This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2019/sep/17/markets-oil-saudi-trump-wework-postpones-float-business-live
The article has changed 15 times. There is an RSS feed of changes available.
| Version 10 | Version 11 |
|---|---|
| Oil price shock leaves markets on edge – business live | Oil price shock leaves markets on edge – business live |
| (32 minutes later) | |
| The New York stock exchange has dipped into the red at the start of trading, adding to yesterday’s declines. | |
| The Dow Jones industrial average is down 89 points or 0.33%, as worries about the Middle East mount. | |
| U.S. stocks open lower https://t.co/sPi2Ofe7U5 pic.twitter.com/BI2iASKaIY | |
| Here’s a video clip of Iran’s supreme leader, Ayatollah Ali Khamenei, speaking today: | |
| It’s important to remember just how big Saudi Aramco is. | It’s important to remember just how big Saudi Aramco is. |
| As this chart from the Economist shows, Aramco produces nearly as much oil as Shell, Exxon, Total and Chevron put together. | As this chart from the Economist shows, Aramco produces nearly as much oil as Shell, Exxon, Total and Chevron put together. |
| And given the relatively low cost of extracting crude in Saudi Arabia, it makes more profits than that quartet -- plus BP as well. | And given the relatively low cost of extracting crude in Saudi Arabia, it makes more profits than that quartet -- plus BP as well. |
| How important is Saudi Aramco to global oil business? … well … add up all the Western oil majors and that gives you an idea. https://t.co/h1WXVg0h6X pic.twitter.com/XFhnjRreY5 | How important is Saudi Aramco to global oil business? … well … add up all the Western oil majors and that gives you an idea. https://t.co/h1WXVg0h6X pic.twitter.com/XFhnjRreY5 |
| So by hitting than half of Aramco’s production capacity, last weekend’s attacks have had a serious impact. | So by hitting than half of Aramco’s production capacity, last weekend’s attacks have had a serious impact. |
| King Salman bin Abdulaziz chairs the Cabinet's session, He expresses thanks and appreciation to the leaders of countries, officials of states, regional and international organizations and all those who expressed condemnation of the sabotage attack on two Aramco plants#Saudi pic.twitter.com/DMynKPdnHD | King Salman bin Abdulaziz chairs the Cabinet's session, He expresses thanks and appreciation to the leaders of countries, officials of states, regional and international organizations and all those who expressed condemnation of the sabotage attack on two Aramco plants#Saudi pic.twitter.com/DMynKPdnHD |
| Saudi Arabia’s King Salman has insisted that Riyadh can deal with the consequences of the attacks on its oil production installations. | Saudi Arabia’s King Salman has insisted that Riyadh can deal with the consequences of the attacks on its oil production installations. |
| King Salman chaired a meeting of Saudi ministers today, where the cabinet reviewed the damage. | King Salman chaired a meeting of Saudi ministers today, where the cabinet reviewed the damage. |
| In a statement, the cabinet said the Saudi Kingdom vowed to “defend its land and vital installations”, and that Saturday’s attack was intended to disrupt global oil supplies. | In a statement, the cabinet said the Saudi Kingdom vowed to “defend its land and vital installations”, and that Saturday’s attack was intended to disrupt global oil supplies. |
| The cabinet also called on world governments to confront the attacks on Aramco’s production facilities “regardless of their origin” (thanks to Reuters for the quotes). | The cabinet also called on world governments to confront the attacks on Aramco’s production facilities “regardless of their origin” (thanks to Reuters for the quotes). |
| #BREAKING: King Salman of #Saudi Arabia: Saudi Arabia will defend its territory and facilities no matter where these attacks come from | #BREAKING: King Salman of #Saudi Arabia: Saudi Arabia will defend its territory and facilities no matter where these attacks come from |
| Earlier today Iran’s supreme leader ruled out negotiations with the US “at any level”, claiming that Donald Trump’s Middle East strategy was “worthless”. | Earlier today Iran’s supreme leader ruled out negotiations with the US “at any level”, claiming that Donald Trump’s Middle East strategy was “worthless”. |
| Ayatollah Ali Khamenei was speaking a day after Washington blamed Tehran for attacks on Saudi oil installations. | Ayatollah Ali Khamenei was speaking a day after Washington blamed Tehran for attacks on Saudi oil installations. |
| The AFP newswire has more details: | The AFP newswire has more details: |
| Ayatollah Ali Khamenei said the US adopted a policy of “maximum pressure” on Iran because it believes it cannot bring the Islamic republic to its knees through other means. | Ayatollah Ali Khamenei said the US adopted a policy of “maximum pressure” on Iran because it believes it cannot bring the Islamic republic to its knees through other means. |
