MIDEAST - STOCKS-Major Gulf stock exchanges gain from earnings and oil
Investors focused on rising oil prices and corporate earnings as they boosted the major Gulf stock exchanges in the early trading on Wednesday. Saudi Arabia's benchmark stock index rose?0.4%. Oil major Saudi Aramco gained?1.2%. Alinma Bank gained 2.6% after a dramatic increase in net profit. In a separate filing to the bourse, the bank proposed a capital raise through bonus shares. It would grant one bonus share per five shares held. Crude oil prices, a major catalyst for Gulf financial markets, rose further on Wednesday.
Kuwait Readies $7b Pipeline Deal as Gulf Turns to Foreign Investors
Gulf governments are stepping up infrastructure deals with foreign investors, with Kuwait set to launch an oil pipeline network stake sale as soon as February in a deal that could raise up to $7 billion, three sources with knowledge of the matter said.The shift comes as oil prices, down more than 25% in two years, sit below levels needed to fund the Gulf’s diversification plans. Governments are now offering investors access to assets once off limits - from pipelines to power plants - to bring in pension funds…
Saudi Aramco signs long-term supply agreement with Commonwealth LNG
Three people with knowledge of the deal say that 'Saudi Aramco signed a contract with Commonwealth LNG for the U.S. LNG company to supply 1 million metric tons per annum. Saudi Aramco has the option to double its volume up to 2 mtpa. Saudi Aramco aims to be a major player in the liquefied gas industry, particularly in the United States, where capacity for LNG is expected to double within four years. It has signed agreements with other U.S. companies, including NextDecade's Rio Grande LNG Project.
Venezuelan oil will boost US refiners but hurt Canadian producers
Refiners in the United States would be able to absorb most of the approximately 1 million barrels of crude oil per day if U.S. Sanctions on Venezuela are lifted. According to a report on Tuesday, the U.S. has been in talks with Venezuela about exporting crude oil from the South American country to the United States. Sources say that U.S. oil executives will visit the White House Thursday to discuss Venezuela. The increase in Venezuelan oil exports may hurt Canadian firms that sell similar heavy oils…
Venezuelan oil will boost US refiners but hurt Canadian producers
Refiners in the United States would be able to absorb the majority of the approximately 1 million barrels of crude oil per day that would be traded freely if the sanctions were lifted. The sanctions against the South American nation are lifted. Canadian oil companies, who sell heavy crude similar to that of Venezuela, and small Chinese refiners would suffer higher costs, if Venezuelan crude was diverted to the U.S. The U.S.
Sources say Saudi Aramco will export the first condensate in February from Jafurah Gas Plant
Two sources familiar with the matter confirmed on Tuesday that Saudi Aramco, the state energy company, plans to export the first condensate from the Jafurah Gas Plant in 'February. Aramco is aiming to be a global leader in natural gas by increasing its production capacity. The $100 billion Jafurah Project, which contains 229 trillion standard cubic feet of raw gas, and 75 billion barrels condensate according to estimates, is at the heart of this ambition.
Aramco signs preliminary US deal worth more than $30 Billion
Saudi Aramco, the oil giant, said that it signed 17 preliminary agreements with U.S. firms with a total potential value of over $30 billion during a trip to Washington by Saudi Crown Prince. In a press release, the company said that these projects include liquefied gas, financial services and advanced materials manufacturing, as well as procurement of materials and other services. Saudi Arabian and U.S. officials highlighted billions of dollars in new investments…
Saudi Aramco to Sign US LNG Supply Agreements
Saudi Aramco is set to sign two U.S. liquefied natural gas supply deals with Woodside Energy and Commonwealth LNG when Saudi Arabia's Crown Prince Mohammed bin Salman visits Washington next week, sources familiar with the matter told Reuters.The world's largest oil exporter, Saudi Aramco, wants to become a major liquefied natural gas player, especially in the United States, where LNG capacity is set to almost double over the next four years. It has already signed deals with other U.S.
Saudi Aramco will sign US LNG contracts during the crown prince's Washington visit, sources say
Saudi Aramco will sign two U.S. LNG supply agreements with Woodside Energy & Commonwealth LNG next week when Saudi Arabian Crown Prince Mohammed bin Salman is in Washington, according to sources with knowledge of the situation. Saudi Aramco wants to be a major player in liquefied gas, particularly in the United States where the LNG capacity will almost double within the next four-years. It has signed agreements with other U.S. companies, such as NextDecade Rio Grande LNG.
LNG Canada announces that it has begun production at its second unit.
The company announced that LNG Canada had begun producing liquefied gas in the second of two processing units. This unit is known as Train 2. A spokesperson said that both trains of the Shell-led Kitimat project, each with a 6.5 million ton capacity per year, are now operational. LNG Canada, Canada's first major LNG export plant and first facility on the West Coast of North America to provide direct access into Asia, the largest liquid fuel market in the world, is now operational.
