OPEC’s production increase may be too low

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It’s Friday – Phil Rosen here. I’m happy to report we’re into the weekend, but that doesn’t mean relief for global energy markets.

Crude oil prices continue to show


volatility

and the big OPEC move may not be big enough to fill the supply gap.

Here we are.


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Russian oil

Russian oil production fell from February to mid-May, according to Bloomberg figures.

photo alliance/Getty Images


1. OPEC+ announced a sharp increase in oil production on Thursday. Even if larger than expected, the increase of 648,000 barrels per day may not be enough to compensate for the Russian barrels missing from the global market, according to the CEO of Hess.

The release comes as crude oil inventories in the United States have fallen, with EIA data showing current inventories are around 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 to fill Russia’s absence from the market. As concerns grow over a severe supply shortage, sources have told the Financial Times that the Kingdom is ready to pump in more crude.

Saudi Arabia aware of risks in oil marketsand “it is not in their interest to lose control of oil prices,” a source told the FT.

With China potentially easing COVID lockdowns, questionable Russian production and soaring US gas prices, the White House faces a complex task.

And, closer to home, consumers are still wondering why gas prices continue to rise even at a time when crude oil is falling from record highs.

(You can hear me talk about oil and OPEC+ today on Insider’s The Refresh.)


In other news:

Microsoft Security

A security surveillance camera is seen near the Microsoft office building in Beijing on July 20

Associated Press/Andy Wong


2. Stocks fell pre-market Friday morning after Thursday’s volatile session. Futures contracts for each of the major indices fell. Tesla shares fell as Reuters reported that Elon Musk wanted to cut 10% of jobs at the electric vehicle maker. Here is the latest.

3. On the role: North Bud Farms Inc reports earnings today and is keeping an eye out for the May jobs data release later today.

4. Big investors are eyeing this handful of stocks this quarter, according to a Goldman Sachs analysis of more than 1,300 funds. In total, the companies manage $5.2 trillion in assets – see the list of nine stocks here.

5. The Fed is unlikely to suspend rate hikes anytime soon, Vice Chairman Lael Brainard said Thursday. The economy still has a lot of momentum: “Right now, it’s very hard to see the case for a pause.”

6. Microsoft stock fell after slashing its quarterly forecast on “adverse” currency movements. The tech giant is not alone among multinationals in warning that a stronger dollar can reduce revenue or profits. Here’s what you want to know.

7. Hedge fund giant Tiger Global is reported to have lost 52% this year. Losses piled up for the former company thanks to the continued decline in tech stocks. In May alone, the fund fell 14.2%, even though the Nasdaq was down just 2% on the month.

8. This millennial has saved enough money to quit his job at 29. He explained why he didn’t max out his 401(k) plan — and where he invested his money instead.

9. A 25-year-old Wall Street veteran says “rough seas” are still ahead, even as recession fears ease. He laid out a growing risk as summer approaches that could drive food prices through the roof – and four strategies for hedging those conditions.

Owned and securitized revolving consumer credit


Madison Hoff / Insider


10. Using your credit card is getting more and more expensive. The Fed’s fight against inflation is expected to drive credit card rates to record highs. This could result in buyers paying thousands of dollars in interest and going overboard.


Keep up to date with the latest market news throughout the day by checking out The Refresh from Insider, a dynamic brief audio from Insider’s newsroom. Listen now.


Organized by Phil Rosen in New York. (Comments or advice? [email protected] or tweet @philrosenn.)

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