OPEC+ will assess reducing production cuts
The Organization of Petroleum Exporting Countries (OPEC) will hold a technical meeting on Tuesday and Wednesday in order to assess the market`s current situation and give the organization`s Ministers a suggestion as to whether production cuts should be kept at 9.7 million daily barrels (approved in May). Among the organization`s plans, an easing of production cuts was already being considered in case there was a sustained recovery in prices, which has led markets to wait for less restrictions to production in the following months. The OPEC seems to have successfully stabilized crude oil prices in recent months, and now looks to gradually reactivate production in order to strengthen its member countries` revenues without causing an oversupply. The recovery in demand for crude oil also helped boost prices, but the persistent acceleration of COVID-19 cases at a global level and the risk of a second outbreak still threaten the market`s outlook regarding oil. The majority of countries are leaning towards a reduction in cuts, which could go to 7.7 mdb, according to the organization`s previous plans.
China sanctions United States officials
Pekin`s government has announced sanctions on US congressmen and officials, some of which include senators Marco Rubio and Ted Cruz. According to the Chinese Foreign Ministry, the sanctions are in response to the legislators` wrongful actions of interfering in Chinese internal affairs and threatened to carry out further actions if the situation continues to develop. China did not reveal what the sanctions consist of, but announced their implementation start this Monday. Legislator Chris Smith and the US Executive-Legislative Commission on China were also sanctioned as a response to the US imposing visa restrictions on officials and sanctions on Chinese institutions for the abuse of Muslim minorities in the Xinxiang province. Tensions between both countries prevail land it`s speculated that President Trump could take a more aggressive stance against China in light of the upcoming presidential elections.