Oil falls as Suez Canal reopens, dollar rallies; eyes on OPEC+ meeting | Reuters
Oil prices slid more than 1% on Tuesday as the Suez Canal reopened to traffic and the U.S. dollar rallied.
Investors shifted focus to the upcoming OPEC+ ministerial meeting on Thursday, where analysts expect the group to extend supply curbs given dim demand prospects.
Brent crude fell 84 cents, or 1.3%, to settle at $64.14 a barrel while West Texas Intermediate U.S. oil ended the session down $1.01, or 1.6%, at $60.55 barrel.
The benchmarks held their losses in post-settlement trade after industry data showed U.S. crude inventories swelled by 3.9 million barrels last week, sources said citing the American Petroleum Institute’s weekly report. Analysts in a Reuters poll forecast a build of about 100,000 barrels.
Tuesday 30 March 2021
Second day of trading for Murban crude contracts | The National
Second day of trading for Murban crude contracts | The National
Murban crude futures, Abu Dhabi's new oil benchmark, traded in line with international benchmark Brent on its second day of trading on the commodities exchange at ADGM.
The Murban futures contract for June delivery was trading 0.5 per cent lower at $63.57 per barrel at 7.28pm UAE time.
Brent, which underpins the majority of global oil trade, was 0.6 per cent lower at $64.57 per barrel. West Texas Intermediate, which prices oil on the basis of a basket of US crude grades, was lower by 0.8 per cent at $61.07 per barrel.
Abu Dhabi, which accounts for nearly all of the UAE's production, commenced trading on its popular Murban grade on Monday.
The light, sweet type of crude, which flows at the rate of 1.7 million barrels per day, accounts for half of the country's production.
The contracts are traded on Ice Futures Abu Dhabi, a new commodities exchange based in the emirate's financial free zone, Abu Dhabi Global Market.
Some 360 contracts for June delivery, which expire at the end of this month, traded on the second day, down from 6,344 on the opening day's trading.
Oil prices have remained depressed amid fresh lockdowns imposed on various parts of Europe and rising Covid-19 infections in other parts of the world.
Concerns over inflation have also depressed prices, which may receive a boost when Opec+ gathers for its monthly meetings on Wednesday and Thursday.
Murban crude futures, Abu Dhabi's new oil benchmark, traded in line with international benchmark Brent on its second day of trading on the commodities exchange at ADGM.
The Murban futures contract for June delivery was trading 0.5 per cent lower at $63.57 per barrel at 7.28pm UAE time.
Brent, which underpins the majority of global oil trade, was 0.6 per cent lower at $64.57 per barrel. West Texas Intermediate, which prices oil on the basis of a basket of US crude grades, was lower by 0.8 per cent at $61.07 per barrel.
Abu Dhabi, which accounts for nearly all of the UAE's production, commenced trading on its popular Murban grade on Monday.
The light, sweet type of crude, which flows at the rate of 1.7 million barrels per day, accounts for half of the country's production.
The contracts are traded on Ice Futures Abu Dhabi, a new commodities exchange based in the emirate's financial free zone, Abu Dhabi Global Market.
Some 360 contracts for June delivery, which expire at the end of this month, traded on the second day, down from 6,344 on the opening day's trading.
Oil prices have remained depressed amid fresh lockdowns imposed on various parts of Europe and rising Covid-19 infections in other parts of the world.
Concerns over inflation have also depressed prices, which may receive a boost when Opec+ gathers for its monthly meetings on Wednesday and Thursday.
#Qatar Petroleum takes over ownership of first-ever LNG plant | Reuters
Qatar Petroleum takes over ownership of first-ever LNG plant | Reuters
Qatar Petroleum said on Tuesday it would take full ownership of its Qatargas 1 liquefied natural gas (LNG) plant when its 25-year contract with international investors including Exxon Mobil Corp and Total SE expires next year.
The decision not to extend the contracts for the country’s first-ever LNG processing plan came as Qatar Petroleum (QP), the world’s top LNG producer, prepares to vastly expand its capacity in the coming years with foreign investment.
