Gulf States Risk Deficit As Oil Price Falls: IMF Head

23 hours ago
KUWAIT: Oil-dependent Gulf states will face budget shortfalls if the recent decline in oil prices persists, International Monetary Fund chief Christine Lagarde warned Saturday.

A sustained decline of $25 a barrel in the oil price would reduce the revenues of most Gulf countries by eight percent of gross domestic product, "and put many of them into a fiscal deficit situation," Lagarde told reporters.

But the six nations of the Gulf Cooperation Council (GCC) have built up fiscal buffers to cope with the immediate impact of the reduction in revenues, she said after a meeting with regional finance ministers and central bank chiefs.

The combined GDP of the GCC last year reached $1.64 trillion, so in this scenario the annual revenue of the six nations could plunge by roughly $130 billion.

The total revenue of the GCC states -- 90 percent of which come from oil -- more than doubled from $317 billion in 2008 to $756 billion in 2012.

It declined slightly to $729 billion last year, according to IMF estimates.

The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which together pump 17 million barrels of crude oil per day and depend on oil for about 90 percent of public revenues.

Oil prices have slumped by about 25 percent since June because of a production glut, weaker demand and a gloomy world economic outlook.

The US benchmark West Texas Intermediate declined to about $81 a barrel on Friday on the New York Mercantile Exchange.

Lagarde called on GCC states to implement reforms and stressed the urgent need for fiscal consolidation -- an appeal echoed by Kuwait's finance minister.

Gulf States Risk Deficit As Oil Price Falls: IMF Head

23 hours ago
KUWAIT: Oil-dependent Gulf states will face budget shortfalls if the recent decline in oil prices persists, International Monetary Fund chief Christine Lagarde warned Saturday.

A sustained decline of $25 a barrel in the oil price would reduce the revenues of most Gulf countries by eight percent of gross domestic product, "and put many of them into a fiscal deficit situation," Lagarde told reporters.

But the six nations of the Gulf Cooperation Council (GCC) have built up fiscal buffers to cope with the immediate impact of the reduction in revenues, she said after a meeting with regional finance ministers and central bank chiefs.

The combined GDP of the GCC last year reached $1.64 trillion, so in this scenario the annual revenue of the six nations could plunge by roughly $130 billion.

The total revenue of the GCC states -- 90 percent of which come from oil -- more than doubled from $317 billion in 2008 to $756 billion in 2012.

It declined slightly to $729 billion last year, according to IMF estimates.

The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which together pump 17 million barrels of crude oil per day and depend on oil for about 90 percent of public revenues.

Oil prices have slumped by about 25 percent since June because of a production glut, weaker demand and a gloomy world economic outlook.

The US benchmark West Texas Intermediate declined to about $81 a barrel on Friday on the New York Mercantile Exchange.

Lagarde called on GCC states to implement reforms and stressed the urgent need for fiscal consolidation -- an appeal echoed by Kuwait's finance minister.

Arabs r crying fowl over low crude oil price affecting their economy.. read "Starmobile".

U seems to be odds with reality, please seek a second opinion from an economist..no offence please.

NEW YORK: Slumping energy shares drove the recent U.S. stock market selloff more than any other major group, so investors are turning to next week's slate of earnings to see if the sector can pull itself out of the

With various names due to report next week, including Exxon Mobil , Chevron, ConocoPhillips and National Oilwell Varco, there are hopes that executives will suggest that the fall in oil and share prices has overstated the outlook for these names.

Gulf States Risk Deficit As Oil Price Falls: IMF Head
........read Starmobile today for full text.

Earlier as per news in d media Saudi can survive with USD70 now a different story...so coming Opec meeting n also winter is going to push crude oil price to where it was 100.

KUWAIT: Oil-dependent Gulf states will face budget shortfalls if the recent decline in oil prices persists, International Monetary Fund chief Christine Lagarde warned Saturday.

