over the war in Yemen, with the U.A.E effectively withdrawing from the conflict a year ago. The U.A.E also asserted itself with its landmark deal with Israel in September.
The leadership in Abu Dhabi has been more eager to continue the isolation of Qatar. There’s also room for discord over how to approach Iran, with expectations that President-elect Joe Biden will seek to rejoin the nuclear deal that Donald Trump ditched.
Thursday, 3 December 2020
OPEC+ Clinches Compromise on Gradual Easing of Output Cuts - Bloomberg
OPEC+ Clinches Compromise on Gradual Easing of Output Cuts - Bloomberg
OPEC+ agreed to ease oil-output cuts next year after almost a week of fraught negotiations that exposed a new rift at the heart of the cartel.
The group will add 500,000 barrels a day of production to the market in January, and ministers will then hold monthly consultations to decide on the next steps.
That’s a much shorter time frame than OPEC+ usually operates under, and before this week the expectation had been that the group would hold off putting more oil onto the fragile market for another three months.
But the compromise deal avoided a breakdown of OPEC+ unity, which had become a growing risk after days of tense talks exposed a new split between core cartel members, the United Arab Emirates and Saudi Arabia.
The meeting postponed by two days and then delayed again on Thursday. And in another sign of tension, Saudi Energy Minister Abdulaziz bin Salman didn’t chair the meeting as usual, leaving his Russian counterpart to do it alone.
“It’s very excruciating, it’s very tiring, it’s sometimes very frustrating,” he said of the talks. Still, the oil market is seeing the “light at the end of the tunnel.”
OPEC+ agreed to ease oil-output cuts next year after almost a week of fraught negotiations that exposed a new rift at the heart of the cartel.
The group will add 500,000 barrels a day of production to the market in January, and ministers will then hold monthly consultations to decide on the next steps.
That’s a much shorter time frame than OPEC+ usually operates under, and before this week the expectation had been that the group would hold off putting more oil onto the fragile market for another three months.
But the compromise deal avoided a breakdown of OPEC+ unity, which had become a growing risk after days of tense talks exposed a new split between core cartel members, the United Arab Emirates and Saudi Arabia.
The meeting postponed by two days and then delayed again on Thursday. And in another sign of tension, Saudi Energy Minister Abdulaziz bin Salman didn’t chair the meeting as usual, leaving his Russian counterpart to do it alone.
“It’s very excruciating, it’s very tiring, it’s sometimes very frustrating,” he said of the talks. Still, the oil market is seeing the “light at the end of the tunnel.”
Brent rises to highest since March after OPEC+ output cut deal | Reuters
Brent rises to highest since March after OPEC+ output cut deal | Reuters
Global benchmark Brent crude prices rose 1% to their highest since early March on Thursday on renewed hopes for a U.S. stimulus deal and after major oil producers agreed to increase output by a modest 500,000 barrels per day (bpd) from January.
The increase means the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.
OPEC+ had been expected to extend existing cuts until at least March, after backing down from earlier plans to boost output by 2 million bpd.
“Markets are now reacting positively and prices are recording a small increase as 500,000 (bpd) of extra supply is not deadly for balances,” said Paola Rodriguez-Masiu, senior oil markets analyst at Rystad Energy.
Brent LCOc1 futures rose 46 cents, or 1.0%, to settle at $48.71 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 36 cents, or 0.8%, to a one-week closing high of $45.64.
Global benchmark Brent crude prices rose 1% to their highest since early March on Thursday on renewed hopes for a U.S. stimulus deal and after major oil producers agreed to increase output by a modest 500,000 barrels per day (bpd) from January.
The increase means the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.
OPEC+ had been expected to extend existing cuts until at least March, after backing down from earlier plans to boost output by 2 million bpd.
“Markets are now reacting positively and prices are recording a small increase as 500,000 (bpd) of extra supply is not deadly for balances,” said Paola Rodriguez-Masiu, senior oil markets analyst at Rystad Energy.
Brent LCOc1 futures rose 46 cents, or 1.0%, to settle at $48.71 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 36 cents, or 0.8%, to a one-week closing high of $45.64.
