Oil prices continued to fluctuate at the start of trading on Monday, opening lower before climbing back up as demand concerns and economic uncertainty continue to weigh on energy markets.
Prices are down about 20 per cent since early June, giving up gains from highs reached in March owing to Covid-19-related movement restrictions in China — affecting about 65 million citizens — as well as further interest rate increases in the US and Europe.
Brent, the benchmark for two thirds of the world’s oil, was trading 1.35 per cent higher at $94.09 a barrel at 6pm UAE time. It has dropped from its near-$140-a-barrel high in March following the start of Ukraine war and is now up about 18 per cent since the start of the year.
West Texas Intermediate, the gauge that tracks US crude, was up 1.29 per cent at $87.91 a barrel.
“The barrel of American crude trades near the $85 per barrel as high energy prices hit the prospects of economic growth and global demand,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“An overall bullish sentiment in equity markets could help oil consolidate gains, but strong resistance is seen near the $90 mark.”
In a research note on Monday, strategists at UBS said that while the lender stills holds a positive outlook on crude prices, it has reduced its December oil forecast by $15 per barrel. UBS had previously projected a rebound in oil to $125 a barrel in the last quarter of this year.
“We still believe that the oil market will tighten and prices will rise over the coming quarters,” UBS said.
The rise in prices will come as a result of the end of sales from OECD countries' strategic oil reserves, the lender said. That will remove more than 1 mbpd of supply from November onwards.
UBS said while OECD commercial inventories increased by 33 million barrels between December and June, commercial and government inventories have fallen by more than 103mb over this period, “indicating an undersupplied market”.
The lender also expects oil demand to be bolstered globally by its increasing use to generate electricity, reflecting the rising price or reduced availability of gas and coal.
The halting by the European Union of Russian waterborne crude imports by December 5 and refined products by February 5 will provide further support for oil prices, UBS said.
Russia has continued to boost its exports to countries such as China and India, the world's largest energy importers, even as the US and the UK ban imports of its crude in response to its military offensive in Ukraine.
Last week, Russian President Vladimir Putin warned 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 war in Ukraine.
“The risk of some supply disruptions over the next few months remains elevated and that should help oil prices stay above the $90 a barrel level,” said Edward Moya, a senior market analyst at Oanda.
The face-off with Russia has exacerbated inflationary pressures in European countries and put major currencies such as the euro, sterling and yen under pressure.
Last week, the European Central Bank raised its key interest rates by 75 basis points to tame record inflation.
The US Federal Reserve raised interest rates by 75 basis points in its past two meetings to bring inflation down from a 40-year high.
The Fed is expected to increase rates further when it meets from September 20 to September 21.
In a report on Monday, Abu Dhabi Commercial Bank said the Opec+ 23-member alliance of producers could take further steps to cut output if oil prices remain under weakening pressure.
ADCB cited the meeting of Opec+ earlier this month in which the group indicated it will stand ready to hold an unscheduled meeting to address market developments, even before the planned October 5 meeting if necessary.
At its last meeting this month, the Opec+ alliance agreed to cut its October output by 100,000 barrels per day, reverting to August production levels in a bid to support prices, in the face of a slowing global economy, potential demand headwinds and a potential Iran nuclear deal that could bring more crude to the market.
Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said the group's “decision is an expression of will that we will use all of the tools in our kit”.
He also said that the group “will be attentive, pre-emptive and proactive in terms of supporting the stability and the efficient functioning of the market”.
ESSENTIALS
The flights
Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes.
The trip
From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.
Match info
Manchester United 0-0 Crystal Palace
Man of the match: Cheikhou Kouyate (Crystal Palace)
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
Ten10 Cricket League
Venue and schedule Sharjah Cricket Stadium, December 14 to 17
Teams
Maratha Arabians Leading player: Virender Sehwag; Top picks: Mohammed Amir, Imad Wasim; UAE players: Shaiman Anwar, Zahoor Khan
Bengal Lions Leading player: Sarfraz Ahmed; Top picks: Sunil Narine, Mustafizur Rahman; UAE players: Mohammed Naveed, Rameez Shahzad
Kerala Kings Leading player: Eoin Morgan; Top picks: Kieron Pollard, Sohail Tanvir; UAE players: Rohan Mustafa, Imran Haider
Pakhtoons Leading player: Shahid Afridi; Top picks: Fakhar Zaman, Tamim Iqbal; UAE players: Amjad Javed, Saqlain Haider
Punjabi Legends Leading player: Shoaib Malik; Top picks: Hasan Ali, Chris Jordan; UAE players: Ghulam Shabber, Shareef Asadullah
Team Sri Lanka Cricket Will be made up of Colombo players who won island’s domestic limited-overs competition
UAE currency: the story behind the money in your pockets
MATCH INFO
Manchester United 1 (Greenwood 77')
Everton 1 (Lindelof 36' og)
Killing of Qassem Suleimani
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
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)
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Match info
Liverpool 3
Hoedt (10' og), Matip (21'), Salah (45 3')
Southampton 0
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
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
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
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
SERIE A FIXTURES
Friday (UAE kick-off times)
Sassuolo v Bologna (11.45pm)
Saturday
Brescia v Torino (6pm)
Inter Milan v Verona (9pm)
Napoli v Genoa (11.45pm)
Sunday
Cagliari v Verona (3.30pm)
Udinese v SPAL (6pm)
Sampdoria v Atalanta (6pm)
Lazio v Lecce (6pm)
Parma v Roma (9pm)
Juventus v Milan (11.45pm)
Brief scoreline:
Crystal Palace 2
Milivojevic 76' (pen), Van Aanholt 88'
Huddersfield Town 0
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
MORE FROM CON COUGHLIN
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
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ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
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