opec plus is opec plus is expected opec plus is expected to opec plus is expected to stick opec plus is expected to stick to its current policy of making a modest increase in production which translates to a little over 400,000 barrels of oil per day. this is in line with the opec plus agreement that was signed between the members in 2021. but the question that will be on the table and under the spotlight is what will opec plus do after september 2022? and the reason for that is that in march 2020 opec plus had slashed its capacity during the peak of covid to balance the markets and since then they have been gradually increasing production month by month. by september 2022 opec plus production collectively would have reached the pre—covid levels, so what will it next? will it increase production or stick to its current production capacity? now, the answer is not straightforward. there is an opec plus to increase production but the problem for opec plus is that a lot of its members are struggling to meet the current production targets, so even if they do decide to increase productio

can opec hit those production targets? >> we think they will increase production by 250,000 barrels per day, so it does to the balance in the third quarter. which would have been the steepest quarterly draw they have had this year. at one million barrels a day, it is not enough, but it does show that opec is willing to increase production now because trying to prevent $150 or $180 as a scenario. but it is gasoline and diesel prices that are the problem. this is where in our view at pareto we find $120 a barrel oil cheap. so that is where we don't see that demand destruction, and that's fair refining capacity really sits in china. it doesn't sit in your. -- europe. manus: ok, so -- welcome to the show, it is your first outing on bloomberg. making calls, we like it. which call, so i would say it will be gas, where does demand destruction kick in? >> as an ex-trader, there is never a -- things can go where they need to go, or they can keep going higher. the gasoline price of five dollars a barrel or six dollars a barrel is un

opec and opec plus meet today with no big policy changes expected let's bring in louise dickson who is looking closely at this louise, what could happen that would surprise the market? >> our view is according to the secondary sources is that opec plus will really hold back on making any tricky policy adjustments today because deciding what to do with supply for september of 2022 onwards, it is really in the volatile market it is a bit too early to discuss the appropriate supply and response so far out. we expect this month to be a rollover and the bigger questions tackled at next month's meeting. >> what price does oil need to trade? brent crude at $116. what price does it need to trade in order to encourage leaders to take some type of action >> well, for opec plus, as a group of exporting countries, of course, the factors of what you mentioned has been one of the longest and most sustained bull cycles of oil in recent history. for the exporting nations, they are not necessarily facing the same constraints as net importers. the net importers, the u.s. to europe to latin america is re

is demanding that opec increase production volumes. some member nations are in favor of raising production quotas, but this requires agreement with russia. after the united states, russia is the world's 2nd largest oil producer, and through the opec plus membership. russia is bound to the decisions of the other opec countries. currently, russia has no interest in increasing production volumes and might not technically be in a position to do so. anyway, because of the barrage of western sanctions. a decision is now on the table to exclude russia from the cartel or not. address goto is direct with a very pon to school of public policy. is russia going to get kicked out of opec thoughts? well, i guess that very much depends on the political signal that opec wants to sense. i mean, there's a couple of countries that have spare capacity still, and that's precisely the ones that are pondering this idea of kicking, rush out. but on the other hand, the question is how to respond to demands from washington, from brussels, from the capitols in e

opec meets today. met mor fis -- metamorphosis, sheryl sandberg steps down from meta after 14 years transforming it into a powerhouse. and breaking news when it comes to corporate this is morning. manus: absolutely. if you like your cocktails and i know you like a little bit of the savoy bar on a friday afternoon. remy cointreau, $40.4 million. that's comfortable. in the u.s., you know, you've got a whole momentum going on, remy to pay 185 in cash dividend and one euro exception dividend. the current operating income beats estimates. condition firming targets. everyone can rest easy in the american bar and the savoy. there'll be plen of remy. i used to love a martini in the savoy. that's how long ago i drank martinis in the savoy, dani. dani: that sounds like a -- manus: how are your equities? dani: i do feel like we've push turned a little bit in market. i say late bit because we're mostly unchanged that the moment when you look at s&p and nasdaq futures. there's the feeling of stay us is. we were up

