Iranian tanker caught in a standoff with the West heads to Greece, shipping data shows

A crew member checks the new name of Iranian oil tanker Adrian Darya, formerly known as Grace 1, off the coast of Gibraltar on August 18, 2019. The Iranian tanker caught in a standoff between Tehran and the West was sailing to Greece on Monday after leaving Gibraltar, shipping data showed, hours after the British territory rejected a U.S. request to detain the vessel further. That led to heightened tensions on international oil shipping routes through the Gulf. Refinitiv ship tracking data showe


A crew member checks the new name of Iranian oil tanker Adrian Darya, formerly known as Grace 1, off the coast of Gibraltar on August 18, 2019. The Iranian tanker caught in a standoff between Tehran and the West was sailing to Greece on Monday after leaving Gibraltar, shipping data showed, hours after the British territory rejected a U.S. request to detain the vessel further. That led to heightened tensions on international oil shipping routes through the Gulf. Refinitiv ship tracking data showe
Iranian tanker caught in a standoff with the West heads to Greece, shipping data shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, shipping, iranian, issue, grace, oil, heads, tanker, greece, showed, gibraltar, west, vessel, request, standoff, data, caught, shows


Iranian tanker caught in a standoff with the West heads to Greece, shipping data shows

A crew member checks the new name of Iranian oil tanker Adrian Darya, formerly known as Grace 1, off the coast of Gibraltar on August 18, 2019.

The Iranian tanker caught in a standoff between Tehran and the West was sailing to Greece on Monday after leaving Gibraltar, shipping data showed, hours after the British territory rejected a U.S. request to detain the vessel further.

British Royal Marines seized the tanker near Gibraltar in July on suspicion it was carrying oil to Syria, a close ally of Iran, in violation of European Union sanctions. That led to heightened tensions on international oil shipping routes through the Gulf.

The Grace 1, renamed the Adrian Darya 1, left anchorage off Gibraltar around 11 p.m. (2100 GMT). Refinitiv ship tracking data showed early on Monday that the vessel was heading to Kalamata in Greece.

The tanker’s detention ended last week, but a federal court in Washington on Friday issued a warrant for the seizure of the tanker, the oil it carries and nearly $1 million.

Gibraltar said on Sunday it could not comply with that request because it was bound by EU law.

“Gibraltar considers the United States as a key ally. Nobody must think that we have sided with a foe and let down a friend,” Fabian Picardo, chief minister of Gibraltar, told CNBC’S “Squawk Box Europe” on Monday.

“This became, in its last throes, not a political issue but a legal issue,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, shipping, iranian, issue, grace, oil, heads, tanker, greece, showed, gibraltar, west, vessel, request, standoff, data, caught, shows


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Oil rises as US retail sales ease recession fears

Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy. U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday. An inverted Treasury yield curve is historically a reliable predictor of looming recessions. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.


Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy. U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday. An inverted Treasury yield curve is historically a reliable predictor of looming recessions. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.
Oil rises as US retail sales ease recession fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16
Keywords: news, cnbc, companies, output, economic, oil, cuts, treasury, fears, sales, data, crude, opec, weakening, ease, rises, yield, recession, retail


Oil rises as US retail sales ease recession fears

Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy.

Brent crude was up 52 cents, or 0.9%, at $58.75 a barrel at 0352 GMT, after falling 2.1% on Thursday and 3% the previous day.

U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday.

U.S. retail sales rose 0.7% in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, according to data that came a day after a key part of the U.S. Treasury yield curve inverted for the first time since June 2007 prompting a sell-off in stocks and crude oil.

An inverted Treasury yield curve is historically a reliable predictor of looming recessions.

“The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound,” said Jeffrey Halley, senior market analyst at OANDA. “Overall, U.S. data continues to be a bright spot in a dark economic universe.”

Gains are likely to be capped after a week of data releases including a surprise drop in industrial output growth in China to a more than 17-year low, along with a fall in exports that sent Germany’s economy into reverse in the second quarter.

“The broader story around global economic growth has been a weak one, or a weakening one and expectations (are for) further weakening,” Phin Ziebell, senior economist at National Australia Bank, said by phone.

The price of Brent is still up nearly 10% this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.

“At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?” Zeibell said, given the broader economic outlook.

A Saudi official on Aug. 8 indicated more steps may be coming, saying “Saudi Arabia is committed to do whatever it takes to keep the market balanced next year.”

