Oil markets are entering a new phase of recovery as US energy companies, which had previously parked crude in the country’s Strategic Petroleum Reserves (SPRs), withdraw stocks to meet rising demand.
Energy majors such as Exxon Mobil are taking back millions of barrels of crude from SPRs, according to the Department of Energy, which showed a withdrawal of 2.2 million barrels since the beginning of August.
The stocks are a fraction of the 23 million barrels that the US government agreed to store on behalf of energy companies, which ran out of options at the height of the demand slump in March and April due to the coronavirus pandemic.
The US Department of Energy has agreed to store the crude until March 31, 2021, for a small fee.
The move comes as demand for crude picks up around the world as mobility restrictions in place since March are being eased.
In April, the US Department of Energy said it was filling up its SPRs as a way to soak up supply from independent producers. Dan Brouillette, the US Energy Secretary, said the government was allocating around 77 million barrels of storage space to the industry.
The government stepped in to help the industry at a time when the US crude benchmark, West Texas Intermediate, plunged below zero to trade at -$40 per barrel as contracts for delivery in May neared expiry. The dramatic collapse in US crude followed the saturation of storage space at the benchmark’s delivery point at Cushing in Oklahoma.
The view on demand remains positive, with oil prices currently trending at five-month highs above $45 per barrel.
Benchmark Brent, under which most of the world’s crude trades, was up 1.53 per cent to $45.18 per barrel at 4.12pm UAE time on Wednesday. WTI was up 1.59 per cent to $42.27 per barrel.
Saudi Aramco, the world’s largest oil-exporting company, was also bullish in its estimation of global demand following its second-quarter results earlier this week.
Amin Nasser, Saudi Aramco’s president and chief executive, said on Monday he expects demand to reach 90 million barrels per day and above by year-end, close to the volumes seen before pandemic. The company, which sells around three-quarters of its crude to Asia, remained optimistic about the pick-up in demand in countries such as China, India, South Korea and Japan.
Saudi Aramco, the world’s biggest energy company, saw its profits decline 73.4 per cent for the second quarter. However, the state oil company reaffirmed plans to pay $75bn in dividends to shareholders regardless of market conditions as it remains bullish about achieving higher revenue from rising demand in the remainder of the year.
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Russia's Muslim Heartlands
Dominic Rubin, Oxford
The%20specs
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Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
RESULTS
5pm: Handicap (PA) Dh70,000 1,400m
Winner: AF Tathoor, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
5.30pm: Handicap (TB) Dh70,000 1,000m
Winner: Dahawi, Antonio Fresu, Musabah Al Muhairi
6pm: Maiden (PA) Dh70,000 2,000m
Winner: Aiz Alawda, Fernando Jara, Ahmed Al Mehairbi
6.30pm: Handicap (PA) Dh70,000 2,000m
Winner: ES Nahawand, Fernando Jara, Mohammed Daggash
7pm: Maiden (PA) Dh70,000 1,600m
Winner: Winked, Connor Beasley, Abdallah Al Hammadi
7.30pm: Al Ain Mile Group 3 (PA) Dh350,000 1,600m
Winner: Somoud, Connor Beasley, Ahmed Al Mehairbi
8pm: Handicap (PA) Dh70,000 1,600m
Winner: Al Jazi, Fabrice Veron, Eric Lemartinel
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
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
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The specs: Rolls-Royce Cullinan
Price, base: Dh1 million (estimate)
Engine: 6.75-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 563hp @ 5,000rpm
Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
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Killing of Qassem Suleimani
Results
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Five healthy carbs and how to eat them
Brown rice: consume an amount that fits in the palm of your hand
Non-starchy vegetables, such as broccoli: consume raw or at low temperatures, and don’t reheat
Oatmeal: look out for pure whole oat grains or kernels, which are locally grown and packaged; avoid those that have travelled from afar
Fruit: a medium bowl a day and no more, and never fruit juices
Lentils and lentil pasta: soak these well and cook them at a low temperature; refrain from eating highly processed pasta variants
Courtesy Roma Megchiani, functional nutritionist at Dubai’s 77 Veggie Boutique
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Contracted list
Ashton Agar, Alex Carey, Pat Cummins, Aaron Finch, Peter Handscomb, Josh Hazlewood, Travis Head, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Shaun Marsh, Mitchell Marsh, Tim Paine, Matt Renshaw, Jhye Richardson, Kane Richardson, Billy Stanlake, Mitchell Starc, Marcus Stoinis, Andrew Tye.
UAE currency: the story behind the money in your pockets
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
The five pillars of Islam
Rafael Nadal's record at the MWTC
2009 Finalist
2010 Champion
Jan 2011 Champion
Dec 2011 Semi-finalist
Dec 2012 Did not play
Dec 2013 Semi-finalist
2015 Semi-finalist
Jan 2016 Champion
Dec 2016 Champion
2017 Did not play
