OPEC+ is considering cutting oil production by 1 million barrels per day after their meeting on Wednesday.
If agreed, this will be the group’s second consecutive monthly cut after reducing output by 100 000 barrels per day last month.
In other news, US and Euro Zone inflation continue to tick higher while US consumers increase spending.
Tesla missed analyst expectations despite a large increase in vehicle deliveries to 343 000 vehicles in the third quarter.
Here is the biggest news of the day.
- OPEC+ is considering cutting oil production by 1 million barrels per day after their meeting on Wednesday. If agreed, this will be the group’s second consecutive monthly cut after reducing output by 100 000 bpd last month.
- US inflation ticks higher while consumer spending increases. The personal consumption expenditures (PCE) price index rose 0.3% for the month of August after dipping 0.1% in July. Excluding the volatile food and energy components, the PCE price index jumped 0.6% after remaining flat in July. The PCE is the Fed’s preferred inflation gauge to watch over CPI. Wage growth slowed, only rising 0.3%, after a 0.8% increase in July. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4% after falling 0.2% in July.
- Eurozone inflation hits record high of 10.0%, while France bucks the trend. The inflation reading matched that of Germany and was still driven mainly by volatile energy and food prices but continued to broaden out to other categories. The European Central Bank (ECB) is expected to raise rates by 0.75% in October. Meanwhile, French inflation slowed for the 2nd consecutive month with their inflation reading falling from 6.6% to 6.2% after peaking at 6.8% in July.
- Tesla delivered 343 000 vehicles in the third quarter of 2022, a significant increase on the 241 300 vehicles delivered in the same quarter last year. The deliveries however still missed analyst expectations of 364 660 vehicle deliveries. Total production rose from 258 580 vehicles in the same period last year to 365 000 for this quarter.
- China’s Sinopec plans to de-list ADSs from London Stock Exchange. China Petroleum and Chemical Corp, known as Sinopec, is the world’s biggest oil refiner by capacity. The company noted that its board had already approved the de-listing, which is intended to take effect at the start of November.