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.
Fed sees grave risks of US business failures
US Federal Reserve officials believe that numerous national companies may go bankrupt in the near future. Despite an economic recovery in the country, low interest rates and other factors pose a serious threat to most enterprises.Even if the economic outlook improves, the risk that the United States could face a new wave of business failures will be still high.
11:05 2021-03-08 UTC+00
Biden to spend long time dealing with unemployment
US President Joe Biden will have to take a lot of efforts to combat unemployment. The fact is that the lion’s share of ordinary people have to apply for unemployment benefits.Although at the end of the previous year, the US labor market situation was somehow improving, new restrictive measures imposed in various states have slowed down the recovery.
13:41 2021-03-05 UTC+00
JPMorgan: coronavirus pandemic to end soon
According to the calculations of JPMorgan, the end of the COVID-19 pandemic is already in sight. Analysts think that it will ebb away completely within two months.JPMorgan experts are optimistic about future prospects as they are betting on impressive vaccination results. The mass vaccination is expected to curb the spread of the virus across the world thus reducing the number of new cases.
13:28 2021-03-05 UTC+00
Italy’s mafia finds new ways to gain from pandemic crisis
The typical image of a mafioso is associated with criminal collisions, bribes to officials, and cruel competition with rivals. Yet, it is just a banal image. Italy’s mafia has proven more than once that it is not just a criminal syndicate, it is a cluster of close-knit groups working together as a family. Italy’s mafia has survived many economic downfalls in the country.
07:01 2021-03-05 UTC+00
Russia’s Finance Ministry cut share of US dollar and euro in NWF
Russia’s Ministry of Finance has been actively promoting the idea of the de-dollarization. At the same time, it also intends to reduce the influence and use of the euro. The Finance Ministry has already cut the share of the US dollar and the euro in the National Wealth Fund.
06:51 2021-03-05 UTC+00
Holding over 80% of BTC value, crypto whales rattle market
A stunning rally in the crypto market attracted crypto whales that came as no surprise. These large holders of crypto assets have enough power to set the market astir. With staggering bets, crypto whales disturb waters where small fish or retail investors swim in. Over a few recent months, small investors have been piling up their wallets with digital assets.
16:15 2021-03-04 UTC+00