OPEC+ fears an increase in oil production in the United States under Trump

OPEC+ expresses concern about a possible increase in oil production in the United States after Donald Trump returns to the White House. The expansion of U.S. supplies could undermine the alliance's efforts to maintain prices and reduce its market share.

OPEC+, which produces about half of the world's oil, recently extended production restrictions until the end of 2026 due to weak demand and production growth in the United States and other countries outside the alliance. At the same time, the United States continues to hold the lead, providing 20% of global supplies.

The US shale boom has long been a challenge for OPEC. Now, delegates note that a possible easing of environmental policy under Trump may stimulate further production growth.

«Trump's return may be a boon for the American oil industry, but it's bad news for us,» said a representative of one of the OPEC+ member countries.

An additional increase in production in the United States jeopardizes the alliance's plans to increase production from April 2025, as this could trigger a collapse in prices. Trump, in turn, plans to increase production in order to lower energy prices and fight inflation, which he promised voters.
More news on our website: https://bit.ly/4a81506

The Bank of England suspends rate cuts due to rising inflation

On Thursday, the Bank of England concluded its last meeting of the year, leaving the key rate unchanged. This decision turned out to be expected, given that inflation in the UK has reached an eight-month peak. Economists feared that raising rates could have a negative impact on the economy, which is already experiencing difficulties.

Earlier this year, the Bank of England has already cut the key rate twice, reducing it from 5.25% to 4.75%. Nevertheless, the latest data on rising inflation in November and higher wages in the summer forced financial markets to reconsider their expectations about possible interest rate cuts in the future. Market participants now assume that next year the decline will be about 50 bps, which is lower than the previous forecast of 70 bps.

The Bank of England's decision followed a move by the US Federal Reserve, which also cut rates by a quarter point. Although the decline was expected, traders were surprised by the central bank's assumption that further rate cuts would be negligible, only twice in 2025.
More news on our website: https://bit.ly/4a81506

China will maintain its leadership in car exports, despite EU duties

China will maintain its leading position among global car exporters in 2025. Despite this, the volume of supplies will significantly decrease due to the introduction of additional duties by the European Union on electric vehicles manufactured in China.

Europe, as the largest overseas market, remains an important source of revenue for Chinese automakers who seek to minimize the impact of trade barriers by introducing gasoline and hybrid models.

Large companies such as SAIC Motor are expanding their product lines with hybrid technologies. Hua Chuang Securities estimates that Chinese car exports could reach 5.58 million units in 2025, up 14% from a year earlier, but significantly lower than the 29% increase this year and 58% in 2023, when China surpassed Japan.

According to Canalys, Chinese car exports grew by 27% in the first three quarters, reaching 3.1 million units. However, EU duties ranging from 17% to 35.3% will weaken demand for electric vehicles. SAIC Motor already offers hybrid versions of the MG3 and MG ZS models to retain European customers.

In October, the EU imposed new five-year tariffs on Chinese EVs, supplementing the standard 10% tax. They also affect brands such as Volkswagen and BMW, which produce cars in China.
More news on our website: https://bit.ly/4a81506