Oil prices: Saudi Arabia aims to lose market share, easing pressure on oil prices: Richard Harris

Let me first discuss the kind of momentum that is being seen with China before moving on to other global markets. I’m working for them right now, but I don’t know if it can really resurrect the economy like it may have been intended.
Richard Harris: Well, China watchers have been waiting for this moment for most of the year. I think in January I was predicting that the economy was so slow that the authorities in China had to take action and now they have. The early stages and some of the announcements earlier in the week weren’t as impressive as we thought. But now ads come out all the time.

For example, yesterday there was talk that there may be some help for the grassroots, people who are in poverty, students looking for work, this type of thing, which is a departure from the previous, well, let’s put money in the stock market or let’s put money in banks or in the real estate market. So I think it has been a pivot and it has been quite important. But it’s also important to remember that a lot of this will be locked down tomorrow. I think the Chinese authorities are still quite cautious. They’re advertising quite a bit, but equally, some of this is more of a continuation if things don’t work out than the policies that are in place today. But I think what has changed in China since the beginning of the week is that we are now looking at an environment where China is less likely to underperform. It has underperformed other global markets for how many years. It’s less likely to do that. Even if it performs in line, it’s worth investors taking another look and I think that’s one of the reasons the markets are going up.What role do you think it will play in the short term in all this? OPEC Or would the oil market play because falling oil is an indication that demand is falling? Do you think that’s something that could be an omen of where global demand is heading?
Richard Harris: Well, I think oil demand has been slowing in recent years anyway, due to environmental problems. So maybe we’re seeing some demand from the top. But I think oil prices have really been exacerbated by the fact that we’ve had a lot of geopolitical risk. Especially in the Middle East, we’ve had Israel-Gaza, we’ve had Russia-Ukraine, all issues where the price of oil was likely to skyrocket.Additionally, the news that Saudi Arabia may come in and not seek to support higher oil prices, but instead try to regain some of the market share that they have perhaps lost to other competitors in recent years, is also great news. in terms of lowering the price of oil.

I don’t think the oil price right now necessarily portends a slowdown, although there is clearly a slowdown in some of the global markets and it could actually be quite positive for growth. Therefore, I think the oil price right now is more of a neutral indicator than an indicator in any sense.

Also, what do you think of the reading we have done? inflation as well as US jobs data now indicates that no impact is being seen on the treasury returnseven after the Federal Reserve rate cut. They are increasing.
Richard Harris: Well, I think it’s the old story of buying before the event and then selling at the event and vice versa. I think the markets had forecast pretty well, if not 50 basis points, maybe 25 to 50.

I think maybe the Treasury markets are taking a breather, just watching how things are happening. We’re seeing relatively small movements there. But, again, I don’t think they are significant at the moment.

The interest rate narrative, as you were saying a moment ago, really made its way into the market and stopped a little bit once Powell spoke and cut rates and I think we’re looking at other narratives now. The largest, of course, in the market is China.