Qatargas 1, established in 1984, has an annual capacity of 10 million tonnes of LNG. It is a joint venture between QP, which holds a 65% stake with Total (10%), ExxonMobil (10%), Marubeni Corp (7.5%) and Mitsui & Co Ltd (7.5%).
Qatar Petroleum said in a statement it would not renew agreements with the companies when they expire on 31 December 2021.
“As a result, Qatar Petroleum will become the sole owner of 100% of the QG1 assets and facilities on 1 January 2022.”
International energy companies had previously hoped that partnerships with QP on existing LNG production facilities, known as trains, would be extend, albeit at different terms, analysts at Credit Suisse said in a note.
“QP had previously not indicated its approach for awarding the post-2021 contract. Now we know that when existing licenses expire, QP appears to plan without partners,” Credit Suisse said.
Qatar Petroleum said on Tuesday it would take full ownership of its Qatargas 1 liquefied natural gas (LNG) plant when its 25-year contract with international investors including Exxon Mobil Corp and Total SE expires next year.
The decision not to extend the contracts for the country’s first-ever LNG processing plan came as Qatar Petroleum (QP), the world’s top LNG producer, prepares to vastly expand its capacity in the coming years with foreign investment.
Qatargas 1, established in 1984, has an annual capacity of 10 million tonnes of LNG. It is a joint venture between QP, which holds a 65% stake with Total (10%), ExxonMobil (10%), Marubeni Corp (7.5%) and Mitsui & Co Ltd (7.5%).
Qatar Petroleum said in a statement it would not renew agreements with the companies when they expire on 31 December 2021.
“As a result, Qatar Petroleum will become the sole owner of 100% of the QG1 assets and facilities on 1 January 2022.”
International energy companies had previously hoped that partnerships with QP on existing LNG production facilities, known as trains, would be extend, albeit at different terms, analysts at Credit Suisse said in a note.
“QP had previously not indicated its approach for awarding the post-2021 contract. Now we know that when existing licenses expire, QP appears to plan without partners,” Credit Suisse said.
#Saudi private sector to invest $1.3 trillion in diversification by 2030: Crown Prince | Reuters
Saudi private sector to invest $1.3 trillion in diversification by 2030: Crown Prince | Reuters
Saudi Arabia’s Crown Prince Mohammed bin Salman said on Tuesday the local private sector will invest 5 trillion riyals ($1.3 trillion) between now and 2030 as part of new programme to help diversify the economy.
The private sector investment is part of the 12 trillion riyals worth of investments in the economy planned by 2030, Prince Mohammed said in a televised speech.
The amount also includes 3 trillion riyals from the country’s sovereign wealth fund, the Public Investment Fund (PIF), and 4 trillion riyals as part of a new Saudi investment strategy, he said.
The latest move is an effort by the Saudi government to bring in the private sector alongside the PIF to help diversify the economy to wean it off its dependence on oil.
Crude oil exports still account for more than half the kingdom’s income.
Saudi Arabia’s Crown Prince Mohammed bin Salman said on Tuesday the local private sector will invest 5 trillion riyals ($1.3 trillion) between now and 2030 as part of new programme to help diversify the economy.
The private sector investment is part of the 12 trillion riyals worth of investments in the economy planned by 2030, Prince Mohammed said in a televised speech.
The amount also includes 3 trillion riyals from the country’s sovereign wealth fund, the Public Investment Fund (PIF), and 4 trillion riyals as part of a new Saudi investment strategy, he said.
The latest move is an effort by the Saudi government to bring in the private sector alongside the PIF to help diversify the economy to wean it off its dependence on oil.
Crude oil exports still account for more than half the kingdom’s income.
#Saudi mall operator Arabian Centres sells $650 million in sukuk | Reuters
Saudi mall operator Arabian Centres sells $650 million in sukuk | Reuters
Saudi mall operator Arabian Centres on Tuesday launched $650 million in 5-1/2 year sukuk, or Islamic bonds, at 5.625%, a document showed.
The yield was tightened from initial guidance of around 5.875% after orders topped $1.35 billion, the document from one of the banks on the deal showed.
Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Kamco Invest and Warba Bank arranged the deal.
Sources told Reuters earlier this month that Arabian Centres, which operates 21 shopping centres across Saudi Arabia, was planning to raise $500 million via sukuk.
The company has said the debt sale will be used for general corporate purposes and to fulfil its financial and strategic objectives.
Saudi mall operator Arabian Centres on Tuesday launched $650 million in 5-1/2 year sukuk, or Islamic bonds, at 5.625%, a document showed.
The yield was tightened from initial guidance of around 5.875% after orders topped $1.35 billion, the document from one of the banks on the deal showed.
Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Kamco Invest and Warba Bank arranged the deal.
Sources told Reuters earlier this month that Arabian Centres, which operates 21 shopping centres across Saudi Arabia, was planning to raise $500 million via sukuk.
The company has said the debt sale will be used for general corporate purposes and to fulfil its financial and strategic objectives.
How Lex Greensill and David Cameron tried to woo #SaudiArabia’s crown prince | Financial Times
How Lex Greensill and David Cameron tried to woo Saudi Arabia’s crown prince | Financial Times
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| By reports of Lex Greensill’s account of the trip, the Australian financier explained he bonded under the night sky with Saudi Crown Prince Mohammed bin Salman over both having studied law © FT montage; Shutterstock, Bloomberg AFP via Getty |
Lex Greensill had penetrated the British establishment, forging close links with the country’s highest-ranking civil servants and ministers and lobbying for lucrative government contracts.
Now the Australian financier had a new sovereign client in mind, where wealth and power were more concentrated and the right relationships could transform his business: Saudi Arabia.
Before Greensill Capital collapsed this month, one of Lex Greensill’s favourite anecdotes was a camping trip he said he had taken with David Cameron and Saudi Crown Prince Mohammed bin Salman.
Accompanied by the former UK prime minister, who was now his paid adviser, Greensill visited the desert with Prince Mohammed, the kingdom’s de facto leader, according to three people who heard his account of the journey.
One of the people placed the trip during January or February 2020, shortly before the spread of coronavirus largely halted international travel. Flight records for Greensill Capital’s four private planes show a series of trips to Saudi Arabia in the first three months of last year.
#AbuDhabi outperforms Gulf markets | Reuters
Abu Dhabi outperforms Gulf markets | Reuters
The Abu Dhabi stock market ended higher on Tuesday, reaching its highest level since 2005, while the Saudi index was supported by utility company Saudi Electricity after it reported strong full-year earnings.
In Abu Dhabi, the index finished 1.5% higher, led by a 2.7% gain in telecoms firm Etisalat and a 1.3% increase in the country’s largest lender First Abu Dhabi Bank
Abu Dhabi, the capital of the United Arab Emirates, started trading a Murban crude futures contracts on Monday, offering a potential rival benchmark for trading Middle East crude.
“It is a great step to have the leading Abu-Dhabi oil grade traded freely around the globe. This ensures more transparency and reliability for traders and investors. Also, this will enable oil traders to hedge their exposures,” said Wael Makarem, market analyst at ICM.com.
As the volume picks up, the ICE Futures Abu Dhabi (IFAD) will become more remarkable and could open the way for further instruments that could serve investors, Makarem added.
Elsewhere, Gulf Pharmaceutical Industries (Julphar) soared 14%, extending gains from the previous session.
Julphar begun interim manufacturing of a vaccine from China’s Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.
Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.
Saudi Arabia’s benchmark index rose 0.2%, supported by a 9.9% surge in Saudi Electricity after it reported a sharp rise in full-year profit. (Full Story)
The utility also proposed a cash dividend of 0.70 riyal per share for the year 2020.
However, the index’s gains were capped by losses at Al Rajhi Bank, which went ex-dividend.
Dubai’s main share index added 0.2%, with its top bank Emirates NBD climbing 1.8%.
In Qatar, the index closed 0.6% higher, led by a 2.4% rise in lender Masraf Al Rayan.
