Economy
Oil rises 4% on supply cut threats, still set for weekly drops
Oil prices rose about 4% on Friday, upheld by real and threatened cuts to supply, despite futures posting a second weekly decline as aggressive interest rate hikes and China’s Covid-19 curbs weighed on the demand outlook.
Russian President Vladimir Putin has threatened to stop oil and gas exports to Europe if price caps are imposed and a small cut to OPEC+ oil output plans announced this week also supported prices.
Brent crude rose $3.69, or 4.1%, to settle at $92.84 a barrel. US West Texas Intermediate (WTI) crude rose $3.25, or 3.9% to settle at $86.79 a barrel.
“Throughout the next few months, the West will have to contend with the risk of losing Russian energy supplies and oil prices soaring,” said Stephen Brennock of oil broker PVM.
Pressured by worries about a recession and demand, Brent is down sharply from a surge in March close to its all-time high of $147 after Russia invaded Ukraine.
The Group of Seven is trying to find ways to limit Russia’s lucrative oil export revenue in the wake of the invasion. A price cap that G7 countries want to impose on Russian oil to punish Moscow should be set at a fair market value minus any risk premium resulting from its invasion of Ukraine, a US Treasury Department official told reporters on Friday.
Despite Friday’s bounce, both crude benchmarks were headed for a weekly drop, with Brent down about 0.2% on the week after at one point hitting its lowest since January. WTI posted a weekly decline of 0.1%.
If the US Federal Reserve is able to keep the unemployment rate below 5%, it can be aggressive in bringing down inflation but after that trade-offs will appear, Fed Governor Christopher Waller said on Friday.
The Fed should be aggressive with rate hikes while the economy “can take a punch,” he said.
A US Department Of Energy official said the White House was not considering new releases from the US Strategic Petroleum Reserve (SPR) at this time beyond the 180 million barrels that President Joe Biden announced months ago.
“The White House is backing off another release from the SPR,” said Phil Flynn, an analyst at Price Futures Group. “Looks like a lot of the fears the market had previously have gone away.”
US oil rigs fell five to 591 this week, their lowest since mid-June, energy services firm Baker Hughes Co said, as the growth in the rig count and production has slowed despite relatively high energy prices.
Meanwhile, the European Central Bank’s unprecedented rate hike of 75 basis points this week and more Covid-19 lockdowns in China have weighed on prices.
The city of Chengdu extended a lockdown for most of its more than 21 million residents on Thursday while millions more in other parts of China were told to shun travel during upcoming holidays.
Money managers cut their net long US crude futures and options positions by 3,274 contracts to 165,158 in the week to September 6, the US Commodity Futures Trading Commission (CFTC) said on Friday.
At least 20 Umrah pilgrims were killed and 29 injured in a horrific bus crash southwest of Saudi Arabia, according to Gulf News reports.
The passenger bus crashed into a bridge on Monday, overturned, and caught fire, killing 20 and injuring 29.
According to Saudi media, the accident occurred around 4pm on the 14 km-long Aqabat Shaar road in the Asir province, as the bus was traveling from Khamis Mushayt to Abha.
The road, according to Saudi Press Agency, cuts through mountains, and has 11 tunnels and 32 bridges. When the bus was making its way down a bridge it underwent a brake failure, which caused it to crash into a barrier at the end of the bridge, overturn and catch fire. About 29 other people were also injured in the accident, according to reports.
The Saudi civil defense and Red Crescent Authority teams rushed to the site of the accident and cordoned off the area.
The deceased and the injured have reportedly been transferred to nearby hospitals.
Greeting Bangladesh, the United Nations on Sunday (26th March) said Bangladesh has many accomplishments — extraordinary economic development, a significant cultural legacy, leadership on a global stage for climate-vulnerable countries, and immense generosity in welcoming and hosting nearly a million Rohingya refugees.
“The hospitality of Bangladesh’s diverse people is just one of the many facets of a country that my colleagues and I have been fortunate to experience every day,” UN Resident Coordinator in Bangladesh Gwyn Lewis said in a press statement on the occasion of the country’s Independence Day.
“On behalf of the United Nations, I warmly congratulate the people of Bangladesh on the 52nd anniversary of independence,” she said.
Over the last 52 years, Bangladesh has made impressive and remarkable achievements: evolving from a war-torn country to one of the leading economic powers in South Asia, standing at the threshold of upcoming graduation from least developed countries (LDCs) in 2026, and planned achievement of the sustainable development goals (SDG) by 2030, she said.
The UN fully supports Bangladesh’s commitments to economic and sustainable development and appreciates the strong and long-lasting relationship with Bangladesh and our shared values.
The constitution of the country, which was adopted even before Bangladesh had formally become a member of the United Nations in 1974, guarantees fundamental human rights. The right to freedom of speech, religion, movement and assembly, the right to speak one’s own language and other rights that are in line with the UN charter, said the UNRC.
“Wishing you all a Happy Independence Day!” — she concluded.
Bangladesh Prime Minister Sheikh Hasina & President M Abdul Hamid paid rich tributes to the Liberation War martyrs by placing wreaths at the National Memorial at Savar on the outskirts of Dhaka early on Sunday (26th March), marking the 53rd Independence and National Day.
The president first placed the wreath at the altar of the memorial followed by the prime minister.
After laying the wreaths, the president and the premier stood in solemn silence for some time as a mark of profound respect for the memories of the martyrs of the Great War of Liberation in 1971.
A smartly turned-out contingent drawn from Bangladesh Army, Navy and Air Force presented a state salute at that time while the bugles played the last post.
The head of the state and the head of the government also signed the visitors’ book kept on the memorial premises.
Flanked by her party leaders, Sheikh Hasina, also the president of the Awami League, paid glowing tributes to the Liberation War martyrs by placing another wreath at the National Memorial on behalf of her party.
Jatiya Sangsad Speaker Dr Shirin Sharmin Chaudhury, Chief Justice Hasan Foez Siddique, senior AL leaders, leaders of AL-led 14-party alliance and high civil and military officials, among others, were present there.
Later, the Jatiya Sangsad (parliament) speaker and the chief justice also paid homage to the martyrs by placing wreaths at the National Mausoleum.
Every year, March 26 brings the most tragic reminiscence of history’s blackest episode that heralded a nine-month bloody ordeal from the night of March 25, 1971, achieving the long-cherished independence on December 16 the same year at the cost of a sea of blood.
In the wake of the military crackdown by the then Pakistan occupation force, Father of the Nation Bangabandhu Sheikh Mujibur Rahman proclaimed the independence of Bangladesh through the then EPR (East Pakistan Rifles) wireless at 00-30 hours on March 26 (the night following March 25) in 1971 at his historic Road-32 residence at Dhanmondi in Dhaka.
The day is very auspicious and precious to the Bengali nation.
