Brent breaches $111 on supply worries and prospects of economic recovery



Brent crude rose above US$111 a barrel on Monday as fears of disruption of supply from the Middle East resurfaced amid growing optimism over signs that the world's biggest economies are on their way to a steady recovery.

A plunge in oil exports from Iraq due to bad weather, a bomb attack on the convoy of its finance minister, escalating attacks in Syria and an exercise by Iran's navy in the strategic Strait of Hormuz have all revived supply fears. That has helped the market recoup some of the previous session's losses due to large shipments of European gasoline to the United States.

Front-month Brent gained 43 cents to $111.07 a barrel, after settling 1.1 per cent lower on Friday, the biggest loss since December 17 and below its 100-day moving average of $111.05.

US oil rose 63 cents to $94.19.

"If there is any supply side concern in the Middle East, it will reflect in the risk premium and support prices," said Ben Le Brun, market analyst at Sydney-based OptionsXpress. "Those concerns are offsetting the losses we saw in oil on Friday because of a fall in gasoline prices."

Gains in the US benchmark continued to exceed those of Brent, narrowing the price difference between the two contracts to the lowest since September.

The US contract is gaining on the European benchmark following news of the start-up of the expanded Seaway pipeline. The pipeline aims to ease the glut of crude in the US Midwest, especially at Cushing, Oklahoma, delivery point for the US futures contract.

Oil is also drawing support from the fall in the dollar. The euro climbed to the highest against the US currency since February 2012.

Bad weather cut oil exports from Iraq's Basra port to 960,000 barrels per day (bpd) on Sunday, down from 2.35 million bpd a day earlier, a shipping source said.

"High winds in the Gulf are preventing loaded ships from leaving the port on Sunday," the source said.

* Reuters

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Name: HyperSpace
 
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Europa League semi-final, second leg
Atletico Madrid (1) v Arsenal (1)

Where: Wanda Metropolitano
When: Thursday, May 3
Live: On BeIN Sports HD

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If you go…

Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.

Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days. 

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Generational responses to the pandemic

Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:

Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.

Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.

Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.

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UAE squad

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Fixtures

Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
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Job: CEO JCDecaux Middle East

In the role: Since January 2015

Lives: In the UAE

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Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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The flights

The closest international airport for those travelling from the UAE is Denver, Colorado. British Airways (www.ba.com) flies from the UAE via London from Dh3,700 return, including taxes. From there, transfers can be arranged to the ranch or it’s a seven-hour drive. Alternatively, take an internal flight to the counties of Cody, Casper, or Billings

The stay

Red Reflet offers a series of packages, with prices varying depending on season. All meals and activities are included, with prices starting from US$2,218 (Dh7,150) per person for a minimum stay of three nights, including taxes. For more information, visit red-reflet-ranch.net.

 


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