day that opec members meet with non-opec members.ut there's a few members, the member is all about russia yesterday they announced also some kind of a cooperative agreement, long-term deal with russia russia still not part of opec formally, but as opposed to sort of the neighbor living next door, they're part of the family now that comes and stays a couple times a year. the question is what does that agreement look like? we'll find out today it does add 11.2 million barrels a day to the opec oil fire power. >> i mean, you mentioned the demand side of things. i mention this only because we've been talking so much over the course of the past few weeks about this idea of global purchasing manager indices, regardless of what country they're at have been showing signs of a slowdown. is there a sense that that demand destruction could be a real issue if prices are propped up too high at this stage? >> yes, there is two sides to every equation. demand and supply. the viewpoint is that demand will slow down, not collapse i will say this, the

how frustrated is opec with the u.s. boom as well? what about iran? do they stick around we'll see if iran sticks around. that meeting is set to begin in three hours time here in vienna austria. after the break, more on these markets. stock futures look like they're set to surge could be a day of new records. record heat here, record hot u.s. markets a lot more to do you're watching "worldwide exchange" and we're right back ♪ho bakhis srtre ♪ just ok? (in dutch) tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. did you know that feeling sluggish or weighed down could be signs that your digestive system isn't working at its best? taking metamucil every day can help. metamucil supports your daily digestive health using a special plant-based fiber called psyllium. psyllium works by forming a gel i

not an opec member. but is attending the meeting as part of the opec plus alliance oil minister hinted at some of the growing tensions around the cartels de facto decision making methods mr big john zangana a warned of what he called the problem of unilateral a zation and more gravely said opec quote has lost its authority and is on the verge of collapse. oil prices are up as opec and its allies agree to extend supply cuts to at least the end of this year what could have been a hurdle in the decision on iran agreed to the production deal but the country has voiced concern over the current dynamics within opec alex mailed it joins us into the war alex 1st of all tell us about this opec decision what do we need to know. also a lot of what you mention is true when it comes to decision making here we look at saudi arabia as well as russia making the decisions now that the decision was backed by iraq and also as you just mentioned iran and they put their $0.02 and they said you know we're going to back this e

an opec plus deal before the opec meeting brings leads our globe report today as russia and saudi arabia announce an agreement to extend oil supply cuts russian president vladimir putin and saudi crown prince mohammed bin solomonic meeting at the g. 20 summit in osaka japan announced their agreement to support an extension of previously agreed production pullbacks mr putin indicated that the length of the extension could be 6 or 9 months seeming to leave that important detail to be resolved at the meeting of organ in the organization of petroleum exporting countries which formally begins on monday in vienna opec member saudi arabia has effectively been steering opec policy in consultation with russia russia is not an opec member but is attending the meeting as part of the opec plus alliance iran's oil minister hinted at some of the growing tensions around the cartels de facto decision making methods mr big john zangana a warned of what he called the problem of unilateral a zation and more gravely said opec quote has lost its authority and is on the verge of collapse. oil prices are up as

the opec and to approve it it is not mission of opec.organization with 14 members and in all issues all the members should discuss, should consult with each other and making a decision. it's the main difficulty that i believe opec faced in this situation. >> that was the iranian oil minister talking to my colleague dan murphy the uae's energy minister echoed those concerns he said every member's voice should be heard. >> each country -- opec is an organization that each country can veto a decision. that's why every count or every vote counts. and i think it's important that the largest two producers among opec and opec talk and the current condition of the market, in my view, would require an extension. and i said that earlier when we were gmmc we looked at the numbers i don't think they have changed much since that time, therefore my view, my technical view, is an extension >> that was the uae energy minister talking to my colleague, dan murphy. let's look at how european markets are trading this morning. ftse 100 is up 1%. the pound is

