Boris Johnson Names Edward Lister Special Gulf Envoy to Drive Investment - Bloomberg
U.K. Prime Minister Boris Johnson named Edward Lister, one of his longest serving advisers, as his new special envoy for the Gulf and special projects.
The role will “support the delivery of the prime minister’s ambitions for the U.K.’s relations with the Gulf,”’ according to an emailed statement from the Prime Minister’s Press Office. It includes strengthening links with the region to drive investment in the U.K., and promoting foreign policy priorities and regional stability.
Lister, who will take up his appointment on February 22, will report to the prime minister and work closely with the foreign secretary, secretary of state for international trade and the national security adviser.
Friday, 12 February 2021
Oil edges higher on U.S. stimulus hopes, tighter supplies | Reuters
Oil edges higher on U.S. stimulus hopes, tighter supplies | Reuters
Oil prices climbed more than 2% on Friday, hitting the highest levels in more than a year on hopes a U.S. stimulus will boost the economy and fuel demand, as supplies tighten due largely to output cuts by top producing countries.
Brent crude settled up $1.29, or 2.1%, at $62.43 a barrel by 1:32 p.m. ET (1832 GMT) after rising to a session high of $62.83, the highest since Jan. 22, 2020. U.S. oil ended the session up $1.23, or 2.1%, at $59.47 after rising to a session high of $59.82, the highest since Jan. 9, 2020.
U.S. crude notched a weekly gain of about 4.7% while Brent rose 5.3% on the week.
U.S. President Joe Biden will meet with a bipartisan group of mayors and governors as he keeps pushing for approval of a $1.9 trillion coronavirus relief plan to bolster economic growth and help millions of unemployed workers.
Oil prices climbed more than 2% on Friday, hitting the highest levels in more than a year on hopes a U.S. stimulus will boost the economy and fuel demand, as supplies tighten due largely to output cuts by top producing countries.
Brent crude settled up $1.29, or 2.1%, at $62.43 a barrel by 1:32 p.m. ET (1832 GMT) after rising to a session high of $62.83, the highest since Jan. 22, 2020. U.S. oil ended the session up $1.23, or 2.1%, at $59.47 after rising to a session high of $59.82, the highest since Jan. 9, 2020.
U.S. crude notched a weekly gain of about 4.7% while Brent rose 5.3% on the week.
U.S. President Joe Biden will meet with a bipartisan group of mayors and governors as he keeps pushing for approval of a $1.9 trillion coronavirus relief plan to bolster economic growth and help millions of unemployed workers.
#Oman Air Flights Expansion Plan Scrapped, to Focus on Code-Share - Bloomberg
Oman Air Flights Expansion Plan Scrapped, to Focus on Code-Share - Bloomberg
Oman Air, the state-run carrier, has abandoned a planned expansion and now aims to reduce its fleet and focus more on code-sharing with other airlines as restrictions to curb the pandemic slash demand for flights.
“Going to 70 aircraft, the risks would have been quite high for the country and the airline,” company chairman Mohammed Al-Barwani told local website WAF Oman. Instead the carrier will target a fleet of 36 planes, down from the current 50.
Last month, Oman decided to dissolve its air transportation services company, Oman Aviation Group, and divide its operations between the national carrier and the country’s airport management firm.
Oman Air, the state-run carrier, has abandoned a planned expansion and now aims to reduce its fleet and focus more on code-sharing with other airlines as restrictions to curb the pandemic slash demand for flights.
“Going to 70 aircraft, the risks would have been quite high for the country and the airline,” company chairman Mohammed Al-Barwani told local website WAF Oman. Instead the carrier will target a fleet of 36 planes, down from the current 50.
Last month, Oman decided to dissolve its air transportation services company, Oman Aviation Group, and divide its operations between the national carrier and the country’s airport management firm.
Oil’s Red-Hot Rally Fizzles With Virus Continuing Hold on Market - Bloomberg
Oil’s Red-Hot Rally Fizzles With Virus Continuing Hold on Market - Bloomberg
Oil slipped below $58 a barrel as a recent rally fizzled with the Covid-19 pandemic continuing to weigh on the demand outlook and as one technical indicator signaled prices may have climbed too far, too fast.
Futures in New York fell for a second session on Friday after surging more than 12% for the longest run of gains in two years. The enduring outbreak continues to crimp fuel consumption from China to the U.S., with the International Energy Agency cutting its demand forecast for 2021 and describing the market as fragile. The U.S. government earlier this week also predicted the nation’s petroleum demand will likely need much more time to recover.
