Opec, Bloomberg, Nicholas Sturgeon discussed on Bloomberg Daybreak Europe


The first time yesterday Nicholas sturgeon will also take questions Dozens of migrants cross the English Channel into the UK yesterday the home office says at least 66 people were on board two boats which were intercepted by the RN ally They are believed to be the first such arrivals to reach Britain in 2022 And we have touched on the great resignation throughout the pandemic right here on Bloomberg radio and now even more news on it A record 4.5 million Americans quit their jobs in November highlighting the persistent churn in the labor market the increase in departments was brought across all industries and pushed the quit rate of 3% matching the most in data going back to 2000 The unprecedented level of resignations include a record 1 million and leisure and hospitality alone suggests a lingering struggle for employees to retain talent Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalists and analysts in more than 120 countries I'm Leanne guerins This is Bloomberg Tom Lee thank you Okay now back to one of our top stories this morning OPEC and its allies have agreed to increase oil output the group is sticking to its plan to gradually restore output halted during the pandemic proving a 400,000 barrel a day increase Bloomberg's Paul Wallace joins us from London He's heads up our coverage of energy and commodities in the Middle East and North Africa Paul not a major surprise this decision to increase output What does it signal though about OPEC plus views on the oil market and demand Hi Tom Yes it was a pretty smooth meeting yesterday and it went almost exactly as traders had expected Despite that increase of 400,000 barrels a day and that OPEC has agreed to do next month The market is oil markets are still up this year By about two 3% And traders are taking as a sign that OPEC plus is confident on the current won't have too much of a negative impact on oil consumption over the next few months So for the oil balls that's definitely a positive signal Have the other point is that OPEC plus is almost certainly not going to actually add 400,000 barrels a day to the market not because it doesn't want to but because of production problems in various members So how much do you think is actually going to hit markets this month and next Depending on which analysts you speak to the estimates vary from just a 150,000 barrels a day to 253 100,000 barrels a day But there are plenty that think that OPEC plus right now is basically only able to add half of what it actually agrees to You've got problems in Angola You've got problems in Nigeria And even a major major member like Russia even Russia is nearing its capacity if it's not already there But where do things stand on the question of Iran negotiations in Vienna continuing over their nuclear program with the U.S. and others Is Iran close to adding supply this year This is one of the big questions for global oil markets this year just what is going to happen as far as Iranian supplies are concerned Oil markets are watching the nuclear talks in Vienna very very closely and looking for any signs that a deal is imminent The consensus seems to be that there won't be a deal that anything of your sanctions on Iran until at least the middle of this year But the parties are on and the other powers the U.S. and the EU and Russia and others are in talks at the moment and 8th round of talks And if there is any sign that actually a deal could come soon that's something that will probably put downward pressure on oil markets because Iran could ramp up production quite quickly and add a million barrels a day to the market Within months Paul just briefly is OPEC plus trying to target a particular price in the oil markets at the moment First mix up that no that's very much not its strategy It always says and has repeated this in the last few months that it's trying to set out a balanced market now you could say that's pretty subjective and you could argue what that actually means but they say they're not targeting specific price However if you look at the if you look at the economics of some of the major members Saudi Arabia the UAE and others it's pretty clear that they need prices to be around 75 $80 a barrel to break even when it comes to the fiscal accounts and that kind of comp balances as well So they're sitting pretty at the moment they definitely wouldn't want oil to go substantially below $75 a barrel Okay thank you Bloomberg's Paul Wallace.

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