New player changes outlook on crude



From the standpoint of how market conditions could evolve, purely economic consideration of the US points to sluggish demand for energy there. It may be worth revisiting the last comparable period of US economic difficulty that ran from 1980 to 1986. While the onset of a strong economic recovery during this six-year period may be traced back to 1983, energy demand kept falling on the back of conservation and average oil prices tumbled sharply in 1986.

In other words, any onset of robust growth in the US will in all probability muscle oil demand into expansion. But, if history is anything to go by, oil prices may take longer to revive than economic growth. Amid a retrenchment in net imports and domestic demand, the US oil market is oversupplied. The price of crude plunged on Friday as the US energy department reported that US stockpiles rose more than expected last week, which points to weak fuel demand.

The US is the world's largest consumer of oil with a 23 per cent share of the global total last year. It is also its biggest importer, bringing in 60 per cent of its total consumption. Since December of last year, its net imports - imports less exports - of crude oil and petroleum products have been falling steadily; last August, they were at their January 2000 trough when Brent crude was at US$27 a barrel.

Along with this sluggish demand, the US supply of crude oil, the world's third-largest after Saudi and Russia, continues to rise with little prospect of it soon shifting into deficit. In fact, net domestic supply - total supply less net imports - is about the same level of its December 2003 peak when oil was at just $30 a barrel. If these figures are indicative of how oil prices will pan out in the near term, then one may suppose that the oil market may be susceptible to a harsh correction this winter.

Bringing this into sharper focus, the supply-demand imbalance in the world's largest buyer of crude oil and its experience in the period from 1980 to 1986 could easily suggest that oil's next move is on a downwards leg. It would be easy - but wrong this time - to reach that conclusion. The rogue aspect in the current situation is rising demand from Asia. This explains why trying to meet in part this surge in demand, Saudi Arabia has embarked on a US$100 billion (Dh367bn) upgrade of oil and gas production and refining.

Last week, the International Energy Agency revised upwards its estimates of global oil demand which is now likely to feature growth in the current quarter compared with the fourth quarter last year, after five quarters of decline. News on rising Chinese imports in particular helped oil prices. Chinese net oil imports hit 4.47 million barrels per day (bpd) last month, slightly below the record of 4.62 million bpd last July. That counters earlier calculations which, seizing on the vast 1 million bpd Chinese inventory build-up for July, noted that Chinese imports were likely to underperform the normal response to GDP growth.

Investment buying, too, may reinforce a stronger Asian demand. After all, expectations are not divorced from global fundamentals and do feed back into one another. What all this means for the spot market for oil is that, while it is subject to a whole lot of volatility on the back of speculative trading, it may well diverge from US economic fundamentals this winter. Dr Salwa Hammami Labib is a senior economist at Arqaam Capital

What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

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A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

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Armies of Sand

By Kenneth Pollack (Oxford University Press)
 

Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

How green is the expo nursery?

Some 400,000 shrubs and 13,000 trees in the on-site nursery

An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo

Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery

Approximately 340 species of shrubs and trees selected for diverse landscape

The nursery team works exclusively with organic fertilisers and pesticides

All shrubs and trees supplied by Dubai Municipality

Most sourced from farms, nurseries across the country

Plants and trees are re-potted when they arrive at nursery to give them room to grow

Some mature trees are in open areas or planted within the expo site

Green waste is recycled as compost

Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs

Construction workforce peaked at 40,000 workers

About 65,000 people have signed up to volunteer

Main themes of expo is  ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.

Expo 2020 Dubai to open in October 2020 and run for six months

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

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Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
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THE SPECS

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Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

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Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm
Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

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Available: Now

Shooting Ghosts: A U.S. Marine, a Combat Photographer, and Their Journey Back from War by Thomas J. Brennan and Finbarr O’Reilly

If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

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Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Specs – Taycan 4S
Engine: Electric

Transmission: 2-speed auto

Power: 571bhp

Torque: 650Nm

Price: Dh431,800

Specs – Panamera
Engine: 3-litre V6 with 100kW electric motor

Transmission: 2-speed auto

Power: 455bhp

Torque: 700Nm

Price: from Dh431,800

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million