Source: Wall Street
OPEC+ 's final oil production reduction is likely to be even greater, and oil prices may rise further.
On Monday, October 3rd, oil prices continued to rise throughout the day, rising more than 3%: cloth oil is now at $88.03 a barrel and WTI crude is now at $82.25 a barrel.
Earlier, OPEC+ was brewing an epidemic to reduce production on the largest scale.
The OPEC+, made up of oil-producing countries, will consider cutting production by more than 1 million barrels a day when it meets in Vienna on Wednesday, according to media reports yesterday. Delegates said no final decision on the scale of production cuts would be made before ministers met, but that the reduction would be the biggest since the outbreak.
The media said that the plan to cut production by more than 1 million barrels a day has the support of Russia. But OPEC representatives said Saudi Arabia had reservations about the scale of the cuts.
Fears of a global economic slowdown weighed on the outlook for energy demand, with crude oil prices falling on Friday for the first time in more than two years.
Investment banks, including JPMorgan Chase & Co, recently said OPEC+ may need to reduce production by at least 500000 barrels a day to stabilize oil prices. Royal Bank of Canada said that OPEC+ may choose to reduce production by twice as much.As a result, the final cuts are likely to be bigger.
Other media pointed out that the final decision to reduce production will be a heated debate, and other options under consideration include a reduction of 500000 barrels per day orUp to 1.5 million barrels.
But a sharp cut in production is likely to attract criticism from the US and other major oil consumers, which have been grappling with an economic slowdown and energy-induced inflation.
Last month, OPEC+ representatives said the organization would cut production by 100000 barrels a day from October, bringing supply back to August levels. This will overturn OPEC+ 's previously announced plan to increase production in September, bringing Biden's Middle East crude oil diplomacy to zero.
This is the first time in more than a year that OPEC+ has announced that it will begin to cut production, after OPEC+ maintained an increase in production for 18 months as demand recovered after the outbreak.
According to media reports, DBS Bank Energy analyst Suvro Sarkar said:
U. S. stock futures generally fell, followed by gains. Nasdaq futures fell as much as 1.13%, and the current decline has narrowed sharply. S & P 500 futures are up 0.25%, while Dow futures are up 0.40%.
In terms of European stocks, European stock indexes opened lower one after another, with Germany's DAX index falling more than 1 per cent, the UK's FTSE 100th index falling nearly 1 per cent and France's CAC 40 index falling 1 per cent.
Asian markets continued to fall after opening. At one point, the Nikkei 225 index fell more than 1%. So far, the decline has narrowed and is now down 0.90%. Hong Kong's Hang Seng index is down 0.91%. FTSE china A50 index futures opened down nearly 1%, continued to expand intraday decline, is now down 1.42%, last trading night closed down 0.29%.
Vietnam's VN index fell 4 per cent to 1086.51.
In terms of individual stocks, Credit Suisse fell more than 6%.
Earlier, there were market rumors that a large investment bank was on the verge of bankruptcy. Some overseas media speculated that one of them might be Credit Suisse. In an effort to reassure investors, Credit Suisse executives reiterated its solid liquidity and capital position to big clients, counterparties and investors on Sunday.