The Great Resignation Continues
A quarter of workers surveyed by PwC are expected to change jobs in the next 12 months. Job changing rates are up from 19% last year, as they are increasingly left cash-strapped in a cooling economy while dealing with inflationary pressures.
Intel Spends USD 33 Billion In Landmark Expansion
Intel (INTC.O) will spend over 30 billion euros (USD 33 billion) to develop two chip-making plants in Magdeburg as part of its expansion push in Europe, a deal Chancellor Olaf Scholz hailed on Monday as Germany’s biggest ever foreign investment.
Best Possible Outcome For Blinken Visit
According to Blinken, the trip had achieved its goal because the two sides had restored some senior-level communications. President Xi Jinping expressed that the progress was “very good”.
Today’s News
Saudi Arabia shocked the world with announcements on oil cuts to the global economy. Cuts as much 1 million barrels a day have been confirmed by officials as the OPEC+ alliance of major oil-producing countries faces flagging oil prices and a supply slum.
In an attempt to support the declining cost of crude oil after two subsequent production cuts by OPEC+, members have repeatedly failed to nudge fuel prices to the opposite direction. A 7-hour discussion within the committee has resulted in an extension of earlier cuts in supply through the end of 2024 by a further total of 1.4 million barrels per day.
However, these reductions will not be followed to the dot for selected countries such as Russia, Nigeria and Angola to bring them into line with their actual current production levels.
Despite the oil cuts implemented by Saudi Arabia, the market remains adamant in its decline while current occurrences are as follows:
Oil Slips Alongside Less Aggressive China Rate Cuts
China has just announced its cut benchmark lending rates, which was less than some expected, sowing further concern over the oil demand outlook in the world’s largest crude importer. Thus, causing oil prices to unexpectedly slip further.
Brent crude was down by 5 cents at USD 76.04 a barrel while U.S. West Texas Intermediate (WTI) crude for July was down by 99 cents from last Friday’s close at USD 70.79.
Growing Concerns On Stunted Consumption
Oil edged lower with growing concerns as China’s flagging economic recovery has fallen short of expectations. West Texas Intermediate for August fell from Friday and was trading near USD 71 a barrel.
There was no settlement on Monday in the US due to a holiday. Global benchmark Brent dipped again after losing 0.7% in the week’s opening session.
New Planes To Spike Demands With Jet Fuel
This year’s much anticipated rebound in air travel is hindered, with profound implications for the global oil market. In Asia, China’s unimpressive economic recovery and Russian airspace restrictions have hampered the revival.
Europe’s return to the skies, meanwhile, has been held back by a shortage of pilots and air traffic controllers. And while the US is witnessing a travel boom, jet fuel use still lags pre-pandemic levels thanks to more efficient airplanes.
