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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/may/25/oil-price-as-opec-ministers-meeting-output-deal-business-live
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| Oil price tumbles after Opec deal; UK growth unexpectedly downgraded - as it happened | Oil price tumbles after Opec deal; UK growth unexpectedly downgraded - as it happened |
| (6 months later) | |
| European stock markets have lagged behind their US counterparts. | European stock markets have lagged behind their US counterparts. |
| While New York’s S&P 500 hit another record high, most continental bourses ended the day in the red. | While New York’s S&P 500 hit another record high, most continental bourses ended the day in the red. |
| The FTSE 100 finished a little higher, though, partly due the pound weakening after this morning’s poor GDP figures. | The FTSE 100 finished a little higher, though, partly due the pound weakening after this morning’s poor GDP figures. |
| Chris Beauchamp of IG says: | Chris Beauchamp of IG says: |
| UK and European markets have essentially traded in a sideways fashion for most of the week, and today is no exception. | UK and European markets have essentially traded in a sideways fashion for most of the week, and today is no exception. |
| While US markets clock up new highs Europe remains becalmed, despite the fact that European data has been much stronger of late than its US counterpart. Across the Atlantic, Amazon and Google find themselves locked in a race for $1000; tech firms continue to leave the old economy far behind, with momentum continuing to drive the sector higher. In a bull market, you buy the strongest performing assets – with the Nasdaq 100 nearly a fifth higher year-to-date, it is clear that momentum lies here, leaving the staid S&P 500 and FTSE 100 far behind. | While US markets clock up new highs Europe remains becalmed, despite the fact that European data has been much stronger of late than its US counterpart. Across the Atlantic, Amazon and Google find themselves locked in a race for $1000; tech firms continue to leave the old economy far behind, with momentum continuing to drive the sector higher. In a bull market, you buy the strongest performing assets – with the Nasdaq 100 nearly a fifth higher year-to-date, it is clear that momentum lies here, leaving the staid S&P 500 and FTSE 100 far behind. |
| And that’s all for tonight. Thanks for reading and commenting. GW | And that’s all for tonight. Thanks for reading and commenting. GW |
| Another former Greek prime minister, George Papandreou, has rushed to visit Lucas Papademos in hospital. | Another former Greek prime minister, George Papandreou, has rushed to visit Lucas Papademos in hospital. |
| Former PM G. Papandreou, at the hospital, condemns attack, says "this is a man we asked to come back and help Greece". | Former PM G. Papandreou, at the hospital, condemns attack, says "this is a man we asked to come back and help Greece". |
| Eurocrisis followers may remember that Papandreou was succeeded by Papademos, when his administration was replaced by a government of national unity in late 2011 after seeking its second bailout. | Eurocrisis followers may remember that Papandreou was succeeded by Papademos, when his administration was replaced by a government of national unity in late 2011 after seeking its second bailout. |
| From scene of blast that injured former PM Papademos By @YorgosKarahalis #Greece #Papademos pic.twitter.com/FQthH5r1R0 | From scene of blast that injured former PM Papademos By @YorgosKarahalis #Greece #Papademos pic.twitter.com/FQthH5r1R0 |
| The current governor of the Bank of Greece, Yannis Stournaras, is visiting his predecessor in hospital now. | The current governor of the Bank of Greece, Yannis Stournaras, is visiting his predecessor in hospital now. |
| Stournaras told reporters that the letter bomb attack on Lucas Papademos was “cowardly”, the Kathimerini newspaper reports. | Stournaras told reporters that the letter bomb attack on Lucas Papademos was “cowardly”, the Kathimerini newspaper reports. |
| The attack "will not undermine our morale", says Yannis Stournaras, governor of the Bank of Greece, going in to visit L. Papademos. | The attack "will not undermine our morale", says Yannis Stournaras, governor of the Bank of Greece, going in to visit L. Papademos. |