A sustained decline of $25 a barrel in the oil price would reduce the revenues of most Gulf countries by eight percent of gross domestic product, "and put many of them into a fiscal deficit situation," Lagarde told reporters.

Lagarde called on GCC states to implement reforms and stressed the urgent need for fiscal consolidation -- an appeal echoed by Kuwait's finance minister.

The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which together pump 17 million barrels of crude oil per day and depend on oil for about 90 percent of public revenues.

Oil prices have slumped by about 25 percent since June because of a production glut, weaker demand and a gloomy world economic outlook.

A lot depends on d coming Q 18/11........

Except God nobody knows d share movement trade at your own risk!

Suma uptrend i believe in 55.

As i said earlier US genius r purposely pushing global shares down by using crude oil as a weapon. Prices hv to drop as nature hv to take its own course in other words seeking justice for world economy n this hv been going on since 1880.If crude oil drops to USD65 American oil company may go bust, American killing American.I feel selling down is not over becoz after Asian crisis our country to strengthen Klci n to defend it, merged d banks n other asian countries did d same so US is trying their level best to crash Asis b4 their funds comes.End of d day they hv to come to East for money.Don't forget their "retire fund dividend"a lot comes from Asia, n now Asia is defensive.Let me tell u, d American ppl most of d time unemployed n partly depending on Asia investment otherwise voting power decides ????????? This is d economist game controlled by Jews n they r not wrong.

Yes u r right.The quantity of shale oil from one source to another may not be same until u start d extraction process.For shale oil mobile assets r used n is very very expensive.US is trying to bring global share prices down like nature have to take its own course, right now they r using shale oil to take d world for a ride n they have many style/tricks not necessary shale oil but of course conventional oil have its merits not shale.

Measures To Manage Palm Oil Stockpile

16 hours ago

FOR the plantation sector, will zero CPO export duty help the industry as a whole?...from Starmobile.....@Ring....palm oil price @ 1900 can be disposed for biodiesel plant which is intact.The economists @ this conference r not sure of what they r talking or trying to sweep d truth under d carpet.Those giant plantation companies yield is only 20mt n d industry can collapse @ this yield.We have living examples like UP/KLK/IOI whose yield is above 23mt.What r they doing to increase d yield which shd be widely spoken by d top economist of d country. Govt is loosing plenty of revenue by abolishing export duty until Dec... the high yield will help to cushion d situation.Any expert economist or media writers shd elaborate on this...tks.

Measures To Manage Palm Oil Stockpile

16 hours ago

FOR the plantation sector, will zero CPO export duty help the industry as a whole?...from Starmobile.....@Ring....palm oil price @ 1900 can be disposed for biodiesel plant which is intact.The economists @ this conference r not sure of what they r talking or trying to sweep d truth under d carpet.Those giant plantation companies yield is only 20mt n d industry can collapse @ this yield.We have living examples like UP/KLK/IOI whose yield is above 23mt.What r they doing to increase d yield which shd be widely spoken by d top economist of d country. Govt is loosing plenty of revenue by abolishing export duty until Dec... the high yield will help to cushion d situation.Any expert economist or media writers shd elaborate on this...tks.

Measures To Manage Palm Oil Stockpile

16 hours ago

FOR the plantation sector, will zero CPO export duty help the industry as a whole?...from Starmobile.....@Ring....palm oil price @ 1900 can be disposed for biodiesel plant which is intact.The economists @ this conference r not sure of what they r talking or trying to sweep d truth under d carpet.Those giant plantation companies yield is only 20mt n d industry can collapse @ this yield.We have living examples like UP/KLK/IOI whose yield is above 23mt.What r they doing to increase d yield which shd be widely spoken by d top economist of d country. Govt is loosing plenty of revenue by abolishing export duty until Dec... the high yield will help to cushion d situation.Any expert economist or media writers shd elaborate on this...tks.

Tks...Monday hope goes up.

I don't know mandarin..,can anyone interpret tks.

