$1.1BN DEAL | Page 4 BA OWNER | Page 9 French retailer IAG operating Casino to sell profi t up Big C Vietnam to €155mn Saturday, April 30, 2016 Rajab 23, 1437 AH HIGHER OIL LIFTS OUTLOOK: Page 12 US, eurozone GULF TIMES infl ation expectations BUSINESS diverge German banks see no quick pick up Opec oil output near in Iran business Reuters January in return for the Berlin Islamic Republic complying with a deal to curb its nuclear ambitions. Restoring German banks’ German Economy Minister record high in April financial ties with Iran will Sigmar Gabriel will co-chair take time given debt owed an economic conference Supply rises by 170,000 produce Murban crude. Of the to Berlin and transparency with Iranian counterpart Ali bpd to 32.64mn bpd; Iranian countries that reduced output, concerns, the head of the Tayyebnia in Tehran May supply rises further after the largest decline was in Ku- German banking association 2-3, and German companies sanctions lifted; output wait due to a three-day work- said yesterday, dampening see the event as a potential climbs in Iraq; UAE pumps ers’ strike which temporarily expectations days before a catalyst for doubling exports more as maintenance ends; more than halved oil output and business summit in Tehran. to Iran to €5bn. But the strike hits Kuwait output; curbed refi nery operations. Iran owes Germany about German government has said Nigeria, Venezuela supply Nigerian output fell due to €500mn ($569mn) under guarantees for exports to Iran falls the continued lack of Forcados so-called Hermes covers, will not be renewed as long as crude exports and a brief dis- a German government Tehran’s debt is not paid. Reuters ruption to shipments of another arrangement that protects A spokeswoman for the London stream, Brass River. Repairs on a German companies if foreign German economy ministry pipeline to the Forcados terminal debtors fail to pay. said yesterday both sides were will take until June, the govern- “Rebuilding ties with Iran holding “in-depth talks” on the pec’s oil output rose ment said. requires patience,” Michael issue and these could soon be in April to close to the Loading problems, power fail- Kemmer, head of banking concluded. Ohighest level in recent ures and other problems dented association BDB, told She added companies could history, a Reuters survey found Venezuela’s supply by an estimat- Reuters. “To begin with, the apply for Hermes export yesterday, as production in- ed 40,000 bpd. Oil services fi rm transactions regimen has to guarantees and a decision creases led by Iran and Iraq more Schlumberger is cutting activity work again before the next could be made immediately than off set a strike in Kuwait and in the cash-strapped nation, pos- step of financing projects can after an agreement. other outages. ing a threat to future output. take place.” Credit insurer Coface said Top exporter Saudi Arabia, Saudi Arabia kept output German industry has been this week there was a lack of however, made no major change steady compared with March, hoping for a surge in exports reliable information for doing to output, the survey found, sources in the survey said, even to Iran after international risk assessments on Iranian despite the kingdom hinting it though use in domestic power sanctions were lifted in corporate partners. could boost supply after Opec Supply from the Opec rose to 32.64mn barrels per day (bpd) this month, from 32.47mn bpd in March, plants is rising. Saudi produc- and non-member nations failed according to the survey, based on shipping data and information from sources at oil companies, the Opec tion was estimated at 10.15mn to agree to freeze output at a and consultants. bpd versus 10.18mn in March. meeting on April 17. “Exports are lower,” said a Oil has rebounded more than source who monitors Saudi out- 75% from a 12-year low in Janu- Brent oil set for biggest monthly gain in seven years put. “The month is not over yet ary to reach $48 a barrel, helped so let’s wait for the fi nal number, EU roaming charges by the freeze initiative and signs Reuters ... correlate with fundamentals,” said Hamza but that’s what I am seeing here that lower prices are starting to London Khan, senior commodity strategist at ING. “The and now.” curb higher-cost supply, despite fundamentals - high stocks, high production — Saudi oil output will edge up drop sharply today high inventories and other per- haven’t changed.” close to record highs in coming sistent reminders of a glut. Brent crude was heading for its biggest monthly Analysts polled by Reuters raised their average