| The 4% plunge in the oil price tonight shows that Opec hasn’t done enough to curb crude stockpiles. | The 4% plunge in the oil price tonight shows that Opec hasn’t done enough to curb crude stockpiles. |
| Nizam Hamid, ETF Strategist in Europe at wealth manager WisdomTree, says: | Nizam Hamid, ETF Strategist in Europe at wealth manager WisdomTree, says: |
| “Opec’s long-awaited meeting has disappointed investors, with oil prices giving up recent gains after members dashed expectations of deeper cuts to production and merely reiterated the status quo. | “Opec’s long-awaited meeting has disappointed investors, with oil prices giving up recent gains after members dashed expectations of deeper cuts to production and merely reiterated the status quo. |
| “The falls may provide a buying opportunity for investors who believe in the long-term story for oil, but they also highlight the environment of heightened volatility which the commodity is facing. | “The falls may provide a buying opportunity for investors who believe in the long-term story for oil, but they also highlight the environment of heightened volatility which the commodity is facing. |
| “With supply side dynamics undergoing a fundamental shift thanks to the impact of US shale, only decisive action from Opec will boost prices from current levels, and so far investors have not been satisfied that Opec is tackling the issue aggressively enough.” | “With supply side dynamics undergoing a fundamental shift thanks to the impact of US shale, only decisive action from Opec will boost prices from current levels, and so far investors have not been satisfied that Opec is tackling the issue aggressively enough.” |
| It’s good news for countries who import oil, of course. Car drivers might not see such sharp price rises at the forecourt.... | It’s good news for countries who import oil, of course. Car drivers might not see such sharp price rises at the forecourt.... |
| Greek TV are reporting that Lucas Papademos’s injuries are not life-threatening, following this afternoon’s explosion. | Greek TV are reporting that Lucas Papademos’s injuries are not life-threatening, following this afternoon’s explosion. |
| The ex-PM has been taken to a hospital in Athens. | The ex-PM has been taken to a hospital in Athens. |
| The oil selloff is accelerating -- Brent crude is now down almost 4.5% at $51.60 per barrel. | The oil selloff is accelerating -- Brent crude is now down almost 4.5% at $51.60 per barrel. |
| That shows that the markets aren’t impressed by the plan to extend existing output cuts for another nine months. | That shows that the markets aren’t impressed by the plan to extend existing output cuts for another nine months. |
| Oil pic.twitter.com/zfGG8mMnHC | Oil pic.twitter.com/zfGG8mMnHC |
| Neil Wilson of ETX Capital says investors are disappointed that Opec didn’t agree deeper production cuts: | Neil Wilson of ETX Capital says investors are disappointed that Opec didn’t agree deeper production cuts: |
| OPEC members had a chance today but bottled it. A nine-month extension just isn’t enough to really lift oil prices as we’ll continue to see US shale fill the gap. Having said they’d do whatever it takes, OPEC is looking a bit toothless now. | OPEC members had a chance today but bottled it. A nine-month extension just isn’t enough to really lift oil prices as we’ll continue to see US shale fill the gap. Having said they’d do whatever it takes, OPEC is looking a bit toothless now. |
| Instead of deepening cuts they are continuing to tinker at the margins by curbing production by around 1.8m barrels/day along with several non-OPEC members. It also looks like no new non-OPEC members are joining the curbs, which would have helped. | Instead of deepening cuts they are continuing to tinker at the margins by curbing production by around 1.8m barrels/day along with several non-OPEC members. It also looks like no new non-OPEC members are joining the curbs, which would have helped. |
| Newsflash from Athens: There are reports that a bomb has gone off inside the car of former Greek prime minister Lucas Papademos. | Newsflash from Athens: There are reports that a bomb has gone off inside the car of former Greek prime minister Lucas Papademos. |
| Greek police say that Papademos and his driver have both been injured, but we don’t have any more details. One report says it was a letter bomb. | Greek police say that Papademos and his driver have both been injured, but we don’t have any more details. One report says it was a letter bomb. |
