prices at least from falling further so there are two things here there is a pick and opec plus opec is the traditional opec opec plus is when russia and some other countries may join in default to make further curt's and to influence the price of oil. you know to have a higher price of crude the problem is that russia which is the key player outside of opec but joining in. us does not have much interest in making so many cuts it has agreed on one not so long ago it didn't have much influence i don't expect them to make a strong cuts in twenty nine thousand the last time you came in we talked about diversification though these are common is posed to be heading towards more sort of knowledge base economies where did that go then well unfortunately due to lower oil prices which is the key commodity for masts of the oil exporting countries of the region for most of the countries of the arab peninsula especially but also in northern africa so they didn't hit their targets no no no not at all they are far below and it's not the first year if the region's economies haven't been able to perhaps invest as much in k

opec and opec plus. it is a quid pro quo. would meanns opec opec is doing more. f the day, we need to take one million barrels off the october levels. around november, bigger. 1.3. add the decline between september and november, that is another. manus: what would and opec plus cut of about 1.3 due to the price of crude? i have brent, 59.50. what is a cut of the magnitude you see? it will allow the fundamentals to work -- improve and over, do a $70 brent. not immediately, but within two months. -- thewhat does america existential threat to the price of oil, this is about a market repricing to global growth, geopolitics, and the u.s. becoming in a net exporter for the first time in 75 years. roger: managing oil markets in the time of shale will be challenging. this organization will struggle because it is difficult. shale is growing at such a rate. grewthe last 12 months, we about 2.2 million barrels a day. 1.7 million barrels a day this year through september. it is difficult to that explosive growth. for the sourcet -- foreseeable future, managing your term. they

prices at least from falling further so there are two things here there is a pick and opec plus opec is the traditional opec opec plus is when russia and some other countries may join in default to make further curt's and to influence the price of oil. you know to have a higher price of crude the problem is that russia which is the key player outside of opec but joining in. us does not have much interest in making so many cuts it has agreed on one not so long ago it didn't have much influence i don't expect them to make a strong cuts in twenty nineteen the last time you came in we talked about diversification though these are common is posed to be heading towards more sort of knowledge base economies where did that go then well unfortunately due to lower oil prices which is the key commodity for masts of the oil exporting countries of the region for most of the countries of the arab peninsula especially but also in northern africa so they didn't hit their targets no no no not at all they are far below and it's not the first year if the region's economies haven't been able to perhaps invest as much in knowle

in the case of opec i totally agree that opec has never really acted as an effective cartel but if you go back to opec even during the arab oil embargo of one nine hundred seventy three seventy four arab or pick the arab members of opec they even cheated themselves saudi arabia or so or oil to the us fleet iraq in fact did not hold back its output so that you take into account what is said at generally opec meetings is rather meaningless the thing that matters is can they stick together and i can assure you that saudi arabia and iran have nothing in common to agree on any more during all this time that i have been involved in knowing what's going on between the two countries i can assure you that there has been no cooperation behind the scenes in front of the scenes or anywhere on the scene so whether that what was done at the opec meeting to me is i'm sorry to say rather meaningless i think what matters is can they stick together and for that i'm not really very optimistic not what this does i think to consumers is very clearly this that when you look at it in the case of the united states. people ex

opec's power in all of this. well i think from the russian point of view of opec is still strong and influential that is why russia is actually cooperating with opec and for russia opec is the only partner that can help really to stabilize the prices moscow is no interested in raising the prices as high as possible because well most of the government revenue comes from oil exports in and of course russia is ready to supply most to about one third of the costs so it is the. an important contribution and russia is ready to work with saudi arabia in maintaining high old oil prices and i think this decision by opec was a very strong sign was a very important sign that russia and saudi arabia will work together on the oil market in order to maintain high prices it's a declaration of sorts both economically and politically and i think both countries are very much concerned we the consequences of the u.s. efforts to increase production of oil not america and the iranian sanctions because despite the fact that until now the sanctions didn't hit iran that seriously there is an expectation that iran very quickly will start exporting more and if you talk abo

opec's power in all of this. well i think from the russian point of view opec is still strong and influential that is why russia is actually cooperating with opec and for russia opec is the only partner that can help really to stabilize the prices moscow is no interested in raising the prices as high as possible because well most of the government revenue comes from oil exports in and of course russia is ready to supply most to about one third of the costs so it is the. an important contribution and russia is ready to work with saudi arabia in maintaining high old oil prices and i think this decision by opec was a very strong sign was a very important sign that russia and saudi arabia will work together on the oil market in order to maintain high prices it's a declaration of sorts both economically and politically and i think both countries are very much concerned we the consequences of the u.s. efforts to increase production of oil. america and of iranian sanctions because despite the fact that until now the sanctions didn't hit iran that seriously there is an expectation that iran very quickly will start exporting more and if you talk about c

