Happy Wednesday, and welcome back to our weekly edition of 5 Things We Watch, where we take you through the 5 things we are currently keeping an eye on in the global macro landscape.

Happy Wednesday, and welcome back to our weekly edition of 5 Things We Watch, where we take you through the 5 things we are currently keeping an eye on in the global macro landscape.
Why – even after successive cuts – does crude oil keep settling on a $70 barrel? The conundrum has pitted the OPEC+ alliance against each other. Suspicious eyes are turning away from outside foes, and are now looking inwards, trying to sniff out the mole who is free-riding on the collective. Will the imposter be detrimental to Saudi’s production cut strategy?
Saudi Arabia once again attempts to gain the upper hand in the oil-market, but struggle to get the momentum going. Meanwhile, this week’s data may look like Goldilocks is back in the making,.
In short:
Watch out for the OPEC meeting this week as desperation can become the killer of solidarity, Easing energy pressures lending a helping hand to the EM space, Industrial metals screaming for more Chinese credit impulses
Will OPEC+ be able to rock the boat in energy markets again? Saudi Arabian budget break-evens are probably 5-7$ above current selling prices and MBS could be tempted to try and force the price higher again. The issue is that China is not playing ball and other OPEC+ members oppose further production cuts.
Is the massive OPEC+ cut bullish for oil? Or will the price action resemble former supply cuts? Empirical data suggests that it is not bullish oil, but a recession is needed to bring oil lower now.