Oil prices edged higher on Tuesday after Saudi Arabia and Russia announced output cuts for August, stoking concerns over tight supply.
Brent, the benchmark for two thirds of the world’s oil, was trading 2.14 per cent higher at $76.25 a barrel at 10.56pm UAE time, while West Texas Intermediate, the gauge that tracks US crude, was up 1.73 per cent at $71 a barrel.
On Monday, Brent rose nearly 2 per cent before settling 1.01 per cent lower at $74.65 a barrel, while WTI was down 1.20 per cent $69.79.
“The Saudi extension should have been expected by everyone, but the Russian export cut news did surprise many energy traders,” said Edward Moya, senior market analyst at Oanda.
Saudi Arabia, the world’s largest oil exporter, will extend its production cut of one million barrels per day, which was initially announced for July, for another month, the Saudi Press Agency reported on Monday, citing an official source from the Ministry of Energy.
The kingdom’s production for August will be about nine million bpd and “this additional voluntary cut comes to reinforce the precautionary efforts made by Opec countries with the aim of supporting the stability and balance of oil markets”, the source said.
Saudi Arabia’s output will be near its lowest levels since the peak of the pandemic, Emirates NBD economists said in a research note on Tuesday.
In April 2020, the Opec alliance of 23 oil-producing countries announced its largest-ever production cut of 9.7 million barrels per day as Covid-19 lockdowns decimated global fuel demand and took Brent crude below $30 a barrel.
“We expect Saudi Arabia will keep output constrained for the remainder of 2023, only incrementally adding supplies to the market,” Emirates NBD said.
Russia will also cut its oil supplies by 500,000 bpd next month on top of the output reductions that have already been announced, state news agency Tass reported, citing a representative for Deputy Prime Minister Alexander Novak.
“Russian oil exports hit prewar levels in April and Asian demand kept on taking advantage of the Russian discounts,” Mr Moya said.
“[Moscow] has hardly been crippled by western sanctions as they have been able to sell crude to India, China and Turkey.”
Last month, Opec agreed to stick to its existing output cuts until the end of 2024.
The group has total production curbs of 3.66 million bpd, or about 3.7 per cent of global demand, in place, including a two million bpd reduction agreed last year and voluntary cuts of 1.66 million bpd announced in April.
Meanwhile, US manufacturing activity slumped further in June, reaching levels last seen in April 2020.
The ISM’s manufacturing PMI fell to 46.0 last month, down from 46.9 in May. The PMI remained below 50 for the eighth consecutive month, indicating contraction in the sector.
However, the prices paid for inputs fell sharply to 41.8, suggesting that goods inflation may continue to slow.
“The employment component of the ISM survey showed a decline in manufacturing jobs in June after two months of modest gains in employment,” Emirates NBD said.
The probability of a recession in the US over the coming year has dropped to 25 per cent as uncertainty triggered by the disruptive debt ceiling fight has dissipated, Goldman Sachs said.
The chances of contraction in the world’s biggest economy over the next year have come down from an earlier projection of 35 per cent as the banking sector distress appears to have only a modest economic impact, the investment bank said in its latest report on the US economy.
Factory activity growth in China, the world’s second largest economy and top crude importer, slowed in June.
The Caixin/S&P Global manufacturing purchasing managers' index eased to 50.5 last month from 50.9 in May. The 50-point index mark separates expansion from contraction.
After rising at the quickest rate in 11 months in May, Chinese manufacturing output expanded only slightly in June.
Mohammed bin Zayed Majlis
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
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- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
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- Disruption Lab and Research Centre for developing entrepreneurial skills
The Bio
Ram Buxani earned a salary of 125 rupees per month in 1959
Indian currency was then legal tender in the Trucial States.
He received the wages plus food, accommodation, a haircut and cinema ticket twice a month and actuals for shaving and laundry expenses
Buxani followed in his father’s footsteps when he applied for a job overseas
His father Jivat Ram worked in general merchandize store in Gibraltar and the Canary Islands in the early 1930s
Buxani grew the UAE business over several sectors from retail to financial services but is attached to the original textile business
He talks in detail about natural fibres, the texture of cloth, mirrorwork and embroidery
Buxani lives by a simple philosophy – do good to all
Killing of Qassem Suleimani
What's in the deal?
Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024
India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Indian employees in the UK will receive three years exemption from social security payments
India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Pakistan v New Zealand Test series
Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza
New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner
Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)
Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am
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Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
MATCH INFO
England 241-3 (20 ovs)
Malan 130 no, Morgan 91
New Zealand 165 all out (16.5ovs)
Southee 39, Parkinson 4-47
England win by 76 runs
Series level at 2-2
Jetour T1 specs
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
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Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
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World Cup League Two
Results
Oman beat Nepal by 18 runs
Oman beat United States by six wickets
Nepal beat United States by 35 runs
Oman beat Nepal by eight wickets
Fixtures
Tuesday, Oman v United States
Wednesday, Nepal v United States
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UAE currency: the story behind the money in your pockets
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The five pillars of Islam
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Profile Idealz
Company: Idealz
Founded: January 2018
Based: Dubai
Sector: E-commerce
Size: (employees): 22
Investors: Co-founders and Venture Partners (9 per cent)
Killing of Qassem Suleimani