saudi arabia and up like plus -- opec plus agreed to boost oil production. european leaders approved a sixth round of oil sanctions as fighting in eastern ukraine rages on. we are seeing a little upside in some of the indexes intraday, the dax leading the charge by two fifths of 8%. chemicals and utilities are signing, i -- with laggards in media and auto parts. i want to recap tesla, that is shaking up the market a little bit. the fee through from asia was positive, and u.s. equities were called a little higher as well, now we have gone negative in the last 10 minutes or so on news that tesla is going to pause hiring. and that the ceo, elon musk, is going to do that on a worldwide basis, this is according to reuters. they have seen in email but has been sent to tesla executives, according to that report, tesla was not immediately available for comment, but the reaction is clear. premarket we are down about 3.4%, and the broader space, either attack or the u.s. stock futures going off. now those somebody with the kind of size and scale of tesla having to red

. >>> a big day for energy with the key opec meeting coming on deck this amid reports that president biden will do some face-to-face negotiations >>> plus, mark zuckerberg is losing his number two at meta platforms as sheryl sandberg announces her departure from the social media giant. >>> later on, we highlight one stock bucking those inflation headwinds. it's surging right now in the pre-market it's thursday, june 2nd, 2022. you are watching "worldwide exchange" here on cnbc >>> good morning welcome to the show. i'm dominic chu in for brian sullivan let's kickoff the hour with your money and the market modest moves before the opening bell s&p is up 16 the nasdaq up by 72. some positivity. modest at that this is after stocks pulled back with choppy trading yesterday on the worries of the economy and worrying comments from jpmorgan chase ceo jamie dimon. he said a hurricane is down the road and coming our way. also checking right now on the bond market yields you see yields are ticking higher right now lower actually 2.92% for the 10-year treasury in the oil market, crude is pulling

opec is raising production as a can, but even within opec we have two camps. have the gcc companies, the saudi's, the uae that can increase production, and the rest of the countries like angola, nigeria are struggling. as a block there is no magic switch they can increase production dramatically. saudi is producing at 10.5. they have briefly produced at 11 and a one off at 11.7, but saudi production is at multi-month high. i see it as a nonevent in the last few months. anna: it would not be a non-event geopolitically if opec-plus were no more. and if russia is really -- which is the plus -- if they were thrown out of that alliance. are you anticipating that happens then? keshav: even if opec-plus -- even if russia is thrown out of opec, russia was never able to meet its quota as it stands right now. even if russia is thrown out, what is surprising is that lavrov met with his saudi counterpart, so that bilateral relationship is still strong. despite the pressure from the west. even if we get the headline that opec-plus is disbanded, the relationship between ope

of opec. plus, the interesting thing here also is that when you read the communicated, submerge from the meeting, they say another meeting on the 30th of june. so perhaps we should wait to see what will happen then at the end of this month. because as i was saying earlier, what we've announced now only really refers to july and august, it doesn't take as much further into the course of the of the year. so we have to keep watching as it were dead we well dominic came joining us from berlin. thanks very much. i ah, ukrainian president says russia now occupies a 5th of ukraine. bottom is zalinski says, told at luxembourg parliament, his troops are up against almost the entire russian army with frontline, stretching across more than a 1000 kilometers. russia says it hit several targets in easton ukraine in the past 24 hours. it claims have destroyed dozens of pieces of equipment, including aircraft, anti missile systems, and other artillery. russian forces have taken control of more than 70 percen

it within opec. do we know what is auoin on? , ' ~ within opec. do we know what is uaoinon? , ' . ., going on? it is difficult to sa but going on? it is difficult to say but clearly _ going on? it is difficult to say but clearly we - going on? it is difficult to say but clearly we have . going on? it is difficult to i say but clearly we have got this 0pec+ say but clearly we have got this opec+ meeting which is very much critical in terms of what supply output we might get released to the market. opec+ has had a very much drip feed mentality, releasing just little bits of oil and withholding quite a lot which has really helped to propel prices higher and now there is this report from the wall streetjournal suggesting russia might be removed from the opec+, stripping it back to just opec without the plus which means saudi and other members might be more free to release more supply to the market and that has been putting some downside pressure on oil prices. but it comes off the back of a very, very strong run for oil prices, in fact it was the best monthly price rates for oil

