Previous Trading Days Events 30 Nov 2023

Oil prices saw a big fall, by more than 2 yesterday after OPEC producers agreed to voluntary oil output cuts for the first quarter of next year that fell short of market expectations. These producers involve Saudi Arabia, Russia and other members of OPEC , who pump more than 40 of the worlds oil. They agreed to voluntary output cuts approaching 2M barrels per day bpd for the first quarter of 2024.

At least 1.3M bpd of those cuts, however, were an extension of voluntary curbs that Saudi Arabia and Russia already had in place.

For now, the outcome does not live up to the expectation in recent days, said Callum MacPherson, head of commodities at Investec.

From what weve seen so far, this looks like a paper cut of around 600700,000 barrels per day bpd vs Q4 2023 planned levels, said James Davis at FGE.

It could at best be an actual cut of around 500,000 bpd compared to Q4. This might be just enough to keep the market balanced in Q1, but it will be close.

OPEC also invited Brazil, a top 10 oil producer, to become a member of the group. The countrys energy minister said it hoped to join in January.

Source httpswww.reuters.combusinessenergyoilpricesfallweakdemandindicatorschinadata20231130

The annual increase in inflation is the smallest in more than 212 years and consumer spending levels get lower and lower all signalling cooling demand that boosts expectations the Federal Reserves interest rate hiking campaign is over….