Mobile assets r very very expensive.

Mobile assets r used to extract shale oil n d quantity varies from each source n basing on inputs, no way is going to be cheaper then conventional oil?

Klci expecting index to hit 1930 by end of this year....lets wait n see.

To me I dont think price will drop to USD70 becoz opec meeting n winter coming n if Suma on forward sales contract......so a lot of plus points......

Suma was swinging upwards to 62 based on its assets n anticipated profit but that was b4 PN17 but d investment bank fund managers said take Suma off d table becoz banks wouldn't provide loans for PN17 so crashed!.....when exit PN17 profit was not there to support d price but next Q on 18/11? RI 40 is dangling in d air so d next Q is vital!!!! HS has submitted to Bursa basing on merits of company now we have to seek our own opinion.

......right now ppl want price to cross 60 for quick profit.......

SMTC:Bursa Malays Stock Quote - Sumatec Resources Bhd ...
www.bloomberg.com/quote/SMTC:MK
Stock analysis for Sumatec Resources Bhd (SMTC:Bursa Malays) including stock price, stock chart, company news ... Next Earnings Announcement, 11/18/2014 .........I feel next Q shd be promising due to contractual forward sales, that is why HS confidently submitted to Bursa for d 2nd RI in a short period.One condition 4 RI approval your accounts bottom line must be good...can any expert comment on this!...tks.

Anything special about "7 more days to go?".....

KUALA LUMPUR: Key Asian and Malaysia’s stock market got off on a firmer note early Friday after the strong overnight close on Wall Street but the gains could be constrained as the US stock futures and the dollar fell after reports that a New York doctor was tested positive for the Ebola virus.

KUCHING: En route to listing on the Main Market of Bursa Malaysia, offshore oil and gas (O&G) service provider Carimin Petroleum Sdn Bhd (Carimin Petroleum) has proposed 60.7 million new ordinary shares at an issue price of RM1.10 per share for its initial public offering.

KUALA LUMPUR: Crude palm oil (CPO) futures closed higher yesterday amid concerns over production difficulty due to seasonal cycle, a dealer said.

Besides that, he said the positive sentiment in the soy oil market also helped support the commodity's prices.

KUALA LUMPUR: Crude palm oil (CPO) futures closed higher yesterday amid concerns over production difficulty due to seasonal cycle, a dealer said.

Besides that, he said the positive sentiment in the soy oil market also helped support the commodity's prices.

KUALA LUMPUR: Crude palm oil (CPO) futures closed higher yesterday amid concerns over production difficulty due to seasonal cycle, a dealer said.

Besides that, he said the positive sentiment in the soy oil market also helped support the commodity's prices.

KUALA LUMPUR: Crude palm oil (CPO) futures closed higher yesterday amid concerns over production difficulty due to seasonal cycle, a dealer said.

Besides that, he said the positive sentiment in the soy oil market also helped support the commodity's prices........catalyst for Index.....happy trading.

Oil climbs to US$86.16
24 OCTOBER 2014 @ 12:57 AM

NEW YORK: Brent crude oil jumped as much as $2 a barrel on Thursday after an industry source said Saudi Arabia cut output in September following the summer's tumble in prices.

Brent's front-month contract for December delivery was up US$1.45, or 1.7 per cent, at US$86.16 barrel by 1552GMT. It rose as much as US$2.12 to a session high of US$86.92.

US crude’s front-month rose US$1.33, also about 1.7 per cent, to US$81.86.

Dow Jones 16,652.31 +190.99 1.16%
Nasdaq 4,426.07 +43.23 0.99%
.......as at 9.55pm.

Will Suma go for M&A?....any expert.

KUALA LUMPUR: The recent fall in crude oil price that has sparked fears in the oil and gas (O&G) sector and caused a major selldown in most O&G counters here since early this month, begs the question: Is now a good time to buy O&G stocks?

