Oil prices extended their losses on Tuesday as a strong US dollar and a surge in coronavirus cases in China weighed on investor sentiment.
Brent, the benchmark for two thirds of the world’s oil, was trading 2.06 per cent lower at $94.21 a barrel at 3.37pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was down 2.33 per cent at $89.01 a barrel.
The US dollar index, a measure of the value of the greenback against a weighted basket of major currencies, was up 0.02 per cent at 113.16, inching towards September’s 20-year high of 114.78.
“Oil prices are paring recent gains for the second day as the International Monetary Fund and World Bank warn of an increased risk of a global recession,” Craig Erlam, senior market analyst at Oanda, said.
“Those warnings won't come as an enormous surprise, given the immense economic headwinds as a result of the pandemic and Russia's invasion of Ukraine,” Mr Erlam said.
Meanwhile, coronavirus cases in China, the world’s biggest oil importer, have hit their highest level in two months, stoking fears that major centres such as Shanghai and Shenzhen will face lockdowns again.
Oil prices ended a five-day gaining streak on Monday on signs of slowing economic growth in China. Services activity in the country contracted for the first time in four months, amid new outbreaks and stricter containment measures, according to an industry survey.
Oil prices have been rising since the 23-member Opec+ group of oil producers announced an output cut of 2 million barrels per day last week after its first in-person meeting in Vienna since March 2020.
Brent crude gained about 10 per cent last week.
Since the meeting, numerous investment banks and lenders have raised their oil price outlook for the remainder of 2022 and 2023.
Goldman Sachs raised its oil price forecast by $10 a barrel to $110 for the last three months of the year, and to $115 for the first quarter of 2023.
“The outlook for higher oil prices, in turn, is likely to put further pressure on the central banks to continue with their aggressive rate hikes at the upcoming meetings, in our view,” ADCB economists said in a research note last week.
“Despite the rising demand-side risks, we expect this Opec+ supply cut will leave the oil market in deficit for the whole of 2023,” they said.
Investors will be eagerly waiting for monthly oil market reports from the International Energy Agency and Opec to have more clarity on future demand, analysts said.
Company%20Profile
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UAE currency: the story behind the money in your pockets
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
The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Results
5.30pm: Maiden (TB) Dh82,500 (Dirt) 1,600m, Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
6.05pm: Maiden (TB) Dh82,500 (Turf) 1,400m, Winner: Mayehaab, Adrie de Vries, Fawzi Nass
6.40pm: Handicap (TB) Dh85,000 (D) 1,600m, Winner: Monoski, Mickael Barzalona, Salem bin Ghadayer
7.15pm: Handicap (TB) Dh102,500 (T) 1,800m, Winner: Eastern World, Royston Ffrench, Charlie Appleby
7.50pm: Handicap (TB) Dh92,500 (D) 1,200m, Winner: Madkal, Adrie de Vries, Fawzi Nass
8.25pm: Handicap (TB) Dh92,500 (T) 1,200m, Winner: Taneen, Dane O’Neill, Musabah Al Muhairi
TO ALL THE BOYS: ALWAYS AND FOREVER
Directed by: Michael Fimognari
Starring: Lana Condor and Noah Centineo
Two stars
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
Race card:
6.30pm: Baniyas (PA) Group 2 Dh195,000 1,400m.
7.05pm: Maiden (TB) Dh165,000 1,400m.
7.40pm: Handicap (TB) Dh190,000 1,200m.
8.15pm: Maiden (TB) Dh165,000 1,200m.
8.50pm: Rated Conditions (TB) Dh240,000 1,600m.
9.20pm: Handicap (TB) Dh165,000 1,400m.
10pm: Handicap (TB) Dh175,000 2,000m.
MATCH INFO
Inter Milan v Juventus
Saturday, 10.45pm (UAE)
Watch the match on BeIN Sports
'Dark Waters'
Directed by: Todd Haynes
Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper
Rating: ****
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
6.30pm: Al Maktoum Challenge Round-3 Group 1 (PA) | US$95,000 | (Dirt) 2,000m
7.05pm: Meydan Classic Listed (TB) ) | $175,000) | (Turf) 1,600m
7.40pm: Handicap (TB) ) | $135,000 ) | (D) 1,600m
8.15pm: Nad Al Sheba Trophy Group 3 (TB) ) | $300,000) | (T) 2,810m
8.50pm: Curlin Handicap Listed (TB)) | $160,000) | (D) 2,000m
9.25pm: Handicap (TB)) | $175,000) | (T) 1,400m
10pm: Handicap (TB) ) | $135,000 ) | (T) 2,000m
THE SPECS
Range Rover Sport Autobiography Dynamic
Engine: 5.0-litre supercharged V8
Transmission: six-speed manual
Power: 518bhp
Torque: 625Nm
Speed: 0-100kmh 5.3 seconds
Price: Dh633,435
On sale: now
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
