Brent rises above $50/bbl for first time since March on vaccine optimism | Reuters
Oil prices climbed nearly 3% on Thursday, with Brent surging above $50 a barrel for the first time since early March, fueled by hopes of a faster demand recovery as countries start to roll out COVID-19 vaccines.
The bullish sentiment offset a large increase in U.S. crude inventories that showed there was still ample supply available.
Britain began vaccinations this week and the United States could start inoculations as soon as this weekend. Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.
Brent crude rose $1.39, or 2.8%, to settle at $50.25 a barrel, gaining for a third day. U.S. West Texas Intermediate (WTI) crude rose $1.26, or 2.8%, to settle at $46.78 a barrel.
Thursday, 10 December 2020
Aramco Said to Tap Moelis to Raise Billions From Asset Sales - Bloomberg
Aramco Said to Tap Moelis to Raise Billions From Asset Sales - Bloomberg
Saudi Arabia is looking to emulate neighboring Abu Dhabi by using its state energy firm to raise billions of dollars from investors, as the kingdom seeks cash to counter a severe recession.
Saudi Aramco, the world’s biggest oil company, has hired Moelis & Co. to devise a strategy for selling stakes in some subsidiaries, according to people familiar with the matter. The plan includes raising around $10 billion from a stake sale in Aramco’s pipelines, said the people, who asked not to be identified because the matter is private.
Moelis and Aramco declined to comment.
Saudi Arabia has been hammered this year by coronavirus lockdowns and the slump in crude prices. The economy will contract 5.4% in 2020, the most since the 1980s, according to the International Monetary Fund. The budget deficit could widen to 12% of gross domestic product.
Oil-producing Gulf Arab economies have been forced to accelerate efforts to attract investment.
Saudi Arabia is looking to emulate neighboring Abu Dhabi by using its state energy firm to raise billions of dollars from investors, as the kingdom seeks cash to counter a severe recession.
Saudi Aramco, the world’s biggest oil company, has hired Moelis & Co. to devise a strategy for selling stakes in some subsidiaries, according to people familiar with the matter. The plan includes raising around $10 billion from a stake sale in Aramco’s pipelines, said the people, who asked not to be identified because the matter is private.
Moelis and Aramco declined to comment.
Saudi Arabia has been hammered this year by coronavirus lockdowns and the slump in crude prices. The economy will contract 5.4% in 2020, the most since the 1980s, according to the International Monetary Fund. The budget deficit could widen to 12% of gross domestic product.
Oil-producing Gulf Arab economies have been forced to accelerate efforts to attract investment.
State-related entity debt in Gulf to rise next year, Fitch says | Reuters
State-related entity debt in Gulf to rise next year, Fitch says | Reuters
Government-related-entity (GRE) debt in the six Gulf Arab states, wihch include Saudi Arabia and the United Arab Emirates, will increase next year, ratings agency Fitch said on Thursday.
The coronavirus pandemic has strained the economies of Gulf countries already under pressure from low oil prices, a key source of state revenue.
“The economic contraction in 2020 will further exacerbate leverage ratios and magnify the risks of GRE liabilities crystallising on government balance sheets,” it said.
Government support for state-related entities is expected, Fitch said, citing their importance to the national economies and status as “national champions”.
It said Qatar and Oman’s sovereign ratings were the most likely to be affected by GRE indebtedness due to their exposure against the strength of their balance sheets.
Government-related-entity (GRE) debt in the six Gulf Arab states, wihch include Saudi Arabia and the United Arab Emirates, will increase next year, ratings agency Fitch said on Thursday.
The coronavirus pandemic has strained the economies of Gulf countries already under pressure from low oil prices, a key source of state revenue.
“The economic contraction in 2020 will further exacerbate leverage ratios and magnify the risks of GRE liabilities crystallising on government balance sheets,” it said.
Government support for state-related entities is expected, Fitch said, citing their importance to the national economies and status as “national champions”.
It said Qatar and Oman’s sovereign ratings were the most likely to be affected by GRE indebtedness due to their exposure against the strength of their balance sheets.
#UAE, #Israel Start Talks on Energy Cooperation as Ties Normalize - Bloomberg
UAE, Israel Start Talks on Energy Cooperation as Ties Normalize - Bloomberg
Israel and the United Arab Emirates held talks to discuss cooperation in the oil and gas sector, months after the two nations agreed to normalize ties.
