There will probably be an oversupply of oil in the market next year amid an increase in production from Opec+ and lower demand, traders have said.
“We anticipate potential oversupply next year of up to 2 million barrels per day, which is quite substantial,” Marco Dunand, chief executive and co-founder of Mercuria, a Swiss-based commodity trading company, said at the Adipec conference in Abu Dhabi on Wednesday.
“Glut is forming slowly and probably is going to hit the market in the next few months.”
The comments come after Opec+ last week agreed to increase production by 137,000 barrels per day for December amid healthy market fundamentals.
The supergroup of oil producers, however, paused a production increase for the first quarter of next year due to seasonality.
The International Energy Agency (IEA) last month also raised its global oil supply projections for this year and next amid Opec+ production increase.
The Paris-based agency expects world oil supply to rise by 3 million bpd to 106.1 million this year and 2.4 million next year, its monthly oil market report said in October.
Oil markets have remained volatile this year due to geopolitical tension, US President Donald Trump's tariffs and Russian sanctions on oil by the US. The US Federal Reserve decision to lower interest rates also affected oil markets.
Sanctions on Russian oil by the US and the EU is preventing a glut forming in global markets, Torbjorn Tornqvist, chief executive of commodities trader Gunvor Group, said at Adipec on Wednesday.
“Through the sanctions that we've had around the world, an enormous amount of oil is stuck and dislocated,” Mr Tornqvist said. “This is unprecedented, the size of that. Therefore, obviously, if all sanctions would disappear, this market would clearly be quite oversupplied.”
Last month, the US announced sweeping sanctions on two Russian oil companies including Lukoil and Rosneft, with prices climbing as much as 5 per cent after the decision.
The market has become “much more stable”, and “volatility is very low”, following disruptions in the past one year amid geopolitical tension and economic uncertainties, Mr Tornqvist said.
“Volatility is very low as we speak and can flame up because of an unexpected event. Good example is US sanctions on two major oil producers that came out of blue, and prices reacted to that,” he said, adding that the demand for oil will continue to remain strong as consumption increases.
“We are not going to see any reduction in consumption in the next decade. We are going to need oil to more or less what we need today, 10 years from now. Oil and gas [sector] is still going to grow,” he said.
The world will require more oil amid data centres boom, Suhail Al Mazrouei, Minister of Energy and Infrastructure, said this week. “The world would require more resources, more oil, more gas and definitely more renewable energy. With AI and data centres, we need more oil.”
Global state-owned investor ranking by size
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United States
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China
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UAE
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4.
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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if you go
The flights
Emirates offer flights to Buenos Aires from Dubai, via Rio De Janeiro from around Dh6,300. emirates.com
Seeing the games
Tangol sell experiences across South America and generally have good access to tickets for most of the big teams in Buenos Aires: Boca Juniors, River Plate, and Independiente. Prices from Dh550 and include pick up and drop off from your hotel in the city. tangol.com
Staying there
Tangol will pick up tourists from any hotel in Buenos Aires, but after the intensity of the game, the Faena makes for tranquil, upmarket accommodation. Doubles from Dh1,110. faena.com
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
What's in the deal?
Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024
India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Indian employees in the UK will receive three years exemption from social security payments
India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery
Types of policy
Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.
Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.
Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.
Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
