Oil prices slumped on Wednesday as an unexpected increase in US crude inventories stoked concerns about fuel demand.
Brent, the benchmark for two thirds of the world’s oil, was trading 1.04 per cent lower at $85.35 a barrel at 11.09am UAE time.
West Texas Intermediate, the gauge that tracks US crude, was down 0.98 per cent at $80.82 a barrel.
US crude stocks, an indicator of fuel demand, rose by 9.3 million barrels in the week ended on March 22, according to an American Petroleum Institute report cited by Bloomberg.
Following a two-million-barrel expansion in the week that ended on March 15, research company Macquarie was expecting American crude stockpiles to fall by 1.3 million barrels last week.
The American Petroleum Institute also reported a 2.4 million barrel rise in crude stocks at the Cushing, Oklahoma storage centre, despite a reduction in petroleum stockpiles.
Cushing, a key trading and storage centre, has a capacity of 90 million barrels and accounts for 13 per cent of total US oil storage.
If confirmed by data due to be released by the US Energy Information Administration later today, the levels of crude at Cushing would have recorded the largest weekly increase in barrel volume since January 2023.
Oil prices have risen by about 11 per cent since the beginning of the year due to Opec+ supply cuts and geopolitical uncertainty arising from Ukrainian drone attacks on Russian oil infrastructure.
“We expect Brent to grind higher until $90 or until we reach June, supported by geopolitical tension which has shifted back to Russia-Ukraine, as well as a healthy debate on global balances,” said Vikas Dwivedi, Macquarie’s global energy strategist.
“If Brent reaches $90, we believe most of the upside will be factored into oil and the remaining unpriced fundamental factors, mostly supply growth related, will largely be bearish,” he said.
The Opec+ alliance recently extended voluntary cuts of 2.2 million barrels per day into the second quarter to stabilise oil markets.
The group will hold an online meeting on April 3 to review oil market conditions. A full ministerial gathering will be held in Vienna in June.
Analysts say Opec+ may have to bring back some barrels to the market in the second half of the year to meet higher demand.
“It's hard to find a scenario that they see no need for extra barrels because it's so huge the amount of surplus or extra barrels that we see needed from Opec+,” Iman Nasseri, managing director for the Middle East at FGE, told The National.
“[At] the moment we see around a million bpd, maybe up to 1.5 million bpd of extra barrels coming from Opec+ during the second half of this year.”
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Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
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U19 World Cup in South Africa
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
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Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
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