opec and the rise of russia in the oil sector some are asking is opec's time up to better understand the situation the fossil fuel sector will break down the details and ask is it time for the world to get over opec. opec the organization of the petroleum export in countries and a few non opec members namely russia met earlier this month and agreed to cut their production by one point two million barrels per day the move comes as the international energy agency estimates a reduction in oil demand for next year or twenty nineteen well the production cut increased prices as the oil rich nations would like it remains to be seen but don't count on it for many decades with the largest oil reserves and a majority of global oil spigots and acting as a mostly cohesive cartel the dominant player has obviously been opec the rest of the world as countless complains have moaned has been held hostage to their price whims with the resultant impacts on national economies however the sens are shifting and opec is neither as cohesive nor as powerful as they were back in the day without russia joining in opec efforts the once power per cartel would not have any real ability to move prices in a major fashion conseq

are consulted and i would say one of the big achievements that we have seen in opec was really this opec plus having opec and the other producers work together and you know it's not it's not as easy as saying oh it's just political it's about balancing the markets and when you look at it in twenty sixteen we had an overhang of inventor of of o.e.c.d. average of three hundred forty million barrels a buff that average you couldn't get the price to move then taking that one point eight million barrels out of the system again lift up the price which was good also for consumers in the end because if you all price doesn't have the certain level companies don't invest the national oil companies in the middle east yes they will invest but you know we also need the shells and exxon's and so on to invest and their shareholders will only allow them to invest in the sector if the price is at a certain level so do you think that caught that qatar leaving even though their oral footprint isn't that big you're saying that they did have a lot of say so in opec and cornelia makes a case of a person the things they've don

opec plus having opec and the other producers work together and you know it's not it's not as easy as saying oh it's just political it's about balancing the markets and when you look at it in twenty sixteen we had an overhang of inventor of of o.e.c.d. average of three hundred forty million barrels a buff that average you couldn't get the price to move then taking that one point eight million barrels out of the system again lift up the price which was good also for consumers in the end because if you all price doesn't have the certain level companies don't invest the national oil companies in the middle east yes they will invest but you know we also need the shells and exxon's and so on to invest and their shareholders will only allow them to invest in the sector if the price is at a certain level so do you think that cut that qatar leaving even though there or footprint isn't that big you're saying that they did have a lot of say so in opec and cornelia makes a case of a person the things they've done what kind of impact do you think this will have on opec. i don't think you will have much impact you see other countries like indonesia ecod or gab own me have left or pig and have joined rejoined later so it doesn't matter in fact as i think the lady our colleague just mentioned the objective or pick and it's scope of group have in large by having this cooperation with the non or big group of countries the so i don't think that the role of. was a small day as i explained especially bringing in russia and other non orpik it did play a role and they always have a consultative agreement you see the we worst cases are for iran and iraq indian one nine hundred eighty s. they were at war with each other and yet the ministers when they were in vienna were going over the opec conference was organized they discussed as a group for among them but differences do exist and a country which has a large production capacity has a muscle a

opec meeting is underway u.s. president to donald trump has already urged saudi arabia opec's de facto leader to refrain from output cuts in order to keep oil prices low opec has made a plan to cuts in on output effectively conditional on the contribution from opaque producer russia. it might thrill drivers but countries relying on oil exports to finance their economies on tapi about current price levels for the last three months has been heading steadily downhill at the start of october a barrel of north sea brant crude stood at a respectable eighty six dollars by the end of november it was struggling at fifty seven dollars though it stabilized for now at sixty that's causing oil producers a lot of financial problems so much so that the organization of petroleum exporting countries has put production cuts high on the agenda of its latest vienna meeting. if. you. want to see where you. can see. economics one zero one if output and supply falls prices rise. the u.s. is by far the world's largest oil producer at fourteen percent of output russia is the second largest candidate is way behind all three are not opec members uniting fifteen countries opec is res

opec members. 400,000 from non-opec which is a majority of russia. in the end it was russio's particip in today's meeting which really changed the game. opec is fighting a world where u.s. oil productions now the biggest in the world so russia squo joining with opec create add new dynamic. in fact we had a chance to speak with the energy ministe for the united arab emirates. i asked him in an american shale oil boom world does opec has poser. >> of co opec and not opec this is not only opeclo we can't do it without non-opec this is adulobal pr caring about consumers as well as their countries. >> opec is still powerful r but wisia they are there to counter the huge u.s. oilgg naut which is really coming out of no where and owned double frouks areroduction in ss than a decade. in the end we see oil prices rise. opecks gets a production cut deal and the price of dploo gasoli on the rice. vienna, austria. >>> elsewhere, as ereported, the arrest of a h wei executive has added to tensions between the united states and china. and today the chinese telecom giant's chief financial officer appeared in a canadian court for a bail hearing where prose

