Last Wednesday, the market took a further hit when Khalid al-Falih, the Energy Minister of the Kingdom of Saudi Arabia , said that his country would not reduce its output alone in order to stabilise the market. "Markets are expecting for the OPEC+ deal to be renewed, which should be healthy for consumers and producers and the global economy as a whole". "But the details are now what matter - how much will be cut, from when, for how long and, crucially, from what baselines".
The withdrawal decision reflects Qatar's intent to focus its efforts on developing its natural gas industry, the minister said, as the Gulf Arab state moves to increase LNG production from 77m to 110m tonnes annually. Qatar says it will withdraw from the OPEC group of major oil-producing nations in January. "I assure you this purely was a decision on what's right for Qatar long term".
How long the market's new love for Powell lasts will be tested in just a few weeks' time when Powell speaks following the Fed's next policy meeting, scheduled for December 19. "They're making a mistake because I have a gut, and my gut tells me more sometimes than anybody else's brain can ever tell me". Analysts think a rate hike next month is all but certain, possibly in part because they think the Fed doesn't want to appear to be bowing to pressure from Trump.
Traders believe the risk of fast-rising interest rates hurting the USA economy and the stock market is now on the downside after Powell said monetary policy rate is now "just below" estimates of a level that neither brakes nor boosts a healthy economy.
Volvo recently announced a reduction to its hiring plans and scaling back on the auto company's new assembly plant near Charleston, South Carolina, as a result of the impending higher auto tariffs. This week, the motor vehicle manufacturer announced its plans to lay off 15 percent of its salaried workforce (up to 14,000 employees) and close five plants in the United States and Canada.
Prices are not so high that they are a burdensome tax on consumers and businesses and not so low as to bankrupt energy companies. The price of oil has fallen by just over a fifth since the end of October and by almost a third over the past two months, in declines not seen since 2008.