-- oil fields. as one of the things we bring. as well as a deep sense of responsibility about the privilege of working with the national resources of abu dhabi. in many ways, the crown jewels of abu dhabi. should we take this as a sign? confidence inhave the price. we really retooled bp, getting ourselves down. a year ago, we were saying $50. now we can do to 55. i think we are going to remain very disciplined about the capital we spend, the projects we select. we've worked through some a difficulties in the u.s. that i think the company is now well positioned for growth toward the end of the decade. tracy: we recently saw a historic deal with opec for the production cut. i saw a potentially even more historic deal by non-opec producers to join in with some of those production cuts. how do you feel that opec in the future of oil at the moment? >> i think it is significant what happened on november 30. you've got non-opec countries seriously talking about reducing output. some people have said that o

maybe they found out there isn't any oil. maybe pa was right. ♪ >> neil, they started drilling. >> is that right? >> come on, i want to go see. >> all right, let's go take a look. ♪ neil: out in bronson's north 40, they were putting up a giant 10-story derrick they called a rig. ♪ neil: the geologist showed us around, and it was like watching a little town take shape. welders and roustabouts working in the stinging cold, putting up the drilling platform, digging the mud pit, stringing power lines, working with icy feet and numb fingers. getting things ready to sink the drilling bit into the frozen earth. ♪ >> we can get out of the wind in here. >> i guess once you start to drill, you're sure of finding oil down there. >> we are not sure of anything. in this business, it is always maybe. the only way to find out is to drill. only about one out of nine of those wildcats comes in. >> how much does it cost to drill a well like that? >> it depends. the first hole, drilling in this weather, as deep as we will have to go, pr

we have oil prices trending higher, a negative for a net oil importer like turkey, and then we have the global environment with the u.s. fed hiking rates more aggressively than anticipated. is a negative notches for turkey, but every other emerging economies that have these large dual deficits. >> you mentioned the pressure on functionncy, the wtrs lays it out nicely. far thisira down 9% so year, and again, additional weakness off the back of the reaction overnight. thewill that complicate decision the central bank has to make today? night, ito bed last was a tough call for myself. i think there was a lot of justification to hold steady because of the weak economic outlook we spoke of. heading into last night, i hikeht a 25 point basis was on the cards to protect their turkish lira. waking up to the news of the russian ambassador, i think that is a done deal. they need to be concerned about the weakness in the turkish lira because of the external debt pile in turkey. >> oil in 2017, j.p. morgan expecting $58 a barrel next year. we will discuss that with the bank's head of regional oil a

. -- which holds oil. an attempt to protect the areas in a durable way that will continue to have effect after he leaves office and donald trump takes office. what we see is a move by the obama administration to create a durable environmental protection and it will have an interesting impact on supply for next year, when we might expect the supplies increase under president trump. in iran, we need to think about whether they can get foreign investment into the country to increase the oil production next year. they have already basically achieved pre-sanction output level, that is the low hanging fruit, now they have an exemption. but we think they need for investment to do so. we have not seen anything solid yet and we need to think how much they can add in the next year. angie: all really good questions. let's dig deeper, where do we see oil going in the coming year? our next guest expects it will be $62 a barrel and agrees that they will come under pressure. joining us as scott darling, the head of regio

>> anyone of these will be benefiting from high dollar oil. there's oil prices. iran a winner, and they are not only cutting, but they are benefiting from much higher prices. everybody outside opec, think about china, a big winner. there are independent are some of the biggest winners producers of the shale producers in the united states are some of the biggest winners here. >> when you look more closely at it, it is a 14 player game. the prisoner's dilemma. they have to adhere to it. and there are some things that would give you concern if you are a skeptic. looking at, that should at it, there are still the countries that are carved out. opec itself saying they will cut 2.5 million barrels a day, but there is not a 600,000 for non-opec. most of that russia. russia has not indicated what benchmark they will adhere to. it is unclear if opec and non-opec will be able to follow through on the cuts. >> the fed rate hike trade is on, 178,000 jobs created but get this -- the unemployment rate falls to 4.6%, that is the lowest since august of 2007. tom: it certainly is

there senior people from the oil industry. is it quite that simple that we therefore are optimistic about the chances for oil companies? geoffrey: in the context of trump's infrastructure sides, we think he can get something through relatively quickly but it will only benefit some individual names. that is where we are a bit more skeptical about it. select names think that will benefit the energy infrastructure side. let us wait to see what he comes up with and then we will reassess. shell and bp.got undoubtedly, the energy complex, it has sort of given, if you think about the foundation, a lot of boost to our equity markets. does that overall kerry three for you into 2017, the same through intoarry 2017, the same momentum? geoffrey: notwithstanding the fed's recent decision, they will try to hold down normal deals and let inflation run ahead of it, and this is a very good though financial cost. expand ascompanies to mr. dudley just mentioned. can we actually sustain those levels? the risk is everyone expands and then the pric