indeed there's not opec states such as the united states their influence now is massive and opec's monopoly of power. think of the past now what we're expecting on friday is the opec plus members that's ten opec members that are closely aligned with the opec block very going to come here to vienna join the discussions and the expectation is that then figures will be put on exactly how much opec and its allies will cut production into twenty nineteen but as the saudi energy minister said it's not a done deal it's still if as opposed to a when. the european union and france have pledged one and a half billion dollars for the son held region in west and central africa the heads of state of the safe a so-called g five nations are meeting in the mauritanian capital to raise funds the five nations represent a huge area in the southern sahara desert that's been blighted by years of conflict as well as a lack of infrastructure because he has more now from the mauritanian capital not chopped money and refugees to are wearing the yellow vest more than a sign of protest against the french government it's a symbol of despair or like they say in france six years since the fren

opec. guy: thank you very much indeed. he was talking to the nigerian oil minister. we also had comments coming through from alexander novak, the russian oil minister, just highlighting. the opec communique makes no reference to exemptions for countries. he does say the oil market is challenging and he says the decision today has been timely rational and democratic. opec can alter in both directions which will help the oil market rebalance faster. , keviner breaking news bauer, has been elected as the new leader of the cdu party in germany. let's go to hamburg and talked to matt, who joins us from their. she is a close ally of angela , how will this change german politics? matt: she has been called a mini miracle and carbon copy gary chi said in her acceptance speech and she wants to maintain it as a large people's party in the middle. that has been the strategy and that is how she has one for the last 13 years. anding the center collecting votes for the left. the problem is they have lost a lot of votes to the right and now that opportunity is present in every one of the 16 states this is something that they were hoping to change and now it is akk while caring on the policies. vonnie: well she seceded angela merkel as chancellor eventually? matt: that is a very good question. they often say the leader of the cdu becomes chancellor and that we do see

like to see by cutting output but opec has made a plan to cut in oil output effectively conditional on the contribution from opec producers russia that is according to opec delegates who are in vienna right now for the oil producer cartels latest bi annual meeting u.s. president donald trump has urged saudi arabia opaques defacto leader to refrain from output cuts in order to keep oil prices low but that is not in opec's interests it might through drivers but countries relying on oil exports to finance their economies on top be about current price levels for the last three months has been heading steadily downhill at the start of a job or a barrel of north sea brant crude stood at a respectable eighty six dollars by the end of november it was struggling at fifty seven dollars though it stabilized for now at sixty that's causing oil producers a lot of financial problems so much so that the organization of petroleum exporting countries has put production cuts high on the agenda of its latest vienna meeting. what we have. to do. and what you say for you or me you should be tied. to see. economics one zero one your output and supply falls prices rise. the u.

you with us so who is really controlling the world's oil policy at the moment opec on the opec countries well i think opec realized some time ago that it's increasingly difficult to do it alone so they have lobbied the a-y. the group which is no opec plus and russia is playing an instrumental role here. of course those countries have a big cares and they can remove the volume in the market but what we have seen is that when the price of oil is high enough you see a lot of response from the u.s. and so the u.s. shale supply right now is probably the most pressing issue do you think that with cattle with during this week the first middle eastern nation to do so that other countries will pull out of opec and we'll see more more countries outside the organization as part of opec plus. but then within it. it's very difficult to understand the russian oil for countries to be either in or not in the organization of course you can say there is a certain concentration of power with the bigger players they have something to say and their decisions have his huge impact but of course at the same time if you if you lo

think of the past now what we're expecting on friday is the opec plus members that's ten opec members but closely aligned with the opec block very going to come here to vienna join the discussions and the expectation is that then figures will be ports on exactly how much opec and its allies will cut production into twenty nineteen but as the saudi energy minister father said it's not a done deal it's still if as opposed to a when at least thirty five people have been detained in athens after protests is through rocks and fire bombs at police they were marking ten years since the fatal police shooting of a teenager the two thousand and eight killing led to weeks of riots and looting across the country. sudan's government is meeting representatives of armed groups in germany hoping to end fifteen years of conflict in darfur more than one point seven million people are internally displaced another three hundred thousand a sheltering in neighboring chad morgan reports now from giannina. for more than thirteen years this has been a lot of miles home a displacement camp she was forced to flee from her original home with her

barrels a day to agree to, how much of the burden will be shared by the largest member of the opec plus, opec and opec plus if you will. and looking at what we are talking about in terms of it is it one million or slightly under million. traders are looking at a real chance there is a small fish cut -- smallish cut. shery: how to the markets react to president trump's tweet? we have seen them react sharply in the past but did they get that sort of reaction this time around as well? tina: there was really no discernible reaction to the tweet. it came at a crucial time right when people were sitting down for this monitoring committee meeting and starting to work through what will happen in the coming days. people were sort of waiting all week to see what trump would tweet on this. much't think it was that of a surprise, but it came out looking for to come. theaps the impacts president has on oil markets is waning as we go forward. when he first did it, we were shocked. much.ot so paul: thanks sherry and to tina davis for the update -- shery and to tina davis for the update. we will to get closer look at

