Oil prices closed lower on Friday, after rallying earlier in the week, as central banks raised interest rates, recession fears increased and uncertainty lingered over a rebound in demand from China.
Brent, the benchmark for two thirds of the world’s oil, ended trading 2.67 per cent lower to settle at $79.04 a barrel while West Texas Intermediate, the gauge that tracks US crude, was down 2.39 per cent to $74.29 a barrel.
Oil prices rallied earlier this week amid reports that China, the world's biggest importer of crude, had eased its zero-Covid restrictions. However, the “stop-start” reopening of its economy stoked market volatility and uncertainty regarding the demand outlook.
"Crude prices are declining as recession fears grow and over uncertainty on how smooth China’s reopening will be given the surge in Covid cases they are experiencing," said Edward Moya, a senior market analyst at Oanda.
"The short-term crude demand outlook is a big question mark as China might struggle to ease covid curbs all the way and as global manufacturing activity widely remains in contraction territory.
"Oil might struggle to rally unless we see a disruption with crude supplies as energy traders fixate over deteriorating growth outlooks globally."
Brent settled 2.5 per cent higher at $82.70 a barrel on Wednesday despite the US Federal Reserve raising its interest rates by 50 basis points, the seventh increase of 2022. The US regulator also signalled more rate increases are expected next year.
“We share the view that the economy is well placed to digest the tighter monetary policy. At the same time, we think that further monetary policy tightening is unnecessary and would be a policy mistake,” said David Kohl, chief economist at Julius Baer.
On Thursday, the Bank of England and the European Central Bank also raised interest rates by half a percentage point each to reduce inflation, which is at its highest in decades.
“The size of the [ECB] hike was in line with both our and consensus expectations but forward guidance was much more hawkish than market expectations,” said Abu Dhabi Commercial Bank economists in a research note on Friday.
The BoE's “forward guidance highlights a meeting-by-meeting approach and also reiterated [its] willingness to 'respond forcefully, as necessary'. The overall tone of the meeting was relatively dovish compared to previous meetings”, ADCB said.
Earlier this week, the International Energy Agency raised its global oil demand growth estimate for this year and the next on rising crude consumption in India, China and the Middle East.
The Paris-based agency said it expects oil demand to grow by 1.7 million barrels per day in 2023, up from its previous estimate of 1.6 million bpd.
Oil demand will grow by 2.3 million bpd this year, a 140,000 bpd increase over the agency’s previous forecast.
Separately, on Tuesday, Opec stuck to its oil demand growth forecast for this year and 2023.
The oil producers' group now expects the world economy to grow 2.8 per cent this year, up from its previous estimate of a 2.7 per cent growth.
The 2023 global economic growth forecast was left unchanged at 2.5 per cent.
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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
RESULTS
5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
Winner: M'A Yaromoon, Jesus Rosales (jockey), Khalifa Al Neydai (trainer)
5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
Winner: No Riesgo Al Maury, Antonio Fresu, Ibrahim Al Hadhrami
6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi
6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: Mahmouda, Pat Cosgrave, Abdallah Al Hammadi
7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: AS Jezan, George Buckell, Ahmed Al Mehairbi
7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m
Winner: Dolman, Antonio Fresu, Bhupath Seemar
MEYDAN CARD
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
7.05pm Handicap (TB) $175,000 (Turf) 1,200m
7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m
8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m
8.50pm Handicap (TB) $135,000 (T) 1,600m
9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m
10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m
10.35pm Handicap (TB) $135,000 (T) 1,600m
The National selections:
6.30pm AF Alwajel
7.05pm Ekhtiyaar
7.40pm First View
8.15pm Benbatl
8.50pm Zakouski
9.25pm: Kimbear
10pm: Chasing Dreams
10.35pm: Good Fortune
Takreem Awards winners 2021
Corporate Leadership: Carl Bistany (Lebanon)
Cultural Excellence: Hoor Al Qasimi (UAE)
Environmental Development and Sustainability: Bkerzay (Lebanon)
Environmental Development and Sustainability: Raya Ani (Iraq)
Humanitarian and Civic Services: Women’s Programs Association (Lebanon)
Humanitarian and Civic Services: Osamah Al Thini (Libya)
Excellence in Education: World Innovation Summit for Education (WISE) (Qatar)
Outstanding Arab Woman: Balghis Badri (Sudan)
Scientific and Technological Achievement: Mohamed Slim Alouini (KSA)
Young Entrepreneur: Omar Itani (Lebanon)
Lifetime Achievement: Suad Al Amiry (Palestine)
MATCH INFO
France 3
Umtiti (8'), Griezmann (29' pen), Dembele (63')
Italy 1
Bonucci (36')
Killing of Qassem Suleimani
My Country: A Syrian Memoir
Kassem Eid, Bloomsbury
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
ACC 2019: The winners in full
Best Actress Maha Alemi, Sofia
Best Actor Mohamed Dhrif, Weldi
Best Screenplay Meryem Benm’Barek, Sofia
Best Documentary Of Fathers and Sons by Talal Derki
Best Film Yomeddine by Abu Bakr Shawky
Best Director Nadine Labaki, Capernaum
How to donate
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