that opec cans point to to say that it is working.ilhat, opec policy policy has been able to be a little bit separate from politics. if you look at opec members, there are disparate economies and lyrical systems. -- political systems. oil policy can be one agreement point. tracy: libya and nigeria had been exempted from the last deal. they agreed not to lift production above peak levels. how fundamental is that? ed: if you look at the so-called cutters that were part of the deal, they had a pretty good level of compliance in taking over 1.5 million barrels from the market throughout 2017. afterward, it was pretty much halved. live upey are able to to their terms of the arrangement and not increase production beyond maximum 2017 levels, that would go a long way toward not making the opec train run off the rails. libya, oil production is volatile. seems kind of notional at best. tracy: turning to one of the major issues that opec faces, the return of u.s. shale. this is the wti calendar for 2018. it is the benchmark against which shale

end up four to opec plants. yes definitely you can say that and this is indeed exactly what has been going on so far in the opec so saudi arabia for example and iran have repeatedly agreed on cutting the output in order to help the historically low price to stabilize but as the united states are just not part of the opec this deal never kept them from producing more oil and on top of that the technology behind fracking has been improving so it has never been easier and cheaper for the u.s. to produce oil so total u.s. crude production currently runs at nine point five million barrels a day and is expected to even add eight hundred thousand to one million barrels per day annually so crude oil gushes out of the u.s. like never before and this puts a lot of pressure on the price of oil and so if you the dow jones is jump past the twenty four thousand mark for the first time what is driving it. so yes the dow soared to new record highs it actually had the best day off the year twenty seventeen twenty four thousand p

the production flow down a little i mean without russia opec would be completely irrelevant and it's really important to note that there's two countries on the monitoring committee for these production cuts it's russia and the saudis so opec is kind of this ragtag group of countries there's a lot of countries with some economic and political upheaval going on and so there's questions about whether or not there's going to be integrity with some of these pitches and goals on the production cuts and even within russia there's disagreement there are some russian oil producers. you know i don't want to see these cuts because they want to bring money as much as possible so. you know and since one thousand nine hundred two. opec has had a ninety six percent cheating rate on its stated production targets and so there's a lot of opportunities here for countries within opec to cheat on these targets and i know for that that first year you know this this year that we're currently in there are these issues because you know iran was still below production because of the sanctions and they wanted

thank you again for being with us it's always my pleasure so tell me how has this impacted this cut opec in the other countries how has it really impacted prices or has it since they agreed to it about a year ago you know not much it's really just a couple dollars a barrel and you know last night we saw oil prices go down two percent after going up a couple dollars right after the announcement the fact is that opec isn't as big of a deal anymore yes they can announce taking one and a half million barrels of oil off the market but the real drivers right now are what's going on with consumption and the biggest question marks there are what's going on with the chinese economy is it going to grow or is it going to contract and of course replacing gasoline powered transportation with electric vehicles and other alternative forms of transit that's really what is threatening price as more of an opec cuts you know what used to be that every gotten tiddle that opec did anything that they did really did move prices but do so many other large energy producers in the space the u.s. of course and rus

which opec showed up? edward: it is a different opec and cycle.e in the long run, because the world has changed are medically since those opecs at other points in time. tom: the cartel is one price. does saudi set the price? edward: the u.s. has a much bigger role now than they have done before. the higher the price goes now, and i know it is an old adage, the more there will be oil in the market, and not just u.s. oil. it is oil coming out of unconventional resources. costs of producing these are well below the fiscal breakevens of these opec countries. francine: talk to me about demand. can demand rise significantly to absorb all of the supply that is coming in from the shale producers? edward: there is a hope that oil demand growth will be brisk, but there is a problem on the demand side. oil effectively is just a transportation fuel. oil demand growth over the last five years is coming from jet fuel, gasoline, and petrochemicals. the lower end of the barrel used by industries is no longer there. it has got a kind of monopoly in the transportat

