Oil prices inched upwards on Monday, helped by rising demand for heating fuel in the northern hemisphere, and the effect of constraints on the supply of Libyan crude.
Crude advanced from Friday’s close, with Brent climbing 1.1 per cent, or 69 cents, to $60.14 in late afternoon trading UAE time.
“I believe the oil prices will consolidate, or see positive growth, in the coming weeks,” said Pradeep Unni, the head of commodities trading at Richcomm Global Services DMCC.
Analysts also cited the threat of disruption to supply after a rocket hit Libya’s largest oil port, Es Sider, on December 13. Clashes between two groups claiming control over Libya resulted in five tankers being set on fire destroying 800,000 barrels of crude oil, Libya’s National Oil Company reported.
Before the unrest that has plagued Libya since February 2011, the country was producing an estimated 1.65 million barrels per day (bpd) of high quality, light sweet crude. This type of crude is the most widely preferred and traded because it has a very low sulphur content and is used to create high-value products such as petrol, diesel fuel, heating oil and jet fuel.
Es Sider exported 21 per cent of Libya’s production, approximately 350,000 bpd at its peak, according to estimates from the US Energy Information Administration (EIA). Libyan production will end the year 40 per cent lower, at 385,000 bpd, compared to 650,000 bpd in January.
Fighting was also reported west of Es Sider in Sirte. The Sirte basin accounts for most of the country’s oil output and about 80 per cent of Libya’s recoverable reserves.
Another positive factor working against the supply glut is the higher demand for heating oil as winter hits major energy consumers.
During last month, the EIA said heating degree days (HDD) – when temperatures drop below 18°C requiring buildings to be heated – were estimated at 18 per cent higher than the previous 10-year average for November.
“The market is significantly oversupplied through the first half of the year, said Jason Gammel, an analyst at Jefferies. “It’s going to take further growth in GDP to spur demand growth.”
Mr Gammel added that many companies were making significant cuts in their capital expenditures, which could further affect supply. “That will lower the pace of supply growth from non-Opec sources, mostly the US, but that will take months to play on.”
Arabian Gulf oil exporters are feeling the effect of the weaker oil price as they prepare budgets for the year ahead. Saudi Arabia released its budget on Thursday, anticipating its fiscal deficit to increase by more than 100bn riyals.
“Opec countries are not comfortable with current oil prices, and it is causing budget deficits,” said Mr Unni, referring to Opec’s largest supplier, Saudi Arabia. “If oil prices remain at current levels, we’ll see some reactions to the production at the next Opec meeting. The discomfort in oil prices dropping is visible in many oil countries.”
lgraves@thenational.ae
The biog
Name: Marie Byrne
Nationality: Irish
Favourite film: The Shawshank Redemption
Book: Seagull by Jonathan Livingston
Life lesson: A person is not old until regret takes the place of their dreams
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
Killing of Qassem Suleimani
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Heather, the Totality
Matthew Weiner,
Canongate
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
RESULTS
6.30pm: Maiden Dh 165,000 1,600m
Winner: Superior, Connor Beasley (jockey), Ahmad bin Harmash (trainer)
7.05pm: Handicap Dh 185,000 2,000m
Winner: Tried And True, Pat Dobbs, Doug Watson
7.40pm: Maiden Dh 165,000 1,600m
Winner: Roy Orbison, Fernando Jara, Ali Rashid Al Raihe
8.15pm
Handicap Dh 190,000 1,400m
Winner: Taamol, Dane O’Neill, Ali Rashid Al Raihe
8.50pm
Handicap Dh 175,000 1,600m
Winner: Welford, Richard Mullen, Satish Seemar
9.25pm: Handicap Dh 175,000 1,200m
Winner: Lavaspin, Richard Mullen, Satish Seemar
10pm: Handicap Dh 165,000 1,600m
Winner: Untold Secret, Xavier Ziani, Sandeep Jadhav
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
What is tokenisation?
Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
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%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Taika%20Waititi%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Chris%20Hemsworth%2C%20Natalie%20Portman%2C%20Christian%20Bale%2C%20Russell%20Crowe%2C%20Tessa%20Thompson%2C%20Taika%20Waititi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A