| The leader was speaking after devastating drone attacks at the weekend that halved oil output of Iran’s regional arch-rival Saudi Arabia - the world’s top crude exporter. | The leader was speaking after devastating drone attacks at the weekend that halved oil output of Iran’s regional arch-rival Saudi Arabia - the world’s top crude exporter. |
| “The policy of ‘maximum pressure’ against the Iranian nation is worthless and all Islamic Republic of Iran officials unanimously believe there will be no negotiations with the US at any level,” he said in a televised address. | “The policy of ‘maximum pressure’ against the Iranian nation is worthless and all Islamic Republic of Iran officials unanimously believe there will be no negotiations with the US at any level,” he said in a televised address. |
| Tensions between Iran and the US and its allies have threatened to boil over since May last year when President Donald Trump abandoned a 2015 nuclear deal and began reimposing sanctions in its campaign of “maximum pressure”. | Tensions between Iran and the US and its allies have threatened to boil over since May last year when President Donald Trump abandoned a 2015 nuclear deal and began reimposing sanctions in its campaign of “maximum pressure”. |
| The rising tensions in the Middle East, with Iran seizing several oil tankers and Houthi rebels attacking Saudi targets, had already hurt the markets. | The rising tensions in the Middle East, with Iran seizing several oil tankers and Houthi rebels attacking Saudi targets, had already hurt the markets. |
| Shares have been dropping in Riyadh in recent weeks, and have now lost all this year’s gains: | Shares have been dropping in Riyadh in recent weeks, and have now lost all this year’s gains: |
| Saudi Arabian stocks sank after drone strikes highlighted the vulnerability of the kingdom’s oil facilities to terrorist attacks https://t.co/cyakaH4H54 pic.twitter.com/jXEkezKedf | Saudi Arabian stocks sank after drone strikes highlighted the vulnerability of the kingdom’s oil facilities to terrorist attacks https://t.co/cyakaH4H54 pic.twitter.com/jXEkezKedf |
| Back in the UK, plans for a huge mine on the North Yorkshire Moors have been plunged into doubt, putting over 1,000 jobs at risk. | Back in the UK, plans for a huge mine on the North Yorkshire Moors have been plunged into doubt, putting over 1,000 jobs at risk. |
| It’s also a blow to thousands of small investors, many living in the area, who had backed Sirius Minerals’ plan to mine fertiliser. | It’s also a blow to thousands of small investors, many living in the area, who had backed Sirius Minerals’ plan to mine fertiliser. |
| Sirius cancelled a $500m bond sale, to fund the project, this morning. It said it was struggling to sell the bond, and will now hold a “comprehensive strategic review” over its future. It also said the UK government had declined to provide financial support. | Sirius cancelled a $500m bond sale, to fund the project, this morning. It said it was struggling to sell the bond, and will now hold a “comprehensive strategic review” over its future. It also said the UK government had declined to provide financial support. |
| The news sent Sirius’s shares plunging over 50%. | The news sent Sirius’s shares plunging over 50%. |
| Plan for huge Yorkshire mine in doubt as firm pulls £400m bond sale citing poor market conditions and lack of government support https://t.co/J66Wk6Gavn | Plan for huge Yorkshire mine in doubt as firm pulls £400m bond sale citing poor market conditions and lack of government support https://t.co/J66Wk6Gavn |
| Many Middle Eastern stock market have lost ground today -- not terribly surprising, with Donald Trump’s threat of military retaliation hanging over the region. | Many Middle Eastern stock market have lost ground today -- not terribly surprising, with Donald Trump’s threat of military retaliation hanging over the region. |
| Saudi Arabia’s Tadawul index is down 1%, led by natural resources companies and energy producers. Bank shares also dropped. | Saudi Arabia’s Tadawul index is down 1%, led by natural resources companies and energy producers. Bank shares also dropped. |
| Across the region, Egypt’s EGX 30 shed 0.8%, while the UAE’s DFM index has lost 1%. | Across the region, Egypt’s EGX 30 shed 0.8%, while the UAE’s DFM index has lost 1%. |
| David Madden, market analyst at CMC Markets UK, sums up the morning: | David Madden, market analyst at CMC Markets UK, sums up the morning: |
| This morning equity markets are mixed as traders remain cautious about the political situation in the Middle East. Tensions in the region have been heightened in the wake of the attack in Saudi Arabia over the weekend. | This morning equity markets are mixed as traders remain cautious about the political situation in the Middle East. Tensions in the region have been heightened in the wake of the attack in Saudi Arabia over the weekend. |