unity inside opec, and it is not acceptable to opec members fighting against some other opec numbersas donald trump in the u.s. push sanctions against the iranian economy, what is your message to the u.s. president? is better if you wants to change something, they should respect the iranian nation, the government. with very important increasing the pressure. we don't change our position. it is better to respect iran, the leader, and the administration of iran. and the first acceptable step i believe is a necessity to leave the sanctions against iran, and then they would see many changes in the environment. [speaking foreign language] language]ng foreign thes: that is zanganeh, minister of oil for iran. he is calling for respect in regards to iran, if the u.s. wants change. he is demanding respect. iran is not officially selling oil to europe, and he also says -- this is the european response to the sanctions on iran. it is a vehicle the europeans are using. it will not work if we cannot sell our oil. a six orneh supports nine-month extension in the packed. -- in the pact. consensus i

not an opec member but is attending the meeting as part of the opec plus alliance oil minister hinted at some of the growing tensions around the cartels de facto decision making methods mr big john zangana a warned of what he called the problem of unilateral a zation and more gravely said opec quote has lost its authority and is on the verge of collapse. oil prices are up as opec and its allies agree to extend supply cuts to at least the end of this year what could have been a hurdle in the decision on iran agreed to the production deal but the country has voiced concern over the current dynamics within opec alex mail that joins us into the war alex 1st of all tell us about this opec decision one.

we saw the market was responding me and there were calls from opec and non-opec to ensure there is ample supply we have also seen stocks build up in the u.s. and globally. >> the next opportunity for the group to assess how the deal is translating into the global oil markets will come in september in abu dab bubu dhabi they will look at how things have progressed so far they will also meet again in vienna in december it will be interesting to see how this feeds into the oil market the other thing we spoke to the secondary general about was his efforts to soften opec's image in the united states his moves to try to form some kind of line of communication with the trump administration. we have ministers across the arab states working to staebilie the oil market but the u.s. not part of this conversation mr. barkindo told me that he has been able to have conversations with some of the highest echelons of the u.s. administration, however he has not spoken directly with president trump. you might recall that president trump did say recently that he called opec and told opec to take it easy it

opec steps up.

but opec agreeing that they would agree to cooperate with a russia-led coalition which gives opec about 11 million barrels per day more. that wasn't all the drama. first off, around the criticism that opec had bece perhaps too close to russia, in fact the saudi oil minister in the media scrum had to acknowledge the fact tha every opec member still matters. >> we are very respectful of every member country. ahe fact of the matter is saudi arabia and russire the largest producers and we are delivering the largest cuts. for us to agree first and then to discuss our w agreementh our colleagues from other countries i think only helps reach the unanimous consensus that we're seeking. >> reporter: ofourse thether overarching piece of news was iran, upset with opec with lack of support against u. oil sanctions. we asked what would it take to get iran back to the table with the united states. >> if united states administration wants to change that environment between two countries, firstly should lift all sanctions put against iranian oil and other then they would see significant change in the e

the most notable news that came out of those talks a commitment by opec heavyweights saudi arabia and nonmember russia to extend current production limits for another 9 months among the countries supporting that move all of which nigeria used nigeria's strong says this commendable. and supports these. we believe that an extension of 9 months. to 6 months as a. certainty to the markets. but if it seems like it's all consensus in vienna think again. opec member and major producer iran is expected to back that plan to prolong the duction cuts it will likely do so with its fist clenched than. opec member and major producer iran is expected to back that plan to prolong production cuts it will likely do so with its fists clenched. the country's oil output has plummeted following the reintroduction of u.s. sanctions and claims from washington and that it was responsible for last month's attacks on tankers off the emirates the coast are only adding fuel to the fire. talk about fuel to the fire the women's world cup in france has captured the attention of us around the globe but the following

liam: to me, opec as it used to be doesn't really exist.still a website, they still meet and -- i don't think they will dissolve. for saudi arabia, it is a useful purpose. it gives them a certain heft in the world. i think it gets more important over the next year to manage supply cuts. if you think about u.s. politics in general, that is quite a useful thing to have out there. but, over time, i think it is becoming more and more clear that this process does not work in the way that it used to. caroline: let's talk a little bit more about saudi arabia. o seems to be dangled out there. right time to be trying to go to for a huge valuation? liam: if they are going to revive it, the first thing they have to do is make people forget about this to trillion dollars thing. right now, you have saudi arabia signaling that it is really going to be extending the supply cuts for a long time? alid was saying yesterday that he's going to wait that out and good luck to him on that. in that sense, you will have aramco may be coming to market while his prod

