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 to hardly raise interest rates until late 2023
Chicago Fed President Charles Evans believes that the US will hardly raise the key interest rate until 2024. He is also sure that the US economy will need a lot of time to recover after the crises caused by the coronavirus pandemic.However, the US economic health may improve due to a visible acceleration in the GDP growth in 2021.
10:22 2020-12-01 UTC+00
Jerome Powell calls for more stimulus
Fed’s Chairman Jerome Powell is sure that the global economy needs additional stimulus. He emphasizes that in case of successful massive vaccination, the economy may still face risks."With the virus now spreading, the next few months could be challenging," Powell said. "The concern is that people will lose confidence in efforts to control the pandemic and ...
10:18 2020-12-01 UTC+00
China urges US to stop pressure on Chinese companies
Beijing can now feel the wind of change and is planning to establish new relations with Washington. Donald Trump’s aggressive stance against China is likely to be revised by the new White House administration. The Ministry of Commerce of the People's Republic of China hopes for a truce with the United States.
15:52 2020-11-30 UTC+00
Elon Musk overtakes Bill Gates to become world's second-richest person
According to the Bloomberg Billionaire Index, Tesla and SpaceX CEO Elon Musk has overtaken Microsoft co-founder Bill Gates to become the world's second-richest person.A sharp rise in Tesla’s stocks to $595 per share increased the company's total market value above $500 billion, thereby pushing the businessman's fortune higher to an impressive $127.9 billion.
11:42 2020-11-30 UTC+00
Bill Gates predicts future of business after pandemic
Microsoft co-founder Bill Gates predicts drastic changes in the business industry when the pandemic is over. The tech executive suggests that the way people travel for and conduct business will fundamentally change. In addition to a drop in business trips, he projects a decrease in air travel demand.
10:11 2020-11-30 UTC+00
Asian countries establish largest trade union in history
The world community has witnessed the establishment of yet another trade union. When contrasted with other similar organizations, this project looks really impressive as it brings together as many as 15 countries of the Asia-Pacific region. The Regional Comprehensive Economic Partnership (RCEP) owes its existence to the United States.
08:57 2020-11-30 UTC+00