An Aramco offshore oil rig. The kingdom began implementing the cut in July. Getty Images
An Aramco offshore oil rig. The kingdom began implementing the cut in July. Getty Images
An Aramco offshore oil rig. The kingdom began implementing the cut in July. Getty Images
An Aramco offshore oil rig. The kingdom began implementing the cut in July. Getty Images

Oil jumps as Saudi Arabia and Russia extend supply cuts


Aarti Nagraj
  • English
  • Arabic

Oil jumped on Tuesday to its highest level since November as top producers Saudi Arabia and Russia announced that they will extend their supply cuts.

Brent, the benchmark for two-thirds of the world’s oil, rose 1.54 per cent to $90.52 a barrel at 5.20pm UAE time to its highest since November last year.

West Texas Intermediate, the gauge that tracks US crude, was trading 1.99 per cent higher at $87.25 per barrel.

The kingdom, Opec’s top oil producer, will extend its voluntary oil cut of one million barrels per day for another three months until the end of December, state-run Saudi Press Agency reported on Tuesday.

The kingdom began implementing the cut in July, and it was later extended to include August and September.

"In effect, the kingdom’s production for the coming months of October, November and December will be approximately 9 million barrels per day," the SPA cited an official source from the Ministry of Energy as saying.

The decision will be reviewed monthly to consider deepening the cut or increasing production, the report added.

The latest cut by the kingdom is in addition to the voluntary cut previously announced in April, which extends until the end of December 2024.

The move seeks to "reinforce the precautionary efforts made by Opec+ countries with the aim of supporting the stability and balance of oil markets", SPA cited the source as saying.

Meanwhile, Russia, the world’s second-largest oil exporter, will also extend its voluntary cut in oil exports by 300,000 bpd until the end of the year, the country's Deputy Prime Minister Alexander Novak said on Tuesday.

The move is aimed at maintaining "stability and balance" in the oil markets, he said.

Russia has already pledged to reduce its production by 500,000 bpd until the end of 2024.

"Opec+ wants to remain in control of the oil market. Hence, the voluntary extra cuts will be reviewed monthly and could be deepened or reduced depending on market conditions," UBS strategist Giovanni Staunovo said in a research note.

"We remain positive on oil."

Saudi Arabia’s crude exports stood at 5.47 million bpd in the first 27 days of August, the lowest level since April 2021, UBS said last week, quoting Petro-Logistics data.

The Swiss lender remains bullish on prospects of oil continuing its march higher, predicting Brent will rise to $95 a barrel by the end of this year.

At its August meeting, producers group Opec+ agreed to keep to its current output policy.

The alliance of 23 oil-producing countries has total production cuts in place of 3.66 million bpd, which includes a two million bpd reduction agreed on last year as well as voluntary cuts of 1.66 million bpd announced in April.

The tightening in the market comes amid concerns about a demand slump due to weak economic growth in China, the world's top oil importer.

China's services activity grew at the slowest pace in eight months in August amid weak demand, a private sector report said on Tuesday.

The Caixin/S&P Global services purchasing managers' index (PMI) slipped to 51.8 last month from 54.1 in July, indicating a softer expansion in the country’s service sector output.

The PMI highlights that the country's economy is "struggling from both weak internal and external demand", said Craig Erlam, senior market analyst at Oanda.

"Measures to support the economy have been limited and targeted so far and there’s little to suggest that approach is going to change in the foreseeable future," he said.

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Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

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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Power: 217hp at 5,750rpm

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Summer special
ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

21 Lessons for the 21st Century

Yuval Noah Harari, Jonathan Cape
 

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

City's slump

L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1

Company%20Profile
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Keep it fun and engaging

Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.

“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.

His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.

He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.

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The specs: 2018 GMC Terrain

Price, base / as tested: Dh94,600 / Dh159,700

Engine: 2.0-litre turbocharged four-cylinder

Power: 252hp @ 5,500rpm

Torque: 353Nm @ 2,500rpm

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Fuel consumption, combined: 7.4L  / 100km

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Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
Rating: 2/5
 
COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
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Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

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Gothia Cup 2025

4,872 matches 

1,942 teams

116 pitches

76 nations

26 UAE teams

15 Lebanese teams

2 Kuwaiti teams

Red Joan

Director: Trevor Nunn

Starring: Judi Dench, Sophie Cookson, Tereza Srbova

Rating: 3/5 stars

Updated: September 05, 2023, 3:35 PM`