Oil prices were down on Monday following a sharp drop earlier in the session, after strict Covid-19 curbs affected China’s crude demand in September.
Brent, the benchmark for two thirds of the world’s oil, and West Texas Intermediate, the gauge that tracks US crude, fell more than 2 per cent in the afternoon. Brent was down 0.65 per cent at $92.89 a barrel, while US crude futures were 0.81 per cent lower at $83.46 a barrel, as of 8.05pm UAE time.
China, both the world’s second-largest economy and biggest crude importer, brought in 40.24 million tons of crude oil, or about 9.79 million barrels per day, in September.
Crude shipments were up from 9.5 million bpd in August, but were well below the 10 million bpd China imported a year earlier, data from the country's General Administration of Customs show.
The country’s gross domestic product grew 3.9 per cent year-over-year in the third quarter, a sharp rise from the 0.4 per cent growth reported in the second quarter.
Industrial production in September rose 6.3 per cent, compared to 4.2 per cent in August, signalling an improvement in manufacturing output last month.
“Oil prices settled mixed last week as the negative prospects for demand remain powerful as indicated by China’s insistence on using a zero-Covid policy,” Edward Bell, senior director of market economics at Emirates NBD, said in a research note on Monday.
Xi Jinping, who has backed the government’s zero-Covid policy, secured a third term as China's president on Sunday, cementing his position as the nation's most influential leader since Mao Zedong.
Oil markets are closely watching how a price cap on Russian oil will be enacted by the Group of Seven nations. The cap, which is meant to reduce revenue for Russia’s government, is expected to come into effect on December 5.
A European Union embargo on Russian waterborne crude will be enacted the same day, while a ban on refined products will take effect on February 5.
Crude supply has been tight after the Opec+ alliance of oil-producing countries slashed its collective output by two million bpd earlier this month.
Brent crude, which has gained about 11 per cent over the month, will see “strong” resistance going into the $93-$95 a barrel range as recession expectations could “jeopardise any strong oil rally into the $100 level”, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Recent data has pointed to a nascent recovery in the US shale patch.
Oil production in the Permian Basin of Texas and New Mexico, the biggest shale basin and the focal point of the US shale resurgence, is expected to rise by about 50,000 barrels per day to a record 5.45 million bpd in November, the country's Energy Information Administration said last week.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