cycle oil going along with short cycle oil,. and it is very important that you think about this everybody tends to talk, just talk about shale and shale is becoming the new opec. not the case. shale short cycle and long cycle you're going to need both for you're going to need both for, sustainable prices going forward. mr. barkindo: thank you very much. i can't agree more with john. oil outlook shows clearly the continued growth in demand for oil up to the year 2040. the estimates we have, projects about additional growth demand of about 17 million barrel a day. now, whether we're in conventional or unconventional part of the industry, the global oil industry is one industry. for us, i must share with you, that we observed with great admiration the ingenuity that innovationsological , the managerial competence, in cutting costs and still maintain in high productivity that has been recorded, particularly in oil in the the united states. this is really important not only for the united states. but for the global oil industry. this

heating oil, fuel oil, is also going to show up. the increases we are talking about, the tightening, will show up in disposable income. where that disposable income ends up. the prices will be higher. fromad: michael cohen barclays capital. an opportunity for the international oil and gas industry. analyst.n energy think you for joining us. where do we go? i want to pick up on that last answer. prices where they are and the supply positioned where it is, that increases the incentives for cheating. >> an interesting point. i think that when the oil price goes up, and we have seen that already, and we forecast increases through 2017, we think about who will react fast us. actthe markets that can fast us in first will be independent. you have to see what is , they areand see already going back. through 2017,is as oil price is around $57. that is a massive incentive for them to get back to work. even more importantly, if oil prices stay above 65 -- $65 throughout 2017, they will have to work on another basis in the u.s.. willis where th

chad would let oil companies like chevron and exxon come in and drill oil. the country would get a big cut of the oil revenue. you mix that in with a big financial aid package for the country as well and you ultimately get a big, happy deal, right? think about the components of this deal. the previously untapped oil gets drilled. the oil gets piped through the new pipeline to the sea. so it can be shipped out to market, so the oil companies make a killing on that. the government gets a whole bunch of international aid as part of this deal. and, of course, they get lots of new oil revenue. and because of the deal, the people of the country are guaranteed by the terms of this deal that all the new oil money, all these new oil revenues coming into the country, they won't just go into the dictator's pocket, they won't just turn into tanks and weapons, they'll be spent on things like education and hospitals and basic infrastructure to improve people's quality of life. so for the oil companies, for the government, for the people, right? great deal. the world bank

face. >> there spreading malicious, false claims noting his olive oil experts worked for a olive oil seller in california. >> as a result the north american olive oil association said its credibility was damaged [inaudible] >> now the doctor oz show says it progressively plans to defend it segment and pointed to numerous other news organizations that reported on this. they told me that it's been recorded in 60 minutes, the new york times, and time mixing. we will keep you we'll keep you updated on what happens next. i needed to learn more. what is this talk of olive oil fraud? does it exist? so i went to our favorite chef, tony dinapoli. has he just said, i heard he had he had simply good meatball. >> i've always been you get we pay for. advise been an advocate of extra-virgin olive oil. i think there is a heightened awareness that there could be some issues out there. >> what do they mean by -- that it's just not top grade olives? >> it's not coming from the origin of the seller. >> so they could say that they're getting 100% first press bridge and olive oil. but is that nursing is

find oil. as i write, exxonmobil's prospects for finding -- easy to find oil in this market, you know, we are pretty dim until this deal was struck between tillerson and putin, basically. this deal would have created a $5$500 billion joint effort. the biggest oil deal ever. five hundred billion dollars. we're talking have a trillion dollars, a staggering amamount f money. it was a deal that was perhaps going to ensure the future of a stream of oil for exxon for decades to come, even as the world needs to get off off oil. for putin, this is critical revenue. critical outside investment. particularly now in this era of low oil prices, that seriously hurts putin. this was considered to be a game changer. rachel maddow said this was a deal that was considered it might change the historical trajectory of russia. crimea an invaded withview -- and interfered others. sanctions put in place killed this deal. as i write in the piece, the question -- the intelligence community now says that russia interfe

