APICORP in trade finance services pact with JPMorgan

Updated 29 May 2012
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APICORP in trade finance services pact with JPMorgan

Arab Petroleum Investments Corporation (APICORP), the multilateral development bank owned by the member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), announced the signing of a trade finance services agreement with JPMorgan Treasury Services.
This enables APICORP to significantly expand its range of trade finance services to energy companies.
APICORP will offer a complete range of trade finance products and services to its clients, including letters of credit, collections and guarantees.
The government of Saudi Arabia owns a 17 percent stake in APICORP.
“We are pleased to announce another major milestone in APICORP’s bid to diversify business streams and grow the bank for the benefit of the Arab world’s energy sector,” said Ahmad bin Hamad Al-Nuaimi, chief executive and general manager of APICORP.
“This announcement has been preceded by extensive efforts with JPMorgan to set up a highly reliable service that can be increased in scale to meet rising demand.”
Under the trade finance services agreement, JPMorgan will provide APICORP with trade finance processing support, including Internet-based technology, and access to trade finance services from a global network of branches.
“APICORP will initiate transactions and interface with customers as well as make final credit approval decisions,” said Al-Nuaimi.
“Of the financial institutions that were considered for this alliance, we felt JPMorgan is the most suited partner, recognized for its expertise, wide banking network, and trade processing capability.”
Mark Garvin, chairman of JPMorgan Treasury and Securities Services International, said: “JPMorgan’s collaboration with APICORP, to meet trade finance demand from the multilateral development bank’s clients in the Middle East, has resulted in much needed additional liquidity in the global trade finance markets. This mandate is testimony to JPMorgan’s ongoing commitment to the region and strong local market knowledge, coupled with our global expertise in trade finance, which enables us to meet the cross-border trade finance needs of clients such as APICORP.”


Oil prices up almost 3 pct as OPEC agrees to raise output

Updated 22 June 2018
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Oil prices up almost 3 pct as OPEC agrees to raise output

  • Oil prices rose almost 3 percent on Friday as OPEC agreed a modest increase in output to compensate for losses in production at a time of rising global demand.
  • The Organization of the Petroleum Exporting Countries agreed on Friday to boost output from July.

LONDON: Oil prices rose almost 3 percent on Friday as OPEC agreed a modest increase in output to compensate for losses in production at a time of rising global demand.
Benchmark Brent crude jumped $2.19 a barrel, or almost 3 percent, to a high of $75.24 before slipping to around $75 by 1305 GMT. US light crude was $1.80 higher at $67.34.
The Organization of the Petroleum Exporting Countries, meeting in Vienna, agreed on Friday to boost output from July after Saudi Arabia persuaded Iran to cooperate in efforts to reduce the crude price and avoid a supply shortage.
Two OPEC sources told Reuters the group agreed that OPEC and its allies led by Russia should increase production by about 1 million barrels per day (bpd), or 1 percent of global supply.
But the real increase will be smaller because several countries that recently underproduced oil will struggle to return to full quotas while other producers will not be allowed to fill the gap.
The deal looked to be in line with many analysts' forecasts.
Analysts had expected OPEC to announce a real increase in production of 500,000 to 600,000 barrels per day (bpd), which would help ease tightness in the oil market without creating a glut.
"The effective increase in output can easily be absorbed by the market," Harry Tchilinguirian, head of oil strategy at French bank BNP Paribas told Reuters Global Oil Forum.
Oil prices have been on a roller-coaster ride over the last few years, with the international marker, Brent, trading above $100 a barrel for several years until 2014, dropping to almost $26 in 2016 and then recovering to over $80 last month.
The most recent price rally followed an OPEC decision to restrict supply in an effort to drain global inventories.
The group started withholding supply in 2017 and this year, amid strong demand, the market tightened significantly, triggering calls by consumers for higher supply.
Falling production in Venezuela and Libya, as well as the risk of lower output from Iran as a result of US sanctions, have all increased market worries of a supply shortage.
Another big uncertainty for oil is the escalating dispute between the United States and its trading partners, which could hit US crude oil exports to China.
Asian shares hit a six-month low on Friday as tariffs and the US-China trade battle start taking their toll.
If a 25 percent duty on US crude imports is implemented by Beijing, American oil would become uncompetitive in China, forcing it to seek buyers elsewhere.
Chinese buyers are already starting to scale back orders, with a drop in supplies expected from September.