A Middle East Make-Up Proves Complicated - Bloomberg #Qatar #SaudiArabia #UAE
A Middle East Make-Up Proves Complicated - Bloomberg #Qatar #SaudiArabia #UAE
The Saudi-led attempt to ostracize Qatar might now yield a foreign policy win for a U.S. president looking to embellish his legacy while maintaining he didn’t lose an election.
But as talks brokered by the Trump administration edge closer toward a deal, the healing of the Saudi-Qatar rift has exposed strains in another relationship between Gulf neighbors that could have more lasting implications.
Conspicuous by its absence from the expected rapprochement with Qatar is the United Arab Emirates, which had moved in tandem for years with Saudi Arabia on everything from oil policy to international relations.
The Saudis and their Emirati allies have diverged over the war in Yemen, with the U.A.E effectively withdrawing from the conflict a year ago. The U.A.E also asserted itself with its landmark deal with Israel in September.
The Saudi-led attempt to ostracize Qatar might now yield a foreign policy win for a U.S. president looking to embellish his legacy while maintaining he didn’t lose an election.
But as talks brokered by the Trump administration edge closer toward a deal, the healing of the Saudi-Qatar rift has exposed strains in another relationship between Gulf neighbors that could have more lasting implications.
Conspicuous by its absence from the expected rapprochement with Qatar is the United Arab Emirates, which had moved in tandem for years with Saudi Arabia on everything from oil policy to international relations.
The Saudis and their Emirati allies have diverged over the war in Yemen, with the U.A.E effectively withdrawing from the conflict a year ago. The U.A.E also asserted itself with its landmark deal with Israel in September.
OPEC+ Said to Focus on Proposals for Gradual Taper of Cuts - Bloomberg
OPEC+ Said to Focus on Proposals for Gradual Taper of Cuts - Bloomberg
OPEC+ is making headway in its negotiations on oil-output cuts, raising the odds that Thursday’s meeting can salvage a deal after failed talks earlier in the week.
After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- discussions are now focusing on proposals for gradual easing of output cuts over several months, said a delegate. It’s unclear whether the tapering would start in January, or would be delayed to later in the first quarter.
The proposals, if accepted by the whole OPEC+ group, would modify the current deal that allows 1.9 million barrels a day of fresh crude supplies to be added to the market from Jan. 1. The person, who asked not to be named because the information was private, did not specify whether the proposals would return that same volume of production over a longer period, or a different amount.
The Organization of Petroleum Exporting Countries and its allies need to hash out an agreement on supply levels for next year. Initially, talks had centered on delaying the January production hike by three months, but that option ran into obstacles on Monday amid a clash between Saudi Arabia and the UAE. Since then, delegates have been trying to find a way forward.
OPEC+ is making headway in its negotiations on oil-output cuts, raising the odds that Thursday’s meeting can salvage a deal after failed talks earlier in the week.
After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- discussions are now focusing on proposals for gradual easing of output cuts over several months, said a delegate. It’s unclear whether the tapering would start in January, or would be delayed to later in the first quarter.
The proposals, if accepted by the whole OPEC+ group, would modify the current deal that allows 1.9 million barrels a day of fresh crude supplies to be added to the market from Jan. 1. The person, who asked not to be named because the information was private, did not specify whether the proposals would return that same volume of production over a longer period, or a different amount.
The Organization of Petroleum Exporting Countries and its allies need to hash out an agreement on supply levels for next year. Initially, talks had centered on delaying the January production hike by three months, but that option ran into obstacles on Monday amid a clash between Saudi Arabia and the UAE. Since then, delegates have been trying to find a way forward.
#Saudi shares fall on weak oil; set for weekly loss | Reuters
Saudi shares fall on weak oil; set for weekly loss | Reuters
Saudi shares eased in early trade on Thursday and were set for a weekly loss, tracking weaker oil prices, while other Gulf markets rode on euphoria around encouraging coronavirus vaccine developments.
