FT News Briefing Opec+’s production conundrum
Jun 5, 2024
Russia's Gazprom faces a long road to recovery in gas sales due to the Ukraine conflict. India’s Prime Minister Modi is poised for a historic third term, but with a weakened majority. Meanwhile, the U.S. labor market shows signs of cooling, alleviating pressure on the Federal Reserve. OPEC+ faces challenges in maintaining oil prices, as it announces production cuts and plans gradual supply increases. The interplay of these political and economic factors shapes a volatile global landscape.
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Gazprom's Struggles
- Gazprom, hit by sanctions, faces a decade-long recovery for lost gas sales.
- Their limited LNG production makes them vulnerable, unlike other energy companies.
Modi's Victory and Market Reaction
- Modi's third term win is less decisive than predicted, with BJP losing its majority.
- This outcome introduces instability, concerning investors who favored Modi's pro-business stance.
US Labor Market Cools
- The US labor market is showing signs of cooling down, with job openings falling.
- Despite this, the economy remains strong, suggesting the Fed won't cut rates soon.