Despite the bearish sentiment, oil is still set to eke out a weekly gain and some are optimistic on the longer term outlook, including the IEA. The market is tightening, traders such as Trafigura Group see prices moving higher, and Citigroup Inc. is predicting Brent crude may hit $70 a barrel by year-end.
Oil slipped below $58 a barrel as a recent rally fizzled with the Covid-19 pandemic continuing to weigh on the demand outlook and as one technical indicator signaled prices may have climbed too far, too fast.
Futures in New York fell for a second session on Friday after surging more than 12% for the longest run of gains in two years. The enduring outbreak continues to crimp fuel consumption from China to the U.S., with the International Energy Agency cutting its demand forecast for 2021 and describing the market as fragile. The U.S. government earlier this week also predicted the nation’s petroleum demand will likely need much more time to recover.
Despite the bearish sentiment, oil is still set to eke out a weekly gain and some are optimistic on the longer term outlook, including the IEA. The market is tightening, traders such as Trafigura Group see prices moving higher, and Citigroup Inc. is predicting Brent crude may hit $70 a barrel by year-end.
Oil loses more steam after OPEC reduced demand forecast | Reuters
Oil loses more steam after OPEC reduced demand forecast | Reuters
Oil prices dropped for a second day on Friday, pulling further back from a one-year high after OPEC again lowered its demand forecast and the International Energy Agency said the market was still over-supplied.
Brent crude was down 39 cents, or 0.6% at $60.75 a barrel by 0743 GMT, having dropped half a percent the previous session. U.S. oil was down 44 cents, or 0.8% at $57.80 a barrel, after falling by 0.8% on Thursday.
Both benchmarks closed on Wednesday at their highest levels since January 2020 after a nearly record-setting run of consecutive daily gains.
Oil prices have risen over the last few weeks as OPEC and other producers in the group known as OPEC+ cut production, while Saudi Arabia also promised unilateral reductions in output that started this month.
“OPEC production is likely to fall this month led by declines in Saudi Arabia and Libya. This should deepen the global market deficit and support prices,” said Capital Economics.
Oil prices dropped for a second day on Friday, pulling further back from a one-year high after OPEC again lowered its demand forecast and the International Energy Agency said the market was still over-supplied.
Brent crude was down 39 cents, or 0.6% at $60.75 a barrel by 0743 GMT, having dropped half a percent the previous session. U.S. oil was down 44 cents, or 0.8% at $57.80 a barrel, after falling by 0.8% on Thursday.
Both benchmarks closed on Wednesday at their highest levels since January 2020 after a nearly record-setting run of consecutive daily gains.
Oil prices have risen over the last few weeks as OPEC and other producers in the group known as OPEC+ cut production, while Saudi Arabia also promised unilateral reductions in output that started this month.
“OPEC production is likely to fall this month led by declines in Saudi Arabia and Libya. This should deepen the global market deficit and support prices,” said Capital Economics.
Thursday, 11 February 2021
Oil eases after record rally as OPEC, IEA fret about demand | Reuters
Oil eases after record rally as OPEC, IEA fret about demand | Reuters
Oil prices eased on Thursday, ending a record streak of gains, after both OPEC and the International Energy Agency (IEA) said renewed lockdowns and the emergence of new coronavirus variants reduced the prospect of a swift demand recovery.
Brent futures fell 33 cents, or 0.5%, to settle at $61.14 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 44 cents, or 0.8%, to settle at $58.24.
On Wednesday, Brent rose for its ninth straight session, tying the benchmark’s record winning streak last hit in January 2019. It was also hit in April and September of 2007. WTI marked its eighth consecutive day of gains, its longest such streak since January 2019.
Both benchmarks closed on Wednesday at their highest levels since January 2020, and on Thursday remained in overbought territory with a Relative Strength Index (RSI) over 70 for an eighth day in a row.
Oil prices eased on Thursday, ending a record streak of gains, after both OPEC and the International Energy Agency (IEA) said renewed lockdowns and the emergence of new coronavirus variants reduced the prospect of a swift demand recovery.
Brent futures fell 33 cents, or 0.5%, to settle at $61.14 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 44 cents, or 0.8%, to settle at $58.24.
On Wednesday, Brent rose for its ninth straight session, tying the benchmark’s record winning streak last hit in January 2019. It was also hit in April and September of 2007. WTI marked its eighth consecutive day of gains, its longest such streak since January 2019.
Both benchmarks closed on Wednesday at their highest levels since January 2020, and on Thursday remained in overbought territory with a Relative Strength Index (RSI) over 70 for an eighth day in a row.
