Oil Slides With Lockdowns Spreading Ahead of OPEC+ Decision - Bloomberg close

Oil Slides With Lockdowns Spreading Ahead of OPEC+ Decision - Bloomberg

• West Texas Intermediate for May delivery fell $1.39 to settle at $59.16 a barrel, posting the largest daily loss since March 25
• Brent for May settlement slipped 60 cents to $63.54 a barrel ahead of the contract’s expiry later on Wednesday
• Brent for June delivery lost $1.43 to $62.74 a barrel

Oil fell the most in roughly a week after France announced it will start a month-long lockdown, while OPEC+ voiced its concerns about the strength of oil demand ahead of an expected decision this week on output.

Futures in New York fell 2.3% on Wednesday to the lowest in nearly a week, with French President Emmanuel Macron saying the pandemic is more dangerous than it was in the fall in his address to the nation. The deteriorating near-term demand picture in Europe offset a surprise oil supply draw in the U.S. and other bullish signals pointing toward rising demand as more Americans are vaccinated.

“The news out of France is very troubling for the petroleum complex,” said John Kilduff, a partner at Again Capital LLC. “The Covid situation worsening, particularly in Europe, represents a demand hit again, and it’s weighing on prices.”

Meanwhile, an OPEC+ panel meeting ended without a policy recommendation ahead of Thursday’s talks where the producer group will decide on production going forward. The OPEC+ alliance is debating whether to revive part of the 8 million barrels of daily output -- about 8% of global supply -- they’re withholding. OPEC Secretary-General Mohammad Barkindo pointed to the oil market’s recent volatility as “a reminder of the fragility facing economies and oil demand.”

#SaudiArabia’s crown prince looks to Aramco to lead investment plan | Financial Times

Saudi Arabia’s crown prince looks to Aramco to lead investment plan | Financial Times

Crown Prince Mohammed bin Salman is banking on Saudi Arabia’s largest listed companies, including Saudi Aramco, to invest $1.3tn in the kingdom over the next decade and urging them to reduce dividends as he tries to accelerate plans to diversify the oil-dependent economy. 

Prince Mohammed said more than 20 companies had agreed to be involved in his new initiative, with 60 per cent of the investment led by state oil giant Aramco, which listed on the local stock market in 2019, and Sabic, a petrochemicals company. 

“That will not harm the shareholders of those companies because instead of getting dividends in cash, you’re going to get growth in the stock market,” Prince Mohammed told reporters late on Tuesday. 

“What we’re trying to create is growth in Saudi Arabia: growth in GDP, more jobs in Saudi Arabia, more income to the Saudi government and a better life for Saudis,” he added.

#Saudi billionaire's investment firm posts $390m losses in 2020 - Arabianbusiness #KingdomHolding

Saudi billionaire's investment firm posts $390m losses in 2020 - Arabianbusiness

The investment firm of Saudi billionaire Prince Alwaleed bin Talal on Wednesday announced a net loss of SR1.46 billion ($390 million) for 2020.

Kingdom Holding Company said the loss compared to a net profit of SR420.2 million in 2019.

In a filing to the Saudi Tadawul stock market, Kingdom said the losses were attributed to lower share from equity-accounted investees, decreased hotel and other operating revenues, impairment of equity-accounted investee, and a drop in gains from investments.

The company also cited higher asset impairment, and increased Zakat expenses. Zakat is the compulsory giving of a set proportion of one's wealth to charity.

In August, the company said it was looking for deals in Europe because US assets, particularly technology stocks, were seen as overpriced.

#Saudi Aramco Shares Rise as Crown Prince MBS Prioritizes Spending Over Dividends - Bloomberg

Saudi Aramco Shares Rise as Crown Prince MBS Prioritizes Spending Over Dividends - Bloomberg

Saudi Aramco’s shares climbed after the government announced the oil giant could reduce its payouts to the state and redirect some of the cash to the local economy.

While the details were unclear, the move could alleviate pressure on Aramco’s balance sheet and free up some of the $73.5 billion of annual dividends it makes to the government, which owns 98% of the company. Payouts to minority shareholders, who get roughly $1.5 billion, will be maintained, the government said.

The world’s largest oil company has seen its debt levels soar in the last year due to the coronavirus-triggered collapse in energy prices and its $69 billion acquisition of chemicals maker Saudi Basic Industries Corp.