| Papademos, who was also Greek central bank chief and a ECB vice-president, was installed as interim PM in 2011 after Greece signed up for a €130bn bailout. | Papademos, who was also Greek central bank chief and a ECB vice-president, was installed as interim PM in 2011 after Greece signed up for a €130bn bailout. |
| Preliminary reports suggest ex-PM Lucas Papademos and his driver injured in car blast in central Athens #Greece | Preliminary reports suggest ex-PM Lucas Papademos and his driver injured in car blast in central Athens #Greece |
| EXPLOSIVE DEVICE DETONATES INSIDE CAR OF FORMER GREEK CENTRAL BANKER LUCAS PAPADEMOS, INJURING HIM AND HIS DRIVER- GREEK POLICE | EXPLOSIVE DEVICE DETONATES INSIDE CAR OF FORMER GREEK CENTRAL BANKER LUCAS PAPADEMOS, INJURING HIM AND HIS DRIVER- GREEK POLICE |
| Press reports that Papademos opened letter bomb, injuring himself and his driver. Both rushed to Greece¨s largest hospital Evangelismos. | Press reports that Papademos opened letter bomb, injuring himself and his driver. Both rushed to Greece¨s largest hospital Evangelismos. |
| Letter bombs have been sent to several senior figures from the eurozone crisis in recent months, including German finance minister Wolfgang Schaeuble. One exploded at the International Monetary Fund’s headquarters in Paris in March, injuring a member of staff. | Letter bombs have been sent to several senior figures from the eurozone crisis in recent months, including German finance minister Wolfgang Schaeuble. One exploded at the International Monetary Fund’s headquarters in Paris in March, injuring a member of staff. |
| Oil prices are on the slide, following the news that Opec and non-Opec members have agreed to extend their production cuts until March 2018. | Oil prices are on the slide, following the news that Opec and non-Opec members have agreed to extend their production cuts until March 2018. |
| Brent crude is down 2% at $52.82, while New York crude has dropped by 2.7%, below $50 per barrel. | Brent crude is down 2% at $52.82, while New York crude has dropped by 2.7%, below $50 per barrel. |
| Oil prices fall below $50, tanking 3% as #OPEC output cut extension disappoints the market. #OOTT | Oil prices fall below $50, tanking 3% as #OPEC output cut extension disappoints the market. #OOTT |
| Brent, WTI hits day's low; WTI drops below $50/bbl #OOTT #Oil #OPEC | Brent, WTI hits day's low; WTI drops below $50/bbl #OOTT #Oil #OPEC |
| Traders may be concluding that the deal won’t succeed in propping prices up, as US shale producers can boost their own output. | Traders may be concluding that the deal won’t succeed in propping prices up, as US shale producers can boost their own output. |
| Delegates are briefing reporters in Vienna that a nine-month extension has been agreed, by Opec and non-Opec members. | Delegates are briefing reporters in Vienna that a nine-month extension has been agreed, by Opec and non-Opec members. |
| That means oil producers will continue to cut 1.8 million barrels per day off their combined output. | That means oil producers will continue to cut 1.8 million barrels per day off their combined output. |
| #BREAKING: #OPEC and non-OPEC agree 9-month oil-cuts extension: Delegates#OOTT #Oil | #BREAKING: #OPEC and non-OPEC agree 9-month oil-cuts extension: Delegates#OOTT #Oil |
| OPEC/non-OPEC agree 9-month oil cuts extension - delegate - BBG #OOTT | OPEC/non-OPEC agree 9-month oil cuts extension - delegate - BBG #OOTT |
| Energy reporters are racing around the Opec headquarter again, as the official announcement from oil cartel is imminent. | Energy reporters are racing around the Opec headquarter again, as the official announcement from oil cartel is imminent. |
| The rush upstairs for the 2nd time #OOTT #OPEC pic.twitter.com/OevbS3llpn | The rush upstairs for the 2nd time #OOTT #OPEC pic.twitter.com/OevbS3llpn |
| Over in New York, the S&P 500 has hit a fresh record high in early trading. | Over in New York, the S&P 500 has hit a fresh record high in early trading. |
| The technology-focused Nasdaq is also hitting all-time record levels | The technology-focused Nasdaq is also hitting all-time record levels |
| Traders aren’t worried by the prospect that US interest rates will rise next month. | Traders aren’t worried by the prospect that US interest rates will rise next month. |
| Chris Beauchamp of IG says: | Chris Beauchamp of IG says: |
