OECD Forecasts, Iran Plans & Lockdown in Malaysia

1 Jun 2021

Yesterday was relatively calm, due to the weekend in the United States (as usual, it was volatile except for the cryptocurrency markets). Which, however, did not mean that the news had ceased to be generated.

The OECD updated its forecasts for the pace of development of the world economy. According to the Organization for Economic Co-operation and Development, the global economy will grow 5.8% this year and 4.4% next, raising its estimates from 5.6% and 4.0%, respectively, in its latest forecasts released in March. In this case, the US economy will grow by 6.9% compared to the previous forecast of 6.5%. The reason for this optimism is the deployment of a vaccination campaign around the world, as well as trillions of injections into the world's largest economy.

In addition, the number of cases in India continued to decline at a very impressive rate (as of this morning, we are talking about 126K + cases after 400K + less than a month ago).

Despite this, the pandemic situation in a number of countries continues to be difficult. For example, Malaysia from today for: goes into a nationwide lockdown to curb rapidly growing Covid-19 cases in the country.

Today is interesting, first of all, with the announcement of the results of the OPEC + meeting. It is expected that the cartel and co will leave plans to increase production unchanged and by the end of July the market will have an additional couple of million barrels of oil per day relative to March. Judging by the dynamics of oil today, this does not bother buyers much. As well as the fact that the Iranian oil minister announced the country's plans to increase oil production to 6.5 million b / d from the current 2.5 million b / d. Our position is unchanged - oil has climbed too high and at current prices it can and should be sold.