Oil Snaps Eight-Day Rally After Cut in Global Demand Outlook - Bloomberg
Oil Snaps Eight-Day Rally After Cut in Global Demand Outlook - Bloomberg
Oil’s longest winning streak in two years lost momentum following the International Energy Agency’s bleaker outlook for global demand and signs that futures were overbought.
Prices in New York declined less than 1% on Thursday after rising for eight straight days. The IEA said the re-balancing of the global oil markets remains “fragile” and cut its forecasts for world oil consumption in 2021 as the pandemic continues to limit travel and economic activity. Still, the market’s prospects look stronger in the second half of the year, and swollen oil inventories will drop sharply as fuel use picks up.
“Crude has shown some really strong gains,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. But “there’s some questions as to whether or not these levels can be maintained” amid uncertainty over the demand recovery and the ability to keep supply in check.
Oil’s longest winning streak in two years lost momentum following the International Energy Agency’s bleaker outlook for global demand and signs that futures were overbought.
Prices in New York declined less than 1% on Thursday after rising for eight straight days. The IEA said the re-balancing of the global oil markets remains “fragile” and cut its forecasts for world oil consumption in 2021 as the pandemic continues to limit travel and economic activity. Still, the market’s prospects look stronger in the second half of the year, and swollen oil inventories will drop sharply as fuel use picks up.
“Crude has shown some really strong gains,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. But “there’s some questions as to whether or not these levels can be maintained” amid uncertainty over the demand recovery and the ability to keep supply in check.
OPEC again cuts 2021 oil demand view, sees second half pickup | Reuters
OPEC again cuts 2021 oil demand view, sees second half pickup | Reuters
World oil demand in 2021 will rebound more slowly than previously thought, OPEC said on Thursday, adding to a series of downgrades as the impact of the pandemic lingers.
Demand will rise by 5.79 million barrels per day (bpd) this year to 96.05 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report, trimming its growth forecast by 110,000 bpd from a month ago.
The prospect of weaker demand has already prompted OPEC and its allies, known as OPEC+, to slow their plan to boost output. More demand, rising prices and lower rival supply could support the case for more easing, but Iraq said on Wednesday OPEC+ was likely to keep current cuts in March.
“While the global economy is showing signs of a healthy recovery in 2021, oil demand is currently lagging, but is forecast to pick up in the second half of 2021,” OPEC said in the report.
OPEC has steadily lowered its 2021 oil demand growth forecast from 7 million bpd expected in July. Still, the latest forecast is stronger than the prediction made in an internal OPEC report seen this month by Reuters.
World oil demand in 2021 will rebound more slowly than previously thought, OPEC said on Thursday, adding to a series of downgrades as the impact of the pandemic lingers.
Demand will rise by 5.79 million barrels per day (bpd) this year to 96.05 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report, trimming its growth forecast by 110,000 bpd from a month ago.
The prospect of weaker demand has already prompted OPEC and its allies, known as OPEC+, to slow their plan to boost output. More demand, rising prices and lower rival supply could support the case for more easing, but Iraq said on Wednesday OPEC+ was likely to keep current cuts in March.
“While the global economy is showing signs of a healthy recovery in 2021, oil demand is currently lagging, but is forecast to pick up in the second half of 2021,” OPEC said in the report.
OPEC has steadily lowered its 2021 oil demand growth forecast from 7 million bpd expected in July. Still, the latest forecast is stronger than the prediction made in an internal OPEC report seen this month by Reuters.
Most of Gulf flat; #Saudi index rises | Reuters
Most of Gulf flat; Saudi index rises | Reuters
Most stock markets in the Gulf ended steady on Thursday in the absence of any fresh index-moving catalysts, although Saudi index extended gains for a sixth consecutive session.
Saudi Arabia’s benchmark index rose 0.5%, with Al Rajhi Bank gaining 0.9% and Saudi Arabian Mining Company advancing 2.6%.
The index also managed to close the week 3.8% firmer.
The kingdom’s economy shrank by 3.8% in the fourth quarter compared with the same period a year earlier, preliminary government data showed on Wednesday, but it grew 2.8% on a quarterly basis.
Oil prices, a key catalyst for financial markets in the Gulf region, fell as renewed lockdowns and the emergence of new coronavirus variants weighed on the prospects for a swift demand recovery. [O/R]
Brent crude lost 52 cents, or 0.9%, to $60.95 a barrel by 1122 GMT.
