Drilling rigs in Texas. US crude exports rose to 4.6 million barrels per day in the week ending on February 17. Reuters
Drilling rigs in Texas. US crude exports rose to 4.6 million barrels per day in the week ending on February 17. Reuters
Drilling rigs in Texas. US crude exports rose to 4.6 million barrels per day in the week ending on February 17. Reuters
Drilling rigs in Texas. US crude exports rose to 4.6 million barrels per day in the week ending on February 17. Reuters

Oil prices end week flat as US stockpiles rise and Russia cuts output


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Oil prices rose for the second consecutive day on Friday but ended the week flat as US stockpiles rose and Russia cut output.

Brent, the benchmark for two thirds of the world’s oil, settled 1.16 per cent higher at $83.16 at the close of trading. West Texas Intermediate, the gauge that tracks US crude, closed up 1.23 per cent at $76.32 a barrel.

Brent prices rose 0.2 per cent over the previous week and WTI was little changed.

“The short-term crude demand outlook appears to be improving, while stockpiles continue to rise,” said Edward Moya, a senior market analyst at Oanda.

US crude exports rose to 4.6 million barrels per day in the week ending on February 17, up about 46 per cent from a week earlier, according to the US Energy Information Administration.

Meanwhile, US crude stocks — an indicator of petroleum demand — increased by 7.6 million barrels last week, the EIA said.

“It looks like oil has been beaten up enough. It doesn’t seem like recession risks [would] feel real until closer to the summer, so the oil market should be relatively tight until then,” said Mr Moya.

Brent has changed little since since the previous Friday’s closing on rising US crude inventories and fears of more aggressive interest rate increases by central banks.

Minutes released by the US Federal Reserve from its latest meeting showed that policymakers expect continuing interest rate increases to bring inflation back down to their long-term goal of 2 per cent.

Most officials agreed to reduce the pace of rate increases to 25 basis points but a few recommended an increase of 50 bps to bring the Fed Funds rate to a level they consider “sufficiently restrictive”.

This month’s US economic data pointed to stubborn inflation in the world’s largest economy, making a case for larger interest rate raises.

After its February meeting, the Fed raised interest rates by 25 bps — the eighth increase since March 2022. The Fed's next meeting is scheduled for March 21 to March 22.

Expectations of further interest rate raises have also strengthened the dollar.

The US Dollar Index — a measure of its value against a weighted basket of major currencies — has gained about 3 per cent over the last month. It was marginally down at 104.56 on Friday.

A stronger dollar makes dollar-denominated oil more expensive for holders of other currencies.

The US economy grew slightly less than estimated at 2.7 per cent in the fourth quarter of 2022, the Commerce Department said on Thursday, citing a downward revision to consumer spending.

The world’s largest economy grew 3.2 per cent in the third quarter.

“The deceleration in real GDP … primarily reflected a downturn in exports and decelerations in consumer spending, non-residential fixed investment and state and local government spending,” the department said.

The prospect of a bigger Russian supply cut also supported prices.

Moscow plans to cut oil exports from its western ports by up to 25 per cent in March, compared with February, Reuters reported, citing Russian oil sources.

Russia, the world’s second-largest oil producer after Saudi Arabia, had previously said it would cut production by 500,000 bpd, or about 5 per cent of the output, next month after the West imposed price caps on its crude and refined products on February 5.

Company%20profile%20
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The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

The%20Sandman
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THE BIO

Bio Box

Role Model: Sheikh Zayed, God bless his soul

Favorite book: Zayed Biography of the leader

Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet

Favorite food: seafood

Favorite place to travel: Lebanon

Favorite movie: Braveheart

Get inspired

Here are a couple of Valentine’s Day food products that may or may not go the distance (but have got the internet talking anyway).

Sourdough sentiments: Marks & Spencer in the United Kingdom has introduced a slow-baked sourdough loaf dusted with flour to spell out I (heart) you, at £2 (Dh9.5). While it’s not available in the UAE, there’s nothing to stop you taking the idea and creating your own message of love, stencilled on breakfast-inbed toast.  

Crisps playing cupid: Crisp company Tyrells has added a spicy addition to its range for Valentine’s Day. The brand describes the new honey and chilli flavour on Twitter as: “A tenderly bracing duo of the tantalising tingle of chilli with sweet and sticky honey. A helping hand to get your heart racing.” Again, not on sale here, but if you’re tempted you could certainly fashion your own flavour mix (spicy Cheetos and caramel popcorn, anyone?). 

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

Updated: February 26, 2023, 7:58 AM`