and on opec members. get back to one of our top stories. japan's inflation seems to be inching higher. consumer prices show at least a continues to go in the right direction. let's get over to the new york where kathleen hays is here, crunching the numbers. we are also looking at the federal reserve. another official getting ready to hike rates regardless of low inflation. let's start off with the fed, if you will. who's talking this time? existsn: the conundrum in so many developed countries. we are talking about loretta mester. she has been hawkish in the past , but she steps down in washington with our own michael just like she said, jay powell, the incoming fed chair had a couple of days ago, she agrees the case is there for a december rate hike. let's see what she said. >> we really need to be moving interest rates up gradually given where the economy is pure growth is at a sustainable pace. labor markets continue to improve. kathleen: it is not just the labor market. the consumer is holding up reaso

of jurors here now in oil is at above that sixty dollars mark right now and opec sure want to say see it stays there absolutely liz that is the name of the latest deal they agreed to in vienna on thursday opec will keep the pumps on low revs extending a cap on global supplies for the next nine months saudi arabia believes the market has yet to rebalance and warns it's premature to talk about exiting the cuts at least for a couple of quarters due to on rest in libya and lower than normal production in nigeria opec members also decided to limit nigeria's output but have yet to agree on a cap for libya. so what impact did this decision have on markets let's bring in danielle cope at the frankfurt stock exchange danny a opec always a green zone something and then some of the members do what they want anyway is opec as an organization still in charge. well you do really have to keep in mind care that opec of course is an organization that can give recommendations to the member and nonmember slaves but the end they don't have any legal option to say ok you produce this mound of oil and you

we have seen an increase of global compliance from opec and opec countries.ober are very encouraging, and we expect november to reflect this as well. ours: for more let's get to bloomberg markets middle east anchor. good to see you this morning. did we get a little bit of a surprise? you've got libya joining in. i thought that was a surprise. you have libya and nigeria. give us the lowdown. yousef: what is fascinating to see, these two heavyweights, russia and saudi arabia side-by-side sharing what they thought is a competent outlook for energy in 2018. some have described it as a bromance. at the end of a very long day here in the ni, a little surprise. got in terms of inclusion of libya and nigeria, what happens now is not a formal cut or cap. it is locking in a pledge to not use beyond 2017 levels, which shows you how opec non-opec is willing to refine this deal a little bit and push these expectations to the side. the russian minister talks to me earlier. pledginguntries are for full conformity. it is very important to us. andives us an opportunity assess

he also said opec will study an exit strategy at its midyear meeting.he partners agree to curb production until the end of next year at their meeting. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. yousef: thanks. let's get right into the huge week that lies ahead for central banks. the fed decision wednesday. the market sees 90% chance of a hike based on fed fund futures. see voting 9-0 in favor of keeping rates on hold. we get the ecb's latest decision that they come a details could be revealed about how it's qe program will be reduced. let's get some more context from singapore. do nextat the fed will meeting is pretty clear. the bigger question is what will happen there after. you say the market is underpricing rate hikes in 2018. why is that? think we are on par with where the fed is looking for fed rate hikes, so we are expecting 2-3 rate hikes into 2018, so for now, yes, december is a done deal, but there after we think we get 2-3 rate hikes largely because we think inf

expanded rig count to a three-month high, potentially countering efforts that opec and not opec are tryingibly delaying plans to wind down this broader agreement. we get more data later this week. both of these have different views on what is the into happen with shale in 2018. yousef, we will spend the rest of the week together and have fun. anna, back to you. anna: david riley keeping me company here in london. they were talking about the oil market, opec, the russians, what they decided, when they might plan the exit strategy. up in the united states when we see prices are higher. to fields adding rigs for a third week. this is something opec and friends can't control, but matters for when they can exit their strategy. david: it means there is going to be a cap on where oil prices could go. becomeale producers have between producers in terms of -- the twin producers in terms of the oil market and price. has been helped by the recovery in global demand and global growth. that has been coming from emerging markets, not just china, that more broad-based. that has stronger demand. andas had

