The decision by the United States last week to lift a 40-year ban on oil exports will not affect the global balance of supply and demand, according to the UAE Energy Minister.
“It is the right of any country to make its own decisions,” said Suhail Al Mazrouei. “We don’t think this will change the supply and demand balance.”
Oil prices hit 11-year lows on Monday following the news that the US would allow exports of oil after over four decades. Brent crude, the international benchmark, fell to about US$36 a barrel.
Mr Al Mazrouei said that it was important to give the market breathing space so that it could adjust itself.
“We hope that the market will stabilise during [next year]. Is it at the end of the year or middle of the year – we have to wait,” he said.
But the resumption of US oil exports remains some way from becoming viable.
“The reality is that at current prices, there will be no exports,” said Amrita Sen, the chief oil analyst at UK-based Energy Aspects.
The company believes that West Texas Intermediate, another oil benchmark, will need to be at least $4 below the price of Brent to justify exports. “It will not be an overnight change and it won’t be economical at current price levels,” Ms Sen said.
Other obstacles remain in order for the US to begin exporting, such as transportation costs of getting the commodity to ports for shipping.
In addition, Ms Sen pointed to how none of the ports in the country have the loading capacity to accommodate the very large crude carriers (VLCCs).
On top of this, the US may face internal challenges. During the past 40 years, the US Gulf Coast’s dock infrastructure has been used to receive rather than deliver.
Energy Aspects said that reversing this process would likely require significant logistical alterations to pipelines, docking practices and storage tanks.
“Many midstream firms have been gearing up for crude and condensate exports from the US Gulf for some time and, given the large decline in US imports over the last few years, dock overcapacity exists today that could probably be repurposed fairly quickly, but not overnight,” the company said in a report.
dalsaadi@thenational.ae
lgraves@thenational.ae
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Zayed Sustainability Prize
Places to go for free coffee
- Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day.
- La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
- Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
- Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
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Power: 325bhp
Torque: 450Nm
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Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2
The President's Cake
Director: Hasan Hadi
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Rating: 4/5
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
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iPhone XR
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Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
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EXPATS
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
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The specs
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
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World’s largest 360-degree projection surface
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Why seagrass matters
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The specs: 2017 Lotus Evora Sport 410
Price, base / as tested Dh395,000 / Dh420,000
Engine 3.5L V6
Transmission Six-speed manual
Power 410hp @ 7,000rpm
Torque 420Nm @ 3,500rpm
Fuel economy, combined 9.7L / 100km
Scoreline:
Cardiff City 0
Liverpool 2
Wijnaldum 57', Milner 81' (pen)
England's Ashes squad
Joe Root (captain), Moeen Ali, Jimmy Anderson, Jofra Archer, Jonny Bairstow, Stuart Broad, Rory Burns, Jos Buttler, Sam Curran, Joe Denly, Jason Roy, Ben Stokes, Olly Stone, Chris Woakes.
SPEC SHEET
Display: 10.9" Liquid Retina IPS, 2360 x 1640, 264ppi, wide colour, True Tone, Apple Pencil support
Chip: Apple M1, 8-core CPU, 8-core GPU, 16-core Neural Engine
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Video: 4K @ 25/25/30/60fps, full HD @ 25/30/60fps, slo-mo @ 120/240fps
Front camera: 12MP ultra-wide, f/2.4, Smart HDR, Centre Stage; full HD @ 25/30/60fps
Audio: Stereo speakers
Biometrics: Touch ID
I/O: USB-C, smart connector (for folio/keyboard)
Battery: Up to 10 hours on Wi-Fi; up to 9 hours on cellular
Finish: Space grey, starlight, pink, purple, blue
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Director: Peyton Reed
Starring: Paul Rudd, Evangeline Lilly, Michael Douglas
Three stars