OPEC’s third-largest oil producer and Israel held their first natural gas and petroleum working group meeting, UAE’s state-run WAM news agency reported on Thursday.
The countries discussed ways to develop bilateral relations and cooperation in energy, petroleum and natural gas, WAM said. The meeting included representatives from the countries’ energy ministries as well as from the Abu Dhabi National Oil Company.
Since signing the peace agreement earlier this year, UAE and Israel have discussed establishing embassies, starting direct flights and business deals. The countries have also started talks over an oil pipeline linking the Red Sea with the Mediterranean, whose operations Israeli officials treat as top secret.
Israel and the United Arab Emirates held talks to discuss cooperation in the oil and gas sector, months after the two nations agreed to normalize ties.
OPEC’s third-largest oil producer and Israel held their first natural gas and petroleum working group meeting, UAE’s state-run WAM news agency reported on Thursday.
The countries discussed ways to develop bilateral relations and cooperation in energy, petroleum and natural gas, WAM said. The meeting included representatives from the countries’ energy ministries as well as from the Abu Dhabi National Oil Company.
Since signing the peace agreement earlier this year, UAE and Israel have discussed establishing embassies, starting direct flights and business deals. The countries have also started talks over an oil pipeline linking the Red Sea with the Mediterranean, whose operations Israeli officials treat as top secret.
#Qatar Set for Biggest Budget Deficit Since Gulf Spat in 2017 - Bloomberg
Qatar Set for Biggest Budget Deficit Since Gulf Spat in 2017 - Bloomberg
Qatar will run its largest budget deficit in four years in 2021 as it tries to shake off the impact of the coronavirus and the drag of lower energy prices on government revenue.
The country will spend 34.6 billion riyals ($9.4 billion) more than it takes in next year, according to a statement from the Finance Ministry on Thursday. The projected shortfall for next year will be the largest since 2017, when countries including Saudi Arabia and the United Arab Emirates severed diplomatic ties with Doha.
Qatar’s deficit is expected to swell even though the world’s largest natural-gas exporter is planning to cut government spending by 7.5% from last year. The budget assumes oil prices will average $40 per barrel, down from $55 per barrel.
Qatar will run its largest budget deficit in four years in 2021 as it tries to shake off the impact of the coronavirus and the drag of lower energy prices on government revenue.
The country will spend 34.6 billion riyals ($9.4 billion) more than it takes in next year, according to a statement from the Finance Ministry on Thursday. The projected shortfall for next year will be the largest since 2017, when countries including Saudi Arabia and the United Arab Emirates severed diplomatic ties with Doha.
Qatar’s deficit is expected to swell even though the world’s largest natural-gas exporter is planning to cut government spending by 7.5% from last year. The budget assumes oil prices will average $40 per barrel, down from $55 per barrel.
Exclusive-NMC Health administrators sound out investors for flagship UAE hospitals - sources | Reuters
Exclusive-NMC Health administrators sound out investors for flagship UAE hospitals - sources | Reuters
Administrators of troubled hospital operator NMC Health are sounding out potential buyer interest for its flagship business in the United Arab Emirates (UAE), three sources familiar with the matter said.
The potential sale of its biggest assets which would also include Oman, could generate around $1 billion, one of the sources said. It follows administrators Alvarez & Marsal’s launch in August of a process to sell NMC’s international business including its international fertility units.
NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, became the largest private healthcare provider in the UAE but has run into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
NMC went into administration in April following months of turmoil over its finances and the discovery that it had $6.6 billion in debt, well above earlier estimates.
The administrators will present two options to NMC’s creditors by February: either an outright sale of the assets or a business reorganisation, said the sources. Lenders will have to vote by April on which of the two options they opt for, added one of them.
Administrators of troubled hospital operator NMC Health are sounding out potential buyer interest for its flagship business in the United Arab Emirates (UAE), three sources familiar with the matter said.
The potential sale of its biggest assets which would also include Oman, could generate around $1 billion, one of the sources said. It follows administrators Alvarez & Marsal’s launch in August of a process to sell NMC’s international business including its international fertility units.
NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, became the largest private healthcare provider in the UAE but has run into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
NMC went into administration in April following months of turmoil over its finances and the discovery that it had $6.6 billion in debt, well above earlier estimates.
The administrators will present two options to NMC’s creditors by February: either an outright sale of the assets or a business reorganisation, said the sources. Lenders will have to vote by April on which of the two options they opt for, added one of them.
Moody’s assigns Aa2 rating to UAE government with stable outlook | ZAWYA MENA Edition
Moody’s assigns Aa2 rating to UAE government with stable outlook | ZAWYA MENA Edition
The UAE government received an Aa2 rating in creditworthiness - which is the highest sovereign rating in the region - with a stable outlook for the national economy by the international rating agency, Moody's. This is another testament to the success of the country's financial and economic vision and policies, and the strength and stability of its economic, financial and credit sectors.
H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, confirmed that this new classification reflects the strength and resilience of the country's economy and its ability to overcome various challenges - especially in light of the exceptional circumstances that the world is witnessing due to the COVID-19 pandemic.
Sheikh Hamdan noted that this rating has proved beyond any doubt the solid foundations of the nation’s public finances.
H.H. affirmed the success and effectiveness of the proactive policies and measures taken by the federal government to deal with the effects of the pandemic, to continue achieving economic targets and pushing forward comprehensive and sustainable development, making the UAE a model to be followed globally.
The UAE government received an Aa2 rating in creditworthiness - which is the highest sovereign rating in the region - with a stable outlook for the national economy by the international rating agency, Moody's. This is another testament to the success of the country's financial and economic vision and policies, and the strength and stability of its economic, financial and credit sectors.
H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, confirmed that this new classification reflects the strength and resilience of the country's economy and its ability to overcome various challenges - especially in light of the exceptional circumstances that the world is witnessing due to the COVID-19 pandemic.
Sheikh Hamdan noted that this rating has proved beyond any doubt the solid foundations of the nation’s public finances.
H.H. affirmed the success and effectiveness of the proactive policies and measures taken by the federal government to deal with the effects of the pandemic, to continue achieving economic targets and pushing forward comprehensive and sustainable development, making the UAE a model to be followed globally.
#AbuDhabi's ADNOC hires Standard Chartered to sell waste management assets - sources | Reuters
Abu Dhabi's ADNOC hires Standard Chartered to sell waste management assets - sources | Reuters
Abu Dhabi National Oil Company (ADNOC) is considering the sale of waste management assets held by one of its units and they could fetch around $500 million, sources close to the deal said, as the state-owned firm seeks to monetise non-core assets.
The oil giant has hired Standard Chartered to test investor appetite and arrange a potential sale for some assets held by its unit ADNOC Refining, formerly known as Abu Dhabi Oil Refining Company (TAKREER), said the three sources, who declined to be named as the matter is not public.
Many potential bidders have already been approached, they said.
ADNOC and Standard Chartered declined to comment when contacted by Reuters on Thursday.
Abu Dhabi National Oil Company (ADNOC) is considering the sale of waste management assets held by one of its units and they could fetch around $500 million, sources close to the deal said, as the state-owned firm seeks to monetise non-core assets.
The oil giant has hired Standard Chartered to test investor appetite and arrange a potential sale for some assets held by its unit ADNOC Refining, formerly known as Abu Dhabi Oil Refining Company (TAKREER), said the three sources, who declined to be named as the matter is not public.
Many potential bidders have already been approached, they said.
ADNOC and Standard Chartered declined to comment when contacted by Reuters on Thursday.
Oil rises above $49 as vaccine release spurs demand hopes | Reuters
Oil rises above $49 as vaccine release spurs demand hopes | Reuters
Oil rose above $49 a barrel on Thursday as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in U.S. crude inventories that showed supply remains ample.
Britain began vaccinations this week and they could start as soon as this weekend in the United States. Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.
Brent crude was up 35 cents, or 0.7%, to $49.21 a barrel at 0920 GMT, rising for a third day. U.S. West Texas Intermediate (WTI) crude rose 22 cents, or 0.5%, to $45.74.
Oil gained even after the latest weekly report on U.S. oil inventories showed a massive, 15.2 million-barrel rise in crude stocks. Analysts had expected a 1.4 million-barrel drop. [EIA/S]
“The latest set of data has exceeded any bearish expectations,” said Tamas Varga of oil broker PVM. “The stubbornness of oil bulls and their confidence in the positive economic impact of the vaccine roll-out are truly remarkable.”