and this is a concern for opec.d i think this is part of the reason they don't want prices to climb too much further from here, don't want prices to climb too much furtherfrom here, because that would encourage more us production and probably weigh on declines among the opec members themselves as they fight to hold their market share. but how serious are these 0pec members with compliance? but how serious are these 0pec members with compliance ?|j but how serious are these 0pec members with compliance? i think they have been very good so far. when you have a look at what their compliance levels have been over the previous parts of the agreement so far it has been in the high 90s. so complaint has been excellent but a year is a long time. but the producers, jeff, also signal a possible early exit from the deal if the market overheats. at which level do you think are they looking at for an overheating of the market?|j an overheating of the market?” think if you saw oil heading up towards the $75 — $85 a barrel you wou

and opec nations alike is one of reassurance what they've done is effectively amend the declaration of corporation it won't start from march of next year it will actually start from the first of january they've amended it so it's a one year agreement that is intended to send a message of stability and reassurance to the markets it's likely to have the desired effect i think as far as rumors going around here that russia was exerting perhaps over undue influence over the the negotiations and the considerations the president of opec was at pains to say there is no light between himself and his russian counterpart he said they stand shoulder to shoulder they are totally in alignment and the other thing to say is that opec has said that look i know that they're going to keep this agreement in place through to the end of two thousand and eighteen but if market conditions change there will be the capacity to be nimble about it the three driving factors he said in response to the markets over the next twelve months will be the supply the demand and the inventors so joining us now from lond

both opec and non opec. hence, the decision to extend the supply adjustments for the whole of 2018. in the process of putting the building blocks for a more permanent framework of this declaration of cooperation beyond the rebalancing of the oil markets. tom: that relationship between opec and russia, for example, could be extended beyond this agreement? >> we had already agreed as far back as december of 2016 when we were crafting the declaration that we wanted to see this platform that first brought together 24 producing countries to help the market return to stability. to be developed into a permanent platform for producers. that would ensure us to sustainability. the supply adjustments, just one tier of the declaration of cooperation. the building blocks we are putting together now will further entrench this partnership beyond the rebalancing of the market. >> basically, you have an opec, non-opec agreement that has been reinforced for the whole of 2018. at the same time, we are continuing to see a strong global economy which has translated into high oil demands and that is affe

we had that big opec meeting indiana.cision to maintain cuts going to wind up impacting u.s. shale i feel like i repeat this question on every single show? >> a lot of people had seen that nine-month extension coming, so we have seen that earlier bump in prices, down a little today, but we have maintained over to $60 for brent and $60 per wti. it remains to see how opec itself reacts to this deal. one risk of cheating comes in you'd -- comes in. does that unwind the deal. shale on the other side, how do they react a higher prices? you have saudi arabia taking the chair of the monitoring committee. with a crack the whip on those who don't comply? >> they came in with the deeper .uts than required you saw the saudi energy minister making trips to iraq, they sawing to people as not fully complying with the requirements. we also see libya and nigeria brought into the frameworks and they won't increase more than their peak, so that will create those limits for opec. hold that taught. i want to bring in the head of middle east

i think what has happened is the coming together of opec and non-opec which was very tentative at theink it is a kind of historic accord between those two parties, particularly at the heart of it is a relationship between saudi arabia and russia, and their determination to make this larger agreement work. tom: the kuwaitis have said recently this deal could be revisited in june and that the cuts could and before the end of 2018. is that likely? dan: there has been a lot of discussion about an exit strategy. i think the message they are's trying to say is we will wait and see. i think some of the parties are saying let's carry it out until the end of 2018. let's not have a lot of speculation of and down. others said we don't want this thing to get out of control. you need to increase the volumes. it is a reasonable outlook to say this 2018 agreement, but obviously, six months, things could change. not to the same degree of speculation. what they did not want is to have everybody -- what's going to happen to the agreement -- and march is the month they will have their next presidential