and some of the the opec members? david: we talk about the supply-side a lot. us about demand. is there something in the data that suggests demand curbs might shift out in the foreseeable future? sri: yes. probably, we are also watching this quite closely. we know that the u.s. and china have come forward to take talks to the next level, moving in a positive direction. but we are not looking at a solution very soon, this will be a very long procedure. there are lots of things that need to be agreed by both the countries. if the talks fallout, we can expect a slowdown in demand growth, and there's a downside to demand in the medium-term. rishaad: is the right kind of dust that is the thing here, when we talk about cracks, what has been taken off the table, oil,is the most desirable a lot of it will be based on what is more refinable . sri: sorry, please come again. rishaad: some of the oil being removed from the market, is it the more popular type of oil? the one that it can make more things from, or is it perhaps the peripheral oil? sri: oh, yes. to us, with im

opec and allies extend curbs on oil production. eu leaders make a striking selection to lead the ecb. >> it's breathtaking. it has the benefit of surprise. viviana: july is here. the fomc has signaled rate cuts may be coming. cleveland's fed president shares exclusive insights on the policy outlook. >> i think the fed funds rate is about at neutral right now. viviana: plus, expert perspective on what is ahead for the global economy. >> i think the market is getting a little bit greedy in terms of rate cuts. there will escalate, be a global recession. viviana: it is all straight ahead on "bloomberg best." hello and welcome. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day-by-day look at the top headlines. the week began on a note of optimism after presidents trump and xi met at the g20 summit and agreed to restart trade talks. francine: the u.s. and china have agreed to a trade truce and say they will revive s

but deals being made on the sidelines with non—opec members are already making headlines.bia and russia, a non—opec member, have already come out to endorse a policy aimed at pushing up the price of crude oil as the world faces a weakened economy. many analysts expect the group to roll over supply cuts of more than one million barrels per day until the end of the year. but the outlook for oil demand is murky at the moment. the ongoing trade war between the world's two biggest economies, the us and china, has held back brent crude prices in recent months. that's because fears over ongoing tariffs will damage global growth, reducing demand for the commodity. that's been counterbalanced by tensions between iran and the us, which have heightened fears of supply disruptions in the middle east. oilfrom iran is now at a trickle after us sanctions were put into place. but opec is walking a tightrope. high prices have driven up production of shale fracking in the us. the us has overtaken saudi arabia as the world's top oil producer. we look forward for a positive meeting. i've stat

oil output is weighing on markets the opec cartel and other nations decide to continue restricting their production also coming up critics call it cruel some sushi lover scandal waits the 1st commercial whaling ships in decades set sail from japan and paris cleans up its act by banning diesel cars from are arriving on its famous full of our. welcome for the program the world's big oil producing nations continue their fight to prop up the price for crude on monday the organization of the petroleum exporting countries and $10.00 other nations agreed to extend supply cuts until march 2020 that's according to several sources weaker global demand as a result of the us china trade spat had fueled fears that the recently rebounded price would come under pressure again. if you're looking for an insight into the state of the global economy and the status of geo political relationships the oil industry is a good barometer. because prices are still in danger of falling opec heavyweights saudi arabia and nonmember russia have agreed to extend current production limits for another 9 months. to put. e

russia is part of the opec plus group. strategist in the team says, they have finished their takeover of opec, russia. vladimir putin is the absolute csaries are now -- energy now. taylor: i wonder what do they want. we cannot break $65 a barrel on brent. what are saudi and russian opec members really want to see? annmarie: it is obvious the saudi's and other nations will likely be targeting price alone -- will be targeted to much higher oil prices, $80 or north. brent is not even up a dollar, it is up less than a dollar. this is a day we had a truce between beijing and washington, an extension of an opec cut for nine months and we had the iranians going over the limit of enriching uranium, highlighting tensions in the gulf. why isn't oil spiking more? the market does not think the deal goes far enough and everyone seems to be worried about 2020 demand. the fact that opec will cut into 2020 when the russians in st. petersburg were saying they want to take this wait and see approach and now the were willing to going to 2020

