Oil prices fell by more than 2 per cent on Friday and posted a sixth consecutive decline amid uncertainty over future demand despite Opec+ members extending their voluntary oil output reduction.
Brent, the benchmark for two thirds of the world’s oil, shed 2.45 per cent to settle at $78.88 a barrel. West Texas Intermediate, the gauge that tracks US crude, slipped 2.49 per cent to finish at $74.07 a barrel.
Opec+ members on Thursday extended their voluntary oil output reductions until the end of the first quarter of 2024 amid concerns over future fuel demand.
Saudi Arabia, the world's largest oil exporter, will keep its voluntary output cut of one million barrels per day until the end of March. The UAE and Russia will also deepen their crude production cuts.
In total, the group revealed supply reductions of almost 2.2 million bpd for the first quarter.
However, with oil prices reversing initial gains and declining after the announcement on Thursday, analysts suggest the market was “disappointed” by the decision, as it fell short of expectations.
“The new cuts are only for the first quarter of 2024 and, more importantly, the group failed to agree on an Opec+ wide cut and instead had to rely on voluntary unilateral cuts,” said Jorge Leon, senior vice president at Rystad Energy.
The reaction of prices on Thursday was like “sitting on a roller coaster”, said Giovanni Staunovo, a strategist at Swiss bank UBS.
“While we believe Opec+ wants to stay in control of the oil market by taking a proactive approach to prevent oil inventories from rising in the first quarter of 2024 when oil demand normally seasonally weakens, the way those production cuts has been announced has created confusion,” he said.
“As those are voluntary cuts, market participants seem to be concerned that a large fraction of those new pledged cuts won't get implemented. Also, part of the current Opec+ production cuts are voluntary, so we should still lower Opec+ crude production in the first quarter.”
Oil prices, which briefly touched $98 in September, have since fallen by around 16 per cent, despite predictions of a tight crude market in the fourth quarter by the International Energy Agency and Opec.
Crude jumped at the start of the Israel-Gaza war in October on concerns that it would escalate into a broader conflict in the region, which is responsible for about a third of the world's oil production.
However, supply concerns have eased, in part due to higher oil production in Iran and the easing of sanctions on Venezuela.
Prices are also still being weighed down by concerns of slow demand growth in the US and China, the world's biggest consumers of crude, which are respectively dealing with prospects of interest rates remaining higher for longer and a troubled property sector, said Ann-Louise Hittle, vice president for macro oils at research firm Wood Mackenzie.
“Sentiment is jittery about the prospects of economic growth and strong oil demand growth next year,” she said.
The US Federal Reserve will proceed carefully and only raise interest rates if progress in controlling inflation is hampered, the minutes of the central bank's latest meeting showed last week.
China's real estate industry, meanwhile, has been sluggish amid the bankruptcy of property company Evergrande Group and contagion concerns.
The first quarter of 2024 could also pose a challenge for Opec+ as, seasonally, global supply growth moderately outpaces demand, and inventories build at a typical seasonal pace, Ms Hittle said.
“The additional voluntary production cuts reflect that concern about the market balance … with demand uncertainty, the task for Opec+ to maintain a market balance will not be straightforward,” she said.
World oil demand will rise by 2.25 million barrels per day in 2024, compared with a growth of 2.44 million bpd this year, Opec said in its monthly oil market report.
“We continue to believe that the undersupplied oil market should see prices rising over the coming months,” Mr Staunovo said.
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
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
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
Quick%20facts
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UAE currency: the story behind the money in your pockets
World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
More from Rashmee Roshan Lall
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
THREE
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The%20specs
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
AIR
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MATCH INFO
Real Madrid 2 (Benzema 13', Kroos 28')
Barcelona 1 (Mingueza 60')
Red card: Casemiro (Real Madrid)
