Oil prices are set for a seventh consecutive weekly gain, extending their advance on Friday amid dwindling stocks, geopolitical tension and a cold spell in the US that is threatening to disrupt energy supplies in a tight market.
Brent, the benchmark for two thirds of the world's oil, closed at $93.27 a barrel on Friday while West Texas Intermediate, the gauge that tracks US crude, closed at $92.31 a barrel.
WTI is set to lock in a weekly gain of more than 4 per cent. Brent has climbed about 17 per cent since the beginning of the year and is trading above its seven-year high of $91.70 a barrel, which was achieved last week. Crude has risen more than 67 per cent over the past year.
“WTI crude surged over the $90 level after an arctic blast made its way to Texas and disrupted some oil production in the Permian Basin,” said Edward Moya, senior market analyst at Oanda.
“The oil market is too tight and vulnerable to any shock.”
Even as thousands of flights are cancelled, the energy market is “fixated over production and not so much on short-term demand shocks”, Mr Moya said.
"Crude prices seem to have a one-way ticket to $100 oil. This week’s rally in crude was supported by the Opec+ decision to stick to their gradual increase strategy and as US production fell again," he said.
Energy traders are realising that the surge in Omicron infections did not lead to a major hiccup for the economy, he added. "Everything seems to be turning very bullish for WTI crude and the bullish momentum might not see much resistance until the $95 level."
Rising oil prices that are stoking concerns of inflation are also probably ringing “alarm bells” among emerging market oil importers, particularly poorer ones that are exposed to high food prices, said Hasnain Malik, head of equity research at Tellimer Research.
Crude has stayed buoyant in the past few weeks amid rising geopolitical tension in Eastern Europe. On Wednesday, the US approved the stationing of 3,000 troops in Eastern Europe, in addition to the 8,500 troops it placed on high alert after Russia sent thousands of military personnel to the border with Ukraine.
Russia, one of the world’s top oil producers, further boosted its troop presence at the weekend in a sign of a potential escalation that could derail the flow of global energy supplies.
Dwindling crude stocks in the US have also boosted oil prices. Inventories in the world’s biggest economy declined by a million barrels for week ending January 28, from the previous week, according to the data from the US Energy Information Administration.
On Wednesday, Opec and its allies announced that they will raise crude supply to 400,000 barrels per day in March, citing higher demand as the global economy continues to recover from the pandemic.
The group has stayed on course over the past few months in pledging to bring more barrels to the market. However, its ability to meet its higher output targets has come under scrutiny.
WTI crude surged over the $90 level after an arctic blast made its way to Texas and disrupted some oil production in the Permian Basin
Edward Moya,
senior market analyst at Oanda
The capacity of some Opec member countries to quickly increase production is shrinking, a report from Bank of America found.
Total investment in the upstream sector of the oil and gas sector fell 23 per cent below pre-coronavirus levels to $341 billion in 2021 amid green transition efforts, the International Energy Forum said in a report last year.
“It seems like $100 [per barrel] oil is not too far in the distant future and that will continue to be followed by growing pressure from world leaders for Opec+ to deliver more output,” Mr Moya said.
While the oil market should be able to meet demand in the near-term, the significant decline in spending and the “lack of willingness of some producers to invest does leave the oil market in a vulnerable state in the longer-term”, Japanese lender MUFG said in a note on Friday.
“The sheer dizziness of the oil price strength since the turn of the year is leading us to fast forward our long structural supply-side thesis,” said Ehsan Khoman, head of emerging markets research at the bank.
The Tokyo-based lender expects crude prices to rise to $105 a barrel in the fourth quarter of this year and advance to $115 a barrel in the first quarter of 2023.
It expects prices to peak at about $120 a barrel in the second quarter of next year, averaging $95.5 a barrel this year and $111.9 a barrel next year.
'Gold'
Director:Anthony Hayes
Stars:Zaf Efron, Anthony Hayes
Rating:3/5
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”.
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
4/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
Austrian Grand Prix race timings
Weekend schedule for Austrian Grand Prix - all timings UAE
Friday
Noon-1.30pm First practice
4-5.30pm Second practice
Saturday
1-2pm Final practice
4pm Qualifying
Sunday
4pm Austrian Grand Prix (71 laps)
UAE currency: the story behind the money in your pockets
MEYDAN CARD
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
7.05pm Handicap (TB) $175,000 (Turf) 1,200m
7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m
8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m
8.50pm Handicap (TB) $135,000 (T) 1,600m
9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m
10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m
10.35pm Handicap (TB) $135,000 (T) 1,600m
The National selections:
6.30pm AF Alwajel
7.05pm Ekhtiyaar
7.40pm First View
8.15pm Benbatl
8.50pm Zakouski
9.25pm: Kimbear
10pm: Chasing Dreams
10.35pm: Good Fortune
More from Neighbourhood Watch:
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
Company%20profile
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SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20101hp%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20135Nm%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%20Six-speed%20auto%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh79%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
SPECS
Nissan 370z Nismo
Engine: 3.7-litre V6
Transmission: seven-speed automatic
Power: 363hp
Torque: 560Nm
Price: Dh184,500
The%C2%A0specs%20
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UAE currency: the story behind the money in your pockets
match info
Union Berlin 0
Bayern Munich 1 (Lewandowski 40' pen, Pavard 80')
Man of the Match: Benjamin Pavard (Bayern Munich)
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
FROM%20THE%20ASHES
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Killing of Qassem Suleimani
AIDA%20RETURNS
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