Saudi Arabia has announced that it will reduce its oil production by 1 million barrels per day to boost oil prices. The kingdom’s energy minister, Prince Abdulaziz bin Salman, who leads OPEC, made the move as part of a deal in which several African members will also see their quotas cut. The 1mbp/d reduction will be applied in July, but Prince Abdulaziz said it could be extended. Several attempts by producers to tighten supplies have failed to raise oil prices, which have fallen by around $20 per barrel in the past 10 months, and currently stand around $70 per barrel.
China, EU, France, Germany, India, Italy, Japan, the UK and the US will all release their weekly purchasing managers’ final services purchasing managers index survey today, providing information on manufacturing activity. Meanwhile, Apple is due to host its Worldwide Developers’ Conference from its US headquarters and events are scheduled worldwide to mark World Environment Day.
The Polish oil and gas company Orlen and its CEO Daniel Obajtek are at the heart of a debate about political influence on the economy, amid concerns of state interference in the energy market. The company is seen as reflecting Poland’s new position as a European counterbalance against Russian aggression and influence. However, with Poland due to hold a national election this fall, Obajtek and Orlen have come under fire from opposition parties for their allegiances.
In brief
1. China has urged Western military to stay away from its waters in order to avoid dangerous collisions with the People’s Liberation Army.
2. Turkey’s new finance minister has pledged to adopt “rational” policies to address the country’s struggling economy after unconventional strategies by President Recep Tayyip Erdoğan sent the lira to record lows.
3. Indian officials have blamed signal failure for Saturday’s train crash, which has killed nearly 300 people. Prime Minister Narendra Modi has pledged to punish those responsible.
4. AstraZeneca has said that the Chinese pharma market, which has a rising middle class with greater levels of purchasing power, is “completely open” to investment, despite escalating US-China tensions.
5. Hollywood Studios have reached a tentative agreement with the union that represents directors, reportedly averting the threat of a shutdown.
Article by Mae Bowring
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Saudi Arabia will reduce oil production by 1 million barrels per day to drive up oil prices, the country announced after a meeting of the OPEC+ producers’ group in Vienna on Sunday.
The kingdom’s energy minister, Prince Abdulaziz bin Salman, who is the de facto head of OPEC, made the move as part of a deal in which several African members will have their quotas cut from the start. ‘next year.
Oil prices have fallen over the past 10 months despite several attempts by producers to tighten supplies.
The kingdom and other members announced a surprise drop in April but, after a brief rally towards $90 a barrel, prices reversed again, falling to near $70 a barrel at one point last week.
The 1mn b/d reduction will initially be for July but could be extended, Prince Abdulaziz said. He described it as a “Saudi lollipop”, or sweetener, for the group, whose other members have been spared from making further cuts this year.
Here’s what else I’m watching today:
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Economic data : China, EU, France, Germany, India, Italy, Japan, UK and US Release Caixin/Cips/S&P Global Index Survey Today Purchasing Managers Final (PMI) Services Purchasing Managers.
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Apple: The tech company is hosting its Worldwide Developers Conference today from its headquarters in Cupertino, California.
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World Environment Day: Events will be held around the world to raise awareness of today’s global environmental concerns.
Five other top stories
1. China has warned Western military to stay out of waters and airspace near its borders if they want avoid dangerous collisions with the People’s Liberation Army.
2. Turkey’s new finance minister has pledged to return to “rational” policies after President Recep Tayyip Erdoğan’s unconventional strategy put the country economy under intense stress and sent the lira to record highs.
3. Indian officials blamed Saturday’s train crash on signal failure as the death toll nears 300 and Prime Minister Narendra Modi has vowed to punish those responsible.
4. AstraZeneca defies geopolitics to bet on China, with Managing Director Pascal Soriot calling the market “completely open” to pharmaceutical investments.
5. Hollywood Studios have reached a tentative contract agreement with the union representing the directors, allay fears of a shutdown.
The big read
Daniel Obajtek, right, with Mateusz Morawiecki, Polish Prime Minister, in Warsaw. The oil chief has been mentioned in Polish media as a possible replacement for the prime minister © Attila Husejnow/SOPA Images/Sipa USA/Reuters
Polish oil and gas company Orlen and its chief executive are at the center of a debate over political influence on the economy. The rise of Orlen reflects Poland’s new status as a European bulwark against Russian influence and aggression. But as Poles prepare to vote in a hotly contested national election scheduled for this fall, chief executive Daniel Obajtek and company have become at the center of a heated political debate in Poland over the state’s influence on the energy market and the rest of the economy. . Is the Polish energy giant a tool of the government?
We also read and listen. . .
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AI Therapy: AI clearly has the potential to act as a “listening service” for people with mental illness. But “self-medication” by unsupervised AI could also be very dangerous, warns the FT’s flagship investment column Lex.
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FT Weekend Podcast 🎧: In this week’s episode, journalist Monica Mark talks to host Lilah Raptopoulos about the brutal life of a south african copper thief.
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JP Morgan: Rather than an open cause for celebration, JPMorgan Global Summit on China was a very cautious affair, as evidenced by the US bank’s approach to its own event, writes Thomas Hale.
Card of the day
Japan is often in the spotlight for its declining birth rate. But South Korea’s aging population will be a even heavier economic burden by 2050, according to the United Nations World Population Prospects. South Korea’s dependency ratio – the number of people aged 65 and over as a proportion of its working-age population – is expected to triple to 75% over the next three decades.
Take a break from the news
Chinese-American science fiction writer Ted Chiang – whose short story Story of your life was adapted into the Hollywood film Arrival – sits down with Madhumita Murgia for lunch with the FT to talk about the limits of AI, the uses of sci-fi and why “the machines we have now are not conscious”.
Additional Contributions by Tee Zhuo and Vita Dadoo Lomeli
https://www.ft.com/content/930569d0-543d-43d5-a626-a0258972ee40
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