OPEC+ agreed in early October to cut production by 2 million barrels per day from November. This came despite calls from the US for OPEC+ to lower fuel prices and help the global economy.
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LONDON – European shares are expected to open broadly lower on Wednesday as investors await earnings reports and react to the United Arab Emirates’ sudden exit from the OPEC oil cartel.
of britain FTSE 100 Germany’s index seems to open down 0.15% dex flat, france cac 40 down 0.14% and Italy’s FTSE MIB Down 0.37%, according to IG data.
European stock markets look set to follow their Asia-Pacific counterparts as global markets are trading in negative territory following the latest turmoil to affect oil producer OPEC, as well as a report pointing to weakness in OpenAI.
OPEC is in the news after the UAE announced on Tuesday it would exit the oil producer cartel on May 1, a major blow to the group that coordinates production among the world’s biggest oil producers, particularly in the Middle East.
The move complicates the oil supply landscape. While the United Arab Emirates – currently OPEC’s largest oil producer – could take steps to boost output after its exit, global flows are severely disrupted by the continued blockade of the Strait of Hormuz.
European investors will be on the lookout for key earnings reports on Wednesday, with several major companies also due to report ubs, total energy, Iberdrola, Lloyds Banking Group, Deutsche Bank, Mercedes-Benz Group, porsche, swedbank, Adidas, michelin, Korean Hydro And carlsbergamong others.
After this, investors also keep an eye on tech stocks. The Wall Street Journal reported OpenAI’s revenue and new user growth on Tuesday fell short of internal targets.
CFO Sarah Fryer reportedly told company leadership that she is concerned that OpenAI may not be able to pay off computing contracts in the future if its top line does not expand fast enough.
Data released on Wednesday included EU economic sentiment figures and German and Spanish inflation figures.