The major Gulf exchanges are tracking Asian shares lower due to valuation fears
The Gulf's major stock markets fell on Wednesday morning, following the Asian share market lower after a tech-led selloff overnight on Wall Street brought the focus on stretched valuations. The stock market is retreating after reaching record highs, amid fears that equity markets have become stretched. This comes as CEOs from Wall Street giants Morgan Stanley and Goldman Sachs asked whether such valuations could be sustained.
BP profits beat expectations but there is no news about Castrol sale
Oil major BP announced a smaller-than-expected fall in its third quarter underlying profit Tuesday, as a good performance across all divisions, led by refinery helped offset the impact from lower crude prices. There was no news on the sale of Castrol Lubricants, which is the centerpiece of the $20 billion asset-sale campaign to reduce its debt. BP, after a failed foray into the renewables sector under former CEO Bernard Looney…
BP Beats Profit Expectations in Q3, No Update on Castrol Lubricants Sale
Oil major BP reported a smaller than expected fall in third-quarter underlying profit on Tuesday as a strong performance at all divisions led by refining helped to offset the impact of lower crude prices.However, there was no update on the closely-watched sale process for its Castrol lubricants unit, the centre-piece of its $20 billion asset-sale drive to slash its debt pile.After an ill-fated foray into renewables under previous CEO Bernard Looney…
Oil bosses are expecting the market surplus to diminish over time
Executives from oil majors, trading houses and oil companies said that the global oil market will tighten up in the medium-to-long term after recovering from its short-term weakness. Oil prices have been impacted by the rising output of OPEC+ – which is a grouping of countries that are members of the Organisation of Petroleum Exporting Countries (OPEC) and their allies – as well as other producers. This has also been exacerbated by expectations of trade tensions leading to a reduction in demand.
Saudi Aramco CEO: Saudi Aramco's maximum oil production capacity can be sustained for an entire year at 12 million barrels per day.
Saudi Aramco's Chief Executive Amin Nasser said that the company can maintain crude oil production of 12 million barrels a day (bpd), for an entire year, without incurring any additional costs. Saudi Arabia has a large share of the world’s spare oil supply – idle oil that can be quickly brought to market. Nasser, speaking at the Energy Intelligence Forum held in London, projected that global oil demand will rise by between 1.1 and 1.3 million barrels per day (bpd) this year, as well as by 1.2 to 1.4 millions bpd by 2026.
Sources say that Saudi Aramco and Repsol have reached an impasse in their talks to purchase a stake in Repsol’s renewables unit.
Two sources with knowledge of the situation said that talks between Aramco, the Saudi state oil company, and Repsol Renewables have reached a deadlock. One source said that the talks about the potential investment of 1 billion euros ($1.2 billion) have come to an end and there is no plan at this time to revive them. Aramco was looking to improve efficiency, cut costs and sell assets when it hit the impasse. The talks began…
ConocoPhillips will purchase LNG from NextDecade Rio Grande Train 5 Project
ConocoPhillips, a U.S. oil producer and gas exporter, will buy 1.0 million tonnes of liquefied gas per year from NextDecade Rio Grande's Texas export facility for 20 years. NextDecade, also known by the name of a train or its fifth liquefaction plant, will provide superchilled fuel at Rio Grande from their fifth liquefaction unit. The shares of the LNG producer increased 2.3% during extended trading. Since President Donald Trump lifted the pause on new permits for exports in January…
NextDecade's Rio Grande Train 5 Export Facility will supply EQT with LNG
The companies announced on Wednesday that U.S. energy company EQT would purchase 1.5 million tons of liquefied gas per year from NextDecade’s Rio Grande Export Facility in Texas, for a period of 20 years. NextDecade, also known by the name of a train or its fifth liquefaction plant, will provide superchilled fuel at Rio Grande from their fifth liquefaction unit. The agreement is on a free on-board basis, at a price indexes to Henry Hub.
The major South Korean petrochemical companies and their production
The South Korean government announced on Wednesday a plan for 10 petrochemical firms to restructure operations. This included a large reduction in their naphtha cracking capacity. According to the Korea Chemical Industry Association, South Korea is home to some of the world's largest petrochemical companies. South Korean producers suffered losses because of oversupply in China, which is the largest petrochemicals market, as well as a sluggish consumer demand.
Saudi Arabia will host the first Hydrogen World cup event for motor racing Extreme H
The pioneering hydrogen off road racing series Extreme H is set to debut in Saudi Arabia as a World Cup event next month, after organizers scrapped plans for a multi-round championship. Alejandro Agag, the founder of the series, said that an agreement had been reached between it and the International Automobile Federation. Plans from the past had a five round calendar that began in Saudi Arabia in April last year, with races also taking place in Britain, Germany and Italy, as well as in the United States.