Oil prices closed in on the $90 a barrel mark on Wednesday after the Opec+ alliance decided to stick with crude supply cuts for the first half of the year.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.73 per cent higher at $89.57 a barrel at 4.50pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 0.66 per cent at $85.71 a barrel.
The producers group made no policy changes following an online meeting on Wednesday, implying that Opec+ voluntary output cuts of 2.2 million barrels per day would remain in place until the end of June.
Opec+ reiterated the need for countries that are producing above their quotas to scale back and compensate for the excess output.
“Participating countries with outstanding overproduced volumes for the months of January, February and March 2024 will submit their detailed compensation plans to the Opec Secretariat by 30 April 2024,” the group said.
It also welcomed Russia’s decision to focus on reducing crude production rather than exports in the second quarter to evenly share supply cuts with other member countries.
The group said it would continue to “closely assess” market conditions and that member countries were ready to take additional measures if required.
Oil prices have gained more than 16 per cent since the beginning of the year, supported by tighter supplies, a resilient global economy and continued geopolitical uncertainty.
Brent hit a five-month high on Tuesday during trading, peaking at $89.08 per barrel due to Ukrainian attacks on Russia’s Taneco refinery as well as a potential escalation in the Mena region, with Iran vowing revenge for an Israeli airstrike at an Iranian embassy compound in Damascus, Tellurian said in a note.
"We believe the latest price increase has been driven by renewed geopolitical tensions in the Middle East but fundamentals like better-than-expected demand and lower production have also helped," said Giovanni Staunovo, strategist at UBS.
"Our base case remains that in June, Opec+ countries will unwind some of their production cuts. But as we have stated in the past, the group will not remove the production cuts if it doesn’t believe the oil market can absorb additional barrels."
Any loosening of production cuts will be gradual and a continuing drop in oil inventories will be required for this to happen, he added.
“In terms of the impact of Opec’s production cuts on oil market balances, the effect has been to flip the market from a surplus in the [fourth quarter] to a deficit in [the first quarter],” the National Bank of Kuwait said.
In the first three months of 2024, the combined output of Opec’s 12 core members averaged 26.47 million bpd, which was considerably lower than the 26.92 million bpd estimated by the International Energy Agency as necessary to stabilise the market, the bank noted.
Some analysts say Opec+ may have to bring back some barrels to the market in the second half of the year to meet higher demand. The group will hold a full ministerial gathering in Vienna in June.
“A growing risk to oil prices is that at some point, Opec+ may conclude that further upward moves in prices may hamper the long-term residue demand for its own barrels and thus may opt to reclaim some lost market share,” MUFG said last month.
“This would require an increase in supply, and in turn, a weakening of the oil market. At the end of a period of Opec+ market share loss often lies an oil price decline,” the Japanese lender said.
In its latest oil market report, Opec stuck to its crude demand growth forecast for the current year and raised its estimate for global economic growth by 0.1 per cent, citing “robust” expansion in the second half of 2024.
Meanwhile, the IEA raised its oil demand growth forecast for 2024 by 100,000 bpd last month, citing higher-than-expected crude consumption in the first quarter.
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
'The Ice Road'
Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne
2/5
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
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The specs
The specs: 2019 Audi Q8
Price, base: Dh315,000
Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km
The specs: 2019 Cadillac XT4
Price, base: Dh145,000
Engine: 2.0-litre turbocharged in-line four-cylinder engine
Transmission: Nine-speed automatic
Power: 237hp @ 5,000rpm
Torque: 350Nm @ 1,500rpm
Fuel economy, combined: 8.7L / 100km
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
UAE currency: the story behind the money in your pockets
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
The five pillars of Islam
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
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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
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Los Angeles, from Dh4,975 return, including taxes. The flight time is 16 hours. Alaska Airlines, United Airlines, Delta Air Lines, Aeromexico and Southwest all fly direct from Los Angeles to San Jose del Cabo from Dh1,243 return, including taxes. The flight time is two-and-a-half hours.
The trip
Lindblad Expeditions National Geographic’s eight-day Whales Wilderness itinerary costs from US$6,190 (Dh22,736) per person, twin share, including meals, accommodation and excursions, with departures in March and April 2018.