opec cartel. qatar to withdraw from the opec cartel. be changingo longer anything from january. they will withdraw from opecnd they will not be committed to opec agreements after exiting. that's according to the energy minister. is this to do with gcc politics? is it to do with their own way forward? brent perhaps has a bigger constituent part when talking about qatar and the gcc. the devotee i market, you can see, is very under positioned. opec and non-opec potential agreeing to cooperate next year. erin clark is our energy editor in tokyo. this is really quite stunning. major fracturest in opec. yeah, it's pretty significant. basically qatar says their withdrawing from opec. there are very few details. another thing they said is they want to focus on gas production. qatar is also the world's largest exporter of natural gas. this is to look at contextually what is going on with opec. over the weekend, we had the crown prince of saudi arabia and russian president vladimir putin agree to extend this agreement to manage the oil market which essentially means they are very likely to reintroduce that next year.

in the case of opec i totally agree that opec has never really acted as an effective cartel but if you go back to opec even during the arab oil embargo of one nine hundred seventy three seventy four arab or pick the arab members of opec they even cheated themselves saudi arabia or so or oil to the us fleet iraq in fact did not hold back its output so that you take into account what is said at generally opec meetings is rather meaningless the thing that matters is can they stick together and i can assure you that saudi arabia and iran have nothing in common to agree on any more during all this time that i have been involved and knowing what's going on between the two countries i can assure you that there has been no cooperation behind the scenes in front of the scenes or anywhere on the scene so whether that what was done at the opec meeting to me is i'm sorry to say rather meaningless i think what matters is can they stick together and for that i'm not really very optimistic not what this does i think to consumers is very clearly this that when you look at it in the case of the united states. people e

opec still works and can even surprise markets. but you disagree. >> i disagree. opec survived because of russia, let's be clear. russia,saudi arabia and they could control production at the level of opechare of the global oil market is 40%, much less than the past. there are two issues, in terms of the production cuts. one is that global growth is slowing in 2019, and opec is anticipating that. if you look at europe, the u.s., china, you have a slow downgrade in economic growth. the other issue is u.s. shale, which is doing extremely well at any price over $50 per barrel. >> is this move going to help bring prices above $70 per barrel? that's what the saudi's need? barrel toed $84 per break even on the fiscal side. it is highly unlikely you will reach that. probably something between $60 to $70 per barrel is likely over the short term. long-term it is downhill. >> always great catching up with you, inc. you for your time. here's what's coming up. we are just getting warmed up. qatar is said to be skipping the gcc summit today in riyadh. this is bloomberg. ♪ ♪ >> 8:30 a.m. in dubai. plenty to consider, the soaring oil price is one thing, the geopolitical developments in riyadh. what ki

winter and whether but it does show that since two thousand and sixteen when opec united with what is called opec plus other opec countries most significantly russia there is more dependence in that market on the other players and it doesn't make sense to find consensus among them because. make sure that everyone profits from rising prices in days just this have anything to do with the fact that the german dax has dropped to below the eleven thousand model is there something else that's putting pressure on it. might be playing into it but the most significant issue probably is the way of rest in canada and the problems that spells for the u.s. china trade relationship it doesn't bode well exactly and so worries have come back out after the optimism earlier this week and now with christmas coming up and no sign of a christmas rally people would rather take out some risk and make sure they have enough money in their pockets to buy presents ok well that's not a bad idea then. thank you so much. in uganda tensions have been growing between small ugandan traders and chinese business operating in the country the growi

told in no uncertain terms there will be no announcement from opec tonight they're going to wait until the larger opec plus group that's opec members and the group of ten not opec members in coming minutes here the day after the opec meeting that's going to take place on friday could be no announcement until valid logic body can meet to talk about the best way forward. and the reality paul is whatever the decision you can't please everyone can you. know exactly. the pressures from all sides aside. they are complicated you know the. u.s. shale industry which is putting is a spanner in the works of opec's previous monopoly on controlling the oil markets in opec used to be able to make a decision and you know a long period of time the decision would stick now there are so many other operators in the market that opec's were no longer holds sway in the oil industry and what opec is trying to do is fight fires and it's having difficulty doing that as the u.s. jail for example is putting billions of barrels into the markets opec's influence it's funding difficulty in actually making that influence matter. paul brennan live in vien

russia sort of kind of joined forces with the opec and opec plus smaller members have wondered whether they are losing say in the situation qatar has just decided to get out iran is looking for an exemption and right now what they would need is unity but they're not going to get much of that in the future looks like either because the new president a full pig is venezuelan and he's a close ally to him and doro and that might even spell more diplomatic controversy especially with the u.s. just inputs in front thank you so much. and he's just mentioned to venezuela here we are falling oil prices mismanagement and hyper inflation have ruined that as a way of us finances two million people have already fled president nicolas maduro now says he has signed deals worth billions of dollars with russia and he announced the move using social media. this is the video venezuelan president nicolas maduro posted online. we have signed contracts today to guarantee investments of more than five billion dollars with our russian partners and joint ventures to raise oil production. we are also guaranteei

