Brent, the international benchmark for more than half of the world’s oil, rallied to above $75 per barrel during early trading for the first time since 2018, as the world's largest economies rebound from the pandemic and US-Iran talks stall, delaying a return of Iranian crude to the market.
Brent later pared its gains, declining 0.2 per cent to trade at $75.75 per barrel at 4.57pm UAE time. West Texas Intermediate, which tracks US crude grades, fell 0.38 per cent to reach $73.38 per barrel.
The benchmarks softened their earlier rally amid indications that Opec+, the group led by Saudi Arabia and Russia, plans to add more supply in August.
"Reports that Opec+ is already discussing, ahead of its scheduled meeting, to increase its output from August indicates that the demand-supply gap is already becoming an issue and that the alliance is working on a plan to tap that deficit," said Louise Dickson, oil markets analyst at Rystad Energy.
Global oil demand is expected to return to pre-Covid levels by the end of 2022, with the rebound supported across sectors and products, the International Energy Agency said earlier this month.
Demand for crude is expected to grow this year by 5.4 million barrels per day and a further 3.1 million bpd to average 99.5 million bpd, according to the Paris-based agency.
Oil's immunity to price volatility in either the commodity or currency markets strongly suggests that demand is high and rising, said Jeffrey Halley, senior market analyst, Asia Pacific at Oanda.
"By default, that indicates that the global recovery in the real world remains on track even as other asset classes chase their tails," he added.
The election of Ebrahim Raisi as Iran's new president this week may complicate the ongoing dialogue between Washington and Tehran to restore the nuclear deal.
Iran was Opec’s fourth-largest producer before the resumption of US sanctions by the Trump administration.
"Talks between Iran and world powers have not progressed enough to have the US in actual attendance," said Edward Moya, senior market analyst, the Americas at Oanda.
"The longer talks drag, the further Iranian sanction relief is delayed. Iranian output is expected to increase in the third quarter, but if no breakthroughs are made over the next few weeks, that could be in jeopardy," he added.
Middle East producers are bullish about oil's prospects. Iraq, Opec's second-largest producer expects oil to reach $80 per barrel.
In a report on Monday, Bank of America said tighter supply and demand balances in 2022 could push oil to $100 a barrel, with Brent poised to average $75 next year.
"A combo of factors could push oil to $100 next year ... there is plenty of pent up mobility demand after an 18 month lockdown. Second, mass transit will lag, boosting private car usage for a prolonged period of time. Third, pre-pandemic studies show more remote work could result in more miles driven, as work-from-home turns into work-from-car," the BofA said.
"In short, demand is poised to bounce back and supply may not fully keep up, placing Opec in control of the oil market in 2022."
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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Du Plessis plans his retirement
South Africa captain Faf du Plessis said on Friday the Twenty20 World Cup in Australia in two years' time will be his last.
Du Plessis, 34, who has led his country in two World T20 campaigns, in 2014 and 2016, is keen to play a third but will then step aside.
"The T20 World Cup in 2020 is something I'm really looking forward to. I think right now that will probably be the last tournament for me," he said in Brisbane ahead of a one-off T20 against Australia on Saturday.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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
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The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
KILLING OF QASSEM SULEIMANI
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
UAE currency: the story behind the money in your pockets
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
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500 People from Gaza enter France
115 Special programme for artists
25 Evacuation of injured and sick
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
MATCH INFO
Barcelona v Real Madrid, 11pm UAE
Match is on BeIN Sports
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
