Oil posted a weekly loss as analysts projected a “significant” supply surplus in 2025, despite an Opec+ decision to extend its voluntary output cuts of 2.2 million barrels a day until the end of March next year.
Brent, the benchmark for two thirds of the world’s oil, fell 2.5 per cent, while West Texas Intermediate, the gauge that tracks US crude, registered a drop of 1.2 per cent for the week ending December 6.
Brent settled at $71.12 a barrel on Friday, shedding 1.4 per cent. WTI reached $67.20 a barrel, falling 1.6 per cent on Friday. A weakening of the US dollar failed to buffer oil prices, underscoring that the market’s main concern is the imbalance between supply and demand, analysts said.
“Crude oil futures remain subdued, with ongoing concerns about weak demand, particularly from China, continuing to pressure the oil market,” Hani Abuagla, senior market analyst at XTB MENA, said.
This comes after Opec+ on Thursday announced that it has extended its supply cuts until the end of 2026 and postponed planned output increases until April 2024.
“While this decision aims to manage supply, the persistent slowdown in global demand, especially from key consumer markets, creates a bearish outlook for the near term,” Mr Abuagla said. “This prolonged supply restraint is unlikely to offset the broader concerns over demand weakness, particularly as economic growth appears subdued.”
The International Energy Agency said in November that current balances suggest global supply will exceed demand by more than 1 million bpd next year, even if the Opec+ cuts were to remain in place.
Oil markets anticipate a surplus in the first half of 2025 as substantial new production comes online from the US, Brazil, Canada, and Guyana, which are collectively expected to add more than one million barrels a day.
Bank of America, in its energy outlook report last week, said that macro fundamentals suggest markets in 2025 will be oversupplied for oil. The bank expects this oversupply to drive Brent to an average of $65 a barrel next year, down from around $80 so far this year. It predicts WTI at $61 a barrel in 2025.
“Looking ahead, a significant supply surplus is projected for 2025, driven by non-Opec supply growth outpacing weak demand,” Mr Abuagla said.
“The market is likely to remain oversupplied. This further reinforces a bearish medium-term outlook for crude oil prices, with the market struggling to maintain upside momentum unless demand conditions improve.”
Furthermore, the US Federal Reserve’s rate decisions may affect market sentiment and could weigh on oil prices if interest rates remain high for longer, he said.
Markets widely anticipate the Federal Reserve to cut US interest rates this month, with officials' concerns on inflation expected to affect the pace of reducing policy next year.
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
Earth under attack: Cosmic impacts throughout history
- 4.5 billion years ago: Mars-sized object smashes into the newly-formed Earth, creating debris that coalesces to form the Moon
- 66 million years ago: 10km-wide asteroid crashes into the Gulf of Mexico, wiping out over 70 per cent of living species – including the dinosaurs.
- 50,000 years ago: 50m-wide iron meteor crashes in Arizona with the violence of 10 megatonne hydrogen bomb, creating the famous 1.2km-wide Barringer Crater
- 1490: Meteor storm over Shansi Province, north-east China when large stones “fell like rain”, reportedly leading to thousands of deaths.
- 1908: 100-metre meteor from the Taurid Complex explodes near the Tunguska river in Siberia with the force of 1,000 Hiroshima-type bombs, devastating 2,000 square kilometres of forest.
- 1998: Comet Shoemaker-Levy 9 breaks apart and crashes into Jupiter in series of impacts that would have annihilated life on Earth.
-2013: 10,000-tonne meteor burns up over the southern Urals region of Russia, releasing a pressure blast and flash that left over 1600 people injured.
More from Neighbourhood Watch:
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Kandahar%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Ric%20Roman%20Waugh%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EGerard%20Butler%2C%20Navid%20Negahban%2C%20Ali%20Fazal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202.5%2F5%3C%2Fp%3E%0A
Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Heather, the Totality
Matthew Weiner,
Canongate
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
Day 3, Dubai Test: At a glance
Moment of the day Lahiru Gamage, the Sri Lanka pace bowler, has had to play a lot of cricket to earn a shot at the top level. The 29-year-old debutant first played a first-class game 11 years ago. His first Test wicket was one to savour, bowling Pakistan opener Shan Masood through the gate. It set the rot in motion for Pakistan’s batting.
Stat of the day – 73 Haris Sohail took 73 balls to hit a boundary. Which is a peculiar quirk, given the aggressive intent he showed from the off. Pakistan’s batsmen were implored to attack Rangana Herath after their implosion against his left-arm spin in Abu Dhabi. Haris did his best to oblige, smacking the second ball he faced for a huge straight six.
The verdict One year ago, when Pakistan played their first day-night Test at this ground, they held a 222-run lead over West Indies on first innings. The away side still pushed their hosts relatively close on the final night. With the opposite almost exactly the case this time around, Pakistan still have to hope they can salvage a win from somewhere.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Eyasses squad
Charlie Preston (captain) – goal shooter/ goalkeeper (Dubai College)
Arushi Holt (vice-captain) – wing defence / centre (Jumeriah English Speaking School)
Olivia Petricola (vice-captain) – centre / wing attack (Dubai English Speaking College)
Isabel Affley – goalkeeper / goal defence (Dubai English Speaking College)
Jemma Eley – goal attack / wing attack (Dubai College)
Alana Farrell-Morton – centre / wing / defence / wing attack (Nord Anglia International School)
Molly Fuller – goal attack / wing attack (Dubai College)
Caitlin Gowdy – goal defence / wing defence (Dubai English Speaking College)
Noorulain Hussain – goal defence / wing defence (Dubai College)
Zahra Hussain-Gillani – goal defence / goalkeeper (British School Al Khubairat)
Claire Janssen – goal shooter / goal attack (Jumeriah English Speaking School)
Eliza Petricola – wing attack / centre (Dubai English Speaking College)
Arabian Gulf Cup FINAL
Al Nasr 2
(Negredo 1, Tozo 50)
Shabab Al Ahli 1
(Jaber 13)
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
