Oil Above $50 for First Time This Year

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Oil Above $50 for First Time This Year BUSINESS | Page 1 SPORT | Page 1 Mourinho signs INDEX United DOW JONES QE NYMEX QATAR 2, 20 COMMENT 18, 19 ARAB WORLD 3, 4 BUSINESS 1-12 Shale oil ‘stifl ing’ Opec’s contract 17,828.91 9,716.48 49.57 INTERNATIONAL 5-16 CLASSIFIED 8 -22.60 +10.74 +0.01 ISLAM 17 SPORT 1-8 -0.13% +0.11% +0.02% market balancing role Latest Figures published in QATAR since 1978 FRIDAY Vol. XXXVII No. 10101 May 27, 2016 Sha’baan 20, 1437 AH GULF TIMES www. gulf-times.com 2 Riyals In brief Oil above REGION | Co-operation $50 for fi rst time GCC water grid HE Foreign Minister Sheikh Mohamed bin Abdulrahman al-Thani took part in the Fourth Joint Ministerial Meeting on Strategic Dialogue between the Gulf Co-operation Council (GCC) and Russia held in Moscow yesterday. The meeting dealt with means scope explored of enhancing co-operation between the GCC countries and Russia in various areas of mutual concern as well as the overall Senior off icials of the Gulf region’s developments at the regional and international levels. power and water sectors have explored the possibility and scope this year of establishing a water grid between the member states. The deliberations AFP lar caused by rising expectations of a US were held yesterday during 29th London rate hike next month curtailed gains. Ministerial Committee Meeting for A fi rmer greenback makes the dol- co-operation in electricity and water GCC, Russia agree to lar-priced commodity more expensive, in Riyadh, Saudi Arabia. The Qatari il prices jumped yesterday above hampering demand. side at the meeting was led by HE $50 for the fi rst time this year as The tip fi nally above the psychologi- the Minister of Energy and Industry Oa long-lasting global supply glut cal level came thanks to offi cial data on Dr Mohamed bin Saleh al-Sada showed increased signs of easing. Wednesday that showed US commercial (pictured). Discussions were also strengthen friendship In a boost for countries exporting crude inventories fell by 4.2mn barrels held on a electricity linkage project, crude, including the likes of crisis-hit last week, indicating strong demand in unified water strategy and some of QNA and suppress terrorist acts through urged all Yemeni parties to abide by Venezuela, prices are once more on the the world’s top oil consumer. the other new projects involving the Moscow increased international co-operation. it, expressing their continued strong rise having nosedived from above $100 The Bank of Canada meanwhile said GCC States. The ministerial meeting The ministers welcomed the estab- support for the UN envoy, Ismail Ould a barrel two years ago to around $27 in that the destruction by fi re of homes where final drafts were prepared was lishment of the Islamic Military Alli- Sheikh Ahmed. early 2016. and businesses and the halt to oil pro- chaired by Qatar General Electricity oreign ministers of GCC and ance to Fight Terrorism and supported Regarding ties with Iran, the min- Futures had slumped owing largely duction would shave about 1.25 per- and Water Corporation president Russia have agreed to continue co-operation between Russia and isters emphasised the importance to a global supply glut, fed by rising centage points off the country’s gross and senior engineer Essa bin Hilal Fco-operation on the regional the US-led International Coalition that relations between GCC member production of oil extracted from North domestic product in the second quarter. al-Kuwari. and international issues of mutual in- against ISIS. states and Iran be based on the prin- American shale rock that competed in “News about the US inventory, cou- terest. As for Syria, the two sides reaf- ciples of good neighbourhood, non- the marketplace with crude from key pled with Canada’s announcement, In a joint statement issued after the fi rmed the need to preserve the unity, interference in internal aff airs, respect producers including the Opec organisa- gave prices the boost it needed to push QATAR | Offi cial fourth round of the ministerial strate- sovereignty, territorial integrity and of independency, sovereignty, territo- tion, Russia and Norway. past the $50 mark,” CMC Markets trader Working hours gic dialogue between GCC and Russia, stability of Syria, and the importance rial integrity, resolutions of disputes But in recent weeks, oil prices have Alex Wijaya said. the two sides reaffi rmed their shared of reaching a political solution to the through peaceful means, according to rebounded on lower output caused by After reaching multi-month highs, during Ramadan intention to strengthen and develop crisis that preserves the lives of Syr- the UN wildfi res in Canada, as well as unrest in prices retreated as investors banked HE the Deputy Prime Minister friendship and collaboration in vari- ians and leads to cessation of hostili- Meanwhile, the ministers agreed Nigeria, Africa’s biggest oil producer. their profi ts. and