| Traders arrived at their desks this morning having seen the Fed minutes warn of overvaluations in asset prices, and hint at further policy tightening later in the year, and yet were confronted with new record highs in the S&P 500 and the MSCI world index, while the US dollar is under pressure again. What an odd world we live in. | Traders arrived at their desks this morning having seen the Fed minutes warn of overvaluations in asset prices, and hint at further policy tightening later in the year, and yet were confronted with new record highs in the S&P 500 and the MSCI world index, while the US dollar is under pressure again. What an odd world we live in. |
| Fresh all-time highs for the S&P500 but Dow still not quite there yet - around 80 points to go. pic.twitter.com/POnJykV3Z1 | Fresh all-time highs for the S&P500 but Dow still not quite there yet - around 80 points to go. pic.twitter.com/POnJykV3Z1 |
| Reuters are also reporting that Opec has agreed to curb supply levels for another months: | Reuters are also reporting that Opec has agreed to curb supply levels for another months: |
| OPEC decided on Thursday to extend cuts in oil output by nine months to March 2018, OPEC delegates said, as the producer group battles a global glut of crude after seeing prices halve and revenues drop sharply in the past three years. | OPEC decided on Thursday to extend cuts in oil output by nine months to March 2018, OPEC delegates said, as the producer group battles a global glut of crude after seeing prices halve and revenues drop sharply in the past three years. |
| The cuts are likely to be shared again by a dozen non-members led by top oil producer Russia, which reduced output in tandem with the Organization of the Petroleum Exporting Countries from January. | The cuts are likely to be shared again by a dozen non-members led by top oil producer Russia, which reduced output in tandem with the Organization of the Petroleum Exporting Countries from January. |
| OPEC’s cuts have helped to push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets. | OPEC’s cuts have helped to push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets. |
| OPEC extends oil output cut by nine months to fight glut https://t.co/sio1ohJXRT pic.twitter.com/8WxTsb4aut | OPEC extends oil output cut by nine months to fight glut https://t.co/sio1ohJXRT pic.twitter.com/8WxTsb4aut |
| Newsflash from Vienna: The Opec meeting has finished. | Newsflash from Vienna: The Opec meeting has finished. |
| The cartel are now being joined by non-Opec countries, to discuss whether they would also support today’s rumoured deal to cut supplies for another nine months. | The cartel are now being joined by non-Opec countries, to discuss whether they would also support today’s rumoured deal to cut supplies for another nine months. |
| #OPEC meeting has finished - OPEC spokesperson | #OPEC meeting has finished - OPEC spokesperson |
| The first meeting is over; now time for non-opec to join #OOTT #OPEC | The first meeting is over; now time for non-opec to join #OOTT #OPEC |
| Dutch bank ING don’t think Opec’s supply cuts will work, as America’s shale industry (which won’t be part of the deal) can boost its own production levels. | Dutch bank ING don’t think Opec’s supply cuts will work, as America’s shale industry (which won’t be part of the deal) can boost its own production levels. |
| The #OPEC production cut extension is half-baked and sounds like a stuck record. Safe to say ING's Hamza Khan is not impressed.#oil pic.twitter.com/Z9sYETOqYd | The #OPEC production cut extension is half-baked and sounds like a stuck record. Safe to say ING's Hamza Khan is not impressed.#oil pic.twitter.com/Z9sYETOqYd |
| The latest US trade data is a little disappointing. | The latest US trade data is a little disappointing. |
| America’s trade deficit has widened, to $67.5bn in April from $65.0bn. That’s because exports shrank by 0.9%, with US firms selling fewer cars and consumer goods overseas. Imports rose by 0.7%. | America’s trade deficit has widened, to $67.5bn in April from $65.0bn. That’s because exports shrank by 0.9%, with US firms selling fewer cars and consumer goods overseas. Imports rose by 0.7%. |
| That suggests that America’s economy may not be rebounding as strongly as hoped from its weak first quarter. | That suggests that America’s economy may not be rebounding as strongly as hoped from its weak first quarter. |