opec says yes. the international agency says no.an says it could happen sooner than we expect. others say it won't happen in 2018. thing two, u.s. shale production, u.s. production generally. how quickly will that growth? , thow much of the opec discipline will be offset? mark: a lot to think about in 2018. thinkinge will be about that in 20 team. does 2018. republicans want to use momentum from their tax bill victory to take on welfare. paul ryan regards 2018 as a chance to reshape the social safety net. he wants to change the food stamp and medicaid programs. outlook for the economy fell this month to the lowest level this year. that's according to the consumer confidence index. voters in catalonia are deciding whether to back political parties that support independence. neither side is likely to win a majority in the regional parliament. gives his christmas greeting -- he did announced a cancer and stressed dedication to warding out corruption in the church. law was the former archbishop of boston who helped cover up sexual abuse

this chart shows that a verging between opec, the iea and eia and'd what will happen to opec's supply yellow they thought would happen in 2017 and the of grades for 2018. we had tom petri, he has led more than 200 billion dollars in energy deals. tom, great to catch up. tom: good to be here. what it is hard to know you were going to see in 2018 when you cannot agree on how much non-opec supply will grow. tom: that is a true fact. it is a challenge. but let's remember, first, we started this year where people were wondering about are we going to have one million ?arrels a day of growth we ended up with a better picture than we first that. the iea and opec have had different views. view, andard the opec i also think as long as saudi wanta and russia one to -- to work together, there is a good chance the opec view is going to prevail over that of the iea. time will tell. i think iea tends to be a little too optimistic about u.s. supply growth. alix: inside the bloomberg, it outlines what we talk about. u.s. shale production sits at 7.5 million barrels a day. here is the projection, opec

opec cuts will be unsustainable. opec producers extended their production cut agreement through the end of 2018. but many of the countries will have a difficult time adhering to these cuts as they rely on oil revenue for survival. for "nightly business r" i'm jackie deangelis. >>> coming up, now that we have that new tax bill in time for christmas, all the special stocking stuffers in it are starting to be unwrapped. we'lta >>> for all the handwringing the housing market has peaknot, home prices are still rising. the index of national home prices rose in october by 6.2% year over year, double the pace of wage more th three times the current inflation rate. strong demand and a shrinking supply of homes on the market helped push those prices higher. the 20 metro areas covered by the index, seattle led the way with a nearly 13% gain followed by las vegas and san diego. the nation's capital showed the smallest gain at 3%. >>> the tax bill was signed and hung by the chimney with care and in it were some stocking stuffers.

it's one of the reasons that opec needed to extend the cut production cut through 2016.ough 2018, the surplus will erode away, which will be a good thing for oil prices. julia: it allowed some flexibility, when we see that balance appear, they can renegotiate and come back to the drawing board and decide what they're going to do. where does that leave oil prices in that kind of environment if we see the balance gone and they kind of talk about what's next? mr. thummel: first and foremost, we think longer-term, you need more opec production and more u.s. production, not in the next 18 months, but longer-term you're going to need both to grow the production volumes to fill the global oil supply that we will have going forward. wethe next 18 months or so, think oil prices are range bound between $55 and $65 a barrel, which is a great thing for opec producers and u.s. oil producers as well, and the entire energy sector. thea: let's talk about sector. for equity stocks, they had a pretty tough time in the first half of this year from the third quarter was better and i think t

and non-opec producers agreed to maintain oil production cuts until the end of 2018.he decision was confirmed after talks in vienna. >> we elected to call it in amendment starting in january 2018 through december 31. so it is going to be basically a one-year agreement. >> this is the performance that really opec should have given in may. they were poised, concise, and knew exactly what the market was looking for. they had done their homework. they were able to give with the key metric was. something they did not do before. they said it is targeting inventories. they went as far as saying 150 million barrels. >> these two heavyweights, side-by-side, russia and saudi arabia sharing what they thought of as a confident outlook for energy and 2018. some describe it as a bromance. that is how jovial mood was in the press conference at the end of a long day. what we got in terms of inclusion with libya and nigeria. remember, they were exempt in the past. what happens now is locking in a place not to produce beyond 2017 levels, which shows you how opec and non-opec is a group