The Abu Dhabi stock market ended higher on Tuesday, reaching its highest level since 2005, while the Saudi index was supported by utility company Saudi Electricity after it reported strong full-year earnings.
In Abu Dhabi, the index finished 1.5% higher, led by a 2.7% gain in telecoms firm Etisalat and a 1.3% increase in the country’s largest lender First Abu Dhabi Bank
Abu Dhabi, the capital of the United Arab Emirates, started trading a Murban crude futures contracts on Monday, offering a potential rival benchmark for trading Middle East crude.
“It is a great step to have the leading Abu-Dhabi oil grade traded freely around the globe. This ensures more transparency and reliability for traders and investors. Also, this will enable oil traders to hedge their exposures,” said Wael Makarem, market analyst at ICM.com.
As the volume picks up, the ICE Futures Abu Dhabi (IFAD) will become more remarkable and could open the way for further instruments that could serve investors, Makarem added.
Elsewhere, Gulf Pharmaceutical Industries (Julphar) soared 14%, extending gains from the previous session.
Julphar begun interim manufacturing of a vaccine from China’s Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.
Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.
Saudi Arabia’s benchmark index rose 0.2%, supported by a 9.9% surge in Saudi Electricity after it reported a sharp rise in full-year profit. (Full Story)
The utility also proposed a cash dividend of 0.70 riyal per share for the year 2020.
However, the index’s gains were capped by losses at Al Rajhi Bank, which went ex-dividend.
Dubai’s main share index added 0.2%, with its top bank Emirates NBD climbing 1.8%.
In Qatar, the index closed 0.6% higher, led by a 2.4% rise in lender Masraf Al Rayan.
OPEC+ Panel Revises Down Oil-Demand Estimate on Saudi Suggestion - Bloomberg
OPEC+ Panel Revises Down Oil-Demand Estimate on Saudi Suggestion - Bloomberg
A panel of OPEC+ technical experts agreed to revise down oil-demand estimates for 2021 after Saudi Arabia suggested that the figure looked too high, delegates said.
The move, which was also supported by Algeria, comes just days before the group meets to discuss production levels for May, and follows a recommendation from OPEC Secretary-General Mohammad Barkindo that the coalition should remain very cautious.
At the previous meeting, that sense of caution led to a surprise decision to maintain almost all of the cartel’s output curbs, instead of boosting production in anticipation of the economic recovery from the coronavirus pandemic. The Organization of Petroleum Exporting Countries and its allies believe that decision has since been vindicated.
While fuel demand in the U.S. has shown strong signs of a rebound, a resurgence of the virus has undermined the recovery elsewhere, convincing the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.
A panel of OPEC+ technical experts agreed to revise down oil-demand estimates for 2021 after Saudi Arabia suggested that the figure looked too high, delegates said.
The move, which was also supported by Algeria, comes just days before the group meets to discuss production levels for May, and follows a recommendation from OPEC Secretary-General Mohammad Barkindo that the coalition should remain very cautious.
At the previous meeting, that sense of caution led to a surprise decision to maintain almost all of the cartel’s output curbs, instead of boosting production in anticipation of the economic recovery from the coronavirus pandemic. The Organization of Petroleum Exporting Countries and its allies believe that decision has since been vindicated.
While fuel demand in the U.S. has shown strong signs of a rebound, a resurgence of the virus has undermined the recovery elsewhere, convincing the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.
#Saudi mall operator Arabian Centres gives initial guidance for dollar sukuk - document | Reuters
Saudi mall operator Arabian Centres gives initial guidance for dollar sukuk - document | Reuters
Saudi mall operator Arabian Centres on Tuesday gave initial price guidance of around 5.875% for 5-1/2-year U.S. dollar-denominated sukuk, or Islamic bonds, a document showed.
Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Kamco Invest and Warba Bank are arranging the deal, which is expected to be of benchmark size and launch later on Tuesday, the document from one of the banks showed.
Sources told Reuters earlier this month that Arabian Centres, which operates 21 shopping centres across Saudi Arabia, was planning a $500 million sukuk sale.
