On Monday, October 3, oil prices continued to rise throughout the day, with the current increase of nearly 4.5%: WTI crude oil is now at $82.96 per barrel, and Brent crude oil is now at $88.74 per barrel.
Previously, OPEC+ was planning to reduce production by the largest scale.
According to media reports yesterday, OPEC+, composed of oil-producing countries, will consider reducing production by more than 1 million barrels per day when the meeting was held in Vienna on Wednesday. Delegates said that there will be no final decision on the scale of production cuts before ministers of various countries meet, but this scale reduction will be the largest since the epidemic.
media said that the plan to cut production by more than 1 million barrels per day has received support from Russia. But OPEC representatives said that Saudi Arabia is reserved about the scale of production cuts.
Worries about a global economic slowdown have put pressure on the outlook for energy demand, with crude oil prices falling for the first quarter in more than two years last Friday.
Investment banks including JPMorgan recently said that OPEC+ may need to lower daily output by at least 500,000 barrels to stabilize oil prices. RBC said OPEC+ may choose to cut production twice as much. Therefore, the final cut may be even greater.
Another media pointed out that the final production cut decision will be a fierce debate, and other plans under consideration include a daily production cut of 500,000 barrels or up to 1.5 million barrels of . But a sharp cut in production could attract criticism from the United States and other major oil consumers, which have been fighting economic slowdowns and energy-induced inflation.
Last month, an OPEC+ representative said that the organization would cut production by 100,000 barrels per day from October, bringing supply back to August levels. This will overturn OPEC+'s previously announced production increase plan in September, bringing the results of Biden's Middle East crude oil diplomacy to zero.
This is the first time that OPEC+ has announced that it will start to reduce production in more than a year. Previously, due to the recovery of demand after the epidemic, OPEC+ maintained production increase for 18 months.
According to media reports, Suvro Sarkar, energy analyst at DBS Bank, said: It is only a matter of time before
oil prices return to $100 per barrel, especially as supply tightens near the end of the year.
U.S. stock futures generally fell and then turned to rise one after another. Nasdaq futures fell by 1.13%, and the decline has narrowed significantly. S&P 500 futures are currently up 0.25%, while Dow futures are up 0.40%.
In terms of European stock markets, major European stock indexes opened lower, German DAX index fell more than 1%, the UK FTSE 100 index fell nearly 1%, and the French CAC 40 index fell 1%.
Asian market continued to fall after opening . The Nikkei 225 index once fell by more than 1%. As of now, the decline has narrowed and is now down 0.90%; the Hong Kong Hang Seng Index fell 0.91%. FTSE China A50 Index futures opened and fell nearly 1%, and the intraday decline continued to expand, and now it fell 1.42%, closing down 0.29% on the night trading day last trading day.
Vietnam VN index fell 4% to 1086.51 points. In terms of
cm10cm11cm11cm11cm11cm12cm2, Credit Suisse fell by more than 6%.
There were previously market rumors that a large investment bank is on the verge of bankruptcy. Some overseas self-media speculate that one of them may be Credit Suisse. To appease investors, Credit Suisse executives reiterated their solid liquidity and capital position to major clients, counterparties and investors on Sunday.
(continuously updated)
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