Expansion in UAE’s non-oil private sector keeps going

vienna — Operating conditions in the UAE non-oil private sector remained in expansion territory in September, even improving from August’s strong performance, according to the Opec’s Monthly Oil Market Report for October.

Citing the Emirates NBD Purchasing Managers Index, the Opec said the index posted 55.3 in September, up from 55.0 in August.

“This signals a steady expansion in the non-oil private sector in the third quarter of 2018. Year-to-date, the PMI has averaged 55.7, similar to the same period last year,” said the report.

With regards to crude prices, the report said that the Opec reference basket increased sharply by almost 7 per cent, or $4.92 month-on-month, to average $77.18 per barrel — the highest since October 2014.

“Crude oil futures prices also increased for the month, mainly supported by geopolitical tension, growing concerns over a shortage in global oil supply and low US oil inventories,” the report said.

The global economic growth forecast for 2018 was revised down slightly by 0.1 percentage point to now stand at 3.7 per cent, due mainly to slowing growth in some emerging and developing economies, said the report, adding that the 2019 forecast remains unchanged at 3.6 per cent.

“In 2018, world oil demand growth is estimated at 1.54 mb/d, following a downward revision of around 80 tb/d from the previous month’s assessment, mainly to reflect the most up-to-date data in OECD Europe and the Middle East, as well as the latest developments in the economies of Latin America,” the report added. —