Oil returns with a new jump, the largest since July and before the “OPEC +” meeting.

Oil prices jumped by about 5%, which did not happen since July,
affected by the decision taken by the OPEC alliance towards the possibility of reducing production,
which made fears of tight future supplies a source of nuisance, especially with the approach of winter.

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Big drop in production

Germany is studying a plan to borrow 200 billion dollars

Wall Street is rebounding after the September declines

Big drop in production

The massive production cut will draw criticism from the US and other major consumers,
as energy-fuelled inflation has forced central banks to raise interest rates aggressively.
There is also the specter of European sanctions on Russian oil,
which are due to come into effect next December,
as the European Union seeks to reach a preliminary agreement on a package aimed
at punishing Russia for its war in Ukraine.
The agreement is likely to include political support for a price cap on Russian oil,
which has been a source of movement for the European economy for decades.

As West Texas Intermediate crude rose to about $84 per barrel,
after the news of production cuts issued by the Organization of the Petroleum Exporting Countries and its allies,
it is expected to reduce by about one million barrels per day.

This will soon become clear and a meeting is scheduled for next Wednesday in Vienna to study the decision.

Rob Haworth, the chief investment analyst at US Bank Wealth Management,
said it was surprising that the market had made OPEC talk about 1 million barrels per day cuts
as inventories continued to tighten and the fact They are also missing their production targets, but with that said,
prices are now down from over $120 to $80, so I’m sure they look at that as a huge challenge.

article name Oil returns with a new jump

Oil fell by a quarter in the three months to last September,
as the global economic slowdown sapped demand.

Banks, including UBS Group AG and JPMorgan Chase & Co.,
said that OPEC and its allies may need to cut production

by about 500,000 barrels per day for prices to eventually stabilize.

Goldman Sachs Bank stated that reducing more than one million barrels per day
may bring investors back to the market. As for the latest developments in oil prices,
West Texas Intermediate crude for November delivery rose 4.14 dollars to settle at 83.63.

While Brent crude for December settlement rose $3.72 to $88.86 a barrel.

Extreme alert Many political forces await the OPEC meeting this week,
which will include many discussions and critical decisions regarding November supplies.
It is worth noting that this meeting has not taken place on these grounds since March 2020.

article name Oil returns with a new jump

Germany is studying a plan to borrow 200 billion dollars

As part of Germany’s efforts to protect families and companies from high energy prices,
it has resorted to a loan scheme, and this is what raises concern in Europe,
because this may increase the economic gap between the European Union countries again
after it had previously got rid of it the Corona crisis. Olaf Scholz, the German chancellor,
announced that he is currently launching a plan worth about 200 billion euros during the past week,
to stop the rise in gas prices, while the finance ministers, after their meeting on Monday,
are seeking good behavior in an attempt to implement such measures without increasing inflation.

And in light of the European economy being exposed to the threat of recession during the next winter,
this expected divergence may lead to more disruption to the economy,
with expectations of the failure to coordinate joint efforts on Covid 19 by the European Union,
while the European Commission Commissioner stated that
we must pay close attention to The rules of fair play for the sake of transparency,
and that member states try to discuss all the ways available to them,
and he also added that despite Germany’s desire to borrow 200 billion euros,
some other countries within the European Union find it difficult to implement them.

Inflation fears

Fears also persist because of how all countries seek to confront the energy crisis and incorrect spending,
as a warning came from the European Center that
countries should follow the financial system specified in its objectives to avoid high inflation
and that full support will be difficult to implement therefore It is that we focus more on the goals,
and try to reach inflation in the end to 2%.

The German Finance Minister stated that Germany is not thinking of an economic plan,
but it seeks only to confront the shock that it is experiencing and try to control it in a limited range
and to be a clear response to Russia and Putin, Germany can also protect its economy.

article name Oil returns with a new jump

Wall Street is rebounding after the September declines

This week was very bright, after the worst month that passed on Wall Street in more than two decades,
which was the month of September, in which stocks fell violently.
Treasury, what seemed to be an endless rally, in light of the weak US manufacturing data,
which always concerns that the Federal Reserve will excessive monetary policy,
which makes the upcoming scene unsure of the course of things for the stock market.

The advance of about 3% The sessions of the beginning of the week ended,
as the Standard & Poor’s 500 stock stuck to the green color, moving about 97%,
evidence of exhaustion of selling operations, enjoying confidence and strength again,
moving towards the best path since the end of May, approximately, since 1931,
the markets have not witnessed this bad performance during The first nine months of this year,
excessive swelling and tightening with the pessimistic outlook also led to the weak financing of the recovery,
as analysts scramble this period in anticipation of achieving the theory and predictions of each of them
because what is happening in the financial markets is something like Hollywood movies.

Matt Malley, chief markets strategist at Miller Tabak + Co. writes:
“The market is oversold and the sentiment is very negative, so a rebound,
even if sharp, can happen at any time. “. He added:

“The final bottom of this bear market has been reached,
as the stock market has not been fully priced as being in a recession.

But there is some turmoil in the markets such as the problems of its partner Tesla,
for example, and this is my view. Also, the low yield of five-year bonds At one point,
by more than 30 basis points, the 10-year bond rate fell to 3.6% after it recently exceeded 4%
and rose for nine consecutive weeks, and as for the Treasury, Treasury bonds witnessed a rise.

article name Oil returns with a new jump

Oil returns with a new jump

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