Oil prices fell on Tuesday after the US said it would release more crude from its Strategic Petroleum Reserve (SPR), even as concerns continue about sluggish demand due to slowing global economic growth.
Brent, the benchmark for two thirds of the world’s oil, was trading 1.28 per cent lower at $85.50 a barrel at 10.09pm UAE time.
West Texas Intermediate, the gauge that tracks US crude, was down 1.31 per cent at $79.09 a barrel.
The US Department of Energy said it would sell 26 million barrels of crude from its emergency reserve this year to “meet its obligation to Congress".
Bids on the oil are due on February 28 and it will be delivered from April 1 to June 30, the department said.
A record 180 million barrels of oil were released from America’s emergency reserves last year after Russia’s invasion of Ukraine resulted in Brent crude closing in on a 14-year high of $140 a barrel.
"Oil prices settled slightly higher overnight but have given up those gains in early trade today on plans from the US government to release more crude from strategic stockpiles," said Jeanne Walters, a senior economist at Emirates NBD.
"These sales had been planned as part of budgeting exercises from several years ago, rather than adding to the release of 180 million barrels last year aimed at stopping price growth."
Investors will also be keenly awaiting Tuesday’s US consumer price index data, a closely followed inflation gauge.
“If inflation is scorching hot, we could see a make-or-break moment in the dollar as more [US Federal Reserve] rate hikes get priced in,” said Edward Moya, senior market analyst at Oanda.
“The crude demand outlook is still holding on to hopes that the US economy could still have a soft landing, but a hot inflation report might trigger more recession calls.”
This month, the Fed raised interest rates — for the eighth time since last year — by 25 basis points, and indicated that more increases were to come.
The latest announcement puts the Fed's target range at between 4.5 per cent and 4.75 per cent — about 50 basis points away from its end-of-year projection of 5.1 per cent.
The International Monetary Fund expects central banks to continue monetary tightening to keep inflation in check, the fund’s managing director Kristalina Georgieva said at an event on Monday.
“Inflation is trimming down [but] the fight is not won yet,” said Ms Georgieva.
Crude futures gained more than 8 per cent last week amid China's recovery prospects and supply concerns triggered by Russia's plans to slash output by 500,000 barrels per day.
Russia said it would cut about 5 per cent of its production in March after the West imposed a price cap on exports of its refined products.
On February 5, the G7 and the EU agreed to set the price cap at $100 a barrel for products that trade at a premium to crude, such as diesel, and $45 a barrel for products that trade at a discount, such as naphtha and fuel oil.
The price cap was introduced along with an EU ban on Russian diesel and other refined products.
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
More from our neighbourhood series:
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich 1
Kimmich (27')
Real Madrid 2
Marcelo (43'), Asensio (56')
QUALIFYING RESULTS
1. Max Verstappen, Netherlands, Red Bull Racing Honda, 1 minute, 35.246 seconds.
2. Valtteri Bottas, Finland, Mercedes, 1:35.271.
3. Lewis Hamilton, Great Britain, Mercedes, 1:35.332.
4. Lando Norris, Great Britain, McLaren Renault, 1:35.497.
5. Alexander Albon, Thailand, Red Bull Racing Honda, 1:35.571.
6. Carlos Sainz Jr, Spain, McLaren Renault, 1:35.815.
7. Daniil Kvyat, Russia, Scuderia Toro Rosso Honda, 1:35.963.
8. Lance Stroll, Canada, Racing Point BWT Mercedes, 1:36.046.
9. Charles Leclerc, Monaco, Ferrari, 1:36.065.
10. Pierre Gasly, France, Scuderia Toro Rosso Honda, 1:36.242.
Eliminated after second session
11. Esteban Ocon, France, Renault, 1:36.359.
12. Daniel Ricciardo, Australia, Renault, 1:36.406.
13. Sebastian Vettel, Germany, Ferrari, 1:36.631.
14. Antonio Giovinazzi, Italy, Alfa Romeo Racing Ferrari, 1:38.248.
Eliminated after first session
15. Antonio Giovinazzi, Italy, Alfa Romeo Racing Ferrari, 1:37.075.
16. Kimi Raikkonen, Finland, Alfa Romeo Racing Ferrari, 1:37.555.
17. Kevin Magnussen, Denmark, Haas Ferrari, 1:37.863.
18. George Russell, Great Britain, Williams Mercedes, 1:38.045.
19. Pietro Fittipaldi, Brazil, Haas Ferrari, 1:38.173.
20. Nicholas Latifi, Canada, Williams Mercedes, 1:38.443.
