and non-opec producers over the weekend in doha. but that bounce in prices could be short-lived. kuwaiti production was slashed by 60% on sunday as thousands of unionized workers refused to come into work. kuwaiti officials now say they plan to return production to normal levels in the coming days in spi of kuwait's 13,000-strong oil and gas union are protesting cuts to wages and benefits as the oil-producing sovereign looks to tighten its budget. while many expat workers remain on the job, the kuwaiti government is taking a hard line with the strikers, threatening to bring in more workers from abroad to fill in the gaps, as well as take legal action. an official statement released earlier today even charged union members with threatening national security. but even if the protests are short-lived, it's clear the country's main source of income was easily put at risk and that can't be anything other than a cautionary tale for other gulf oil producers like saudi arabia, the uae, as well as bahrain. for nbr in kuwait, i'm hadley gambl

, how the opec and not opec members behaved when they agree to a production cut and what we 2001, excuse a, 2002, after the meeting, the only countries outside of opec that actually agreed to a production cut were mexico and norway. everyone else, including russia increased production. even if opec agrees to a free come it depends on what these other producers do. think a lot of these producers, not only the ones inside opec, but the ones outside thank you mentioned are struggling. everybody has an incentive to maximize production right now. opec can invest and is investing -- the middle east is the only part of the world increasing going forward. with domestic demand faltering internally, there only outlet is to maximize capacity and it makes financial sense. projects are economical below 30. it makes sense for them to maximize output and let's just bring it back to last year. the market was overbought in 2013. we are overbought right now. we had saudi and iraqi production increasing. remain -- that this those same factors remain on the table. on the downside, there may not return back,

think there is a june opec meeting on the second. if you did see prices spiral out of control, they could use that to undo a lot of what we have been seeing here. i think it is semantics that have been playing through. they are not cutting. angie: where is the smart money going? i want to reference your favorite bloomberg chart of the day as to what you are seeing. fact --ve looked at the one of the interesting phenomenon's is that when you see financial conditions, and the bloomberg use this with that in aggregation of credit spreads, money market spreads, implied volatility, the s&p seeing and what were from bond yields as well, and you can see that financial conditions have generally been improving over the last couple of months, and at the same time, the feds prefer breaking the measures of inflation expectations, five-year swaps have been going down in the last couple of weeks. expectationsght down, and i think that is really positive. as long as the expectations for june meeting stay anchored around 15% to 20%, but a financial

jonathan: opec has died about 15 ?imes, is opec really dead/ javier: i would not say so. we sought happening in the 80's and the late 90's. but certainly i would agree that opec -- if it's not dying, it's absolutely in intensive care. other countries with russia cannot agree on freezing -- this is almost a record level. it's a difficult discussion, it's not going to happen. i don't see that happening. the future of opec is in question. david: the saudi arabia really want to deal at all? it seems to me for some time they've been playing a of keeping oil prices down to drive a higher cost producers. the get to blame iran right now, but if iran were there, do they really want an agreement that will raise oil prices? libby: anything have to. you saw with the downgrade of their debt, they are trying to raise the money. socially, to break even for these countries -- for their social and economic budgets to work, it is significantly higher than what it costs for them to pull oil out of the ground. it's becoming a problem. i do think they want to get some kind of consensus. i thi

the loss of revenue is wreaking havoc on many opic -- opec countries. reporter: one may wonder why financial markets didn't really care. we'll talk to our financial correspondent on wall street. markets made gains on monday. e e e e e e e pric of oil? has this become irrelevant? >> first of all, what an emotional ride. first there was hope that an agreement would be achieved and then this huge disappointment early on, monday, oil prices sold off, lost 4% and by the end of the day, oil prices were only lower 1%. actually, oil stocks were among the bigger winners and for the first time since july of last year, the dow jones industrial average across. i talked to so many people and there was a lot of skepticism if there would be big chances of an agreement the past weekend and then besides the failed attempt to production freeze, there is the feeling that we might have seen the bottom of oil prices. does not mean we might not fall back to $30 a barrel or so but the talk that we might go as low as $20 or lower, nobody really expects that. reporter: it's ear