Oil prices fell as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic. [O/R]
The Organization of the Petroleum Exporting Countries (OPEC) and Russia will resume discussions on Thursday over 2021 policies after earlier talks produced no compromise on how to tackle weak oil demand.
The Saudi benchmark fell 0.2%, extending losses for a third consecutive session, and was set to record its first weekly loss in five.
Lender Al-Rajhi Bank and Saudi Basic Industries Corp lost 0.4% and 0.6%, respectively.
Index heavyweight Saudi Aramco fell about 0.3%, while Saudi Arabia’s biggest lender National Commercial Bank lost 0.6%.
The Dubai and Abu Dhabi markets are shut for three days for holidays until the end of this trading week and will reopen on Sunday.
Meanwhile, other regional markets extended gains after Britain on Wednesday became the first Western country to approve a COVID-19 vaccine, with plans to start immunization next week.
In Qatar, the benchmark rose 0.7%, with Qatar National Bank and Industries Qatar adding 1% each.
Qatar’s benchmark is on track to post a weekly gain of 1.7%.
The Kuwait benchmark added 0.4% in morning trade but was on course for a weekly loss of nearly 2%.
Qurain Petrochemical Industries Co and property stock Mabanee Co were among the top gainers in the morning session, gaining 1.6% each.
Saudi shares eased in early trade on Thursday and were set for a weekly loss, tracking weaker oil prices, while other Gulf markets rode on euphoria around encouraging coronavirus vaccine developments.
Oil prices fell as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic. [O/R]
The Organization of the Petroleum Exporting Countries (OPEC) and Russia will resume discussions on Thursday over 2021 policies after earlier talks produced no compromise on how to tackle weak oil demand.
The Saudi benchmark fell 0.2%, extending losses for a third consecutive session, and was set to record its first weekly loss in five.
Lender Al-Rajhi Bank and Saudi Basic Industries Corp lost 0.4% and 0.6%, respectively.
Index heavyweight Saudi Aramco fell about 0.3%, while Saudi Arabia’s biggest lender National Commercial Bank lost 0.6%.
The Dubai and Abu Dhabi markets are shut for three days for holidays until the end of this trading week and will reopen on Sunday.
Meanwhile, other regional markets extended gains after Britain on Wednesday became the first Western country to approve a COVID-19 vaccine, with plans to start immunization next week.
In Qatar, the benchmark rose 0.7%, with Qatar National Bank and Industries Qatar adding 1% each.
Qatar’s benchmark is on track to post a weekly gain of 1.7%.
The Kuwait benchmark added 0.4% in morning trade but was on course for a weekly loss of nearly 2%.
Qurain Petrochemical Industries Co and property stock Mabanee Co were among the top gainers in the morning session, gaining 1.6% each.
Oil gains as OPEC+ resumes output cut extension talks after impasse | Reuters
Oil gains as OPEC+ resumes output cut extension talks after impasse | Reuters
Oil prices rose on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic.
Brent crude was up 21 cents, or 0.4%, at $48.46 a barrel by 0802 GMT, after gaining 1.8% on Wednesday. U.S. oil was 11 cents, or 0.2%, higher at $45.39 a barrel, having ended 1.6% higher the previous session.
The Organization of the Petroleum Exporting Countries (OPEC) and Russia are resuming discussions on Thursday to agree on policies for 2021 after earlier talks produced no compromise on how to tackle weak oil demand amid a new coronavirus wave.
OPEC and allies, in the group known as OPEC+, had been widely expected to roll over oil cuts of 7.7 million barrels per day, or 8 percent of global supplies, at least until March 2021.
Oil prices rose on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic.
Brent crude was up 21 cents, or 0.4%, at $48.46 a barrel by 0802 GMT, after gaining 1.8% on Wednesday. U.S. oil was 11 cents, or 0.2%, higher at $45.39 a barrel, having ended 1.6% higher the previous session.
The Organization of the Petroleum Exporting Countries (OPEC) and Russia are resuming discussions on Thursday to agree on policies for 2021 after earlier talks produced no compromise on how to tackle weak oil demand amid a new coronavirus wave.