The Dhahran-based firm had to cut spending and borrow more to pay the $75 billion dividend in 2020. Free cash flow fell almost 40% to $49 billion, substantially below the level of the dividend.

Mubadala Seizes on 144% Stock Rally to Sell Stake in Top Builder - Bloomberg

Mubadala Seizes on 144% Stock Rally to Sell Stake in Top Builder - Bloomberg

Abu Dhabi wealth fund Mubadala Investment Co. sold a $950 million stake in Aldar Properties PJSC, cashing in on a surge in the developer’s shares after it was awarded contracts worth billions of dollars.

Mubadala, the $232 billion sovereign wealth fund, sold a 12% stake in Aldar to Alpha Dhabi Holding, a name little known to investors. Mubadala will remain the largest shareholder in the company, which is the biggest developer in the United Arab Emirates, with a 25% stake.

Aldar’s stock is up 144% over the past year after the company became the developer of choice for Abu Dhabi, which signed off on deals worth $12.3 billion in January. Its shares retreated 0.8% Wednesday, and are up 19% for the quarter.

“Mubadala’s ability to monetize part of the Aldar stake is good news,” said Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital Ltd. “The question is: will this strategic investor be dormant or will he be looking to change things. And in that case the fact Mubadala kept a large stake should be reassurance of continued government support for the developer.”

DAMAC delivered 32,000 units since 2002; market recovery will take 12-24 months - Hussain Sajwani | ZAWYA MENA Edition

DAMAC delivered 32,000 units since 2002; market recovery will take 12-24 months - Hussain Sajwani | ZAWYA MENA Edition

DAMAC chairman Hussain Sajwani has announced that his company has crossed the threshold of 32,000 units since inception. The leading Dubai-based developer also stated that recovery of the UAE real-estate market could take 12 to 24 months.

In a statement to the Dubai Financial Market (DFM), DAMAC confirmed it delivered 3,000 units in Akoya and Business Bay this year and that it had crossed the threshold into 32,000 units since its inception in 2020.

DAMAC Properties posted a 1.04 billion dirham ($283 million) net loss for 2020, as the COVID-19 pandemic hurt the property market. DAMAC posted a net loss of 37 million dirham in 2019.

According to Sajwani, 2020 had been a challenging year for the global economy, particularly travel and tourism.

“With the smart leadership of the UAE, we are in a far better position for economic recovery, although I still believe it will take 12-24 months for the real estate to fully recover,” he said.

The company’s total revenue in 2020 was AED 4.7 billion, up from AED 4.4 billion in 2019, but booked sales for the year were AED 2.3 billion, down from AED 3.1 billion in 2019.

Assets in 2020 were AED 21.1 billion, down from AED 23.8 billion in 2019.

OPEC oil output rises in March, led by #Iran - Reuters survey

OPEC oil output rises in March, led by Iran - Reuters survey

OPEC oil output has risen in March as higher supply from Iran countered reductions by other members under a pact with allies, a Reuters survey found, a headwind for its supply-limiting efforts if Tehran’s boost is sustained.

The 13-member Organization of the Petroleum Exporting Countries pumped 25.07 million barrels per day (bpd) in March, the survey found, up 180,000 bpd from February. Output has risen every month since June 2020 with the exception of February.

The rise in Iranian supply comes as OPEC and allies, known as OPEC+, have delayed unwinding more of their output cuts as the impact of the pandemic persists.

OPEC+ meets on Thursday and delegates expect most cuts will be kept.

“I can feel the cautious momentum,” one OPEC source said of Thursday’s meeting.

Oil topped $71 a barrel this month, the highest since before the pandemic, but has since fallen to about $64. A slow recovery in demand and rising Iranian exports have weighed on prices, analysts said.

MIDEAST STOCKS- #Saudi shares outperform on $1.3 trillion private investment push | Nasdaq

MIDEAST STOCKS-Saudi shares outperform on $1.3 trillion private investment push | Nasdaq

Saudi Arabia's stock market rose sharply on Wednesday, after the country announced a huge investment push led by Aramco and SABIC, while other major Gulf markets were mixed.

The kingdom's crown prince said oil firm Aramco and petrochemical firm SABIC would lead 5 trillion riyals ($1.3 trillion) of investments by the local private sector by 2030 under a programme announced on Tuesday for economic diversification.

This is part of 12 trillion riyals worth of investments planned by 2030, Crown Prince Mohammed bin Salman said in televised remarks.

