OPEC+ announced in the early hours of this morning that it plans to cut oil production to 40.46 million barrels per day in 2024, while Saudi Arabia is also planning additional production cuts, and the duration of the cuts has not yet been determined.
Saudi Arabia's production cut has largely contributed to OPEC+'s plan, and Russia has also cooperated with this decision, expressing its willingness to adjust production and balance the market.
In October 2022, OPEC+ intervened in the oil market, when there was a sharp decline in oil, and OPEC+'s intervention largely stabilized the oil market.
However, during this period, ** was still affected by other factors, including ** and demand factors, which led to ** has been fluctuating.
It is believed that this OPEC production cut will lead to a decrease in oil in the market, which will provide great support for oil prices.
However, oil prices** are very bad for inflation in the United States, so the Fed is likely to be forced to continue raising interest rates.
It seems that the war between the Middle East and the United States is still escalating.
The U.S. labor market has been strong recently, with nonfarm payrolls increasing by 3390,000 jobs, sparking discussion among market participants about a rise in federal interest rates.
This data highlights the strong performance of the job market and increases the likelihood that inflation will be due to demand issues.
However, some economists have pointed out that the Fed needs to study the labor market in depth to determine whether it is loosening.
She expects that the Fed is likely to be forced to continue raising interest rates in July due to high inflation.
However, due to the impact of the U.S. banking crisis, the Fed has been considering stopping the pace of interest rate hikes, but the development of the job market has affected the Fed's decision to raise interest rates.
Continuing to raise interest rates is also a helpless decision for the Fed.
The Fed's constant interest rate hikes are definitely not a good thing for the US economy, and it is very likely that the US economy will be dragged into a severe recession.
Due to the poor economic outlook in the United States. This has led to an increasing number of foreign companies visiting China.
The main reason is that the Chinese market occupies an important position in the economy of American companies.
Recently, executives of a number of American companies have said that they will continue to invest in China, including Tesla, Starbucks, JPMorgan Chase and others.
Not only well-known companies in the United States, but also executives from some well-known brand companies in Germany and France are also visiting China intensively to invest in the Chinese market.
Today, the economic development of Europe and the United States is quite unsatisfactory, and they will also face the problem of high inflation and low growth that has not been resolved for more than a year.
The problem will persist in the future and remains unresolved.
GDP in the United States grew by just 13%, while Germany is showing a downward trend. This shows that the economies of Europe and the United States are still in a sluggish state.
However, the pace of interest rate hikes by the US Federal Reserve and the European Central Bank has not stopped, exacerbating the recession.
This makes enterprises want to find another big market with certainty to support their development. In this regard, the Chinese market is the only choice.
Judging from the data for the first quarter of this year, China's economic development is recovering strongly.
While Q2 data remains to be seen, research institutions generally agree that China is one of the few major economies in the world with confirmed growth this year.