Oil prices steadied in morning trading on Tuesday after falling by about 1 per cent the previous day amid concerns that further interest rate increases would dampen fuel demand.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.49 per cent higher at $82.90 a barrel at 10.45am UAE time.
West Texas Intermediate, the gauge that tracks US crude, was up 0.74 per cent at $76.24 a barrel.
On Monday, Brent settled 0.85 per cent lower at $82.45 while WTI was down 0.84 per cent at $75.68.
“Oil seems like it will stay heavy as both tensions between the two largest economies and recession worries grow,” said Edward Moya, a senior market analyst at Oanda.
“This week, we will have a better handle on global manufacturing activity, with many traders fixating on China's recovery.”
Strong US manufacturing data in January stoked fears of more aggressive interest rate increases.
Orders for non-defence capital goods, excluding aircraft, a measure of core business investment, rose by 0.8 per cent in January, after dipping 0.1 per cent a month earlier, according to the US Commerce Department.
However, orders for headline durable goods, which are meant to last at least three years, dropped by 4.5 per cent last month.
Minutes released by the US Federal Reserve last week 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”.
Expectations of additional interest rate raises have lent support to the dollar.
The US Dollar Index, which measures the value of the dollar against a selection of major currencies, has risen by about 2.5 per cent in the past month. It was up 0.15 per cent at 104.83 on Tuesday.
A stronger dollar makes oil, which is denominated in the greenback, more expensive for holders of other currencies.
Investors will be closely following the most recent US crude inventory figures, which are set to be released by the American Petroleum Institute on Tuesday and by the Energy Information Administration on Wednesday.
These reports will provide additional indications regarding the demand for oil.
“Oil prices are on track for another monthly close lower as concerns that tighter interest rate policy in the US will prompt a slowdown in the economy, outweigh the reopening of China’s market,” said Edward Bell, senior director of market economics at Emirates NBD.
Brent is down by about 4 per cent since the start of the year even as China, the world’s second-largest economy and top crude importer, reopens its economy after following a strict zero-Covid policy for nearly three years.
The International Energy Agency expects global oil demand to surge to record levels this year on China’s recovery.
Global oil demand will rise by 2 million barrels per day to 101.9 million bpd in 2023, the agency said in its February oil market report.
It had previously forecast a growth of 1.9 million bpd.
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The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
Zayed Sustainability Prize
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%20%3C%2Fstrong%3EGrowdash%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJuly%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ESean%20Trevaskis%20and%20Enver%20Sorkun%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3ERestaurant%20technology%0D%3Cbr%3E%3Cstrong%3EFunding%20so%20far%3A%3C%2Fstrong%3E%20%24750%2C000%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Plus%20VC%2C%20Judah%20VC%2C%20TPN%20Investments%20and%20angel%20investors%2C%20including%20former%20Talabat%20chief%20executive%20Abdulhamid%20Alomar%2C%20and%20entrepreneur%20Zeid%20Husban%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
How it works
Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.
Round by round, the player expands their empire. The more land they have, the more money they can take from their coffers for each go.
As unruled land and soldiers are acquired, players must feed them. When a player comes up against land held by another army, they can choose to battle for supremacy.
A dice-based battle system is used and players can get the edge on their enemy with by deploying a renowned hero on the battlefield.
Players that lose battles and land will find their coffers dwindle and troops go hungry. The end goal? Global domination of course.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
AUSTRALIA SQUADS
ODI squad: Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Josh Hazlewood, Marnus Labuschagne, Mitchell Marsh, Glenn Maxwell, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Twenty20 squad: Aaron Finch (captain), Sean Abbott, Ashton Agar, Alex Carey, Pat Cummins, Mitchell Marsh, Glenn Maxwell, Jhye Richardson, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