| But...the latest jobs data is more encouraging. | But...the latest jobs data is more encouraging. |
| The number of Americans filing new claims for unemployment benefit rose by 1,000 last week, to 234,000. That’s lower than the 237,000 which Wall Street had expected, and close to its lowest levels in decades. | The number of Americans filing new claims for unemployment benefit rose by 1,000 last week, to 234,000. That’s lower than the 237,000 which Wall Street had expected, and close to its lowest levels in decades. |
| Back over in Vienna, Opec ministers have been hammering out an agreement to extend their existing production cuts. | Back over in Vienna, Opec ministers have been hammering out an agreement to extend their existing production cuts. |
| There’s nothing official yet, but the word on the ground is that the cartel will keep its current supply cuts for another nine months, through to March 2018. | There’s nothing official yet, but the word on the ground is that the cartel will keep its current supply cuts for another nine months, through to March 2018. |
| That’s what investors had largely expected.... | That’s what investors had largely expected.... |
| ...so the markets have shown their contrary nature, by sending the oil price down a bit. | ...so the markets have shown their contrary nature, by sending the oil price down a bit. |
| Not everyone is impressed by OPEC's decision to extend cuts. The price of oil has fallen https://t.co/o6NVtlOHp7 pic.twitter.com/zFDzttVGiy | Not everyone is impressed by OPEC's decision to extend cuts. The price of oil has fallen https://t.co/o6NVtlOHp7 pic.twitter.com/zFDzttVGiy |
| Brent crude is now down 1% at $53.43 per barrel, a whole dollar per barrel less than this morning. | Brent crude is now down 1% at $53.43 per barrel, a whole dollar per barrel less than this morning. |
| That’s partly due to our old friend ‘buy the news, sell the rumour’. | That’s partly due to our old friend ‘buy the news, sell the rumour’. |
| But there’s also some disappointment that Opec didn’t agree deeper cuts. Instead, they’re sticking to the 1.8m barrel a day deal first agreed in late November extended to March 2018. | But there’s also some disappointment that Opec didn’t agree deeper cuts. Instead, they’re sticking to the 1.8m barrel a day deal first agreed in late November extended to March 2018. |
| Why the #oil sell-off?"Disappointment #OPEC hasn't done more to balance the market," says Olivier Jakob @Petromatrix.#OOTT #shale #Brent pic.twitter.com/Q7D0M3qpiw | Why the #oil sell-off?"Disappointment #OPEC hasn't done more to balance the market," says Olivier Jakob @Petromatrix.#OOTT #shale #Brent pic.twitter.com/Q7D0M3qpiw |
| George Buckley, UK economist at Nomura, is concerned that Britain’s growth rate is now lagging behind European rivals. | George Buckley, UK economist at Nomura, is concerned that Britain’s growth rate is now lagging behind European rivals. |
| He writes: | He writes: |
| This is the first time in a year that UK growth failed to outpace that of the euro area (on average over the past 3-4 years the UK has grown a couple of tenths per quarter more strongly than the euro area). | This is the first time in a year that UK growth failed to outpace that of the euro area (on average over the past 3-4 years the UK has grown a couple of tenths per quarter more strongly than the euro area). |
| While UK real GDP is broadly the same as that of Germany relative to where it was at the start of 2008, Germany has produced its 8.5% increase in aggregate output over that period with no change in its population, compared a 6% rise in UK headcount (though the UK has experienced a more sizable rise in its dependency ratio). On a per capita basis, UK GDP did not expand at all in the first quarter of this year (in separate figures also published today official net migration fell to its lowest in three years – 248k in 2016). | While UK real GDP is broadly the same as that of Germany relative to where it was at the start of 2008, Germany has produced its 8.5% increase in aggregate output over that period with no change in its population, compared a 6% rise in UK headcount (though the UK has experienced a more sizable rise in its dependency ratio). On a per capita basis, UK GDP did not expand at all in the first quarter of this year (in separate figures also published today official net migration fell to its lowest in three years – 248k in 2016). |