opec scenario, which could possibly get a reaction from the united states if opec was to go down that route and that could become a sticking point. i am guessing, going on past behaviour, that they will get a quick tweet from president trump, depending on what they decide to do. let's talk about the politics of this. because we have a very vocal us president saying what he thinks. he wants the tabs open, he wa nts thinks. he wants the tabs open, he wants lots of oil in the markets right now. and then you have got obviously russia involved with opecbe leaning towards more production cuts, and then you have the likes of qatar saying they are leaving opec. then you have the likes of qatar saying they are leaving opeci com pletely saying they are leaving opeci completely agree. i think this meeting has become completely political, more political than the previous meeting they had and what makes it very interesting is that you have got the involvement of another non— opec player which is not participating in that meeting, which is obviously the united states, making it very difficult for the members to basically come up with a firm decision, especially saudi arabia, which is leading the opec group, and also happens to be a close ally of the us. you will most definitely see that the us will make an objection if there was more than an objection if there was more than a really large level of cuts, which would basically prop up prices at this point. and that is definitely going to get noticed in the us, as you rightly said. the us has ta

states their influence now is massive and opec's monopoly of power is think of the past now what we're expecting on friday is the opec plus members that's ten opec members that are closely aligned with the opec block very going to come here to vienna join the discussions and the expectation is that then figures will be put on exactly how much opec and its allies will cut production into twenty nineteen but as the saudi energy minister father said it's not a done deal it's still if as opposed to a when. sudan's government and on creeps a meeting in germany to try to end the fifteen year long conflict in darfur more than one point seven million people remain internally displaced while over three hundred thousand are living as refugees in neighboring chad him or can reports from giannina and west awful. for more than thirteen years this has been a lot of its miles home of displacement camp she was forced to flee from her original home with her mother when the weren't r. for reached her village but over the past few years in the camp have been doing telling or lower the. things here have become tough and we have children we need to cook and wash the

opec feel? thisopec but then there is vienna alliance between opec, not opec. reality in the market. it reflects changing reality geopolitics. the relationship between those countries is something new. alix: we see more countries leave? dan: qatar was specific. deep enmity, the blockade, the cold war. special case. oil, minor oil producer, they are huge l&g producer. that is the gain. alix: what is prices? $50, 60 dealers, u.s. marginal shale supplier. does that the right story today? dan: at the beginning of october, $86. so much for stability. $80, $65 to $80 is a balance hard to achieve. companies over the last few weeks have been reviewing budgets, planning to cut back. in our numbers, we expect next year, the u.s. to add 1.5 million barrels a day. it will not do that at $50 a barrel. people will not be spending money at that level. $20 billion, spending on shale, $3.8 billion. dan: look at numbers. domestic, total capital budget, 40% roughly united states. that shows you the degree to which money has come back from the rest of the world and investment is c

that opec and not opec producers are going to look to do what's in their own interests especially since oil prices a fall and nearly thirty three percent since early october so what i do think opec is going to try to do is maybe try to finesse the situation and announce a cut that looks like there's still a significant amount of oil on the market but in reality they cut a little bit more than president trump would like. be interested how much influence he has well in your opinion what's been driving down the prices of the last few months. well i think it all started when the u.s. was imposing sanctions on iran and they made the case that a reigning in sales were going to be forced to zero and they asked opec and not opec producers to make up the difference and then of course we got into november and the u.s. granted eight countries waivers and that surprised the market because all of a sudden we actually had an additional supplies that were unexpected and to compound matters we've seen a resurgence in production from nigeria and libya as a number of those supply disruptions have have really been mitigated over two thousand and eighteen. in your opinion and he was he loaned him o

opec has been waning. qatar since 1961 when it joined opec played that key intermediary role. if you look at opec the key marriage between saudi arabia and russia, that will be pivotal to the future of opec. >> you think opec has a future >> well, i think that it really depends on that marriage opec plus saudi and russia, i think that saudi arabia is keen to avoid the mistakes it made on market share and production in the '80s they know and everyone else is watching that they need to go 70 or above to balance their budget, whereas russia, you know, they have more wiggle room within the 40s and 50s that's going to be key looking forward. i think when you look at other opec members, this precedent by qatar, others could exit will others follow if they stay in i think this is a really -- more of a symbolic move but it could set a precedent for others moving forward >> russia is like the guy at your club who is not really a member but always seems to be there with somebody else russia is like that with opec. they're not a member but they're there. friday, the day after opec, they're the opec plus, wh

