The Opec+ oil alliance is planning a substantial cut in production to prop up falling prices, according to people close to the discussions, as the group prepares to meet in person for the first time since March 2020. The oil group, which is led by Saudi Arabia and Russia, is expected to discuss a production cut that could total more than 1mn barrels a day at the meeting on Wednesday. The move threatens to boost oil prices at a time much of the world is fighting to bring energy costs down and could create a potential rupture with the US, where President Joe Biden has been trying to lower fuel prices for motorists ahead of crucial midterm elections next month.
A litany of Federal Reserve speakers did all they could last week to talk up the Fed’s mission of using super-sized rate hikes to bust inflation - and in the process sent the Dollar Index to a new 2022 peak of 114.75 on Wednesday before the BoE’s intervention to prop up the battered pound. “A recession will not stop the Fed from hiking rates,” Cleveland Fed President Loretta Mester said. U.S. inflation remains “very high” and could continue to shock as the Fed works on subduing the worst price pressures in four decades for Americans, Vice Chair Lael Brainard declared Friday.
The fracking boom in the U.S. established the country as a global energy giant and still plays a key role in providing energy security, but it has to continue to clean up its act