Oil prices fluctuated on Thursday as recession risks continue to dent the global demand outlook despite a tight crude market.
Brent, the benchmark for two thirds of the world’s oil, was trading about 2.52 per cent higher, at $94.78 a barrel at 10.00pm UAE time on Thursday. West Texas Intermediate, the gauge that tracks US crude, was up 2.58 per cent at $89.52 a barrel.
Opec lowered its global oil demand forecast for 2022 and 2023 on Wednesday, citing Covid-19 restrictions in China, economic challenges in Europe and inflationary pressures in key economies.
Global oil demand will increase by 2.6 million barrels per day in 2022, lower than the group's previous estimate of 3.1 million bpd, it said.
“Oil prices continue to struggle to gain strength as traders are largely concerned about the worsening demand outlook,” said Naeem Aslam, chief market analyst at Avatrade.
“What matters the most for oil traders now is a revival of oil demand, and if this doesn’t pick strength, oil prices are likely to continue to move lower.”
Demand concerns remain high on growing fears of a recession.
Earlier this week, the International Monetary Fund cut its growth forecast for 2023 as the global economy continues to be affected by the war in Ukraine, broadening inflation pressures and a slowdown in China.
Concerns about inflation continue to rise in the US after producer prices rose more than expected in September.
The US producer price index (PPI) increased by 0.4 per cent last month, the country's Bureau of Labour Statistics said on Wednesday.
“A hot US PPI report suggests inflation is proving to be sticky and will keep the risk elevated that the Fed will send the economy into a recession,” said Edward Moya, a senior market analyst at Oanda.
Meanwhile, China, the world’s largest crude oil importer, is again having trouble with Covid-19 as Shanghai and Shenzhen infections rise, he said.
Despite the worsening outlook for oil demand, supply is expected to remain tight going into 2023.
The US Energy Information Administration (EIA) lowered its forecast for US crude production in 2023 to 12.36 million bpd, down by about 300,000 bpd from its previous forecast.
US production has not “materially” changed this year as oil and gas producers focus on profitability rather than investment, said Daniel Richards, Mena economist at Emirates NBD.
“A lack of supply growth from the US will help to keep markets relatively tight next year,” he said.
The EIA expects Brent to average $93 a barrel in the fourth quarter and $95 a barrel in 2023.
Oil prices gained about 10 per cent last week after the 23-member Opec+ group of oil producers announced an output cut of 2 million bpd.
Following the announcement, Goldman Sachs raised its oil price forecast by $10 to $110 a barrel for the last three months of the year, and to $115 a barrel for the first quarter of 2023.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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
UAE currency: the story behind the money in your pockets
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
WHEN TO GO:
September to November or March to May; this is when visitors are most likely to see what they’ve come for.
WHERE TO STAY:
Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.
HOW TO GET THERE:
Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
The Baghdad Clock
Shahad Al Rawi, Oneworld
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%3Cp%3E%3Cstrong%3EDirectors%3A%20%3C%2Fstrong%3EVarious%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nicola%20Coughlan%2C%20Luke%20Newton%2C%20Jonathan%20Bailey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
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
Rajasthan Royals 153-5 (17.5 ov)
Delhi Daredevils 60-4 (6 ov)
Rajasthan won by 10 runs (D/L method)
The Ashes
Results
First Test, Brisbane: Australia won by 10 wickets
Second Test, Adelaide: Australia won by 120 runs
Third Test, Perth: Australia won by an innings and 41 runs
Fourth Test: Melbourne: Drawn
Fifth Test: Australia won by an innings and 123 runs
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
Biggest%20applause
%3Cp%3EAsked%20to%20rate%20Boris%20Johnson's%20leadership%20out%20of%2010%2C%20Mr%20Sunak%20awarded%20a%20full%2010%20for%20delivering%20Brexit%20%E2%80%94%20remarks%20that%20earned%20him%20his%20biggest%20round%20of%20applause%20of%20the%20night.%20%22My%20views%20are%20clear%2C%20when%20he%20was%20great%20he%20was%20great%20and%20it%20got%20to%20a%20point%20where%20we%20need%20to%20move%20forward.%20In%20delivering%20a%20solution%20to%20Brexit%20and%20winning%20an%20election%20that's%20a%2010%2F10%20-%20you've%20got%20to%20give%20the%20guy%20credit%20for%20that%2C%20no-one%20else%20could%20probably%20have%20done%20that.%22%3C%2Fp%3E%0A
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
