Oil prices edged up on Thursday after recording three straight days of losses as a large drop in US crude stocks helped offset persistent worries about China’s economic growth.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.90 per cent higher at $84.20 a barrel at 10.03pm UAE time, while West Texas Intermediate, the gauge that tracks US crude, was up 1.30 per cent at $80.41.
On Wednesday, Brent settled 1.70 per cent lower at $83.45 a barrel, while WTI was down 1.99 per cent at $79.38.
“The effects of weak data from Chinese economy and thereby the oil demand drove oil prices lower,” said Ehsan Khoman, head of commodities, ESG and emerging markets at MUFG.
“In addition, stronger-than-expected US consumer demand data raised US Federal Reserve’s policy tightening efficiency, causing the commodities complex to post losses, including oil,” Mr Khoman said in a research note on Thursday.
China, the world’s second-largest economy and top crude importer, will work to achieve its economic targets this year, Prime Minister Li Qiang was quoted as saying by the official Xinhua news agency on Wednesday.
The country, which is aiming for a gross domestic product growth rate of 5 per cent in 2023, will focus on expanding domestic demand through consumption and pro-investment policies, Mr Li said.
This week, China’s central bank cut key policy rates for the second time since June in an attempt to revive sagging economic growth.
However, weak economic data for July soured investor sentiment.
China’s industrial output and retail sales grew at a slower pace, compared with June, the National Bureau of Statistics said.
Despite growing concerns about the country’s economy, China’s refiners processed about 14.9 million barrels per day of crude in July, up more than 31 per cent from the same period a year earlier, MUFG said.
“These numbers suggest that China drew down crude oil inventories after fairly strong builds in both May and June,” Mr Khoman said.
Meanwhile, US crude stocks, an indicator of fuel demand in the world’s largest economy, fell by six million barrels last week to 439.7 million barrels, according to data from the Energy Information Administration.
Analysts polled by Reuters were expecting a drop of 2.3 million barrels.
Petroleum inventories decreased by 300,000 barrels in the week that ended on August 11, while distillate stocks rose by 300,000 barrels, the EIA data showed.
Policymakers at the US Federal Reserve continue to see “significant upside risks” to inflation that may require more monetary tightening, minutes released from the central bank's most recent meeting showed.
The minutes from the Fed's July 28-29 meeting showed that “a couple of participants” indicated a preference for leaving rates unchanged or signalled they would support a proposal to do so.
Last month, the Fed raised US interest rates by 25 basis points, its 11th increase since March 2022, as part of its efforts to lower inflationary pressure on the nation's economy.
This brought the Fed's benchmark rate to the target range of 5.25 per cent and 5.5 per cent, the highest in 22 years.
The central bank's next meeting will be held on September 19 and 20.
“Oil is also battling a strong dollar, which looks like it might not be done strengthening unless we get some action from China and Japan,” said Edward Moya, senior market analyst at Oanda.
The US Dollar Index – a measure of its value against a weighted basket of major currencies – has gained nearly 1 per cent over the past week.
“Looking ahead, we believe the impressive rebound in oil prices may lose some steam in the near term, as rising prices are expected to help boost production in the US,” Mr Khoman said.
“On the demand side, risks stem from lower than anticipated Chinese stimulus. Hedge fund managers are cutting net bullish bets after exuberance since end-June. Hence, we expect the current seven successive weeks’ rally to cool down in the short term.”
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
BACK%20TO%20ALEXANDRIA
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What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
SERIES SCHEDULE
First Test, Galle International Stadium
July 26-30
Second Test, Sinhalese Sports Club Ground
August 3-7
Third Test, Pallekele International Cricket Stadium
August 12-16
First ODI, Rangiri Dambulla International Stadium
August 20
Second ODI, Pallekele International Cricket Stadium
August 24
Third ODI, Pallekele International Cricket Stadium
August 27
Fourth ODI, R Premadasa Stadium
August 31
Fifth ODI, R Premadasa Stadium
September 3
T20, R Premadasa Stadium
September 6
Company%20Profile
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%20profile
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Venom
Director: Ruben Fleischer
Cast: Tom Hardy, Michelle Williams, Riz Ahmed
Rating: 1.5/5
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Meydan race card
6.30pm: Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
7.05pm: Maiden (TB) Dh165,000 (D) 1,200m
7.40pm: Maiden (TB) Dh165,000 (D) 1,400m
8.15pm: Handicap (TB) Dh170,000 (D) 1,900m
8.50pm: Rated Conditions (TB) Dh240,000 (D) 1,600m
9.25pm: Handicap (TB) Dh175,000 (D)1,200m
10pm: Handicap (TB) Dh165,000 (D) 1,400m
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Race 3
Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
