Oil markets stabilised following a nearly 7% selloff in the markets on Monday. Reuters
Oil markets stabilised following a nearly 7% selloff in the markets on Monday. Reuters
Oil markets stabilised following a nearly 7% selloff in the markets on Monday. Reuters
Oil markets stabilised following a nearly 7% selloff in the markets on Monday. Reuters

Oil extends decline as concerns over Covid-19 variant mount


Jennifer Gnana
  • English
  • Arabic

Oil prices extended their decline on Tuesday as concerns over the surge in Covid-19 variants globally mount and markets factored in an additional supply from the Opec+ group of producers.

Brent, the international benchmark, lost about 9 per cent of its value from its settlement on Friday, while West Texas Intermediate, the main US gauge, fell 10 per cent.

The crude markers slipped below $70 per barrel during trading this week after Opec+, a group of oil producers headed by Saudi Arabia and Russia, resolved a weeks-long deadlock and agreed to an output deal.

Brent was trading at $68.80 per barrel at 12.53pm UAE time, while WTI was down to $66.78 per barrel.

The S&P 500 and the Nasdaq composite fell 2.09 per cent and 1.06 per cent in Monday trading. The Dow Jones Industrial Average dropped 1.59 per cent, its worst day since October.

"The sell-off was triggered by an increase in Covid cases caused by the Delta variant, which is currently the most common strain in the majority of countries," Naeem Aslam, chief analyst at AvaTrade, said.

"Oil prices have fallen due to uncertainty about the future outlook of demand for oil, as investors fear the resumption of lockdowns and a boost in supply subsequent to the Opec+ agreement," he added.

The Covid-19 Delta strain has spread rapidly across the developing world and led to renewed restrictions in some countries which had previously contained the spreading of the virus.

In the UK, which is now facing a resurgence of Covid-19 cases, the pound weakened against the dollar to $1.364 on Monday, its lowest level since February. It was trading at 1.367 on Tuesday at 1.18pm UAE time.

"It must be kept in mind that the economic recovery remains fragile with the Bank of England expecting unemployment to rise as the furlough scheme winds down in September," said Lukman Otunuga, senior research analyst at FXTM.

"Surging infections and the uncertainty it presents are the last things the UK economy needs at such a crucial period," he added.

On Sunday, Opec+ agreed to bring 400,000 barrels per day back to the markets in August and will revise baselines used to calculate quotas from May 2022, following requests by several countries, including the UAE.

Under the latest agreement, the UAE's new production baseline will increase to 3.5 million bpd, from 3.168 million bpd previously. Other producers – including Iraq, Kuwait, Saudi Arabia and Russia – will also see their baselines rise.

Oil markets stabilised following a nearly 7 per cent sell-off in the markets during the opening session on Monday.

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

UAE currency: the story behind the money in your pockets
ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

The specs: Lamborghini Aventador SVJ

Price, base: Dh1,731,672

Engine: 6.5-litre V12

Gearbox: Seven-speed automatic

Power: 770hp @ 8,500rpm

Torque: 720Nm @ 6,750rpm

Fuel economy: 19.6L / 100km

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
Guardians%20of%20the%20Galaxy%20Vol%203
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EJames%20Gunn%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Chris%20Pratt%2C%20Zoe%20Saldana%2C%20Dave%20Bautista%2C%20Vin%20Diesel%2C%20Bradley%20Cooper%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

Available: Now

The Outsider

Stephen King, Penguin

Australia (15-1): Israel Folau; Dane Haylett-Petty, Reece Hodge, Kurtley Beale, Marika Koroibete; Bernard Foley, Will Genia; David Pocock, Michael Hooper (capt), Lukhan Tui; Adam Coleman, Izack Rodda; Sekope Kepu, Tatafu Polota-Nau, Tom Robertson.

Replacements: Tolu Latu, Allan Alaalatoa, Taniela Tupou, Rob Simmons, Pete Samu, Nick Phipps, Matt Toomua, Jack Maddocks.

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

The Bio

Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride

She is the eldest of 11 children, and has four brothers and six sisters.

Her dream is to meet with all of her friends online from around the world who supported her work throughout the years

Her favourite meal is pizza and stuffed vine leaves

She ams to improve her English and learn Japanese, which many animated programmes originate in

Updated: July 20, 2021, 9:23 AM`