Crude prices gave up early gains and settled lower on Friday, after demand worries and fears of a potential global recession soured outlook.
Traders weighed the possibility of continued measures to curb four-decade high US inflation amid weak Chinese demand.
Brent, the benchmark for two thirds of the world’s oil, slipped 3.11 per cent to settle at $91.63 a barrel. West Texas Intermediate, the gauge that tracks US crude, closed down 3.93 per cent to $85.61 a barrel.
The latest data from the US Bureau of Labour Statistics showed that annual headline inflation in the world's largest economy was up 8.2 per cent in September, down from its peak of about 9 per cent in June but still near the highest levels since the early 1980s.
Core inflation for the month was up 6.6 per cent from a year ago, the biggest 12-month gain since August 1982.
The latest data is likely to prompt the US Federal Reserve to raise interest rates a fourth consecutive time by 75 basis points when it meets in the first week of November. The move can further slow economic momentum and destroy already weakening demand for crude.
“The headlines for oil continue to be very bearish for the crude demand outlook,” Edward Moya, senior market analyst at Oanda said.
“Intense market volatility does not bode well for growth prospects and that has sent the dollar higher.
The demand outlook continues to remain weak from the world’s two largest economies. Although the US economic activity is not “going to fall off a cliff”, it is weakening. The more immediate bearish driver for oil is the risks of more lockdowns from China, Mr Moya said.
“The US seems like it will be driven to a recession by the inflation fighting Fed, and while China will not likely have any major pivots with their zero-Covid policy,” he added.
On Thursday, the International Energy Agency slashed its global oil demand growth estimates for 2022 and 2023, citing the possibility of a recession in several European countries and growing risks for emerging economies.
The IEA's forecast came at a time when Opec lowered its global oil demand estimates for this year and the next earlier in the week, citing Covid-19 restrictions in China, economic challenges in Europe and inflationary pressures in key economies.
Naeem Aslam, chief market analyst at Avatrade, said that “traders are still very much digesting the message from the US crude inventory data, which confirmed that supply is on the rise in the US”.
US crude oil stocks increased by 9.9 million barrels last week on the back of a 7.7-million-barrel drawdown from the Strategic Petroleum Reserve (SPR), said the US Energy Information Administration (EIA).
The EIA expects US crude oil production to hit 12.4 million barrels per day in 2023, higher than this year's estimate of 11.7 million bpd.
Oil prices rallied last week after the 23-member Opec+ group of oil producers announced an output cut of 2 million bpd.
The war in Ukraine, now in its eighth month, coupled with rising recession fears, broadening inflation pressures and a slowdown in China, both the world's second-largest economy and the biggest importer of crude, prompted the International Monetary Fund to cut its global growth forecast for 2023.
Killing of Qassem Suleimani
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
The specs
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- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
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Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
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Richard Flanagan
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
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The seven points are:
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Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
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Director: Shankar
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