. >>> oil prices reverse course to extend gains between opec and non-opec allies. >> we are already seeing demand pick up, refineries that had been in maintenance have come back we inventory data out of the u.s. prove what i said, that demand is picking up >>> shares in funding circle plunge after the online lending platform cuts its full-year revenue forecast in half and blames softer demand for loans >>> as we mentioned, it's been an interesting day for european bond yields. you can see the italian, spanish and portuguese there, they're all at record lows really significant numbers if you think about the context. over the last ten years, in germany the negative yield rising slightly back towards zero down still at 0.36%. you can see the ftse 100 is in positive territory up 0.5%. similar story with the ftse mib. in germany and france, both of those indices slightly below the flat line. let's look at the u.s. markets over the course of yesterday we saw extraordinary numbers with the s&p 500 hitting a record high the dow jones also up more than 0.4% the nasdaq trading 1% higher as those tec

opec has decided to roll over oil?over the supplies until the end of march 2020. this deal was ironed out before the meeting took place between saudi arabia and russia, a non—opec member, in osaka at the g20 over the weekend. we did not sit well with other members. saudi arabia's energy and says everyone on board. a commitment to a nine-month extension is unequivocal, very solid, very strong. not only are we committing to rollover, i have heard individual commitments to conformity to countries both at the conferences. opec should add more oil to the supply, however the reason for this is when oil prices go up, reason for this is when oil prices go up, so those gasoline and this is a crucial issue as donald trump heads to the re— election season. a crucial issue as donald trump heads to the re- election season. we expect a reaction from president trump sooner rather than later. thank you so much. all right... well, ever since his independence day speech, a flagship policy to get every village on line in india. but it ha

they will produce less oil than its opec quota. all of this has been feeding into oil prices today but it is notable how we sell restraint in the oil price pop. iran's regime has taken new steps to advance its nuclear ambitions. this regime uses its nuclear program extort the international community. does appear to be the words of secretary of state mike pompeo. he is out with a tweet here, basically condemning iran's ambitions in regards to nuclear activity. caroline: clearly, geopolitics front and center throughout. that does it for the closing bell. "what'd you miss?" is up next. plenty to go through. this is bloomberg. ♪ live from bloomberg's world headquarters in new york, i'm caroline hyde. here's the rally. a record high on the s&p 500. -- thers welcome the damage already done by uncertainty. protesters ransack hong kong's legislative chamber. up for grabs. eu leaders have yet to reach a consensus on who should take the bloc's top job as marathon talks begin in brussels. joe: we start with hong kong chief executive carrie la

opec has agreed to extend oil production limits for another 9 months the decisions designed to support prices and so come excess supplies as global demand weakens the cost of branch crude is surging and on opec nation russia joins the talks which continue today. if you're looking for an inside into the state of the global economy and the status of geo political relationships the oil industry is a good barometer. because prices are still in danger of falling opec heavyweights saudi arabia and nonmember russia have agreed to extend current production limits for another 9 months. to produce. everyone's support of the proposition to extend for 9 months the limits agreed to in december. 31st. opec's 14 member countries and its allies like russia account for about half of the world's crude outputs benchmark brant crude has climbed more than 25 percent this year after the white house tighten sanctions on opec members iran and venezuela. but prices could see renewed pressure as a slowing global economy squeezes demand and u.s. oil floods the market. our commitment to balance the market our com

well we have to bear in mind that the increase of supply from the rest of the world outside of opec is about $2000000.00 barrel this year now if you compare that was an increase of demand which is about $900000.00 barrels a day this year you can see that there is a definitely too much oil out there so opec plus had to do something and was tough for them and that's why i think that the market is not really yet appreciating that cut and is not rising higher the tough message is that if they want to maintain a stable market they will have to cut even more next year because next year they will probably have to do another half a 1000000 so that means to cut that was prolonged now for 9 months probably has to be fine tuned again by the end of the year what he what he knew all of you is pulling down oil prices at the moment. well 1st of all the supplies from particularly the u.s. but the also see more and more supplies coming in from other parts in the world take it to brazil is increasing production kind of those spring out more barrels. so we will see towards the end of the year norwegian p