Saudi Arabia's benchmark index .TASI advanced 2.8%, its biggest intraday gain since April last year, as all its banking shares traded higher except for one.

Al Rajhi Bank 1120.SE leapt 5.1%, while Saudi Basic Industries Corp (SABIC) 2010.SE climbed 5.6%. Saudi Aramco 2222.SE closed 2.7% higher.

In Dubai, the benchmark index .DFMGI eased 0.3%, hit by a 0.8% fall in blue-chip developer Emaar Properties EMAR.DU and a 2.4% slide in DAMAC Properties DAMAC.DU.

The Qatari index .QSI added 0.2%, with Commercial Bank COMB.QA rising 3.2%.

However, Aamal Company AHCS.QA declined over 5%, as the stock went ex-dividend.

Oil falls on OPEC+ concerns over slow demand recovery | Reuters

Oil falls on OPEC+ concerns over slow demand recovery | Reuters

Oil prices fell on Wednesday on concerns about the market’s recovery after OPEC and its allies lowered their 2021 demand growth forecast, although strong Chinese factory activities lent some support.

Brent crude for May, which expires on Wednesday, fell 49 cents, or 0.76%, to $63.65 a barrel at 1322 GMT. The more active Brent contract for June was down 53 cents, or 0.83%, at $63.64 a barrel.

U.S. West Texas Intermediate (WTI) crude futures fell 45 cents, or 0.74%, to $60.10 a barrel.

OPEC+ has lowered its oil demand growth forecast for this year by 300,000 barrels per day (bpd), a report from its experts panel meeting seen by Reuters showed.

The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are set to meet on Thursday, to decide on output policy.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#Dubai stocks snap their run of gains as #AbuDhabi moves little | Markets – Gulf News

Dubai stocks snap their run of gains as Abu Dhabi moves little | Markets – Gulf News

Dubai stocks headed lower and Abu Dhabi index closed the day little changed as the markets took a breather after three days of back-to-back gains lured investors into profit-booking.


Dubai Financial Market traded 0.5 per cent higher at its peak during the session before moving downward to close the day lower by 0.3 per cent at 2,550 points. The drop comes after the last three consecutive days of gains coupled with morning advances helped the index appreciate an aggregate 3 per cent. The back-to-back gains proved enough to lure investors into encashing their positions in their quest for safe play in a volatile situation as the pandemic is still far from over.

Europe’s Depleted Gas Storage Is Traders’ Hot Spot This Summer - Bloomberg

Europe’s Depleted Gas Storage Is Traders’ Hot Spot This Summer - Bloomberg

A widening natural gas storage gap in Europe is capturing the attention of traders, who expect the world’s biggest exporters to begin jostling to refill fuel depots depleted by the continent’s harsh winter.

Gas storage is critical for blunting spikes in demand and smoothing price volatility during extreme weather and disruptions to supply. Europe’s cold winter left facilities about 25 billion cubic meters below last year’s levels -- a volume of fuel equivalent to nearly third of annual consumption in Germany, the region’s biggest user.

“The trend is clear,” according Niek van Kouteren, a senior trader at Dutch energy company PZEM NV. Suppliers from Moscow to Houston “will have room to take advantage of the momentum,” he said.

Booming summer demand will support shipments from Russia, Norway, Qatar and the U.S. Almost 60% more gas than last year will be needed to refill inventories after cooler March weather across Europe kept demand elevated. Filling the storage gap before next heating season is expected to benefit both pipeline exporters like Gazprom PJSC, as well as liquefied natural gas players such as Texas-based Cheniere Energy Inc.

#Israel's Delek Group sees record Q4 profit on Ithaca revaluation | Reuters

Israel's Delek Group sees record Q4 profit on Ithaca revaluation | Reuters

Israel’s Delek Group on Wednesday reported a record profit in the fourth quarter on strong revenue and a boost in the value of its North Sea unit Ithaca.

Net profit rose to about 1.1 billion shekels ($330 million) for the October-December quarter, up from 311 million a year earlier.

Revenue rose to 1.63 billion shekels from 1.4 billion.

Alpha Dhabi unit buys $953 million stake in Aldar from Mubadala | Reuters

Alpha Dhabi unit buys $953 million stake in Aldar from Mubadala | Reuters

Abu Dhabi state fund Mubadala has sold a 3.5 billion dirham ($953 million) stake in property developer Aldar to a subsidiary of investment firm Alpha Dhabi Holding, the fund said in a statement on Wednesday.

