Oil markets need a stronger fix as US looks to broker deal between Moscow and Riyadh

Oil markets would require stronger output curbs than the caps suggested in February should the Opec+ alliance agree new cuts to counter the rout in markets driven by the coronavirus pandemic.

Oil prices recovered by about 30 per cent after US President Donald Trump suggested that Riyadh and Moscow are likely to work together towards cutting output.

Brent, the most widely used benchmark for global crude, jumped almost 14 per cent on Friday to finish the week at $34.11 per barrel.

WTI, which fell below $20 (Dh73.46) per barrel in late March, also rallied strongly, closing about 12 per cent higher at $28.34 per barrel.

Mr Trump met oil industry executives on Friday, pledging to "get our energy industry back".

Saudi Arabia had planned to bring 12.3 million barrels per day of supply to the markets this month following the collapse of talks between producers of the Opec+ alliance. The move came amid a record slump in demand as countries shut borders and airlines grounded fleets as governments enforced social distancing and quarantine measures to contain the outbreak.

"When Opec+ met in February 2020, they argued about cutting 3m bpd and they failed, sparking a disastrous price war. If they agree to cooperate again, it is clear they can no longer talk about 3m bpd," Fereidun Fesharaki, founder and chairman of Facts Global Energy, said in a note.

"The demand destruction has stolen the show from Opec," he added.

The London-based consultancy estimates demand reduction of 17m bpd in April, with 12m bpd anticipated for May.

Meanwhile, commodities pricing firm Argus estimates that production cuts of 10m bpd, spread over the second quarter of 2020, and scaled back cuts of 5m bpd in the third quarter would be needed to prevent global storage capacity becoming overrun with supply.

"Indeed, if global oil demand, as expected, stages a recovery from [the third quarter] onward, then much of the supply overhang built up during first-half [of] 2020 could be drained by the early months of 2021," said David Fyfe, chief economist at Argus.

On Saturday, Saudi Arabia dismissed remarks attributed to Russian President Vladimir Putin that the kingdom was responsible for the collapse of the Opec+ deal, and said the alliance had tried to agree on further oil production cuts but Moscow refused.

Foreign minister Prince Faisal bin Farhan Al Saud said the suggestion that the kingdom had walked away from the three-year pact to shore up prices was "fully devoid of truth", the official Saudi Press Agency reported.

Riyadh said Moscow had refused to deepen cuts by 1.5m bpd in addition to a pact to draw back 1.7m bpd of inventory during the first quarter.

Prince Faisal said there was consensus on the need for additional restrictions within the alliance, which was forged in Algiers in 2016, with the exception of Russia.

Saudi Arabia also denied any suggestion that the subsequent fall in oil prices had been engineered to hurt the US energy sector, and said shale "is known as an important part of energy sources".

US shale producers, who have a relatively higher break-even cost, have suffered as oil prices fell 70 per cent from their most recent peak in January.

A significant US shale producer, Whiting Petroleum, filed for bankruptcy protection on Wednesday.

Mr Putin said on Friday that he was ready to co-operate with the US and Saudi Arabia to bring back stability to markets that have witnessed both a significant supply increase and a steep decline in demand.

Global oil demand is at its weakest amid a record surge in supply.

"We are ready for co-operation with the United States of America on this issue," Mr Putin said.

"I believe that it is necessary to combine efforts in order to balance the market and reduce production," he said.

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The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

The view from The National

The fate of Libya should be in Libyan hands

Libyan migrants must not be left to die at sea

ISIS cannot be allowed to regroup in Libya

Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes

BRAZIL SQUAD

Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

Global state-owned investor ranking by size

1.	United States
2.	China
3.	UAE
4.	Japan
5	Norway
6.	Canada
7.	Singapore
8.	Australia
9.	Saudi Arabia
10.	South Korea

UAE%20athletes%20heading%20to%20Paris%202024

%3Cp%3E%3Cstrong%3EEquestrian%3C%2Fstrong%3E%3Cbr%3EAbdullah%20Humaid%20Al%20Muhairi%2C%20Abdullah%20Al%20Marri%2C%20Omar%20Al%20Marzooqi%2C%20Salem%20Al%20Suwaidi%2C%20and%20Ali%20Al%20Karbi%20(four%20to%20be%20selected).%3Cbr%3E%3Cstrong%3EJudo%3C%2Fstrong%3E%3Cbr%3EMen%3A%20Narmandakh%20Bayanmunkh%20(66kg)%2C%20Nugzari%20Tatalashvili%20(81kg)%2C%20Aram%20Grigorian%20(90kg)%2C%20Dzhafar%20Kostoev%20(100kg)%2C%20Magomedomar%20Magomedomarov%20(%2B100kg)%3B%20women's%20Khorloodoi%20Bishrelt%20(52kg).%3Cbr%3E%3Cbr%3E%3Cstrong%3ECycling%3C%2Fstrong%3E%3Cbr%3ESafia%20Al%20Sayegh%20(women's%20road%20race).%3Cbr%3E%3Cbr%3E%3Cstrong%3ESwimming%3C%2Fstrong%3E%3Cbr%3EMen%3A%20Yousef%20Rashid%20Al%20Matroushi%20(100m%20freestyle)%3B%20women%3A%20Maha%20Abdullah%20Al%20Shehi%20(200m%20freestyle).%3Cbr%3E%3Cbr%3E%3Cstrong%3EAthletics%3C%2Fstrong%3E%3Cbr%3EMaryam%20Mohammed%20Al%20Farsi%20(women's%20100%20metres).%3C%2Fp%3E%0A

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.

- Abdullah Ishnaneh, Partner, BSA Law

Wenger's Arsenal reign in numbers

1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.

Profile of Udrive

Date started: March 2016

Founder: Hasib Khan

Based: Dubai

Employees: 40

Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.