Oil prices posted a drop this week, the first this year, following US President Donald Trump's remarks on Thursday asking Opec to bring down the cost of crude.
Concerns about Mr Trump’s trade policies and proposed tariffs on China, the world’s leading oil importer, are also weighing on prices.
Brent, the benchmark for two thirds of the world’s oil, settled up 0.27 per cent to $78.50 a barrel. West Texas Intermediate, the gauge that tracks US crude, settled up 0.05 per cent to $74.66.
Brent has lost 2.8 per cent this week, while WTI was down 4.1 per cent.
“From the campaign, we knew that Donald Trump wanted lower oil prices to fight US inflation, but so far, his focus was on rising US crude production. Now, he asks Opec to help him. Also, if prices would fall from current levels, that would, in my view, not really support stronger US production growth,” Giovanni Staunovo, strategist at UBS, told The National.
“Opec+ target is and remains to keep the oil market in balance. So, supply additions would require lower non-Opec+ supply growth and/or supply disruptions.”
Mr Trump said in his virtual address to the World Economic Forum in Davos on Thursday that if oil prices came down, the Russia-Ukraine war would “end immediately”.
“Right now, the price is high enough that that war will continue. You've got to bring down the oil price,” he said.
Two weeks ago, the US and UK toughened sanctions on Russia’s energy industry, intensifying pressure on Moscow as the war in Ukraine nears its fourth year. The new measures, designed to hit Moscow's energy revenue that is fuelling its war machine, targets individuals and Russian entities, including Gazprom Neft and Surgutneftegas, both major players in the Russian oil industry.
“WTI and Brent crude oil prices have spent the past week drifting lower following a very strong start to the year that saw prices gain more than $10 on a combination of an exceptional cold winter temporarily lifting demand for heating fuels and diesel and, not least, the latest rounds of US sanctions on Russia’s oil industry, which went much further than expected,” said Ole Hansen, head of commodity strategy at Saxo Bank.
However, after a strong start, “the mood among crude oil traders has in the past few days shifted back to one of caution, with the focus now squarely on Washington and the increased uncertainty caused by a wave of Trump announcements following his inauguration”, he added.
Traders have also been keeping a close eye on what polices the Trump administration will institute in relation to Iran and trade. During his previous term in the White House, Mr Trump exerted maximum pressure on Iran to limit its energy exports.
“Against market expectations, global oil inventories have continued to decline amid strong compliance by Opec+ producers to the agreed quotas. Trump, meanwhile, has added to the supply-side risks with his desire to apply ‘maximum pressure’ to Iran while potentially cutting imports from Venezuela,” Mr Staunovo said.
He added that risks to oil prices remain skewed to the upside in the short term.
“US crude production stands at a record level, but the growth rate has slowed down in recent years. We expect modest US crude supply growth in 2025, as current prices don’t incentivise drilling more despite Trump’s ‘drill baby, drill’ mantra. Oil demand should grow in line with the long-term growth rate of 1.2 million barrels per day, with the oil market almost balanced this year,” Mr Staunovo said.
Mr Trump’s expectations of convincing the Opec to increase output needs to be made a reality for oil prices to significantly decline, said Vijay Valecha, chief investment officer at Century Financial.
"Maintaining the right price balance would be crucial even for his vision of increased US oil productions, as falling oil prices could act as an obstacle for domestic producers as well," he told The National.
"A way for the group to maintain balance could be gradually increasing production, lower than what was initially planned, while maintaining the right supply-demand dynamics."
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Four tips to secure IoT networks
Mohammed Abukhater, vice president at FireEye in the Middle East, said:
- Keep device software up-to-date. Most come with basic operating system, so users should ensure that they always have the latest version
- Besides a strong password, use two-step authentication. There should be a second log-in step like adding a code sent to your mobile number
- Usually smart devices come with many unnecessary features. Users should lock those features that are not required or used frequently
- Always create a different guest network for visitors
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
More on animal trafficking
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
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”.
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Graduated from the American University of Sharjah
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Enjoys travelling, reading and horse riding
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