Minister of State for Cabinet ous fi elds. ties on the basis of the UN. that despite ongoing instability in the Outages in Venezuela have also lent Around 1600 GMT, Brent crude for Aff airs Ahmed bin Abdullah bin Zaid The ministers reaffi rmed that they On the Yemeni front, the ministers region, the task of settling the Arab- support. delivery in July stood at $49.85, up 11 al-Mahmoud has issued a circular will remain united in combatting ter- welcomed the cessation of hostilities Israeli confl ict should remain one of Yesterday, benchmark oil contract cents from yesterday’s close. on the working hours during the rorism and to work together to prevent in Yemen, pledged to support it, and top priorities. Brent North Sea crude struck $50.51 WTI for July won 10 cents to $49.66 holy month of Ramadan for the a barrel - the fi rst time above $50 and a barrel. ministries, government bodies and highest level since early November. Shailaja Nair at global energy infor- public institutions. On the occasion US contract West Texas Intermediate mation provider Platts said that it re- of the advent of Ramadan for the (WTI) hit $50.21 a barrel - a peak since mained to be seen whether oil producers Hijri year 1437, it was decided that the start of October. would fi nd respite after prices breached working hours for civil employees “Oil has broken through the $50 per the $50 mark. will be five hours a day from 9am till barrel level...supported by government “There’s a little bit of demand but not 2pm, the circular said. Qatar stuns debt market data that illustrated steeper than ex- like suddenly we’ve found a huge pocket pected drawdown in US crude oil stock- of demand, we are not seeing that. piles last week,” said analyst Dorian Lu- Whether it will stay above $50 or not, REGION | Diplomacy cas at energy consultancy Inenco. that is going to tell us whether the pro- UN envoy for Yemen Crude had been edging close to $50 ducers can breathe a sigh of relief,” she with record $9bn bond for the last fortnight but a strong dol- said. hails Qatar’s role UN envoy to Yemen, Ismail Ould Bloomberg into the market and to some extent hosting the 2022 soccer World Cup. Cheikh Ahmed, has commended Dubai it is going to reprice the region,” said The Qatar Interbank Off ered Rate, the eff orts of Qatar, Kuwait Abdul K Hussain, who helps oversee which is used to price local-currency and the United Nations, which $1.5bn as the chief executive offi cer of debt, rose to the highest level since led to the return of the Yemeni atar’s unprecedented $9bn Eu- Mashreq Capital DIFC Ltd in Dubai. January 2011 this week. More Qatar-Saudi fl ights government’s delegation to the robond sale has pressed the re- “For countries like Saudi and Kuwait, The average yield on Middle East peace consultations in Kuwait. Qset button for the Gulf region’s and everybody else who has announced bonds dropped 25 basis points this atar and Saudi Arabia have de- the two countries would reach 91. In a press conference yesterday, debt market. potential deals, it defi nitely means year to 4.8% on Wednesday, according cided to increase the number of The agreement signed yesterday will Ould Cheikh Ahmed said he visited The country sold $9bn of bonds in it’s very doubtful they would do any- to JPMorgan Chase & Co indexes. The Qfl ights between the two coun- help Qatar Airways operate 14 weekly Doha on Sunday to participate in three maturities on Wednesday, al- thing for at least the next three or four yield on the Abu Dhabi government’s tries. An agreement to this eff ect was fl ights to such airports as: Tabuk, Gi- the 16th edition of Doha Forum most double the amount expected by months.” 10- year bond sold last month was little reached yesterday during the 3rd Mid- zan, Abha, Yanbu, Al Ahsa, Ela and Hail, and attended a series of meetings analysts. The issue helped push 2016 Energy-exporting nations are in- changed at 3.38pm local time yesterday. dle East Aviation Safety Summit, the in addition to increasing the number of of concern to the Yemeni issue. off erings from the Middle East and creasingly turning to international Qatar’s bonds comprised $3.5bn Qatar News Agency reported. cargo fl ights for up to 14 weekly. He added that the United Nations North Africa, which includes Saudi capital markets following a halving in fi ve-year notes priced to yield 120 The number of fl ights between Doha Qatar Civil Aviation Authority (CAA) didn’t and wouldn’t disappoint the Arabia and the UAE, to $29.3bn, al- of oil prices since 2014, which has basis points more than US Treasuries, and destinations in Saudi Arabia such chairman Abdulla bin Nasser Turki Yemenis and will continue its eff orts ready a record for the fi rst half of a forced some governments to raid the same amount in 10-year bonds at as Riyadh, Jeddah and Dammam will al-Subaei, and Saudi Arabia’s Civil to urge the parties involved in peace year, according to data compiled by their foreign cash reserves.
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