Oil prices plunged nearly 4 per cent on Monday as Saudi Arabia cut the official selling prices for its oil by the most in more than two years ahead of a production boost scheduled for next month.
Saudi Aramco, the world’s leading oil exporting company, on Sunday slashed crude oil prices for Asian buyers for May, after the Opec+ alliance of oil-producing countries on Thursday announced larger-than-expected output increase in a surprise move.
The group said it will add 411,000 barrels a day to the market next month, rather than 137,000 bpd as earlier announced.
Brent, the benchmark for two thirds of the world’s oil, was down 3.78 per cent at $63.10 a barrel at 12pm UAE time on Monday. West Texas Intermediate, the gauge that tracks US crude, was 3.95 per cent lower at $59.54 a barrel.
“Opec+ continues to highlight flexibility and the actual supply increase could eventually be much less than outlined. Demand conditions will be essential, and actual adherence to the compensation plans,” Monica Malik, chief economist, Abu Dhabi Commercial Bank, told The National.
“The GCC remains less impacted than other EM [emerging market] economies, providing a comparative advantage.”
The intensifying trade war and concerns it could lead to a global recession and dent crude demand, also dragged oil prices lower. Crude plunged to its lowest levels in more than three years on Friday, as China hit back against US President Donald Trump's tariffs with its own additional levies on US goods.
“The barrel of US crude lost more than 6 per cent last Friday and tipped a toe below the $60 per barrel level this morning as Saudi Arabia cut its oil price to Asia to a four-month low on rising recession odds,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The outlook remains “comfortably negative with the possibility of a further fall toward the $50 per barrel level”, she added. “Price recoveries could be interesting top selling opportunities”
The drop of 17 per cent in crude prices over the last five sessions, is "enormous even for a volatile asset like crude oil", Vijay Valecha, chief investment officer at Dubai-based Century Financial, said.
“Oil prices are currently suffering from the double whammy of possible surplus gluts, based on the latest Opec decision and the expectations of a significant drop in demand due to the possibility of a global recession,” he told The National.
“With the ongoing market sell-off happening at a frenzied pace, the probability of a global recession rises with each passing day.”
Swiss lender UBS expects volatility in crude markets to remain stay high in the short term.
“With financial markets in panic mode, oil prices are likely to stay volatile in the near term. But we retain our constructive outlook, as the oil market is undersupplied and demand growth remains healthy,” Giovanni Staunovo, strategist at UBS, said in a recent research note.
On Friday, US Federal Reserve chairman Jerome Powell said that Mr Trump’s larger-than-expected tariffs could drive up inflation and weaken economic growth, but maintained that the central bank is not rushing to cut interest rates.
“Oil and gas imports to the US have been exempted from the new round of tariffs. That said, global energy consumption is likely to take a hit if the global economy slips into a recession,” BMI, a Fitch Solutions company, said in a research note.
“For oil, this would be exacerbated by supply additions from Opec+ and non-Opec producers that are forecast for 2025.”
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
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
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The biog
Name: James Mullan
Nationality: Irish
Family: Wife, Pom; and daughters Kate, 18, and Ciara, 13, who attend Jumeirah English Speaking School (JESS)
Favourite book or author: “That’s a really difficult question. I’m a big fan of Donna Tartt, The Secret History. I’d recommend that, go and have a read of that.”
Dream: “It would be to continue to have fun and to work with really interesting people, which I have been very fortunate to do for a lot of my life. I just enjoy working with very smart, fun people.”