output by 1.2 cut million barrels of oil a day to 32.5 million barrels a day, oil resuming his crime, $50 a barrel, brent at over 8%. the details need to be sorted out. and if the cut is enough staying -- to sustain a balanced market for the first half of 2017. you said 30% chance of a deal yesterday, now we get it? did the saudis cave? 30 percent chance of a deal with the market was priced at 30% chance of the deal. our view was we expected a deal and one of the key reasons, the economics of the deal were compelling. aside from the fact that the risks were asymmetric to begin with, the other is they had a point rebalanced market in line of sight. what they had to do was cut production and pull forward an already balanced market. why do they want to do that? the reason is inventory normalization, not price. why do they want that? they want backwardation. backwardation, backwardation. >> i love it. >> our expectations were down into the $43 range, and they would spend the first half of next year around $45 a barrel. by speeding up the process, they take the $43 and $45 and turn it into

matt: oil surges. saudi arabia says it will deliver even deeper production cuts as the russian energy minister tells bloomberg his country's cuts will kick in next month. how quickly u.s. shale will respond is the new question. italy's paolo gentiloni is handed a mandate and a long to do list, as the clock ticks for monte paschi. and chasing the dots. fed anticipation sends the u.s. 10 year yield to 2.5%. what does that mean for other asset classes? guy? guy: looking forward to that conversation. matt, thank you. let's talk about these european markets. -- matt a recent have let has always at how flat this open has been. london is up by a little bit, not by much. it will be interesting to see how bp and shale is trading this morning. we are waiting on the cac and dax. the cac is just opening up in positive territory. but a fairly flat open. the devil is in the details, below the surface. a calm sea this morning, manus cranny. what is going on below it? manus: it is where treasury yields go. we have 10

oil plays into that. if we have a rally in oil prices, you would expect that two feet in two inflation expectations and consumer prices, so it looks like the fed will have to consider that. almost everyone is expecting a rate rise at this time. angie: that is absolutely right. drivingng that was markets this morning here in the asia-pacific region was oil, but let's do a quick check of the state of play in markets. you can see those gains have been given back, and now in the .ed japan still a quarter of a percent higher. what's happening over there? tracy: we had a holiday yesterday, so some markets were closed. those open were saudi arabia, come all up 1% off of that big rally in oil. up can see the tadawul , and kuwaits qatar just under 1%, so are a lot of enthusiasm in the region. checking in on the first word headlines from around the world, here is sophie kamaruddin. bill english has become the new prime minister of new zealand. he was elected unopposed after tubing rivals withdrew from the race and

had to make sales away from oil to raise all that money to buy those oils. i'd wait for the oil stocks to cool off, people. i've seen people chase them like they did when iraq invaded kuwait. ends in three days. you'll get hurt. second, a pro-growth agenda is great for the stocks of companies that need a strong economy to do well. that's the basic industrials. that's the transports. that's the banks, which will continue to rally if mnuchin gets his way. i continue to like the bank stocks. i think they have more upside. however, a pro-growth agenda doesn't mean much at all for companies that already have a lot of growth, namely the tech stocor their growth accelerate despite what mnuchin or ross or trump will do, the stocks known as the defensives, which you buy when growth is slowing. so what doesn't do well? health care, drugs, foods, you name it. their stocks aren't going to rally on statements about revitalizing american manufacturing. i think there will be bargains in the group, in all these groups, because they're getting crushed too hard. as is almost

the oil cartel reaching a deal to cut production for the first time in eight years, sending oil prices surging. and gas prices rising. john, you say it's time for us to start producing more energy here and stop depending on them there. and i'm going to you first in part because you're from texas. >> yeah, look what happens in west texas. you talk about not needing a minimum wage, you can't hire anybody for $15 an hour out in the middle of texas right now because of the shale oil bloom because jobs are so scarce out there. that's what energy creates. look at the monterrey shale in california, that would wipe out california's debt by itself. we need a president-elect trump to go out and figure out with the epa what is safe. if fracking is safe, they need to go in there and frac that oil and take california out of debt. if it's not safe, you shouldn't be doing it anyway and this cartel in opec, every country is a liar. look at the production that they have compared to the quotas historically, they never adhere to these quotas. they're all petrol rates companies. they have to have that oil

there is a lot of oil in storage. with this high price and the flattening curve must some of that product is not going to quickly come into the market. secondly is christmas coming early for shell producers in north america? yousef: how sustainable is this? you are going to give shale in the u.s. a significant floor. they are going to come back online and put more oil into this market. >> it is a six-month deal. they always reduce production because demand is lower. production will have to come back. the question is, she'll starts coming back, will opec continue to stick with these cots? -- these cuts? yousef: a lot of the analysts we have been speaking to have told us again and again that the deal is done. the compliance, the execution, they are supposed to oversee the agreement they stood by. are you optimistic given the track record that we have had? a doesn't speak to significant degree of compliance. are they going to be able to turn things around? >> for opec that will be good if it happens. listen to the wise o

