The Malta Independent 25 May 2020, Monday

Saudi and Russia to lead oil output talks

Thursday, 9 April 2020, 14:00 Last update: about 3 months ago

The Maltese market closed in the red on Wednesday with MSE total index ending the session 1.563% lower to 7,714.138 points. None of the stocks had a positive performance, while the biggest fall was seen from MaltaPost plc with 18.18% drop to close at 0.90. Followed by 6.90% slide of International Hotel Investment plc with closing price of 0.54. GO plc and Malta International airport were down 4.76% and 4.00% to close at 3.60 and 4.80 respectively, followed by 2.63% shed of MIDI plc with closing price of 0.37.

ADVERTISEMENT

European stocks finished on a mixed note on Wednesday amid warnings from the World Health Organisation against unwinding quarantine or social-distancing measures prematurely, even as estimates of the likely huge economic toll of the pandemic continue to roll in. By the end of trading, the benchmark Stoxx 600 was up 0.02% at 326.67, alongside a fall of 0.23% for the German Dax to 10,332.89 while the FTSE Mibtel dipped 0.18% to 17,380.82.

US stocks closed sharply higher on Wednesday as a volatile week for indices continued after the Federal Reserve indicated it was willing to keep rates near zero until after the economy had felt the full weight of Covid-19. At the close, the Dow Jones Industrial Average was up 3.44% at 23,433.57, while the S&P 500 was 3.41% firmer at 2,749.98 and the Nasdaq Composite saw out the session 2.58% stronger at 8,090.90.

 

Saudi, Russia to lead oil output talks as US resists cut

OPEC and other oil producers led by Russia will discuss their largest ever output cut on Thursday in talks complicated by recent animosity and U.S. resistance to mandating cuts.

The spread of the coronavirus has slashed fuel demand for vehicles and planes and sent crude prices below the cost of production for many, including U.S. shale oil producers.

Benchmark Brent crude oil prices LCOc1 hit an 18-year low last month and are trading below $34 a barrel, half their level at the end of 2019.

President Donald Trump on Wednesday said U.S. oil producers were already cutting production and warned that he had many options if OPEC leader Saudi Arabia and Russia do not reach a deal on Thursday.

Trump said last week he had brokered a deal with Saudi Arabia and Russia that could lead to cuts of 10-15 million barrels per day (bpd)or 10-15% of global supply.

The largest one-off cut which the Organization of the Petroleum Exporting Countries (OPEC) has ever agreed was 2.2 million bpd in 2008.

The United States has become the world's largest producer but Trump's administration has shown no appetite to mandate cuts.

 


This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

 


  • don't miss