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The price of oil rises as Saudi Arabia promises a supply cut – business live | business



Energy Minister Saudi Khalid al-Falih (R) and OPS General Secretary, Mohammed Barkindo, spoke to journalists during a meeting of the Joint Monitoring Committee in the Emirate capital of Abu Dhabi.

Saudi Minister of Energy Saudi Khalid al-Falih (R) and OPS General Secretary, Mohammed Barkindo, spoke to journalists during a meeting of the Joint Monitoring Committee in the capital of Emirati, Abu Dhabi yesterda Photograph: Karim Sahib / AFP / Getty Images

It has been a good morning, and welcomes our rolling attention of the economy, the world, the financial markets, the eurozone and business.

The oil price is raining this morning after Saudi Arabia announced that it would break oil production next month, by half a million barrels a day.

That is taken as a sign that an oil cartel Opec could publish a co-ordinated cut in its December meeting, in an attempt to raise prices.

Saudi Minister of Energy Saudi Khalid Al-Falih told reporters on Sunday in Abu Dhabi:


"We as responsible producers are going to work, and work hard, to balance the market within a reasonable corridor,"

Al-Falih argued that the demand for Saudi oil "disappeared" due to seasonal factors, which means that the largest oil producer in the world should get smaller.

Al-Falih spoke at a joint meeting of Opec and non-Opec oil ministers, and the markets have been quick to take the suggestion:

Brent's crack has jumped almost 2% this morning to $ 71.55 per barrel, while New York cradle is 1.3% higher at $ 61 / barrel.

That's after weeks of steady decline – Brent's crude was trading over $ 86 per barrel in early October, before the fears of slowing down global growth.

Anas Alhajji
(@anasalhajji)

Oil prices have responded to the Saudi production cut announcement, If this break of Saudi and the possibility of OPEC breaking early next year will change the feeling of hedge funds and money managers, prices could earn up to $ 7 / b. This will bring us to around $ 78-79 / b for #Brent. #oil #Price pic.twitter.com/LYJNpNEfSx


November 12, 2018

Higher oil prices will help Saudi balance their budgets, at a time when Riyadh continues under heavy diplomatic pressure following the Jamal Khashoggi murder.

But it will be a blow to global consumers, buying petrol prices on the front court and transport costs in general.

Stephen Innes of an OANDA trading company says that oil is "the most hot topic" in today's markets.


Recent price slides have far reaching implications across all asset classes

He believes that next month's Opec meeting will be essential:


OPEC customers do not welcome oil prices above $ 80, and that seems to be a similar consensus among OPEC + and US producers.

However, producers are concerned that the latest sales frenzy could see Brent oil reaching $ 60 or below. Therefore, OPEC best suites the current supply glut …

But where oil prices are next headed, ultimately depends on the producers.

Also ends today

The pound will be under pressure, as Theresa May continues to fight to reach the Brexit agreement. Time – never a product

RANsquawk
(@RANsquawk)

Bwlch -GBP / USD is lower to 1.2900 after reports that May May cancel an emergency cabinet meeting that will reduce the likelihood of an EU summit later this month


November 12, 2018

Italy will also focus, with the output of a new factory output out this morning. Rome is still under pressure from Brussels to reform its 2019 budget, and it will definitely not be.

European stock markets are expected to raise at least 0.5% open.

IGSquawk
(@IGSquawk)

European Opening Calls:#FTSE 7158 + 0.74%#DAX 11584 + 0.48%#CAC 5128 + 0.42%#MIB 19315 + 0.29%#IBEX 9194 + 0.65%


November 12, 2018

The agenda

  • 9am GMT: Italian industrial production for September


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