really for retailers, opec extends production cuts, nuclear flashpoint flare again in north korea.resident trump: this is a situation we will handle. matt: the senate grapples with the tax bill. the fed chair into the chair apparent speak on capitol hill. >> the case for raising interest rates at the next meeting is coming together. matt: a fed president shares insight in an exclusive conversation. >> the strategy of moving interest rates up given where the economy is and where it has been make sense to me. matt: as bitcoin surges, and flips, suddenly everybody is paying attention. >> it seems to me it should be outlawed. it does not serve any useful function. >> i think it is more likely these digital coins move into the mainstream. >> bitcoin is undoubtedly a bubble. >> it is not for me, but there are a lot of things that were not for me in the past it worked -- and that worked out very well. matt: that is all straight ahead on "bloomberg best." ♪ matt: hello and welcome. i am matt miller. this is "bloomberg best," your weekly review of the most important business news analysis a

david: we are calling it opec slip.fore we started this conversation we talked about refiners. what is the outlook for that side of the market? kunal: downstream has been doing well. the oill because of prices. of gains for these companies in the last two years. it is good enough for opec. in morel start to bring supplies. it will keep on producing. what we see 2018, we will not see oil rallying and we will not see inventory gains coming in. there is a lot of capacity coming. office of -- all this will put pressure and inventory gains would be hard to come by. david: your top panel is your .efining margin help us understand what this relationship is? kunal: look at the chart on the bottom side and you can see inventory gains seen in 2017. in the first half of 2017 two around june, oil prices came down. you could see refiners were making losses. since then, oil price picked up from $45 to $60. that tilted the oil earnings outlook for the bond 17. if oil prices rally from $60 to $70 or $75, you can see gains. it is unlike

is impacting the corporate landscape or is it the other way around also this way why is there no opec for gas well there is an industry body the gas exporting countries for. secretary general what's determining the price of gas also the issue of net neutrality who really owns the internet who has the right to control our access why it matters so much. so it is the big media to name synonymous with on screen entertainment and by the sounds of things this will be no mickey mouse outfit the walt disney company is buying up the entertainment business of rupert murdoch's twenty first century fox in a landmark fifty two point four billion dollars deal if it's approved it'll be a union of hollywood heavyweights but this is also about survival of the fittest disney and fox both need to strengthen their offerings because as you all know we don't just watch the t.v. or go to the movies anymore that why the story to come after this from john hendren . in a move that would reshape the entertainment industry large parts of what belong to twenty first century fox would become the property of disney

we have the results of the opec meeting. for the month, brent is up a bit, but only up 3% relative to the expectations that were built in to the meeting and the fact they did end up extending for the full-year of 2018. surprising brent is not up more. foreign exchange for the month, euro/dollar up 2.2%. we hit through the 118 and 119 level, almost back to the 120 level, which if you remember a couple meetings ago for the ecb made a few investors nervous about the next steps one to keep an eye on. >> now, i think you spoke exclusively with the co-founder of lands down partners paul ruddock and asked what asset classes investors should be cautious about let's hear that. >> we had a 35-year bull market in interest rates. i'm still of the generation that remembers the prime rate going to 14% sorry, prime rate 20%, fed funds rate 21% long bond rates of 14% when you look today at low bond rates in the low single digits, deposit rates a half percent or so, it's an extraordinary environment that nobody could have conceded of 20 year

i think this has been iscussed at great lengths in vienna on november 30 by opec as opec nonopec andxtend 2018.r the whole of at the moment we're in the process of putting the building if you like, for a more of this frame work declaration of corporations refinancing of the oil markets. >> so that relationship between example, russia, for could be extended, that working relationship, beyond this deal, agreement? >> we had already agreed the 10th of december of 2016 when we declaration ofhe cooperation, that we wanted to first s platform that brought together 24 oil producing countries, to help the market return to stability. to be developed into a permanent producers.or that would ensure us to sustainable stability. therefore, the supply one part of the declaration of cooperation. he building block that we are putting together now would further entrench and development partnership with the nonprofit beyond the refinancing of the market. basically, you have an pec/nonopec agreement that's been reinforced for all of 2018. at the same time, we're see a strong global economy. that's tran

