Opec+ is set to convene on Thursday for an extraordinary ministerial meeting that will be a bellwether of the recovery in oil markets.
Opec+ will hold an extraordinary ministerial meeting on Thursday as oil prices continue to recover nearly a year after they hit a historic low.
Prices now are 25 per cent higher from a year ago, with Brent and West Texas Intermediate receiving a significant boost from persistent commodity supercycles.
The alliance, led by Saudi Arabia and Russia, successfully managed to limit production and support a broader recovery last year after prices fell sharply when Covid-19 began to spread around the world.
Opec+ members set aside their differences and reversed a significant supply increase by agreeing to cut 9.7 million barrels per day from markets between May and July.
The pact was upheld and restrictions loosened to accommodate incremental increases due to improving demand as countries eased their lockdowns.
The group is currently cutting 7.2 million bpd, equal to about 7 per cent of global supply.
Opec+ deferred a planned output increase of 2 million bpd in January as it responded to renewed lockdowns during the December holiday season.
Saudi Arabia, the biggest exporter, voluntarily cut production by 1 million bpd until March while Russia and Kazakhstan were allowed to make small output increases.
Now with oil above $60 a barrel after gaining more than 17 per cent over the past month, the group may have to consider raising supply to offset higher prices that could encourage higher-cost producers to resume operations.
“I expect a slight reduction in production cut targets to assuage the Russians and Iraqis, but Opec+ is likely to remain content to keep Brent prices around $65 a barrel,” said Jeffrey Halley, senior market analyst for the Asia-Pacific region at Oanda.
Brent, which accounts for two thirds of the world’s traded oil, was trading at $63.75 a barrel at 9.00pm in the UAE yesterday while US crude benchmark WTI was at $60.78 a barrel.
Abu Dhabi Commercial Bank's chief economist Monica Malik said Opec+ could raise production by 500,000 barrels to 750,00 barrels a day, compared with official targets set for February and March.
“The reduction in inventories and expected demand pickup due to the vaccination programmes provide fundamental space to increase output," she said.
"A further strengthening in the oil price could dampen the global recovery trajectory.”
More than 241 million doses have been administered in 103 countries, at a rate of about 6.73 million shots a day, according to Bloomberg's Covid-19 vaccine tracker.
However, tomorrow's extraordinary ministerial meeting, which Iran will attend as observer, is expected to have some disagreements.
“We anticipate there will be division between producers favouring increasing output and those wanting to see the market continue to run hot, particularly Saudi Arabia,” said Shady Elborno, head of macro strategy at Emirates NBD.
Analysts are also betting on crude’s long-term bullishness, with prices projected to hit $75 a barrel by the third quarter, according to Goldman Sachs. Others expect oil to rise as high as $100 a barrel.
However, Edward Bell, a senior economist at Emirates NBD, was more cautious about the prospects of Brent rising by triple-digit figures due to the availability of adequate spare capacity.
“Taken all together, Opec, Russia and the US have more than 12 million bpd of capacity that could return should either policy or prices prove accommodative,” he said yesterday.
Strong growth in demand from China, the world’s second-largest economy, and vaccination campaigns in developed countries have supported prices.
Signs of a recovery in demand centres such as India have also lifted sentiment. The South Asian economy reversed a steep contraction to grow by 0.4 per cent in the third quarter.
On Monday, Baker Hughes chief executive Lorenzo Simonelli said that the energy industry had begun to recover. He was speaking at CeraWeek, an important event for the global energy industry that is taking place this week.
“As you look at supply and demand equation, we are seeing that there will be a recovery in 2021, with an even more balanced market going into 2022,” he said.
Mr Simonelli said hydrocarbons were still expected to play a crucial role in meeting the world's energy needs, especially in the short run.
“There are still over 1 billion without access to ongoing energy, and energy will be vital in the future. So, we have to address energy transition but also affordable energy being available for people.”
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Rajasthan Royals 153-5 (17.5 ov)
Delhi Daredevils 60-4 (6 ov)
Rajasthan won by 10 runs (D/L method)
Spider-Man%202
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Insomniac%20Games%0D%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20%20Sony%20Interactive%20Entertainment%0D%3Cbr%3E%3Cstrong%3EConsole%3A%20%3C%2Fstrong%3EPlayStation%205%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
MORE ON IRAN'S PROXY WARS
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
TERMINAL HIGH ALTITUDE AREA DEFENCE (THAAD)
What is THAAD?
It is considered to be the US's most superior missile defence system.
Production:
It was created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out ballistic missiles as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
To protect high-value strategic sites, such as airfields or population centres.
Range:
THAAD can target projectiles inside and outside the Earth's atmosphere, at an altitude of 150 kilometres above the Earth's surface.
Creators:
Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.
UAE and THAAD:
In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then stationed them in 2016, becoming the first Gulf country to do so.
