Live updates: Follow the latest news on Israel-Gaza
Oil posted a weekly gain as Middle East tensions continue after Israel rejected a ceasefire proposal from Hamas, dealing another blow to efforts to end the four-month-long war.
Brent, the benchmark for two thirds of the world’s oil, rose 0.69 per cent to close at $82.19 a barrel.
West Texas Intermediate, the gauge that tracks US crude, surged 0.81 per cent to settle at $76.84 a barrel.
The Israel-Gaza war, which has entered its fifth month, has kept oil prices elevated.
Brent and WTI benchmarks surged on Thursday, settling around 3 per cent higher, rising above the $80 and $75 levels, respectively, for the first time this month.
High oil prices have been the result of "diminishing prospects of a ceasefire in the Israel-Gaza war", Han Tan, chief market analyst at Exinity Group, told The National.
"Markets have been prompted recently to restore geopolitical risk premiums into oil benchmarks amid still-persistent supply-side risks," he said.
"Oil prices are set to remain sensitive to the fluid developments surrounding the ongoing tensions in the Middle East, set against the broader context of global supply-demand dynamics."
Despite intense US and international efforts to bring about a truce, Israeli Prime Minister Benjamin Netanyahu appeared to dismiss such talk on Wednesday and vowed his country's military would keep fighting Hamas in an attempt to achieve “absolute victory”.
On Thursday, US President Joe Biden aimed some of his most direct criticism at Israel since it invaded the Gaza Strip in October, saying the actions of its military have been “over the top”.
Mr Biden also said he was working “tirelessly” to push for a deal that would lead to a “sustained pause” in the fighting.
Investors are also monitoring events related to the conflict, particularly Houthi attacks on ships in the Red Sea, said Rania Gule, a market analyst at XS.com.
"This cautious market movement is expected in the short term," she said.
In addition, crude oil futures may receive "positive support" if the Federal Reserve decides to lower interest rates this year, should the US economy meet expectations, Ms Gule said.
The US central bank held its interest rates steady on January 31, while also affirming they will remain elevated until the central bank is confident inflation is moving closer to its 2 per cent goal.
It also asked for patience, warning that cutting rates too soon could undo much of the progress they have made on taming inflation.
"I believe there is confusion in the markets due to conflicting signals from the Federal Reserve, causing markets to now await monetary easing for a prolonged period, heightening risk in the market," Ms Gule said.
Meanwhile, US crude stocks, an indicator of fuel demand, increased by 5.5 million barrels last week, according to the US Energy Information Administration.
However, distillate stocks fell by 3.2 million barrels and petroleum stocks dropped by 3.15 million barrels in the week that ended on February 2, EIA data showed.
Analysts were expecting distillate inventories to fall by a million barrels and gasoline stocks to increase by 140,000 barrels, according to Reuters.
Opec+, on the other hand, decided to keep its oil output policy unchanged at its meeting on February 1 but said it would “continue to closely assess market conditions” and stand ready “to take additional measures at any time”.
The group has 2.2 million barrels per day of voluntary production cuts in place until next month, which is in addition to production cuts of 3.66 million bpd agreed on earlier.
Swiss lender UBS expects Opec+ to extend the voluntary cuts to the middle of the year.
COMPANY%20PROFILE
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Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
Contracted list
Ashton Agar, Alex Carey, Pat Cummins, Aaron Finch, Peter Handscomb, Josh Hazlewood, Travis Head, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Shaun Marsh, Mitchell Marsh, Tim Paine, Matt Renshaw, Jhye Richardson, Kane Richardson, Billy Stanlake, Mitchell Starc, Marcus Stoinis, Andrew Tye.
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
The five pillars of Islam
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Poland Statement
All people fleeing from Ukraine before the armed conflict are allowed to enter Poland. Our country shelters every person whose life is in danger - regardless of their nationality.
The dominant group of refugees in Poland are citizens of Ukraine, but among the people checked by the Border Guard are also citizens of the USA, Nigeria, India, Georgia and other countries.
All persons admitted to Poland are verified by the Border Guard. In relation to those who are in doubt, e.g. do not have documents, Border Guard officers apply appropriate checking procedures.
No person who has received refuge in Poland will be sent back to a country torn by war.
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