the big winners are oil producers, the rising oil prices all over the region. singapore,s in seeing uplift. energy giants in china are benefiting from this. airlines and recliners are having rougher go of things. there are questions in the oil market about how this will play out. morgan stanley said hiler -- higher oil prices mean you will see investment in u.s. drilling from shale and other players. that could add to the second half of next year, leading to price instability this time next year. we will see how everything shapes itself out over the next year or so. in the game is back of defending the price of oil, and russia among other non-opec reducers followed suit. kuwait chairs the monetary committee and says it will begin in january. i spoke to the ceo of color energy and the founding partner of morton frisk after this was done. >> i don't think it is going to be very sustainable. two things are going to happen. there is a lot of oil out in storage, both floating storage in logistics as well as official storage. with these high prices and the forward cu

they're an oil company. their business is oil, so, you know, they don't want to really hear about hydrogen for cars or, you know, electric cars, what have you. and they also, you made an excellent point which is one of my frustrations as an energy reporter which is how people mix the energy side of production with transportation. right. but i couldn't help think there's pieces in the book where lee raymond talks into the ear of alan greenspan, and alan greenspan is on the hill and basically saying lee raymond's speech. >> guest: right. >> host: if on solyndra, which is the solar company that has grabbed headlines and failed finish. >> guest: right. >> host: -- if big oil is behind that given their animosity towards kind of renewables and the subsidies renewables require, do you see any evidence of that? >> guest: is it the government making this bad loan -- >> host: not making the bad loan, but fan the flames of criticism when the loan went bad. >> guest: yeah. i think the american petroleum institute, they'

we know that higher oil prices aren't good for asia, a lot of asian countries have huge oil bills. oil prices have been a commanderfor bills. oil prices have been a commander for people over the last few years. obviously when we look at it from an asset management perspective i think the signalling factor is what's important. people have started to take extremely low oil prices as a sign of poor global growth. the reflection you see here in the thought process is somewhat higher oil prices, but not at the extremes higher oil prices, but not at the extre m es we higher oil prices, but not at the extremes we saw approaching $150 or 200 us dollars, is a positive in the sense that it indicates there is global growth. we have to reflect on oil prices for two different reasons. one, it costs asian economies but the other, a somewhat marginal increase in oil prices normally means growth is improving as well. sheila patelfrom global sacks asset management. it's that time of year when we find out what's hot and what's not when it comes to internet searches —— goldman sachs. so what were

one of our top stories around the oil price. oil prices have rallied after opec agreed to it production cuts. output by 1.2ail million barrels a day. jumping to its highest in a year it and a half. yousef: oil prices may break above $60 a barrel. 30% probability of the deal happening? annmarie hordern is in vienna. talk us through the comics of this deal and how it will be implement it. -- the mechanics of this deal and how it will be in the bunch implemented. annmarie: this came down to the saudi's kind of getting into iran. they will be able to increase pumping at 90,000 barrels per day, so they are going close to pre-sanction levels, just more than 3.7 million barrels a day. the saudi's taking a huge cut there. we spoke to the saudi oil minister as he left the secretariat yesterday. take a listen. >> 1.2 from opec and 600,000 from non-opec. we have a total of 1.8. hopefully, we will have a very high level of compliance. that gives a positive outlook for the market. oil industry has seen a high level of demand over the past ye

tom: with a big oil, i'm sure it is. oil, later big today, really looking forward to this. he is so good on domestic oil and the international architecture of hydrocarbons. this is bloomberg. ♪ francine: this is "bloomberg surveillance." i'm francine lacqua in london. tom keene is in new york. italy, the next italian prime minister will need to explain to the next german chancellor, reasonably angela merkel, that her choice will not be between a political union or no political union, but between a political union or italy's withdrawal from the euro. george magnus and jane foley are here. george, i don't know what to do with this. half the people we speak to save the euro's demise will happen in some shape or form. others say, we've been through this before, it will be fine. george: yeah. i wish it were kind of a black and white situation. clearly, there is -- the problem that europe faces now, not the problem, but a very substantial problem that europe has right now is that two of its biggest members, italy and france -- well france, we know will have elections early next