Dubai’s main share index edged up 0.1%, helped by a 0.4% rise in Emirates NBD Bank and a 1.3% increase in the diversified Gulf-based investment group Dubai Investments.
The index’s gains, however, were curbed by losses at blue-chip developer Emaar Properties, which retreated 1.3%.
In Abu Dhabi, the index finished flat, with telecoms giant Etisalat rising 0.4%, ahead of its earnings.
The Qatari index eased 0.1%, hit by a 0.7% fall in petrochemical firm Industries Qatar.
Qatar Petroleum has set the March official selling price (OSP) for its Marine crude at 65 cents a barrel above the average of Platts Oman and Dubai quotes, down 5 cents from the previous month, a pricing document showed on Thursday.
Most stock markets in the Gulf ended steady on Thursday in the absence of any fresh index-moving catalysts, although Saudi index extended gains for a sixth consecutive session.
Saudi Arabia’s benchmark index rose 0.5%, with Al Rajhi Bank gaining 0.9% and Saudi Arabian Mining Company advancing 2.6%.
The index also managed to close the week 3.8% firmer.
The kingdom’s economy shrank by 3.8% in the fourth quarter compared with the same period a year earlier, preliminary government data showed on Wednesday, but it grew 2.8% on a quarterly basis.
Oil prices, a key catalyst for financial markets in the Gulf region, fell as renewed lockdowns and the emergence of new coronavirus variants weighed on the prospects for a swift demand recovery. [O/R]
Brent crude lost 52 cents, or 0.9%, to $60.95 a barrel by 1122 GMT.
Dubai’s main share index edged up 0.1%, helped by a 0.4% rise in Emirates NBD Bank and a 1.3% increase in the diversified Gulf-based investment group Dubai Investments.
The index’s gains, however, were curbed by losses at blue-chip developer Emaar Properties, which retreated 1.3%.
In Abu Dhabi, the index finished flat, with telecoms giant Etisalat rising 0.4%, ahead of its earnings.
The Qatari index eased 0.1%, hit by a 0.7% fall in petrochemical firm Industries Qatar.
Qatar Petroleum has set the March official selling price (OSP) for its Marine crude at 65 cents a barrel above the average of Platts Oman and Dubai quotes, down 5 cents from the previous month, a pricing document showed on Thursday.
#UAE hospital operator NMC keeps revenues and earnings in check in toughest year ever | Markets – Gulf News
UAE hospital operator NMC keeps revenues and earnings in check in toughest year ever | Markets – Gulf News
NMC Healthcare, the UAE’s biggest privately owned hospital operator, recorded revenues of $1.121 billion, more or less unchanged from $1.203 billion in 2019.
Even more encouraging, earnings before interest and tax were at $87.6 million, which in a year marked by COVID-19 and all the distractions following the diversion of billions of dollars by the previous management. In 2019, the operator had earnings before tax of $101 million.
It served more than 5 million patients across its network during 2020.
The results will give more strength to securing a longer term future for NMC, which in April last was placed under administration. A strategy is being devised that will see NMC shed some or all of its non-core assets, while trying to retain its status as the leading private healthcare operator in the UAE.
NMC Healthcare, the UAE’s biggest privately owned hospital operator, recorded revenues of $1.121 billion, more or less unchanged from $1.203 billion in 2019.
Even more encouraging, earnings before interest and tax were at $87.6 million, which in a year marked by COVID-19 and all the distractions following the diversion of billions of dollars by the previous management. In 2019, the operator had earnings before tax of $101 million.
It served more than 5 million patients across its network during 2020.
The results will give more strength to securing a longer term future for NMC, which in April last was placed under administration. A strategy is being devised that will see NMC shed some or all of its non-core assets, while trying to retain its status as the leading private healthcare operator in the UAE.
#Dubai mortgage lender Amlak's 2020 losses widen to Dh437.98m | Property – Gulf News
Dubai mortgage lender Amlak's 2020 losses widen to Dh437.98m | Property – Gulf News
Net losses at the Dubai home financing company widened to Dh437.98 million from Dh319.78 million in 2019. Revenues grew marginally during the period to Dh282.75 million from Dh278.57 million.
Amlak, which recorded accumulated losses of Dh1.8 billion as of end June 2020, saw its total assets slip to Dh3.99 billion end of last year from Dh5.3 billion.
Amlak’s numbers mirror the difficult phase Dubai’s real estate is passing through, as offplan launches shrink and developers rely on post-handover payment plans to bring their inventory down. Multiple reports have spoken about interest for mortgage-backed sales in the second-half of last year, but the space has become quite competitive with multiple lenders in the fray.
