Oil prices fell in morning trade on Tuesday on a strong dollar and concerns about further monetary tightening by the US Federal Reserve.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.51 per cent lower at $83.64 a barrel at 12.47am UAE time.
West Texas Intermediate, the gauge that tracks US crude, was up 0.56 per cent at $76.77 a barrel.
"There is undoubtedly more optimism around the Chinese economy which will stimulate more demand this year but at the same time, sentiment is cooling on the global economy as interest rates are projected to go a little higher than previously anticipated," said Edward Moya, senior market analyst at Oanda.
"This was always likely to be a quarter of big swings in sentiment as it was too much to ask for the inflation data to simply retreat back without any setbacks along the way."
Last week’s US economic data pointed to stubborn inflation in the world’s largest economy, making a case for larger interest rate increases.
Earlier this month, the Fed increased interest rates by 25 basis points — the eighth increase since March 2022. It also hinted at the possibility of further rate increases in the future.
The current target range for interest rates set by the Fed is 4.5 per cent to 4.75 per cent, which is about 50 bps below the end-of-year projection of 5.1 per cent.
Markets are also awaiting the minutes of the Fed’s February policy meeting, due on Wednesday.
Meanwhile, the US Dollar Index — a measure of the value of the greenback against a weighted basket of major currencies — was up 0.19 per cent at 104.06.
A stronger dollar makes oil more expensive for holders of other currencies.
On Monday, the Saudi Arabia’s Energy Minister said the Opec+ group of 23 oil-producing countries could alter its output policy if market conditions changed.
“We are flexible enough to adjust Opec+ decisions if needed,” Prince Abdulaziz bin Salman said at a conference in the kingdom, according to a Bloomberg report.
At its meeting this month, the group agreed to stick to existing production output cuts of 2 million barrels per day.
However, the belief that Opec+ can keep prices supported “wherever they want is waning as global growth outlooks take a turn for the worse”, said Mr Moya.
“As long as supplies seem ample, Opec+ will be playing catch-up to keep the market tight.”
Global oil demand climbed in December by 1.3 million bpd to hit a record, driven by rising consumption in Japan, Indonesia and South Korea, according to data from the Joint Organisations Data Initiative (Jodi).
Meanwhile, global crude production in the month declined by 274,000 bpd to a five-month low, led by losses in the US and the UK, Jodi said.
On Tuesday, the International Monetary Fund said that although there are continuing challenges for regional economies such as China due to the slowing global momentum, the easing of economic headwinds was a positive sign pointing to a stronger recovery in Asia this year.
Economies in the Asia-Pacific region are set to grow by 4.7 per cent this year, up from 3.8 per cent in 2022, the fund has said.
The global economy is expected to experience growth of 2.9 per cent in the current year, following a 3.4 per cent expansion in 2022, according to IMF’s Economic Outlook released in January.
The American Petroleum Institute is expected to publish its weekly US crude inventories report today.
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Sunday's fixtures
- Bournemouth v Southampton, 5.30pm
- Manchester City v West Ham United, 8pm
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
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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
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
Company Profile
Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
RACECARD
4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m
5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m
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