Opec+ is set to meet on Thursday amid calls for the alliance of producers to help bring down oil prices that have hit multi-year highs.
The meeting comes at a time when global supplies are constrained while demand is rising as developed economies rebound faster than expected from the coronavirus-induced slowdown.
Opec+ led by Saudi Arabia and Russia may consider raising supply when it convenes for a ministerial session.
The alliance of producers will review an earlier plan to bring back 2 million barrels per day to the market by the end of the year.
So far, the energy bloc has raised supply in increments of 400,000 bpd but may consider a higher volume of increase after facing pressure from the US and crucial oil consumers to flatten prices.
Oil prices have surged this year as economies improve after Covid-19 lockdowns, with borders reopening and mobility restrictions being eased.
Air travel and ground transport have resumed, placing greater demand on crude and related products.
However, supply chains disrupted by the pandemic have not fully been restored and the energy industry continues to struggle with underinvestment.
These factors have pushed the price of Brent to three-year highs in recent weeks, with West Texas Intermediate, the main US benchmark, rising to seven-year highs.
Brent is up about 62 per cent this year while WTI is up about 71 per cent. Natural gas, which is linked to the price of crude, has also rallied this year and is up 78 per cent so far.
Brent fell 1.59 per cent to trade at $83.37 a barrel at 12.05pm UAE time on Wednesday. WTI fell 1.74 per cent to trade at $82.45 a barrel.
Opec+ is under pressure from Washington, with US Energy Secretary Jennifer Granholm blaming the alliance for the recent surge in higher oil prices.
US President Joe Biden has also called on the group to do more to contain the rally in commodity prices.
The group has not publicly responded to the comments by Mr Biden and Ms Granholm.
Kuwait and Iraq have both dismissed requests by the US to increase supply while Saudi Arabia continues to maintain that the market is well supplied.
"I do not believe Opec+ will succumb to pressure and raise production quotas by more than the previously agreed 400,000 barrels," said Jeffrey Halley, senior market analyst for the Asia-Pacific region at Oanda.
"They have surprised markets before. If they do raise production, the knee-jerk sell-off could see oil fall by up to 10 per cent."
The US pressure on Opec+ also runs counter to its efforts to establish itself in a leadership position at the ongoing Cop26 summit in Glasgow.
"The optics of calling on oil-exporting economies to increase production also runs at odds with US efforts to reclaim leadership of global climate change policy," senior director of market economics at Emirates NBD said in a note on Wednesday.
"The solution for the energy market shortages — not caused by oil markets initially — will be addressed in the near term by relying on precisely the kind of fuels that international leaders and climate activists are pushing against — namely coal, natural gas, and oil."
At the meeting, Opec+ would also need to factor in the possibility of a much colder winter in the Northern Hemisphere, which could drive the rally and push Brent to above $100.
Policy organisations such as the International Energy Agency believe demand will rise by 500,000 bpd as a result of the current shortage across global markets.
The group is also keeping a close eye on the possiblee return of Iranian barrels as talks with Tehran and the international community regarding the nuclear deal are set to resume this month.
On Tuesday, Bank of America said high oil prices look set to continue well into 2023, with the average price of Brent forecast to continue trading above $80 a barrel.
The lender expects Brent to average $85 a barrel in 2022 and $82 a barrel in 2023. WTI is projected to trade at $75 and $70 a barrel in 2022 and 2023, BofA said.
Emirates NBD said it expects to see Opec+ members remain in favour of keeping oil markets tight.
"We remain of the view that oil prices will stay high until the end of 2021 and likely bleed into the early parts of next year."
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
UAE currency: the story behind the money in your pockets
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Killing of Qassem Suleimani
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
Scoreline
Arsenal 3
Aubameyang (28'), Welbeck (38', 81')
Red cards: El Neny (90' 3)
Southampton 2
Long (17'), Austin (73')
Red cards: Stephens (90' 2)
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FIXTURES
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Leicester v Man United
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