Saudi mall operator Arabian Centres on Tuesday gave initial price guidance of around 5.875% for 5-1/2-year U.S. dollar-denominated sukuk, or Islamic bonds, a document showed.
Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Kamco Invest and Warba Bank are arranging the deal, which is expected to be of benchmark size and launch later on Tuesday, the document from one of the banks showed.
Sources told Reuters earlier this month that Arabian Centres, which operates 21 shopping centres across Saudi Arabia, was planning a $500 million sukuk sale.
#SaudiArabia's PIF to underpin recovery of kingdom's construction sector | The National
Saudi Arabia's PIF to underpin recovery of kingdom's construction sector | The National
Saudi Arabia's construction sector is set to recover this year, benefiting from the Public Investment Fund's move to direct more funding to the local economy.
Contract awards in 2020 in the kingdom slumped by around 60 per cent to 79.5 billion Saudi riyals ($21.2bn) as project owners wrestled with movement restrictions to halt the spread of Covid-19, global supply chain disruptions and reductions in manpower capacity, according to the US-Saudi Business Council.
"As the global economy crawls back to a new normal, the role of the PIF will be instrumental in developing the local economy," the USSBC said.
The Arab world's largest economy increased spending by an additional $42bn in 2020 to deal with the impact of the pandemic. But capital expenditure was cut to $37bn, from a budgeted $46bn, which had a knock-on effect on construction.
Saudi Arabia's construction sector is set to recover this year, benefiting from the Public Investment Fund's move to direct more funding to the local economy.
Contract awards in 2020 in the kingdom slumped by around 60 per cent to 79.5 billion Saudi riyals ($21.2bn) as project owners wrestled with movement restrictions to halt the spread of Covid-19, global supply chain disruptions and reductions in manpower capacity, according to the US-Saudi Business Council.
"As the global economy crawls back to a new normal, the role of the PIF will be instrumental in developing the local economy," the USSBC said.
The Arab world's largest economy increased spending by an additional $42bn in 2020 to deal with the impact of the pandemic. But capital expenditure was cut to $37bn, from a budgeted $46bn, which had a knock-on effect on construction.
#Saudi wants OPEC+ to extend oil cuts into June, source says | Reuters
Saudi wants OPEC+ to extend oil cuts into June, source says | Reuters
Saudi Arabia is prepared to support extending oil cuts by OPEC and its allies into June and is also ready to prolong its own voluntary cuts to boost prices amid a new wave of coronavirus lockdowns, a source briefed on the matter said on Monday.
After steady oil price gains earlier this year, OPEC and its allies, known as OPEC+, had hoped to ease output cuts.
But a fresh wave of lockdowns to prevent a new surge in the virus has pushed oil off this year’s highs, and four OPEC+ sources told Reuters this would most likely encourage the group to extend cuts into May when it meets on Thursday.
The source briefed on the matter said on Monday that Saudi Arabia was keen to extend cuts beyond May and into June.
“They don’t see demand as yet strong enough and want to prevent prices from falling,” the source said.
Saudi Arabia is prepared to support extending oil cuts by OPEC and its allies into June and is also ready to prolong its own voluntary cuts to boost prices amid a new wave of coronavirus lockdowns, a source briefed on the matter said on Monday.
After steady oil price gains earlier this year, OPEC and its allies, known as OPEC+, had hoped to ease output cuts.
But a fresh wave of lockdowns to prevent a new surge in the virus has pushed oil off this year’s highs, and four OPEC+ sources told Reuters this would most likely encourage the group to extend cuts into May when it meets on Thursday.
The source briefed on the matter said on Monday that Saudi Arabia was keen to extend cuts beyond May and into June.
“They don’t see demand as yet strong enough and want to prevent prices from falling,” the source said.
#Dubai’s Top Bank Is Said to Raise Gulf’s First Sustainable Loan - Bloomberg
Dubai’s Top Bank Is Said to Raise Gulf’s First Sustainable Loan - Bloomberg
Emirates NBD PJSC is raising around $1.75 billion in the Gulf region’s first sustainability-linked loan to refinance existing debt, according to people with knowledge of the plans.