president donald trump he appealed to opec on twitter not to cut output at the same time though none opec member russia said it's ready to implement output cuts as has opec heavyweights saudi arabia the talk in vienna is of a one percent production cut. of a more and opaque and the oil market in general i'm joined by claudia kemp energy expert at the german institute for economic research good to have you with us let's let us start briefly with well the unity or not unity disunity of opec i mean saudi arabia of course the fact a leader of opec is it still speaking for all the other member states i would say no because the opec a small fragment they do not speak with one voice and we see that three countries at this moment play an important role on the international on market that is first saudi arabia that this russia and the u.s. so it's not opec who place really a big role on the international or market especially when it comes also to the price cartels however of course we've seen qatar already announcing that it will leave opaque is this just the tip of the iceberg i would say yes but we see that the opec is losing a power more and more and the qatar

prices at least from falling further so there are two things here there is a pick and opec plus opec is the traditional of opec plus is when russia and some other countries may join in default to make further curt's and to influence the price of oil. you know to have a higher price of crude the problem is that russia which is the key player outside of opec but joining in. us does not have much interest in making so many cuts it has agreed on one not so long ago it didn't have much influence i don't expect them to make a strong cuts in twenty nine thousand the last time you came in we talked about diversification though these are common is posed to be heading towards more sort of knowledge base economies where did that go then well unfortunately due to lower oil prices which is the key commodity for masts of the oil exporting countries of the region for most of the countries of the arab peninsula especially but also in northern africa so they didn't hit their targets no no no not at all they are far below and it's not the first year if the region's economies haven't been able to perhaps invest as much in knowle

opec ministers about to make a major announcement on production we are live at opec's headquarters in vienna it's thursday, december 6, 2018. "worldwide exchange" begins right now. ♪ > >>> good morning welcome to "worldwide exchange." i'm dominic chu. brian sullivan is live at the opeceeting in vienna he is live in the room where the opec ministers are meeting we'll get to him in a moment first a major selloff is under way across the globe futures pointing to a 460 point drop in the dow following tuesday's nearly 800 point drop in the dow the s&p also opening down 46 points and the nasdaq down 156 points trading suspended yesterday for george h.w. bush's funeral two-year note yields, 2.76% the ten-year at 2.88 in asia, it's been a down day as well apple suppliers deep in the red. taiwan's largan precision reporting a more than 25% drop in revenue last month. largan makes camera lenses for the iphone other suppliers like pegatron and foxconn are following sharply as well. you can see that in trading. today in european trading and asian trading. in europe the dax is off by 3% the cac is off by 2.5% the ftse 100 off by a similar amount checking in on the broader markets. oil is in focus with that big opec meeting oil prices now $51.27 for wti crude. off by 3%. the euro

indeed there's not opec states such as the united states their influence now is massive and opec's monopoly of power i. think of the past now what we're expecting on friday is the opec plus members that ten non opec members but closely aligned with the opec block very going to come here to vienna join the discussions and the expectation is that then figures will be put on exactly how much opec and its allies will cut production into twenty nineteen but as the saudi energy minister khaled out father said it's not a done deal it's still if as opposed to a wet time for a short break here in al-jazeera when we come back pleas for russia to release ukrainian sailors were captured during a naval confrontation. and waiting in line to get on line internet revolution arrives in cuba but things are moving more slowly than expected on the state. by the springtime flower of a mounting leak. to the first snowfall on the interstate. and either things are definitely turning cooler for us now over parts of china and as they turn cooler we're also going to see more in the way of wintery weather so a little bit more in the way of snow there as we head through friday and then on satur

opec as a cartel but at the same time what we're ignoring is there have been more opec members who have been added on to this group in the last 18 months in addition to that you have had additional non-opec being added to the whole opec plus group so let's not forget that yes, qatar leaving brings into question what's happening with opec right now and increases a little bit of uncertainty, although it's a small player, but let's not forget we have seen other players which have joined opec, opec plus in the last 18 months so we have to keep that in balance when we view this. >> i wonder how much of this rally is about the trade truce between the u.s. and china there have been concerns about global demand and the global economy. does that give oil a boost this idea that the trade war won't get worse? >> yes, indeed when you look at oil prices, a lot of things have happened on the u.s./china trade war front with what was announced but on the oil front as well we have seen the opec plus announcements coming through so definitely you have had a picks which you are of two strong comments supporting oil i wouldn't just put it down on u.s./china trade war i think opec's statements were strong an

opec member for fifty seven years called it a technical decision denying it has anything to do with the ongoing blockade owned by top opec producers saudi arabia and allies last year and it will focus on production of liquefied natural gas instead as it is relatively low compared to other opec members. opec the organization of petroleum exporting countries has fifteen member nations representing over half the world trade it calls for global market stability and is thought to have a major impact on oil prices let's bring in a doctor. instructor of all economic and visiting professor of energy economics at the. business school in london thanks for coming into the program. let's start with what you think about the market and how it's going to react to decision. it will have no effect on the global oil market or of prices qatar is a small player in optic and they already said they want to concentrate on building their. business liquefied natural gas there are number one in there we're the biggest producer the biggest exporter and the cheapest producer as well and there are intending to expand their production capacity of lend from seventy seven million tonnes currently into one twenty three million tons within two to three years so that is basically that decision yeah i mean co

