ICYMI – Saudi Oil Minister warns oil output could drop 30% due to lack of capex

Bloomberg (may be gated) carried the report overnight:

  • “We’re heading toward a phase that could be dangerous if there’s not enough spending on energy”
  • result could be an “energy crisis”
  • daily oil output may fall by 30 million barrels by 2030
  • “We have very serious concerns that the world could run short of energy if we are not careful in managing the transition,”
  • “In Saudi Arabia, we have an interest in maintaining demand. We are also worried that demand is increasing and there are no alternatives to fill that gap and we don’t want oil prices to go too high.”
saudi oil

Moody’s says the Fed’s FOMC will be walking a fine and dangerous line this week (preview)

Analysts at Moody’s have published their preview, warning that the Federal Reserve is facing a delicate balance:

  • “If the market perceives that the Fed is behind the curve in controlling inflation, it would lead to higher inflation expectations and long-term interest rates, potentially weakening the dollar and affecting asset values,”
  • While, on the other hand, if the Fed overreacts to inflation, “it could result in tightening monetary policy too much, in turn dampening economic growth”

The FOMC begins their meeting today, Tuesday 14 December 2021 (US time) with the statement due at 1400 ET on Wednesday, 15 December 2021 .

  • which is 1900 GMT

Federal Reserve Chair Powell will conduct his post-statement news conference from 1430 ET (1930 GMT).

Jerome Powell
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