CIMB Research advised its clients “with a long-term investment horizon to take advantage of the recent share price correction to accumulate” in a note on Tuesday.

It said O&G companies are sticking to their growth plans and eyeing opportunities for mergers and acquisitions as the sluggish market has “thrown up attractive valuations”.

Yes i agree it is "price enhancement" agreed.

“We do not expect Petronas to cut back on its spending at the current oil price levels although it may review it if the oil price drops to US$60 per barrel, which we understand is the breakeven point for newer initiatives such as marginal field development and enhanced oil recovery.

“We advise investors with a long-term investment horizon to take advantage of the recent share price correction to accumulate.”

Meanwhile, another analyst with CIMB Investment Bank Bhd (CIMB Research) affirmed that O&G service providers are not directly affected by oil price volatility.

KUALA LUMPUR: Share prices on Bursa Malaysia remained on the uptrend at mid-morning on continued buying interest, an analyst said.

"Talk of fresh European Central Bank (ECB) stimulus programmes may have some influence on the market," said an analyst from a local stockbroking company.

Sumatec - The valuation of the Buzachi Neft oilfield 4-Sep-2014 10:12 PM
The latest proposed acquisition of the Buzachi Neft Oilfield by Sumatec with a price tag of USD 350 Million, roughly RM 1.12 Billion (exchange rate 3.20) is quite a big acquisition for the company considering its market capital today is just around R...

http://www.tradesignum.com/news/SUMATEC

http://www.tradesignum.com/company/sumatec

‘Still resilient despite falling oil prices’
by Ronnie Teo, ronnieteo@theborneopost.com. Posted on October 23, 2014, Thursday

KUCHING: Offshore support velles (OSV) providers such as Dayang Enterprise Holdings Bhd (Dayang) are still seen as resilient despite weakening crude oil prices.

Analyst Arhnue Tan of AllianceDBS Research Sdn Bhd said she saw no reason to downgrade earnings for Dayang even if the firm lower crude oil assumptions to US$95 per barrel from a previous US$106 per barrel.

“Dayang’s earnings are driven by the resilient shallow water market in Malaysia, where production costs are low at US$30 to US$50 per barrel,” Tan said in a note to investors on Tuesday.

“Dayang’s earnings are backed by their RM4.5 billion orderbook which offers 3.5 times revenue cover. About 80 per cent of their orderbook consist of five-year hook up and commissioning (HUC) contracts which commenced in 2014. The rest is for topside maintenance activities.”

Meanwhile, another analyst with CIMB Investment Bank Bhd (CIMB Research) affirmed that O&G service providers are not directly affected by oil price volatility.

“Malaysia’s listed oil & gas players are mostly service providers with operations in various segments along the value chain – from retail and distribution in the downstream to seismic and marine support in the upstream.

PETALING JAYA: Head honchos in companies which provide oil and gas (O&G) services remain positive in light of the current oil price weakness, stating that their companies’ contractual terms and rates are intact. CIMB Research said this in a note issued to clients on Tuesday, confirming an earlier StarBizWeek article. which reported that despite a huge fall in their companies’ market value in the recent weeks due to weak oil prices, industry players remained optimistic as the projected earnings of their companies were intact, at least for the foreseeable future.........Similarly Suma too must be having forward contractual sales so d current low price shouldn't be affecting d prifit.

Next Earnings Announcement 11/18/2014
.............I belief d Q profit+EPS is going to be good otherwise during this period of crude price turbulence HS Wouldn't submit to Bursa for d second RI during a short period of time.For Bursa to approve 40 certain criteria companies hv to meet it is not a blanked approval.During winter energy needed to combat d cold weather.All this r somewhat catalyst for Suma... "History repeats" so d 60+++++++is coming...those belief in Suma buy otherwise there r 1001 counters to pick...happy trading.

The oil price slump could also affect US shale production. About a third of the production would be uneconomical at oil prices below US$80 per barrel, analysts at Bernstein Research said. – Reuters