is russia going to get kicked out of opec pops? well, i guess that very much depends on the political signal that opec wants to sense. i mean, there's a couple of countries that have spare capacity still, and that's precisely the ones that are pondering this idea of kicking, rush out. but on the other hand, the question is how to respond to demands from washington, from brussels, from the capital in europe. and what is the political signal that you want to send to you? and i do want to align with russia, or do you actually want to say, look, a cartel, we take market management seriously, and that's precise the question open span. so today is there are enough spare capacity there to offset the drop in russian production that we're, we're already saying well, there is some spare capacity. indeed, the saudis have spare capacity. you 80 have spare capacity. there is a discussions going on with enough for the sake of argument on whether it's some of the sanctions that are still in place could be lifted, possibly increasing supply from t

broad strakes, your take on opec-plus -- strokes, your take on opec-plus. amrita: it has pretty much been active for a while and i think you can see from what was played today, he did manage to increase production by a little more than the monthly quota increases that happened going on for some time. yet cap to the group together including keeping the russians on his side because essentially he bringing forward the deal and slightly more production. the reality is there's not a lot of spare capacity in the market other than saudi and uae so the volume will hit the market and be very minimal. expecting july and august only 560,000 to come to the market even though the headline quotas will be closer to 1.2 9 million barrels per day. anna: could to see you. there is symbolism here that has been welcomed by the u.s., though we hear jeff curry and your skepticism about how much difference it really makes. does this take us toward, speaking of the policy, does it take us toward the biden visit for saudi arabia. that is said to take place later on this month and m

that is one of the points the opec member states make. this is not about oil production, but the refining capacity. you look at jet fuel trading near $300 a barrel. somewhere around $220 a barrel. where are we trading right now given where the cracks are? we are trading at an equivalent of $140 a barrel across the board. the parts where we are short are the medium sour grade crude. things like shale do not produce a lot of jet fuel. they are not going to solve the problem. those are the medium sour crudes that russia produces that we are short. let's not dismiss the lack of refining capacity. the u.s. has shed 1.2 million barrels a day of refining capacity the last few years. anna: does that limit the ability of the biden administration to call for more production on top of what we have heard today? jeff: absolutely. i know the response from saudi arabia, we can do what we can on the production side, but it is a refining capacity problem. it is not just refining capacity. it is everything in the old economy. metals, mining, all of these a

i mean, russia will, will appreciate opec plus, holding the line on its behalf. and i think what we can also see here is a very strong desire to preserve that cooperation between the core opec states and the russia lead group of non opec states that came together originally in 2016. and you mentioned that he read them, how much of the decision can be linked to improvement in relation is between you the u. s. and saudi, and the need to put the pressure that yes, i've been putting on saturday to increase production. that i think this is certainly a good will gesture to, to the united states and the white house press secretary earlier today. you know, when, when out of her way to welcome opec pluses decision and, and the statement that was released specifically referred to, to saudi arabia's role here. so, i mean, in the scheme of us saudi relations, i think this is a positive development, probably signals a greater likelihood that the president biden will go to reopen the coming weeks. but i do think there's also some caution warranted here in assuming that the u.

members and their opec plus partners. oh, produce an extra 650000 barrels a day over the coming months is the 1st time the saudi lead group has deviated from a supply. piracy agreed during the pandemic and comes up to monks of high level diplomacy to repair relations between we and and washington. dominic cane has more from berlin. what's been agreed is effectively to accelerate what had been planned for the month of september and to divide it extra as it were into july and august. so that you have this boost in production which has been agreed which will take place in july and august. the interesting thing is that going into this virtual meeting that took place in vienna, there had been much attention and indeed pressure from some governments, notably the united states government, on the larger countries, the larger producing countries in opec and opec plus to boost output because of their concern about rising energy prices that is, seems to have been adhered to to have been listened to. and that is how to perceive what'

