Increasing tensions in the Mena region are driving up oil prices again, with expectations rising of a complete curtailment of Libyan exports and falling spare capacity in Saudi Arabia.
North Sea Brent crude topped US$116 a barrel yesterday, jumping 2 per cent soon after the start of trading in London.
In New York, oil futures advanced by as much as 2.3 per cent to exceed $103 a barrel for the US benchmark crude, as concerns grew that allied air strikes in Libya threatened to prolong deep production cuts in the North African nation.
Analysts predicted crude would reach between $120 and $200 a barrel, depending which of various possible scenarios play out in the volatile region.
"The list of troubles in the Mena region keeps growing by the day," a Merrill Lynch report said. "There are simply too many fronts open at this stage and a more severe oil disruption cannot be ruled out."
Libya's crude output has fallen below 400,000 barrels per day (bpd), or about a quarter of its pre-crisis level.
Shokri Ghanem, the chairman of the country's National Oil Corporation and its de facto oil minister, said output could stop entirely, as the Libyan president Muammar Qaddafi vowed to repel attacks against military installations.
Analysts predicted Libya's exports of light, sweet crude, which is especially prized by European refiners, could be offline for at least a year.
"With the nature of the external military involvement becoming clearer, there is a further escalation of the situation and the damage to infrastructure might be larger, keeping Libya out of the oil market for longer," Amrita Sen, an analyst at Barclays Capital, told Reuters.
Other analysts had more dire predictions.
Crude could jump to $150 or more if Libya's revolution spread to Algeria, requiring Saudi Arabia to bring all of its spare capacity online to compensate, Shawkat Hammoudeh, a professor of economics and international business at Drexel University in the US, said in the current issue of Middle East Economic Survey.
US oil fell last week below $100 a barrel, dragged down by fears that Japan could face a long nuclear crisis after a devastating earthquake and tsunami hit its north-east coast.
Yesterday, workers at the site of the crippled nuclear power plant seemed to be gaining the upper hand after restoring power to pumps that circulate cooling water.
The easing of Japanese concerns allowed oil prices to return to the upward path that earlier took Brent crude close to $120 and New York oil futures near $105.
Other big oil consumers were also alarmed by crude's renewed rise.
"I [was] very surprised and shocked when I saw the international price of [US] oil has exceeded $100 per barrel," the Chinese premier Wen Jiabao told a group of visiting business leaders yesterday.
Mr Wen blamed the increase on Middle East unrest and loose monetary policies in "some countries".
Internationally, concerns seemed squarely focused on Saudi Arabia. Already, analysts estimate that Saudi spare capacity of about 4 million bpd before the unfolding Arab political crisis has been eroded to between 2 million and 3 million bpd.
tcarlisle@thenational.ae
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Recipe: Spirulina Coconut Brothie
Ingredients
1 tbsp Spirulina powder
1 banana
1 cup unsweetened coconut milk (full fat preferable)
1 tbsp fresh turmeric or turmeric powder
½ cup fresh spinach leaves
½ cup vegan broth
2 crushed ice cubes (optional)
Method
Blend all the ingredients together on high in a high-speed blender until smooth and creamy.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Company info
Company name: Entrupy
Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist
Based: New York, New York
Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.
Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius.
Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place.
BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
Based: Dubai, UAE
Sector: E-commerce
Size: 50 employees
Funding: approximately $6m
Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
PFA Team of the Year: David de Gea, Kyle Walker, Jan Vertonghen, Nicolas Otamendi, Marcos Alonso, David Silva, Kevin De Bruyne, Christian Eriksen, Harry Kane, Mohamed Salah, Sergio Aguero
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
