Oil prices were steady in morning trading on Thursday after falling by nearly 3 per cent the previous day amid concerns of more aggressive interest rate increases, which could lower fuel demand by hurting economic growth.
Brent, the benchmark for two thirds of the world’s oil, was 0.30 per cent higher at $80.84 a barrel at 11.56am UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 0.82 per cent at $74.16 a barrel.
On Wednesday, Brent settled 2.95 per cent lower at $80.60 a barrel while WTI fell 3.16 per cent to $73.95.
Minutes released by the US Federal Reserve from its latest meeting showed that policymakers expect continuing interest rate increases to bring inflation back down to their long-term goal of 2 per cent.
Most officials agreed to reduce the pace of rate increases to 25 basis points, but a few recommended an increase of 50 bps to bring the Fed Funds rate to a level they consider “sufficiently restrictive”.
This month’s US economic data pointed to stubborn inflation in the world’s largest economy, making a case for larger interest rate raises.
After its February meeting, the Fed raised interest rates by 25 bps — the eighth increase since March 2022. The Fed's next meeting is scheduled for March 21 to March 22.
The current target range for interest rates set by the Fed is 4.5 per cent to 4.75 per cent, which is about 50 bps below the end-of-year projection of 5.1 per cent.
“Energy traders not only have to keep up with all the latest supply and demand drivers, but also on how much the dollar might rebound, given the Fed’s tightening path,” said Edward Moya, a senior market analyst at Oanda.
The US Dollar Index — a measure of its value against a weighted basket of major currencies — slipped 0.2 per cent to 104.38 on Thursday.
An increase in interest rates can result in a rise in the value of the dollar, causing oil priced in dollars to become costlier for those holding other currencies.
“Oil will likely remain heavy here as inventories are up, refinery maintenance is here and on global growth concerns,” said Mr Moya.
US crude stocks — an indicator of petroleum demand — rose by 9.9 million barrels last week, according to the American Petroleum Institute.
Meanwhile, analysts polled by Reuters were expecting an increase of 2.1 million barrels in US crude stocks.
Moscow plans to cut oil exports from its western ports by up to 25 per cent in March, compared with February, Reuters reported on Thursday, citing Russian oil sources.
Russia, the world’s second-largest oil producer after Saudi Arabia, had previously said it would cut production by 500,000 bpd, or about 5 per cent of output, next month after the West imposed price caps on its crude and refined products on February 5.
UBS on Thursday lowered its oil price forecasts on falling demand and increasing crude supplies.
The Swiss lender slashed its Brent price estimate for June by $10 to $100 a barrel. It now expects the global benchmark to average $105 a barrel in December, $5 lower than its previous estimate.
“A mild winter in the Northern Hemisphere weighed on gas to oil switching, particularly in Europe,” UBS strategists said in a research note.
“Together with Russian production holding up, this translated into a less-tight oil market.”
While a stronger dollar remains a "headwind" for crude in the near term, lower Russian output and China's reopening will tighten the oil markets and support prices, UBS said.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
History's medical milestones
1799 - First small pox vaccine administered
1846 - First public demonstration of anaesthesia in surgery
1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases
1895 - Discovery of x-rays
1923 - Heart valve surgery performed successfully for first time
1928 - Alexander Fleming discovers penicillin
1953 - Structure of DNA discovered
1952 - First organ transplant - a kidney - takes place
1954 - Clinical trials of birth control pill
1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.
1998 - The first adult live-donor liver transplant is carried out
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
England's Ashes squad
Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes.
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Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Killing of Qassem Suleimani
The biogs
Name: Zinah Madi
Occupation: Co-founder of Dots and links
Nationality: Syrian
Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2
Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”
Name: Razan Nabulsi
Occupation: Co-founder of Dots and Links
Nationality: Jordanian
Family: Married, Mother of Yahya, 3.5
Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
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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
The Scale for Clinical Actionability of Molecular Targets
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EOutsized%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2016%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EAzeem%20Zainulbhai%2C%20Niclas%20Thelander%2C%20Anurag%20Bhalla%20and%20Johann%20van%20Niekerk%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EIndia%2C%20South%20Africa%2C%20South-East%20Asia%2C%20Mena%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Recruitment%0D%3Cbr%3E%3Cstrong%3EInvestment%20raised%3A%3C%2Fstrong%3E%20%241%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20staff%20count%3A%3C%2Fstrong%3E%2040%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3ESeed%20and%20angel%20investors%0D%3Cbr%3E%3C%2Fp%3E%0A
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