Oil prices fell in afternoon trading on Tuesday as concerns about further interest rate increases and a stronger dollar offset optimism over an improving global economic outlook.
Brent, the benchmark for two thirds of the world’s oil, was 1.37 per cent lower at $83.74 a barrel at 2.22pm UAE time while West Texas Intermediate, the gauge that tracks US crude, was down 1.54 per cent at $76.70 a barrel.
Brent settled about 2 per cent lower at $84.90 on Monday while WTI fell 2.23 per cent to close at $77.90.
“The latest news on the macro front is not bad, at all. The Chinese reopening is now well reflected through the first set of economic data,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“And the cherry on top, the IMF [International Monetary Fund] raised its growth forecast for this year … this is the kind of news that the energy markets normally cheer, but not this time, apparently.”
The IMF marginally raised its growth forecast to 2.9 per cent for 2023 and said easing inflation and China’s reopening pointed to resilience in the global economy.
China's output is projected to accelerate to 5.2 per cent, compared with a previous 4.4 per cent forecast, while India is expected to outpace the world's economies with a 6.1 per cent expansion in 2023, after growing 6.8 per cent last year.
India and China — two of the world’s largest crude oil importers — will account for half of global growth this year, compared with only a tenth for the US and euro area combined, the IMF said.
The fund expects oil prices to fall by about 16 per cent this year.
The average assumed price of oil based on futures markets as of November 29, 2022, is $81.13 in 2023 and $75.36 in 2024, the fund said.
Energy traders will be closely following Wednesday’s Opec+ meeting, where delegates are widely expected to recommend continuing the group’s existing oil output policy.
The US Federal Reserve, which will start its first policy meeting of this year later on Tuesday, is expected to announce a smaller interest rate increase amid cooling inflation rates in the world's largest economy.
“The US dollar is gaining some positive momentum into the Fed meeting, as investors know that the Fed won’t declare victory over inflation despite the falling inflation, and position accordingly,” said Ms Ozkardeskaya.
The US Dollar Index, a measure of the value of the greenback against a weighted basket of major currencies, was up 0.20 per cent at 102.48. A stronger dollar makes oil more expensive for holders of other currencies.
At its last meeting in December, the Fed raised interest rates — for the seventh time in 2022 — by 50 basis points.
The US central bank will most likely announce a smaller increase of 25 basis points this week, but there is “little chance” it will declare the end of monetary tightening, said Ms Ozkardeskaya.
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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
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SHOW COURTS ORDER OF PLAY
Wimbledon order of play on Tuesday, July 11
All times UAE ( 4 GMT)
Centre Court
Adrian Mannarino v Novak Djokovic (2)
Venus Williams (10) v Jelena Ostapenko (13)
Johanna Konta (6) v Simona Halep (2)
Court 1
Garbine Muguruza (14) v
Svetlana Kuznetsova (7)
Magdalena Rybarikova v Coco Vandeweghe (24)
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
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Barcelona v Real Madrid, 11pm UAE
Match is on BeIN Sports
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NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
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Winner: Halima Hatun, Antonio Fresu (jockey), Ismail Mohammed (trainer).
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Winner: Moosir, Dane O’Neill, Doug Watson.
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9.25pm: Longines Ladies La Grande Classique Dh155,000 Handicap 1,600m.
Winner: Secret Trade, Tadhg O’Shea, Ali Rashid Al Raihe.
10pm: Longines Moon Phase Master Collection Dh170,000 Handicap 2,000m.
Winner:
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Killing of Qassem Suleimani
INFO
Everton 0
Arsenal 0
Man of the Match: Djibril Sidibe (Everton)
Brief scoreline:
Liverpool 5
Keita 1', Mane 23', 66', Salah 45' 1, 83'
Huddersfield 0
UAE currency: the story behind the money in your pockets
MATCH INFO
Manchester City 1 (Gundogan 56')
Shakhtar Donetsk 1 (Solomon 69')
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