even in opec, there are hints of this? this go slow approach. to what extent will we see that damage and how quickly bullish open the russian economy? >> i think we are seeing a gradual breakdown of the russian economy. i think that that is a great example, it has been an important step. the initial impact on the economy has not been as profound as we expected, but it will be. manus: good to have you with us. one of the bloomberg stories is that they -- is funding prudence war. that is the headline. it is not a powerful blow to the revenue side, but there will be a tale here. the ability of russia to sell oil to china and other destinations, does that fade and is the outlook going forward harder and tougher as we hit route 6 and maybe round seven of sanctions? >> absolutely. i think we are seeing a darkening outlook. something that is interesting, they think that oil and gas experts will route -- reclined by 10%, not energy by 20%. that is without this additional pullback from the eu that is coming up. the bigger question further ahead is, what

opec's ambiguity is on full display. make most mistake, this meeting is live. we are told deliberations are ongoing for how they will come s compensate for the loss of russian oil. opec could push with the script for the increase in production next month it has been suggested to us that saudi arabia, the uae and perhaps kuwait could step in to pump more oil tapping into the spare capacity to make production adjustment in the coming months as sanctions force the russian barrels offline. russia cannot meet monthly increases. sections mean that trend will continue make no mistake, russia will play a critical role in how the group manages market stability moving forward helima croft has been out with a note today she has an ear to the ground with the things. she has been commenting on what could happen she says we believe russia will retain its leadership role despite western sanctions and production adjustment will not lead to the suspension of the participation in the agreement i think that is particularly interesting because what we have seen is opec granting ex

tom: you and i have seen opec and then there was opec 2 and then there was 1986. events take over. can we see the same kind of shift where opec says enough? steven: i think you can. every boom in oil prices is followed by a boston oil prices. it is a function of the market momentum. it is a function of the political environment, it is a function of the efficiencies created in a system to deal with the higher prices and this will eventually happen. whether it happens in 2022 or 2023, i'm not sure, but it will happen. tom: the steven ricchiuto family had a vw diesel. everyone sent their thermostats at 45 degrees at night, and then opec blew it up. lisa: wear a sweater. what is the price point for gasoline before we start to get some sort of sense of consumer spending? steven: i think you are already starting to see it. the number of the reports we are seeing in terms of walmart and target suggested it. the previous beige book said a few retailers were strong to notice consumers were pushing back on prices. this time half of the districts reported the districts were pushing back on th

on opec plus to boost output because of their concern about rising energy prices. that is, seems to have been adhered to to have been listened to, and that is how to perceive what's been agreed upon. it is worth making the point that oil prices prior to the meeting has been dropping slightly. they have edged up since it has become clear quite what this act put, production rise really entails, but it is also worth looking at the fine print of what has emerged from the meeting, the communicate as it were, the statement from opec plus saying they want to revisit as it were, the decision on the 30th of june in vienna to see what further steps might be necessary. what else they can do. remembering as i say, that what has been agreed is to accelerate the production output from september into july and august. still had allowed. is there an? yes, joe biden. professor destination has shocked americans demand action. never done violence and the refugees returning home after nearly a decade in ah, with that cold air still sitting over victorian new south wales, i brought the

the problem at hand is whether or not opec plus can actually meet its promises. now, we just saw a report yesterday that it is failed to meet its quota as by about 3000000 barrels a day. that's quite significant. earlier this month they had promised to up their production by more than had been anticipated. now in 2020 actually when there was the demand shock of these countries have struggled to up their production since and go beyond what's needed right now. so concerns, yes, there, they're still looming in terabyte in is to, to visit saudi arabia during july, another or a big producer of oil was having to achieve during the visit. well, the u. s. is struggling with these high prices just like everyone else, the biden administration would like to lower them. and this is, he's going to saudi arabia in july, as you said, despite the political tensions between the 2 countries. yeah, he's actually getting some criticism for it. but why? well, we just were talking about the countries that can't meet their quota as those are countries such as nigeria and angola. well,

