Following the meeting between the US and Chinese Presidents at the G20 summit, where the two leaders decided to put fresh tariffs on hold and return to the negotiating table, attention now is likely to turn to the OPEC+ meeting, scheduled for Monday and Tuesday. With regards to central banks, the RBA and the Riksbank decide on monetary policy this week. The former is expected to cut rates again, while the latter is forecast to stand pat. The US employment data could also attract special attention as investors try to figure out when the Fed may start reducing rates, and if so, how aggressively.
On Monday, the highly anticipated meeting between major OPEC and non-OPEC oil producers, known as the OPEC+ group, begins. OPEC members will discuss output policy today, while on Tuesday, their non-OPEC allies will join in. Although prices rebounded strongly recently due to geopolitical tensions in the Middle East, we believe that OPEC should look beyond this recovery, given that in a still oversupplied market, the “black liquid” could resume its prevailing downtrend as soon as tensions fade.
Over the weekend, Russian President Vladimir Putin said that his nation agreed with Saudi Arabia to extend the previously agreed production cuts by six to nine months. What’s more, on Sunday, Saudi Energy Minister Khalid al-Falih said that the current deal would most likely be extended by nine months and that no deeper reductions are needed. Given that an extension is already...
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