Oil prices settled lower on Friday but posted weekly gains, as investors weighed continued supply disruptions amid the Russia-Ukraine crisis against an improved demand outlook, driven by use of oil for power generation.
Brent, the global benchmark for two-thirds of the world's oil, settled 1.46 per cent lower at $98.15 per barrel at the close of trading on Friday. West Texas Intermediate (WTI), the gauge that tracks US crude, slid 2.38 per cent at $92.09 a barrel.
Brent climbed 3.4 per cent for the week, following last week's 14 per cent fall, its biggest weekly decline since April 2020 on recession fears and its impact on fuel demand. WTI rose about 3.5 per cent.
“The IEA [International Energy Agency] says that the soaring gas prices boosted the use of oil-power generation and that the ‘substantial’ gas-to-oil switching is, in return, set to boost crude consumption for the rest of the year, even as demand growth from other parts of the economy slows, due to higher price pressures, and slowing economic activity,” Ipek Ozkardeskaya, an analyst at Swissquote Bank, said.
The Paris-based agency in its monthly report on Thursday said global oil demand growth would jump by 380,000 barrels per day to 2.1 million bpd this year.
The agency estimates total world oil demand to reach 99.7 million bpd in 2022 and surpass pre-Covid levels of 101.8 million bpd next year.
From the technical perspective, oil prices have completed an ABCD pattern, which could be a bullish encourage a “bullish breakout” that could support a rebound towards the $100 per barrel level in the short to medium run”, Ms Ozkardeskaya said.
Oil prices have remained volatile this year. Brent touched about $140 barrel in March following Russia’s invasion of Ukraine and the subsequent sanctions by the US and the UK on the import of Moscow’s crude.
However, However, oil it gave up most of its gains in the last few months, as concerns grew over the possibility of a recession hitting fuel demand globally.
Brent has declined from its recent peak of $123 per barrel, but it is still up more than 20 per cent since the beginning of this year.
In July, the International Monetary Fund lowered its growth forecast for the global economy to 3.2 per cent this year, from its previous forecast of 3.6 per cent in April, Russia’s war in Ukraine, high inflation and the Covid-19 pandemic.
“The oil market has bounced back this week, with Brent once more flirting with triple-figures,” said Craig Erlam, senior market analyst, UK and Europe, Middle East and Africa, at Oanda.
“There's been a lot to digest this week, with Iran nuclear talks ongoing, US inventories rising, US output also rising, the Druzhba pipeline saga and the various forecasts.”
Ukraine halted flows through the Druzhba oil pipeline towards Hungary, the Czech Republic and Slovakia on August 4, as sanctions prevented Moscow’s transit payments to Kyiv. However, supply from Russia resumed this week following transit payments from Moscow to Ukraine.
US crude inventories also rose more than two million barrels per day in the first week of August, putting further pressure on prices. The American Petroleum Institute reported a surprise increase of 2.156 million barrels for the week ended August 5.
Opec, however lowered its global oil demand forecast for this year amid the continued war in Eastern Europe, continued coronavirus pandemic-related movement restrictions and high inflation.
Oil demand is expected to rise by 3.1 million bpd in 2022, down 260,000 bpd from the previous forecast, the group said in its monthly market report on Thursday.
Global oil consumption in 2022 is projected to average 100 million bpd, it added.
“All things considered, the price moves highlight just how tight the market remains and how sensitive it therefore still is to spikes,” Mr Erlam said.
“A deal between the US and Iran could go some way to changing that but I think it's clear traders are not banking on that given how the talks have gone until this point.”
Nuclear deal talks in Vienna concluded earlier this week, with the EU suggesting a final text will now be put forward for the US and Iran to either agree upon or reject.
The deal would pave way for Iran to pump more oil into the market, which would put further downward pressure on oil prices.
“Over the immediate term, whether oil benchmarks can keep their heads above their 200-day moving averages could well depend on whether markets pay greater heed to recession fears or supply-side risks,” said Han Tan, chief market analyst at Exinity.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Revival
Eminem
Interscope
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company profile
Name: Tharb
Started: December 2016
Founder: Eisa Alsubousi
Based: Abu Dhabi
Sector: Luxury leather goods
Initial investment: Dh150,000 from personal savings
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books
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%3Cp%3E%3Cspan%20style%3D%22font-size%3A%2014px%3B%22%3E6pm%3A%20Go%20Soldier%20Go%3Cbr%3E6.35pm%3A%20Man%20Of%20Promise%3Cbr%3E7.10pm%3A%20Withering%3Cbr%3E7.45pm%3A%20Mawj%3Cbr%3E8.20pm%3A%20Falling%20Shadow%3Cbr%3E8.55pm%3A%20Law%20Of%20Peace%3Cbr%3E9.30pm%3A%20Naval%20Power%3Cbr%3E10.05pm%3A%20The%20Attorney%3C%2Fspan%3E%3C%2Fp%3E%0A
MATCH INFO
West Ham United 2 (Antonio 73', Ogbonna 90 5')
Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
The biog
Favourite book: Homegoing by Yaa Gyasi
Favourite holiday destination: Spain
Favourite film: Bohemian Rhapsody
Favourite place to visit in the UAE: The beach or Satwa
Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19
Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins
The specs
Engine: 2.0-litre 4-cylinder turbo hybrid
Transmission: eight-speed automatic
Power: 390bhp
Torque: 400Nm
Price: Dh340,000 ($92,579
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Dunbar
Edward St Aubyn
Hogarth
More on animal trafficking
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Company%20profile
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The Beach Bum
Director: Harmony Korine
Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg
Two stars
MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
if you go
The flights
Fly to Rome with Etihad (www.etihad.ae) or Emirates (www.emirates.com) from Dh2,480 return including taxes. The flight takes six hours. Fly from Rome to Trapani with Ryanair (www.ryanair.com) from Dh420 return including taxes. The flight takes one hour 10 minutes.
The hotels
The author recommends the following hotels for this itinerary. In Trapani, Ai Lumi (www.ailumi.it); in Marsala, Viacolvento (www.viacolventomarsala.it); and in Marsala Del Vallo, the Meliaresort Dimore Storiche (www.meliaresort.it).
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If you go
The flights
Return flights from Dubai to Santiago, via Sao Paolo cost from Dh5,295 with Emirates.
The trip
A five-day trip (not including two days of flight travel) was split between Santiago and in Puerto Varas, with more time spent in the later where excursions were organised by TurisTour.
When to go
The summer months, from December to February are best though there is beauty in each season
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