the decision yesterday concerning an oil pipeline. the obama administration has put on hold a project in north dakota. that is known as the dakota protest -- dakota axis pipeline. we will learn more about the construction and the decision by the obama administration. if you have been following it, we want to get your input. if you're a north dakota resident and you want to give your thoughts on this decision, call us. if you want to post on twitter, you can do so. you can put a thought on facebook. the usa today has a story that takes a look at this decision by the administration concerning this dakota access pipeline. the headline controversial type on put on hold. the company did not respond to a comment but adding to the story that the eye blind was set to cross the river from a half-mile from standing rock to the reservation border. tribal members have for months protested. that is some of the writeups this morning from the decision that was made by the obama administration that was released yesterday. wanted to get your thoughts

alix: ill to oil. the saudi's. the russians. , saudi arabia is ready to cut production by more than expected. do whatever it takes moment for opec. also non-opec members agreed to cut it back by 558,000 barrels a day. the door is open for more non-opec to come on board. anchor: what happened over the weekend in turkey. the terror attacks, coordinated bombings in his sandal killed 38 and wounded 160. to suicide bombers carried out the attacks. 25 people died in a bombing in a egypt. alix: finally, the banking story. the bank is doubling its efforts to execute a debt for equity swap. thesing an extension for year-end deadlines, getting bondholders to agree to a swap would allow a commitment for one billion euros. people familiar with the matter have been telling bloomberg. go to your mobile. standing by with us now. what are you drilling into? reporter: nice pond. .how oilprices -- pun prices . are affected. brent above $56 a barrel. non-opec countries agreed to cut. saudi saying it is ready to cut out more than prev

in oil and gas drilling. montana, wyoming, colorado, new mexico, utah, ththe bo is hahaeningg all over t country. the is oilnd gas orations in 3states rht now, but the rocky mountain states are really seeing the vast majority of the expansion. and it's overflowing into communities where people are seeing this right in their backyards. - i'll show you where they wanted to put this location, one of the first places that they wanted to put it. - they just surprise you and say, "we have to put a well out there," and you don't have any say in it. - a split estate situation is when somebody who owns the surface of their land does not own the resources that are underneath their land, for ample, oil and g or othth minerers. a prive e pers cououldwn a house with land, anthe feral govement or anoer prite individl might own the resources under it. the person who owns the oil and gas has rights to access that oil and gas,

is very heavily oil-related. pmi's havet that the continued to show expansion, though it's been significantly weaker than 2015, we still continue to see growth in the manufacturing sector. think that reflects stronger output growth. the looking into 2017 with opec agreement to cut output, i think that is going to way on pmi readings in some aspects, particularly related to the manufacturing sector. we're hoping is that we start to see an acceleration in growth, in construction, in investments,e, ecial in the u.a.e. that should help offset any terms of oil-related manufacturing next year. >> here's a slightly longer-term you.ion for would you expect a big rally in oil prices if it continues to of the attempts at diversification in terms of the economy that have been made? >> it's a good question. i think a lot of the changes beenhave already implemented, i don't think those going to be reversed. but even if we see oil prices rally up to, you know, 65, 70, 85 dollars a barrel, i don't think arernments in the region

physical oil, 94, 95 million. so we have a vested interest in knowing your business, and working with you, in getting you on board this global platform that we are now building between producers and consumers. it's been producers and operators and companies. i think the platform would be incomplete without your work. >> i take another perspective to complement what the secretary-general is saying. perhaps our strategy and business focus is to find develop and produce oil and gas to help meet the world's future demand for energy. it is not to hedge or trade with other companies to help them hedge themselves. we have our hands full sending our own production which is our activity level goes up to ensure that we have the cash flow on a year-to-year basis is something we will give serious consideration to predators want to use this opportunity again to thank the secretary-general for being here in the united states. this is historic. the opec agreement was historic but his presence here is historic and it helps us in

maybe the crude oil price oil futures will be higher more than $500 per. maybe to the 50s. but 60s maybe a little bit because the higher oil prices induce united states share oil production. maybe will increase a little bit more, but it will take some time and crude oil price and crude oil price. five person, ten person. since 2014. a lot decreased. oopec was dysfunctioned. this timee opec to control the oil price. some members of the opec want to make more production cut to boost oil price. such occasion maybe ooppepec wi try to make more production cut more and more. >> look at this graph crude prices. dropping to the $50 level following opec's announcement. this boosted senment in tokyo and sent the nikkei average soaring for the year. >> many investors were pleasantly surprised that the opec deal materialized and the weaker yen helped investors regain their appetite for risk. the closing levels for this thursday, december 1st. the nikkei surged more than 1%. 18,513. broader topix 1,483. that followed a strong gain for november. looking at currencies the dollar rallied a

