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.”
Towering concerns
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part three: the age of the electric vehicle begins
Read part two: how climate change drove the race for an alternative
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May 9, v Malaysia
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May 15, v Qatar
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Two-step truce
The UN-brokered ceasefire deal for Hodeidah will be implemented in two stages, with the first to be completed before the New Year begins, according to the Arab Coalition supporting the Yemeni government.
By midnight on December 31, the Houthi rebels will have to withdraw from the ports of Hodeidah, Ras Issa and Al Saqef, coalition officials told The National.
The second stage will be the complete withdrawal of all pro-government forces and rebels from Hodeidah city, to be completed by midnight on January 7.
The process is to be overseen by a Redeployment Co-ordination Committee (RCC) comprising UN monitors and representatives of the government and the rebels.
The agreement also calls the deployment of UN-supervised neutral forces in the city and the establishment of humanitarian corridors to ensure distribution of aid across the country.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
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A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
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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
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
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Tomorrow 2021
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World Mental Health Day
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
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Two stars
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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Ad Astra
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Company profile
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Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
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UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
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Tomorrow 2021
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Our commentary on Brexit
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part two: how climate change drove the race for an alternative
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
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Explained
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Results
Final: Iran beat Spain 6-3.
Play-off 3rd: UAE beat Russia 2-1 (in extra time).
Play-off 5th: Japan beat Egypt 7-2.
Play-off 7th: Italy beat Mexico 3-2.
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Zayed Sustainability Prize
The biog
Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.
Favourite book: Anything by Sidney Sheldon.
Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.
Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.
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The biog
Name: Marie Byrne
Nationality: Irish
Favourite film: The Shawshank Redemption
Book: Seagull by Jonathan Livingston
Life lesson: A person is not old until regret takes the place of their dreams
New schools in Dubai
Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
DUNE%3A%20PART%20TWO
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
