Oil prices settled higher on Friday but still recorded a weekly loss due to concerns over crude demand growth next year, particularly in China.
Brent, the benchmark for two thirds of the world’s oil, closed 0.08 per cent higher at $72.94. West Texas Intermediate, the gauge that tracks US crude, added 0.12 per cent to $69.46 a barrel.
For the week, Brent and WTI slid 2 per cent and 1.9 per cent, respectively.
On Thursday, China’s top refiner Sinopec said it expects the country’s crude demand to peak by 2027, as a rapid shift to electric vehicles slows fuel demand.
China's peak oil consumption is projected to reach 800 million tonnes, or 16 million barrels per day, in 2027, according to the Sinopec Economics and Development Research Institute's annual report.
Last year, Sinopec forecast that the country’s peak consumption, also at 800 million tonnes, would occur sometime between 2026 and 2030.
China, the world’s second-largest economy and leading crude importer, has been the engine of global oil demand growth for the past two decades.
However, this year, consumption has declined sharply due to an economic slowdown and as the transition to EVs gathers pace.
In September, EVs and other hybrid vehicles made up more than 45 per cent of the vehicle sales in the country, as per industry data.
Opec recently reduced its global oil demand growth forecast for 2024 for the fifth consecutive month, citing weaker-than-expected demand in the third quarter across many regions.
Oil prices have faced pressure in the second half of this year due to expectations of a well-supplied market in 2025, as well as the potential impact of a second Donald Trump administration on US economic growth. Brent has fallen by more than 20 per cent since reaching a high of $91 a barrel in April.
An “unresolved” crude surplus of more than 900,000 bpd and a high spare capacity of about 6 million bpd in 2025 is “bearish” for oil markets, MUFG said in a research note on Wednesday.
Risks such as trade tariffs introduced by a Trump-led administration or geopolitical events could cause significant price fluctuations beyond the anticipated range of $65–$80 per barrel, the Japanese lender said.
“With such an oversupplied outlook, oil prices should fall to drive a rebalancing. However, as long as supply disruption risks keep prices supported in 2025, the surplus will remain unresolved,” it added.
A stronger dollar also weighed on oil prices on Friday. The US Dollar Index – a measure of its value against a weighted basket of major currencies – rose to a two-year high of 108.26 on Thursday after the Federal Reserve cut interest rates by a quarter of a percentage point. It was last down 0.16 per cent at 108.23.
The Fed lowered its benchmark target range to between 4.25 per cent and 4.50 per cent, a full percentage point lower than when it began cutting rates in September.
The central bank also said that it expects to issue fewer cuts next year due to stubbornly high inflation in the world’s largest economy.
UAE currency: the story behind the money in your pockets
England XI for second Test
Rory Burns, Keaton Jennings, Ben Stokes, Joe Root (c), Jos Buttler, Moeen Ali, Ben Foakes (wk), Sam Curran, Adil Rashid, Jack Leach, James Anderson
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Race results:
1. Thani Al Qemzi (UAE) Team Abu Dhabi: 46.44 min
2. Peter Morin (FRA) CTIC F1 Shenzhen China Team: 0.91sec
3. Sami Selio (FIN) Mad-Croc Baba Racing Team: 31.43sec
UAE currency: the story behind the money in your pockets
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
The five pillars of Islam
More on Quran memorisation:
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
OIL PLEDGE
At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
