Oil prices gave up early gains on Wednesday as a soaring dollar and global recession fears offset worries about a Russian military mobilization.
A big increase in U.S. crude stocks could also weaken oil prices. Analysts forecast U.S. crude stocks rose 2.2 million barrels last week.
On Tuesday, data from the American Petroleum Institute (API) industry group showed crude stocks rose 1.0 million barrels in the week to Sept. 16.
Brent futures were 10 cents, or 0.1pc, lower at $90.52 a barrel by 10:13 a.m. EDT (1413 GMT), while U.S. West Texas Intermediate (WTI) crude fell 28 cents, or 0.3pc, to $83.66.
Both contracts were up more than $2 earlier in the session.
Putin said he had signed a decree on partial mobilisation, saying he was defending Russian territories and that the West wanted to destroy the country.
“The oil complex (advanced) largely off Putin’s apparent escalation of the Ukraine war,” analysts at energy consulting firm Ritterbusch and Associates said, noting the strong dollar and expected higher U.S. interest rates will limit oil price gains.
Oil prices soared to a multi-year high in March after the Ukraine war broke out. European Union sanctions banning seaborne imports of Russian crude will come into force on Dec. 5.
Investors this week have been bracing for another aggressive interest rate hike from the U.S. Federal Reserve that they fear could lead to recession and plunging fuel demand.
The Fed is widely expected to hike rates by 75 basis points for the third time in a row later on Wednesday in its drive to rein in inflation.
The dollar was on track for its highest close against a basket of other currencies in over 20 years. A strong dollar reduces demand for oil by making the fuel more expensive for buyers using other currencies.
Signs of a recovery in Chinese demand, hit by COVID-19 shutdowns, had also helped lift prices earlier in the session.
At least three Chinese state oil refineries and a privately run mega refiner are considering increasing runs by up to 10pc in October from September, eyeing stronger demand and a possible surge in fourth-quarter fuel exports, people with knowledge of the matter said.
Meanwhile, the United States said that it did not expect a breakthrough on reviving the 2015 Iran nuclear deal at this week’s U.N. General Assembly, reducing the prospects of a return of Iranian barrels to the international market.
The OPEC+ producer grouping – the Organization of the Petroleum Exporting Countries and associates including Russia – is now falling a record 3.58 million barrels per day short of its production targets, or about 3.5pc of global demand. The shortfall highlights the underlying tightness of supply in the market.
Bangladesh’s Reserves Surge by 37 Crore Dollars
In a week, Bangladesh’s foreign currency reserves have increased by an impressive USD 37.69 million, according to the latest data from the International Monetary Fund (IMF) based on the reserve accounting method. The country’s foreign currency reserve now stands at USD 20.57 billion (BPM6), a significant surge of USD 2 thousand 57 crore 31 lakh 80 thousand.
Simultaneously, the total reserves, including foreign currency and those held in various funds, have reached USD 25.76 billion, marking a notable increase of USD 576 crore 51 lakh 90 thousand.
These statistics were revealed in the weekly selected economic indicators by the Bangladesh Bank on Thursday, February 29.
The report indicates a decrease in reserves by USD 63 crore 5 lakh 10 thousand within a month. At the beginning of February, the reserves amounted to USD 1 thousand 994 crore 26 lakh 70 thousand (BPM6).
However, after accounting for the inflow of dollars from the International Monetary Fund, Asian Development Bank (ADB), and South Korean loans, the reserves surpassed the USD 20 billion mark. The Asian Clearing Union and other import payments further impacted the reserves, bringing them below the USD 20 billion threshold.
In August 2021, the country witnessed a historic high in foreign currency reserves, reaching USD 48 billion. Since then, the central bank has sold approximately USD 29 billion to alleviate the dollar crisis.
Bank officials suggest that with the commencement of the new government’s journey in January, there is an optimistic outlook for the gradual resolution of the dollar crisis. This positive development is expected to alleviate the pressure on reserves. Despite the current rate of USD 122-123 per dollar, some individuals are still facing difficulties in obtaining the desired dollars.
Banking authorities anticipate that as the government’s initiatives gain momentum, there will be a gradual improvement in the dollar crisis, resulting in reduced pressure on reserves.
Bus Operators Struggle as Dhaka Metro Gains Popularity
Dhaka’s ambitious Metro Rail service, connecting Uttara to Motijheel, has significantly disrupted the traditional public transport ecosystem, particularly affecting bus services along the Mirpur-Agargaon-Farmgate-Paltan route. The introduction of this modern transit option has resulted in a substantial decrease in bus ridership, with operators reporting a 30-40% decline in the number of buses on this route.
