A sizable trimming of output for November has quickly been built in the prices. Scrapping the meeting indicates that OPEC+ is determined to support the market whatever the fundamental backdrop is. It is the JTC’s mandate to advise the production group on the oil balance before ministers decide on the right course of action. In an intriguing and unusual development today’s Joint Technical Committee meeting has been cancelled. Whisperings out of the Vienna headquarter hint at a reduction in output level as much as 1 mbpd, the steepest cut for more than two years, something that will not be well received by the White House ahead of next month’s midterm elections. Considering that central banks are unlikely to scale back significantly on their monetary tightening programmes, no improvement is anticipated in the foreseeable future, in spite of the counterintuitive rally in the stock market yesterday.Įconomic data went unnoticed in the oil market, too, as attention is now firmly on tomorrow’s OPEC+ ministerial meeting. The main reason for the for the sluggish performance was the contraction in new orders, the ISM believes, an unmistakable sign of the mitigating impact rising rates have on aggregate demand. In the US the factory PMI fell to 50.9, the lowest reading since May 2020. Manufacturing output also declined in the UK and suffered in several countries in the Far East. The sector in the euro zone shrank further last month, its index reached a 27-month low, according to S&P Global. In a clear sign that inflation-triggered rate hikes are achieving the desired effect global manufacturing activity has slowed considerably recently. Anyone hoping for tangible improvements in economic conditions was left bitterly disappointed yesterday.
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