Dubai’s biggest bank has shaved off about 25 to 30 basis points in the overall cost of the three-year loan, two of the people said, asking not to be identified because the information is private. Emirates NBD’s existing three-year facility came at an all-inclusive cost of 97.5 basis points over Libor.
Nearly 20 banks are participating in the loan, the people said. Emirates NBD has linked sustainability metrics including gender diversity in top management roles and water conservation to the loan. A spokesperson for the Dubai lender declined to comment.
Sustainability-linked loans tie deal spreads to borrowers’ performance in environmental, social and governance goals that can be measured by key performance indicators or external ESG ratings. Such deals include so-called margin ratchets, which will see companies pay less if they hit specific goals, or more if they miss their targets.
Emirates NBD PJSC is raising around $1.75 billion in the Gulf region’s first sustainability-linked loan to refinance existing debt, according to people with knowledge of the plans.
Dubai’s biggest bank has shaved off about 25 to 30 basis points in the overall cost of the three-year loan, two of the people said, asking not to be identified because the information is private. Emirates NBD’s existing three-year facility came at an all-inclusive cost of 97.5 basis points over Libor.
Nearly 20 banks are participating in the loan, the people said. Emirates NBD has linked sustainability metrics including gender diversity in top management roles and water conservation to the loan. A spokesperson for the Dubai lender declined to comment.
Sustainability-linked loans tie deal spreads to borrowers’ performance in environmental, social and governance goals that can be measured by key performance indicators or external ESG ratings. Such deals include so-called margin ratchets, which will see companies pay less if they hit specific goals, or more if they miss their targets.
OPEC+ Readies for Output Talks With Cautious Approach Vindicated - Bloomberg
OPEC+ Readies for Output Talks With Cautious Approach Vindicated - Bloomberg
As OPEC and its allies prepare for another decision on oil output, the producers believe their defiantly cautious approach is paying off.
The coalition led by Saudi Arabia was widely criticized three weeks ago when it rebuffed calls to revive some of the crude production halted during the pandemic. Energy Minister Prince Abdulaziz bin Salman made clear that he wasn’t going to put his faith in predictions of a post-Covid rebound, saying he would only believe in the demand recovery “when I see it.”
Since then, fuel demand in the U.S. has shown strong signs of recovery. But a resurgence of the virus elsewhere has convinced the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.
“Prince Abdulaziz remains ever-concerned -- he’s unwilling to say that Covid is in the rear-view mirror,” said Helima Croft, chief commodities strategist at RBC Capital Markets. “More likely than not, we’re looking at a Saudi rollover of their production cut.”
As OPEC and its allies prepare for another decision on oil output, the producers believe their defiantly cautious approach is paying off.
The coalition led by Saudi Arabia was widely criticized three weeks ago when it rebuffed calls to revive some of the crude production halted during the pandemic. Energy Minister Prince Abdulaziz bin Salman made clear that he wasn’t going to put his faith in predictions of a post-Covid rebound, saying he would only believe in the demand recovery “when I see it.”
Since then, fuel demand in the U.S. has shown strong signs of recovery. But a resurgence of the virus elsewhere has convinced the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.
“Prince Abdulaziz remains ever-concerned -- he’s unwilling to say that Covid is in the rear-view mirror,” said Helima Croft, chief commodities strategist at RBC Capital Markets. “More likely than not, we’re looking at a Saudi rollover of their production cut.”
Big Oil's Secret World of Trading Fuels Profits as Climate Change Worries Rise - Bloomberg
Big Oil's Secret World of Trading Fuels Profits as Climate Change Worries Rise - Bloomberg
It was a bleak moment for the oil industry. U.S. shale companies were failing by the dozen. Petrostates were on the brink of bankruptcy. Texas roughnecks and Kuwaiti princes alike had watched helplessly for months as the commodity that was their lifeblood tumbled to prices that had until recently seemed unthinkable. Below $50 a barrel, then below $40, then below $30.
But inside the central London headquarters of one of the world’s largest oil companies, there was an air of calm. It was January 2016. Bob Dudley had been at the helm of BP Plc for six years. He ought to have had as much reason to panic as anyone in the rest of his industry. The unflashy American had been predicting lower prices for months. He was being proved right, though that was hardly a reason to celebrate.