Oil rose above $49 a barrel on Thursday as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in U.S. crude inventories that showed supply remains ample.
Britain began vaccinations this week and they could start as soon as this weekend in the United States. Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.
Brent crude was up 35 cents, or 0.7%, to $49.21 a barrel at 0920 GMT, rising for a third day. U.S. West Texas Intermediate (WTI) crude rose 22 cents, or 0.5%, to $45.74.
Oil gained even after the latest weekly report on U.S. oil inventories showed a massive, 15.2 million-barrel rise in crude stocks. Analysts had expected a 1.4 million-barrel drop. [EIA/S]
“The latest set of data has exceeded any bearish expectations,” said Tamas Varga of oil broker PVM. “The stubbornness of oil bulls and their confidence in the positive economic impact of the vaccine roll-out are truly remarkable.”
MIDEAST STOCKS-Major Gulf indexes off to mixed start | Nasdaq
MIDEAST STOCKS-Major Gulf indexes off to mixed start | Nasdaq
Major Gulf stock markets were mixed in early trade on Thursday with the Abu Dhabi index leading gains boosted by top lender First Abu Dhabi Bank.
Saudi Arabia's benchmark index .TASI edged up 0.1%, with petrochemical maker Saudi Basic Industries 2010.SE rising 0.5%.
Dubai's main share index .DFMGI eased 0.1%, hurt by a 0.5% fall in Emirates NBD Bank ENBD.DU and a 0.6% decrease in blue-chip developer Emaar Properties EMAR.DU.
Emaar, which has developed some of Dubai's most popular and expensive neighbourhoods, has halted new building work after a construction boom in recent years led to oversupply in the Gulf city, its chairman said on Monday.
It was not immediately clear when Emaar had ceased new building work, although Reuters had reported in April, citing sources, that the company had suspended work on major new projects.
In Abu Dhabi, the index .ADI gained 0.9%, buoyed by a 2.3% rise in the United Arab Emirates' largest lender, First Abu Dhabi Bank FAB.AD.
On Wednesday, ratings agency Fitch affirmed its rating on First Abu Dhabi Bank's long-term issuer default rating (IDR) at 'AA-' and retained its stable outlook.
The Abu Dhabi Emergency, Crisis and Disaster Committee is working with local authorities in the UAE capital to resume all economic, cultural, tourist and entertainment activities within two weeks, state Abu Dhabi Media said on Wednesday.
The Qatari index .QSI lost 0.3%, weighed down by a 1.4% fall in petrochemical firm Industries Qatar IQCD.QA.
Major Gulf stock markets were mixed in early trade on Thursday with the Abu Dhabi index leading gains boosted by top lender First Abu Dhabi Bank.
Saudi Arabia's benchmark index .TASI edged up 0.1%, with petrochemical maker Saudi Basic Industries 2010.SE rising 0.5%.
Dubai's main share index .DFMGI eased 0.1%, hurt by a 0.5% fall in Emirates NBD Bank ENBD.DU and a 0.6% decrease in blue-chip developer Emaar Properties EMAR.DU.
Emaar, which has developed some of Dubai's most popular and expensive neighbourhoods, has halted new building work after a construction boom in recent years led to oversupply in the Gulf city, its chairman said on Monday.
It was not immediately clear when Emaar had ceased new building work, although Reuters had reported in April, citing sources, that the company had suspended work on major new projects.
In Abu Dhabi, the index .ADI gained 0.9%, buoyed by a 2.3% rise in the United Arab Emirates' largest lender, First Abu Dhabi Bank FAB.AD.
On Wednesday, ratings agency Fitch affirmed its rating on First Abu Dhabi Bank's long-term issuer default rating (IDR) at 'AA-' and retained its stable outlook.
The Abu Dhabi Emergency, Crisis and Disaster Committee is working with local authorities in the UAE capital to resume all economic, cultural, tourist and entertainment activities within two weeks, state Abu Dhabi Media said on Wednesday.
The Qatari index .QSI lost 0.3%, weighed down by a 1.4% fall in petrochemical firm Industries Qatar IQCD.QA.
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