i'm not sure what they want saudi arabia to do, but you have former opec members who withrejoined opec, as indonesia. they have rejoined, but they're not actually exporting oil. i guess their job is to get in inside, by don't think they have this way as far as policy orientations. in the end, when you look at what has been going on, h producer after dooh relations are in disarray. it will be difficult in june for anything conclusive to come out. tom: on friday, we looked at singapore, the singapore dollar. give us an update on the emerging market tigers of asia? are the tigerish lichen jungle book, or not. simon: i will go with possibly not in the current circumstances. where we are now, there will be . little bit of caution the core story kicks back in here which is what drove the markets. what will the money go to? destined travesty, and all the other things, but it will head to emerging markets again. remember, quite often, investors tend to be quite lacking in any differentiation. francine: this is a problem, sometimes there are markets that are oversold. simon: absolutely. opposit

lauren: no deal after months of speculation after opec production freeze. leaders fail to reach an agreement. the new sending global stock prices stumble. oil coming back a bit after comments of russia's prime minister after a deal could happen. good morning, i'm lauren simonetti. nicole: i good too excited. good morning, i'm nicole petallides. checking on u.s. stock market futures, right now dow futures down 43, s&p futures down 5. lauren: lower oil prices as well as manufacturing prices. japan's nikkei average sinking 3.4%. china's shanghai sliding. nicole: donald trump expected to be the big winner, but ted cruz takes all 14 delegates in wyoming over the weekend. lauren: on the democratic side hillary clinton and bernie sanders argue about who plans to raise minimum wage will do to the economy. in sports, playoffs underway with both nba and nhl last night, we will tell you who came out on top including an overtime thriller right here in new york. nicole: 5:01 a.m. monday morning, april 18th, welcome to fbn:am, first look at morning markets, breaking news

betty: after yesterday's big rally, oil moves lower ahead of this weekend's opec meeting. how a potential agreement to freeze production at historically high levels could affect oil prices. mark: shares of tesla are following, tumbling, posting their biggest drop since 2014 after the u.k. promised growth would not be smooth. there will be a significant amount to achieve. we are into the trading day and that's check with the markets are heading. let's go to julie hyman with the latest. julie: let's take a look at the major averages. we are seeing the lift on chinese export data, bank earnings in the u.s. and major averages hanging on around their highs of the session. if you take a look at the volume volumebloomberg, it is by industry and we have a big surge in volume in the financials, energy stocks and materials. industrials not too shabby. an increase has come with the earning season. really after two weeks of lower than usual volatility and volume. let's get to oil and that evolving reaction to the weekly inventory data. wti has now turned positive on those numbers, eve

a freeze can only be effective if opec members -- opec member iran as well as non-opec members join the deal. oil prices fell after the earth wakes dampen investor sentiment. tokyo stocks plunged more than 500 points. >> tokyo shares tumbled as investors worried about the impact on business as well as the failed talks to limit oil production. the nikkei lost 3.4% to close at 16,275. the broader topics also fell by more than 3%. as we have been reporting, operations of several major parts makers in the region are disrupted. toyota shares were down nearly 4.8% as the shortage of auto parts rippled through the supply chain in the rest of the country. renesas electronics shares tumbled. sony was down 6.8%. an analyst warned that if production doesn't resume soon, apple's iphone 7 may be delayed. sony makes image sensors for ta down. oil prices tumbled after producers failed to agree to an output freeze. >> thanks very much for that report. many investors across the asia pacific region lost their appetite for stocks after the fall in oil prices. let's look at china. shanghai composite down.

after opec and non-opec producers failed to agree on a production freeze, there are more questions in the air. here is the situation. after four years, crude began to plummet in may 2014. prices dropped 75% over the next 18 months, turning oil producers into turmoil. -- throwing oil producers into turmoil. instead of tapping the glut by pumping less, middle east exporters opted for a price war to defend their market share. and, adding to the oversupply, iran is ramping up exports. that comes after an agreement over there nuclear program, opened up the bans on exports. here is the background. opec was formed in 1960, and members use their power for political and economic ends, jockeying the global economy with an embargo in 1973. and in the 1980's in fighting the -- gave rise to new market-based prices. here is the argument. oil prices are not expected to rise dramatically anytime soon. and some experts worry that bargain prices will begin a period of underinvestment in oil production, that could set the stage for another surge in prices. opec members are torn over a long-term strategy

they said they would not accept the deal unless all opec members join. will not agree to a freeze until it has boosted its output levels. the talks dragged on 10 hours longer than planned. rate house prices excel a as credit and easing measures boost demand. new home prices climbed and 62 47 in compared to february. let's get more on the moves in the markets with juliet as japan goes to a lunch break. i think investors will this lunch break, down 3% on the session. oil producers really weigh on sentiment, but also japan dealing with the stronger yen and fallout from another earthquake over the weekend. the shanghai composite down 1.5%, the biggest fall in three weeks. energy producers under significant pressure. in australia, the asx 200 down, energy producers also coming under pressure, and qantas falling the most anomalous two years. we have seen an acceleration in china home prices. a lot of property stocks under pressure, china's oversee property and reinsurance, both down 1.5% to 2%. it is a downbeat day, but were looking at some winners. new crest