But the efforts of OPEC+ have been outweighed by worries about the global economy amid the U.S.-China trade dispute and uncertainty over Brexit, as well as rising U.S. stockpiles of crude and higher output of U.S. shale oil.


Company: cnbc, Activity: cnbc, Date: 2019-08-16
Keywords: news, cnbc, companies, output, economic, oil, cuts, treasury, fears, sales, data, crude, opec, weakening, ease, rises, yield, recession, retail


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Saudi Arabia is dramatically changing its oil exports to China and the US

A worker stands at a pipeline, watching a flare stack at the Saudi Aramco oil field complex facilities in Shaybah, Saudi Arabia. Reza/Getty ImagesSaudi Arabia has seriously ramped up its oil exports to China in recent months. During the same period, its oil exports to the U.S. have dropped by nearly two-thirds. Meanwhile, Smith said, as Saudi Arabia “slams on the brakes to the most transparent market, it is sending more crude into the most opaque one, China.” China, the ‘savvy buyer’TankerTracke


A worker stands at a pipeline, watching a flare stack at the Saudi Aramco oil field complex facilities in Shaybah, Saudi Arabia. Reza/Getty ImagesSaudi Arabia has seriously ramped up its oil exports to China in recent months. During the same period, its oil exports to the U.S. have dropped by nearly two-thirds. Meanwhile, Smith said, as Saudi Arabia “slams on the brakes to the most transparent market, it is sending more crude into the most opaque one, China.” China, the ‘savvy buyer’TankerTracke
Saudi Arabia is dramatically changing its oil exports to China and the US Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: natasha turak
Keywords: news, cnbc, companies, oil, market, saudi, china, halff, data, arabia, changing, stocks, crude, dramatically, exports


Saudi Arabia is dramatically changing its oil exports to China and the US

A worker stands at a pipeline, watching a flare stack at the Saudi Aramco oil field complex facilities in Shaybah, Saudi Arabia. Reza/Getty Images

Saudi Arabia has seriously ramped up its oil exports to China in recent months. How dramatic is the change? Take a look at this graph, which uses data from oil tanker tracking firm TankerTrackers.com.

The Saudi Kingdom’s crude shipments to China have doubled in the span of a year. During the same period, its oil exports to the U.S. have dropped by nearly two-thirds. According to TankerTrackers.com, which tracks oil tankers and shipments based on satellite imagery and ships’ automatic identification systems, Saudi Arabia exported a whopping 1,802,788 barrels per day (bpd) to China in July, compared to 921,811 bpd in August of 2018. By contrast, exports to the U.S. in July were 262,053 bpd, nearly 62% down from 687,946 bpd in August of last year. U.S. sanctions on Iranian oil have helped the shift. Major Asian energy importers like China have been forced to shift business away from the Islamic Republic — OPEC’s third-largest producer — and start buying more Saudi barrels to make up for that shortfall. The U.S. is now more self-reliant than ever, thanks to its own shale oil revolution, which helped it become the world’s largest oil producer by the end of last year. But the numbers also signal a mix of short-term tactics and long-term strategy for the Saudis, industry experts told CNBC.

Saudis ‘slam on the brakes’ to the U.S.

“Saudi Arabia learned from the last OPEC production cut in 2017 that they got the biggest bang for their buck by cutting flows to the largest, most transparent and most timely market — the U.S.,” said Matt Smith, director of commodity research at commodities analytics firm ClipperData, referring to the coordinated production cut that OPEC and its allies orchestrated to put a floor under falling oil prices. “Choking back on flows to the U.S. was the best way to draw down inventories and turn around bearish sentiment, and they are employing the same tactic once again.” ClipperData’s figures, which differ from that of TankerTrackers due to different tracking methods, still show U.S. imports of Saudi crude in July down over 60% from last October. Meanwhile, Smith said, as Saudi Arabia “slams on the brakes to the most transparent market, it is sending more crude into the most opaque one, China.” This is where some industry analysts say Riyadh is employing short-term tactics: “impacting what remains the most visible and closely-watched market indicator, U.S. crude stocks,” Antoine Halff, co-founder of energy market analytics firm Kayrros, told CNBC.

