Fall in oil prices reflects fears over economic slowdown

Crude prices continued to slide despite the first drawdown on US crude stocks in several weeks. Above, a maze of crude oil pipes and valves at the Strategic Petroleum Reserve in Freeport, Texas (Reuters)
Updated 02 June 2019

Fall in oil prices reflects fears over economic slowdown

  • Markets found themselves torn once again between supply fears and a looming economic slowdown
  • OPEC’s oil production dropped to a four-year low of 30.17 million barrels per day (bpd) in May

RIYADH: The downward movement in oil prices last week seemed unjustified given the current strong market fundamentals, as markets found themselves torn once again between supply fears and a looming economic slowdown. The Brent crude price closed the week closer to $60 per barrel.
OPEC’s oil production dropped to a four-year low of 30.17 million barrels per day (bpd) in May, according to a Reuters survey, with exports from Iran tumbling to around 400,000 bpd.
Crude prices continued to slide despite the first drawdown on US crude stocks in several weeks. Prices mostly dip on macroeconomic growth concerns, with the US-China trade dispute continuing to overshadow sentiment on the global oil markets.
However, Chinese crude oil imports hit a record 10.2 million bpd, marking a massive increase of 1.2 million bpd year-on-year, tempering concerns over the impact of a trade war on the global economy and oil demand.
One of the main reasons that no oil shortages have materialized yet is that Asia refiners have already shut down 2-3 million bpd of refining capacity for planned maintenance, which will continue throughout June. This seasonal maintenance contributed to relatively lower demand.
Since Asian refiners buy almost 60 percent of their crude intake from the Arabian Gulf, relative prices for sour crudes have been robust. After those facilities’ initial runs on mostly light sweet crude oil from the US shale exports, they began taking more sour medium crude as upgrading units have gone into service.

  • Faisal Mrza is an energy and oil market adviser. He was formerly with OPEC and Saudi Aramco. Reach him on Twitter: @faisalmrza

Virus sees Booking.com slash quarter of global staff

Updated 04 August 2020

Virus sees Booking.com slash quarter of global staff

  • The company warned that “up to 25 percent” of employees could go in what it called an “extremely difficult step”
  • Booking.com’s Amsterdam headquarters was expected to be among the sites affected

THE HAGUE: Online travel agency Booking.com said Tuesday it will cut up to a quarter of staff worldwide due to the ongoing coronavirus pandemic, leading to thousands of job losses.
The Amsterdam-based booking site, which employs around 17,500 people around the world, declined to give an exact number of posts that will be slashed, saying details would become clearer “in the coming weeks and months.”
But it warned that “up to 25 percent” of employees could go in what it called an “extremely difficult step.”
“The Covid-19 crisis has devastated the travel industry, and we continue to feel the impact as travel volumes remain significantly reduced,” the company said in a statement sent to AFP.
“While we have done much to save as many jobs as possible, we believe we must restructure our organization to match our expectation of the future of travel,” it added.
Booking.com’s Amsterdam headquarters was expected to be among the sites affected, Dutch media reports added.
Hard-hit by the slowdown in international travel resulting from the lockdown, Booking.com follows in the footsteps of other digital travel sites such as Airbnb and TripAdviser, which have also laid off around 25 percent of their workforce.
Booking.com applied in April for state support.
Last month it received some 61 million euros ($71.8 million) from the Dutch state, making it the third-largest recipient of support behind flagship airline KLM and Dutch Rail (NS), the ANP national news agency reported.
Founded in 1996, Booking.com has some 28 million listings on its website which is available in 43 languages.