and non-opec members. lossespulling back those through the rest of today and it looks like the stoxx europe 600 will finish the monday session higher. the best and worst performing industry groups. look at oil, it was down 4%. down a mere quarter of 1%. thanks -- banks come a travel and leisure, the best performing groups today after the first week of gains in five weeks. the european close is a matter of minutes away. imf leaders meet in d.c.. questions about a third greek bailout loan. we get the thoughts from the eu economic and financial affairs commissioner and former french finance minister pierre moscovici. ♪ thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month.

very doha and opec chaos. and from niagara falls to the hamptons, from staten island to brooklyn, the empire state votes. good morning, everyone. this is "bloomberg surveillance ," live from our world headquarters in new york. tuesday, primary day, april 19. i'm tom keene in london. -- i'm tom keene. francine lacqua is in london. anyone care over there what we see out of the secretary and mr. trump? francine: everyone cares. anything that would be seen as too extreme is what europeans would be afraid of. there is a lot of interest. tom: megan murphy will join us in the hour to give us important perspective. right now to our bloomberg tuesday first word news with nejra cehic. nehra: an attack by the taliban has reportedly led to hundreds of casualties. a car bomb louisville outside a government security agency, followed by a gunbattle. 20 people were killed and there were reports of 300 wounded. the taliban has claimed responsibility. last week it announced its storm -- the start of its spring effective -- of i

does this say something about the relevance of opec? one of the biggest things is the prince is speaking at the end of this month and people have to pay close attention to what he says now because he is the undisputed champ at this point. i don't see any way around that. are going topeople focus on production declines in the united states and you are never going to escape one thing. the failure of this meeting is that it solidifies the cap. if the saudi's are saying demand, you are going to have a job to do, we have to produce, so we have to make sure china stays on track. the economic indicators have been uneven at rest, so we have to look at that. .uwait is a short-term issue that's only going to do so much. not as a labor problem, reserve problem. going forward, durable concerns are u.s. production declines and making sure demand stays on track. david: thank you very much. coming up in the next 20 minutes, voters in new york state had to the polls. donald trump is expected to notch an easy win, but the democratic race is tighter. a w

for me, when i look at who is attending opec and non-opec, opec has been suspended. it only works when there is a quota system. until iran comes up with a quota system that everybody agrees on, probably by the a beer whenever they meet, then all of these tensions will continue to remain. anna: gabriel, do you think the risk of oil is down, because we are seeing disappointment. we have seen a run-up in prices to this meeting? gabriel: going to jump a little bit. but in terms of opec, and what it can do, i agree entirely with professor ramady. they only have pricing downwards, they can push down the price. if they try to push upwards, eventually you did a level when start producing even more. and eventually the canadians and so on. plus, there is the fact that russia wasuntries -- to freeze. of course they do. 11 and a half million barrels a day, the most they've ever produced. i do not believe in the freeze. and oil prices are not going to surge. there will be supply and demand what opec doest is almost irrelevant. anna: it depends on who signs it, ineasing production

some say this is connected to the upcoming opec meeting. how do you see that? >> it was basically all of those comments out of saudi arabia. probably there will not be any production cut anytime soon. to me, it is a miracle, relief that we had a lot of talk but no action. there does not seem to be any discipline when it comes to the opec countries and other oil-producing countries like the united states, and especially iran. all of this talk was a reason why oil prices dropped by the 4% on friday. so, it looks like we might be nearing the $38 per barrel mark in the future. sarah: we will see if opec countries find a common ground. thank you so much for your analysis. ok, we know that today is april 1, which is of course the perfect opportunity for pranks. companies want to take advantage of that. some spend huge amounts of money on fake commercials. google is now the biggest culprit asked her, but has got itself into a bit of trouble this year -- prankster, but has got itself into a bit of trouble this year. >> google had to remove its "mike dropp" after a man