Net losses at the Dubai home financing company widened to Dh437.98 million from Dh319.78 million in 2019. Revenues grew marginally during the period to Dh282.75 million from Dh278.57 million.
Amlak, which recorded accumulated losses of Dh1.8 billion as of end June 2020, saw its total assets slip to Dh3.99 billion end of last year from Dh5.3 billion.
Amlak’s numbers mirror the difficult phase Dubai’s real estate is passing through, as offplan launches shrink and developers rely on post-handover payment plans to bring their inventory down. Multiple reports have spoken about interest for mortgage-backed sales in the second-half of last year, but the space has become quite competitive with multiple lenders in the fray.
#Kuwait Pension Fund Had Record Asset Gain, Braces for Volatility - Bloomberg
Kuwait Pension Fund Had Record Asset Gain, Braces for Volatility - Bloomberg
Kuwait’s Public Institution for Social Security had its best performance ever in the first nine months of the fiscal year and said it’s prepared for any volatility in global markets going forward.
The $132 billion pension fund, which owns a quarter of U.S. private equity firm Stone Point Capital LLC, recorded 19.4% growth in assets during the nine months, it said in a statement on Wednesday. Investment profits in the three months to Dec. 31 soared to $6.8 billion, a gain of 44.3% on the previous quarter.
A new management team was brought into the fund in 2017 to transform the state-owned institution after its former head was found guilty of personally profiting from the organization over decades. The fund has since exited more than $20 billion in questionable deals in a major reorganization of its portfolio.
While 2020 witnessed a year of record growth, “it’s expected, in the medium-term, that we witness fluctuations in the international stock markets,” said Raed Al-Nisf, deputy director general for investment and operations. “The executive management follows a conservative and long-term investment strategy capable of absorbing and overcoming market fluctuations.”
PIFSS, as the fund is known, also owns 25% of Oak Hill Advisors and 10% of TowerBrook Capital Partners LP.
Kuwait’s Public Institution for Social Security had its best performance ever in the first nine months of the fiscal year and said it’s prepared for any volatility in global markets going forward.
The $132 billion pension fund, which owns a quarter of U.S. private equity firm Stone Point Capital LLC, recorded 19.4% growth in assets during the nine months, it said in a statement on Wednesday. Investment profits in the three months to Dec. 31 soared to $6.8 billion, a gain of 44.3% on the previous quarter.
A new management team was brought into the fund in 2017 to transform the state-owned institution after its former head was found guilty of personally profiting from the organization over decades. The fund has since exited more than $20 billion in questionable deals in a major reorganization of its portfolio.
While 2020 witnessed a year of record growth, “it’s expected, in the medium-term, that we witness fluctuations in the international stock markets,” said Raed Al-Nisf, deputy director general for investment and operations. “The executive management follows a conservative and long-term investment strategy capable of absorbing and overcoming market fluctuations.”
PIFSS, as the fund is known, also owns 25% of Oak Hill Advisors and 10% of TowerBrook Capital Partners LP.
Clariant CFO: Looking To Turn Page On Turbulent SABIC Relations - radio
Clariant CFO: Looking To Turn Page On Turbulent SABIC Relations
Swiss specialty-chemicals maker Clariant has resolved all issues with anchor investor Saudi Basic Industries Corp - that had led to the sudden departure of its long-standing Chairman Hariolf Kottmann - CFO Stephan Lynen tells Daybreak Europe's Caroline Hepker and Roger Hearing. Lynen says guidance for the first quarter is similar to the last part of 2020, reflecting the decline in demand for oil and the pandemic effect on aviation.
Oil Rally Risks Reverse If Idle Fields Return, Dana Gas Says - Bloomberg video
Oil Rally Risks Reverse If Idle Fields Return, Dana Gas Says - Bloomberg
Oil’s rally may end or even reverse if producers resume pumping some of the 10 million barrels of daily output capacity that now sits idled, according to the head of Middle Eastern energy producer Dana Gas PJSC.
Oil and gas companies are looking to bounce back from a year in which the coronavirus hammered economies and caused crude prices to plummet. Firms canceled projects, suspended operations and cut spending. Curbs on output from the world’s largest producers have helped oil recover to more than $60 a barrel, roughly triple last year’s low in April.
“I would hesitate to say that we’re in the start of a super cycle for oil,” Dana Gas Chief Executive Officer Patrick Allman-Ward said in a Bloomberg Television interview. “It won’t take very much to put the demand-supply balance back to a negative space.”
