Oil prices eased amid signs of an inventory build-up in US, with stockpiles at a key delivery point rising for the first time in two months.
About 2.05 million barrels of inventories were added last week, according to the industry-funded American Petroleum Institute. Oil stocks at Cushing, which is the main delivery point for West Texas Intermediate, the key US benchmark, rose for the first time since May.
Brent, the international benchmark, was down 0.35 per cent at $42.93 per barrel, while WTI slipped 0.44 per cent to trade at $40.44 per barrel at 12.21pm UAE time.
A build-up of inventories at landlocked Cushing is of concern as a near saturation of the storage facilities in April led WTI plunging below zero to trade briefly at -$40 per barrel.
The US is the country most affected by the coronavirus pandemic, with the number of cases moving past 3 million on Wednesday, according to the Johns Hopkins University tracker. The country also has the most number of deaths from the pandemic, with the current toll at 131,480.
The rising number of cases has prompted several US states such as Texas to reimpose lockdown measures, hurting demand for crude as a result of mobility restrictions.
Softening demand and an abundance of supply "could trigger a downside correction" in prices to the region of $38/35 per barrel, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"WTI crude sees fading appetite near the $40 per barrel as prospects of post-Covid recovery are being dashed by the rising number of new cases, as the API data hints at a surprise build in US oil inventories last week," Ms Ozkardeskaya said.
On Wednesday, Emirates NBD, Dubai's largest lender, raised its forecasts for oil prices, anticipating the Brent and WTI to average $42.55 per barrel and $37.7 per barrel, respectively, in 2020. The benchmarks should trend higher in 2021, but the levels will remain "muted", the bank said in a note on Wednesday.
Demand is expected to recover during the rest of the year, registering a growth of more than 13 million barrels per day in the third quarter and gaining an additional 2m bpd in the last quarter of 2020. Demand fell more than 12m bpd in the second quarter.
"As economic recovery takes hold in many markets oil demand will track alongside it, although the gains across geographies and products are unlikely to be evenly distributed," said Edward Bell, senior director, market economics at Emirates NBD.
The demand crunch has been cited as the worst on record by the International Energy Agency. To counter it, the Opec+ alliance led by its biggest producers Saudi Arabia and Russia, is cutting back supply until the end of the month.
The group, which is expected to ease the 9.7m bpd from August 1, will convene its joint ministerial monitoring committee on July 15.
Laggards such as Angola are said to have submitted proposals to make additional cuts to make up for overproduction earlier this year.
Opec+ will gradually increase production from August 1. Production restrictions will remain in place in a tapered manner until April 2022.
"For Opec+ going forward the challenge will be maintaining compliance so that any additional production does not overwhelm the tentative recovery in consumption," Mr Bell said.
QUARTER-FINAL
Wales 20-19 France
Wales: T: Wainwright, Moriarty. Cons: Biggar (2) Pens: Biggar 2
France: T: Vahaamahina, Ollivon, Vakatawa Cons: Ntamack (2)
Other key dates
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Finals draw: December 2
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Finals (including semi-finals and third-placed game): June 5–9, 2019
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Euro 2020 play-off draw: November 22, 2019
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Euro 2020 play-offs: March 26–31, 2020
Everybody%20Loves%20Touda
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nabil%20Ayouch%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nisrin%20Erradi%2C%20Joud%20Chamihy%2C%20Jalila%20Talemsi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
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.
LIGUE 1 FIXTURES
All times UAE ( 4 GMT)
Friday
Nice v Angers (9pm)
Lille v Monaco (10.45pm)
Saturday
Montpellier v Paris Saint-Germain (7pm)
Bordeaux v Guingamp (10pm)
Caen v Amiens (10pm)
Lyon v Dijon (10pm)
Metz v Troyes (10pm)
Sunday
Saint-Etienne v Rennes (5pm)
Strasbourg v Nantes (7pm)
Marseille v Toulouse (11pm)
The figures behind the event
1) More than 300 in-house cleaning crew
2) 165 staff assigned to sanitise public areas throughout the show
3) 1,000 social distancing stickers
4) 809 hand sanitiser dispensers placed throughout the venue
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Where can I submit a sample?
Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.
Collection centres in Abu Dhabi include:
- Abu Dhabi National Exhibition Centre (ADNEC)
- Biogenix Labs in Masdar City
- Al Towayya in Al Ain
- NMC Royal Hospital in Khalifa City
- Bareen International Hospital
- NMC Specialty Hospital, Al Ain
- NMC Royal Medical Centre - Abu Dhabi
- NMC Royal Women’s Hospital.
Pakistan Super League
Previous winners
2016 Islamabad United
2017 Peshawar Zalmi
2018 Islamabad United
2019 Quetta Gladiators
Most runs Kamran Akmal – 1,286
Most wickets Wahab Riaz –65
More from Rashmee Roshan Lall
Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
The fake news generation
288,000 – the number of posts reported as hate speech that were deleted by Facebook globally each month in May and June this year
11% – the number of Americans who said they trusted the news they read on Snapchat as of June 2017, according to Statista. Over a quarter stated that they ‘rarely trusted’ the news they read on social media in general
31% - the number of young people in the US aged between 10 and 18 who said they had shared a news story online in the last six months that they later found out was wrong or inaccurate
63% - percentage of Arab nationals who said they get their news from social media every single day.
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
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
If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com
