Oil prices jumped on Monday after Saudi Arabia and other OPEC+ oil producers announced a surprise series of output cuts, a potentially worrying sign for global inflation just days after a slowdown in US price data boosted market optimism.
Brent oil futures jumped nearly $6 to $85.54 a barrel in choppy early trading following news of a production cut of about 1.16 million barrels per month. day, while U.S. Crude Oil climbed $5.22 to $80.89. [LE BRUT AMÉRICAIN A QUANT À LUI GRIMPÉ DE 5,22 DOLLARS POUR ATTEINDRE 80,89 DOLLARS.]
Sunday’s development comes a day before a virtual meeting of the OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which is expected to stick to the 2 million bpd cuts already in place until the end of the day. end of 2023.
According to the director of investment firm Pickering Energy Partners, the latest cuts could push oil prices up $10 a barrel.
Goldman Sachs raised its forecast for Brent to $95 a barrel by the end of the year and $100 for 2024.
Soaring energy costs somewhat overshadowed Friday’s slowdown in US core inflation, which helped Wall Street end the month on a strong note. [.N]
S&P 500 futures fell 0.3% early Monday, while Nasdaq futures lost 0.4%.
Nikkei futures were still higher at the open, although they moved away from their highs.
Treasury futures slid, while Fed funds futures reduced expectations of rate cuts later in the year.
The market raised the odds of the Federal Reserve raising rates by a quarter point in May to 57% from 48% on Friday.
This helped the dollar gain 0.3% against the Japanese yen to 133.21, while the euro fell to $1.0817.
Rising oil prices are bad news for the trade balance of Japan, which imports most of its energy.
The rising dollar and yields pushed the price of gold down 0.25% to $1,963 an ounce. [GOL/]