The subsidiary, Sublime Commercial Investment, acquired a 12.21% strategic stake in Aldar, the statement said. Mubadala will remain Aldar’s largest shareholder with 25%, it said.

“Institutional investor interest in Aldar reflects confidence in the Abu Dhabi real estate sector and Aldar’s central role in implementing the Emirate’s economic diversification strategy,” the statement said.

OPEC cuts, vaccines to sustain oil's recovery: Reuters poll | Reuters

OPEC cuts, vaccines to sustain oil's recovery: Reuters poll | Reuters

Oil prices will stabilise above $60 a barrel level this year, as vaccine rollouts support a demand recovery and OPEC and its allies continue to rein in supply, a Reuters poll showed on Wednesday.

The survey of 48 participants forecast Brent would average $63.12 per barrel in 2021, up from last month’s consensus of $59.07 and the average price so far this year of $59.36.

The benchmark was trading close to $64 on Wednesday.

“With vaccinations expected to gain pace and OPEC+ likely to keep to a cautious approach — reducing production cuts when demand recovers — we expect oil inventories to normalise by mid-year, which should support prices,” said UBS analyst Giovanni Staunovo.

Oil demand was seen growing by 5 million-7 million barrels per day (bpd) this year, despite renewed COVID-19 lockdowns in Europe.

#Saudi Unemployment Falls in Fourth Quarter As Virus Slows - Bloomberg

Saudi Unemployment Falls in Fourth Quarter As Virus Slows - Bloomberg

Unemployment among Saudi nationals fell to 12.6% in the fourth quarter as coronavirus cases in the kingdom declined and business began to pick up.

That compares to 14.9% in the third quarter. Joblessness among Saudi men reached 7.1%, while 24.4% of Saudi women were without jobs.

Job creation is the biggest domestic challenge facing Saudi Crown Prince Mohammed bin Salman as he reshapes an economy long dependent on exported oil and imported labor. Unemployment among Saudi nationals hit a record high of 15.4% last year, when the Covid-19 pandemic set back the de facto ruler’s Vision 2030 plan to transform the world’s largest oil exporter into a regional business and tourism hub.

Coronavirus cases in the kingdom peaked last summer, then gradually decreased over the third and fourth quarters as the government eased restrictions on gatherings and businesses. Gross domestic product grew 2.5% in the fourth quarter compared to the previous three months, though it shrank 3.9% compared to the same period in 2019 -- dragged down by a contraction in the oil sector.

Foreigners comprise about a third of the 34 million-strong population. The government is the main employer of Saudis -- a model it can’t afford to sustain -- while the rest of the economy relies on cheap labor from Asian and other Arab countries. Three-quarters of private sector workers are foreigners.

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, signaling a more negative view of the market just days before the group decides on production policy.

The OPEC+ Joint Technical Committee now estimates that global oil demand will expand by 5.6 million barrels a day this year, down from 5.9 million previously, according to delegates and documents seen by Bloomberg.

The revision, which mainly affects the next few months, follows a recommendation from OPEC Secretary-General Mohammad Barkindo earlier on Tuesday that the coalition should remain very cautious.

#Saudi Firms to Cut Dividends For Prince’s $1.3 Trillion Plan - Bloomberg

Saudi Firms to Cut Dividends For Prince’s $1.3 Trillion Plan - Bloomberg

Saudi Arabia’s biggest listed companies, including energy giant Aramco, will reduce their dividends and redirect the money to the local economy as the crown prince tries to get his economic overhaul plan back on track.

Minority shareholders of Aramco -- the world’s biggest oil company and 98% owned by the kingdom -- will still get dividends, Mohammed bin Salman, the kingdom’s de facto leader, said. Investors in other firms will profit because stock prices will rise as the extra investment boosts the economy, he said.

Twenty-four firms such as Saudi Basic Industries Corp., Almarai Co., Saudi Telecom Co. and National Shipping Co. have agreed to join the plan, contributing 5 trillion riyals ($1.33 trillion) of domestic capital spending over the next 10 years, he said.

The new plan comes after last year’s coronavirus pandemic and oil market turmoil created a double crisis for Saudi Arabia, setting back the 35-year-old’s goals to boost the non-oil economy and slash unemployment.

