The US oil rig count rose by one to 549 this week, the highest number since April 2020, according to a Baker Hughes report. Reuters
The US oil rig count rose by one to 549 this week, the highest number since April 2020, according to a Baker Hughes report. Reuters
The US oil rig count rose by one to 549 this week, the highest number since April 2020, according to a Baker Hughes report. Reuters
The US oil rig count rose by one to 549 this week, the highest number since April 2020, according to a Baker Hughes report. Reuters

Oil slides nearly 5% on concerns over weaker global growth and higher interest rates


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Oil slipped on Friday, posting a weekly loss of nearly 5 per cent, on the prospect of weaker global growth, higher interest rates and Covid-19 lockdowns in China hurting demand even as the EU considers a ban on Russian oil that would tighten supply.

Brent crude, the global benchmark, settled down $1.68, or 1.6 per cent, at $106.65 a barrel. US West Texas Intermediate, the gauge that tracks US crude, declined $1.72, or 1.7 per cent, to $102.07.

Brent hit $139 a barrel last month, its highest price since 2008, but both oil benchmarks declined nearly 5 per cent this week on demand concerns.

The International Monetary Fund, which this week cut its global economic growth forecast for 2022, could further downgrade it if Western countries expand their sanctions against Russia over its war against Ukraine and energy prices rise further, said Gita Gopinath, the fund's first deputy managing director.

The German government will cut its growth forecast for 2022 to 2.2 per cent from 3.6 per cent, a government source said, while Chinese demand for gasoline, diesel and aviation fuel in April is expected to slide 20 per cent from a year earlier, Bloomberg reported, as many of China's biggest cities, including Shanghai, are in Covid-19 lockdowns.

Federal Reserve chairman Jerome Powell on Thursday said a half-percentage-point increase in US interest rates "will be on the table" at the next Fed policy meeting in May, pushing the dollar to more than a two-year high. A stronger greenback makes oil and other commodities more expensive for those holding other currencies.

"At this stage, fears over China's growth and overtightening by the Fed, capping US growth, seem to be balancing out concerns that Europe will soon widen sanctions on Russian energy imports," said Jeffrey Halley, analyst at brokerage Oanda.

Speculators' net long bets on the US dollar fell for a third straight week, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday.

On the supply side, the Russia-Kazakh Caspian Pipeline Consortium is expected to resume full exports from April 22 after almost 30 days of disruptions, sources said.

The US oil rig count rose by one to 549 this week, the highest number since April 2020, according to a Baker Hughes report.

Still, supply tightness provided support as Libya loses 550,000 barrels per day of output due to disruptions. Supply could be squeezed further if the EU imposes an embargo on Russian oil.

An EU source told Reuters this week the European Commission was working to speed up availability of alternative energy supplies, while a senior White House adviser said he was confident Europe is determined to close off or further restrict remaining Russian oil and gas exports.

The Netherlands said it plans to stop using Russian fossil fuels by the end of this year.

Morgan Stanley raised its third-quarter Brent price forecast by $10 per barrel to $130, citing a "greater deficit" this year due to lower supply from Russia and Iran, which is likely to outweigh short-term demand headwinds.

European refiners processed 9.04 million bpd of crude in March, down 4 per cent from a month earlier and 4.8 per cent higher than a year earlier, Euroilstock data showed.

US oil refiners are expected to have about 1.08 million bpd of capacity offline for the week ending April 22, increasing available refining capacity by 47,000 bpd, research company IIR Energy said.

"While we may slide, there's a certain point at which we will find support because the fundamentals here are just too tight for things to slide very far," said Robert Yawger, executive director of energy futures at Mizuho.

THE SPECS

Engine: 2.0-litre four-cylinder turbo

Transmission: eight-speed automatic

Power: 258hp at 5,000-6,500rpm

Torque: 400Nm from 1,550-4,400rpm

Fuel economy, combined: 6.4L/100km

Price, base: from D215,000 (Dh230,000 as tested)

On sale: now

RESULTS

5pm: Maiden (PA) Dh80,000 1,200m
Winner: Ferdous, Szczepan Mazur (jockey), Ibrahim Al Hadhrami (trainer)
5.30pm: Arabian Triple Crown Round-3 Group 3 (PA) Dh300,000 2,400m
Winner: Basmah, Fabrice Veron, Eric Lemartinel
6pm: UAE Arabian Derby Prestige (PA) Dh150,000 2,200m
Winner: Ihtesham, Szczepan Mazur, Ibrahim Al Hadhrami
6.30pm: Emirates Championship Group 1 (PA) Dh1,000,000 2,200m
Winner: Somoud, Patrick Cosgrave, Ahmed Al Mehairbi
7pm: Abu Dhabi Championship Group 3 (TB) Dh380,000 2,200m
Winner: GM Hopkins, Patrick Cosgrave, Jaber Ramadhan
7.30pm: Wathba Stallions Cup Conditions (PA) Dh70,000 1,600m
Winner: AF Al Bairaq, Tadhg O’Shea, Ernst Oertel

UAE currency: the story behind the money in your pockets
OTHER IPL BOWLING RECORDS

Best bowling figures: 6-14 – Sohail Tanvir (for Rajasthan Royals against Chennai Super Kings in 2008)

Best average: 16.36 – Andrew Tye

Best economy rate: 6.53 – Sunil Narine

Best strike-rate: 12.83 – Andrew Tye

Best strike-rate in an innings: 1.50 – Suresh Raina (for Chennai Super Kings against Rajasthan Royals in 2011)

Most runs conceded in an innings: 70 – Basil Thampi (for Sunrisers Hyderabad against Royal Challengers Bangalore in 2018)

Most hat-tricks: 3 – Amit Mishra

Most dot-balls: 1,128 – Harbhajan Singh

Most maiden overs bowled: 14 – Praveen Kumar

Most four-wicket hauls: 6 – Sunil Narine

 

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
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Company Fact Box

Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

Based: Amman, Jordan

Sector: Education Technology

Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

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

Updated: April 23, 2022, 8:15 AM`