Oil prices fluctuated on Thursday after their sharp decline from the previous day due to growing fears of a slump in crude demand, triggered by lockdowns in China to contain rising Covid-19 infections, amid rising interest rates and a strong dollar.
Brent, the benchmark for two thirds of the world's oil, which fell more than 5 per cent on Wednesday, was trading 1.47 per cent higher at $89.29 a barrel at 10.32pm UAE time.
West Texas Intermediate, the gauge that tracks US crude, which slid about 6 per cent on Wednesday, was up 2.21 per cent, at $83.75 a barrel.
Oil recovered some lost territory in early trading on Thursday against a backdrop of rising geopolitical risks and Russian President Vladimir Putin warning that his country would not supply energy to countries that back a proposed price cap by the US and Europe on Moscow's crude in response for its military offensive in Ukraine.
However, lockdowns across China affecting about 65 million people across dozens of cities and monetary tightening by central banks of developed economies are also weighing on energy markets.
That led the market to give up earlier gains after the US Energy Information Administration issued its short-term outlook report, in which it raised its projections for global oil demand.
Global oil demand growth will rise by an average of 2.1 million barrels per day throughout 2022 and by an average of 2 million bpd in 2023, the EIA said.
It estimates that 99.4 million bpd of petroleum and liquid fuels were consumed globally in August 2022, up 1.6 million bpd from August 2021.
“As a result of high natural gas prices globally, we increased our forecast for oil consumption in the fourth quarter of 2022 and the first quarter of 2023 as electricity providers, particularly in Europe, may switch to oil-based generating fuels,” the EIA said.
“The possibility of petroleum supply disruptions and slower-than-expected crude oil production growth continues to create the potential for higher oil prices, while the possibility of slower-than-forecast economic growth creates the potential for lower prices.”
It expects Brent to average $98 a barrel in the fourth quarter of 2022 and $97 a barrel in 2023.
US crude oil production is projected to average 11.8 million bpd in 2022 and 12.6 million bpd in 2023, which would set an annual record for American crude production. The current record is 12.3 million bpd, which was set in 2019.
In a report on Thursday, Emirates NBD economists described the sell-off in oil on Wednesday as “disorderly” and said market moves were “exaggerated”, given the scale of news and data flow.
“The scale of moves will likely be making Opec+ officials anxious and prompt more intervention to support markets,” the Emirates NBD economists said.
The 23-member alliance of Opec+ agreed on Monday to cut its October output by 100,000 bpd, reverting to August production levels.
The move was largely in response to a slowing global economy, demand headwinds and a potential Iran nuclear deal that could bring more crude to the market.
“Given the volatility in the market, coupled with ample uncertainty, Opec+ has not ruled out further action — either at an emergency meeting or when they next meet on October 5,” said Ehsan Khoman, head of emerging markets research at MUFG Bank.
“What is clear is that whether dubbed an Opec+ price floor, the return of the Opec+ put or a line in the sand, recent rhetoric from Opec+ ministers highlighting of the disconnect between oil’s financial and physical markets may force it to continue to act.”
Last month, the International Energy Agency forecast higher oil demand growth this year as Europe switches to oil to generate power, shunning natural gas, which is becoming pricier.
The Paris-based agency expects global oil demand growth to jump 380,000 bpd to 2.1 million bpd this year.
The US dollar, in which oil is priced, also hit a record high on Wednesday against major currencies, amplifying inflationary pressures and putting more pressure on the euro, sterling, yen and yuan.
The European Central Bank raised interest rates by a record 75 basis points on Thursday in a bid to tame surging inflation.
And the US Federal Reserve could make a third consecutive 75-basis-point interest rate increase when it meets on September 21 as inflation is running beyond its target rate at a 40-year high.
“With central banks jacking up rates to quell inflation, investors are increasingly apprehensive of the quantum of recession that may transpire in the months ahead,” Mr Khoman said.
WWE Super ShowDown results
Seth Rollins beat Baron Corbin to retain his WWE Universal title
Finn Balor defeated Andrade to stay WWE Intercontinental Championship
Shane McMahon defeated Roman Reigns
Lars Sullivan won by disqualification against Lucha House Party
Randy Orton beats Triple H
Braun Strowman beats Bobby Lashley
Kofi Kingston wins against Dolph Zigggler to retain the WWE World Heavyweight Championship
Mansoor Al Shehail won the 50-man Battle Royal
The Undertaker beat Goldberg
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
Killing of Qassem Suleimani
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Bournemouth 0
Manchester United 2
Smalling (28'), Lukaku (70')
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.
Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
Sunday March 6, Oman v Namibia, ICC Academy
Tuesday March 8, UAE v Namibia, ICC Academy
Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium
UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
UAE currency: the story behind the money in your pockets
The specs
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
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
UAE currency: the story behind the money in your pockets
'Saand Ki Aankh'
Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars