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
THE SPECS
Engine: 1.5-litre, four-cylinder turbo
Transmission: seven-speed dual clutch automatic
Power: 169bhp
Torque: 250Nm
Price: Dh54,500
On sale: now
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EHakbah%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ENaif%20AbuSaida%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ESaudi%20Arabia%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E22%20%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24200%2C000%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3Epre-Series%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EGlobal%20Ventures%20and%20Aditum%20Investment%20Management%0D%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
The specs
Engine: 3.5-litre V6
Power: 272hp at 6,400rpm
Torque: 331Nm from 5,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.7L/100km
On sale: now
Price: Dh149,000
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
UAE%20athletes%20heading%20to%20Paris%202024
%3Cp%3E%3Cstrong%3EEquestrian%3Cbr%3E%3C%2Fstrong%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).%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%3Cbr%3EJudo%3Cbr%3E%3C%2Fstrong%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).%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%3Cbr%3ECycling%3Cbr%3E%3C%2Fstrong%3ESafia%20Al%20Sayegh%20(women's%20road%20race).%3Cstrong%3E%3Cbr%3E%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESwimming%3Cbr%3E%3C%2Fstrong%3EMen%3A%20Yousef%20Rashid%20Al%20Matroushi%20(100m%20freestyle)%3B%20women%3A%20Maha%20Abdullah%20Al%20Shehi%20(200m%20freestyle).%3Cstrong%3E%3Cbr%3E%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAthletics%3Cbr%3E%3C%2Fstrong%3EMaryam%20Mohammed%20Al%20Farsi%20(women's%20100%20metres).%3C%2Fp%3E%0A
Stats at a glance:
Cost: 1.05 billion pounds (Dh 4.8 billion)
Number in service: 6
Complement 191 (space for up to 285)
Top speed: over 32 knots
Range: Over 7,000 nautical miles
Length 152.4 m
Displacement: 8,700 tonnes
Beam: 21.2 m
Draught: 7.4 m
KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
UAE gold medallists:
Omar Al Suweidi (46kg), Khaled Al Shehhi (50kg), Khalifa Humaid Al Kaabi (60kg), Omar Al Fadhli (62kg), Mohammed Ali Al Suweidi (66kg), Omar Ahmed Al Hosani (73), all in the U18’s, and Khalid Eskandar Al Blooshi (56kg) in the U21s.
More from Neighbourhood Watch
More from Neighbourhood Watch:
Killing of Qassem Suleimani
More coverage from the Future Forum
KILLING OF QASSEM SULEIMANI
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The years Ramadan fell in May
Sting & Shaggy
44/876
(Interscope)
Read more about the coronavirus
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.
RACE CARD
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
UAE currency: the story behind the money in your pockets
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READ MORE ABOUT CORONAVIRUS
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
England squad
Goalkeepers: Jordan Pickford, Nick Pope, Aaron Ramsdale
Defenders: Trent Alexander-Arnold, Conor Coady, Marc Guehi, Reece James, Harry Maguire, Tyrone Mings, Luke Shaw, John Stones, Ben White
Midfielders: Jude Bellingham, Conor Gallagher, Mason Mount, Jordan Henderson, Declan Rice, James Ward-Prowse
Forwards: Tammy Abraham, Phil Foden, Jack Grealish, Harry Kane, Bukayo Saka, Emile Smith Rowe, Raheem Sterling
The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
Non-oil%20trade
%3Cp%3ENon-oil%20trade%20between%20the%20UAE%20and%20Japan%20grew%20by%2034%20per%20cent%20over%20the%20past%20two%20years%2C%20according%20to%20data%20from%20the%20Federal%20Competitiveness%20and%20Statistics%20Centre.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIn%2010%20years%2C%20it%20has%20reached%20a%20total%20of%20Dh524.4%20billion.%C2%A0%3C%2Fp%3E%0A%3Cp%3ECars%20topped%20the%20list%20of%20the%20top%20five%20commodities%20re-exported%20to%20Japan%20in%202022%2C%20with%20a%20value%20of%20Dh1.3%20billion.%C2%A0%3C%2Fp%3E%0A%3Cp%3EJewellery%20and%20ornaments%20amounted%20to%20Dh150%20million%20while%20precious%20metal%20scraps%20amounted%20to%20Dh105%20million.%C2%A0%3C%2Fp%3E%0A%3Cp%3ERaw%20aluminium%20was%20ranked%20first%20among%20the%20top%20five%20commodities%20exported%20to%20Japan.%C2%A0%3C%2Fp%3E%0A%3Cp%3ETop%20of%20the%20list%20of%20commodities%20imported%20from%20Japan%20in%202022%20was%20cars%2C%20with%20a%20value%20of%20Dh20.08%20billion.%3C%2Fp%3E%0A
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
UAE currency: the story behind the money in your pockets
