Oil prices receded to below $100 a barrel at the end of trading on Friday after breaching the psychological level to reach prices not seen since 2014.
After soaring above $105 on Thursday, Brent, the benchmark for two thirds of the world's oil, ended trading 1.16 per cent lower at $97.93 per barrel on Friday. West Texas Intermediate, the gauge that tracks US crude, closed at $91.59 per barrel, down 1.31 per cent.
Oil prices weakened after various punitive measures announced by the US and its European allies against Russia for its military offensive in Ukraine, fell short of targeting Moscow's energy industry. The measures include limiting Russia's ability to do business in dollars, euros, pounds, and yen, while 27 EU members also moved to freeze Russian assets and deny banks access to the bloc's financial markets.
On Saturday, Washington and EU allies agreed to block certain Russian lenders from the Swift payments network to “ensure that these banks are disconnected from the international financial system and to harm their ability to operate globally”.
Notably, the US and EU have not placed sanctions on Russia’s energy and commodity industries, which are integral to the global economy. That eased market concerns as Russia is among the world's biggest producers of oil and natural gas, in addition to nickel, aluminium, palladium, cobalt, copper, wheat and barley.
In 2020, Russia produced about 10.2 million barrels a day of crude oil and natural gas condensate, placing it second after the US, with Saudi Arabia in third place, according to the 2021 BP Statistical Review of World Energy. It is also the second-largest producer of natural gas in the world.
Still, the risk of more restrictions being placed on energy supplies from Russia is likely to make crude oil prices volatile over the next few weeks, said Naeem Aslam, senior analyst at AvaTrade.
President Joe Biden has said the US is working with other countries on a combined release of additional oil from global strategic crude reserves to cool down oil prices.
US crude eased back to about $96 from above $100 on Thursday after Mr Biden said the US will release some of its strategic oil reserves to ease the pressure.
"If there is an ideal time to use the strategic reserves, it’s now,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
If a nuclear deal with Iran is reached it would provide additional supply to the world markets and "could help easing the energy crisis and pull the energy prices lower”, she said.
Iran, among larger Opec producers, will be able to boost exports by about a million barrels per day within a matter of months once sanctions are lifted. Tehran has been exempt from the production cuts under the Opec+ agreement because its crude oil production remains limited by US sanctions. The US Energy Information Administration estimates Iran’s production could return to full capacity, at 3.8 million barrels per day, if Washington lifts the sanctions.
The easing impact, however, could remain limited as long as the Opec+ supply constraints and the post-pandemic demand quickly absorb the available reserves.
Opec+ members, led by Saudi Arabia and Russia, will meet this week to decide future production cuts. The group had decided to add 400,000 barrels of oil per day to the market in March as demand continues to pick up amid the global economic recovery.
"WTI crude has found tentative support at the $90 a barrel and that could hold given how tight the oil market remains," said Edward Moya, senior market analyst at Oanda.
"Next week, Opec+ is expected to stick to a gradual output increase strategy of 400,000 bpd in April, which when you factor in they probably won’t hit their quota, oil prices should remain supported."
Rystad Energy expects oil prices could hit $130 a barrel by June if the Ukrainian conflict disrupts Russian crude flows and surge further beyond that if the crisis escalates.
“The escalation immediately jeopardises up to one million barrels per day of crude supplies that transit through Ukraine and the Black Sea, but the long-term disruptions could be far more significant,” said Rystad Energy’s chief executive Jarand Rystad.
“Oil prices could surge to around $130 per barrel, with consumers feeling the squeeze at the gas pump and in their power bills. The reality is that significantly higher prices are on the horizon in Europe and overseas.”
RESULT
Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')
INFO
Everton 0
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Man of the Match: Djibril Sidibe (Everton)
Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
UAE currency: the story behind the money in your pockets
Kandahar%20
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$1,000 award for 1,000 days on madrasa portal
Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.
School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.
“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.
“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
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• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
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Torque: 400Nm at 1,750-4,000rpm
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Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
