Oil prices dropped on Friday after the US posted data showing inflation hit a new 40-year high last month and China's reintroduction of lockdowns in parts of Shanghai.
Brent, the global benchmark for two thirds of the world's oil, closed the week 0.86 per cent lower at $122.01 a barrel on Friday. West Texas Intermediate, the gauge that tracks US crude, was down 0.69 per cent to $120.67 a barrel.
“Whatever weakness emerges for crude will likely be short-lived as this will be one of the busiest driving seasons ever,” said Edward Moya, a senior market analyst at Oanda.
“The pent-up demand for vacation and travel will be front-loaded and demand for crude will be robust even if … prices make a move towards $6 a gallon.”
Both oil benchmarks are still up about 70 per cent since last year as developed economies recover from the coronavirus pandemic, Russia's military offensive continues into its fourth month and the EU presses forward with banning most of Russian oil imports by the end of this year.
Prices are also elevated as the oil market remains tight due to supply shortages and rising demand as the US and Europe head into the summer season.
US crude oil inventories increased only by 2 million barrels for the week to June 3, compared with a drawdown of 1.5 million barrels the previous week, leaving inventories at 416.8 million barrels, 15 per cent below the five-year average for this time of the year, according to the latest report from the Energy Information Administration.
Inflation in the US continued to rise in May with the consumer price index increasing by 8.6 per cent from a year earlier, exceeding all estimates. Shelter, food and petrol were the largest contributors.
Meanwhile, news reports said eight city districts of Shanghai had returned to lockdown — 10 days after a lockdown was lifted — due to positive Covid-19 cases and mass testing for residents of the commercial centre is under way. This has raised concerns about the impact on business and consumption in the world's second-largest economy and biggest energy importer.
The World Bank this week warned of rising stagflation as it slashed its growth forecast for the global economy for the second time this year as the Ukraine war exacerbates the slowdown from the Covid-19 pandemic and adds to inflationary pressures.
The lender lowered its growth estimate for 2022 to 2.9 per cent, from the 3.2 per cent projection it issued in April, as the escalating geopolitical crisis threatens to lead to a “protracted period of feeble growth and elevated inflation”, the multilateral lender said on Tuesday.
The International Monetary Fund, the Institute of International Finance and the 38 countries that comprise the Organisation for Economic Co-operation and Development have all cut their growth projections for this year as well.
“Improving fundamentals, surging inflation and ongoing signs of a pivot from supply scarcity to hoarding, suggests that the stars are aligning for global commodities to move in a syzygy fashion even higher over the summer months,” said Ehsan Khoman, director of emerging markets research for Europe, the Middle East and Africa at MUFG Bank.
“The tailwinds still far outweigh the headwinds.”
SPEC%20SHEET%3A%20SAMSUNG%20GALAXY%20S24%20ULTRA
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Killing of Qassem Suleimani
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
1,000 Books to Read Before You Die: A Life-Changing List
James Mustich, Workman
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
COMPANY%20PROFILE
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Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Killing of Qassem Suleimani
Could%20We%20Be%20More
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What is an ETF?
An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.
There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.
The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.
There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.
While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash.
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FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
SOUTH%20KOREA%20SQUAD
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How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