opec that from the wholed resolution. >> the russians brought this deal to a close. did they exert influence and when the day out? >> inside opec, no. russia has no influence in opec. the whole agreement between opec and non-opec, you cannot ignore the important role of the russians. speaking to the iranian oil minister, who won a critical -- who won a critical agreement here. guy: great work. a lot of work being done in vienna by the entire bloomberg team.thank you very much indeed. vonnie: time for futures in focus now. perfect timing because oil is fighting at emily reported that opec deal. cutting 1.2 million barrels a day from the market, which is a little more than the market may have been expecting. let's bring in allen. is this a one-time move?are we done now ? is it price in, this 1.2 million barrel cut? >> i think the best thing they did is they have lowered expectations. the market was expecting a one million barrel cut in production. they came out with a little bit of a bump so they managed this announcement pretty well. you saw the market's reaction, but if you look at the price action, we are still stuck between 50 and 55 on wti, where we have been for

on twitter not to cut output at the same time though none opec member russia said it's ready to implement output cuts as has opec heavyweights saudi arabia the talk in vienna is of a one percent production cut. germany's likely to lose more than one hundred thousand jobs as the car industry shifts to electric mobility that is the sobering him of a massive study looking at how the adoption of electric cars could affect germany's job market the lost positions would likely ration factory jobs to highly paid design engineering visitations but the experts from the institute for employment research say that the german car industry could avoid the losses if it redoubles it at its to embrace electric mobility. of the hamburg port has joined forces with hyperloop transportation technologies to companies aim to develop and build the futuristic transportation technology not for people but for cargo of germany's largest cargo hop sends and receives over eight million containers a year most of which reach the port by truck the hyperloop plans offer a network of low pressure chips that allow the containers to travel at high s

opec and non-opec countries. just a few hours ago, the omanni oil ministry revealed quote, we have an agreement to cut several members of opecs russia are recommending a production cut and while no formal agreement on the amount of oil that will be cut will be removed from the market has been struck, oman's oil minister says there is still time to finalize details and that the opec nations have secured russia's participation in the cuts. will opec now band together with russia to sort of survive all the issues, number one, president trump saying keep the spigots open, and number two, qatar jumping out of opec saying we're done, we don't like how this group think is going. will one side win out before the other and how will this budding bromance between president vladimir putin and crown prince of saudi arabia impact decisions made at the meeting? we bring in former u.s. ambassador to saudi arabia, robert jordan, on this new international oil soap opera. good to see you, sir. thank you for joining us. your gut reaction to this? it sure looks like opec is linking with non-opec member russia and saying we're going to flout pres

you with us so who is really controlling the world's oil policy at the moment opec on all the opec countries. well i think opec realized some time ago that it's increasingly difficult to do it alone so they have lobbied the a-y. the group which is no opec plus and russia is playing an instrumental role here. of course those countries have a big care say and they can remove football them in the market but what we have seen is that when the price of oil is high enough you see a lot of response from the u.s. and so the u.s. shale supply right now is probably the most pressing issue do you think that with castle with during this week the first middle eastern nation to do so that other countries will pull out of opec and we'll see more more countries outside the organization as part of opec plus the within it. it's very difficult to understand the russian oil for countries to be either in or not in the organization of course you can say there is a certain concentration of power with the bigger players they have something to say and their decisions have this huge impact but of course at the same time if you if you l

president trump on ways they renewed his call for opec to keep production steady and reduce the cost of crude oil through twitter saying opec hopefully opec will be keeping all for oil flow as is not restricted the world does not want to see or need higher oil prices trump said in his tweet but saudi energy minister again highly as fatty told journalists when asked about donald trump's reaction to curbing production of crude by the king them or that world cartel that opec members don't need their approval from any foreign state when it comes on the issue of energy production but barred as always the hard part for opec members and their alliance is not just talking about a figure out number by rather how the group divides up the cuts to of all types members of libya and nigeria have asked to be exempt from the cost like they were the last round of cuts all the old delegates are trying to pursue both countries to cooperate so exactly there is an agreement just how much is going to be actually cut that remains a question on told their meeting tomorrow with russia. it's time now for a quick break but hang here because when we return christy a

bit of hardball and they waiting for opec to decide how much willing -- they are willing to put into the group cut and how much opec+ can add. are hoping that opecld cut about 650,000 and an additional 350,000 from non-opec. russia would bet the brunt of this. they are looking at russia potentially 150,000-200,000. the problem is middle eastern ampanies -- countries need higher oil price. russia's budget is in surplus and they are ok with a lower oil price. when you look at oil price in rubles, it is much better than it is in dollars. opec countries meet until noon. francine: what is market sentiment? it seems echo lot of traders were taken on the wrong foot yesterday. annmarie: yes, that's right. many ministers did not confident. they are not confident there will be a deal. some say the saudi says that the bar so high that if a deal does not come through, they can blame everyone, it would not just be the kingdom's fault. they are also saying they are walking a very fine line and the fact that the saudi's are having trouble defying the call from the president's lower oil prices given his support for the kingdom following the killing of jamal kha

