Oil prices rose slightly on Thursday as the loosening of Covid-19 restrictions in China, the world’s second-largest economy and biggest crude importer, eased demand concerns.
Brent, the benchmark for two thirds of the world’s oil, was trading about 1.4 per cent higher at $78.22 a barrel at 4.14pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 2.2 per cent at $73.61 a barrel.
Oil futures fell to below $80 a barrel this week for the first time since January, on persistent fears of a recession and rising interest rates by central banks worldwide.
“Crude prices declined as energy traders quickly abandoned bullish bets that we will see a price spike once the Russian cap on crude oil would be put in place,” said Edward Moya, senior market analyst at Oanda.
“It seems oil markets are only caring about a steady deterioration with the demand outlook.”
Chinese authorities announced that they were easing nationwide Covid-19 rules, the first set of widespread reforms to its zero-Covid policy since rare protests erupted late last month.
Proof of a negative PCR test will no longer be required for entry to public places, with the exception of schools, nurseries and care centres for the elderly, the National Health Commission announced on Wednesday.
Oil prices were also supported by data showing that Germany’s economy — the world’s fourth largest — shrank less than expected in October.
“The October German industrial production print boosted hopes that a recession in the eurozone may be milder than previously anticipated,” Emirates NBD said in a research note.
Industrial production in the country fell 0.1 per cent in October, lower than analysts’ estimates of a 0.6 per cent drop.
US crude stocks decreased by 5.2 million barrels in the week ending on December 2, according to the US Energy Information Administration (EIA).
The indicator, which shows the level of oil and related products stored, gives an overview of US petroleum demand. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices.
Petrol inventories rose by 5.3 million barrels during the same period while distillate fuel stocks were higher by 6.2 million barrels, the EIA said.
The EIA said in its short-term energy outlook report that it expected global oil stocks to fall by 200,000 barrels per day in the first half of 2023 before rising by about 700,000 bpd in the second half of next year.
“Gasoline inventories are rising as demand struggles … this report shows the economy is clearly weakening and does not give energy bulls any reasons to buy into this weakness,” said Mr Moya.
UAE currency: the story behind the money in your pockets
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
UAE currency: the story behind the money in your pockets
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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
UAE currency: the story behind the money in your pockets
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
