Opec+ stressed it requires 100 per cent conformity from all members as it awaits plans from nations that exceeded agreed production limits to implement compensatory cuts.
At the group’s latest joint ministerial monitoring committee meeting, Opec+ said that compensation for shortfalls in May, June and July "is not only fair, but vital for the ongoing rebalancing efforts and to help deliver long-term oil market stability”.
The alliance came together in April to implement historic production cuts in response to a record drop in demand as movement restrictions to halt the spread of the coronavirus grounded planes and kept people at home. US crude prices also fell below zero for contracts for May delivery over storage constraints, prompting concern over the stability of oil markets. Opec+ drew back 9.7 million barrels per day from May until July, and has since tapered restrictions to 7.7m bpd. Countries that produced above their quotas have been asked to make additional cuts until September.
“It [the JMMC] also requested other underperforming participating countries to submit their plans for implementation of the required compensation for the overproduced volumes to the Opec Secretariat by the end of next week, 28 August 2020,” a communique following the meeting read.
The group achieved 97 per cent compliance last month.
Saudi energy minister Prince Abdulaziz bin Salman, who addressed the JMMC ahead of the meeting, said he expected oil demand to recover to 97 per cent of pre-Covid-19 levels by the end of the year.
The Opec communique said there were "signs of gradually improving market conditions" but added the pace of recovery is slow with growing risks of a prolonged wave of Covid-19.
The group’s joint technical and monitoring committees will next meet on September 16 and 17, respectively.
"Opec+ had a cautionary tone in relation to oil demand, and this has taken some wind out of oil trade," said Naeem Aslam, chief markets analyst at Avatrade.
International benchmark Brent was down 0.90 per cent at $44.96 per barrel at 5.01pm UAE time, while West Texas Intermediate was down 0.89 per cent at $42.55 per barrel.
The US benchmark slipped from a five-month high as markets remained concerned about poor demand recovery for the second half.
The International Energy Agency last week cut demand growth projections for the first time in three months by 140,000 bpd, while Opec pared its forecast by 100,000 bpd. Platts Analytics estimates that oil demand will decline by 8.2m bpd year-on-year in 2020, but will increase again by 6.7m bpd in 2021. A potential second outbreak of the virus is a looming concern for oil markets. More than 22.5 million people have been infected by coronavirus as of Thursday, according to Worldometer, which tracks the pandemic. Covid-19 has claimed 791,200 lives so far, with the US accounting for more than one-fifth of all fatalities.
Despite the scale of the pandemic in the country, the market share of US shale producers is likely to increase as long as WTI remains above $40 per barrel, said Ehsan Khoman, head of Mena research and strategy at MUFG Bank.
"At the peak of Covid-19 disruptions, we estimate that 1.9-2.2m bpd of US production was either shut-in or curtailed, as prices fell below operating costs. These wells have been returning to production since the start of July, with the majority of shuttered production expected to be back online by September,” he said in a note on Thursday.
The oil market looks "increasingly swamped", according to Swissquote Bank commodity analyst Ipek Ozkardeskaya. A lower-than-expected decline in US inventory by 1.9m barrels last week, according to the Energy Information Administration, signalled an elevated level of supply.
If the price of WTI fails to break through a resistance level of $43 a barrel, this could "encourage a downside correction toward the $40 mark", Ms Ozkardeskaya said.
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Mobile phone packages comparison
Abu Dhabi Sustainability Week
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.
The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Best players of the 2018/19 Uefa Champions League
Goalkeeper: Alisson (Liverpool)
Defender: Virgil van Dijk (Liverpool)
Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
More Expo 2020 Dubai pavilions:
About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
Results
2.30pm Maiden (PA) Dh40,000 1,200m
Winner Lamia, Tadhg O’Shea, Ernst Oertel.
3pm Handicap (PA) Dh40,000 1,000m
Winner Jap Al Afreet, Elione Chaves, Irfan Ellahi.
3.30pm Handicap (PA) Dh40,000 1,700m
Winner MH Tawag, Bernardo Pinheiro, Elise Jeanne.
4pm Handicap (TB) Dh40,000 2,000m
Winner Skygazer, Sandro Paiva, Ali Rashid Al Raihe.
4.30pm The Ruler of Sharjah Cup Prestige (PA) Dh250,000 1,700m
Winner AF Kal Noor, Tadhg O’Shea, Ernst Oertel.
5pm Sharjah Marathon (PA) Dh70,000 2,700m
Winner RB Grynade, Bernardo Pinheiro, Eric Lemartinel.
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
More from our neighbourhood series:
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E153hp%20at%206%2C000rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E200Nm%20at%204%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E6-speed%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E6.3L%2F100km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh106%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