| Oil is a touch lower after the mammoth move yesterday, but it is massively up on the week, and that highlights the fear about disruption to production. | Oil is a touch lower after the mammoth move yesterday, but it is massively up on the week, and that highlights the fear about disruption to production. |
| The macroeconomic outlook is a little soft, as the Chinese economy is slowing down, the German manufacturing sector is in contraction, plus the uncertainty in relation to Brexit, so higher oil prices are likely to make matters worse for the global economy. | The macroeconomic outlook is a little soft, as the Chinese economy is slowing down, the German manufacturing sector is in contraction, plus the uncertainty in relation to Brexit, so higher oil prices are likely to make matters worse for the global economy. |
| Could Saudi Aramco follow WeWork’s lead, and delay its IPO? | Could Saudi Aramco follow WeWork’s lead, and delay its IPO? |
| Saturday’s attacks have thrown Aramco’s stock market float plans into fresh uncertainty. Investors must be more concerned that its oil facilities are vulnerable to attack, and concerned that geopolitical risks are rising. | Saturday’s attacks have thrown Aramco’s stock market float plans into fresh uncertainty. Investors must be more concerned that its oil facilities are vulnerable to attack, and concerned that geopolitical risks are rising. |
| Piers Hillier, chief investment officer at Royal London Asset Management, says investors will probably demand a higher “risk premium” when Aramco eventually comes to market. | Piers Hillier, chief investment officer at Royal London Asset Management, says investors will probably demand a higher “risk premium” when Aramco eventually comes to market. |
| “Oil futures curves for 3-10 years out have moved up about $1.25 from around the $50 mark. So while the spot market has jumped, reflecting near-term impacts on immediate oil availability and supply chain issues, the longer-term price has taken this in its stride, up 2-3%, with a modest bump up in prices, leading to an uptick in oil stocks or around 3-4%. | “Oil futures curves for 3-10 years out have moved up about $1.25 from around the $50 mark. So while the spot market has jumped, reflecting near-term impacts on immediate oil availability and supply chain issues, the longer-term price has taken this in its stride, up 2-3%, with a modest bump up in prices, leading to an uptick in oil stocks or around 3-4%. |
| It would seem logical that Aramco’s IPO will be delayed while the damage is assessed but beyond this we would expect that the risk premium that investors will require should the IPO go ahead will now be higher.” | It would seem logical that Aramco’s IPO will be delayed while the damage is assessed but beyond this we would expect that the risk premium that investors will require should the IPO go ahead will now be higher.” |
| Saudi Aramco has reportedly warned some clients that there will be delays to their oil deliveries, following last weekend’s attack. | Saudi Aramco has reportedly warned some clients that there will be delays to their oil deliveries, following last weekend’s attack. |
| According to Bloomberg, at least four clients have been warned to expect delays of either days, or weeks. But, they’ve also been reassured that they’ll get their order eventually | According to Bloomberg, at least four clients have been warned to expect delays of either days, or weeks. But, they’ve also been reassured that they’ll get their order eventually |
| Reuters has more details: | Reuters has more details: |
| Saudi Aramco informed PetroChina on Tuesday that its loadings of light crude oil for October will be delayed by about 10 days, said a senior Chinese state oil source with knowledge of the matter. | Saudi Aramco informed PetroChina on Tuesday that its loadings of light crude oil for October will be delayed by about 10 days, said a senior Chinese state oil source with knowledge of the matter. |
| However, Aramco, the state oil company of Saudi Arabia, will still supply the same grades and volumes of light crude oil requested for October nominations, the source said. | However, Aramco, the state oil company of Saudi Arabia, will still supply the same grades and volumes of light crude oil requested for October nominations, the source said. |
| The Chinese state refiner was also told that its September-loading light crude cargoes will be swapped to heavier grades with no change in volumes or delays, the source said. | The Chinese state refiner was also told that its September-loading light crude cargoes will be swapped to heavier grades with no change in volumes or delays, the source said. |
| “The (loading dates and volumes of) September cargoes are too prompt to be changed, as Aramco may be still assessing the damages to its facilities,” said the source. | “The (loading dates and volumes of) September cargoes are too prompt to be changed, as Aramco may be still assessing the damages to its facilities,” said the source. |