OPEC and allies, in the group known as OPEC+, had been widely expected to roll over oil cuts of 7.7 million barrels per day, or 8 percent of global supplies, at least until March 2021.
#Saudi Wealth Fund Seeks Up to $7 Billion Loan for New Deals - Bloomberg
Saudi Wealth Fund Seeks Up to $7 Billion Loan for New Deals - Bloomberg
Saudi Arabia’s sovereign wealth fund plans to raise as much as $7 billion in loans as it seeks cash for new investments, according to people familiar with the matter.
The Public Investment Fund has approached international banks to participate in a U.S. dollar revolving facility of between $5 billion and $7 billion, the people said, asking not to be identified as the information is private. The PIF aims to complete the fundraising early next year and use the cash for opportunistic investments, they said.
The $347 billion sovereign investor is a key lever for the kingdom’s efforts to revive growth after what may be the deepest recession the world’s largest crude exporter has experienced since 1987. Handed $40 billion earlier this year to buy global stocks, the PIF plans to plow the same amount into the domestic economy next year and again in 2022.
The loan would be the third time PIF has tapped international banks for funding. Its debut loan raised $11 billion in 2018, while it repaid a $10 billion bridge loan in August, two months ahead of schedule.
The final size of the loan will depend on the response from banks, the people said. The fund didn’t immediately respond to a request for comment.
Saudi Arabia’s sovereign wealth fund plans to raise as much as $7 billion in loans as it seeks cash for new investments, according to people familiar with the matter.
The Public Investment Fund has approached international banks to participate in a U.S. dollar revolving facility of between $5 billion and $7 billion, the people said, asking not to be identified as the information is private. The PIF aims to complete the fundraising early next year and use the cash for opportunistic investments, they said.
The $347 billion sovereign investor is a key lever for the kingdom’s efforts to revive growth after what may be the deepest recession the world’s largest crude exporter has experienced since 1987. Handed $40 billion earlier this year to buy global stocks, the PIF plans to plow the same amount into the domestic economy next year and again in 2022.
The loan would be the third time PIF has tapped international banks for funding. Its debut loan raised $11 billion in 2018, while it repaid a $10 billion bridge loan in August, two months ahead of schedule.
The final size of the loan will depend on the response from banks, the people said. The fund didn’t immediately respond to a request for comment.
#Saudi Business Climate at 10-Month High; Egypt Growth Slows - Bloomberg
Saudi Business Climate at 10-Month High; Egypt Growth Slows - Bloomberg
Business activity in Saudi Arabia grew at the fastest pace since the beginning of the year, fueled by a sharp rise in sales and strengthening sentiment.
In Egypt, activity posted a third month of growth but at a slower rate, as confidence for the year ahead hit a record low on fears over the impact of a second wave of the virus on global markets.
Non-oil private sector activity in Saudi Arabia rose to the highest level since January, according to IHS Markit’s Purchasing Managers’ Index. The gauge was well above the 50 mark that separates growth from contraction.
It’s welcome news for the kingdom, but there’s still catching up to do in order to overcome the coronavirus slowdown, the report said. Concerns that the virus may flare up again still cloud the outlook. Meanwhile, employment figures returned to growth last month, though “only fractionally overall,” according to the report.
Business activity in Saudi Arabia grew at the fastest pace since the beginning of the year, fueled by a sharp rise in sales and strengthening sentiment.
In Egypt, activity posted a third month of growth but at a slower rate, as confidence for the year ahead hit a record low on fears over the impact of a second wave of the virus on global markets.
Non-oil private sector activity in Saudi Arabia rose to the highest level since January, according to IHS Markit’s Purchasing Managers’ Index. The gauge was well above the 50 mark that separates growth from contraction.
It’s welcome news for the kingdom, but there’s still catching up to do in order to overcome the coronavirus slowdown, the report said. Concerns that the virus may flare up again still cloud the outlook. Meanwhile, employment figures returned to growth last month, though “only fractionally overall,” according to the report.
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