OPEC+ Output Cuts Aren’t Advisable Right Now, White House Says
Key takeaways:
- The White House does not think that oil production cuts are advisable at this moment.
- The administration will work with producers and consumers to ensure energy markets support economic growth and lower prices for American consumers.
- US retail gasoline prices have declined by more than $1.50 per gallon since a peak last summer.
Counter arguments:
- OPEC+ believes that the production cuts are necessary to stabilize the market.
- Some argue that the production cuts will lead to higher oil prices.
UAE Ruler Names Son Crown Prince, Elevates Other Royals
Key Takeaways
- The ruler of the UAE has named his son crown prince, positioning him as the next in line for leadership in the major OPEC oil exporter.
- The Al Nahyan ruling family is among the world's richest, with a net worth of at least $300 billion, thanks to their complex holdings and UAE's vast oil reserves.
- The shift to a younger leader and the promotion of powerful siblings is a careful division of power and a move towards greater state centralization within the Gulf monarchies.
Bahrain’s Economic Growth Hits Fastest in Almost a Decade
Key takeaways:
- Bahrain's economy grew at the fastest pace since 2013 last year.
- Non-oil growth was the main driver of economic output.
- Bahrain still relies heavily on energy prices to help balance the budget.
Counter arguments:
- The oil economy shrunk 1.4% last year.
- Bahrain pushed back its target of balancing the budget by two years to 2024.
Kuwait Wealth Fund Sells €1.4 Billion of Mercedes Shares
Key takeaways:
- The KIA will own around 53 million shares after the share placement of about 20 million shares.
- Mercedes shares have surged 50% from July to March and have quadrupled since their March 2020 pandemic low.
- Chief Executive Officer Ola K?llenius has focused the automaker on more profitable segments and pared back its offerings of entry-level models.
Counter arguments:
- Mercedes has cut the price of flagship electric models in China.
- The European and US economies are weakening.
Dubai’s Latest Boom Is Pricing Out the Expats It Once Coveted
Key takeaways:
- Rental prices for villas and apartments have increased significantly in the past year.
- The cost of living in Dubai is becoming increasingly expensive, making it feel like a playground for the super-rich.
- Many residents are leaving Dubai due to rising living costs and looking for opportunities in other markets.
Counter arguments:
- Inflation in Dubai is still lower than in London or New York.
- Many of the costs associated with living in Dubai are fixed, and many residents send money home to their families rather than spend it.
