Oil prices stabilised on Wednesday after trading lower during the midday session and following a sharp rise on Tuesday after Saudi Arabia and Russia announced output cuts for August.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.29 per cent higher at $76.47 a barrel at 7.28pm UAE time after falling more than $1 in early trade.
West Texas Intermediate, the gauge that tracks US crude, rose 2.78 per cent to $71.73 from Monday's close after trading through the US Independence Day holiday without a settlement.
Crude prices have dropped almost 12 per cent this year as China’s economic recovery loses momentum and as continued interest rate increases in the US and Europe threaten to stifle economic growth and energy demand.
China’s services sector showed signs of softening growth in June, according to the latest PMI data released on Wednesday.
Business activity and new orders both expanded at notably slower rates than in May, underscoring concerns over the tepid recovery in the world’s second-largest economy and the world’s biggest oil importer.
Opec will continue pursuing efforts to stabilise the oil market and will do “whatever is necessary”, Saudi Energy Minister Prince Abdulaziz bin Salman said at the Opec International Seminar in Vienna on Wednesday.
He said the market would not be left “unattended” and that the output policy announced on June 4 was “too big for people to comprehend”.
His remarks come after the world’s largest oil exporter said it would extend its voluntary production cut of a million barrels per day, which was initially announced for July, for another month.
Saudi Arabia, the world’s largest oil exporter, on Monday said it will extend its production cut of one million barrels per day, which was initially announced for July, for another month.
The kingdom’s production for August will be about nine million bpd and “this additional voluntary cut comes to reinforce the precautionary efforts made by Opec countries with the aim of supporting the stability and balance of oil markets”, the Saudi Press Agency reported.
Russia is also cutting its oil supplies by 500,000 bpd in August on top of the output reductions that have already been announced, state news agency Tass reported on Monday.
Sluggish demand in US, China and Europe are however weighing over investor sentiment. US manufacturing activity slumped further in June, reaching levels last seen in April 2020.
The ISM’s manufacturing PMI fell to 46.0 last month, down from 46.9 in May. The PMI remained below 50 for the eighth consecutive month, indicating contraction in the sector.
Factory activity growth in China, the world’s second largest economy and top crude importer, slowed in June.
The Caixin/S&P Global manufacturing purchasing managers' index eased to 50.5 last month from 50.9 in May. The 50-point index mark separates expansion from contraction.
After rising at the quickest rate in 11 months in May, Chinese manufacturing output expanded only slightly in June.
In April 2020, the Opec alliance of 23 oil-producing countries announced its largest production cut yet, 9.7 million bpd, as Covid-19 lockdowns hit global fuel demand and took Brent crude below $30 a barrel.
The Saudi and Russian announcements triggered concerns of a supply crunch that sent oil prices higher, Singapore-based oil markets consultancy Vanda Insights said in a research note.
However, traders are now taking stock of the situation, which has “prompted some profit-taking”.
“Many market participants would be sceptical of the gains notched in the North Sea benchmark in the previous session amid low trading volumes due to a public holiday in the US.”
Last month, Opec agreed to stick to its existing output cuts until the end of 2024.
The group has total production curbs of 3.66 million bpd, or about 3.7 per cent of global demand, in place, including a two million bpd reduction agreed last year and voluntary cuts of 1.66 million bpd announced in April.
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
SPECS
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More on Coronavirus in France
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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
In the Restaurant: Society in Four Courses
Christoph Ribbat
Translated by Jamie Searle Romanelli
Pushkin Press
Killing of Qassem Suleimani
Squad
Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas)
Florence and the Machine – High as Hope
Three stars
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
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TRAINING FOR TOKYO
A typical week's training for Sebastian, who is competing at the ITU Abu Dhabi World Triathlon on March 8-9:
- Four swim sessions (14km)
- Three bike sessions (200km)
- Four run sessions (45km)
- Two strength and conditioning session (two hours)
- One session therapy session at DISC Dubai
- Two-three hours of stretching and self-maintenance of the body
ITU Abu Dhabi World Triathlon
For more information go to www.abudhabi.triathlon.org.
India Test squad
Kohli (c), Dhawan, Rahul, Vijay, Pujara, Rahane (vc), Karun, Karthik (wk), Rishabh Pant (wk), Ashwin, Jadeja, Kuldeep, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur
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
Bharatanatyam
A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.
