Global Market – OPEC+ nations announced surprise production cut & US Economic data
This week we will discuss OPEC+ nations decision to cut production starting from 1-May-23 and US Economic data which continues to show weakness in US Economy and important inflation data due in next week.
OPEC+ nation announce surprise production cut starting from 1-May-23
Production cut announced by OPEC + nations starting from 1-May-23 till end of the year is at 1.6 million barrels per day. Here are the list of countries and production cut by countries by end of the 2023.
• Russia: 500,000 barrels per day (bpd)
• Saudi Arabia: 500,000 bpd.
• United Arab Emirates (UAE): 144,000 bpd.
• Kuwait: 128,000 bpd.
• Kazakhstan: 78,000 bpd.
• Algeria: 48,000 bpd.
• Oman: 40,000 bpd.
US economic data – due in 10 – 14 April 2023 week
In coming week from, starting from 12-Apr-23 when US CPI & Core CPI inflation data will be released, it will provide further cues and US FOMC meeting minutes to be also released on 12-Apr-23 followed by PPI & Core PPI on 13-Apr-23 and PPI & Core PPI on 14-Apr-23.
Equichain Wealth Advisors: Market View & Opinion
If we follow the pattern since SVB bank crisis started on 8th or 9th March 2023, most US economic data are coming below expectation and weak, even US Fed meeting on 22-Mar-23 increase rate by 25-bps but before these crises begins, market was expecting 50-bps rate hike.
We expect next week to be very critical as market reaction to weak economic data is sometimes positive as hope of pause or pivot increase and there is another side of the coin which is recession fear.