lauren: watching oil prices ahead of the opec oil meeting this weekend. will they agreed to freeze production? oil up 8% and right now just under $41 a barrel. nicole: front and center, earnings from citigroup. will it below expectations? lauren: microsoft suing the justice department over a gag order when the customer emails were explained. nicole: hockey fans get their moment in the sun. the first matchup in the nhl playoffs. it is april 15th, tax day but the good news is you have an extra three days to file this year. welcome to "fbn a.m.," the latest breaking news, what to expect for the day ahead. nicole: the race to the white house is tightening between hillary clinton and bernie sanders, clinton leads by just two points urging sanders by 46% down from the 13 point advantage she had last month before sanders won three of the eight most recent concerts. clinton's support from women falling 11 points, sanders is up by 9 points. the two candidates turning up the heat with 5 days until the critical new york state primary sparring over a number of issues

no matter what happens at the opec meeting? >> a cut in production -- it's built in already, but people are so afraid of selling into that opec meeting. no matter what, crude backs off, market backs off. but we make newhi s. >> let's get to our next guest who had a bold call on oil right here on "fast money" earlier this year. take a listen. >> it means oil is likely to actually go higher. long oil, short interest, long/short trade. >> since then, crude oil has rallied more than 35%, while the s&p 500 is up 10%. marco is the global head of strategies at jpmorgan. marco, always great to have you with us. >> thank you, melissa. >> we had a pretty spirited debate as to where the markets go. i think we're at the point where the markets are, what do you do? what do you think? >> i can actually connect with both sides. my view is that sort of market will go lower. now, there is some risk that basically if we breach 2100, if you look at the 2100 now, it's a 12-month price. if we can bridge that long-term price momentum, it will basica

caught in between are the other 11 opec members such as indonesia. >> and the threat of commodity. so once the price of oil decreases, that means they are declining. >> let's see how the rest of the markets are doing. and street opening down coming back into positive. 6%.500 points at stocks closed higher this monday. many industry sectors were higher. a tough day for energy and technology. they are among the worst performing stocks. let's take a look at some of the other business headlines. the european competition commission accuses google of abusing its dominance. they're looking at the impact of android content. guilty offines google market abuse, it can be a fine of $7 billion or 10% of its revenue. the castle run and 12 parsecs and now the millennium falcon is boosting hasbro. revenue rose thanks to massive interest in star wars merchandise. expects strong sales to continue as the force awakens is to be released on dvd later this year. it's the last day to make an offer for yahoo!. the telecom giant verizon is pegged as the favorite. the sale comes up for yahoo! abandoned pla

not participating in this wii's opec meeting people -- in this week's opec meeting. and void blankfein pushes the in years.st-cutting -- and lloyd blankfein pushes the deepest cost-cutting in years. david: welcome to "bloomberg ," i'm david westin, here with jonathan ferro and vonnie quinn. jon: what a morning already. a weekend packed full of action. doha meetinge as well. let's bring you an update on the markets. we are 30 minutes away from the open in new york. futures negative, dow futures up 29 points. in europe we turn lower but we are headed for a week of gains on the stoxx 600, up to four weeks of losses. crude is the story. wti down two percentage points, about 40 bucks a barrel at $40.66. the iranian oil minister will not be in doha. they are sending a representative. what does that mean for an output freeze prospect for all of them? let's get to vonnie quinn. vonnie: bernie sanders and hillary clinton went on the attack last night, facing off in a debate in brooklyn ahead of new york's crucial primary. they questioned each other's judgment and record,

emp and non-opec producers? more importantly, it is not in anybody's interest at this point, particularly versus -- particularly saudi versus iran. russia has a flea flow currency -- russia has a free-flow currency. that is why we will see a soft agreement coming out of it. francine: they agreed to freeze production and then do not follow through? if that happens, that means the price of oil goes down, right? jeff: when you look at opec and think about where is production going to be six months out, you have 500,000 barrels per day of disruptions now, and that is coming from iraq over the northern kurdish fields, from nigeria as well as venezuela. all equal, you see a reversal of those disruptions, you will get more supply out of opec. that does not include the smaller disruptions we have from some of the non-opec players, which is being reflected in the term market with tighter structure. regardless of what comes of this meeting, you have those disruptions you can come back online. francine: the basis of this i

this orange line is the proposed level of freezing opec and non-opec producers begin to freeze. just around 29 million barrels of oil. this is what opec is producing now. around 28 million barrels of oil. basically, opec has room to increase production, if they were to decide on a january level threes. so will a freeze do anything to the supply-demand dynamic in the oil markets? there is a deficit under the way, no matter what. deficit.e looking at a q4, you are looking at a deficit, if opec loses around these levels. but the fact is, supply was coming in regardless of any freeze. supply disruptions in nigeria, also fallingsupply here in the u.s., under 9 million a day. you also have supply falling in places like mexico, china, brazil. so will doha actually move the price at all? we have seen a huge run-up in brent prices into the opec meeting. the history of what doha actually is. opec and998, you saw russia and mexico cut production. you did see prices move higher, even though russia did not abide by the breeze. around 2001, the same situation. another big rally, even though t