Unlike most of his peers, Dudley was no passive observer. At the heart of BP, far removed from the sprawling network of oil fields, refineries, and service stations that the company is known for, sits a vast trading unit, combining the logistical prowess of an air traffic control center with the master-of-the-universe swagger of a macro hedge fund. And, unknown to all but a few company insiders, BP’s traders had spotted, in the teeth of the oil price collapse, an opportunity.
Over the course of 2015, Dudley had acquired a reputation as the oil industry’s Cassandra. Oil prices had been under pressure ever since Saudi Arabia launched a price war against U.S. shale producers a year earlier. When crude prices started falling, he confidently predicted they would remain “lower for longer.” A few months later, he went further. Oil prices, he said, were due to stay “lower for even longer.”
Oil Dips Near $61 With Traders Weighing Uneven Demand, OPEC Cuts - Bloomberg
Oil Dips Near $61 With Traders Weighing Uneven Demand, OPEC Cuts - Bloomberg
Oil dipped toward $61 a barrel in New York, following two days of gains, as traders weighed risks to the demand recovery ahead of OPEC+’s ministerial meeting this week.
West Texas Intermediate slid 0.7% after closing Monday at the highest in almost two weeks. While fuel consumption is rising in many parts of the world, risks remain, with the head of the U.S. Centers for Disease Control and Prevention warning of “impending doom” as cases and deaths in the country pick up.
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Oil dipped toward $61 a barrel in New York, following two days of gains, as traders weighed risks to the demand recovery ahead of OPEC+’s ministerial meeting this week.
West Texas Intermediate slid 0.7% after closing Monday at the highest in almost two weeks. While fuel consumption is rising in many parts of the world, risks remain, with the head of the U.S. Centers for Disease Control and Prevention warning of “impending doom” as cases and deaths in the country pick up.
S&P affirms ratings on top #UAE banks, revises outlook to stable | ZAWYA MENA Edition
S&P affirms ratings on top UAE banks, revises outlook to stable | ZAWYA MENA Edition
S&P Global Ratings on Tuesday affirmed its ratings on First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Sharjah Islamic Bank (SIB), and Mashreqbank (Mashreq). The outlook for all the banks were revised to stable from negative, the ratings agency said in a note.
S&P lowered the long-term issuer credit ratings on National Bank of Fujairah (NBF) to 'BBB' from 'BBB+' and revised the outlook on the bank to stable from negative.
The sharp economic contraction in 2020--and prospects of a protracted recovery in 2021 and beyond--will have varying effects on rated UAE banks, it said in a note.
“We expect the residential real estate sector will remain under pressure for at least another year or two because of continuous oversupply, while demand-driven weaknesses will hamper the tourism, hospitality, and aviation sectors, as well as some trading sectors. We therefore expect UAE banks' asset-quality indicators will continue to deteriorate in the next 12-24 months, as regulatory forbearance measures are gradually lifted, and that credit losses will likely remain elevated.”
S&P Global Ratings on Tuesday affirmed its ratings on First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Sharjah Islamic Bank (SIB), and Mashreqbank (Mashreq). The outlook for all the banks were revised to stable from negative, the ratings agency said in a note.
S&P lowered the long-term issuer credit ratings on National Bank of Fujairah (NBF) to 'BBB' from 'BBB+' and revised the outlook on the bank to stable from negative.
The sharp economic contraction in 2020--and prospects of a protracted recovery in 2021 and beyond--will have varying effects on rated UAE banks, it said in a note.
“We expect the residential real estate sector will remain under pressure for at least another year or two because of continuous oversupply, while demand-driven weaknesses will hamper the tourism, hospitality, and aviation sectors, as well as some trading sectors. We therefore expect UAE banks' asset-quality indicators will continue to deteriorate in the next 12-24 months, as regulatory forbearance measures are gradually lifted, and that credit losses will likely remain elevated.”