-- opec is not finished.o to $80, $90, dropped to $40 and then seesaw up and down. plays astructure, opec key role in balancing. what happens for geopolitics? it depends on mr. trump. backwards on the price of oil much higher but you need to have a firefight. it has not been priced in. you need to have some serious firefight and some casualties and in the price of oil will go up on the geopolitical level. on the supply demand basis, we $65 to $75 inout the second half of 2019. shery: opec plus was supposed to be the short-term fix mechanism in order to drain some excess supplies but it seems the agreement keeps getting rolled over, so does opec plus, at this point, have an exit strategy? ask another question which i did not answer. the demand has become much weaker. not really as weak as many people expected but the demand growth every year from 1.4 million to 1.5 million, it is more like 1.1 million barrels per day. the lower demand has meant that instead of the market balancing in the end of may to the end

ussia is building dominance on this opec group.ou saw on the weekend, the opec cuts were pretty much flagged in between putin and n.b.s. the cuts of the opec plus drive seems to be coming from russia at the moment. you mentioned shale. opec has understatemented shale from the outset. they went from cutting to try and pumping to beat them to run them out of business to back to cutting again. the saudi oil minister said they'd try and wait out the u.s. shale boom. it might be a long wait. we had analysis last month talking about the u.s. accounting for about almost a quarter of global oil and gas production by the early 2030's. so it's going to be a long wait. shale looks like it's going to continue dominating and it's going to be a headache for peck and its allies. rishaad: ben sharples, thank you very much for that analysis. plenty more ahead on bloomberg. including that exclusive interview with nouriel roubini with rish from taipei. stay with us. this is bloomberg. >> five companies have tom: welcome back. let's check in on the ho

the cost on al-jazeera your weekly look at the world of business and economics this week who runs opec we find out if the one from iowa all prices has forced saudi arabia to relinquish control of the oil cartel to putin. from startup to unicorn just how easy is it to create a multi-billion dollar tech sensation can the middle east create another success like right hayling at curtin. or is the region's reliance on big money and love of brands stifling growth. so the outcome was never really in doubt saudi arabia was going to get the production cut it needed but for the defacto ruler of saudi arabia mohammed bin sandman the price he paid probably sacrificed the country's leadership of the oil cartel opec. and now the deal to extend production cuts until next year was struck on the sidelines of the g. 20 meeting in osaka and was rubber stamped in vienna that was despite initial objections from iran russia's president vladimir putin has always worked to promote and recapture the country's superpower status is pushing his influence in battlefields and capitals in the middle east and increas

andd: alicia, does opec opec plus have the power to stabilize oil prices?in the united states, you get to the pesky problem of global growth. ultimately, you have the central planning model versus the free market model. whenis the vestige of russia was the soviet union, not trading a global markets. the u.s. was not producing. the only oil were these 14 nations. that is not the case anymore. it is the case of the three largest providers are russia, saudi, and the u.s.. it is great russia and saudi got together, the u.s. is out there as well. is about trying to contain the output from the permian and u.s. shale. whether or not they will be successful, there will be a cut in the supply side. right now demand is weak because we have this global slowdown. we do not think there is a global recession. ultimately we will be ok. the other thing i say is that electric vehicles -- let's than forward five years. electric vehicles be the mainstay in china and every large auto company is going electric. you have to think about what that does to the demand for oil going

