Oil prices are going up. OPEC output cut
On Wednesday, oil prices increased as speculation grew that OPEC and Russia-led allies would soon announce a significant reduction in supply.
Divergent reactions were seen in the stock markets on Wednesday after Tuesday’s spike on the belief that the US Federal Reserve might slow its rate hike campaign.
Concerns over Britain’s economy, which is threatened by recession, led to further losses for the pound, which amounted to approximately one percent versus the dollar.
The price of oil has been the main topic of discussion. Russ Mould, director of investments at AJ Bell, predicts that a lot of focus will be placed on the magnitude of the reduction in oil production.
Major oil producers led by Saudi Arabia and Russia were on Wednesday expected to announce a large cut in output to prop up prices despite Western concerns over energy-fuelled inflation.
The 13-nation OPEC cartel and its 10 Russian-led allies are reportedly considering a reduction of up to two million barrels per day at a meeting in Vienna – the biggest cut since 2020.
In a reminder of the global economic turmoil, the World Trade Organisation dramatically lowered its global trade forecast for 2023.
“Today the global economy faces multi-prong crises. Monetary tightening is weighing on growth across much of the world,” WTO Director-General, Ngozi Okonjo-Iweala, told reporters in Geneva.
Presenting a revision of their annual trade forecast, WTO economists said they still anticipated global economic growth rising 2.8 per cent this year.
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