Oil prices rose sharply on Friday, but still posted their seventh consecutive weekly decline amid concerns about a global supply glut and weak demand from the world's top crude importer China.
Prices rebounded after Saudi Arabia and Russia, the world's two biggest oil-exporting countries, on Thursday called on all members of the Opec+ group to join an output cut agreement to support the global economy.
Brent, the benchmark for two thirds of the world’s oil, rose 2.42 per cent to settle at $75.84 a barrel. West Texas Intermediate, the gauge that tracks US crude, added 2.73 per cent to close at $71.23 a barrel.
Oil prices tumbled on Thursday, with Brent closing 3.8 per cent lower to settle at $74.30 and WTI down 4.1 per cent to close at $69.38. During the session, they hit $74.05 and $69.34, respectively – their lowest marks since late June.
Despite the rebound on Friday, analysts said crude prices are expected to sustain their downward trend. Markets are also keeping an eye on a key US jobs report, expected on Friday.
“There's still plenty of momentum with the sell-off so it could get worse before it gets better,” Craig Erlam, a senior market analyst at Oanda, wrote in a note.
Last week, Opec+ members extended their voluntary oil output reductions until the end of the first quarter of 2024 amid concerns over future fuel demand.
Saudi Arabia, the world's largest oil exporter, will keep its voluntary output cut of one million barrels per day until the end of March. The UAE and Russia will also deepen their crude production cuts.
In total, the group revealed supply reductions of almost 2.2 million bpd for the first quarter.
Following Opec+'s move, analysts had suggested the market was “disappointed” by the decision, as it fell short of expectations – and this sentiment would continue unless a clear strategy was pitched, they said.
“The oil markets have reacted poorly to the new production curbs announced on November 30 by Opec+, with global benchmark Brent losing almost 10 per cent of its value over the past week alone,” said analysts at BMI, a unit of Fitch Solutions.
“A failure to reach consensus on new production quotas for 2024, poor communication in the wake of the meeting and concerns over compliance with the deal in the first quarter have all weighed heavily to the downside.”
Oil prices, which briefly touched $98 in September, have since fallen by around 16 per cent, despite predictions of a tight crude market in the fourth quarter by the International Energy Agency and Opec.
Crude jumped at the start of the Israel-Gaza war in October on concerns that it would escalate into a broader conflict in the region, which is responsible for about a third of the world's oil production.
However, supply concerns have eased, in part due to higher oil production in Iran and the easing of sanctions on Venezuela.
Prices are also being weighed down by worries of slow demand growth in the US and China, the world's biggest consumers of crude.
Demand in China, in particular, is expected to slow down next year, as the robust post-pandemic activity that helped prop up its economy has begun to fade.
The world's biggest importer of crude is projected to consume an additional 500,000 barrels a day in 2024, according to estimates from Bloomberg.
Moody's Investors Service on Tuesday also warned of a downgrade to China's credit rating, citing that bailout costs for state firms and the property sector crisis are dragging the economy. It lowered its outlook to negative from stable.
China's November oil imports declined 9 per cent on an annual basis on weak orders and tepid economic indicators, customs data showed.
Crude output in the US, meanwhile, remained near record highs of more than 13 million bpd, the Energy Information Administration said on Wednesday.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
World Series
Game 1: Red Sox 8, Dodgers 4
Game 2: Red Sox 4, Dodgers 2
Game 3: Saturday (UAE)
* if needed
Game 4: Sunday
Game 5: Monday
Game 6: Wednesday
Game 7: Thursday
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
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
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Company%20profile
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EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Kill%20
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In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MATCH INFO
Who: France v Italy
When: Friday, 11pm (UAE)
TV: BeIN Sports
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
SPECS
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
More on animal trafficking
The five pillars of Islam
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
More on Yemen's civil war
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Black Panther
Dir: Ryan Coogler
Starring: Chadwick Boseman, Michael B Jordan, Lupita Nyong'o
Five stars
