The Libyan National Oil Corporation (NOC) has emptied oil storage tanks at the Ras Lanuf terminal as a precaution after Islamic State (ISIS or ISIL) militants attacked the country’s two biggest oil ports, Es Sider and Ras Lanuf, last week.
The attacks triggered several days of clashes between militants and the Petroleum Facilities Guard and caused fires at five oil storage tanks in Es Sider and two others at the Ras Lanuf. “We have taken all the oil stored in the tanks there (Ras Lanuf) to a safer location,” said an advisor at the eastern NOC Mohamed al-Manfi. Al-Manfi declined to give further details but said last week that each of the oil tanks was estimated to contain 420,000 to 460,000 barrels of oil. Libyan officials said much of the crude oil would be refined at the Zawiya refinery in western Libya, with the remaining quantities exported abroad. [Reuters, WSJ, 1/11/2016]
The Central Bank of Egypt (CBE) said on Monday that it had amended credit market rules to encourage banks to lend to a wider range of clients as part of an effort to mitigate credit risk and boost growth. In a circular published on its website, the CBE cut the maximum amount that banks are allowed to lend to a single client to 15 percent of their Tier One capital, down from 20 percent previously, to reduce the risks associated with lending to a small number of large clients. In a separate circular, the CBE placed limits on consumer credit, saying that banks were relying too heavily on retail lending. The CBE also cut the total sum banks can invest in money market funds to 2.5 percent of their total deposits in local currency from 5 percent previously, a move bankers say could reduce their holdings of Egypt’s government debt. The CBE is currently awaiting the first segment of a loan from the World Bank, valued at $1 billion, that will support foreign reserves. Last week, the CBE received the first segment of a $500 million loan from the African Development Bank. [Reuters, 1/11/2016]
Oman has set new selling prices for domestic gasoline and diesel fuels starting this month, state news agency ONA reported on Monday. The new price for gasoline 95 octane will be 0.160 rials ($0.4156) per liter, and the price for 90 octane will be 0.140 rials per liter. The price for diesel will be 0.160 rials per liter, ONA said. No changes in prices will be introduced to jet fuel. The new prices will come into effect on January 15 and will be reviewed monthly, ONA said. [Reuters, 1/11/2016]
United Arab Emirates (UAE) energy firm Dana Gas plans to cut costs in 2016 as the company gears up for a prolonged period of low crude prices, CEO Patrick Allman-Ward said. Dana Gas plans to cut general and administrative expenses by 55 percent in 2016 and operating expenses by a smaller amount. “We need to prepare ourselves for the continued low oil price environment going forward,” Allman-Ward told reporters. Since the beginning of the year, the firm has cut $5 million in costs by lowering general and administrative expenses. It also reduced its workforce during the fourth quarter of 2015. Dana Gas reported a net loss of $9 million in the third quarter of 2015, and Allman-Ward said the fourth quarter would be similarly challenging. [Reuters, 1/12/2016]
Also of interest
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Experts say Saudi Arabia to spend $100 billion on renewable energy | Zawya
Saudi riyal hits record low vs dollar in one year forwards market | Reuters
Saudi to meet Egypt’s petroleum needs for three months with payment facilities | Reuters
President Sisi, King Salman to meet in February to discuss fuel supply to Egypt | DNE
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Egypt’s tourist numbers drop 38 percent in November year-on-year | Ahram Online
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Libya’s oil company empties Ras Lanuf storage after ISIS attacks
The Libyan National Oil Corporation (NOC) has emptied oil storage tanks at the Ras Lanuf terminal as a precaution after Islamic State (ISIS or ISIL) militants attacked the country’s two biggest oil ports, Es Sider and Ras Lanuf, last week. The attacks triggered several days of clashes between militants and the Petroleum Facilities Guard and caused fires at five oil storage tanks in Es Sider and two others at the Ras Lanuf. “We have taken all the oil stored in the tanks there (Ras Lanuf) to a safer location,” said an advisor at the eastern NOC Mohamed al-Manfi. Al-Manfi declined to give further details but said last week that each of the oil tanks was estimated to contain 420,000 to 460,000 barrels of oil. Libyan officials said much of the crude oil would be refined at the Zawiya refinery in western Libya, with the remaining quantities exported abroad. [Reuters, WSJ, 1/11/2016]
New Egypt bank rules to boost business lending and growth
The Central Bank of Egypt (CBE) said on Monday that it had amended credit market rules to encourage banks to lend to a wider range of clients as part of an effort to mitigate credit risk and boost growth. In a circular published on its website, the CBE cut the maximum amount that banks are allowed to lend to a single client to 15 percent of their Tier One capital, down from 20 percent previously, to reduce the risks associated with lending to a small number of large clients. In a separate circular, the CBE placed limits on consumer credit, saying that banks were relying too heavily on retail lending. The CBE also cut the total sum banks can invest in money market funds to 2.5 percent of their total deposits in local currency from 5 percent previously, a move bankers say could reduce their holdings of Egypt’s government debt. The CBE is currently awaiting the first segment of a loan from the World Bank, valued at $1 billion, that will support foreign reserves. Last week, the CBE received the first segment of a $500 million loan from the African Development Bank. [Reuters, 1/11/2016]
Oman sets new gasoline, diesel prices
Oman has set new selling prices for domestic gasoline and diesel fuels starting this month, state news agency ONA reported on Monday. The new price for gasoline 95 octane will be 0.160 rials ($0.4156) per liter, and the price for 90 octane will be 0.140 rials per liter. The price for diesel will be 0.160 rials per liter, ONA said. No changes in prices will be introduced to jet fuel. The new prices will come into effect on January 15 and will be reviewed monthly, ONA said. [Reuters, 1/11/2016]
UAE’s Dana Gas plans more cost cuts due to low oil prices
United Arab Emirates (UAE) energy firm Dana Gas plans to cut costs in 2016 as the company gears up for a prolonged period of low crude prices, CEO Patrick Allman-Ward said. Dana Gas plans to cut general and administrative expenses by 55 percent in 2016 and operating expenses by a smaller amount. “We need to prepare ourselves for the continued low oil price environment going forward,” Allman-Ward told reporters. Since the beginning of the year, the firm has cut $5 million in costs by lowering general and administrative expenses. It also reduced its workforce during the fourth quarter of 2015. Dana Gas reported a net loss of $9 million in the third quarter of 2015, and Allman-Ward said the fourth quarter would be similarly challenging. [Reuters, 1/12/2016]
Also of interest
Oil trading remains volatile on oversupply concerns | BBC
Qatar stocks drop to two year low | Bloomberg
Experts say Saudi Arabia to spend $100 billion on renewable energy | Zawya
Saudi riyal hits record low vs dollar in one year forwards market | Reuters
Saudi to meet Egypt’s petroleum needs for three months with payment facilities | Reuters
President Sisi, King Salman to meet in February to discuss fuel supply to Egypt | DNE
Oil minister says Egypt ‘suffering’ from fuel subsidies | AP
UAE moves to quash talk of OPEC emergency meet as oil slumps | Reuters
Bahraini MPs blast fuel price hike in heated session | Reuters
Egypt’s tourist numbers drop 38 percent in November year-on-year | Ahram Online
Egypt seeks $1 billion loan from Chinese bank for sanitation projects | Ahram Online
Turkey’s lira drops with stocks after reports of Istanbul blast | Bloomberg