Oil prices rallied on Monday after media reports that the 23-member Opec+ alliance is considering slashing output by more than 1 million barrels per day, which would be its largest output cut since the start of the Covid-19 pandemic.
Brent, the benchmark for two thirds of the world’s oil, was trading 4.23 per cent higher at $88.74 a barrel at 10.05pm UAE time on Monday. West Texas Intermediate, the gauge that tracks US crude, was up 5.04 per cent at $83.50 a barrel.
Both benchmarks posted their first quarterly loss in two years at the end of a volatile trading week on Friday. Brent fell by about 22 per cent in the three months to the end of September, while WTI shed about 25 per cent.
Global recession fears, a strong US dollar, surging inflation and monetary tightening by central banks around the world have continued to weigh on the market.
The International Monetary Fund, the World Bank, the Institute of International Finance and the Organisation for Economic Co-operation and Development (OECD) have all slashed their global economic growth forecasts for this year.
Opec+ plans to meet in Vienna on October 5, their first in person meeting since March 2020. An output cut of the suggested size would provide a stronger floor to prices, boosting them towards $90 a barrel or more.
“The fact that this is not a virtual meeting any more and partners want to meet in person is an indication for traders and investors that … the meeting is not about the potential half-a-million production cut,” said Naeem Aslam, chief market analyst at AvaTrade.
“Reducing oil supply by that much may not do the job,” he said, adding that the alliance “will have to devise a strategy that can support their desired level of price, which is defiantly above the $80 market”.
Opec+ agreed in the spring of 2020 to cumulatively cut crude production by a record 9.7 million barrels per day as it faced a pandemic-induced crash in oil prices. The alliance then gradually whittled down the cuts over the past two years.
“In order to prevent a further disorderly unwinding in oil markets, Opec+ is likely to cut output for November levels onward by a larger degree than what they planned for October, with as much as 500,000 barrels per day to 1 million bpd potentially being cut,” Emirates NBD economists Khatija Haque and Edward Bell said in a research note on Monday.
In its outlook report last month, Opec kept its global oil demand forecast unchanged for this year despite headwinds from rising inflation and interest rates, as well as the continuing war in Ukraine. It expects global oil consumption in 2022 to average 100 million bpd.
Last month, the International Energy Agency slashed its estimates for 2022 global oil demand growth to 2 million barrels per day, marginally down from its 2.1 million bpd projection in August.
“We may start to see guidance from Opec+ take its cues from global central banks and adopt a more 'hawkish' tone on oil production,” Mr Bell said.
“Our oil price assumptions for the end of 2022 and into 2023 assumed that Opec+ would adopt a more interventionist stance in the market.”
Emirates NBD expects oil prices to average $105 a barrel for Brent and $95 a barrel for WTI in 2023.
“The challenge in cutting output will be to avoid pushing prices up too much that it exacerbates the pending slowdown in demand growth by making fuel unaffordable for many economies already dealing with high inflation and tighter monetary policy,” Mr Bell said.
“Thus, while we may get a cut now, it doesn’t necessarily mean Opec+ will keep moving in a downward direction on production going forward.”
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KILLING OF QASSEM SULEIMANI
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
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.
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
COMPANY%20PROFILE
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A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
Illegal%20shipments%20intercepted%20in%20Gulf%20region
%3Cp%3EThe%20Royal%20Navy%20raid%20is%20the%20latest%20in%20a%20series%20of%20successful%20interceptions%20of%20drugs%20and%20arms%20in%20the%20Gulf%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMay%2011%3A%20%3C%2Fstrong%3EUS%20coastguard%20recovers%20%2480%20million%20heroin%20haul%20from%20fishing%20vessel%20in%20Gulf%20of%20Oman%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMay%208%3A%3C%2Fstrong%3E%20US%20coastguard%20vessel%20USCGC%20Glen%20Harris%20seizes%20heroin%20and%20meth%20worth%20more%20than%20%2430%20million%20from%20a%20fishing%20boat%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMarch%202%3A%3C%2Fstrong%3E%20Anti-tank%20guided%20missiles%20and%20missile%20components%20seized%20by%20HMS%20Lancaster%20from%20a%20small%20boat%20travelling%20from%20Iran%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOctober%209%2C%202022%3A%20%3C%2Fstrong%3ERoyal%20Navy%20frigate%20HMS%20Montrose%20recovers%20drugs%20worth%20%2417.8%20million%20from%20a%20dhow%20in%20Arabian%20Sea%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESeptember%2027%2C%202022%3A%3C%2Fstrong%3E%20US%20Naval%20Forces%20Central%20Command%20reports%20a%20find%20of%202.4%20tonnes%20of%20heroin%20on%20board%20fishing%20boat%20in%20Gulf%20of%20Oman%C2%A0%3C%2Fp%3E%0A
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%208
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Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
More from Neighbourhood Watch
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
The%20specs
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BLACK%20ADAM
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Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
