Opening Bell: OPEC production boost may be too little
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Phil Rosen
Jun 3, 2022, 17:39 IST
Russian oil production dropped from February to mid-May, according to Bloomberg figures.picture alliance/Getty Images
It's Friday — Phil Rosen here. I'm happy to report we've made it to the weekend, but that doesn't mean relief for global energy markets.
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Crude oil prices continue to show volatility, and OPEC's big move may not be big enough to make a dent in the supply gap.
Here we go.
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1. OPEC+ announced a big boost to oil output Thursday. Even though it was larger than expected, the 648,000 barrel-per-day increase may not be enough to offset missing Russian barrels in the global market, according to the CEO of Hess.
The release comes as US crude inventories have slipped, with EIA data showing that current stockpiles are some 15% below the five-year average for this time of year.
Still, the OPEC+ announcement clears the way for Saudi Arabia to ramp up oil production to try and fill in for Russia's absence from the market. As concerns mount over a dire supply squeeze, sources told the Financial Times that the Kingdom is prepared to pump more crude.
Saudi Arabia is aware of the risks in oil markets, and "that it is not in their interests to lose control of oil prices," a source told the FT.
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With China potentially easing COVID lockdowns, questionable Russian output, and soaring gas prices in the US, the White House faces a complex task.
2. Stocks slipped premarket Friday morning following Thursday's volatile session. Futures for each of the major indexes dropped Tesla shares moved lower as Reuters reported Elon Musk wants to slash 10% of jobs at the EV maker. Here's the latest.
3. On the docket: North Bud Farms Inc is reporting earnings today, and keep an eye out for May employment data publishing later today.
4. Big-money investors are eyeing this handful of stocks this quarter, according to a Goldman Sachs analysis of over 1,300 funds. All together, the firms oversee $5.2 trillion in assets — see the list of nine stocks here.
6. Microsoft stock dropped after it cut its quarterly guidance on "unfavorable" currency moves. The tech giant isn't alone among multinational corporations in warning that a strengthening dollar can dent revenue or earnings. Here's what you want to know.
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7. Hedge fund giant Tiger Global has reportedly lost 52% this year. Losses have piled up for the top firm thanks to the ongoing decline in tech stocks. In May alone, the fund dropped 14.2% — even though the Nasdaq only slipped 2% on the month.
9. A 25-year Wall Street veteran said "choppy seas" are still ahead even as recession concerns ease. He laid out a growing risk heading into the summer that could send food prices through the roof — and four strategies to hedge these conditions.
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