4 April 19, 2020 ECONOMIC NEWS TSE Records Biggest Iran Set to Stop Crude Sell-Off TEHRAN (Dispatches) - Irani- an President Hassan Rouhani has Daily Jump Ever called on Petroleum Minister Bijan Namdar Zangeneh to expedite the The figures recorded the stron- production of petrochemicals and gest one-day performance for the avoid the crude oil sell-off. TSE in history, said the local me- “This is a great opportunity for dia reports. us to distance ourselves as much It comes several days after a as possible from the crude oil major government-run invest- sales,” Rouhani said. ment holding, known as Shasta, “Speeding the ministry’s plans launched its initial public offering to boost petroleum products and in a subsidiary market of the TSE avoiding the raw materials’ sale known as Iran Fara Bourse (IFB) could affect the sharp fluctuations to attract 70 trillion rials, or around in the global market and reduce $440 million, in new finances. oil prices helping the minimum Saturday was a busy day for the economic stability,” he added. IFB too, where there is a cap on Iranian President called the projects, they should be referred to produce 3.7 million barrels of trades for securities and other fi- Iranian New year as the year of to the special headquarters at the crude oil. nancial instruments. preparation and implementation presidential office, so that they Iran’s Deputy Oil Minister for TEHRAN (Press TV) - Iran’s recorded for Mobarakeh Steel Reports said a total of 1.77 bil- of great development and infra- can be removed as soon as pos- Planning Houshang Falahatian main stock exchange the TSE has (MSC), Iran National Copper lion shares were traded in the mar- structure projects in the country sible.” told reporters that the country has recorded its biggest daily jump as (NICICO) and Mapna Energy, said ket with a value of nearly 3 tril- and asked Zangeneh to plan in a Zangeneh also presented a re- the capability of exporting around main index in the market tops an the reports. lion rials ($187.5 million). That way that the country’s major oil port on the process of oil projects, 2 million barrels of crude per day. all-time high of 668,320 points. TSE’s price index, known as caused the IFB’a main index IFX projects will be put into operation global oil market and oil dealings Falahatian noted that the main Reports in the local media said TEPIX, also rose 3.52% to hit to rise by 254 points to reach 8,438 this year according to the sched- with other countries. aim pursued by the cruel sanc- Tehran Stock Exchange main in- 233,507 points, as 5.7 billion points. ule. In a relevant event on February tions imposed against Iran is to dex TEDPIX rose by 23,219 points shares changed hands in more than Investing in shares have become Rouhani noted, “If there are 7, 2020, a senior oil official said prevent the country from export- on Saturday, a surge of 3.49 per- 804,000 number of trades. very popular in Iran over the past any barriers in the way of these that Iran has the daily capacity ing its surplus oil output. cent compared to figures recorded Trades on Saturday added an- months as many businesses and at the end of the previous day of other $380 million to TSE’s total households are no longer inter- trade in the market. value, bringing it to over 25,000 ested in low returns on gold or for- The biggest gains on shares were trillion rials (nearly 157 billion). eign currencies. Petrochemical Plant Hits Output Records

TEHRAN (Shana) – Iran’s Tond- India Sends 2nd Humanitarian Aid to gouyan Petrochemical Plant has reg- istered new production records in the Afghanistan via Iran’s Chabahar previous Iranian calendar year which ended on March 19. TEHRAN (Tasnim) – An Indian social media. stan decided to jointly establish a The plant’s output was at 1.08 million tons during the year which ship carrying a major consignment On Friday, the Director-General trade route for land-locked Central showed a 15% year-on-year growth. of 75,000 tons of wheat for Afghani- of Ports and Maritime Department Asian countries. Moreover, the facility, as the stan has arrived at Iran’s southeast- of Sistan and Balouchestan Prov- India sent its first consignment of only supplied of polyethylene tere- ern port of Chabahar, a report said. ince Behrouz Aqaei, confirmed that wheat to Afghanistan through Cha- phthalate (PET), raised its sales of “Over 251 containers carrying the the cargo had arrived at the port and bahar Port back in 2017. the item by 10% from the preced- first consignment of 5,022 MT of will be delivered to Afghanistan via Later on, in February 2019, the ing year and brought it to 630,000 wheat out of a total gift of 75,000 land borders. Afghanistan-Iran-India trade cor- tons. MT from India to Afghanistan set Afghanistan’s Ambassador to ridor for the trade between the two Also the plant’s PTA-1 production sail from the Kandla Port to the Tehran Abdul Ghafoor Liwal, who countries through Chabahar Port stood at 267,466 tons which was Chabahar Port on Sunday. The re- visited Chabahar port concurrent was officially inaugurated. 