Oil prices rebounded on Thursday after falling for two straight days as prospects of higher demand offset a large increase in US crude stocks.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.61 per cent higher at $85.90 a barrel at 11.23am UAE time.
West Texas Intermediate, the gauge that tracks US crude, was up 0.85 per cent at $79.26 a barrel.
On Wednesday, the International Energy Agency raised its 2023 global oil demand estimates on China’s reopening.
Global oil demand will rise by 2 million barrels per day to 101.9 million bpd this year, up from the IEA's forecast of 1.9 million bpd last month, it said.
China, which reopened its borders last month after adhering to a strict zero-Covid policy for about three years, will make up 900,000 bpd of the increase, the agency said.
The IEA, which expects Russian crude output to “contract” this year, said the country’s oil exports rose by 300,000 bpd in January from a month earlier.
Russia plans to slash its output by 500,000 bpd, or about 5 per cent of its production, in March in response to a price cap on exports of its refined products, state news agency Tass reported.
Oil prices rose more than 2 per cent last Friday following the report, but concerns about global growth have weighed on futures this week.
"The range-bound trading we are witnessing since Russia’s decision speaks to the realisation that these barrels, which are soon to be off global markets, were largely priced in," said Ehsan Khoman, head of commodities, ESG and emerging markets at MUFG.
The Japanese bank expects Russia to shut-in crude oil and refined supply of up to 1.3 million bpd this year as a result of the EU sanctions.
"Our conviction remains that against critically low inventories and limited spare production capacity, it won’t take much for resurgent Chinese demand to hit the wall of supply constraints this year," Mr Khoman said.
Meanwhile, US crude stocks jumped by 16.3 million barrels to 471.4 million barrels in the week that ended on February 10, their highest level since June 2021, the US Energy Information Administration (EIA) said.
The headline build was “well above” average analysts’ estimates of a 1.38 million increase, said Edward Moya, senior market analyst at Oanda.
The large build was mainly due to an upwards “adjustment” of 1.97 million bpd to last week’s crude supplies, which can be seen as a “balancing item”, the EIA said in its weekly report.
The American Petroleum Institute earlier reported a 10.51-million-barrel increase in US crude stockpiles, “so some traders were somewhat expecting a big build”, Mr Moya said.
On Tuesday, Opec raised its 2023 oil demand forecast by 100,000 bpd on expectations of an economic rebound in China.
The group expects global oil demand to grow by 2.3 million bpd this year, which is higher than its previous estimate of 2.2 million bpd growth for 2023.
However, high inflation, monetary tightening, sovereign debt levels and geopolitical tension could weigh on global oil demand prospects, Opec said.
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
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More from Rashmee Roshan Lall
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
Killing of Qassem Suleimani
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
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
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FIGHT CARD
Bantamweight Hamza Bougamza (MAR) v Jalal Al Daaja (JOR)
Catchweight 67kg Mohamed El Mesbahi (MAR) v Fouad Mesdari (ALG)
Lighweight Abdullah Mohammed Ali (UAE) v Abdelhak Amhidra (MAR)
Catchweight 73kg Mostafa Ibrahim Radi (PAL) v Yazid Chouchane (ALG)
Middleweight Yousri Belgaroui (TUN) v Badreddine Diani (MAR)
Catchweight 78kg Rashed Dawood (UAE) v Adnan Bushashy (ALG)
Middleweight Sallaheddine Dekhissi (MAR) v Abdel Emam (EGY)
Catchweight 65kg Rachid Hazoume (MAR) v Yanis Ghemmouri (ALG)
Lighweight Mohammed Yahya (UAE) v Azouz Anwar (EGY)
Catchweight 79kg Omar Hussein (PAL) v Souhil Tahiri (ALG)
Middleweight Tarek Suleiman (SYR) v Laid Zerhouni (ALG)
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
