Oil prices jumped on Friday but retreated to settle lower as mixed US economic data offset concerns over drone attacks against Opec member Iraq that raised supply concerns and after the EU approved more sanctions against Russia.
Brent, the benchmark for two thirds of the world's oil, closed 0.35 per cent lower at $69.28 a barrel. West Texas Intermediate, the gauge that tracks US crude, retreated 0.30 per cent to $67.34 a barrel. Intraday gains peaked at about 1.5 per cent.
Oil prices have trended upwards since May, peaking on June 19 after Israel attacked Iran, but they have fallen since then.
For the week, both benchmarks were down about 2 per cent. Year-to-date, Brent is down more than 6 per cent, while WTI has shed 7.8 per cent.
Conflicts in the Middle East have been among the main drivers of global oil market volatility in recent months, and the drone attacks in Iraq are part of the trend, Strikes on Iraqi crude centres have removed an estimated 140,000 to 150,000 barrels a day from global supply.
On Thursday, an explosive-laden drone struck an oilfield in the Iraq's semi-autonomous Kurdish region − the latest in a series of attacks this month. Another drone fell in a village outside Erbil, the capital of Kurdistan Region.
Futures “continued to find support in the supply disruptions in the Middle East … the market remains sensitive to geopolitical risks, with price movements contingent on the pace of production recovery”, said Li Xing, a financial markets strategist consultant at Cyprus-based broker Exness.
Demand, however, has been reinforced by growing global consumption and seasonal factors, including increased summer travel in the Northern Hemisphere and higher refinery activity in Asia, but this strength “could wane as the summer ends, potentially limiting further price appreciation”, Ms Li added.
Meanwhile, the EU on Friday approved more sanctions on Russia over its war with Ukraine, targeting its banking and oil sectors.
This latest instalment of curbs include, in particular, restrictions on fuel products made from Russian petroleum and a revised oil price cap that is now set at 15 per cent below market rates. It would also affect a fleet of ships that transport Russian oil, in addition to cutting off Russian banks from the Swift international payment network.
The sanctions are aimed at curbing Russia's energy sector, which is a leading revenue stream for the world's third-biggest producer of crude oil and, along with Saudi Arabia, leaders of the Opec+ alliance of oil producing nations.
This revised oil price cap “has been specifically designed to further reduce Russia's revenue, while keeping global energy markets stable through continued supplies”, said the European Commission.
However, US economic data released on Friday offset these concerns. Government data showed that while US economic sentiment rose in early July, expectations for inflation targets continued to drop.
Also, homebuilding, home purchases and residential investment all dropped in June, amid uncertainty in the world's largest economy.
In addition, while supply concerns amid continuing trade geopolitical uncertainties continue to support prices, Opec has also raised its forecast for world oil and energy demand for the medium and long term.
The producers' group, however, has cut oil demand projections for the next four years on account of economic slowdown in China, the world's second largest economy and leading crude importer.
Global oil demand is projected to expand by nearly 19 per cent to reach 123 million barrels a day by 2050, Opec said in its latest World Oil Outlook 2050 report.
In the medium term, oil demand is projected to increase by 9 per cent to 113.3 million bpd by 2030, from 103.7 million bpd in 2024.
Overall energy demand in the long term is expected to increase by 23 per cent to reach 378 million barrels of oil equivalent per day by 2050, the oil production group said.
However, it reduced its oil demand forecast for next four years over concerns of Chinese demand.
Zayed Sustainability Prize
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)
On sale: Now
More from Rashmee Roshan Lall
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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.
Global state-owned investor ranking by size
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Canada
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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)
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
