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Big bet on petroleum? Oil surges on OPEC+ cuts
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OPEC+ group met in Vienna on June 4, which included members of the OPEC, Russia, and other smaller producers. Opec+ produces about 60% of th もっと見る
OPEC+ group met in Vienna on June 4, which included members of the OPEC, Russia, and other smaller producers. Opec+ produces about 60% of the world's oil. In addition to extending the existing OPEC+ cuts of 3.66 million barrels per day (bpd), the group also agreed on Sunday to reduce overall production targets from January 2024 by a further 1.4 million bpd versus current targets to a combined 40.46 million bpd.

Russia's Deputy Prime Minister Alexander Novak said the market is more or less balanced, and demand is rising, although the group would monitor interest rate decisions by global central banks, including the U.S. Federal Reserve, for clues on the economy that could influence fuel consumption. After the OPEC+ met, Brent crude futures were trading up 2.3% at nearly $78 a barrel, while WTI, the U.S. benchmark, rose 2.4% to $73.50. Gasoline futures were up 1.5%, but the average U.S. pump price for a gallon of regular unleaded gas was unchanged at $3.55 (5:30 AM ET).

Summary:
•OPEC+ said targets would drop by a further 1.4 million barrels per day from 2024.
•Saudi Arabia said it would make cuts of a million barrels per day in July.
•Riyadh also agreed to extend a production cut of 500,000 barrels per day announced in April through 2024.
•UAE wins with a higher quota; African countries lose unused quota space.

Q:
1.What do you think of oil surges on OPEC+ cuts?
2.What's your investment strategy as global oil prices continue to rise?

View disclosures here.
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