Oi prices continued to fall on Friday, headed for the worst weekly loss in two years after the US decision to release the largest volume from the US Strategic Petroleum Reserve – 180 million barrels over the next six months.
Brent, the global benchmark for two thirds of the world's oil, was trading 0.88 per cent lower at $103.8 per barrel at 12.45pm UAE time on Friday. West Texas Intermediate, the gauge that tracks US crude, was 1.06 per cent weaker, trading at $99.22 a barrel.
Brent is still up about 50 per cent since the start of this year after falling from a 14-year high earlier this month when the benchmark nearly touched $140.
Crude prices that were already falling on Thursday in anticipation of the US move, weakened further after President Joe Biden's announcement to release oil stockpiles. President Biden faces the lowest approval rating of his presidency (40 per cent), according to the latest Reuters/Ipsos poll, stalled nuclear negotiations with Iran and the US seeking to control inflation that hit a 40-year high.
The move by the US is the third time the country has tapped into its strategic reserves in the past six months, following 50 million barrels released in November 2021 and 30 million barrels in March 2022 as part of the pledge by International Energy Agency members to unload 60 million barrels from emergency stocks to stabilise energy markets.
“The sheer velocity of this US SPR release is unprecedented," said Ehsan Khoman, head of emerging markets research at MUFG Bank, Japan's biggest lender.
"Theoretically, this would lower the amount of price-induced demand destruction – the only practical mechanism to rebalance markets – required. Practically, however, this release is in essence a one-off release of oil inventories and not a continuous stream of supply over the medium term and is dwarfed by the extraordinary magnitude of Russia’s export disruptions."
While the scope of the US announcement took markets by surprise, the SPR release will “not alleviate the structural supply deficit ... that in fact predates the Russia-Ukraine conflict”, Mr Khoman said.
In addition to the release of its stockpiles, the US is trying to co-ordinate its roll-out with other countries, which may add another 30 to 50 million barrels.
IEA member countries are meeting on Friday after the Paris-based agency last week said it could release more oil into the market “if needed” to tackle soaring prices. The IEA has so far committed to release 61.7 million barrels of oil, about 4 per cent of the group's total reserves.
“If history is any indication, strategic oil reserves have a short-term easing effect on oil prices, which is then followed by a rebound to higher levels, as the extra barrels are a quick fix, which doesn’t solve the longer-term supply gap,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
Opec+, the 23-member super group of producers led by Saudi Arabia and Russia, on Thursday stayed the course of incremental increases in global oil supply and said it will bring another 432,000 barrels per day of crude to the market in May.
"Continuing oil market fundamentals and the consensus on the outlook pointed to a well-balanced market, and that current volatility is not caused by fundamentals, but by ongoing geopolitical developments," according to a group statement.
The producers’ alliance has resisted calls from the US, its European allies and other oil importing nations to increase output as crude prices soar and has stuck to its agreed output increases so far.
Markets priced in Opec+'s 432,000 bpd production increase and the US SPR release should be enough to cap oil prices now unless the Eastern European situation deteriorates markedly, said Jeffrey Halley, a senior market analyst at Oanda.
“Conversely, if Venezuelan and/or Iranian oil is allowed to return to the official international market, in combination with Opec+ hikes and the SPR release, I would confidently say we have seen the highs in oil. I fully admit there are a lot of different variables there,” Mr Halley said.
“Overall, I still expect Brent to trade in a choppy $100 to $120 range, with WTI bouncing around in a $95 to $115 a barrel range. The US SPR and monthly Opec+ production hikes are [currently] balanced out by geopolitical tensions elsewhere."
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
New schools in Dubai
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
Kalra's feat
- Becomes fifth batsman to score century in U19 final
- Becomes second Indian to score century in U19 final after Unmukt Chand in 2012
- Scored 122 in youth Test on tour of England
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The specs: McLaren 600LT
Price, base: Dh914,000
Engine: 3.8-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 600hp @ 7,500rpm
Torque: 620Nm @ 5,500rpm
Fuel economy 12.2.L / 100km
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
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- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
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The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
ABU DHABI ORDER OF PLAY
Starting at 10am:
Daria Kasatkina v Qiang Wang
Veronika Kudermetova v Annet Kontaveit (10)
Maria Sakkari (9) v Anastasia Potapova
Anastasia Pavlyuchenkova v Ons Jabeur (15)
Donna Vekic (16) v Bernarda Pera
Ekaterina Alexandrova v Zarina Diyas
Start times
5.55am: Wheelchair Marathon Elites
6am: Marathon Elites
7am: Marathon Masses
9am: 10Km Road Race
11am: 4Km Fun Run
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
