The Opec+ alliance of 23 oil-producing countries has agreed to roll over its existing oil output cuts as the fuel demand outlook in China — the world’s second-largest economy and top crude importer — improves.
"The [Joint Ministerial Monitoring Committee] reaffirmed their commitment to the [declaration of co-operation] which extends to the end of 2023," said the group, which slashed its collective output by 2 million barrels per day in October last year.
The committee reviewed crude oil production data for the months of November and December and urged all participating countries to achieve "full conformity".
The next meeting of the JMMC is scheduled for April 3.
The announcement comes as oil prices have rallied by nearly 13 per cent since falling to a low of $76 last month, after China lifted Covid-19 restrictions and hopes grew that easing inflation would slow the rate of interest rate increases by central banks.
Brent, the benchmark for two thirds of the world’s oil, was down 3 per cent at $82.90 a barrel at 11.26 pm UAE time.
The International Monetary Fund on Tuesday marginally raised its global economic growth forecast for 2023, but said that more work needed to be done for a full recovery to take place.
The fund, which raised its economic growth estimate for this year to 2.9 per cent from a previous forecast of 2.7 per cent, said a depreciating US dollar, coupled with global monetary policy tightening, was starting to cool demand and inflation.
Meanwhile, global oil demand is set to reach record levels this year, supported by fuel demand recovery in top manufacturing hub China.
The International Energy Agency (IEA) has said the Asian country will account for nearly half of its 2023 oil demand growth forecast of 1.9 million bpd.
Research firm Energy Intelligence expects demand to grow to 101.2 million bpd this year, surpassing a previous record of 100.6 million bpd in 2019.
Although China represents 10 per cent to 15 per cent of global oil and gas demand, the country's recovery has not been entirely priced in by global commodity markets, according to Japanese bank MUFG.
The existing commodity prices do not “tally up” with China’s economic growth and “rapidly normalising” mobility in the country, said Ehsan Khoman, head of research — commodities, ESG and emerging markets at MUFG, in a report.
Energy markets are set to tighten further as an EU embargo on Russian crude products comes into effect on February 5.
The Group of Seven advanced economies is also considering a price cap on refined products from Russia, similar to the one the alliance imposed on Russia’s crude exports at the end of last year.
“Once the EU embargo on Russian seaborne fuel exports kicks in, we are likely to see prices for gasoline and especially diesel remain supported by tightening supply,” said Ole Hansen, head of commodity strategy at Saxo Bank, this week.
“Russia may, however, struggle to offload its diesel to other buyers, with key customers in Asia being more interested in feeding their refineries with heavily discounted Russian crude, which can then be turned into fuel products selling at the prevailing global market price,” said Mr Hansen.
Russian oil exports declined by 200,000 bpd last month after an EU crude embargo and the G7 price cap on the country’s crude shipments came into effect on December 5, according to the IEA.
The latest Opec+ meeting, the group’s third over the last four months, underlines its growing role in maintaining oil market stability as oil and gas producers in Europe and North America face supply constraints and rising investor pressure.
The supergroup would take a decision “that serves balancing the market”, Suhail Al Mazrouei, the UAE's Minister of Energy and Infrastructure, told reporters on the sidelines of an event in Abu Dhabi this month.
“With China reopening, hopefully, we will see a pick-up in the [crude] demand.”
Oil prices have been volatile since the start of Russia’s military offensive in Ukraine last February. After surging to a 14-year high of nearly $140 a barrel last March, Brent is currently trading in the $80 to $85 range.
“The biggest dangers to the oil price complex are actually coming from the potential demand destruction because of the Ukraine and Russia war and also under-investment,” Karen Kostanian, oil and gas analyst at Bank of America (BofA) Global Research, said at a media round-table last week.
Opec+ may have held its output steady at the last meeting fearing the demand destruction that would come with a recession, Mr Kostanian said.
Meanwhile, oil and gas exploration activity picked up pace last year after the pandemic had stalled or delayed several projects.
New oil and gas discoveries in 2022 could create at least $33 billion in value at Brent prices of $60 a barrel, according to Energy consultancy Wood Mackenzie.
While exploration well numbers were less than half the levels seen in pre-pandemic years, the total volume of 20 billion barrels of oil equivalent matched the average annual volumes from 2013 to 2019, Wood Mackenzie said.
“The highest value came from world-class discoveries in a new deepwater play in Namibia, as well as resource additions in Algeria and several new deepwater discoveries in Guyana and Brazil,” said Julie Wilson, director of global exploration research at Wood Mackenzie.
“The average discovery last year was over 150 million barrels of oil equivalent, more than double the average of the previous decade.”
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
Where to Find Me by Alba Arikha
Alma Books
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
Match statistics
Dubai Sports City Eagles 8 Dubai Exiles 85
Eagles
Try: Bailey
Pen: Carey
Exiles
Tries: Botes 3, Sackmann 2, Fourie 2, Penalty, Walsh, Gairn, Crossley, Stubbs
Cons: Gerber 7
Pens: Gerber 3
Man of the match: Tomas Sackmann (Exiles)
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
LA LIGA FIXTURES
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
UAE currency: the story behind the money in your pockets
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Results
1.30pm Handicap (PA) Dh50,000 (Dirt) 1,400m
Winner Al Suhooj, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)
2pm Handicap (TB) 68,000 (D) 1,950m
Winner Miracle Maker, Xavier Ziani, Salem bin Ghadayer
2.30pm Maiden (TB) Dh60,000 (D) 1,600m
Winner Mazagran, Tadhg O’Shea, Satish Seemar
3pm Handicap (TB) Dh84,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer
3.30pm Handicap (TB) Dh76,000 (D) 1,400m
Winner Alla Mahlak, Adrie de Vries, Rashed Bouresly
4pm Maiden (TB) Dh60,000 (D) 1,200m
Winner Hurry Up, Royston Ffrench, Salem bin Ghadayer
4.30pm Handicap (TB) Dh68,000 (D) 1,200m
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
Roger Federer's record at Wimbledon
Roger Federer's record at Wimbledon
1999 - 1st round
2000 - 1st round
2001 - Quarter-finalist
2002 - 1st round
2003 - Winner
2004 - Winner
2005 - Winner
2006 - Winner
2007 - Winner
2008 - Finalist
2009 - Winner
2010 - Quarter-finalist
2011 - Quarter-finalist
2012 - Winner
2013 - 2nd round
2014 - Finalist
2015 - Finalist
2016 - Semi-finalist
A list of the animal rescue organisations in the UAE
Friday's schedule in Madrid
Men's quarter-finals
Novak Djokivic (1) v Marin Cilic (9) from 2pm UAE time
Roger Federer (4) v Dominic Thiem (5) from 7pm
Stefanos Tsitsipas (8) v Alexander Zverev (3) from 9.30pm
Stan Wawrinka v Rafael Nadal (2) from 11.30pm
Women's semi-finals
Belinda Bencic v Simona Halep (3) from 4.30pm
Sloane Stephens (8) v Kiki Bertens (7) from 10pm
BIG SPENDERS
Premier League clubs spent £230 million (Dh1.15 billion) on January transfers, the second-highest total for the mid-season window, the Sports Business Group at Deloitte said in a report.
The specs: 2018 Mercedes-Benz GLA
Price, base / as tested Dh150,900 / Dh173,600
Engine 2.0L inline four-cylinder
Transmission Seven-speed automatic
Power 211hp @ 5,500rpm
Torque 350Nm @ 1,200rpm
Fuel economy, combined 6.4L / 100km