The roll-out of vaccines, strong demand in China and cuts by the OPEC+ cartel have helped bolster prices and reduced oil stockpiles, he said. Speaking later on a separate conference call with reporters, Allman-Ward said he was fairly optimistic oil will stay near current levels for the rest of the year.
Oil and gas companies are looking to bounce back from a year in which the coronavirus hammered economies and caused crude prices to plummet. Firms canceled projects, suspended operations and cut spending. Curbs on output from the world’s largest producers have helped oil recover to more than $60 a barrel, roughly triple last year’s low in April.
“I would hesitate to say that we’re in the start of a super cycle for oil,” Dana Gas Chief Executive Officer Patrick Allman-Ward said in a Bloomberg Television interview. “It won’t take very much to put the demand-supply balance back to a negative space.”
The roll-out of vaccines, strong demand in China and cuts by the OPEC+ cartel have helped bolster prices and reduced oil stockpiles, he said. Speaking later on a separate conference call with reporters, Allman-Ward said he was fairly optimistic oil will stay near current levels for the rest of the year.
Dana Gas posts $376 million 2020 net loss amid impairments on Egyptian assets | Reuters
Dana Gas posts $376 million 2020 net loss amid impairments on Egyptian assets | Reuters
United Arab Emirates energy firm Dana Gas said on Thursday it posted a 2020 net loss of $376 million compared to a net profit of $157 million a year earlier, hit by non-cash impairments on the sale of assets in Egypt.
The group had a non-cash impairment of $244 million for its Egyptian assets and a further impairment of $163 million for goodwill following the sale of the company’s onshore assets in Egypt, it said in a stock exchange filing.
Dana said the impairment came amid a sharp decline in oil prices and negative effects as a result of the COVID-19 pandemic.
CEO Patrick Allman-Ward told reporters the sale for up to $236 million of Dana’s onshore Egyptian oil and gas assets, agreed with IPR Wastani Petroleum last year, is expected to close in the first half of 2021, subject to conditions and approval from Egypt’s petroleum and mineral resources ministry.
United Arab Emirates energy firm Dana Gas said on Thursday it posted a 2020 net loss of $376 million compared to a net profit of $157 million a year earlier, hit by non-cash impairments on the sale of assets in Egypt.
The group had a non-cash impairment of $244 million for its Egyptian assets and a further impairment of $163 million for goodwill following the sale of the company’s onshore assets in Egypt, it said in a stock exchange filing.
Dana said the impairment came amid a sharp decline in oil prices and negative effects as a result of the COVID-19 pandemic.
CEO Patrick Allman-Ward told reporters the sale for up to $236 million of Dana’s onshore Egyptian oil and gas assets, agreed with IPR Wastani Petroleum last year, is expected to close in the first half of 2021, subject to conditions and approval from Egypt’s petroleum and mineral resources ministry.
S&P revises #Saudi's SFG, NCB outlooks to positive on planned merger | ZAWYA MENA Edition
S&P revises Saudi's SFG, NCB outlooks to positive on planned merger | ZAWYA MENA Edition
Credit agency S&P said on Thursday it had revised to positive the outlooks for Samba Financial Group (SFG) and National Commercial Bank (NCB) in view of a planned merger, which is expected to be completed in the first half of 2021.
NCB, Saudi Arabia’s biggest lender, signed last October a binding merger agreement with SFG that will create a new banking heavyweight with $223 billion in combined assets.
In a statement, the agency said it had assigned ratings of BBB+/A-2 for both banks. The ratings could also be raised over the next 12-24 months.
“The positive outlooks reflect that we could raise the ratings for both NCB and SFG over the next 12-24 months if, upon the transaction's successful completion, we continue to assess the merged entity as having a superior franchise value, a more balanced credit risk profile, and strong capitalisation,” S&P said.
Shareholders of both banks are due to vote on the merger in March.
Credit agency S&P said on Thursday it had revised to positive the outlooks for Samba Financial Group (SFG) and National Commercial Bank (NCB) in view of a planned merger, which is expected to be completed in the first half of 2021.
NCB, Saudi Arabia’s biggest lender, signed last October a binding merger agreement with SFG that will create a new banking heavyweight with $223 billion in combined assets.
In a statement, the agency said it had assigned ratings of BBB+/A-2 for both banks. The ratings could also be raised over the next 12-24 months.
“The positive outlooks reflect that we could raise the ratings for both NCB and SFG over the next 12-24 months if, upon the transaction's successful completion, we continue to assess the merged entity as having a superior franchise value, a more balanced credit risk profile, and strong capitalisation,” S&P said.
