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OPEC + is postponing the decision until this Friday. The prospect of gradual opening of taps makes oil rise – Oil

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OPEC + is postponing the decision until this Friday.  The prospect of gradual opening of taps makes oil rise - Oil

Members of the Organization of the Petroleum Exporting Countries and their allies (the so-called OPEC + group) met this afternoon, but decided to postpone any decision until Friday, as the terms of the production agreement have not yet been agreed. And that’s because the UAE doesn’t seem to agree with everything that’s being proposed.

As far as we know, all indications are that OPEC + has decided to continue the gradual opening of its taps. After placing an additional 2.1 million barrels per day on the market in the first seven months of the year, several sources told Reuters and Bloomberg that a decision will now be made to increase their exports by another two million barrels per day between August and December.

Crude oil prices have reacted sharply to these signs, trading at October 2018 highs, expecting more black gold to continue to flow gradually – thus easy to satisfy at a time when demand continues to rise in the context of the economic recovery.

The “benchmark” for the US West Texas Intermediate (WTI) for August delivery continued to climb 2.74% to $ 75.48 a barrel. The July contract for Brent crude from the North Sea, traded in London and the benchmark for European imports, will rise 1.88% to $ 76.02. When rumors of production volumes began to circulate, the price soared more than 3% in New York and more than 2% in London.

The rise in prices was helped by the fact that the increase in production, determined for August, could be 400,000 barrels per day, when it was expected to reach half a million barrels per day. According to the agreement, which will be on the table, every month – from August to the end of the year – 400,000 barrels per day will be delivered, which is two million.

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Thus, the oil market has many opportunities to increase production – and the additional two million barrels per day until December will not be able to meet the expected demand for consumption. According to OPEC, world oil supplies in the fourth quarter will be 2.2 million barrels per day below demand.

OPEC + precautions to prevent market flooding are associated with the resumption of new cases of COVID-19 in many regions, especially in Asia and Europe. In addition, the Iranian factor must be taken into account, since the resumption of the nuclear deal will lead to the lifting of sanctions against Tehran and the appearance of more black gold on the market.

The general expectation of increased consumption this year and a consistent drop in crude oil inventories in countries such as the United States and China, where refineries are operating at full capacity, have spurred price support, and the likely OPEC + decision removes fears of inflationary pressures – because if large producing countries will not choose more, prices may rise.

It should be recalled that in May last year, in response to a sharp drop in demand as a result of restrictions caused by the pandemic, OPEC + agreed to cut supply by 9.7 million barrels per day. The idea is to end these production phase-out efforts by the end of April 2022. The current decline is 5.8 million barrels per day, including oil, which has since re-entered the market at the end of 2020 and in those first seven months of 2021.

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The OPEC + group said on Tuesday, quoting Reuters, that it estimates demand will grow by 6 million barrels a day this year. But he sees risks of oversupply in 2022 due to “great uncertainty”, namely an imbalanced global recovery and the possibility that the delta variant of the coronavirus will continue to increase the number of infections.

For this reason, a source from the cartel told the British agency yesterday that the agreement to cut supplies could go beyond April 2022, so that the almost six million barrels that OPEC + members hold on the market will not reach the market by that date. Metro. However, OPEC + sources told Reuters that the UAE was not satisfied with the possibility that this agreement would be in force until the end of next year, having blocked the decision for today.

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Economy

House valuations fell by three euros, and the number of orders fell in three months | Frame

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House valuations fell by three euros, and the number of orders fell in three months |  Frame

The average value of the bank’s valuation in August was 1414 euros, which is three euros less than in the previous month, which indicates a slight slowdown in the value of houses in the context of new loans. This sign is accompanied by two other signs of slowdown, one is the year-on-year growth of 15.8%, down from the 16.1% recorded in June, and the other is the number of evaluation requests that have bounced back. the fall.

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Economy

The Lightyear 0 continues to break records and become the most aerodynamic car in the world…and it’s powered by solar energy.

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The Lightyear 0 continues to break records and become the most aerodynamic car in the world...and it's powered by solar energy.

The Lightyear 0 never ceases to amaze: in tests conducted in Germany under the WLTP homologation cycle, the electric car, which can also be powered by solar energy, scored 0.175, the lowest score of any production car in history. But this is not an absolute record.

Lighter assured that the result is surprising even for engineers who expected a value of about 0.19. Ario Van der Ham, the company’s technical director, admitted: “We are very proud of this result. We started from scratch when we began to study the machine and its technologies. We’ve put a lot of effort into this.”

The Lightyear 0 managed to beat the previous record set by the 1996 GM EV1, which was 0.19. For example, the two most aerodynamic cars sold today are the Mercedes EQS and Tesla Model S, with claimed values ​​of 0.20 and 0.208, respectively.

However, if we also take concept cars into account, the Lightyear 0 is not the most aerodynamic car – the Mercedes Vision EQXX, introduced this year, scored 0.17 points, while the JCB Dieselmax, a prototype built to set the speed record in category of diesel vehicles. , it had a coefficient of 0.147.

946 examples of the electric sedan were produced, just over 5 meters long, capable of covering almost 625 km on the WLTP cycle thanks to a 60 kWh battery, a 170 hp electric motor. and solar power, which on its own, according to the Dutch manufacturer, it can travel up to 70 km a day.

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With a base price of 250 to 300 thousand euros, this model is clearly beyond the reach of any budget. However, after 0, Lightyear is already working on a more affordable entry-level model, which has a list price of around 30,000 euros and is scheduled to launch in 2026.

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Economy

Wall Street lives West Side Story and closes in the red. Yield on debt close to 4% – Stock Exchange

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Wall Street lives West Side Story and closes in the red.  Yield on debt close to 4% - Stock Exchange

Wall Street ended the day in negative territory, wiping out the brief and cautious recovery seen early in the session led by tech companies.

The global monetary tightening movement and the possibility of a recession, marked by statements by several members of the US Federal Reserve (Fed), together with the turmoil in the UK markets, sent three major US indices into the red.

The industrial Dow Jones lost 0.93% to 29,313.26 points, while the S&P 500 fell 0.88% to 3,660.76 points. The Nasdaq Composite Technology Index fell 0.47% to 10,816.59. The “sale” that was felt at the end of last week continued this Monday.

Investors digested the Bank of England’s announcement that, hours after the pound’s fall to historic lows against the dollar, it assured that it “would be hesitant in changing interest rates.”

In turn, several members of the Fed uttered the words with a “hawkish” tone. The central bank president in Boston stressed the need to continue the path of tightening monetary policy to curb inflation.

Susan Collins also warned that the process would require the loss of some jobs. Atlanta Fed Chairman Rafael Bostic also warned that the central bank still has a long way to go to control inflation.

“This is like a West Side Story remake with a gang of central bankers chasing a job market that refuses to give up,” joked Mike Bailey, director of research at FBB Capital Partners, in an interview with Bloomberg.

For an expert”[Jerome] Powell E [Andrew] Bailey’s are trying to slow down the economy, but I feel that employers are trying to keep as many workers as possible. “So we are almost dealing with a fight between central banks and employers,” he added.

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In the debt market, US 10-year bond yields rose 21.3 basis points to 3.898%, very close to the 4% threshold last hit in 2010.

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