is thatecond key point opec and non-opec continue to show agility.ed on market conditions -- this is a key metric that investors are watching out for. we saw it this time around with libya and nigeria being asked to be part of the agreement in a more formal way of pledging not to produce more than their 20 levels as we go into 2018. levels as we go into 2018. ministery weighed in. >> those countries are pledging to full conformity and -- in accordance to obligations they have missed out on themselves. it also gives us a opportunity -- that lets the market situation move toward rebalancing, and take actions which are needed to achieve this. >> there are a couple of questions that remain unanswered. number one, whether the strategy is aggressive enough to counter rising u.s. oil production, and the other is what an unwinding of this agreement would look like, because that could get quite messy. let's move on to bloomberg first word news and get a check with mark crumpton on the big headlines. the top story today was michael flynn's appearance in federa

this could be viewed as a relatively good result for opec.ing a huge rally but we are not getting a massive slide either. we have some of the opec naysayers eating their proverbial hats. goldman sachs called the opec meeting wrong, but it's now out with a note raising its forecast. thank you. we have had the opec extension. what is the mood like in the middle east? to say it was pretty good up until yesterday afternoon. we had most of the main in this these in the green. the cats are benchmark is up one point or percent yesterday. it was the out performer in the that shecause we know can house on the is due to go to kuwait for a big council summit. the first meeting between saudi at its allies june. we thought maybe we would see some progress on the blockade issue. out ofn we had this news yemen that the former president had been killed by his former allies. it will have to wait and see with this is for saudi arabia and the overall geopolitical environment here and for policy. manus: ramifications all the way around. rate update. is with us.m

opec and non-opec producers agreed to maintain oil production cuts until the end of 2018. decision was confirmed after talks indiana. -- vienna. >> we started with an amendment in january 2018 through december 31. it will be basically a one-year agreement. >> this is the performance that opec should have given and may. they were poised, concise, and knew exactly what the market was looking for. they had done their homework. they were giving with a key metric was. they said it is targeting inventories. they went as far as saying 150 million barrels. >> these two heavyweights, russia and saudi arabia side-by-side sharing what they thought of as a confident outlook for energy and 2018. some describe it as a bromance. that is a jovial mood was in the press conference at the end of a long day. what we got in terms of inclusion with libya and nigeria. is locking in a place not to produce beyond 2017 levels, which shows you how opec and non-opec is a group is willing to refine its field a little bit and push some of these expectations to the upside. >> a twist in the special coun

and opec nations alike is one of reassurance what they've done is effectively amend the declaration of corp it won't start from march of next year it will actually start from the first of january they've amended it so it's a one year agreement that is intended to send a message of stability and reassurance to the markets it's likely to have the desired effect i think as far as rumors going around here that russia was exerting perhaps over and june influence over the the negotiations and the considerations the president of opec was at pains to say there is no light between himself and his russian counterpart he said they stand shoulder to shoulder they are totally in alignment and the other thing to say is that opec has said that look i know that they're going to keep this agreement in place through to the end of two thousand and eighteen but if the market conditions change there will be the capacity to be nimble about it the three driving factors he said in response to the markets over the next twelve months will bring the supply the demand and the inventor. so joining us now from l

and opec countries. and we expect november to reflect as well. for more on this, let's bring in yousef gamal el-din, joining us from opec. surpriset a bit of a in the final announcement. people didn't think russia would go along with this. the marketprise workers in vienna as well? -- the market watchers in vienna as well? yousef: we had a solid strength from russia and saudi arabia. -- we had a show of strength from russia and saudi arabia. inventories are coming down. they are holding on. with the inclusion of nigeria and libya. theyally what happens is have pledged to not produce be their 2017 highs. here is what i novak had to say about the latest deal. take a listen. all countries are pledging towards full conformity in accordance with the voluntary obligations, which is important. it gives an opportunity for us to meet at the june meeting in vienna and assess the progress towards rebalancing and take actions, which are needed, to achieve this. matt: they got that done. what are the issues opec and