and opec countries can fully get those targets. they have a few million barrels a day, about one billion each from sally and the uae. they will have to reject -- reach record output, which they have only had for eight weeks total in their history of production. but, it could potentially lower gas prices. oil prices specifically. but at the end of the day, there will be a question of whether or not we have enough refining capacity to meet gasoline demand. kriti: it is almost like markets sometimes react to spare capacity but not refining capacity. you could have a barrel of oil in your living room but you have to turn it into gasoline to make it useful. but you have not actually had any new refining capacity in the u.s. for, i want to say decades. >> you have actually had the opposite. about a million barrels of day -- a day of refining capacity taken off-line since 2020 in the u.s.. and another 2 million per day taken off-line globally. this led to a shortage of gasoline supply even though we have sufficient oil production. even if

at the same time most of these opec players can increase production. we are talking about saudi arabia and uae mostly. it comes to rush i think it is important to realize that russian production is down in april, but it does seem to be rebounding in may and they are planning to open more wells in june. it would not be surprising if we actually see more russian oil on the market now that the eu has agreed to sanctions. it just may not going to eu countries, more will be heading to india and china. taylor: do you see the demand from india and china sort of able to absorb the increased production from russia you just described? ellen: absolutely. if you look at the numbers between december 2021 and april and may now you will see that russia has essentially opened up a huge new market in india. exports increased by a very large amount. india used to be a very small customer, and now it is russia's second-largest customer after china. so huge amounts of oil are going to india. india doesn't see any problem buying it, and i think that the eu and u.s., if the

opec-plus increased supplies during summer but not enough. if you look at this chart and you see opec capacity, we are still far away from the pre-pandemic levels. there is a lot of skepticism about how much supply opec-plus is bringing to the u.s. markets right now. >> more oil in the markets could help to ease the investor concerns around inflation. ahead of the open, we are looking at a bullish start to trade. the bloomberg dollar index was seeing a bit of weakness. that is helping to boost the aussie dollar. that is typical proxy for risk in the asian session. we hear from the vice fed chair dousing cold water she saying there's a lot more work to do when it comes to getting the inflation target and it very hard to see a case for pausing the actions when it comes to hiking at least in the next few months. shery: the reason we focus on much on the fed pausing is all of the recession fears we keep hearing about. even today, the goldman president warning of tougher times ahead saying this is among the most if not the most complex dynamic the

the world's leading oil producers have agreed to increase their output opec members and that opec plus partners will add $648000.00 barrels per day. in july and august. the latest boost will compensate for drop in russian oil. for days of festivities have begun in the united kingdom to celebrate 70 years since queen elizabeth took the throne. tens of thousands of people gathered in central london to mark, cut platinum, judy, opposition parties. and she needs you say, the president's decision to 557 judges is dangerous and will exacerbate the political crisis case i eat, has accused the official of corruption saying he'd given them warning after warning . his opponent say the move strips, the judiciary of its independence, violates the constitution. so he had suspended parliament in july and began ruling by decree. critics in opposition, leaders have described his actions as a qu. israel forces have shot and killed a 17 year old palestinian in al mid year village, west of ramallah palestinian official say, o de might said, arca was near the separation wall when he was shot teenagers. th

lines are from opec. in korea, watching after the fastest rise in price pressures in 13 years and we are watching the one. a code to see a sharp move to the downside not reflected in trade yet so far. shery: let's discuss market action with our next guest. the head of investment strategy at bank of singapore, eli, which markets are you concerned about and could there be upside when it comes to commodity exporters like australia? >> markets in europe look particularly vulnerable now. they are in the eye of the storm and there is a difficult conundrum between inflation and a challenging growth outlook. [indiscernible] overall i think investors should brace themselves for more volatility ahead. shery: what about the chinese stock market? recently there has been a little bit of a rebound. >> it appears to be better risk reward in chinese equities at this time. a lot of negatives have been priced in. chinese policymakers realize they need to stimulate more in order to balance between risk of zero covid policy

of ours. pandemic equipment and net opec plus is reportedly working on compensating for drop in russian. oil output is fallen around $1000000.00 barrels per day in recent months as a result of western sanctions. of to moscow invaded ukraine. live now to dominate k needs in berlin. with more for us and on it, what do we hearing from this meeting so far? sauces close to the me saying which is taking place virtually in vienna, suggest that there is a, perhaps a fledgling agreement as it were to increase output in the months of july and august by $648000.00 barrels per day. that says sources suggesting that it hasn't as it were been approved by the full ministerial meeting as such for that's come from a committee meeting, the j m mc, the joint ministerial monitoring committee wit, who's session came to an end in the course of the last 15 minutes or so now it's up for the full ministerial meeting at a virtual level to agree to that. but obviously all eyes focusing on vienna in this virtual meeting to see what exactly will come from it. whether, as i've just said, whether this idea of an incr

