New statements by the Secretary-General of OPEC give hope again

Haitham Al-Ghais, Secretary-General of OPEC,
said after meeting with Algerian President Abdelmadjid Tebboune
and Minister of Energy and Mines Mohamed Arkab during a press conference in
which he linked investment to the oil sector and the stability of markets,
stating that the size of the oil industry needs 12 trillion dollars by 2045,
so how can countries pump all of this? Money without stability in the global market.
If we look at Al-Ghais’ talk with a perceptive eye,
we conclude that the instability of the oil price means that no investment is being pumped,
which prompted the organization to reduce oil production until stability occurs in the market. Conclusion.

topıcs

The OPEC meeting

Banning electronic chips at this time put China in crisis.

The market storm intensified with data and turmoil!

The OPEC meeting

The OPEC meeting was held in Austria on the fifth of this October,
and the President had met to reduce oil production by about one million barrels per day,
in line with the reports it conducted last Wednesday,
which proved the correctness of their theory in the demand market,
which is expected, according to their reports, to decrease by 500,000 barrels.

per day during this current year and by next year it may drop to nearly 400,000 barrels or a total of 900,000 barrels,
and this does not contradict their view at all, despite the dissatisfaction of the American side with this decision,
describing it as a short-sighted decision on the words of President Biden,
who expressed His dissatisfaction with those decisions,
while the countries that included Iraq, Oman, Bahrain, Kuwait, and Algeria supported the decision,
and said that it was taken unanimously,
and was based on purely economic indicators without regard to international opinion and its interests,
as the Saudi Defense Minister rejected those accusations against the organization and Riyadh in particular. ,

The matter expressed the astonishment of the Saudi Defense Minister, Prince Khalid bin Salman,
as he indicated that accusing Saudi Arabia of allying with Russia
and standing by it against Ukraine with those decisions that would reduce oil production are false
and baseless accusations and did not come from Ukraine itself,
which indicates an indulgence These accusations are of personal interests.

Both Bahrain and the Sultanate of Oman said that
the OPEC alliance took its decision unanimously to reduce production by two million barrels per day,
while the CEO of the Kuwait Petroleum Corporation, Nawaf Al-Sabah,
affirmed Kuwait’s keenness to maintain balance in the oil markets for the benefit of consumers together as well.
In an important statement,
the Iraqi Somo Oil Distribution Company has issued a decision based on economic indicators and
that there is complete consensus among the OPEC countries in opinion and
their meeting on those decisions due to the instability of the market at present,
and it is a proactive approach that directly supports the stability of the oil market.

Banning electronic chips at this time put China in crisis.

US President Joe Biden continues Trump’s march,
as he has implemented stricter rules that represent a development in tightening the screws on Beijing strongly.
It is expected that this tightening will be due to China’s access to American semiconductor technology,
which constitutes strong commercial and geopolitical advantages for China,
but the choice of time was not in their favor and the This affected the shares of chip industry leaders around the world.

While America insists on not allowing China to enter that industry through the latest restrictions
it imposed from preventing access to equipment and software for chip manufacturing
that China used to manufacture chips of 14 nanometers or less,
China is determined to catch up with foreign semiconductor leaders and move forward,
where the majority of The manufacturing capacity in the country is 28 nanometers and more,
unlike TSM, which manufactures chips up to 5 nanometers for its customers.
The smaller the nanometer, the more advanced the chip becomes.
This is what China aspires to, the global industry goal at the moment,
at a time when America is standing by.
While Washington has been sending signals about its policies for several months.

Biden’s current tightening regime would like to exacerbate already existing problems

reaping its profits by taking control of a system such as semiconductors.
The chip market witnessed a major crash, with Philadelphia Semiconductor,
which is the largest measure of the market, losing about 9% in just two days.
The reaction of the American system sparked the reaction of the American system
To tighten the screws on those in charge of this industry,
especially after stopping dealing with Chinese companies.

The current stagnation due to raising interest rates may lead to the demand for foil used in iPhone devices,
despite the amount of suffering that the market has faced over the past two years.
Earnings next Thursday. However, analysts will focus differently on any signal
that helps them show the problems away from any Washington actions,
including spending plan and revenue growth targets as well as any inventory level
that represents the overall shape of the chip pumping machine in the market

Lamm Research shares fell 12% over two days due to its strong association
with China as it depends on approximately 31 percent of its sales from China
and will be greatly affected in the future by these strict rules.

