Oil prices climbed on Friday, posting their biggest gain in four months, as traders evaluated the prospects of further tightening of the market amid a gradual rebound in China’s crude demand and Russia’s plans to cut oil production.
Brent, the benchmark for two thirds of the world’s oil, was 2.24 per cent higher at $86.39 a barrel at the close of trading on Friday. West Texas Intermediate, the gauge that tracks US crude, closed up 2.13 per cent at $79.72 a barrel.
Brent recorded a weekly gain of 8.1 per cent, while WTI added 8.6 per cent.
Crude prices fell the previous week for the second time on the trot, dragged down by concerns about a continued rise in interest rates, following a strong US jobs report.
On Friday, Russia, the world’s second-largest oil producer after Saudi Arabia, said it would cut oil production by 500,000 barrels per day, or about 5 per cent of its crude output, in March after the West imposed price caps on Russian crude and oil products.
“As of today, we are fully selling the entire volume of oil produced. However, as stated earlier, we will not sell oil to those who directly or indirectly adhere to the principles of the 'price cap',” Deputy Prime Minister Alexander Novak said in a statement carried by news agency Tass.
“In this regard, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations”.
On February 4, the G7, the EU and Australia reached an agreement on price caps for Russian petroleum products as part of an international push to limit Russian President Vladimir Putin's war chest for his military offensive on Ukraine.
The EU imposed an embargo on Russian crude oil coming in by sea in December and, together with its G7 partners, set a cap of $60 a barrel for exports around the world.
“Lower Russian production, together with China's reopening, should tighten the oil market further over the coming quarters,” UBS strategist Giovanni Staunovo said.
“We reiterate our positive price outlook and advise risk-taking investors to add long exposure … or to sell Brent’s downside price risks.”
Optimism over China’s reopening had pushed oil prices close to $90 a barrel last month. However, rising economic uncertainty and concerns about weakening demand have since weighed on futures.
China is slowly opening up its economy and rolling back Covid-19 restrictions that slowed the growth of the world’s second-largest economy and the world’s top crude importer.
China's consumer price index in January also rose from the previous month as the country’s inflation rate approaches the government’s target of 3 per cent, which was set last year.
“Oil is heading for a strong week of gains, wiping out last week's losses, as analysts continue to be encouraged by China's transition to living with Covid,” said Craig Erlam, senior market analyst for the UK and Europe, the Middle East and Africa at Oanda.
“While the buzzword for large parts of the global economy this year is ‘resilience’, when it comes to China, it's more a question of just how strongly it will bounce back.”
The market was expecting a pick-up in growth in the second half of this year on China’s reopening, helped by the easing of Covid restrictions and fiscal and monetary measures.
“[However,] now it would appear those expectations are being brought forward, which should stimulate demand for oil and other commodities,” said Mr Erlam.
Brent prices have remained range-bound since the November sell-off as markets have been caught between “still soft prompt fundamentals and a brightening macro outlook”, oil analysts at Goldman Sachs said in a report on Thursday.
“This choppy price action masks that time spreads have actually strengthened on a pick-up in China oil demand while back-end prices have softened because of producer hedging and, possibly, a market reassessment of the long-term hit to Russian supply,” they said.
Goldman Sachs has lowered its Brent price estimate this year by $5 a barrel and expects it to rise gradually to $100 a barrel by December, a level it expects the price to stay in 2024.
Despite oil being range-bound in recent months, “a stronger Chinese recovery could well strongly test those upper limits”, Mr Erlam said.
The%20specs
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The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
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
How green is the expo nursery?
Some 400,000 shrubs and 13,000 trees in the on-site nursery
An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo
Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery
Approximately 340 species of shrubs and trees selected for diverse landscape
The nursery team works exclusively with organic fertilisers and pesticides
All shrubs and trees supplied by Dubai Municipality
Most sourced from farms, nurseries across the country
Plants and trees are re-potted when they arrive at nursery to give them room to grow
Some mature trees are in open areas or planted within the expo site
Green waste is recycled as compost
Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs
Construction workforce peaked at 40,000 workers
About 65,000 people have signed up to volunteer
Main themes of expo is ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.
Expo 2020 Dubai to open in October 2020 and run for six months
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
More on animal trafficking
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Five ways to get fit like Craig David (we tried for seven but ran out of time)
Start the week as you mean to go on. So get your training on strong on a Monday.
Train hard, but don’t take it all so seriously that it gets to the point where you’re not having fun and enjoying your friends and your family and going out for nice meals and doing that stuff.
Think about what you’re training or eating a certain way for — don’t, for example, get a six-pack to impress somebody else or lose weight to conform to society’s norms. It’s all nonsense.
Get your priorities right.
And last but not least, you should always, always chill on Sundays.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The specs: 2017 Dodge Ram 1500 Laramie Longhorn
Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
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
The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
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