Oil prices rose on Tuesday as investors assessed the impact of supply cuts by Opec+ producers ahead of the release of a host of reports on global economy and inflation, as well as crude demand and supply that could determine the market's direction.
Brent, the benchmark for two thirds of the world’s oil, was up 0.88 per cent to $84.92 a barrel on Tuesday at 7.08pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was 1.34 per cent higher at $80.81 a barrel.
Oil prices dropped on Monday following their third weekly gain. Brent closed 1.1 per cent lower at 84.18 per barrel, while WTI dropped 1.2 per cent to 79.74 a barrel.
Crude prices rose last week after Opec+ members Saudi Arabia, the UAE, Iraq, Kuwait, Oman and Algeria said they would introduce voluntary oil production cuts of 1.16 million barrels per day from May until the end of this year.
Russia said the 500,000 bpd cut it was implementing from March to June would continue until the end of the year.
The producers said the precautionary measure was aimed at supporting the stability of the oil market.
“Assessments for the impact of Opec+ cuts will come from the EIA [Energy Information Administration] and IEA [International Energy Agency] later this week as well as Opec’s own oil market report,” Edward Bell, senior director of market economics as Emirates NBD, said in a note on Tuesday.
Crude prices have rebounded from a 15-month low hit last month due to a banking crisis in the US that spread to Switzerland, leading to the collapse of four lenders and sparking a broad sell-off in financial markets.
A drop in US crude inventories as well as disruptions to the supply of about 450,000 barrels a day of oil to the global market from Iraq via Turkey helped in propelling prices higher.
The latest pledge of output cuts by Opec+ members has pushed the volume of their production caps to about 3.66 million bpd, which accounts for about 3.6 per cent of Opec’s 101.9 million bpd estimated world oil demand this year.
Although oil is still up about 6 per cent since the April 2 surprise announcement by Opec+ producers, traders are awaiting data on inflation and economy that will indicate global economic sentiment and potential demand for oil in the quarters to come.
“A tsunami of data and projections is expected to be unleashed starting later today, which is likely to buffet oil sentiment directly and indirectly,” Vanda Insights, a Singapore-based energy market intelligence company, said in a note.
The World Bank and the International Monetary Fund are meeting in Washington this week to discuss the global economy, which the IMF expects will grow at less than 3 per cent this year.
The fund will release its latest global growth projections as well as its global financial stability report on Tuesday.
On Monday, the World Bank revised its 2023 global growth forecast slightly upwards to 2 per cent from a January forecast of 1.7 per cent on the improved outlook for China’s economy as it winds down pandemic-related restrictions.
China, the world’s second-largest economy, is projected to expand 5.1 per cent this year compared with 4.3 per cent in the bank’s January Global Economic Prospects report.
Other key data due this week includes US inflation and retail sales figures.
Inflation figures will help determine the US Federal Reserve's monetary policy direction. The Fed has been increasing its benchmark policy rates since March last year to bring inflation down to its 2 per cent target range.
The pace of growth in US payrolls fell for a second consecutive month in March, adding to recession concerns in the world's largest economy.
However, the World Bank on Monday said advanced economies, including the US, are doing a bit better than it expected in January.
“The short-term crude demand outlook will soon be clearer. This week, we will find if the US economy is taking the steps into the recession pool or if it is going to do a cannonball into it,” Edward Moya, senior market analyst at Oanda, said.
“Wall Street should have a strong handle on the trajectory of the economy after it gets a pivotal inflation report, the latest retail sales numbers and bank earnings along with their respective outlooks for the American consumer.”
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
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6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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Total club appearances 411
Total goals scored 241
Appearances for Barca 186
Goals scored for Barca 105
World Mental Health Day
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part three: the age of the electric vehicle begins
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Our family matters legal consultant
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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ESSENTIALS
The flights
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.
Korean Film Festival 2019 line-up
Innocent Witness, June 26 at 7pm
On Your Wedding Day, June 27 at 7pm
The Great Battle, June 27 at 9pm
The Witch: Part 1. The Subversion, June 28 at 4pm
Romang, June 28 at 6pm
Mal Mo E: The Secret Mission, June 28 at 8pm
Underdog, June 29 at 2pm
Nearby Sky, June 29 at 4pm
A Resistance, June 29 at 6pm
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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The biog
Hobby: "It is not really a hobby but I am very curious person. I love reading and spend hours on research."
Favourite author: Malcom Gladwell
Favourite travel destination: "Antigua in the Caribbean because I have emotional attachment to it. It is where I got married."
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
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SPEC SHEET
Display: 10.9" Liquid Retina IPS, 2360 x 1640, 264ppi, wide colour, True Tone, Apple Pencil support
Chip: Apple M1, 8-core CPU, 8-core GPU, 16-core Neural Engine
Memory: 64/256GB storage; 8GB RAM
Main camera: 12MP wide, f/1.8, Smart HDR
Video: 4K @ 25/25/30/60fps, full HD @ 25/30/60fps, slo-mo @ 120/240fps
Front camera: 12MP ultra-wide, f/2.4, Smart HDR, Centre Stage; full HD @ 25/30/60fps
Audio: Stereo speakers
Biometrics: Touch ID
I/O: USB-C, smart connector (for folio/keyboard)
Battery: Up to 10 hours on Wi-Fi; up to 9 hours on cellular
Finish: Space grey, starlight, pink, purple, blue
Price: Wi-Fi – Dh2,499 (64GB) / Dh3,099 (256GB); cellular – Dh3,099 (64GB) / Dh3,699 (256GB)
Points about the fast fashion industry Celine Hajjar wants everyone to know
- Fast fashion is responsible for up to 10 per cent of global carbon emissions
- Fast fashion is responsible for 24 per cent of the world's insecticides
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- Fast fashion labour workers make 80 per cent less than the required salary to live
- 27 million fast fashion workers worldwide suffer from work-related illnesses and diseases
- Hundreds of thousands of fast fashion labourers work without rights or protection and 80 per cent of them are women
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Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
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