the oil companies wanted to go further north as the ice cap melts, to drill for more oil. and this is a serious move against them, it's a win for communities on the coasts who would have been devastated if there'd been an oil spill. and a win for the climate because we cannot afford to burn that oil. oil keeps the world moving, and the industry says we need more of it. but its co2 emissions heat the climate. scientists say we have already found three times more fossil fuels than we can burn without risking the planet. the arctic is already warming fast. scientists are very alarmed. president obama's drilling ban is good news for environmental protection there. if it lasts. president—elect trump says he's not worried about climate change. he wants to protectjobs in the coal industry and he wants to build new oil pipelines and he wants to pull the united states out of the world deal on global warming. the decision by president obama to attempt to lock up the arctic is part of his attempt to ensure his legacy on climate change. roger harrabin, bbc news. joining me now from

the big winners are oil producers. the rising oil prices of all kinds of both across the region. singapore,rs in energy and china are also benefiting from this. airlines and refiners are having a little bit of a rougher go of things today. are someng run, there questions in the oil market about how this will play out. morgan stanley put out a note saying tt higher oil prices now mean that you will see more investment in drilling from u.s. shale from other players. acted as applied to the second half of next year leading to some price instability around this time next year. we will have to see how everything shakes out over the next year or so. in the game of defending the price of oil and russia among all other opec producers followed suit. they now turn to the implementation of the deal. begin inthat it will january. i spoke to robin mills, he is the ceo of energy. this is shortly after the deal is done. >> i do not think it will be very sustainable. there are two things that will happen. first of all there is a lot of the oil out in stores. the floating storage and official sto

then he seized the oil company that made that guy so rich. seized yukos oil. they took yukos and said you're owned by a criminal, we're taking you. they took it and pretend sold it to an unknown oil company. who is this company that's buying it? days later the kremlin-owned oil government rosneft got it for 100 rubles, which is approximately $29 at the time. that's how much they got the oil company for. and the guy who heads up rosneft, the guy who ran that whole scheme to take yukos for 29 bucks and absorb it into his own company, and make rosneft with its kremlin ownership the biggest company on earth, that guy is putin's best friend. they worked together in the intelligence services back in the soviet day. they call him putin's shadow because in way too many pictures there's putin, then he's the only guy right there next to him. in this picture, he's the guy standing to putin's left in this same picture, if you look at the other side of it, the guy to putin's right who is shaking his hand, that's the ceo of exxonmobil who is donald trump's nominee to be sec

what is going on in the oil patch? game inhere is only one town, and it is demolishing every other safe haven. gold retreating, bonds falling, all on the account of renewed risk appetite after the meeting between opec and non-opec members. saudi arabia's surprising the markets, saying it is willing to cut more than pledged. russia and other non-cartel members coming on board as well. stocks, oil energy stocks leading the gains. energy-heavy markets like a straight up, the nikkei 225 getting that double boost, oil majors leading gains, but the impact of a weaker yen, pushing that 116 handle. online, some strength straightheast asia, times index up .3%, and energy heavy market. a quick note about south korea, that in treatment vote go through on friday, some uncertainty the next couple of months as the constitutional court has 100 80 days to decide whether they will support the proposal. isote from s&p saying it unlikely to weigh on the rating when it comes to south korea, political uncertainty will be fleeting. .1% gain

we are going to see some increasing oil prices. however, no one anticipates we back to $100 per barrel. this was not the objective. it is still an important agreement. importantly, it does have broader implications. if you look into some of the details of that and the fact they decided to do that in a non-opec agreement, it will better provide the successful implementation of the agreement. the major at some of opec countries such as russia, saudi arabia, they have put aside differences, and they have decided to come to an agreement, which actually this will build up momentum for further cooperation that may be needed in order to contain the emergence of u.s. shale. this beautiful chart. our clients can pull this up on their bloomberg. hedge funds reducing long zen shorts before the open. long and shorts before the open. does that affect the credit spreads story in the gulf? >> clearly the last agreement of opec is a positive. it is not so much that it will bring additional revenue in or even reduce deficits postponed structural re

why is that shocking for an oil company. yet pretty much status for everybody else. >> jim, that's a great question. i think i would answer that by different companies have different time horizons. some are private equity, some are built to flip, they're looking for an exit point. at cimarex we have a long-time horizon, we're trying to build a company of enduring value, we invest through the commodity cycle so when we make investments at cimarex, we understand that commodity can be up or down, we want to create real value, real measurable value for the long haul. so the ideal owner of cimarex is probably a long-term holder because we're creating long-term value. >> at the same time you do something, you said in the most recent conference call, that you were excited about, "we continue to push the envelope in completion, optimization and innovation." for our viewers who aren't familiar with the technical details, what does that mean for cimarex in terms of its break even if it wants to start drilling right now? >> well, it's

