BEIJING: Oil prices fell on Thursday as the US dollar strengthened following signs that the US Federal Reserve will tighten monetary policy in the world’s biggest oil user.
Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers. Dollar-denominated oil becomes more expensive for buyers using other currencies when the greenback gains.
Brent crude futures were down 57 cents, or 0.9 percent, to $89.18 a barrel at 0440 GMT, after earlier falling by as much as 1.1 percent to $89. Brent climbed 2 percent on Wednesday.
US West Texas Intermediate (WTI) crude futures were down 83 cents, or 0.9 percent, to $86.52 a barrel, after falling by as much as 1.2 percent to $86.34. WTI gained 2 percent in the previous session.
“It could be a strong US dollar at play after the Federal Open Markets Committee signalled rates will rise,” said Commonwealth Bank analyst Vivek Dhar.
The dollar rose on higher US Treasury yields, lifting the US dollar index, which measures the greenback against major peers, to 96.604, near five-week highs.
Crude prices surged on Wednesday, with Brent climbing to $90 a barrel for the first time in seven years, amid the tensions between Ukraine and Russia, the world’s second-largest oil producer, that has fanned fears of energy supply disruptions to Europe.
Commonwealth Bank’s Dhar echoed those concerns, listing that along with the omicron coronavirus variant not impacting oil demand as badly as initially feared and efforts by OPEC and its allies, known as OPEC+, to boost supply not materialising as supportive for oil prices.
OPEC missed its planned supply increase target in December, highlighting capacity constraints that are limiting supply as global demand recovers from the COVID-19 pandemic.
OPEC+ is gradually relaxing 2020’s output cuts as demand recovers from the demand collapse that year. But many smaller producers can’t raise supply and others have been wary of pumping too much in case of renewed COVID-19 setbacks.
“Continued supply challenges and mounting Russia-Ukraine tensions continue to support crude oil prices. It is down slightly today but I think it is nothing more than a technical move,” said Howie Lee, economist at OCBC in Singapore.
An increase in crude oil and gasoline inventories in the United States alleviated some of the concerns about supply.
Crude inventories rose by 2.4 million barrels in the week to Jan. 21 to 416.2 million barrels, compared with analysts’ expectations in a Reuters poll for a 728,000-barrel drop, the Energy Information Administration (EIA) said on Wednesday.
Gasoline stockpiles rose by 1.3 million barrels last week to 247.9 million barrels, the EIA said, the most since February 2021.
Oil falls as US Fed’s pending interest rate hike spooks investors
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Oil falls as US Fed’s pending interest rate hike spooks investors
- Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers
Qatar sees 81% surge in venture capital investment in 2025
RIYADH: Venture capital investment in Qatar rose 81 percent year on year in 2025 to 214 million Qatari riyals ($58 million), new figures show.
The annual venture capital report, issued by Qatar Development Bank in collaboration with research platform MAGNiTT, highlights the Gulf state’s growing role as an attractive investment hub in the Middle East and North Africa region.
It indicated that venture activity in 2025 was concentrated in early-stage deals, which accounted for 61 percent of total investment value.
This supports Qatar’s startup strategy aimed at building a knowledge-based economy, diversifying away from hydrocarbons, and achieving between 2 and 4 percent gross domestic product contribution from startups by 2033.
The strategy includes fostering innovation, creating 40,000 new jobs, and establishing Doha as a regional hub for fintech, artificial intelligence, sports tech, and sustainability.
Abdulrahman bin Hisham Al-Suwaidi, CEO of Qatar Development Bank, said: “At QDB, we continue our leading enabling role in venture capital in Qatar. Our direct and indirect investments and commitments through our investment arm have reached approximately 390 million riyals since its inception.”
He added: “We are also proud of the remarkable progress achieved by the private sector, whose participation, alongside international investors, constituted 86 percent of the total value of venture capital investments in the country.”
The CEO said QDB will continue strengthening Qatar’s regional and international standing as a destination for global investors and funds, supporting increased investment in priority sectors in line with the Third National Development Strategy 2024–2030.
Qatar ranked fourth in the Middle East and North Africa region in both deal count and total venture funding in 2025, representing about 5 percent of regional transactions, the report said. QDB’s investment arm was the country’s most active investor, participating in 11 of 33 recorded deals.
Fintech was the busiest sector by volume, accounting for 33 percent of transactions, up 22 percent from a year earlier, reflecting the impact of initiatives led by the Qatar Fintech Hub. Transport and logistics attracted the largest share of capital, raising 80 million riyals, a 716 percent increase driven by a small number of large transactions.
Philip Bahoshy, CEO and founder of MAGNITT, said: “The report demonstrates the significant progress made by the venture capital sector in Qatar during 2025, highlighting the remarkable development Qatar is witnessing annually within the regional and global investment and entrepreneurial community.”
He added: “This progress is evident both in terms of data and through the large-scale specialized events hosted by the country, most notably the Web Summit. QDB’s role in this regard is undeniable, as it has played a major role in supporting the venture capital ecosystem in Qatar.”
