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.
Match info
What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
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Transmission: Eight-speed dual-clutch auto
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UAE currency: the story behind the money in your pockets
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Barings Bank
Barings, one of Britain’s oldest investment banks, was
founded in 1762 and operated for 233 years before it went bust after a trading
scandal.
Barings Bank collapsed in February 1995 following colossal
losses caused by rogue trader Nick Lesson.
Leeson gambled more than $1 billion in speculative trades,
wiping out the venerable merchant bank’s cash reserves.
UFC Fight Night 2
1am – Early prelims
2am – Prelims
4am-7am – Main card
7:30am-9am – press cons
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The National photo project
Chris Whiteoak, a photographer at The National, spent months taking some of Jacqui Allan's props around the UAE, positioning them perfectly in front of some of the country's most recognisable landmarks. He placed a pirate on Kite Beach, in front of the Burj Al Arab, the Cheshire Cat from Alice in Wonderland at the Burj Khalifa, and brought one of Allan's snails (Freddie, which represents her grandfather) to the Dubai Frame. In Abu Dhabi, a dinosaur went to Al Ain's Jebel Hafeet. And a flamingo was taken all the way to the Hatta Mountains. This special project suitably brings to life the quirky nature of Allan's prop shop (and Allan herself!).
Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
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The biog
Name: Abeer Al Bah
Born: 1972
Husband: Emirati lawyer Salem Bin Sahoo, since 1992
Children: Soud, born 1993, lawyer; Obaid, born 1994, deceased; four other boys and one girl, three months old
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