opec and non— opec leaders that have been arriving in vienna for a eight crucial meeting. saudi arabia has indicated a need for state reductions in output, but has come under pressure from donald trump to push oil prices lower. last night as he left opec‘s headquarters, and's oil minister said that the cuts have been recommended at that numbers have not been discussed. we have not discussed them. is there are a number? not yet. work in progress. we call it a reduction. this is uncharted territory! a lot of pressure from reporters there. our a nalyst told pressure from reporters there. our analyst told us how much global output may be reduced. the number recommended by opec‘s open it is abouti.3 recommended by opec‘s open it is about 1.3 million barrels per day. the recommendation is to cut from that amount into current levels of. will this have an impact on oil prices? it will definitely prop them up prices? it will definitely prop them up from where they are. we have seen prices are down quite a bit in recent weeks, also because of the financial markets tell —— turmoil. and for the expectation that there will be an oversupply next year. how will be an oversupply next year. how will president trump react? will he be disappointed saudi arabia? he will not be happy, he will maintain the pressure but i think opec they need to. will the us continued to pump oil production is opec reduces its oil output? yes, us production has been rising quite strongly and will continue rising next year as well. they will follow economics and follow if it makes sense for them. they will produce as much as they can be qatar has said that they will be departing from the oil cartel. what kind of impact will it have? be departing from the oil cartel. what kind of impact will it have ?m has political overtones are. not a direct impact. probably not any impact on opec‘s efforts to restrain. maybe a bit psychological impact. what are your insights? i would say the high 60s to low 70s, it opec cuts about 1.3 or more. the next generation of mobile sealer services moving in an interesting direction. five g is set to be much faster and reliable than its predecessor. the agricultural industry is milking this new technology for all it is worth. there is a monitoring system that could revolutionise the dairy business. a very

opec, non-opec alliance rather well and efficiently. but if you take a step back, i not soay now i'm surprised, because the day after day after analysis, if you will, with a little bit that whatht, is you're seeing is a completely new structure emerge here. power, balances being redrawn. now we see that two years ago russia was a participant from outside opecging.w it's russia is planning to do a deal withcooperation opec. and that means the power between arabiaand saudi especially will need to be redefined. that's why it's taking longer looking moree difficult this time. >> on the short term, meanwhile, saw the graphs of what the crude price is doing. everything is sinking at the moment. how much longer can that be allowed to persist? the pressure really is on to do something. when will we see something? think most market participants are hoping for a in then today, sometime afternoon, vienna time, when the russian energy minister is back in town. and basically, what stalled or held up things yesterday was the saudi minister. to me, my characterization, putting his foot down, that russia needed to its fair share. the last time around, russia cut than saudi arabia did, even though russia was a bigger producer. so i think that's what is taking time. we do hope to see some decision. and it looks like it's going to be a cut. but i think the b

things oil opec and one donald trump thank you for joining us sarah i want to know first when people hear opec they don't know they don't know what i'm referring to it tells a little bit about who opec is what it is they control and how much do they rule kind of over the global oil price so opec is the organization of the petroleum exporting countries so this was a builder done made back founded in one nine hundred sixty by five of the world's top largest producers back then so it's made up of fifteen countries now which are still the world's largest producers in reality opec is one of the most powerful players in the global oil market in the first place and they produce about thirty two million barrels per day but opec argues that it's better for the oil production to be in the hands of an organization and not private companies now over the years opec has been regularly criticized for having control of the global oil market and it is important to note that the opec meeting happened today comes after a drastic crush of oil prices that went down about thirty percent in just the last two months wow that's so great about trump isn't alone and demanding that the group keep i mean the id

opec to keep up production levels — saying ‘the world does not want to see, or need, higher oil prices‘. saudi arabia — the de facto leader of opec — has been pushing for total production to be cut by at least 1.3 million barrels per day, or 1.3% of global output. others think that's far too much. our correspondent bethany bell is at opecthany bell is with us now. do you think that opec will defy trump as michael for lower oil prices? saudi arabia certainly says that it wants to see this cut in oil prices, cut in output to shore up the full in oil prices. as you mentioned, 1.3 million barrels per. the question is whether it can be agreed to in vienna. there is this pressure from the united states, and saudi arabia is caught between a rock and a hard place on this. president trump has made it clear that he wants to see oil keeps flowing and saudi arabia want to try and shore up those prices. it would also have to include russia, saudi arabia, the de facto leader of opec, suggesting that russia should that output by up to 300,000 barrels a day. it isn't clear if russia would be on board but negotiations are taking place today. an interesting time with katter announcing they are leaving opec, iran now subject to new sanctions, meaning it would cut how much they deliver to the markets in terms of oil —— how much they deliv