Something for your Espresso: Saudi Arabia wants a fight with Biden, but they don’t have the upper hand
Good Morning from Europe.
Nikkei is through the roof again this morning despite hawkish oil-market news from the OPEC+ gathering this weekend. The reaction in oil space is very contained as we expected, and despite the supply cut, our EUR/NOK longs just about survived, while the USD is rebounding alongside fading oil prices after the initial minor price spike. Will markets continue to chase the Goldilocks story (lower inflation and soft landing on growth) this week? We think so.
We have collected some highlights from our OPEC+ coverage below in case you missed it:
The big picture from the OPEC meeting: The recently released production schedule for 2024 has now been made public. Presently, the noteworthy alteration entails a voluntary reduction in production for Saudi Arabia, amounting to 500,000 barrels per day until the conclusion of 2024. However, it was subsequently declared that an additional 1 million barrels per day would be cut starting in July, initially for a month but with the possibility of extension.
Find out more about how we position with a 14 day trial below