We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Energy, Oil prices, OPEC, Russia energy, Saudi Arabia, Strategic Petroleum Reserves, Energy shortages, Economics, Regulation, Biden and Trudeau energy policy, U.S. oil production, Shale oil, Oil price projections, CPI, Energy inflation, OPEC inflation, Silicon Valley Bank, Alphabet, Google, Tech companies cut costs, Employee benefits, Twitter costs, Elon Musk, Gambling and investing, Charlie Munger, Gold prices, Central Banks gold spree, Precious metals, Gold production, U.S. Dollar, De-dollarization, Russia, China, Geopolitics, Currency reserves, Russian regulations, Trade wars.
Big move for oil
OPEC and Russia made a huge announcement last weekend. The organization and its members will decrease oil production by over 1.6 million barrels per day. As prices have fallen, many energy investors have looked for OPEC to do something to stabilize the market. However, many market participants were caught off guard by this move made by OPEC and Russia. The move was a positive sign for energy investors, especially with recession fears looming over the economy.
Saudi Arabia’s Ministry of Energy said the production cuts were precautionary and were meant to stabilize global prices. Many analysts and insiders also believe that Saudi Arabia green-lighted this plan due to recent comments made by U.S. Energy Secretary Jennifer Granholm. Secretary Granholm spoke last week and said it would take years for the U.S. to replenish its strategic petroleum reserves, and that they probably would not begin refilling it this year due to production issues.
Here are the countries that have agreed to decrease their oil production:
These production cuts account for approximately 2% of global oil production.