CCTV Script 05/10/22

CCTV Script 05/10/22

What the market is most concerned about, and has yet to learn, is how much and for how long this production cut will be. Expectations vary, but overall, OPEC+, led by Saudi Arabia and Russia, is expected to push for production cuts of 1 million to 2 million barrels per day, or more. If that comes to pass, it would be by far the largest since early in the coronavirus pandemic. Analysts at Energy Aspects noted that OPEC+ hopes to boost oil prices by cutting supply before demand shrinks significantly due to concerns about a global economic slowdown and the effect on consumption growth in emerging markets The market reacted rather quickly. The possibility of a large production cut immediately pushed up WTI and Brent crude futures prices. Brent crude, the international benchmark, rose above $90 a barrel on Tuesday, up about 7 percent since the weekend. But it is still well below the high of $130 per barrel seen at the beginning of the Russia-Ukraine conflict. If OPEC+'s production cuts lead to a significant, or sustained, rise in oil prices, then this clearly conflicts with the U.S. goal of lowering inflation. Some analysts believe this reflects tensions between Saudi