"bloombergg up on markets," the opec meeting is in the books. can oil sustain the momentum? this is bloomberg. nymex crude up by 2.2% today. ♪ mark: live from bloomberg's european headquarters in the city of london, i am mark barton. i ame: from new york, vonnie quinn. this is bloomberg markets. time for futures. oil higher today after opec extended its production cuts to the end of next year, at least for now. we are joined by bob of past trading partners. why would this send oil higher? i thought it was priced in. bob: it was interesting. that whole thing was like a self rumor. sell the fact, by the fact, sell place it was all over the in terms of whether this was priced in or not. for me, this is an extension of the range. right now, it is all about shale versus demand. which can outstrip the other? opec was right in pointing out that inventories have been rebalancing, that we are still 13.2 percent above the seasonal five-year average in terms of crude inventories. a newsletter pointed out something i had not noticed. only 0.8% above gasoline. the crash spread has been c

edward: we went up so much of the opec talks. $60 in the wti.t the markets are doing is settling back and looking for trade bottoms. what happens is, if tax cuts go through, once we hit through that phase of it, the market will look at the u.s. and say good growth. china is replacing the u.s. as the largest importer as we are speaking right now. 6% rangenomy is in a of growth. europe is coming on. with the fomc and the european central bank and other central banks still saying on a policy of growth overall, i think the outlook for oil is still pretty good. hearing the two opec countries that are considering backing away means stability is coming to the market, not that they want to drive prices down, but the u.s. is stealing market share. there is no question about that. mark: always glad to see you. "bloombergn -- markets,", we are getting here why nothing is off the table white -- when it comes to brexit. this is bloomberg. ♪ ♪ partythe u.k. labour wants to allow second referendum if it wins. joe mcdonald spoke exclusively with bloomberg. we h

in commodities, key food inventory data as opec says the global oil markets will not rebalance untilater this year -- later next year. how these could impact the price of crude. faces a key vote on her brexit bill. the prime minister coming under increasing pressure from within her own party. rebel tories are demanding the ability to alter whatever final brexit deal emerges. into the minutes trading day in the u.s.. abigail doolittle is here. we are off to a positive start. have more record highs then major averages. all-time highs yesterday, and seeing it again for the dow and s&p. about half a by percent. we have not had a record high for the nasdaq since november 28. we had that many rotation out of technology. a bullish start as investors anticipate the possibility that a tax bill will be presented to president trump before the holiday break. in.ays it is already priced if there is any sort of stall, he thinks it could have a negative impact on the markets. today is fed day, so investors having a bullish note i had of the anticipated rate hike. this is the 10 year yield. interest

growth, for the rest of non-opec growth, and still for opec to selectively grow in some of the countriesare returning to iran,, such as iraq, libya, nigeria. overall, we see a balanced market for 2018 was a successful opec strategy to effectively digest inventories until the end of the year and then keep it balanced market through 2018. market is a testimony that this process is working. tom: let me bring up a long-term chart, and approximation taking oil back 50-60 years. if you adjust for inflation and adjust for rising incomes across the western world, you get a chart like this were oil is dirt cheap and migrates back to where it was in the 1970's and 1960's. that is all great, but oil is linked to the u.s. dollar. what are the ramifications if we get a stronger dollar next year? the money flows into a prosperous america, what does it do to the price of oil? michele: i think the relationship of the u.s. dollar with the oil price was incredibly strong in the past. to be fair, the oil imports were the key driver of the balance of payment. i think that relationship becomes weaker as the

the price of domestic crude was little changed, but the decision may signal that opec is still concernedabout oversupply in the market. steve sedgwick is in vienna >> reporter: after the talk of contention and splits in the ranks, what we had is a continuation of the policy of opec and nonopec allies, including russia, the largest oil producer on the planet, beyond the end of the first quarter 2018, to the whole of 2018. that means 1.8 million barrels a day of oil will be taken off the table for that entire period. and they're hoping that will continue to stabilize the market and get down inventories of the global levels which have been way above the five-year average. they want to get that down by another 140 million barrels before they declare success in their policy. they're very happy with the current price. they're not even worried about the advent of larger volumes of shale going onto the market. they will be monitoring very aggressively their progress on how much progress they're making over the next six to seven months. in fact there wl be a review of the progress made on june 21