Trucks parked near crude oil tanks at Kinder Morgan's North 40 terminal. Chris Helgren/Reuters
Trucks parked near crude oil tanks at Kinder Morgan's North 40 terminal. Chris Helgren/Reuters

Oil gains on declining US stockpiles and geopolitical tensions



Oil extended gains as signs of declining US stockpiles pointed to healthy demand while investors weighed potential disruptions to supply because of global geopolitical tensions.

Futures in New York rose as much as 0.5 per cent after adding 2.5 per cent in the past three sessions. An industry report showed US inventories fell last week, with government data Wednesday forecast to show a fourth straight drop. Crude’s recent gains have been driven by fighting between the Iraqi government and Kurdish forces in the oil-rich Kirkuk region. The conflict’s ongoing and could stoke tensions outside the country’s borders.

The violence in Iraq is one of the geopolitical risks that the oil market is grappling with, and uncertainty is swirling over the impact of tensions between Iran and the US as well, Goldman Sachs said. The Arabian Gulf nation said it would support an extension of Opec output cuts to the end of 2018 and insisted its production plans will not be disrupted by the US president Donald Trump’s threats to ditch a nuclear deal that has boosted its exports.

“Fundamentals are quite strong at the moment, with robust demand that’s draining crude inventories and geopolitical risks adding a short-term impact on prices,” said Min Byungkyu, a global market strategist at Yuanta Securities in Seoul. “There’s a general expectation that Opec will extend the output curbs, but deeper cuts will be needed to more effectively drive up prices.”

West Texas Intermediate crude for November delivery rose as much as 28 cents to US$52.16 a barrel on the New York Mercantile Exchange and was trading at $52.04 as of 7:45am in London. Total volume traded was about 29 per cent below the 100-day average. Prices on Tuesday added 1 cent to close at $51.88, the highest since September 27.

Brent for December settlement rose as much as 43 cents, or 0.7 per cent, to $58.31 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $5.90 to WTI for December.

____________

Read more:

Oil surges as fighting in Kirkuk spooks market

Opec chief sees oil demand rising at 'healthy pace'

Are fears of a rising threat of disruption to oil industry justified?

____________

US inventories fell by 7.13 million barrels last week, the American Petroleum Institute was said to report. Data from the Energy Information Administration on Wednesday is forecast to show a 3.25 million-barrel slide.

While Iraq’s government is clashing with Kurdish forces in the north of the Opec nation, raising the prospect of output disruptions in the region, both sides have an incentive to keep oil flowing due to low production costs and “high revenue” available per barrel, according to Goldman.

The Iraqi government offensive was triggered by a non-binding Kurdish referendum on independence that was approved overwhelmingly in September and made more politically charged by the regional government’s decision to include Kirkuk, even though it lies outside the semi-autonomous Kurdish region. The area is home to the country’s oldest oilfield.

While Mr Trump’s administration has hardened its stance against Iran, there is still “high uncertainty” over whether the US will reimpose sanctions that could potentially curb the Middle East country’s crude supply, Goldman said.

Iran’s energy industry has recovered following the removal of sanctions early last year after an international agreement over its nuclear programme. Mr Trump refused to certify that Iran is in compliance with the deal, athough he did not repudiate the pact.

The US president’s statement was characterised by “chest-beating” and has “little or no effect” on the Islamic Republic’s oil plans, Amir Zamaninia, deputy minister for trade and international affairs at Iran’s oil ministry, said on Tuesday.

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

Hili 2: Unesco World Heritage site

The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
Liz%20Truss
%3Cp%3EMinisterial%20experience%3A%20Current%20Foreign%20Secretary.%0D%3Cbr%3E%0DWhat%20did%20she%20do%20before%20politics%3F%20Worked%20as%20an%20economist%20for%20Shell%20and%20Cable%20and%20Wireless%20and%20was%20then%20a%20deputy%20director%20for%20right-of-centre%20think%20tank%20Reform.%0D%3Cbr%3E%0DWhat%20does%20she%20say%20on%20tax%3F%20She%20has%20pledged%20to%20%22start%20cutting%20taxes%20from%20day%20one%22%2C%20reversing%20April's%20rise%20in%20National%20Insurance%20and%20promising%20to%20keep%20%22corporation%20tax%20competitive%22.%3C%2Fp%3E%0A

Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press

North Pole stats

Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

CREW
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERajesh%20A%20Krishnan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ETabu%2C%20Kareena%20Kapoor%20Khan%2C%20Kriti%20Sanon%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A