. ,anus cranny in vienna for us all over this opec coverage.e is joined by the founding director of the center on global energy policy. good morning to you. a brave man joins us now. good to see you this morning. we have the announcement from mohammad bin salman and putin,, more importantly, that they support an extension. how important was that messaging before this opec disruption? >> everyone expected rollover. it wasn't surprising it came from heads of state at the g20 meeting instead of opec. that might have rub some members the wrong way. nine months gives more confidence to the market and helps show russia is in this for the long haul. iny can reassess the meeting december. issues get resolved in russia, showing russia would have the ability to increase, they are still committed to the deal. >> it is important in the messaging, whatever they announced. tomorrow, they signal saudi arabia remains willing to do what is necessary to continue to manage the market. there is so much uncertainty in both directions. the resolution of the trade wa

the cost on al-jazeera your weekly look at the world of business and economics this week who runs opecwe find out if the one from iowa all prices has forced saudi arabia to relinquish control of the oil cartel to putin from startup to unicorn just how easy is it to create a multi-billion dollar tech sensation can the middle east create another success like right hayling at curtin. or is the region's reliance on big money and love of brands stifling growth. so the outcome was never really in doubt saudi arabia was going to get the production cut it needed but for the defacto ruler of saudi arabia mohammed bin sandman the price he paid probably sacrificed the country's leadership of the oil cartel opec. and now the deal to extend production cuts until next year was struck on the sidelines of the g. 20 meeting in osaka and was rubber stamped in vienna that was despite initial objections from iran russia's president vladimir putin has always worked to promote and recapture the country's superpower status is pushing his influence in battlefields and capitals in the middle east and increasin

i will say this about opec. you talk about how opec might be concerned about vladimir putin's role. they have to be concerned about the u.s.'s role. it shows to me that show producers are at a record. and i really have to wonder how much that swing factor will close a real reality check to the production cuts. they say i don't want to lose market share anymore. most delegates favor nine-month extensions. to wonder how much it has to do with demand. if you're worried about demand, you'll probably want a cut. that is probably more the story than any supply issue. >> and is there going to be a recession in the near term and what is that due to oil prices? alix: i really appreciate it. coming up, hitting the positive not the trade war. the u.s. and china -- hitting the pause button on the trade war. agree to ad china truce. as we had to break, a live look at the protest in hong kong. an unbelievable amount of people breaking into legislative council. breaking windows, wearing hard hats. carrie lam, chief executive officer of hong kong, they are calling for her resignation. this is bloom

we saw the announcements with opec/opec+ almost in jeopardy of not happening at all. what happened was we saw oil run-up ahead of that, and now the focus squarely is back on economics, bottom line. guy: so where does that take us? what is the expectation of where prices go from here? oil has really struggled to make any headway. we've come up a long way, but i am wondering what the next impetus to the upside could be. have we peaked out? scott: barring any kind of geopolitical risk, unrest in the middle east, or anything like that, yes, i do think we have peaked out. the number we were approaching was not only a psychological barrier, but also a big resistance area. it honestly would not surprise me if we see oil prices back down around $52 if we continue to see the same weakness we seen through global economics coming out over the last weeks and months. guy: great to be with you. scott bauer joining us out of chicago. let's talk about our stock of the hour now. u.k. money managers have been in the news recently. today it is the term of jupiter assets management, losi

because prices are still in danger of falling opec heavyweights saudi arabia and nonmember russia have agreed to extend current production limits for another 9 months. before. everyone supported the proposition to extend for 9 months the limits agreed to in december. opec 14 member countries and its allies like russia account for about half of the world's crude outputs. benchmark brant crude has climbed more than 25 percent this year after the white house tighten sanctions on opec members iran and venezuela. but prices could see renewed pressure as a slowing global economy squeezes demand and u.s. oil floods the market. our commitment is to balance the market our commitment is to bring down inventories our commitment is also to call our colleagues to do the same. the extension of output cuts are likely to anger us president trump they could lead to higher prices at gas stations something he sees as a threat to his reelection campaign strategy is worsening tensions between the u.s. and iran could also mean the price volatility remains a challenge for oil producing nations. now how's thi

