Oil prices hit $95 a barrel on Tuesday on supply concerns, ahead of a US Federal Reserve meeting to decide interest rate policy.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.41 per cent higher at $94.82 a barrel at 3.54pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 0.98 per cent at $92.38 a barrel.
On Monday, Brent settled 0.53 per cent higher at $94.43 a barrel, while WTI closed up 0.78 per cent at $91.48 a barrel.
“This oil rally has been relentless and I'm not seeing any signs of exhaustion yet,” said Craig Erlam, senior market analyst at Oanda.
“Saudi Arabia and Russia have been very effective in squeezing a tight market that much further to create a situation in which oil prices are trading well above the zone they've been stuck around for much of the year,” Mr Erlam said.
Brent crude has gained roughly a third in value since falling to a low of $71.84 in June, with the International Energy Agency predicting a tighter-than-anticipated crude market on Opec+ cuts as China, the world’s second-largest economy, introduces reform measures to revive growth.
Opec+ is not aiming for price control through its output cuts, but less volatility in the market, Saudi Arabia’s Energy Minister said on Monday.
The group wants to be “proactive” and “pre-emptive”, Prince Abdulaziz bin Salman was quoted as saying at the World Petroleum Congress in Calgary, Alberta.
The minister also said there was continuing uncertainty regarding Chinese demand, European economic growth, and interest rate actions.
The Fed is set to meet today and tomorrow and is widely expected to maintain its current interest rates despite persistent inflation in the world’s largest economy.
“The US policymakers will certainly opt for a ‘hawkish pause’. The Fed will likely revise its growth expectations significantly higher on the back of resilient consumer spending and solid growth,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“A major part of disinflation since last summer was due to waning post-Covid supply issues that led to higher supply, hence slower price growth. But the improvement in supply could be coming to an end, and oil prices are rising,” she said.
After pausing its tightening cycle in June, the Fed increased its policy rate in July for the 11th time since March 2022, as it aims to bring inflation down to its 2 per cent target range.
Fed chair Jerome Powell previously warned that the central bank may not be done raising interest rates, arguing more proof is needed to show a cooling economy.
Higher interest rates dampen economic growth, lowering crude demand.
US oil output from large shale-producing regions is set to fall for a third month in a row in October, the US Energy Information Administration said in its monthly drilling productivity report on Monday.
US crude production is expected to drop to 9.39 million barrels per day in October from 9.43 million bpd this month, EIA data showed.
Swiss lender UBS expects Brent to trade in the range of $90-$100 a barrel over the coming months, before ending the year at $95 a barrel.
“Financial investors have added exposure to crude oil as a result of the tightening oil market and to benefit from higher roll returns, with the futures curve now more strongly downwards sloped,” UBS said.
“While we expect only modest upside from current prices, we reiterate our recommendations for risk-taking investors to add long exposure via first-generation indexes or longer-dated Brent contracts, or to sell Brent’s downside price risks,” the bank said.
Multitasking pays off for money goals
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
The specs
Engine: Four electric motors, one at each wheel
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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
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
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.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
if you go
The flights
Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.
The trip
Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
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The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
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