member: russia is not a of opec, but it is attending. what about iran? minister iranian oil might not go, but might send a representative. the idea that they will meet has had a huge impact on the market. brent long positions versus wti it long positions. they are so high. in terms of brent, they are around records. what kind of disappointment fallout on the price will we see monday morning? >> we think it will be meaningful. although a lot of the commodities specialist, clients who trade oil that do all the detailed work, they haven't really thought this was going to amount to a lot in terms of this there is a segment of the oil trading market that obviously believes we have seen extraetoric generate length. we have had massive inflows that have come in over the several past weeks. the net length has come from every angle, whether retail etf's or traditional institutional investors, so we think it will be disappointing. saymuch, it is hard to because what we have seen is in this rally, the market has pushed aside fundamentally bearish information and da

opec is blue. rebalancing is starting to happen. when you don't have iran attending -- >> no, but you have saudi arabia . the saudi's have made it clear that they are not going to balance the market by reducing production. they have made it clear that they are the low cost producers, and the high cost duces have to rebalance the market. now that they are actually seeing u.s. production already eia, and non-opec in general expects to be down. this is not the time to say our plan was wrong. scarlet: doubling down. ok. think you so much for joining us today. netflix and ibm reporting after the bell today. what to expect in the first quarter earnings. ♪ alix: this is bloomberg markets. i am alix steel. scarlet: i am scarlet fu. let's get you a quick check on .he markets now as julie was mentioning, energy leading. alix: let's go to abigail doolittle, live from the nasdaq. you are starting with netflix today. abigail: we are. netflix shares are lower. russia for the stock is the news that amazon will be launching a video only subscript

now the urging of the oil minister or opec. betty: that was ed morris. speaking earlier on bloomberg tv when he talked about how he sees oil markets. so the theme of "what'd you miss?" is going to be commodities in general. joe weisenthal is the cohost. he joins me now. what did you think of reaction in the oil market? joe: in a way, i was surprised, and in a way, totally unsurprised. it was not a failure, they did not come to any agreement. the selloff made sense. funny, and are so markets always have a way of doing the opposite of what seems like the obvious thing. so that they come back, the big rally and risk asset did nothing to surprising. tell you? does that oil markets have moved on from opec and fundamentals matter more? joe: to me, the really interesting thing, and i don't think we have a clear answer about this is, what caused the huge rally to see basically everything since the middle of february? rates are higher, u.s. equity, home prices, so what caused that? gave the oil rebound people a lot of confidence, by everything. but other possibil

thing, the oil minister who expressed his doubts about opec and non-opec countries being able to pull off the norwegians and mexicans aren't even at this meeting. they both declined to attend. guy: this is the story from earlier on this week, they effectively sees the oversupply story almost disappearing towards the back end of this year. as you can see, towards the backend, they see the oversupply story disappearing. that is an amazing turn of events considering how the market was set up. think the oil market took the report in stride. i think a lot of people think we will see a decline in the glut. their main argument is at the shaleroducers -- producers could produce even less. you can see that if you look at u.s. production. we are down and just beliefs 9 million barrels a day now. they have had some success in causing distress in shale country. on: watching very carefully a daily basis now. let's carry on that conversation with the head of the oil market division at the international energy agency joins us now from paris. victory?declare we aren't talking about it in terms of vic

opec leaders met in qatar today to discuss a cap on production. that would tighten the supply and hopefully lift oil prices for those countries, but iran did not send a representative to the meeting and says it will not cap its own production. oil prices have been rising mostly in anticipation of the deal, the next opportunity for a deal is in june. >>> meantime iran was showing off its new missile defense system from russia. russia originally canceled the sale under pressure from the united states, but after the international nuclear deal, russia went through with it. iran is insisting it poses no threat to its neighbors, the iranian president has vowed to defend other muslim countries against outside threats. >>> now to the race for the white house, campaigns are in full swing ahead of tuesday's primary in new york state. bryan llenas has more now for us from new york. >> reporter: tensions are rising ahead of tuesday's all- important new york state primary. this as both democrats and republicans brace for a possible contested convention. >> i t

it'll be a challenge getting all opec members to agree on something. whether it's a freeze or a cut. >> all right. let's look forward to it so far. great to have you on with us. scott darling the regional head of oil and gas for jpmorgan here with me. these are the stories making headlines around the world. myanmar's auks is to cut back on her government responsibilities just days after taking on four ministries. she is giving up energy and education portfolios but will remain foreign minister and head of the president's office. parliament has also proposed giving her the role of state counselor and this position is said to be similar to prime minister. no reason is given for the changes. authorities are suspending the peak time requirement of three people to one car to see what happens to traffic flow. abandonning the policy will be . d news for jockeys an international study says jakarta is the world's most congested city. and the blue origin space project has been completed. the reusable vehicles blasted off in texas and returned to earth with an up