global reporter on the latest on opec.r look at the opec plus decision and the group's path forward in the next hour with doctor will join us at 7:30 a.m. in hong kong, 7:20 p.m. eastern. paul: we will have more on the escalation of protests in hong kong. speaking to the author of the coming collapse of china, gordon chang. this is bloomberg. ♪ kong where to hong antigovernment protests turn violent on monday night. right police fired tear grass after demonstrators smashed their way through the legislative council building. joining us now is the author of the coming collapse of china, gordon chang. great to have you in the studio with us. when will the optics of what happened overnight duper protesters? it cannot be helpful. gordon: the graffiti does not good. throwing snow but the policeman is not going to get support. also, with the withdrawal which was inextricable -- shery: around 9 p.m., they retreated and came back. gordon: protesters stormed into the legislative council chamber. carrie lam is either going to looking

but we are still facing a lot of growth in non-opec supply, almost 1.9 million barrels of non-opec supplysignificantly higher than demand. that means opec needs to keep a lid on production and potentially cut more if it is going to continue to manage prices around this $60 a barrel mark. yvonne: so if they extend the curbs, they actually need to go deeper. dr. beveridge: in the short-term, i think will continue to see inventories drop. the market will be undersupplied in the third quarter. but if you look into. at0, we have non-opec supply something like 2 million barrels a day. demand growing just over one million barrels a day. so opec will need to cut more if they are going to maintain prices around the $70 mark. if they don't cars, we will be falling down to $60 a barrel or potentially lower. so we are still in the period where opec needs to cut? david: do think that will be the story in 2020? we were joking during the break -- we have been here for four the first 2016 was cut and then they kept cutting, and cutting, and cutting. at some point, the optimization of those cuts goes away

and non-opec be sustained. that's very important. the capital investments in the oil industry have gone down very, very significantly since three, four years ago. and so there needs to be a higher margin to retain ability to provide oil supply in the long term. >> so that where do you stands on the permian basin and, more broadly, the recent discoveries over the last five to ten years in the u.s. and whether or not they're perhaps going to be as plentiful as some people think well, there's no doubt that the shale oil developments have been fantastic. they've certainly brought the u.s. production way up now we're looking at 12.5 million, maybe reaching 13 million next year. but on the other hand, this doesn't come without a price the oil that comes out of the shale is not as effective in producing transportation fuels and so you see this big gap between the wti and the conventional oils. and in the long term, although there's more opportunity to develop shale oil, the world is consuming almost 100 million barrel

to figure out the opec extension on the oil price.ian dollar is strengthening after they cut rates but suggested a further cut may not be warranted. tom: breaking news in the oil transaction, we have been watching for what seems like years, saudi arabia will take anir oil company and effort ipo, this is not a unicorn but a giant of the oil business. they did the bond transaction, francine, a little soggy on the opening, i do not know where the yield is on the bond effort we saw. but they tried and equity effort. -- try an equity effort. francine: on the back of the saudi markets being shunned from investors because of political tensions following the death of democracy -- death of jamal khashoggi. saudi aramco will restart preparations for a mega ipo. tom: yields, this is an extraordinary chart, i have never seen a chart like this, the german two-year, 10 year, the two-year when negative, down a sustained two-year. this leg year and a new leg down here in the 10 year yield. the acceleration, that is fancy gamma ofut, the german ten-ye

and russia are driving opec supply policy even as opec market power fades as u.s. oil output increases so what's your take on the outcome of this latest round and the prospects for the future. well but it is a worthless organization begin with they have no value they have no power you know if you go back you know 15 years ago yes they had power over the states and they could force the price of oil as we go back into the seventies and eighties when they were really a true control but now the 1st of all they can't keep their word within the group of the group of opec you know they say they're going to they're going to cut down supplies and meantime they always find a couple of nations that are pumping like crazy anyways so whatever opec says is basically worthless is that it's not worth the paper be printed on or the words that are spoken to know how to take their from baba and now what's the feeling among your peers you talked about the slowdown in oil demand and the big factor there seems to be the u.s. china trade war so what's the feeling among you and your peers