Oil prices dropped on Wednesday as a larger than expected build-up in US crude stocks and growing Covid-19 cases in China eased concerns of tight supply in the market.
Brent, the benchmark for two thirds of the world’s oil, was 2.3 per cent lower at $93.04 a barrel at 10.56pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was down 2.9 per cent at $86.27 a barrel.
US crude oil inventories rose by about 5.6 million barrels last week, sources said, citing data from the American Petroleum Institute (API).
Analysts were expecting a growth of 1.1 million-1.4 million barrels.
The indicator, which shows the level of oil and product stored, gives an overview of US petroleum demand. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices.
The US Energy Information Administration, which will release its weekly crude inventory data later on Wednesday, has cut its supply forecast for 2023 US crude oil output for the fifth time in a row to 12.31 million barrels per day.
Crude prices were also dragged down by concerns about rising coronavirus cases in China, both the world’s second-largest economy and biggest crude importer.
On Tuesday, China reported 1,294 locally transmitted confirmed Covid-19 cases, state-run Xinhua news agency said, citing the National Health Commission.
“Bets that China will reopen soon are losing momentum as cases jumped in Guangzhou and other key Chinese cities,” Edward Moya, senior market analyst at Oanda, said.
“Brent crude is still close to the $100 a barrel level for now and it seems short-term risks to supplies have traders looking for a bullish move higher.”
Oil prices surged to a two-month high on Friday on reports that Beijing was planning to end a regulation that imposes a penalty on airlines for bringing virus cases into the country.
However, a China National Health Commission representative stressed at a press conference on Saturday that the country would continue with its strict measures, dashing hopes of a rebound in oil demand in the world’s second-largest economy.
“A weaker dollar is also boosting crude here but that support might be short-lived as this move in the dollar is likely short-covering,” said Mr Moya.
The US Dollar Index, a measure of the value of the greenback against a weighted basket of major currencies, has dropped 3 per cent over the past month.
Uncertainty stemming from Russia’s military offensive against Ukraine and China’s Covid curbs have driven investors to safe-haven assets such as the dollar in recent months.
Polls began to close in states across the US on Tuesday, as the midterm elections to determine which party will control Congress continued.
“Some traders anticipated a strong dollar if the Republicans do well tonight, but this move was more about hitting stops,” Mr Moya said.
Golden Shoe top five (as of March 1):
Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points
The British in India: Three Centuries of Ambition and Experience
by David Gilmour
Allen Lane
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
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
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
How to get exposure to gold
Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.
A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.
Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.
Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.
London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long
However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.
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Zayed Sustainability Prize
Profile of Tarabut Gateway
Founder: Abdulla Almoayed
Based: UAE
Founded: 2017
Number of employees: 35
Sector: FinTech
Raised: $13 million
Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
More from Neighbourhood Watch:
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
UAE currency: the story behind the money in your pockets
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