basically opec cannot -- russia. no matter how many it is, there are 7 million barrels to export from russia cannot be delivered by opec. david: that is in a world already tight that china is buying less and consuming less. what happens when all these measures that beijing is putting in place starts to work? does the world have enough oil to account for a recovering china? >> they don't have enough oil, they don't have supply issues, and what's going to happen to this sanction issue? it's one and a half, 2 million barrels in the market and we will have 50 million barrels for the inventory on that. that can make the market change very much. but time is running out. if they don't have an agreement in june or july, august is a time for campaigning and the democrats would lose one or two funders. so you have to have a feel of democracy, otherwise things will get worse and the prices will go higher. rishaad: oil prices are where they are. what kind of chart about how these gulf producers are trading well above their fisca

this is ahead of today's opec meeting. they grapple with how much russian crude may disappear as a result of sanctions. there we go. oil very much at the floor. we've got oil derivatives in the mix. >> the ones that go into the cars. we have a metric which mazars -- measures the average. i don't really need to tell you that it's quite high right now when you look at gas prices in the u.s.. which takes you into inventories heading into the busiest part, driving season. that's where we are, the orange line. five-year average. that's the range. extremely statistically outlier, 2022 is. it doesn't seem we will get the inventory. that's when you see inventory. the world needs more oil. do we get it? >> that's why you have the u.s. speaking with saudi arabia. a way of taming inflation to try to get this saudi's to pump more. let's bring in our oils market reporter on the drop that we are seeing in oil. do you see the saudi's dipping into their spare capacity enough to make up for those lost barrels? also turning their back on ru

quota output plan or break up opec. continue with their current plan but it is opec, and you never know, all right, you never know but someone who does know, salima croft cnbc contributor and somebody who put out three separate notes yesterday on opec. i imagine, halima, you're dialed in you may have been texting some people we have in common i don't think they're going to do anything today as far as booting russia out, what is your take >> it is a very fluid situation, but i do not think russia is going to be booted out of opec but the key question is, are we going to see more output than the 432,000 which is originally planned. i to do think the direction of travel is toward more production coming i think it's coming on the heels of a really intense diplomatic effort on the part of the united states to get saudi arabia to put more on the market but more on the u.s./sadudi relations. i do think the question is how much is left in the tank in terms of what does opec have to deal with this situation >> geopolitical stuff

a report and analysis on opec oil cartel�*s decision. as we all celebrate the queen's platinum jubilee, we take a closer look at the monarchy as a brand. hello there. today, eu trade ministers meet with a renewed focus on securing new trade deals. russia's invasion of ukraine make partnerships crucial. the war has exposed supply chains, leading to calls for the eu to look elsewhere for its goods. it wants to spread the risk to diversify into everything from gas to sunflower oil. joining me now is anahita thoms, head of international trade at the law firm baker mckenzie. thank you so much forjoining me. what's the jackpot for the eu in terms of trade? i think there will be a big focus on the backlog, there will be a lot of discussions around the wto reform, but also, low hanging fruit, i think the focus will be on july, new zealand and mexico to try to seal deals there. let's take july, try to seal deals there. let's takejuly, for example. there take july, for example. there are takejuly, for example. there are big hopes we can seal the d

the world's leading oil producers have agreed to increase their outputs. opec members in the opec class partners will raise production by 640000 barrels per day in july and august. the rates will compensate for drop in russian supply is production for about $1000000.00 barrels a day in recent months as a result of western sanctions imposed after it invaded ukraine dominant came as worn out from berlin. what's been agreed is effectively to accelerate what had been planned for the month of september and to divide it extra as it were into july and august. so that you have this boost in production which has been agreed which will take place in july and august. the interesting thing is that going into this virtual meeting that took place in vienna, there had been much attention and it is pressure from some governments, notably the united states government, on the larger countries, the larger producing countries in opec on opec plus to boost output because of their concern about rising energy prices that is, seems to have been adhered to to have been listened to. and that is how to perceive w

