Oil prices rose on Thursday after surging by about 3 per cent in the previous session amid increasing hopes of a rebound in fuel demand in China.
Brent, the benchmark for two thirds of the world’s oil, was 1.31 per cent higher at $83.75 a barrel at 4.17pm UAE time while West Texas Intermediate, the gauge that tracks US crude, was up 1.23 per cent at $78.36 a barrel.
Brent closed 3.2 per cent higher at $82.67 on Wednesday while WTI was up 3 per cent at $77.41 at the end of the session.
“Oil demand is coming back and expectations are high that China’s demand is about to skyrocket,” said Edward Moya, a senior market analyst at Oanda.
China’s near-total reversal of border controls — introduced to stem the spread of Covid-19 — came into effect on Sunday.
The reopening ended about three years of strict entry requirements that had slowed growth in the world’s second-largest economy and biggest crude oil importer.
Jeff Currie, global head of commodities at Goldman Sachs, expects Brent to reach $110 a barrel by the third quarter if China and other Asian economies fully reopen.
Futures gained despite a surprise rise in US crude stocks.
US commercial crude oil stocks increased by 19 million barrels last week, the biggest rise since February 2021, according to the US Energy Information Administration.
The EIA expects global consumption of liquid fuels such as petrol, diesel and jet fuel to set a record in 2024.
Global liquid fuel consumption will exceed 100 million barrels per day, on average, in 2023 for the first time since 2019, then average more than 102 million bpd in 2024, the EIA said in its short-term energy outlook on Tuesday.
Amrita Sen, founder and director of research at Energy Aspects, expects Brent to average $100 a barrel this year, driven by a recovery in China.
“China's reopening is going to be the number one thing driving oil prices this year,” Ms Sen told attendees at the Gulf Intelligence Global UAE Energy Forum on Wednesday.
“The upside could be quite substantial, just depending on the timing of it. China is still grappling with a lot of Covid cases, which has meant that oil demand is yet to pick up quite substantially.
“But, we are starting to see some of the green shoots with regards to demand and the jet numbers are picking up [and so is] gasoline [demand].”
Japanese bank MUFG projects that Brent will hit $110 by mid year 2023 and average $101 a barrel this year and the supply-side will "begin to bite" in the second half of the year.
"Its been a painful start to the year for crude oil with financial markets still pricing in recession, despite the physical market pricing in supply scarcity," said Ehsan Khoman, head of research – commodities, ESG and emerging markets, MUFG.
"China reopenings, the recovery in aviation, an acceleration in Russian oil decoupling, the slowdown in US shale, tightness in the diesel market, the end of US SPR releases, sill low levels of capex investment, all play a role in this. Critically, with little buffer in the system, we expect demand to hit a price-inelastic supply curve again."
Hopes of softer interest rate increases by the US Federal Reserve have also supported prices, after Brent fell by more than 8 per cent last week, its biggest weekly loss in the first seven days of a new year since 2016.
Last month, the Fed raised its interest rates by 50 basis points to curb inflation, which hit a four-decade high in June 2022, and indicated that more increases are planned this year.
The Fed raised interest rates seven times in 2022.
A weaker dollar, which makes oil cheaper for holders of other currencies, also buoyed futures.
The US Dollar Index, a measure of the value of the greenback against a weighted basket of major currencies, was down 0.12 per cent at 103.07 on Thursday morning. The index is lower by 1.4 per cent since January 1.
UAE currency: the story behind the money in your pockets
Bob%20Marley%3A%20One%20Love
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%C2%A0Reinaldo%20Marcus%20Green%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3EKingsley%20Ben-Adir%2C%20Lashana%20Lynch%2C%20James%20Norton%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%C2%A02%2F5%3C%2Fp%3E%0A
UAE%20Warriors%20fight%20card
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Mohammed bin Zayed Majlis
Company%20profile
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Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Big%20Ape%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20LucasArts%3Cbr%3E%3Cstrong%3EConsoles%3A%3C%2Fstrong%3E%20PC%2C%20PlayStation%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
UAE currency: the story behind the money in your pockets
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
Diriyah%20project%20at%20a%20glance
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
More coverage from the Future Forum
MEDIEVIL%20(1998)
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20SCE%20Studio%20Cambridge%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%2C%20PlayStation%204%20and%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
Indian origin executives leading top technology firms
Sundar Pichai
Chief executive, Google and Alphabet
Satya Nadella
Chief executive, Microsoft
Ajaypal Singh Banga
President and chief executive, Mastercard
Shantanu Narayen
Chief executive, chairman, and president, Adobe
Indra Nooyi
Board of directors, Amazon and former chief executive, PepsiCo
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. MATCH INFO
Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')
Leeds United 0
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
