OPEC ready for deeper production cuts
Nowadays, due to the current situation in the oil market, major oil producers have to cut their production further. It is reported that OPEC decided to significantly reduce oil extraction. Another possible solution for the cartel is to extend the current agreement for three months. According to preliminary estimates, production restrictions can increase up to 400 thousand barrels per day. Tamir Gadban, Oil Minister of Iraq, said that this figure was discussed and settled as a result of careful assessment by the OPEC members. The cartel is ready for deeper output cuts, though to a lesser extent. Under the ongoing agreement, OPEC+ has to reduce oil production to 1.2 million barrels per day. According to OPEC, such measures make the market tighter and help maintain the current supply on the level beneficial to consumers. Some experts expect Saudi Arabia to persuade OPEC and its allies to extend the agreement until the mid-2020. This would help Saudi Aramco, the state-run petroleum company, to successfully conduct an IPO. The terms will be discussed at the next OPEC+ meeting on December 6. According to a Saudi oil advisor, the kingdom needs stable oil prices at no less than $60 per barrel.
As a result of plunging prices, national investors involved in Saudi Aramco’s IPO would face multiple financial risks. Moreover, rising tensions in the Middle East pose a threat to the oil market. However, the oil producers in the Middle East and Russia can compromise if OPEC manages to extend the agreement. Presenty, Saudi Arabia is ready to reduce its own production to the maximum due to the probable decrease in demand next year. However, it will be possible when other OPEC+ members terminate their obligations.
Chinese officials to visit Washington early in administration of Joe Biden
China is planning to send to the US its high-ranking people to settle important economic issues. The Chinese authorities have made such a decision amid hopes that President-elect Joe Biden will be open to new talks.The US-China relations entered a deadlock during the presidency of Donald Trump. The US aggressive policy led to a full-scale trade war between the countries.
14:59 2021-01-22 UTC+00
NYSE changes plan to delist Chinese companies
The shares of the Chinese telecom giants will not be removed from the New York Stock Exchange. Official sources report that the change in course happened after consultation with regulatory authorities that have not yet made a final decision on the ban. So, negotiations are still in progress. Three Chinese telecommunications companies, China Telecom Corp. Ltd., China Mobile Ltd.
14:56 2021-01-22 UTC+00
ECB sticks to growth projections despite new lockdowns
Most European analysts have come to terms with a grim outlook for the local economy in 2021. However, there are those who remain optimistic, hoping for a bright future.European Central Bank President Christine Lagarde is one of those who are not ready to give up. The regulator is sticking to its growth projections against all the odds. In December, the bank estimated a 3.
14:18 2021-01-22 UTC+00
Only Big Mac Index still believes in ruble
The majority of Russians, especially the older generation, still suspiciously look at McDonald's restaurants. Funny enough, the Big Mac Index is the only gauge where the US dollar still costs 23 rubles. The Big Mac index was invented in 1986 as a lighthearted guide to measuring the purchasing power parity between two currencies.
13:49 2021-01-22 UTC+00
Fed's Beige Book unveils slow recovery of US economy
According to the US Federal Reserve's Beige Book, the US economy has been expanding at a slower pace for some time. The employment level is mostly negative in almost all twelve federal states. There is no need to be an economic guru to understand that such a grim picture is due to the coronavirus pandemic and lockdowns across the country.
13:43 2021-01-22 UTC+00
Apple faces lawsuit for not removing Telegram from App Store
According to the Washington Post, nonprofit group Coalition for a Safer Web sued Apple, demanding that it remove Telegram, a controversial messaging app, from its App Store. In its lawsuit, filed at the US District Court for the Northern District of California, the Coalition refers to extremist conversations that flooded the messenger ahead of the US Capitol siege.
12:01 2021-01-22 UTC+00