Banks reduce exposure to Dubai-based oil trader

  • Date: 21-Aug-2020
  • Source: Arabian Business
  • Sector:Oil & Gas
  • Country:UAE
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Banks reduce exposure to Dubai-based oil trader

Several banks are reducing their exposure to Dubai-based oil trader MENA Energy DMCC, as the coronavirus hits commodity businesses and global lenders cut funding.

BNP Paribas, Natixis and Middle Eastern lenders including Emirates NBD, Emirates Islamic Bank and National Bank of Fujairah have either frozen credit lines or decided to stop dealing with MENA Energy in recent months, according to people with knowledge of the situation, who asked not to be identified because the matter is confidential.

All five banks declined to comment. MENA Energy's chief executive officer, Rashid Al Ghurair, wasn't available for comment and a spokesperson for the company, which buys and sells products such as gasoline, fuel oil and jet fuel, declined to discuss its financial situation.

Virus lockdowns and travel restrictions caused energy demand to collapse this year. Brent