Oil gains as focus switches to OPEC+ extending output cuts | Reuters
Oil gains as focus switches to OPEC+ extending output cuts | Reuters
Oil prices rose on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and focus turned to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.
Brent crude was down 21 cents, or 0.3%, at $65.19 a barrel by 0411 GMT. U.S. oil was up 19 cents, or 0.3%, at $61.75 a barrel.
Ships were moving through the Suez Canal again on Tuesday after tugs refloated the giant Ever Given container carrier, which had been blocking a narrow section of the passage for almost a week, causing a huge build-up of vessels around the waterway.
With the likelihood that the disruption will prove minimal, the market is turning its focus to Thursday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia in Vienna, collectively known as OPEC+.
Oil prices rose on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and focus turned to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.
Brent crude was down 21 cents, or 0.3%, at $65.19 a barrel by 0411 GMT. U.S. oil was up 19 cents, or 0.3%, at $61.75 a barrel.
Ships were moving through the Suez Canal again on Tuesday after tugs refloated the giant Ever Given container carrier, which had been blocking a narrow section of the passage for almost a week, causing a huge build-up of vessels around the waterway.
With the likelihood that the disruption will prove minimal, the market is turning its focus to Thursday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia in Vienna, collectively known as OPEC+.
MIDEAST STOCKS- #AbuDhabi leads major Gulf markets higher | Nasdaq
MIDEAST STOCKS-Abu Dhabi leads major Gulf markets higher | Nasdaq
The Abu Dhabi stock market rose on Tuesday, boosted by a surge in pharmaceutical firm Julphar, while other major markets in the region were also firm in early trade.
Julphar begun interim manufacturing of a vaccine from China's Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.
Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.
In Abu Dhabi, the index .ADI gained 0.8%, buoyed by the 14% jump in Gulf Pharmaceutical Industries (Julphar) JULPHAR.AD, on track to extend gains from the previous session.
Saudi Arabia's benchmark index .TASI added 0.1%, helped by a 4.1% rise in Saudi Electricity 5110.SE after it reported a sharp rise in full-year profit.
The utility firm also proposed a cash dividend of 0.70 riyal per share for the year 2020.
However, the index's gains were capped by losses at Al Rajhi Bank 1120.SE, which went ex-dividend.
Dubai's main share index .DFMGI edged up 0.1%, with property developer Emaar Properties EMAR.DU advancing 0.9%.
Dubai Holding, the investment vehicle of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum, said on Monday it had partnered with five firms to develop a 4 billion dirham ($1.09 billion) energy-from-waste facility.
The Qatari index .QSI gained 0.5%, led by a 2.4% rise in sharia-compliant lender Masraf Al Rayan MARK.QA.
The Abu Dhabi stock market rose on Tuesday, boosted by a surge in pharmaceutical firm Julphar, while other major markets in the region were also firm in early trade.
Julphar begun interim manufacturing of a vaccine from China's Sinopharm, part of a joint venture between Sinopharm and Abu Dhabi-based G42.
Under the JV, a new main plant is being built in Abu Dhabi with production capacity of 200 million Hayat-Vax doses a year.
In Abu Dhabi, the index .ADI gained 0.8%, buoyed by the 14% jump in Gulf Pharmaceutical Industries (Julphar) JULPHAR.AD, on track to extend gains from the previous session.
Saudi Arabia's benchmark index .TASI added 0.1%, helped by a 4.1% rise in Saudi Electricity 5110.SE after it reported a sharp rise in full-year profit.
The utility firm also proposed a cash dividend of 0.70 riyal per share for the year 2020.
However, the index's gains were capped by losses at Al Rajhi Bank 1120.SE, which went ex-dividend.
Dubai's main share index .DFMGI edged up 0.1%, with property developer Emaar Properties EMAR.DU advancing 0.9%.
Dubai Holding, the investment vehicle of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum, said on Monday it had partnered with five firms to develop a 4 billion dirham ($1.09 billion) energy-from-waste facility.
The Qatari index .QSI gained 0.5%, led by a 2.4% rise in sharia-compliant lender Masraf Al Rayan MARK.QA.
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