Qatar LNG producers said to begin postponed job cuts

A liquefied natural gas (LNG) tanker crosses through the Suez Canal. (Reuters)
Updated 24 November 2017
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Qatar LNG producers said to begin postponed job cuts

DOHA/LONDON: Qatari gas producers QatarGas and RasGas this week began implementing job cuts that had been postponed because of the diplomatic crisis between Qatar and its neighboring states, sources told Reuters.
The layoffs had initially been slated for June after the Gulf state’s decision to merge the two liquified natural gas (LNG) divisions of Qatar Petroleum.
Qatar Petroleum’s CEO has said that the merger of RasGas and Qatargas would help to cut operating costs by hundreds of millions of dollars at the world’s largest LNG producer.
Some engineers were given fresh appointment letters from the newly merged entities, while others were notified about redundancies, one of the sources said, declining to be named because of the sensitivity of the matter.
Another source said that as many as 500 staff had been axed.


Stronger US dollar unlikely to derail bullish view on commodities — Goldman Sachs

Updated 2 min 39 sec ago
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Stronger US dollar unlikely to derail bullish view on commodities — Goldman Sachs

  • The dollar has been lifted by a stronger-than-expected US economy, the world’s largest
  • A stronger greenback makes the purchase of dollar-denominated international commodities more expensive for holders of other currencies
BENGALURU: Goldman Sachs said a stronger dollar is unlikely to derail its bullish view on commodities, which are likely to find support from physical shortages.
The dollar has been lifted by a stronger-than-expected US economy, the world’s largest, and that’s a positive sign for global growth, the US investment bank said.
The US dollar index has lost more than 1 percent this week, but this follows months of strong demand over US-China trade-related tensions, as investors bet the greenback would gain at the expense of riskier currencies.
“The risk aversion this summer created significant emerging market destocking, particularly in China, as consumers attempted to avoid a strong dollar and tariffs by liquidating inventories,” Goldman said in a note dated on Thursday.
A stronger greenback makes the purchase of dollar-denominated international commodities more expensive for holders of other currencies, making buyers and users more likely to draw on any stored materials in preference to imports.
“This liquidation, however, has a physical limit with Chinese destocking having already created significant increases in physical (premiums) for oil and metals – a sign of physical shortages.”
Going forward, oil had a strong fundamental outlook helped by US demand growth, supply losses and disruptions, and still constrained US shale output, Goldman said.
The bank said its near-term Brent crude oil price target remained at $80 a barrel.
The bank said it was moderating its bullish view for gold due to a sell-off in emerging markets, and it lowered its 12-month price forecast for the metal to $1,325 per ounce, down from $1,450 an ounce earlier.