Saudi Arabia considers an agreement with OPEC +led by Russia Oil rises

Analysts expect the S&P 500 stock index to fall further due to growing concern about the US economic situation
and a possible recession on the back of tighter monetary policy by the Federal Reserve, the MLIV Pulse survey showed

Evest follows US market developments in the following report

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Saudi Arabia reiterates its desire to continue cooperation with OPEC led by Russia

Forecast of a decline in the Standard & Poor’s index due to recession

Oil rises above $110

Saudi Arabia reiterates its desire to continue cooperation with OPEC led by Russia

Saudi Energy Minister Prince Abdulaziz bin Salman told the Financial Times that Saudi Arabia hopes to conclude an agreement with OPEC +, which includes Russia
He said that on the eve of the end of the current OPEC + agreement

Saudi Arabia has hinted that it will support Russia as a member of the oil-producing group OPEC + despite tightening Western sanctions on Moscow and a possible EU embargo on Russian oil imports

The prince said Riyadh hopes to “reach an agreement with OPEC +, which includes Russia,” insisting that “the world must value” the producers’ union

According to the current plan

all OPEC + production restrictions approved in April 2020 must expire by the end of September
while the agreement itself expires by the end of 2022

Prince Abdul Aziz’s comments are an important sign of support for Russia by a traditional US ally as the West seeks to isolate the country and its oil production falls, raising questions about its place in the OPEC + group

Riyadh is resisting pressure from the West to increase oil production to help lower prices after the outbreak of the conflict between Russia and Ukraine, insisting there is no shortage of supplies

Prince Abdelaziz said it was too early to outline the new deal given market uncertainty
but added that OPEC + would increase production “if there is demand

“It’s too early to try to define (an agreement) in the chaos you see now
But what we know and what we have been able to do is enough for people to see that there is value in being and working together,” he said

OPEC+ will abide by its 2020 agreement, under which it will gradually phase out restrictions from September 2021
and increase production quotas by 432,000 barrels per day
But Russian production has fallen since the start of the war in Ukraine
falling from about 11 million barrels per day in March to an average of 10 million barrels per day in April
the Financial Times reported, citing data from OilX

The International Energy Agency (IEA)

expects Russian production to fall further, falling by as much as 3 million barrels per day
if Western powers impose tougher sanctions to reduce Europe’s dependence on Russian energy, including a possible EU embargo on oil imports
However, India has increased its imports of Russian oil since the beginning of the conflict

Brent crude, the international benchmark, traded at about $112 a barrel last week
Saudi Arabia, the de facto leader of OPEC and the world’s largest oil exporter
has been negotiating oil production quotas with Russia through OPEC + since 2016

The Kingdom has endeavored to take a neutral path since Russia launched its military operation in Ukraine
Crown Prince Mohammed bin Salman has spoken with President Vladimir Putin twice since February 24, and this month
he and King Salman congratulated the Russian leader on the day the country witnessed the Soviet Union’s victory over Nazi Germany

Prince Abdelaziz blamed the lack of global processing capacity and the tax system for the high price of gas stations
“The determining factor in the market is the capacity of the refineries and how to open them,” he said
“At least over the past three years, the entire world has lost about 4 million barrels per day of oil refining capacity
and only 2.7 million barrels per day as COVID-19 emerges

Forecast of a decline in the Standard & Poor’s index due to recession

The Standard & Poor’s 500 Index is nearing a bear market, having fallen nearly 18% from its recent peak
Last week, companies whose stocks were included in the index’s calculation lost more than $1 trillion in market capitalization

Analysts surveyed by MLIV Pulse expect the S&P 500 to continue falling this year and fall to about 3,500 points
It is down more than 10% from Friday’s close of 3901 and 27% from its peak in January

Only 4% of experts surveyed believe the S&P 500 has already reached the bottom
In the meantime, 6% of participants do not rule out the index dropping to 2200-2400 points
levels that were at the peak of the COVID-19 pandemic

The study, conducted from 17 to 20 May, involved 1009 analysts

“I still think the worst is not over yet,” Savita Subramanian, head of US equities at Bank of America Corp., told Bloomberg TV

The Fed’s tough stance

supply chain chaos and growing business threats undermine the credibility of American companies
Money managers are increasingly concerned about the health of the economy as China’s lockdowns and the protracted conflict between Russia and Ukraine take a heavy toll

In the meantime, Marko Kolanovic of JPMorgan Chase & Co considers the concern of an imminent recession in the United States exaggerated
The average assessment of popular Wall Street strategists indicates that the S&P 500 will finish the year at 4800 points
giving hope for a rebound in the market at the end of the year

Head of Global Market Strategist Investco Ltd

Christina Hooper also points out that while a recession is “largely priced in
she doesn’t expect it to happen
The expert believes that “the mood is very negative
This confirms the view that we are close to rock bottom

When asked what event would happen before the Fed became pessimistic
47% of respondents said they expected the S&P index to fall 30% from its peak
The same figure shows that for this purpose, unemployment in the United States must rise to 6% from 3.6% at present
About a quarter of respondents believe that housing prices in the country should fall by 20%

Almost one in five experts said that once the conflict in Ukraine is over, companies will start paying higher dividends
Almost the same number believes this will require reducing the price of oil to $70 per barrel

Oil rises above $110

Oil prices rose moderately Monday morning after rising over the previous seven days

Brent crude futures for July rose by $0.8 (0.71%) on the London Futures Exchange
to $113.35 per barrel. Brent crude rose by $0.51 (0.4 percent) to $112.55 per barrel on Friday

West Texas Intermediate crude futures’ prices for July in electronic trading on the New York Mercantile Exchange
(NYMEX) rose by $0.6 (0.55%), to $110.88 per barrel. During the previous session
the futures contract rose by $0.39 (0.4%) to $110.28 per barrel

Last week, oil prices ended steadily higher – WTI added about 2.5% in price, and Brent
by about 1% amid investors’ concerns about supply

artical name Saudi Arabia considers an agreement with OPEC +led by Russia

Saudi Arabia considers an agreement with OPEC +led by Russia

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