Transport proprietors anticipate a further decrease in bus numbers as the warmer months approach, predicting that the allure of the metro’s air-conditioned comfort will attract even more commuters away from buses. The waning appeal of buses, once a primary choice for Dhaka’s commuters, is particularly noticeable during peak metro operational hours, despite a visible reduction in traffic congestion.
The potential extension of metro rail service hours beyond the current 7:10 am to 8:40 pm timeframe threatens to intensify the financial strain on bus operations, prompting owners to contemplate rerouting their fleets or selling them off. Md Shahjahan, Managing Director of Shikhor Paribahan, highlighted the scale of the downturn, stating, “From a daily tally of 500-600 buses, we’ve plummeted to just 300-400 buses on the Mirpur-Agargaon-Farmgate-Paltan route.”
Shikhor Paribahan, previously operating up to 90 buses daily, has seen its fleet reduce to 60-65. Similarly, Bikalpa Auto Service has halved its operations, from 40-50 buses to merely 20-25, according to Managing Director Mahbubur Rahman. This trend has left employees like Aminul Islam, a bus helper for Shikhor Paribahan, concerned about their livelihoods as passenger numbers dwindle.
While CNG-run autorickshaws and bike ride-sharing services have also felt the competitive pressure from the metro rail, their income reductions have been less severe. However, for commuters like Ashraful Alam, the metro’s efficiency outweighs any cost savings offered by buses, with the metro rail dramatically reducing his travel time to Motijheel.
Abu Raihan Md Saleh, Joint Commissioner (Traffic North) of the Dhaka Metropolitan Police (DMP), acknowledged the positive impact of the metro rail on traffic flow and discipline along the Mirpur-Motijheel route. He added that traffic movement has become faster on the Uttara-Airport-Mohakhali route due to metro rail services and the opening of the Elevated Expressway, despite congestion persisting in other parts of the city.
Prime Minister Sheikh Hasina’s phased inauguration of the metro rail’s sections – the Uttara-Agargaon segment in December 2022 and the Agargaon-Motijheel section in November 2023 – has ushered in a new era of commuting in Dhaka. With extended operational hours implemented since January 2024, the metro offers a 30-minute commute from Uttara to Motijheel, providing a compelling alternative to traditional bus travel amid Dhaka’s notorious traffic congestion.
IEBA, WEC Sign MoU to Drive Ethnosport Growth in Bangladesh
The World Ethnosport Confederation (WEC) and the International Ethnosport Bangladesh Association (IEBA) have entered into a memorandum of understanding (MoU) to foster the promotion and expansion of ethnosports and games within the country.
Necmeddin Bilal Erdoğan, the president of the Confederation, signed the MoU on behalf of the World Ethnosport Confederation, while Md Al Mamun, the founder and general secretary of the Association, signed on behalf of the International Ethnosport Bangladesh Association.
Md Al Mamun, the Founder and General Secretary of the International Ethnosport Bangladesh Association, recently attended the 6th Ethnosport Forum in Antalya, Türkiye. The invitation came from the President of the World Ethnosport Confederation, Nekmettin Bilal Erdogan, and the Minister of Youth and Sports of Türkiye, Osman Aşkın Bak.
The signing of the MoU took place during this forum, as stated in a media release on Wednesday.
The event gathered delegations from 75 countries, including Youth and Sports Minister of Türkiye Osman Aşkın Bak, Youth and Sports Minister of Azerbaijan Farid Gayibov, Sports Minister of Russia Oleg Vasilyevich Matytsin, Sports Minister of Uzbekistan Adkham Ikramov, Culture, Information, Sports, and Youth Policy Minister of Kyrgyzstan Maksutov Altynbek Askarovich, and Sports, Youth, and National Services Minister of Namibia Agnes Basilla Tjongarero.
During the forum, Russian Sports Minister Oleg Vasilyevich Matytsin proposed hosting the next 7th Ethnosport Forum in Russia. World Ethnosport Confederation President Necmettin Bilal Erdoğan agreed to this proposal and extended an invitation to all attendees for the 7th Ethnosport Forum in Russia.
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- Bangladesh’s Reserves Surge by 37 Crore Dollars
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- Bus Operators Struggle as Dhaka Metro Gains Popularity
- Turnover Surges Amidst Negative Indices
- Dhaka Tops Global Air Quality List
- PM Sheikh Hasina Optimistic About Stable Ramadan Prices for Essential Goods
- US Advocates for Palestinian Access to Al-Aqsa
- IEBA, WEC Sign MoU to Drive Ethnosport Growth in Bangladesh