20% more than the item’s yield in maining consignments will follow with the arrival of the Indian ship- India which initially committed the previous year. in the weeks ahead. India is gifting ment, voiced his country’s grati- up to $500 million for the develop- 5,00,000 tablets of HydroxyChlo- tude for both Iran and India and ment of Chabahar Port along with roquine to Afghanistan for health expressed hope that the shipment associated roads and rail lines, Gold Slides 2% as U.S. Reopening Talks Spark Profit-Taking professionals and COVID-19 posi- would be transferred to his country doubled the allocated funding for NEW YORK (Reuters) - Gold tive cases,” the Embassy of India as soon as possible. the development of the port in its dropped about 2% after in Kabul said recently in a post on In 2016, Iran, India, and Afghani- national budget bill for 2020. President Donald Trump’s new guidelines to re-open the U.S. econo- my and encouraging early data related to a potential COVID-19 treatment Crude Oil Held in Sea Storage Hits drove investors towards riskier assets. Spot gold was down 1.9% at New Record at 160mn Barrels: Sources $1,685.84 an ounce by 1:55 p.m. EDT LONDON (Reuters) - Traders (1755 GMT), more than $60 lower are storing an estimated record than the 7-1/2 peak hit earlier this 160 million barrels of oil on ships week on concerns over the worst re- cession in decades. - double the level from two weeks “Gold and stocks are negatively ago as they seek to tackle a glut of correlated today with the overnight stocks created by a slide in global equity rally pressuring gold. The demand from the coronavirus, guidelines from Trump for re-opening gains it could trigger more hit U.S. economy. shipping sources say. the economy have boosted equity profit-taking in gold,” he added. Bullion has on occasion moved in Organization of the Petroleum markets,” said Tai Wong, head of base World stock markets sprinted to- tandem with stock markets this year, Exporting Countries (OPEC) and precious metals derivatives trad- wards a second straight week of gains with recent sharp sell-offs prompting and other producers including ing at BMO. after Trump laid out guidelines for investors to sell precious metals to Russia have agreed a record cut “If stocks can extend overnight gradually reopening the coronavirus- cover their losses elsewhere. in output from May of 9.7 mil- lion barrels per day, or almost Ford Issues $8bon Debt Securities 10% of global supply, to help support prices and curb oversup- chor, they added. tango, where forward prices are After Virus Causes $2 Billion Loss ply. The last time floating storage higher than immediate prices. At the same time traders have reached levels close to this was This market structure encourag- NEW YORK (Reuters) - Ford Motor Co has raised $8 deal. rushed to find storage on land in 2009, when traders stored es traders to park barrels in stor- billion from corporate debt investors to shore up its cash In an environment where interest rates on cash sav- reserves as the coronavirus outbreak pummeled vehicle ings are close to zero, Ford will pay investors interest and at sea in what is believed to over 100 million barrels at sea age in the hopes of selling them sales and production, resulting in an estimated loss of of between 8.50% and 9.625% on the new debt securi- before offloading stocks. for a profit later. be the biggest oil glut in history. about $2 billion for the first quarter. ties. Shipping sources said oil held “This is an unprecedented time There are over 770 VLCCs in The Dearborn, Michigan-based company, which lost There was around $40 billion worth of demand from in floating storage on tankers had in the history of tankers and the world and analysts have es- its investment-grade status in March, raised new funds investors across the three debt packages, according to reached at least 160 million bar- while VLCC tanker storage is timated as many as 100 to 200 with a three-part debt offering, according to a regula- a person familiar with the matter. rels including 60 supertankers, garnering the headlines, smaller supertankers could be deployed tory filing. Ford had earlier drawn down over $15 billion from known as very large crude car- crude and product tankers are for floating storage in coming Investors said Ford benefited from the U.S. Federal revolving credit lines to ride out the pandemic, which riers (VLCCs), which can each also being used for storage,” months. Reserve’s move last week to backstop debt offerings forced the shutdown of its North American and Euro- hold 2 million barrels. Gregory Lewis, shipping analyst “The eventual wind down of by companies that lost investment-grade credit ratings pean factories during the past month. This compared with 25 to 40 with global financial services this inventory glut will be most after the COVID-19 crisis accelerated in the United Separately, General Motors Co disclosed in a regula- VLCCs already chartered with group BTIG, said in a note this painful to tanker demand, but States, International Financing Review reported on tory filing that it had entered into a 364-day revolving Friday. credit agreement of $1.95 billion. The automaker said storage options at the start of week. in the meantime floating stor- “Today’s deal is a good sign of the growing confi- it has allocated the credit line for exclusive use by its Locations typically include the age remains the only outlet for a April and fewer than 10 VLCCs dence around the improving market backdrop with financial services business. in February, the sources said. U.S. Gulf and Singapore, where mismatched production and con- respect to liquidity as well as more promising views Ford on Friday said it had to put up additional guar- Smaller tankers were also be- major oil hubs are situated. sumption backdrop,” said Jona- around the economic outlook,” said Dan Mead, head antees for earlier loans - not the notes sold Friday - be- ing used, which was also boost- The crude market is currently than Chappell with investment of investment grade syndicate at Bank of America Se- cause it has not maintained an investment-grade status. ing volumes being held at an- trading in what is known as con- banking advisory Evercore ISI. curities, which was one of the lead banks on the Ford It has suspended its dividend for the quarter.