The market has largely traded on weekly U.S. numbers, which — up until the growth of satellite imagery to provide greater transparency on global stocks — provided the best available picture of market conditions. In spite of the greater availability of global market inventory thanks to satellite data, “the goal of impacting the U.S. stock metric seems to remain very real for OPEC in general and the Kingdom in particular,” Halff said. “Rightly or wrongly, this is the benchmark that everybody watches.” China, oh the other hand, is not as forthcoming as OECD countries about its stocks, and it’s data isn’t as visible to the market. Halff notes that there is no established benchmark of Chinese stocks as there is for the U.S. “Producers are far less concerned about building Chinese stocks than they are about building U.S. or OECD stocks in terms of what that may signal to the market,” he said.

China, the ‘savvy buyer’

TankerTrackers.com co-founder Samir Madani has described China as a sort of “black hole” for the world’s oil exports, having the ability to “easily absorb oil barrels from the market, especially when prices dip.” Looking at this, many analysts see a clear strategy from Beijing. “The Chinese are very savvy and astute buyers, exporters who supply them have very good reasons to do so,” Halff said. In the current low oil price climate, the world’s largest oil importer is happy to up its Saudi crude purchases as its appetite increases, particularly given its launch of two new refineries which will grow its refining capacity by 800,000 bpd.

Employees close a valve of a pipe at a PetroChina refinery in Lanzhou, Gansu province. Stringer | Reuters

In the months following President Donald Trump’s imposition of unilateral sanctions on Iran after withdrawing from the 2015 Iranian nuclear deal, data shows a dramatic run-up in Chinese crude imports and crude inventories. This is “thanks in part, once again, to the availability of Saudi barrels,” Halff added, “whether for precautionary reasons, out of price opportunism, or in preparation for new refining capacity coming online — or all of the above.”

Saudi Arabia’s long game in Asia


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: natasha turak
Keywords: news, cnbc, companies, oil, market, saudi, china, halff, data, arabia, changing, stocks, crude, dramatically, exports


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Oil slides 1.4% on recession fears, China’s trade threats

Oil prices fell more than 1% on Thursday, extending the previous session’s 3% drop, pressured by mounting recession concerns and a surprise boost in U.S. crude inventories. China’s threat to impose counter-measures in retaliation for the latest U.S. tariffs on $300 billion of Chinese goods also weighed on oil prices. Brent crude fell as much as 3%, to $57.67 a barrel. The international benchmark was 2.4% lower at $58.05 and West Texas Intermediate crude (WTI) was down 1.4%, to $54.47. “Oil is ge


Oil prices fell more than 1% on Thursday, extending the previous session’s 3% drop, pressured by mounting recession concerns and a surprise boost in U.S. crude inventories. China’s threat to impose counter-measures in retaliation for the latest U.S. tariffs on $300 billion of Chinese goods also weighed on oil prices. Brent crude fell as much as 3%, to $57.67 a barrel. The international benchmark was 2.4% lower at $58.05 and West Texas Intermediate crude (WTI) was down 1.4%, to $54.47. “Oil is ge
Oil slides 1.4% on recession fears, China’s trade threats Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15
Keywords: news, cnbc, companies, 14, crude, whacked, oil, weighing, threats, recession, chinas, trade, fears, west, worlds, yield, slides, fell, wti


Oil slides 1.4% on recession fears, China's trade threats

Oil prices fell more than 1% on Thursday, extending the previous session’s 3% drop, pressured by mounting recession concerns and a surprise boost in U.S. crude inventories.

In a sign of investor concern that the world’s biggest economy could be heading for recession, weighing on oil demand, the U.S. Treasury bond yield curve inverted on Wednesday for the first time since 2007.

China’s threat to impose counter-measures in retaliation for the latest U.S. tariffs on $300 billion of Chinese goods also weighed on oil prices.

Brent crude fell as much as 3%, to $57.67 a barrel. The international benchmark was 2.4% lower at $58.05 and West Texas Intermediate crude (WTI) was down 1.4%, to $54.47.

“Oil is getting whacked again as risk-aversion again kicks in and fears of a trade war inflicted slowdown grip traders,” said Craig Erlam, senior market analyst at OANDA.


