Oil prices plunged nearly 4 per cent on Monday as Saudi Arabia cut the official selling prices for its oil by the most in more than two years ahead of a production boost scheduled for next month.
Saudi Aramco, the world’s leading oil exporting company, on Sunday slashed crude oil prices for Asian buyers for May, after the Opec+ alliance of oil-producing countries on Thursday announced larger-than-expected output increase in a surprise move.
The group said it will add 411,000 barrels a day to the market next month, rather than 137,000 bpd as earlier announced.
Brent, the benchmark for two thirds of the world’s oil, was down 3.78 per cent at $63.10 a barrel at 12pm UAE time on Monday. West Texas Intermediate, the gauge that tracks US crude, was 3.95 per cent lower at $59.54 a barrel.
“Opec+ continues to highlight flexibility and the actual supply increase could eventually be much less than outlined. Demand conditions will be essential, and actual adherence to the compensation plans,” Monica Malik, chief economist, Abu Dhabi Commercial Bank, told The National.
“The GCC remains less impacted than other EM [emerging market] economies, providing a comparative advantage.”
The intensifying trade war and concerns it could lead to a global recession and dent crude demand, also dragged oil prices lower. Crude plunged to its lowest levels in more than three years on Friday, as China hit back against US President Donald Trump's tariffs with its own additional levies on US goods.
“The barrel of US crude lost more than 6 per cent last Friday and tipped a toe below the $60 per barrel level this morning as Saudi Arabia cut its oil price to Asia to a four-month low on rising recession odds,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The outlook remains “comfortably negative with the possibility of a further fall toward the $50 per barrel level”, she added. “Price recoveries could be interesting top selling opportunities”
The drop of 17 per cent in crude prices over the last five sessions, is "enormous even for a volatile asset like crude oil", Vijay Valecha, chief investment officer at Dubai-based Century Financial, said.
“Oil prices are currently suffering from the double whammy of possible surplus gluts, based on the latest Opec decision and the expectations of a significant drop in demand due to the possibility of a global recession,” he told The National.
“With the ongoing market sell-off happening at a frenzied pace, the probability of a global recession rises with each passing day.”
Swiss lender UBS expects volatility in crude markets to remain stay high in the short term.
“With financial markets in panic mode, oil prices are likely to stay volatile in the near term. But we retain our constructive outlook, as the oil market is undersupplied and demand growth remains healthy,” Giovanni Staunovo, strategist at UBS, said in a recent research note.
On Friday, US Federal Reserve chairman Jerome Powell said that Mr Trump’s larger-than-expected tariffs could drive up inflation and weaken economic growth, but maintained that the central bank is not rushing to cut interest rates.
“Oil and gas imports to the US have been exempted from the new round of tariffs. That said, global energy consumption is likely to take a hit if the global economy slips into a recession,” BMI, a Fitch Solutions company, said in a research note.
“For oil, this would be exacerbated by supply additions from Opec+ and non-Opec producers that are forecast for 2025.”
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ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Zayed Sustainability Prize
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
UAE currency: the story behind the money in your pockets
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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