Oil prices fell on Tuesday amid the potential easing of the limited crude supply and continued concerns over China’s economic growth.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.54 per cent lower at $84.00 a barrel at 4.03pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was down 0.50 per cent at $80.32 a barrel.
On Monday, Brent settled 0.40 per cent lower at $84.46 a barrel, while WTI fell 0.65 per cent to $80.72.
“Risks to the crude demand outlook are growing, especially after China disappointed with last night’s easing, but for now a tight market should keep oil supported,” said Edward Moya, senior market analyst at Oanda.
“Right now, there are so many oil drivers, and most support higher prices. Heating oil prices are elevated, and that might continue.”
Iraq's Oil Minister Hayan Abdel Ghani is visiting Turkey to discuss several issues, including the resumption of oil exports through the Ceyhan oil terminal, Reuters reported on Monday, citing a source.
About 450,000 barrels of oil was trapped in Iraqi Kurdistan in late March after the International Chamber of Commerce ruled on a long-standing complaint from Baghdad against unilateral exports by the region.
On April 4, a deal was struck between Baghdad and Erbil to allow the federal government to market the oil produced from Iraqi Kurdistan in exchange for monthly budget transfers to the region amounting to 12.67 per cent of Iraq's oil revenue. Baghdad and Ankara had been working to iron out technical hurdles.
The oil market is being driven by limited supply and Chinese demand expectations, Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a research note on Tuesday.
“These days, the Chinese demand expectations are very much in focus, which could help the oil bears take advantage for selling the recent rally in oil prices,” she said.
On Monday, the People's Bank of China announced a moderate cut to its one-year benchmark lending rate amid expectations it would take aggressive stimulus measures to revive growth in the world’s second-largest economy.
The one-year loan prime rate was reduced by 10 basis points to 3.45 per cent, while the five-year LPR was left at 4.20 per cent.
China’s economic recovery has lost momentum mainly due to a deepening property slump and weak consumer spending.
Last week, China’s central bank cut key policy rates for the second time in three months as industrial output and retail sales recorded slower growth in July.
Meanwhile, the country has officially fallen into deflation, with both consumer and producer prices declining last month compared with a year prior.
Global oil demand is set to expand by 2.2 million barrels per day this year, with China accounting for more than 70 per cent of that growth, according to the International Energy Agency.
However, growth in crude consumption is expected to slow to 1 million bpd next year as the post-pandemic economic rebound runs out of steam, the IEA said in its monthly oil market report.
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
Under 19 World Cup
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Predictions
Predicted winners for final round of games before play-offs:
- Friday: Delhi v Chennai - Chennai
- Saturday: Rajasthan v Bangalore - Bangalore
- Saturday: Hyderabad v Kolkata - Hyderabad
- Sunday: Delhi v Mumbai - Mumbai
- Sunday - Chennai v Punjab - Chennai
Final top-four (who will make play-offs): Chennai, Hyderabad, Mumbai and Bangalore