>> so opec has now become opec plus. obviously it is this consortium of oil producing companies in the middle east. it has expanded to include russia, countries other countries in africa. i think it has got 17 countries and it right now. opec we can remember from last time we had a major shortage of energy in the 70s. there were these oil embargo's and oh pack acting in concert to limit how much production was happening which really hurt the u.s. and actually triggered the oil industry in this country. >> we will leave this reported program here. you can finish watching it by going to our website c-span dot org. or with a free video app c-span i. live in capitol hill, the scene inside the cannon house office building where today's january six committee hearing is set to begin this is the fifth in the series yesterday the committee announced they will postpone further hearings until sometime in july today's focus will be on the pressure campaign former president trump and his -- this afternoon we will hear testimony from

tom: what are you looking for then from opec later today? anthony: as you said in the run-up to this, we are looking for them to rubberstamp that decision and rule over what they said they would do. around 600,000 plus barrels a day the increase pledge for august that has already been announced. the real focus is after that, once those production cuts are exhausted and producers are back to normal levels, where did they go from there? that biden trip to saudi arabia in july will really be key for that. we will be looking as ableist said for part two of that decision in what gulf countries do in terms of increasing production. tom: looking at opec later today and the president's visit to saudi arabia lady -- later in july. german on a plug in writing by about -- rising. some context around ukrainian refugees in that country. israel lawmakers are dissolving parliament. you elections are on november the first. francine: that's it for the open, surveillance: early edition is up next read we will have a full round up of the market action and it i

will a decision by opec make a difference? what the white house is considering. >>> concerns about the queen. day two of her platinum jubilee getting under way. the palace says the queen will miss a major event. >>> is america ready to pay to hitch a ride in a robot taxi? one state says yes. >>> and later, something we've never seen at the national spelling bee. >> announcer: from abc news in new york, this is "america this morning." >>> good friday morning, everyone. we begin with breaking news from texas. a violent end to a manhunt for a convicted killer who escaped from a prison bus last month. >> gonzalo lopez has been killed in a shootout with police after three weeks on the run. police say they tracked him down south of san antonio after he killed a family of five. the bodies of an adult and four children were found inside a cabin and their pickup truck was missing. lopez had been serving a life sentence for killing a man with a pick ax. >>> a developing story overnight from iowa. a double shooting outside a church. a ma

and we know that russia is the plus of opec plus, and i don't know how much power they have left in opec. you tell me. i mean, are they that big of a power as they were i want to say about a year ago when they were able to really sway opec? >> well, they're still a really big producer of crude oil refined product. they export to europe and natural gas, hugely vital. it is a bit complicated. opec is very grateful for russia for coordinating its output. they are trying to keep russia in the fold. russia's ability to actually take part in the opec output agreement is pretty limited right now. opec announced increased supplies last week. where is that going to come from? that's not going to come from russia. s&p global commodity -- the analytics part of my company we expect russian supply to fall about 2 million barrels a day between now and the end of the year. the extra opec supply [inaudible] -- not from russia. that will be from saudi arabia -- [inaudible]. >> liz: when you look at gasoline, that's tough to see, but that's a wholesale price, $4.20. we're looking at new records for retail

they're not interested in what opec-plus did yesterday. they are still looking for 125 on brent brent on the year right now is up. tom: i'm gonna look at 120 is a really emotional level people watching. to really break through 120 10 sustain above 120 would be a game changer. jonathan: 150, 91 is where we are. thank you. tom: are you done? jonathan: i am. tom: julia coronado, president and founder of macropolicy. you have a teeter todd -- teeter totter between goods and services. how will goods and services teeter totter this morning? julia: there is a little bit of an irony that we expect in the pattern of job gains. we expect goods producing -- good producing sectors to remain hot. there is still too much of a catching up they have to do in terms of manufacturing option. even the housing demand is starting to weaken and consumers are shifting away from goods. there are still plenty of rehiring and hiring backup that the good producing sector has to do. meanwhile, the delivery and the selling of goods is where we expect some weakness. we