Shareholders of both banks are due to vote on the merger in March.
Major Gulf markets mixed in early trade | Reuters
Major Gulf markets mixed in early trade | Reuters
Major Gulf stocks were mixed early on Thursday, with Saudi index on track to extend gains for a sixth straight session boosted by financial shares.
Saudi Arabia’s benchmark index added 0.3%, with Al Rajhi Bank rising 0.6% and Saudi Arabian Mining Company advancing 3%.
The kingdom’s economy shrank by 3.8% in the fourth quarter compared with the same period a year earlier, preliminary government data showed on Wednesday, but it grew 2.8% on a quarterly basis.
The economy of the world’s top oil exporter contracted 4.1% in 2020, according to the preliminary estimates, hit by the COVID-19 pandemic, lower crude prices and output cuts.
Dubai’s main share index added 0.2%, supported by a 2.4% gain in Air Arabia, despite the budget airliner reporting a sharp decline in fourth-quarter net profit.
Meanwhile, oil prices, a key catalyst for the Gulf region’s financial markets, gave up some of the recent strong gains on expectations of slower economic recovery, but still above $60 a barrel. [O/R]
In Abu Dhabi, the index eased 0.2%, hit by a 0.5% fall in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
The Qatari index lost 0.2%, driven down by a 0.6% fall in petrochemical maker Industries Qatar.
Qatar Petroleum has set the March official selling price (OSP) for its Marine crude at 65 cents a barrel above the average of Platts Oman and Dubai quotes, down 5 cents from the previous month, a pricing document showed on Thursday.
Major Gulf stocks were mixed early on Thursday, with Saudi index on track to extend gains for a sixth straight session boosted by financial shares.
Saudi Arabia’s benchmark index added 0.3%, with Al Rajhi Bank rising 0.6% and Saudi Arabian Mining Company advancing 3%.
The kingdom’s economy shrank by 3.8% in the fourth quarter compared with the same period a year earlier, preliminary government data showed on Wednesday, but it grew 2.8% on a quarterly basis.
The economy of the world’s top oil exporter contracted 4.1% in 2020, according to the preliminary estimates, hit by the COVID-19 pandemic, lower crude prices and output cuts.
Dubai’s main share index added 0.2%, supported by a 2.4% gain in Air Arabia, despite the budget airliner reporting a sharp decline in fourth-quarter net profit.
Meanwhile, oil prices, a key catalyst for the Gulf region’s financial markets, gave up some of the recent strong gains on expectations of slower economic recovery, but still above $60 a barrel. [O/R]
In Abu Dhabi, the index eased 0.2%, hit by a 0.5% fall in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
The Qatari index lost 0.2%, driven down by a 0.6% fall in petrochemical maker Industries Qatar.
Qatar Petroleum has set the March official selling price (OSP) for its Marine crude at 65 cents a barrel above the average of Platts Oman and Dubai quotes, down 5 cents from the previous month, a pricing document showed on Thursday.
#Kuwait Currency Peg in Spotlight With Nation Unable to Borrow - Bloomberg
Kuwait Currency Peg in Spotlight With Nation Unable to Borrow - Bloomberg
The Kuwaiti dinar’s peg to a basket of currencies is coming under scrutiny as concerns grow that one of the world’s richest nations is running short of cash.
Derivatives are showing signs of pressure after 12-month forward contracts on the Kuwaiti dinar rose to about 280 points in the offshore market Wednesday, the highest since June. Most other Gulf currency forwards have declined this year as the recent recovery in oil prices eases the risks to their energy-dependent economies.
While other Gulf Arab states tapped global debt markets to bolster strained finances amid the pandemic, Kuwait has been hamstrung by lawmakers’ resistance to approve a law that would enable the government to borrow. Concern over how Kuwait will cover its budget deficit has become more acute after the government transferred the last of its performing assets to the country’s sovereign wealth fund in exchange for cash.
The Kuwaiti dinar’s peg to a basket of currencies is coming under scrutiny as concerns grow that one of the world’s richest nations is running short of cash.
Derivatives are showing signs of pressure after 12-month forward contracts on the Kuwaiti dinar rose to about 280 points in the offshore market Wednesday, the highest since June. Most other Gulf currency forwards have declined this year as the recent recovery in oil prices eases the risks to their energy-dependent economies.
While other Gulf Arab states tapped global debt markets to bolster strained finances amid the pandemic, Kuwait has been hamstrung by lawmakers’ resistance to approve a law that would enable the government to borrow. Concern over how Kuwait will cover its budget deficit has become more acute after the government transferred the last of its performing assets to the country’s sovereign wealth fund in exchange for cash.