#Saudi shares gain ahead of OPEC+ meeting; other markets little changed | Reuters

Saudi shares gain ahead of OPEC+ meeting; other markets little changed | Reuters

Saudi Arabia’s stock market rose sharply on Wednesday, amid rising oil prices as investors bet OPEC and its allies would largely agree to extend their supply curbs, while other major Gulf markets were little changed in early trade.

The kingdom’s benchmark index advanced 1.5%, buoyed by a 2% rise in Al Rajhi Bank and a 2.5% increase in petrochemical maker Saudi Basic Industries.

OPEC and its allies, together called OPEC+, are set to meet on Thursday, following a month in which oil prices have whipsawed on concerns about extended pandemic lockdowns in Europe, slow vaccine rollouts and rising COVID-19 cases in India and Brazil, pitted against growing optimism on growth in the United States.

Saudi Arabia, the de facto leader of OPEC, is prepared to back an extension of the supply cuts into June, including its own voluntary cut, to boost prices, a source briefed on the matter told Reuters this week.

Oil prices, which are the key catalyst for the Gulf’s financial markets, rose 46 cents, or 0.7%, to $64.60 a barrel at 0635 GMT, after falling 1.3% on Tuesday. [O/R]

Dubai’s main share index eased 0.1%, hit by a 0.4% fall in top lender Emirates NBD.

In Qatar, the benchmark added 0.3%, with Qatar Islamic Bank gaining 0.8%.

Oil prices gain on expectations OPEC+ will keep lid on output | Reuters

Oil prices gain on expectations OPEC+ will keep lid on output | Reuters

Oil prices rose on the eve of meeting between OPEC and its allies, as investors were betting the producers would largely agree to extend their supply curbs into May.

OPEC+ has raised concerns that rising numbers of coronavirus infections globally and lockdown measures will impact the recovery in demand for oil, according to a report from the group’s experts panel meeting seen by Reuters.

Brent crude futures for May, which expires on Wednesday, rose 32 cents, or 0.5%, to $64.46 a barrel at 0525 GMT, after falling 1.3% on Tuesday. The more active Brent contract for June was up 25 cents, or 0.4%, at $64.42 a barrel.

The benchmark has shed 2.5% so far this month, compared with a 18% rise in February.

U.S. West Texas Intermediate (WTI) crude futures climbed 26 cents, or 0.4%, to $60.81 a barrel, after falling 1.6% in the previous session.

Once heroes, India's ex-Gulf workers forge new futures | Reuters

Once heroes, India's ex-Gulf workers forge new futures | Reuters

It is not yet dawn but Yeroor village is long awake, the hum of productivity floating over ‘Gulf Street’, a lush green boulevard named for the thousands of workers who leave the southern Indian state of Kerala every year for jobs in the Middle East.

But now the workers are back, from machine operator Sudheesh Kumar, who has been forced back into manual labour in Yeroor to make ends meet, to former banker Binoj Kuttappan, who has taken up dog breeding in the state capital Thiruvananthapuram.

In the single biggest reverse migration in more than 50 years, workers from the Gulf have streamed back to the coastal state of Kerala in the past year, propelled by a pandemic that deflated dreams of overseas riches and changing family fortunes.

Whilst once they came home wealthy and revered, bearing gold, sunglasses, clothes and funds to buy homes, now they have returned sheepish and penniless.

“Prior to COVID, they were celebrated as heroes. Now they have nothing,” said Irudaya Rajan, a professor who has studied migration patterns in Kerala, India’s southernmost state.

#SaudiArabia's bourse invites banks to pitch for roles in its upcoming IPO: sources | Reuters

Saudi Arabia's bourse invites banks to pitch for roles in its upcoming IPO: sources | Reuters

Saudi Arabia’s bourse, Tadawul, has invited banks to pitch for roles in its highly-anticipated flotation, three sources told Reuters on Wednesday.

With a market capitalisation of $2.5 trillion, Tadawul is the Arab world’s largest stock exchange.

Tadawul hired HSBC in 2016 to manage an initial public offering (IPO) initially planned for 2018 but put that on hold due to oil giant Saudi Aramco’s record $29.4 billion listing at the end of 2019.

A request for proposals (RFP) was sent to a number of international and local banks to determine their roles for the bourse’s upcoming share offering, said the sources, declining to be named as the matter is not public.