Company: cnbc, Activity: cnbc, Date: 2019-08-15
Keywords: news, cnbc, companies, 14, crude, whacked, oil, weighing, threats, recession, chinas, trade, fears, west, worlds, yield, slides, fell, wti


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Oil prices drop as China economic data disappoints and US crude inventories rise

Oil prices fell on Wednesday on disappointing economic data from China and a rise in U.S. crude inventories, erasing some of the sharp gains in the previous session on signs of an easing in Sino-U.S. trade tensions. Profit taking after Tuesday’s sharp gains also weighed on crude prices on Wednesday, analysts said. “Markets will perhaps soon come down to earth and face the reality of a world of elevated trade tariffs, slower growth and policy inconsistency.” China’s commerce ministry said in a st


Oil prices fell on Wednesday on disappointing economic data from China and a rise in U.S. crude inventories, erasing some of the sharp gains in the previous session on signs of an easing in Sino-U.S. trade tensions. Profit taking after Tuesday’s sharp gains also weighed on crude prices on Wednesday, analysts said. “Markets will perhaps soon come down to earth and face the reality of a world of elevated trade tariffs, slower growth and policy inconsistency.” China’s commerce ministry said in a st
Oil prices drop as China economic data disappoints and US crude inventories rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14
Keywords: news, cnbc, companies, unexpectedly, drop, disappoints, million, crude, data, tariffs, rise, economic, chinese, prices, china, inventories, trade, oil, analyst


Oil prices drop as China economic data disappoints and US crude inventories rise

Oil prices fell on Wednesday on disappointing economic data from China and a rise in U.S. crude inventories, erasing some of the sharp gains in the previous session on signs of an easing in Sino-U.S. trade tensions.

Brent crude was down 64 cents, or 1%, at $60.66 a barrel at 0446 GMT, after rising 4.7% on Tuesday, the biggest percentage gain since December.

U.S. oil was down 75 cents, or 1.3%, at $56.35 a barrel, having risen 4% the previous session, the most in just over a month.

China reported a raft of unexpectedly weak July data, including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the United States intensifies.

“Deteriorating China industrial output and consumer spending suggest the fundamental picture isn’t great and the demand for energy may be under the pressure,” said Margaret Yang, market analyst at CMC Markets.

Profit taking after Tuesday’s sharp gains also weighed on crude prices on Wednesday, analysts said.

“The moves in oil were so outsized overnight, that some profit taking in Asia was logical,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

Benchmark crude prices surged on Tuesday after U.S. President Donald Trump backed off his Sept. 1 deadline for 10% tariffs on some products affecting about half of the $300 billion target list of Chinese goods.

But with about $110 billion worth of Chinese imports still subject to the tariffs increase next month, the delay will not solve the core issues between the U.S. and China, said Yang.

“Markets will perhaps soon come down to earth and face the reality of a world of elevated trade tariffs, slower growth and policy inconsistency.”

Markets have been pummeled in recent weeks amid tough talk from Trump on trade.

China’s commerce ministry said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks.

Data from industry group the American Petroleum Institute (API) showed U.S. crude stocks unexpectedly rose last week.

Crude inventories increased by 3.7 million barrels to 443 million, compared with analyst expectations for a decrease of 2.8 million barrels, the API said.


Company: cnbc, Activity: cnbc, Date: 2019-08-14
Keywords: news, cnbc, companies, unexpectedly, drop, disappoints, million, crude, data, tariffs, rise, economic, chinese, prices, china, inventories, trade, oil, analyst


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Oil soars 4% on easing US-China trade tensions

Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months. “The U.S.-China trade war has caused energy demand growth to take a big hit. The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. OPEC and its allies, known as OPEC+, hav


Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months. “The U.S.-China trade war has caused energy demand growth to take a big hit. The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. OPEC and its allies, known as OPEC+, hav
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Company: cnbc, Activity: cnbc, Date: 2019-08-13
Keywords: news, cnbc, companies, states, prices, united, oil, soars, opec, chinese, uschina, trade, easing, million, tensions, bpd, energy, futures


Oil soars 4% on easing US-China trade tensions

Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months.

The Chinese products include laptops and cellphones. The tariffs had been scheduled to start next month.

“The U.S.-China trade war has caused energy demand growth to take a big hit. Any glimmer of hope revives the prospects for a more positive demand landscape,” said John Kilduff, partner at energy hedge fund Again Capital Management in New York.

Brent futures were up 4.5%, at $61.20 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 4%, at $57.10.

That put Brent futures on track for their biggest daily percentage gain since December.

The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks.

“The possibility that the United States and China can get the trade talks on track … is raising hopes that they might actually get some type of deal,” said Phil Flynn, analyst at Price Futures Group in Chicago.

