Oil prices traded higher on Friday and were on track to end the week with a slight gain amid hopes of a swift fuel demand recovery in China and stronger-than-expected economic growth in the US.
Brent, the benchmark for two thirds of the world’s oil, was 1.07 per cent higher at $88.41 a barrel at 8.50pm UAE time.
West Texas Intermediate, the gauge that tracks US crude, was up 1.27 per cent at $82.04 a barrel.
Brent settled 1.57 per cent higher at $87.47 on Thursday, while WTI was closed up 1.07 per cent at $81.01.
The US economy slowed slightly in the final quarter of 2022, although it still grew at a faster-than-expected pace amid fears that the world's largest economy is heading towards a recession this year.
The nation's gross domestic product grew at a 2.9 per cent rate from October to December, a report from the Bureau of Economic Analysis showed. This marks two consecutive quarters of economic growth, after 3.2 per cent growth in the previous quarter.
Overall growth for 2022 was 2.1 per cent, according to the analysis, down from 5.9 per cent in 2021.
Oil futures have gained for two straight weeks after China — the world’s second-largest economy and top crude importer — reopened its borders for the first time in three years, triggering a sharp increase in airline bookings.
The market has “underpriced” China's recovery, according to Japanese bank MUFG.
“China is a dominant driver of commodities demand — consuming anything from about 10 [per cent] to 15 per cent of global [oil and gas] demand,” said Ehsan Khoman, head of research — commodities, ESG and emerging markets at MUFG.
“As such, China’s reopening matters profoundly for commodities balances as well as market pricing. Yet, with China’s activity levels past their trough and mobility rapidly normalising, this does not tally up with the broad commodity positioning.”
Investors will be closely watching a meeting of Opec delegates next week, as an EU embargo on Russian crude products comes into effect on February 5.
While Russia has been able to redirect crude barrels to China and India following the December sanctions, it will be “more challenging” for the energy exporter to divert refined products to other markets, said UBS, which expects oil prices to rise to $100 a barrel over the coming months.
“Russia may try to export more crude, but there’s a limit in terms of how much additional crude barrels China and India can take, in our view,” the Swiss lender said in a research note.
Russian oil exports declined by 200,000 barrels per day in December after an EU crude embargo and a G7 price cap on the country’s crude shipments came into effect, according to the International Energy Agency.
At the same time, Russian diesel exports surged to a multiyear high of 1.2 million bpd, of which 720,000 bpd was destined for the EU, the IEA said.
The market for diesel, a major industrial fuel, has been tight due to Ukraine war and low global inventories after the pandemic.
High natural gas prices supported increased switching activity from gas to other fuels, especially diesel and heating oil.
Europe, which still gets more than a quarter of its diesel from Russia, has been boosting imports of US diesel and petroleum, but that still might not be enough to “plug the gap” in the short term, Karen Kostanian, oil and gas analyst at Bank of America (BofA) Global Research, told The National during a media round-table on Thursday.
China, which is lifting restrictions on diesel exports, could plug 30 per cent to 50 per cent of Europe’s deficit, said Mr Kostanian.
“We don't know where Europe is going to be taking the diesel [from] because there is a general diesel deficit globally … in our opinion the [products ban] will be much tougher than the crude ban.”
Meanwhile, European natural gas prices have tumbled over the last few months due to an unusually warm winter.
Dutch Title Transfer Facility gas futures, the benchmark European contract, has fallen by about 60 per cent in the last three months.
While prices have come off last year’s highs, natural gas is still 220 per cent to 230 per cent above pre-Covid averages, the Institute of International Finance (IIF) said in a report.
“The huge spike in gas prices last summer has therefore distorted market perception, making it seem like recent declines took Europe back to ‘normal’. They did not,” said the IIF.
“Some of the drop in gas prices — besides warm weather — reflects big changes in demand, with manufacturing output in energy-intensive sectors substantially below prewar levels.”
SPECS
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Maestro
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KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
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FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Zayed Sustainability Prize
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
57%20Seconds
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
UAE currency: the story behind the money in your pockets
Scores
New Zealand 266 for 9 in 50 overs
Pakistan 219 all out in 47.2 overs
New Zealand win by 47 runs
Final results:
Open men
Australia 94 (4) beat New Zealand 48 (0)
Plate men
England 85 (3) beat India 81 (1)
Open women
Australia 121 (4) beat South Africa 52 (0)
Under 22 men
Australia 68 (2) beat New Zealand 66 (2)
Under 22 women
Australia 92 (3) beat New Zealand 54 (1)
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Team Angel Wolf Beach Blast takes place every Wednesday between 4:30pm and 5:30pm
Zayed Sustainability Prize
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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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KILLING OF QASSEM SULEIMANI
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
UAE currency: the story behind the money in your pockets
Our Time Has Come
Alyssa Ayres, Oxford University Press
THREE
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Killing of Qassem Suleimani
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
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
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
The biog
Age: 19
Profession: medical student at UAE university
Favourite book: The Ocean at The End of The Lane by Neil Gaiman
Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)
Favourite poet: Edger Allen Poe
The Details
Kabir Singh
Produced by: Cinestaan Studios, T-Series
Directed by: Sandeep Reddy Vanga
Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa
Rating: 2.5/5
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Killing of Qassem Suleimani
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Mohammed bin Zayed Majlis
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MOTHER%20OF%20STRANGERS
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MIDWAY
Produced: Lionsgate Films, Shanghai Ryui Entertainment, Street Light Entertainment
Directed: Roland Emmerich
Cast: Ed Skrein, Woody Harrelson, Dennis Quaid, Aaron Eckhart, Luke Evans, Nick Jonas, Mandy Moore, Darren Criss
Rating: 3.5/5 stars
It
Director: Andres Muschietti
Starring: Bill Skarsgard, Jaeden Lieberher, Sophia Lillis, Chosen Jacobs, Jeremy Ray Taylor
Three stars
Spec%20sheet
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