#SaudiArabia, #Oman most exposed to diminishing fiscal uplift from SWF buffers | ZAWYA MENA Edition
Saudi Arabia, Oman most exposed to diminishing fiscal uplift from SWF buffers | ZAWYA MENA Edition
The impact of the coronavirus pandemic on oil demand and prices has increased gross funding requirements for sovereigns across the GCC, which will be partly funded by drawing down sovereign wealth fund (SWF) assets, Moody's Investors Service said in a new report.
The stock of SWF assets in Qatar and Abu Dhabi remains more than ample to cover decades of fiscal deficits at current levels. However, for Oman and Saudi Arabia, which possess a more modest stock of SWF assets, significant drawdowns will lead to substantial erosion of their SWF buffers over the medium term, reducing the uplift to fiscal strength derived from these assets, and increasing external vulnerability risks in Oman, it said.
Moody’s said it expects oil prices to remain below their pre-coronavirus path, due to long-lasting reductions in oil demand in sectors like aviation. Markedly lower hydrocarbon revenues will translate into persistently higher budget deficits--despite some adjustments to expenditure and non-oil revenue measures--leading to higher financing requirements.
In Kuwait, very large fiscal deficits have largely depleted the liquid portion of the smaller General Reserve Fund, increasing liquidity risks in the absence of a debt law despite the large stock of assets held in the Future Generations Fund, which are currently ringfenced from the general budget, Moody’s said.
The impact of the coronavirus pandemic on oil demand and prices has increased gross funding requirements for sovereigns across the GCC, which will be partly funded by drawing down sovereign wealth fund (SWF) assets, Moody's Investors Service said in a new report.
The stock of SWF assets in Qatar and Abu Dhabi remains more than ample to cover decades of fiscal deficits at current levels. However, for Oman and Saudi Arabia, which possess a more modest stock of SWF assets, significant drawdowns will lead to substantial erosion of their SWF buffers over the medium term, reducing the uplift to fiscal strength derived from these assets, and increasing external vulnerability risks in Oman, it said.
Moody’s said it expects oil prices to remain below their pre-coronavirus path, due to long-lasting reductions in oil demand in sectors like aviation. Markedly lower hydrocarbon revenues will translate into persistently higher budget deficits--despite some adjustments to expenditure and non-oil revenue measures--leading to higher financing requirements.
In Kuwait, very large fiscal deficits have largely depleted the liquid portion of the smaller General Reserve Fund, increasing liquidity risks in the absence of a debt law despite the large stock of assets held in the Future Generations Fund, which are currently ringfenced from the general budget, Moody’s said.
Oil drops after strong rally as talk of slower recovery weighs | Reuters
Oil drops after strong rally as talk of slower recovery weighs | Reuters
Oil prices fell on Thursday, giving up some of the recent strong gains on expectations of slower economic recovery and speculation that the market’s strength could tempt producers like Saudi Arabia to reduce output by less.
Brent crude fell 35 cents, or 0.6%, to $61.12 a barrel, as of 0805 GMT, after touching its highest since January 2020 on Wednesday.
The market has been driven higher as the Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, reduced output and coronavirus vaccine rollouts fired up hopes of a recovery in demand.
U.S. West Texas Intermediate crude futures slid 34 cents, or 0.6%, to $58.34 a barrel.
“Benchmark crude oil futures fell...as investors tapped the brakes on the run in crude prices after taking in tepid U.S. inflation data and comments from the Federal Reserve chief affirming the outlook for a slow recovery,” Avtar Sandu, senior commodities manager at Phillip Futures, wrote in a note.
Oil prices fell on Thursday, giving up some of the recent strong gains on expectations of slower economic recovery and speculation that the market’s strength could tempt producers like Saudi Arabia to reduce output by less.
Brent crude fell 35 cents, or 0.6%, to $61.12 a barrel, as of 0805 GMT, after touching its highest since January 2020 on Wednesday.
The market has been driven higher as the Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, reduced output and coronavirus vaccine rollouts fired up hopes of a recovery in demand.
U.S. West Texas Intermediate crude futures slid 34 cents, or 0.6%, to $58.34 a barrel.
“Benchmark crude oil futures fell...as investors tapped the brakes on the run in crude prices after taking in tepid U.S. inflation data and comments from the Federal Reserve chief affirming the outlook for a slow recovery,” Avtar Sandu, senior commodities manager at Phillip Futures, wrote in a note.
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