Oil prices climbed on Friday after plunging on Thursday due to mounting concerns about a global recession and an expected increase in interest rates set for next week.
Brent, the benchmark for two thirds of the world’s oil, settled 0.56 per cent higher at $91.35 a barrel at the end of trading on Friday, while West Texas Intermediate, the gauge that tracks US crude, closed up 0.01 per cent at $85.11 a barrel.
Both benchmarks fell more than 3 per cent on Thursday after the US Department of Energy said plans to restock the nation’s emergency supply did not include a trigger price, which is any oil price below which the administration will start to buy crude.
The department said that transactions were not likely to happen until after the 2023 fiscal year.
Oil prices are down about 20 per cent since early June and posted a third consecutive weekly loss, due to a strong US dollar and as markets await an interest-rate increase from the US Federal Reserve after the latest data showed headline inflation exceeded expectations.
Crude prices also weakened this week after the International Energy Agency lowered its estimates for global oil demand growth in 2022 to two million barrels a day, from an earlier 2.1 million bpd forecast, due to renewed Chinese coronavirus lockdowns and a continued slowdown in the Organisation for Economic Co-operation and Development (OECD) area.
That has amplified concerns about a global recession and waning fuel demand as investors await the outcome of the Fed meeting when the US central bank meets next week.
"It's been another volatile week for oil prices, with global growth fears dampening the demand outlook but Opec+ sitting in the background ready to respond if prices drop too far," said Craig Erlam, a senior market analyst at Oanda.
"Brent crude remains above $90 at the moment which may stop the alliance from calling one of the emergency meetings it warned of but if growth fears continue to rise, that may change."
Before the latest inflation data that showed consumer prices rose by 8.3 per cent in August, above analysts' expectations of 8.1 per cent, the Fed was expected to raise interest rates by 75 basis points for a third straight month.
Hasnain Malik, head of Equity Research at Tellimer, said higher-than-expected US inflation “implies greater rate increases and US dollar strength, which is negative for most emerging markets”.
“Despite earlier rate hikes in many emerging markets compared with developed markets, negative real rates in most countries imply there is much further to go,” he said.
“Real rates — policy rate minus inflation — measure how ahead or behind the inflation curve is a central bank.”
Some analysts have said that it may decide on a supersize rate increase of 100 bps as it attempts to tame inflation, which is at a four-decade high.
“Oil fundamentals are still mostly bearish as China’s demand outlook remains a big question mark and as the inflation-fighting Fed seems poised to weaken the US economy,” said Edward Moya, a senior market analyst at Oanda.
The clarification by the US Department of Energy that the restocking of the Strategic Petroleum Reserve (SPR) won’t happen due to prices falling at a certain level and that they won’t take action until after the 2023 fiscal year “tentatively removed any support crude had just ahead of the $80 a barrel level”, Mr Moya said.
“Despite all the doom [and] gloom across the world, the oil market remains tight and prices should outperform all the other commodities.”
Earlier this week, Opec kept its forecast for global oil demand for this year unchanged despite headwinds from rising inflation and interest rates, as well as the war in Ukraine.
Opec said world oil demand growth remained pegged at an increase of 3.1 million bpd for 2022, while for 2023, the forecast for world oil demand growth remains unchanged at 2.7 million bpd.
“Traders have started to believe Opec needs to do more to control supply if it wants to keep oil prices higher,” said Naeem Aslam, chief market analyst at AvaTrade.
Under the current supply, there are “chances that prices will continue to move lower, and we could see crude oil prices easily reaching near the $75 price mark”, Mr Aslam said.
Earlier this week, Abu Dhabi Commercial Bank said the Opec+ 23-member alliance of producers could take further steps to cut output if oil prices remain under pressure.
ADCB cited the meeting of Opec+ earlier this month in which the alliance indicated it would 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 alliance agreed to cut its October output by 100,000 bpd, reverting to August production levels, to mitigate downward price pressure in the face of a slowing global economy, potential demand headwinds and the possible revival of the Iran nuclear deal, which 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 the group would “be attentive, pre-emptive and proactive in terms of supporting the stability and the efficient functioning of the market”.
England squad
Joe Root (captain), Alastair Cook, Keaton Jennings, Gary Ballance, Jonny Bairstow (wicketkeeper), Ben Stokes (vice-captain), Moeen Ali, Liam Dawson, Toby Roland-Jones, Stuart Broad, Mark Wood, James Anderson.
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
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
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Notable salonnières of the Middle East through history
Al Khasan (Okaz, Saudi Arabia)
Tamadir bint Amr Al Harith, known simply as Al Khasan, was a poet from Najd famed for elegies, earning great renown for the eulogy of her brothers Mu’awiyah and Sakhr, both killed in tribal wars. Although not a salonnière, this prestigious 7th century poet fostered a culture of literary criticism and could be found standing in the souq of Okaz and reciting her poetry, publicly pronouncing her views and inviting others to join in the debate on scholarship. She later converted to Islam.
Maryana Marrash (Aleppo)
A poet and writer, Marrash helped revive the tradition of the salon and was an active part of the Nadha movement, or Arab Renaissance. Born to an established family in Aleppo in Ottoman Syria in 1848, Marrash was educated at missionary schools in Aleppo and Beirut at a time when many women did not receive an education. After touring Europe, she began to host salons where writers played chess and cards, competed in the art of poetry, and discussed literature and politics. An accomplished singer and canon player, music and dancing were a part of these evenings.
Princess Nazil Fadil (Cairo)
Princess Nazil Fadil gathered religious, literary and political elite together at her Cairo palace, although she stopped short of inviting women. The princess, a niece of Khedive Ismail, believed that Egypt’s situation could only be solved through education and she donated her own property to help fund the first modern Egyptian University in Cairo.
Mayy Ziyadah (Cairo)
Ziyadah was the first to entertain both men and women at her Cairo salon, founded in 1913. The writer, poet, public speaker and critic, her writing explored language, religious identity, language, nationalism and hierarchy. Born in Nazareth, Palestine, to a Lebanese father and Palestinian mother, her salon was open to different social classes and earned comparisons with souq of where Al Khansa herself once recited.
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
The specs
Engine: 1.6-litre 4-cyl turbo and dual electric motors
Power: 300hp at 6,000rpm
Torque: 520Nm at 1,500-3,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.0L/100km
Price: from Dh199,900
On sale: now
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The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
How to report a beggar
Abu Dhabi – Call 999 or 8002626 (Aman Service)
Dubai – Call 800243
Sharjah – Call 065632222
Ras Al Khaimah - Call 072053372
Ajman – Call 067401616
Umm Al Quwain – Call 999
Fujairah - Call 092051100 or 092224411
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
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
Killing of Qassem Suleimani
FINAL SCORES
Fujairah 130 for 8 in 20 overs
(Sandy Sandeep 29, Hamdan Tahir 26 no, Umair Ali 2-15)
Sharjah 131 for 8 in 19.3 overs
(Kashif Daud 51, Umair Ali 20, Rohan Mustafa 2-17, Sabir Rao 2-26)
Palestine and Israel - live updates
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