“That’s why we are seeing this big rebound in prices,” Flynn said.

Before the U.S. announcement about the tariff delay, Brent futures were still trading about 20% below the 2019 high they hit in April.

Oil prices seesawed earlier in the day, caught between demand worries and rising global supplies and expectations for deeper production cuts from leading producers.

U.S. oil output from seven major shale formations was expected to rise by 85,000 barrels per day (bpd) in September to a record 8.77 million bpd, the Energy Information Administration forecast in a report.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), last week said it planned to keep its crude exports below 7 million bpd in August and September to help drain global oil inventories.

“Saudi Arabia and its Gulf allies standing firm on their commitment to the OPEC+ output-cut agreement has supported prices,” said Abhishek Kumar, head of analytics at Interfax Energy in London.

OPEC and its allies, known as OPEC+, have agreed to cut 1.2 million bpd of production since Jan. 1.

In the United States, meanwhile, analysts forecast crude stockpiles fell by 2.8 million barrels last week, according to a Reuters poll.

“If we get the drawdown in (U.S.) inventory that most people are looking for, that is going to get the market a lot tighter,” said Flynn at Price Futures.

The American Petroleum Institute (API), an industry group, was due to release its inventory report at 4:30 p.m. EDT (2030 GMT) on Tuesday, followed by U.S. government data on Wednesday morning.


Company: cnbc, Activity: cnbc, Date: 2019-08-13
Keywords: news, cnbc, companies, states, prices, united, oil, soars, opec, chinese, uschina, trade, easing, million, tensions, bpd, energy, futures


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Saudi Aramco’s first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the


An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the
Saudi Aramco’s first-half net income falls 12% to $47 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


Saudi Aramco's first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.

Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier.

By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year.

Aramco said total revenues including other income related to sales were at $163.88 billion in the first half of this year, down from $167.68 billion a year earlier, on lower oil prices and reduced production.

In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the average realized price of crude oil compared to the same period in 2018, from $69 to $66 per barrel.

Aramco President and CEO Amin Nasser said the company had continued to deliver on its “downstream growth strategy” through acquisitions both domestically and in international markets.

“These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations,” Nasser said.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


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Saudi Aramco says it’s ready to go public

Saudi Aramco’s CFO, in the company’s first-ever conference call, on Monday told investors that the company is ready to go public, but that the timing will be up to its owner, the Kingdom of Saudi Arabia. Saudi Crown Prince Mohammed bin Salman would like to see Aramco valued at $2 trillion, about $500 billion more than bankers are currently estimating, according to sources. “We, in Saudi Aramco, have delivered strong and unmatched financial results, despite lower oil prices and volatile market co


Saudi Aramco’s CFO, in the company’s first-ever conference call, on Monday told investors that the company is ready to go public, but that the timing will be up to its owner, the Kingdom of Saudi Arabia. Saudi Crown Prince Mohammed bin Salman would like to see Aramco valued at $2 trillion, about $500 billion more than bankers are currently estimating, according to sources. “We, in Saudi Aramco, have delivered strong and unmatched financial results, despite lower oil prices and volatile market co
Saudi Aramco says it’s ready to go public Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: patti domm
Keywords: news, cnbc, companies, saudi, companys, million, company, prices, reliance, told, billion, oil, public, ready, aramco


Saudi Aramco says it's ready to go public

An employee walks past crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia, on Monday, Oct. 1, 2018.

Saudi Aramco’s CFO, in the company’s first-ever conference call, on Monday told investors that the company is ready to go public, but that the timing will be up to its owner, the Kingdom of Saudi Arabia.

“Basically, the company is ready for the IPO. Now the timing of the IPO itself, this is a shareholder’s issue, and they will announce it depending on their perception of what would be the optimum market condition,” said Khalid al-Dabbagh, chief financial officer, reiterating the company’s previous stance.

Sources have said that the Saudi government, encouraged by the success of Aramco’s $12 billion debt offering, would like to move its plans for the IPO forward, and issue stock in 2020. The offering is expected to be the largest new issue ever, and represent just a small portion of the company’s equity. Saudi Crown Prince Mohammed bin Salman would like to see Aramco valued at $2 trillion, about $500 billion more than bankers are currently estimating, according to sources.

