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[introduction] international oil prices fell in the short term, with wti plummeting nearly 3%!

china fund news reporter taylor

brothers and sisters, have a nice weekend! tonight, let’s take a quick look at the news from overseas markets.

oil prices plunge

on the evening of august 30, international oil prices suddenly plummeted.

on the news front, it was reported that opec+ will proceed with planned oil production increases from october as supply disruptions in libya and commitments by some member countries to cut production to make up for overproduction offset the impact of weak demand.

under the plan, eight opec+ members will increase production by 180,000 barrels per day in october as part of a gradual unwinding of the latest round of 2.2 million bpd cuts, while other cuts will remain in place until the end of 2025.

the slowdown in demand growth has weighed on oil prices and prompted some analysts to question whether the organization of the petroleum exporting countries and its allies, a group known as opec+, will go ahead with plans to increase production in october.

but six opec+ sources said plans to increase production would continue as lower output from libya tightened the market and amid hopes that the federal reserve will cut interest rates in mid-september.

"on the one hand there is a lot of uncertainty about demand, but there is also hope that the fed's rate cut will boost economic growth," said one of the sources.

us stocks opened higher and closed lower

tonight, the three major u.s. stock indexes opened higher, but then the dow jones industrial average turned lower and the nasdaq's gains gradually narrowed.

data released by the u.s. department of commerce on august 30 showed that the pce price index rose 2.5% year-on-year, and the core pce price index in july, excluding food and energy prices, rose 2.6% year-on-year. the pce price index is an important reference for the federal reserve to judge the level of inflation in the united states, and it may still affect policymakers' interest rate decisions in september.

u.s. president biden recently said that the pce report showed progress, but prices are still too high.

markets reacted mutedly to the news, with joseph brusuelas, chief economist at rsm, writing in a note: "these data suggest that price stability is returning to the u.s. economy."

the report comes as markets are all but certain of a rate cut in september, with the only uncertainty being whether the fed opts for a smaller 25 basis point cut or a more aggressive 50 basis point move.

after friday's data, markets were leaning toward a smaller 25 basis point rate cut, while the probability of a 50 basis point cut fell to 30.5%.

have a nice weekend everyone~