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Oil: OPEC Set To Consider Million-Barrel Output Cut

Published 10/04/2022, 05:55 AM
Updated 03/27/2024, 08:10 AM

Credit Suisse Group (NYSE:CS) crashed yesterday. The surge in credit default swaps, which reached levels never seen before in history today, raised some concerns about the bank's strength.

Reuters reports that the CEO, Ulrick Koerner, has written to close associates to reassure them about liquidity and capital. Energy companies rose, STOXX 600 index + 1.7%.

Utilities are also positive. On Friday, the EU energy ministers agreed on consumption cuts and the extraordinary tax on energy companies. Still, no agreement was reached on the price cap (Germany strongly opposes and reiterates that the priority is reducing demand).

A new meeting is scheduled for Oct.11-12. The Italian economy probably contracted in the third quarter and will continue to contract in the next two quarters, according to the latest forecasts by the Treasury.

According to the Treasury's Economic and Finance Document (Def), released Friday evening, the recession has already begun.

This is the first country that foresees a recession, which we remember to be defined as such, must have two consecutive negative quarters on the GDP side.

Brent oil and WTI oil (CL) up 4% yesterday. Some delegates from OPEC Plus member countries spoke to reporters ahead of Wednesday's meeting in Vienna.

The desire to cut production by one million barrels a day is taking shape inside the cartel. It is certainly excellent news for Oil: for the law of supply and demand, a supply cut that causes oil shortage is good for prices.

If we are in the presence of a cut of one million barrels a day, the price will return to $ 100 again. With a cut instead of 500,000 barrels a day, we will probably see highs in the ​​$85 area, very close to the current ones.

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Banca Generali (BIT:GASI): According to Bloomberg rumors, Generali is considering a transaction with US asset manager Guggenheim.

According to rumors, Guggenheim could finance a possible acquisition through the sale of Mediobanca (OTC:MDIBY).

The transaction makes sense. Mediobanca has repeatedly expressed its will to grow in the insurance sector and asset management, a missing piece that Banca Generali could finally gather.

According to my model, the stock is worth 24, but a possible sale at a premium could end at a maximum of 36 Eur, bringing prices to these levels. The stock is to be traded only from a speculative point of view.

Tesla (NASDAQ:TSLA) delivered 343,830 cars in the third quarter, fifteen thousand less than the consensus expected.

The company explained that the figure was penalized by logistical problems.

According to my model, the stock is worth $ 170, we are facing extremely high prices in terms of multiples, so I do not recommend long-term operations on the stock.

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