australia's oil stocks, energy, exporters like oil surge. fuji oil in tokyo session, it was up a little bit higher. we saw some strong gains, 7% or 8%, coming off of session highs by 0.7%. and this group, the australian insurance company, not a huge player, but xeric in its biggest deal of 2016 has offered a 14% premium to buy the stocks. that is the biggest gain for the highest, three years. new zealand has a new prime minister today with bill english, elected on opposed as leader of the governing national party. the bloomberg finance minister was endorsed -- we go back to paul allen in sydney. a sudden departure for him. as we move forward, how english -- how different will the bill english renminbi? -- will be? paul: he is the continuity candidate, and he turned out to be the only candidate. john keith, sort of anointed him really. he stepped aside, other challenges dropped out quickly when it became obviously the bill english raise. he held a press conference and says there will be change. that was a reference to the limiting -- looming

, oil industry. we never saw tight oil as a computer. we saw tight oil in necessary innovation in order to plug some parts of this robust growth. just think with me for a moment if we had not tight oil what would have happened? the convention of oil would not have met this rise in demand that we saw. it's impossible. i think that the industry is very proud of the achievement of particularly in the united states and -- now we advocate in this dialogue to meet as an industry in order to compare, to share our experiences and get guidance from each other on how not only of maintaining this but maintaining this stability that we badly need. but also to avoid this type of cycle in future. we all know that our industry is cycle and what we imagine from -- what we have seen and we in opec we're confident of the dialogue that we have embarked upon. we should be able to put our thinking cups up and come up with joint measures both from corporate wall from sovereign government as well as the industry as a whole

now let me zoom in a little bit more on the oil market. the oil demand is set to increase to reach 109.4 million during this period. but regionally there are important differences. the demand is expected to drop 9 million per day. the demand is expected to increase significantly 25 million barrels per day. another important observation is the growth of the demand is expected to decelerate in the long-term and during the first five years the average demand growth is 1.1 million barrels per day every year. towards the end it's only 0.3 per year. this is on the back of the lower economic growth but also the tightening of the energy efficiency. in terms of sectors, most of the growth would continue to come from the transportation sector and one third of the additional demand would come from the transportation sector but we also see a strong growth in the petrochemicals. i also want to zoom in a little bit more on the role of transportation every day we hear news and expectations about of e electric vehicles for examples of the outlook provides

stocking up on commodities, crude, oil, coal. that is infrastructure spending we have seen here, putting it into railways and bridges to underpin economic growth here. it is positive for export numbers and 0.1%, surprising many. you mentioned the weaker you want. what is the -- yuan. what is the policy response? tom: these follow on the positive pmi manufacturing data we got for the month of november as well. what it feeds into is this support level now that havedency -- policymakers two pull out of the system and drain liquidity and economy without undermining growth too much. we are still on track, to hit that target of 6.5%. it would be a great surprise if they missed that. most analysts expect the pbs you to step up tightening. he is -- it is already doing , with the drawing some of that liquidity, so it gives them extra confidence to do that. there will be pressure from lobbyists with the export center getting cheaper yuan, the benefit of that already. the focus is very much on capital control, trying to stop the outflows. p

oil potential he has turned a corner. we have seen the historic deal with opec and non-opec producers. should we take this particular deal as a sign that we might get to the doctor and investment? -- the big upturn in investment? robin: at some point capital spending has to turn around. there has to be investment in new production. oil prices have recovered somewhat on the back of the opec deal. i don't think the floodgates are going to open. i think this will be cautious and careful. about the outlook more. bp saying that he can cover its own spending and dividends without having to borrow with oil at 55 euros -- $55 per barrel per year. that is down from the previous assessment, $60 per barrel. how is bp achieving that spending? robin: like the other major oil committees, just a focus on cost. cutting all of the nonessentials, but also deflation. the cost of drilling rigs has come down dramatically. i think this will be a long multi-your process squeezing out cost. it does take a long time to reduce structural cost. it

what are the risks as you try to move away from your dependence on oil? this does not happen overnight. to execute.rs sheila: it takes time. what we have seen over and over is fits and starts often come from changes in policy and changes in reform. the more you look at this region, and around the world, when investors feel they know what they're opportunity set is and how it will be judged, when they feel the market is open and fair, they come. arequestion will be, what the opportunities? as tur tourism develops, that is one. yousef: you have voice some tide ofabout the rising anti-globalization. we have seen it with donald trump. you are caught off guard by that. politics in mainland europe, as well, continuing in that direction. how do we quantify political risk as we draw 2016 to a close? sheila: political risk is one of the hardest to judge. we have to look at the probability set of things that might happen versus the reality. we found good trading opportunities even around brexit. despite the fact that most prognosticators including ourselves were wr