, and non-opec are going to be meeting in russia in m may, and russia said thatt is not the case, but it may be a situation where the producers are trying to bluff into the meeting and market responding, but it up a buck, and this is going to be going on all summer, because nobody in opec wants anybody else in opec to drive the bus. >> i was going to say that headline coming out of russia specifically have been job owning up the market, and anthony, how are you looking at the market? we will have expiration at the close of the end of today, and what do you do with crude today? >> well, jackie, that signaled the demise of opec, and not only did iran at the end, but iraq and kuwait did not address what was going on in the meeting, and they are on their own, and they caused it themselves, and if they had taken a leadership role, and said they will reduce production, other companies would have fallen in line, but now they have to job own it, because it does not look like they will cut, and it is strong out to dday, and there is resil sense in the crude oil between the high right now, 42.1

now you got this market share battle and sure enough, opec, although this was not a pure opec meeting, certainly does not come out of this meeting looking any stronger. let's make the bear case now. i think it was joe that mentioned something about oil not falling as much as anybody some of the shorts had fall. they can thank kuwait. there's a big strike in oil workers for kuwait. we will put a little red line through that, because al arabia reports that kuwait is saying in a couple days we'll be back to full production and maybe go to two million barrels a day maybe as a thumb in the eye to the striking workers. kuwait may not hold the bull case for long. do you have u.s. production down 700,000 barrels year over year. maybe we get opec to somehow come back together in another meeting before june. those are the bull case fundamentals. supply/demand doesn't come away that different except for kuwait but i can't highlight enough, lot of the reports in this region suggest kuwait is not going to last long. we'll see what happens. there's your bull case, your bear case. all the cases. >>

you've got opec and non-opec producers trying to find some form of accord on a freeze, not a cut. that's going to be tough if the likes of the irans, libyans, and the united states do not play ball. now, talking of the united states, matt has been talking to one of the most influential men in u.s. oil. that's john watson. what did he have to say? >> hi there, steve. we're here at the lng conference in perth in western australia. we are basically tracking a whole variety of comments out of people here at the conference. a number of lng and also major oil producers. talking about a variety of things, including that price, the weakening oil price resulting in weakening lng prices. chevron, which has some significant businesses here in australia, says it's about 40% more expensive than when they do business in the united states and mexico. you were talking about that opec meeting coming up at the weekend. i spoke to john watson, the chairman and ceo over at chevron about that, asked whether or not he thought that might help put a floor under prices or inflate prices. also, moody's cut

there is an opec meeting on june 2. if we see prices spiral out of control, perhaps they could use that as a stepping ground to undo much of this bad will. angie: a senior oil and gas analyst says the oil markets will be in a much more stable position by the next opec meeting. we --y disappointing that iran clearly were not going to cut this deal coming into this. int comes next, the meeting june, they will try again to see if they can agree to cap production. what will happen in the oil markets, we are moving toward a rebound market. demand is still relatively strong. as we get towards the end of the year, we will be in a much more balanced market. angie: that was the word from asia on oil. not the best day to be long on oil and the plunge on energy prices having a bigger impact on asset classes. what are the risks if energy prices fall further? david: a lot of things. think of what we have seen in the equity markets from late january, mid february, up until where we are at the moment. a barometer of risk aversion. i h

i think the problem is that we now have an opec that is really quite torn asupder. you have two enemies, i think abundantly clear that the saudis and iranians look across the persian gulf at one another and rather than start a shooting war, the saudis started a war of oil production. i think the most important statement was not that which came from the meeting, but that which came from the deputy crown prince, the young man who's probably really the oil minister for all intests and purposes who said last week the saudis could go to 11.5 million crude barrels today. we could go to 20 million in two years. he told you what they intend to do. they intend to continue to produce oil at a very fast pace. >> bob said the oil drop that didn't happen. what do you make of the way oil traded after this news out of doha? >> i didn't think the news was that shocking. i was somewhat surprised you were able to take crude oil down $2.50 as quickly as you did. i thought the lack of the agreement was worth a buck, maybe a buck and a quarter on the down side. you had a lot of people w

