Oil down on lower demand forecast, Greece crisis

Updated 14 November 2012
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Oil down on lower demand forecast, Greece crisis

The price of oil slipped to near $ 85 a barrel yesterday as the International Energy Agency lowered its forecast for oil demand and said global supplies were growing.
By early afternoon in Europe, benchmark oil for December delivery was down 44 cents to $85.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 50 cents to finish at $85.57 per barrel on the Nymex on Monday.
The IEA said in its monthly oil market report that it had cut slightly its expectations of how much oil the world will need this year to 89.6 million barrels a day, 80,000 barrels a day less than its forecast from a month ago, on persistent economic weakness in Europe and the impact of Hurricane Sandy in the US.
The Paris-based agency also said global oil supply rose 800,000 million barrels a day in October, to 90.9 million barrels a day, "as rebounding supplies from the Americas and the North Sea offset a slight decline in OPEC crude supplies."
The IEA also said that Iran's oil output had broken a string of seven straight months of declines as China and South Korea appeared to be importing more crude from the Islamic Republic. Iran has been hit by hard economic sanctions by the West over its nuclear program.
Crude oil prices were also affected by renewed uncertainty over debt crisis in the European Union.
Greece's international creditors failed to agree Monday on how to get the country's bailout program back on track. They will meet again on Nov. 20 to continue discussing the release of the next batch of rescue loans totaling € 31.5 million ($ 40 billion).
The European Central Bank, the International Monetary Fund and the European Commission have twice agreed to bail out Greece, pledging a total of € 240 billion in rescue loans. The country has received about €150 billion of those loans so far.
Meanwhile, the U.S. still appears headed for the so-called fiscal cliff — a combination of tax hikes and government spending cuts that will take effect Jan. 1 unless President Barack Obama and Congress can reach a compromise to avert it. Economists believe that would hurt growth in the world's largest economy and possibly risk a recession.
In London, Brent crude, used to price international varieties of oil, was down 85 cents to $108.23 a barrel on the ICE Futures exchange.
Among other energy futures on the New York Mercantile Exchange:
— Heating oil was down 1.52 cents to $2.984 per gallon.
— Gasoline futures dropped 1.38 cents to $2.625 per gallon.
— Natural gas was up 2.9 cents to $3.599 per 1,000 cubic feet.


Qatar Airways confirms ‘substantial’ annual loss, blames row with regional neighbors

Updated 25 April 2018
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Qatar Airways confirms ‘substantial’ annual loss, blames row with regional neighbors

ANTALYA, Turkey: Qatar Airways made a “substantial” loss in its last financial year because of a regional dispute that has banned the airline from four Arab countries, its chief executive said on Wednesday without revealing the extent of the losses.
Qatar Airways has been blocked from flying to 18 cities in Saudi Arabia, the United Arab Emirates, Bahrain and Egypt since June when those countries cut ties with Qatar, accusing it of supporting terrorism. Doha denies the charges.
“We have increased our operating costs. We had to also take a hit on revenues so we don’t think that our results for the last financial year will be very good,” Chief Executive Akbar Al-Baker told reporters at the Eurasia Airshow in Antalya, Turkey.
“I don’t want to say the size of the loss but it was substantial.”
Other parts of the business were profitable though that was not enough to make up for the airline loss, Baker said.
Qatar Airways has several subsidiaries including airport ground handling services and catering units.
The airline had warned of the loss for several months.
The state-owned airline will need another eight weeks to finalize its books and make adjustments before it announces its financial results for the year to March 31, Baker said.
Qatar Airways made 1.97 billion Qatari riyals ($541 million) profit in its previous fiscal year.
Neighboring Saudi Arabia and the UAE were popular routes for Qatar Airways, which has also been banned from the airspace of the four boycotting states.