TSM American Depository Receipts have declined ) by about 9% during the past two days as well,
while its shares listed in Taiwan fell last Tuesday by about 7.1% (after the National Day holiday last Monday),
which constitutes the largest drop during the day in 27 years.
This massive decline defies logic, if we simply link it to the latest US measure,
because the company gets only 10% of its revenue from China,
the chip market may be severely affected by these measures as it has been suffering for so long
before the intervention of US policy that could decimate what is left of it on her hand.

artıcle name New statements by the Secretary-General of OPEC give hope again

The market storm intensified with data and turmoil!

A bright start for the dollar this week as well,
as jobs data contributed to inflation losing its grip on the table while confirming
the Fed’s view of continuing the hawkish path while giving them an excellent opportunity to raise interest rates
by another 75 basis points by next November during the monetary policy meeting.

While the euro fell during the past week, the sterling regained its strength again after receiving the good news
that contributed to its significant progress, especially after the turmoil that the market was going through during
the previous period that almost pushed it to the bottom of a historical base,
while the yen recorded a significant decline against the dollar and reached the bottom It has not been achieved
since the 1990s and the main reason for this was the tightening of the Fed policy with the rate hike
which was met by the Bank of Japan adopting support and intervention policies
that did not work and caused the yen to decline during the last week.

It seems comfortable for the US dollar,

but it is the recent OPEC decisions that cause significant inconvenience,
as the reduction in production quotas and the ban on gasoline exports announced by Biden may create a crisis
that coincides with and supports inflation and leads to an increase in fuel prices in general,
which has the consequence It has to rise in the prices of many commodities,
which makes raising interest rates again and the continuation of the strict policies is inescapable.
Traders have also priced the Federal Reserve raising interest rates next year,
and it should be noted that geopolitical events may keep inflation rates high.
There is no doubt that Federal will continue his career without retreat.

These policies contributed to reducing the appetite of the American consumer,
as September recorded the largest price increases in the consumer market in line with the decisions of the Federal Reserve,
which aspires to slow the economy temporarily to fight inflation,
and overall sales stabilized while the basic figure advanced by only one percent.
Since the retail sales data was not adjusted according to inflation rates,
the report indicates a decline in real spending during the month,
despite recording sharp growth, but retail sales rose by 8.2% at the annual level,
which may correspond to the rise in the consumer index during the coming period.

The core index, which excludes foodstuffs and energy, increased by about 7.2% over the year and 0.3% in September.
The producer price index also increased by .04% compared to August,
where it rose by 8.5 on an annual basis, despite the rise in energy, services, and food costs.
The index also flourished. Producers in the services sector are strongly promising to show signs of growth.

As for the United Kingdom.

The new prime minister, Liz Truss, demanded the dismissal of the chancellor last week,
indifferent to the economic situation as the specter of peak inflation has become
one of the most vexing concerns of Bank of England Governor Andrew Bailey,
and Quarting made a statement in late September about tax cuts
that quickly turned into an economic and political catastrophe.
The mini-budget included a plan to cancel the proposed tax increase from 19% to 25%
– with a value of up to eighteen billion pounds.

But for everyone to taste honey, you must take your luck from a bee sting.
These decisions have hurt some trends. Government bond prices have fallen,
which forced the Bank of England to intervene for two weeks after
it was informed that several investment funds loaded with
commitments as part of a program Pensions were hours away from collapsing,
as Terrace managed to calm the markets with a press conference,
explaining that the mini-budget it set went quickly, contrary to expectations.
At the press conference, the UK economy disappointed expectations of contraction in August,
after the cost-of-living crisis led to a sharp decline in industrial production and consumer prices,
indicating that the economy may already be in the doldrums and
maintenance of the North Sea gas fields had to have a major impact.
On the decline, as the domestic production decreased by about 0.3% during August,
it seems that the order to raise the interest rate by 75 basis points again has become long-term.
All events do not bode well for the future, Recover from inflation in the near term.

artıcle name New statements by the Secretary-General of OPEC give hope again

New statements by the Secretary-General of OPEC give hope again

Related Topics