today on "medical discoveries," we're exposing america's fish oil scam. doctors everywhere are recommending americans take fish oils daily because over 8,000 clinical trials support what have been called miraculous health benefits. so why aren't you seeing the benefits from your store-bought fish oil? coming up, you'll discover the truth about potency, purity, and the missing-link ratio between epa and dha that researchers affiliated with yale university have discovered, which is the key to unlocking all of the health benefits of omega-3 fish oil. you'll also be introduced to a specific formula called omax3 ultra-pure, used by pro athletes and top doctors to achieve amazing results in just one week. join nutrition physician dr. melina jampolis and neurosurgeon dr. joseph maroon as they lead our discussion. it's all right here on "medical discoveries." >> welcome to "medical discoveries." i'm thrilled to be here today with dr. joseph maroon. dr. maroon, welcome. >> thank you very much, dr. jampolis. i'm excited to be here. >> now, as a practicing neurosurg

that oil price as a result of that deal, we are seeing a shrinking oil. this is where investors spoil away the oil, thinking that in the future they will sell it for profit. to discuss between wti -- the discount between wti delivery has narrowed sense opec announced the first production cut in eight years. checking on first word headlines from around the world, here is heidi. heidi: china's official factory gauge height to the highest and 2014. rose infacturing pay november. is 60.9.n gauge below estimates. risks from financial the red-hot housing market. donald trump's nominee for treasury says he will be -- there will be no absolute tax cut for what he calls the upper class. he tells cnbc that higher income tax reductions would be offset by fewer deductions. he criticized dodd-frank and said he will label china a currency manipulator not warranted. he says tax reform is its overriding priority. the fed's latest beige book based on anecdotal information connected between mid-october and the 18th of november shows expansion andomic retail, real estate, a

this is oil. they don't want to hear about hydrogen for cars, electric cars or what have you, excellent point, the energy report, how people miss the electricity side of energy production. i couldn't help think there are places in the book, alan greenspan is on the hill and -- on solyndra, the solar company the grabbed headlines and failed. if big oil is behind that given their animosity towards renewables and the subsidies renewables require. have you seen evidence of that? >> making it alone. >> host: not a bad loan but fanning the flames of criticism in the long run. >> guest: the american petroleum institute in washington is a spun up communication machine seizes every opportunity and political allies do the same thing. i think the underlying question about alternatives in exxon mobil is they are a corporation that can pursue whatever business strategy they want. the question is as a country do we want to create subsidies and incentives for a shift to alternatives that endeded up what solyndra

than oil it self. mark: love that chart. i was going to do it myself. european equities rising a second consecutive day. the stoxx 600 all by one half of 1%. like in the u.s., oil down. down 1.4 percent. today, the highest level since october 24. it is too late to change the rally in european cyclical shares. that is the view of deutsche bank. check the utilities. this is shares of eon, the german utility. up 4.4%. it is surging. rwe surging. germany's top court ruling these utilities are titled -- entitled to compensation for reduction rights they lost because of the country's decision to exit from after the japan nuclear disaster in 2011. judges in the federal constitutional court said that the 2011 loss set out a roadmap for the nation's shift away from nuclear energy failed to tackle compensation to companies committed to nuclear power production. hence the rise. it is a flipside story in monte paschi. attain shane going to whether the italian lender can avoid a going to-- attention whether the ita

you're not going to have $100 oil in 2017. but i do think you're going to have $75 oil. scarlett: there have been a lot of instances where opec is not been able to comply. bethink that they expect to wobbling along the way? where they can't quite commit to let that have promised? what might those look like? >> usa that if they won't stick with it. stick withhey will the deal. i believe it will happen. opec needs money. yes, i think they will stick with the deal. the saudi's have said they will below 10 million a day. so they are cutting out a million barrels a day. they have to be the biggest one. they do it when they perform. when they show the leadership. and they will. the other countries will come along. we'll quickly, some of the skeptics of the deal, including goldman sachs have argued that prices go up and the u.s. supply of oil, quickly. can u.s. production react to any price increase? >> i can tire that i know the oil field. you know that. it will not come on fast. the cause that they have a new oilfield, have other jobs. monday offwomen field. they tell their h