Oil prices rose on Friday and posted the biggest weekly gain since October due to fears about Red Sea supply disruptions, although Angola's departure from Opec is likely to have a limited impact on the market, analysts said.
Brent, the benchmark for two thirds of the world's oil, edged down 0.40 per cent to settle at $79.07 a barrel. West Texas Intermediate, the gauge that tracks US crude, closed down 0.45 per cent at $73.56 a barrel.
Oil prices tumbled on Thursday, with Brent falling by as much as 2.4 per cent before cutting some losses and settling 0.39 per cent lower at $79.39 a barrel. WTI closed down 0.44 per cent at $73.89 a barrel.
Angola, Africa’s second-largest oil producer, announced on Thursday that it was leaving the oil producer’s alliance, following a dispute over production quotas.
“We feel that at the moment Angola does not gain anything by remaining in the organisation and, in defence of its interests, it has decided to leave,” Diamantino Azevedo, Angola's Minister of Mineral Resources, Petroleum and Gas, was quoted as saying by local media.
Angola, which joined Opec in 2007, produces about 1.1 million barrels of oil per day, compared with Opec's production of about 28 million bpd.
The country’s exit will reduce Opec's membership to 12 countries and its crude oil production to about 27 million bpd, or some 27 per cent of the global oil market.
Last month, Angola was given a target of sticking to 1.11 million bpd of output in 2024.
“Angola’s departure from Opec is the result of a long disagreement over the quantum of crude oil that it can produce,” said Ehsan Khoman, head of commodities, ESG and emerging markets research at MUFG.
“The country is mired with wide fiscal and external imbalances and underline the government’s resolute vigour in maximising output.
“The challenge remains on reversing the years of underinvestment that have resulted in around 40 per cent production declines in 2008.”
Angola’s departure may result in greater flexibility among the remaining Opec members regarding their production levels next year, analysts said.
However, it may also raise speculation about the possibility of additional countries leaving the group.
The African country’s decision will likely have “limited” impact on oil markets, said Edward Bell, head of market economics at Emirates NBD.
“While the major producers in Opec+ have all committed to deepening or extending their production cuts into the first quarter, compliance among those members will be key to have an effect on oil market balances.”
Brent is down nearly 4 per cent since Opec+ members announced voluntary output cuts of 2.2 million bpd on November 30.
Saudi Arabia, the group’s largest producer, extended its voluntary cut of 1 million bpd until the end of March next year.
“If there is weak compliance and oil prices are at risk of dropping further, then some sort of enforcement mechanism may need to be introduced and risk the integrity of the producers’ alliance,” Mr Bell said.
Mr Bell’s view was echoed by UBS strategist Giovanni Staunovo.
“From an oil market supply perspective, the impact [of Angola's exit] is minimal as oil production in Angola was on a downwards trend,” Mr Staunovo said.
Prices fell on Thursday on concerns regarding Opec+ unity, but there is no indication that more heavyweights within the alliance intend to follow Angola’s path, he said.
Meanwhile, Germany's Hapag-Lloyd and Hong Kong's OOCL have joined a growing list of major shipping companies that have said they would avoid the Red Sea, in response to attacks on shipping by Yemeni Houthi rebels.
Hapag-Lloyd will reroute 25 ships by the end of the year from the key waterway as freight rates and shipping stocks have increased because of the disruption, Reuters reported earlier on Friday.
About 12 per cent of the seaborne oil trade and 8 per cent of liquefied natural gas pass through Bab Al Mandeb, the strait at the southern edge of the Red Sea.
Bombshell
Director: Jay Roach
Stars: Nicole Kidman, Charlize Theron, Margot Robbie
Four out of five stars
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
WIDE%20VIEW
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If you go...
Flying
There is no simple way to get to Punta Arenas from the UAE, with flights from Dubai and Abu Dhabi requiring at least two connections to reach this part of Patagonia. Flights start from about Dh6,250.
Touring
Chile Nativo offers the amended Los Dientes trek with expert guides and porters who are met in Puerto Williams on Isla Navarino. The trip starts and ends in Punta Arenas and lasts for six days in total. Prices start from Dh8,795.
Company Profile
Company name: OneOrder
Started: October 2021
Founders: Tamer Amer and Karim Maurice
Based: Cairo, Egypt
Industry: technology, logistics
Investors: A15 and self-funded
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
RESULTS
6pm: Mazrat Al Ruwayah – Group 2 (PA) $40,000 (Dirt) 1,600m
Winner: AF Alajaj, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
6.35pm: Race of Future – Handicap (TB) $80,000 (Turf) 2,410m
Winner: Global Storm, William Buick, Charlie Appleby
7.10pm: UAE 2000 Guineas – Group 3 (TB) $150,000 (D) 1,600m
Winner: Azure Coast, Antonio Fresu, Pavel Vashchenko
7.45pm: Business Bay Challenge – Listed (TB) $100,000 (T) 1,400m
Winner: Storm Damage, Patrick Cosgrave, Saeed bin Suroor
20.20pm: Curlin Stakes – Listed (TB) $100,000 (D) 2,000m
Winner: Appreciated, Fernando Jara, Doug O’Neill
8.55pm: Singspiel Stakes – Group 2 (TB) $180,000 (T) 1,800m
Winner: Lord Glitters, Daniel Tudhope, David O'Meara
9.30pm: Al Shindagha Sprint – Group 3 (TB) $150,000 (D) 1,200m
Winner: Meraas, Antonio Fresu, Musabah Al Muhairi
Look north
BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Racecard
6pm: The Pointe - Conditions (TB) Dh82,500 (Turf) 1,400m
6.35pm: Palm West Beach - Maiden (TB) Dh82,500 (T) 1,800m
7.10pm: The View at the Palm - Handicap (TB) Dh85,000 (Dirt) 1,400m
7.45pm: Nakeel Graduate Stakes - Conditions (TB) Dh100,000 (T) 1,600m
8.20pm: Club Vista Mare - Handicap (TB) Dh95,000 (D) 1,900m
8.55pm: The Palm Fountain - Handicap (TB) Dh95,000 (D) 1,200m
9.30pm: The Palm Tower - Handicap (TB) Dh87,500 (T) 1,600m
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Results
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m; Winner: Major Cinnamon, Fernando Jara, Mujeeb Rahman
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m; Winner: Al Mureib, Fernando Jara, Ahmad bin Harmash
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m; Winner: Remorse, Tadhg O’Shea, Satish Seemar
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m; Winner: Meshakel, Xavier Ziani, Salem bin Ghadayer
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m; Winner: Desert Peace, William Buick, Charlie Appleby
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m; Winner: Sharamm, Ryan Curatlo, Satish Seemar