The company faces tough markets, where oil prices are volatile and near the 2019 low. Brent crude futures were trading below $60 a barrel Monday, and are down 18% over the past year. At the same time, energy stocks have underperformed, with the S&P energy sector up just 1.7% year to date, the worst-performing sector and well behind the S&P 500’s 2019 gain of about 16%.

“We, in Saudi Aramco, have delivered strong and unmatched financial results, despite lower oil prices and volatile market conditions. This is really a testament to our resilience,” said al-Dabbagh, noting the talks are in the early stages.

Saudi Aramco earlier reported first half net profits of $46.9 billion, down from $53 billion last year due to the impact of lower oil prices. Free cash flow rose 6.7% to $38 billion, and it is that cash flow that some sources believe could help Aramco propel its valuation to $2 trillion.

Aramco announced a special dividend of $20 billion, noting it reflects its exceptionally strong 2018 performance.

The CFO told investors the company has sufficient free cash flow to give it enough room to purchase a stake in Reliance Industries, a deal announced by Reliance earlier Monday. The stake in India’s Reliance Industries, an oil and chemicals producer, allows Aramco to diversify ahead of its IPO.

“As you and everyone knows, India is a large country with large demand, and I think growing demand,” he said, adding the deal enhances the company’s global downstream strategy.

Earlier, Reliance Chairman Mukesh Ambani told his company’s annual meeting that Aramco is the biggest foreign investment in the company ever and among the largest foreign investments ever in India. Under the deal, Aramco would supply its Jamnagar refineries with 700,00 barrels a day of oil on a long-term basis, about half the refining complex’ s capacity.

Aramco said it is focusing more effort on gas development, and that it is an area of growth. It also expects its Marjan and Berri developments to contribute production capacity of 2.5 million cubic meters of gas and 550,000 barrels a day of oil. Marjan is an offshore field off the east coast of Saudi Arabia. and Berri, also in Saudi Arabia, is both onshore and offshore.

The company also said its East-West pipeline would soon be expanded to carry 7 million barrels a day of crude, from 5 million currently.

–Reuters contributed to this report


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: patti domm
Keywords: news, cnbc, companies, saudi, companys, million, company, prices, reliance, told, billion, oil, public, ready, aramco


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European stocks close lower amid trade war worries; Tullow Oil up 20%

Banks were the biggest fallers, led by a 5% slide for CYBG, while chemicals stocks were the best performers. Trade talks are set to resume in Washington in early September after a new 10% tariff on an additional $300 billion worth of Chinese goods comes into effect on September 1. President Donald Trump told reporters on Friday that the U.S. is not ready to strike a trade deal with China just yet. AMS stock plunged almost 12% while Osram shares leaped over 10% on the news. Meanwhile, Tullow Oil


Banks were the biggest fallers, led by a 5% slide for CYBG, while chemicals stocks were the best performers. Trade talks are set to resume in Washington in early September after a new 10% tariff on an additional $300 billion worth of Chinese goods comes into effect on September 1. President Donald Trump told reporters on Friday that the U.S. is not ready to strike a trade deal with China just yet. AMS stock plunged almost 12% while Osram shares leaped over 10% on the news. Meanwhile, Tullow Oil
European stocks close lower amid trade war worries; Tullow Oil up 20% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: elliot smith
Keywords: news, cnbc, companies, tullow, peso, close, amid, lower, set, european, osram, shares, worries, chinese, war, stoxx, president, trade, oil, stocks, talks


European stocks close lower amid trade war worries; Tullow Oil up 20%

The pan-European Stoxx 600 closed provisionally down nearly 0.3%. The index had posted an almost 1% gain earlier in the session. Banks were the biggest fallers, led by a 5% slide for CYBG, while chemicals stocks were the best performers.

The People’s Bank of China set the official midpoint reference for its yuan currency at 7.0211 per dollar on Monday, exceeding the psychological barrier of 7 per dollar for the third consecutive session.

Trade talks are set to resume in Washington in early September after a new 10% tariff on an additional $300 billion worth of Chinese goods comes into effect on September 1. President Donald Trump told reporters on Friday that the U.S. is not ready to strike a trade deal with China just yet.

On Wall Street, stocks fell as investor sentiment was knocked by concerns around slowing global economic growth. Goldman Sachs said on Sunday that fears of a recession as a result of the trade war are increasing, and the investment bank no longer expects a trade deal before the 2020 U.S. presidential election.