opec's governor was the one who floated that idea. feeding supplyt at january -- freezing supply january levels has been going on for several weeks. barrel -- at 3675 a $36.75 a barrel. west texas crude has been rebounding off lows, but started to stall a little bit as discussions stalled about whether they can come up with any agreement on freezing output. there is going to be a report , so we seednesday what u.s. stockpiles look like. stockpiles lows 285 million barrels, and again would mean stockpiles are at the highest in 80 years. agreemente if any makes any difference in terms of sentiment. saudi arabia has said it could only cap production if other major oil producers were included. that includes iran. among the countries attending the talks, russia, opec producers, and the only one not attending will be libya. also helping the oil prices the dollars decline. priceds made commodities in u.s. dollars much more attractive. let's take a quick look at the gold situation. gold has been gaining and held its gains after rising the mos

i don't think the rest of opec wants to take cuts to handle that. we will see what happens. supply.u talk about i've heard the narrative shift back-and-forth between whether it is a demand problem or a supply problem. overly produced and demand is ok. has there been something you've seen, whether out of china or perhaps out of the u.s. that is convincing you that demand is picking up? >> we look for a lot of statistics on the u.s. economy. miles driven have been increasing. this been a lot of talk about whether there would be a demand response and oil prices. i think now you are starting to see that miles pick up and worldwide demand is decent. now, demand is ok but supply is still on the high side and inventories are very high. that makes it tricky. david: let's look at that release tomorrow. bloomberg forecasting an increase of 2.5 million barrels. problematic here. >> we are at very high inventory levels. rangesat the top of the in terms of inventory. if you want oil prices to go up, that means it is hard for them to act well when inventory numbers are at such high levels

could an opec freeze be in the works? we take a look at that, next on "bloomberg ." ♪ jon: good day to the city of london. tom keene joins us straight off bloomberg radio. i'm new european headquarters -- our new european headquarters will appear out of the sky line. that is the focus this morning. the banks leading the gains. jpmorgan with a beat, profit down 7% in the first quarter, but it upside surprise. will that be the theme for the first quarter earnings? bank of america up, too. citigroup up 2%. says thenald trump republican presidential nomination is being stolen from an. -- from him. trump calls the system phony."ely rigged and this is after ted cruz outmaneuvered him and delegate contests in colorado, north dakota and ohio. it opened of statement from paul ryan saying he will not be a candidate for the 26 and presidential nomination -- the 2016 presidential nomination. nearly two in three americans back the nomination of merrick gopand -- the poll shows the fines may not ultimately hurt the party because

she also tracked down the secretary-general of opec who answered questions about opec confidential demise. that --r many times functioning as long as there is oil in iran. asks questions if opec's recent moves is making the group more relevant to the oil market. validit is a very question, but oil is creeping higher and that is something many of the producers will be happy about. they would want some sort of action on production. something.how you the saudi might be smiling. saudi's stocks are enable market, yes, that's a five-year low. on january 20, that was when crude hit its 13 year low. the saudi bench markers risen by 20%, which as you know, betty, is the term for a bull market. it enjoys the likes of dubai, in reachingnd qatar that achievement. there is some good news out there. what is driving that? they are so dependent on the price of oil. just the rising price of oil, which is up 55% since january 20, it is the hope that the deputy crown prince will diversify the economy by raising nonenergy revenue. the plan is to do that by 100 billion by 2020. they want to create this monste

all think all white back -- opec members should participate. toan will continue increase its production. anna: you mentioned the june date. is that what happens next? the russians are saying that the door is not closed on a freeze agreement. >> that is right. ari minister said the channels of communication remain open. unless something major happens, the next big get together for oil ministers will be at the next opec meeting on june the second in vienna. i ran will continue to try to claw back its lost market share. it is aiming for 4 million barrels a day. the other producers will continue to produce at near record levels. the consequences will continue. startedce the oil slump in 2014, they have put away significant reserves. the saudi's can get revenue from other areas such as an ipo. for others, it is more painful. as the prices decline further in trading after the meeting, there will be plenty more pain to come for these oil producers. globale're joined by the head of fx strategy. doha.s your thoughts post a lot of expectations were built