weeks to meet summer demand “The market is massively rise in seven years yesterday, touching 2016 forecast for Brent in 2016 to $42.30 per barrel, the for power but is unlikely to be AFP than an extra €0.05 per minute oversupplied,” said Eugen Wein- highs as a weak dollar and falling US production second consecutive month of increases. pushed to the limit and fl ood Brussels for calls, €0.02 per SMS and berg, analyst at Commerzbank tempered concerns about an excess of physical oil. Bank of America Merrill Lynch said in a note that global markets, Saudi-based in- 0.05 per megabyte of data. in Frankfurt. “This rally doesn’t A looming rise in Middle East output capped “non-Opec oil supply is indeed hanging off a cliff ”, dustry sources said. Currently, the cap is more have strong legs.” gains, but investor sentiment held the optimism and estimated that global output would contract Production may rise to around obile phone roaming than triple that at €0.19 per Supply from the Organisa- that has helped lift oil futures nearly 80% higher year on year in April or May for the first time since 10.5mn barrels per day (bpd) dur- fees in the EU will fall minute for calls, €0.06 per SMS tion of the Petroleum Exporting than January lows. 2013. ing summer, the sources said. Msharply today, the last and 0.20 euros per megabyte of Countries rose to 32.64mn bar- Brent futures were trading at $48.26 a barrel at A weakening dollar also supported oil by making Supply in April has held steady step before they are abolished data. rels per day (bpd) this month, 1351 GMT, up 12¢ from their last close. US crude dollar-priced crude cheaper for holders of other to slightly lower at about 10.15mn completely for Europeans next “We welcome the slashing of from 32.47mn bpd in March, ac- was up 57¢ at $46.60 a barrel, with both contracts currencies. bpd, said three industry sources year. roaming prices,” said Monique cording to the survey, based on hitting 2016 highs earlier in the session. There are growing risks that production in who monitor Saudi output. The European Union will Goyens, head of the European shipping data and information Investment bank Jeff eries said the market “is Opec member Venezuela could decline. Risk But Saudi-based industry scrap phone roaming charges Consumer Organisation. from sources at oil companies, coming into better balance” and would flip into consultancy Eurasia Group said the state was sources told Reuters that Riyadh outright on June 15, 2017 end- “Today’s consumers do not Opec and consultants. undersupply in the second half of the year. running out of cash to keep its oil pumps does not plan to dump more oil ing fees loathed by millions of understand why crossing a That almost matches Janu- But others warned that the rally was happening running. into the market if there is no de- holidaymakers and business border in Europe has to result ary’s 32.65mn bpd, when Indo- too soon, driven in large part by investors taking “Mounting problems will probably lead to a mand. travellers across Europe. in soaring phone and Internet nesia’s return as an Opec mem- speculative positions. decline of 100,000-150,000 bpd this year,” The sources said production “We’re in the home stretch costs,” she said. ber boosted production and “The issue is that we haven’t seen price rallies Eurasia Group said. would likely stay at 10.2-10.3mn now before the end of roaming The end of roaming charges output from the other 12 mem- bpd and could rise by some charges in 2017,” Andrus Ansip, is a key element of the EU’s ef- bers was the highest in Reuters 200,000-300,000 bpd in the the European Commission’s fort to create a far more unifi ed survey records, starting in 1997. ary. Tehran, which wants to re- However, some of the crude may depending on whether tankers hot summer months to around vice-president for the digital market in Europe, especially Opec output has surged since cover the market share it lost, has have come from storage, giving a loading at the end of the month 10.5mn. single market, said yesterday. for digital and communication it abandoned in 2014 its historic refused to limit its supply until it temporary boost to April supply, are treated as April or May. Ship- Opec meets on June 2 in Vi- “This is not only about Eu- services. role of cutting supply to prop up reaches pre-sanctions output. sources said. ments of Kurdish crude from the enna and may discuss the freeze ropeans saving money, this is The EU mooted plans last prices, led by higher supply from At 3.40mn bpd, Iranian out- Iraq, which saw the fastest north also rose.