Elsewhere, the Argentinian peso sold off steeply Monday after the country’s center-right President Mauricio Macri performed poorly in primary elections.

Macri lost by a far greater margin than expected on Sunday, early official results showed, casting serious doubt over the incumbent’s re-election chances in October. The peso slipped more than 30% at one stage to a record low as traders demanded 65 to the U.S. dollar.

Hong Kong was also in focus as tensions between Chinese authorities and protesters escalated. Hong Kong International Airport, one of the world’s busiest terminals, was forced to cancel all departures on Monday amid mass disruption due to anti-government protests.

Back in Europe, Trump’s national security advisor John Bolton arrived in London Sunday for talks where he is expected to urge Britain to take a tougher stance on Iran and Chinese telecommunications firm Huawei.

Investors will also have an eye on political developments in Italy after Deputy Prime Minister Matteo Salvini’s Lega party filed a no-confidence motion to bring down the government on Friday.

In corporate news, Apple supplier AMS said Sunday that it has made an all-cash takeover offer of 38.5 euros ($43.15) per share for German lighting group Osram Licht. AMS stock plunged almost 12% while Osram shares leaped over 10% on the news.

Meanwhile, Tullow Oil shares surged 20% to lead the Stoxx 600 after it announced a major oil discovery in Guyana.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: elliot smith
Keywords: news, cnbc, companies, tullow, peso, close, amid, lower, set, european, osram, shares, worries, chinese, war, stoxx, president, trade, oil, stocks, talks


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Oil rises 0.8% despite fears of a global economic downturn

Oil prices rose on Monday despite worries about a global economic slowdown and the ongoing U.S.-China trade war, which has reduced demand for commodities such as crude. However, Kuwait’s Oil Minister Khaled al-Fadhel said fears of a global economic downturn were “exaggerated” and global crude demand should pick up in the second half, helping to gradually reduce oil inventories. “We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at


Oil prices rose on Monday despite worries about a global economic slowdown and the ongoing U.S.-China trade war, which has reduced demand for commodities such as crude. However, Kuwait’s Oil Minister Khaled al-Fadhel said fears of a global economic downturn were “exaggerated” and global crude demand should pick up in the second half, helping to gradually reduce oil inventories. “We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at
Oil rises 0.8% despite fears of a global economic downturn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, despite, energy, downturn, trading, crude, fears, rises, economic, wti, prices, trade, global, oil, demand, 08


Oil rises 0.8% despite fears of a global economic downturn

A drilling crew secures a stand of drill pipe into the mouse hole on a drilling rig near Midland, Texas February 12, 2019.

Oil prices rose on Monday despite worries about a global economic slowdown and the ongoing U.S.-China trade war, which has reduced demand for commodities such as crude.

International benchmark Brent crude futures were at $58.53 a barrel, up 0.02% from their previous settlement. U.S. West Texas Intermediate (WTI) futures were at $54.93 per barrel, up 0.8% from their last close.

Both benchmarks had fallen earlier in the day, with Brent hitting a session low of $57.88 and WTI a session low of $53.54.

“What we have noticed recently is a different perception of risk in different geographies,” said Emily Ashford, executive director of energy research at Standard Chartered.

“Often the price reactions during Asia or London trading are reversed during U.S. trading. Prices seem to be following that pattern today.”

The third quarter is fundamentally the strongest season for oil demand as drivers take to the roads for summer holidays, but the trade dispute between the United States and China has weakened demand and pressured oil prices.

U.S. President Donald Trump said on Friday he was not ready to make a deal with China and even called a September round of trade talks into question.

Germany’s Ifo economic institute said its quarterly survey of nearly 1,200 experts in more than 110 countries showed that its measures for current conditions and economic expectations have worsened in the third quarter.

However, Kuwait’s Oil Minister Khaled al-Fadhel said fears of a global economic downturn were “exaggerated” and global crude demand should pick up in the second half, helping to gradually reduce oil inventories.

OPEC members continue to cut production to drain global oil stocks, with the Saudis cutting more than their agreed quota, but analysts said more reductions were needed to support prices due to a fall in demand and non-OPEC supply growth next year.

“If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels,” Bernstein Energy said in a note on Monday.

“We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel.”

The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008.

India’s imports of crude oil have also stalled in recent months, tallying with weaker economic growth in the country.


Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, despite, energy, downturn, trading, crude, fears, rises, economic, wti, prices, trade, global, oil, demand, 08


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