there is talk about opec talks breaking down. they are determined to ramp up production for pre-sanction swamps -- slumps. >> iran aims to pump 4 million barrels a day. before the imposition of harsh economic sanctions over the nuclear program, they were pumping more. tehran is coming into a stream that was unavailable for years. it is estimated that iran is sitting on reserves of 157 million barrels. in terms of production, iran is lagging behind competitors. the u.s. is a world leader, followed by russia and saudi arabia. iran only made position seven in the top producers. but it is set to capture and recover former market share, which will bolster its power in opec. until then, they are not going to talk about throttling production. >> that is your business update. and the more news. anchor: it has been nearly a year since the islamic state to control of an agency area -- anc ient site in syria. now a group of archaeologist want to make sure that the city's ruins rise again with the help of 3-d technology. >> 12 tons of egypti

alix: i took a look at when we saw opec and non-opec members get together. now on both of those occasions, the production cut didn't really mean anything. oil prices kept rallying, despite the fact that this production cut didn't mean anything. does it matter not, does the fact that they are talking about it -- guest: the fact they are talking means they are not going to engage in a price war, means they are not going to engage in a share war. it removes the upside volume risk and protects them on the downside. press the case that pfizer needs to go to the low 20's or high teens. you just have to have a different risk reward structure. how long do they need to keep this up for? they are almost there. all they really did was make sure people understood there is no more price war and wait for the market. >> what would constitute a surprise to you in one direction or the other? what is one scenario that can move the market? it shows there is no unity. less than 5%. is they hug,side they looked that little bit closer together. export volumes are going down. it t

t that send a si the opec governor will appear. it is possible that changes if mood becomesf the more positive over the weekend, but i think all through this has beeniran questioned about how will they engage. they have their own agenda which is to bring back to ramp up exports. betty: speaking about not opec the table will be some of the biggest producers. we are talking about china, the u.s., and others. how significant, if there is a production freeze agreed upon, they are not there at the table to agree to that. will: you are right. if we talk about the u.s. which is the biggest producer, not at the table, i wonder if the producers will be wary of too much success? we will see some of that production coming back into the u.s. a lot of this production that is so under stressed, that may become viable again. mark: well, good to see you. look for to seeing you in doha. will kennedy. that is ahead of the company positive shareholders meeting. that is next. ♪ ♪ you are watching "bloomberg markets." i mark barton in london. betty

the talks on sunday broke up after saudi arabia insisted all opec members and iran agree to the freeze. is returning to international markets after sanctions were lifted in january. they have been explicit that they will not freeze production. that is the first reason. we will have to see if the next toting will allow producers agree to anything, but it is giving the market a sense of optimism. the production fell to lowest level last week since october 2014, falling for the 12th time in the last 13 leaks, so we are seeing some higher cost producers cut back on production. there has been a couple of outages locally, kuwait, nigeria, so were getting closer to supply and demand getting back into balance, helping the with a bullish sense of where prices may go in the second half of the year. rishaad: thank you a lot for that. we will have a detailed look at that story later in the show. tweet us your thoughts at @rishaadtv, and include #trendingbusiness. mitsubishi motors in the spotlight after admitting it manipulated fuel and on many cars in japan, also saying its methods do not comply

can russian opec take credit for the oil rally this week? the iranian oil minister will not join the other ministers in doha. we are back in a couple minutes. ♪ francine: welcome back. we had breaking news the last couple minutes that the iranian oil minister won't intend the doha freeze talks on sunday, but who will attend in his place is the iranian back governor. -- opec governor. we know that iran has said in the past they want to pump as much as they can to get back to the production before sanctions, but maybe there's an agreement amongst the others. posed for a second weekly advance. an output freeseas top of the agenda. almosts a global glut vanishing later this year. patrick spencer is still with us. patrick, you said, a lot of the oil companies' share prices increased significantly, but from a low base. there must be better valued stocks out there. patrick: sure. in terms of the u.s. market or generally? francine: give me your three best shots at making money this year. patrick: it has got to be in equities. i've been in equities

it seems to be about the so-called freeze with opec production. ntries and not ok countries are meeting this month whether to freeze at current levels. a few days ago until today, the perception the market was the freeze was possible, even iran was not joining. with the deputy has made is saudi arabia once every country to join the freeze, not only saudi and other opec members, but russia, iran need to participate. if they don't, then saudi will not freeze. that is in the price of oil 4% down today. also, is it a bit of a bearish call that we're seeing such a phenomenal sovereign wealth fund being built to diversify the biggest exporter of oil? is this saudi arabia telling the rest of the world -- >> if you read our stories this morning and this afternoon on the bloomberg terminal, if you read between the lines of the whole interview, the message is saudi arabia is not expected high oil prices anytime soon. this preparing for a period of which the war will just rolled will not consume as much oil. -- -- will not consume as much oil in the world. i