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.
Aging population may hit US economy like 'ton of bricks'
US lawmakers are well-known for their saucy and colorful comparisons. Yet, oftentimes they reflect quite well the brutal reality. Nowadays, the world is facing rapid aging of the population. The US is very concerned about this issue. Commerce Secretary Gina Raimondo said that "America's aging demographics were going to hit the country 'like a ton of bricks'.
11:12 2021-07-30 UTC+00
Delta variant poses major risk to global economic recovery
The media is currently widely discussing the topic of the third wave of the pandemic. The new strain of coronavirus, its Delta variant, is spreading rapidly. Many experts have already called the Indian strain one of the biggest risks to global growth. Apparently, the world community has prematurely declared victory on COVID-19.This is why analysts around the world are voicing concerns.
11:07 2021-07-30 UTC+00
US dollar rallies as Fed downplays inflation concerns
The US dollar continues to show strong performance. The rapid pace of the US economic recovery as well as the risks posed by a devastating third wave of the coronavirus pandemic have contributed to stronger demand for the greenback.The value of the US dollar against a basket of six world currencies has almost reached its April high and is currently trading at 92.78. The euro lost 0.
14:47 2021-07-29 UTC+00
Oil for $100 and that’s it. If you don't like the forecast, forget it
Oil for $100 and that’s it. If you don't like the forecast, forget it Guardians are hereto guardians to take care of. Oil is under their wing, and nothing will happen to it. Even if the cartel decides to increase production by the end of the year, the market will remain in short supply, and prices will stay high. There will definitely be corrections, there is no way without it.
14:39 2021-07-28 UTC+00
US and Germany team up to ensure global prosperity and security
On July 21, US President Joe Biden and German Chancellor Angela Merkel reportedly signed the Washington Declaration, thus affirming the United States and Germany’s commitment to close bilateral cooperation in promoting peace, security, and prosperity around the world.
12:42 2021-07-28 UTC+00
China allegedly steals technology to increase global power
Former Conservative Party Leader Sir Iain Duncan Smith has warned that China’s "evil regime" is going to use any method at its disposal to increase its global power. He believes that China is currently using rather dubious methods to ensure it becomes a world leader in semiconductor technology.
14:43 2021-07-27 UTC+00