thursday is the opec muss meeting. are we there yet where opec makes any kind of big move or is this going to be what, the ninth consecutive meeting where they rubber tamp it, move it up a couple ticks and if so, when do we get the big shift. press conference from opec >> we'd love the press conference your royal highness, please. no, i think it's an expectation they're going to roll over the 648,000. remember last month's meeting they were essentially saying there's three months left in the agreement. cut it to two. the big question mark is president biden's going to riyadh next month. what do we get from the saudis what do we get from the rest of the gcc in terms of additional barrels beyond september >> yeah, hard to see anything happening ahead of that meeting. great discussion and fascinating scenes from the g-7 with emmanuel macron, becky. i don't want to make too much of it, but he comes running up, mr. president. >> it felt so raw that there was a camera able to capture all that stuff that's what we imagine the

skepticism that opec can make a dent in the soaring cost of crude. we see that playing out with citi and barclays raising prices in 2022 and 2023 saying tighter supplies and delay in the return of russian oil is going to be another bullish catalyst moving forward. it does seem like for now higher prices are here to stay. you see brent and wti knocking on $120 a barrel u.s. dollars. >> dynamics and making it tough. dan, while we have you and talking about saudi arabia a lot of attention on president biden's scheduled trip coming up in june. now the visit may be delayed do you know more about that? >> that's right. nbc news reached out to the saudi embassy and israeli embassy in washington, d.c. seeking comment sand clarification over why the trip had been postponed the white house never confirmed the dates for the trip the president is expected to travel to the region some time soon the exact reason why this trip in june was canceled or postponed remains to be seen at the focus of this visit was, of course, his trip into saudi arabia where he is attem

and canadian producers, president biden went to opec, venezuela and iran. it's like a babylon be parity, by's reality from this administration. energy security is national security and we should be increasing north american production, not going to foreign adversaries. premier kenney, do you worry that the biden administration's arbitrary decision to kill the keystone xl pipeline -- and i say arbitrary, because i don't see any sense from an environmental viewpoint, economic viewpoint. the most carbon friendly way to transport a liquid. it kills thousands of jobs. could that possibly lead to further decisions to kill trans pour pipelines? by the, way there is heavy operating with gas pipelines in the u.s. and canada as we wake up today. 31 transfer oil, 39 natural gas. could this lead to further decisions that connect alberta and canada to the united states? and what can we do to continue to strengthen the montana alberta energy partnership? >> thank you very much, senator. good to see you again. the answer is yes, i'm concerned it creates a very problematic

we will have the opec report out today. bitcoin, 22,800, paring the heavier losses of the session down 1.7%. market cap for crypto down broadly and concerns there could be more ruptures. dani: bitcoin coming back a bit. it does reflect what we are seeing in broader risk markets. asian stocks are still down but not as badly as they were. there you go, this is the asian markets for you down 1.4%. euro stock and s&p 500 futures coming back. not enough to undo the losses of 4% plus in the case of some indices. all of this off the back of a real yield comfortably positive, breakneck pace is in moves as we try to come to terms with 75 basis points. the fresh price extremes, to list them all, i'm not going to do that. tom: we will have scott thiel shortly. red-hot inflation has increased bets for a 75 basis point move by the fed, some looking for an even more dramatic move. >> we had 50 in june, 50 in july. given how bad the announcement was friday, i think what chairman powell could do is bring that 50 forward. there might be an

anne-marie: even before russia invaded ukraine, opec itself, countries and opec have had wars with each other and the cartel has the lived to this day step there is a lot of talk about the death of opec and opec-plus but what the saudi's did the last meeting being the defector leader of this group was to walk a fine line with giving an olive branch in the administration has been asking for more oil, keeping rush on board to agree to this increase in production. how long can they do that is the question? tom: thank you so much. moments ago, sterling, one dollar 20 one cents, an indication of a slowing, me in continental europe. lisa: it comes after the labor market report that wages in the united kingdom fell to their lowest going back 21 years. it's eating away any gains you are seeing in terms of wages. this speaks to the moment we are in. the nfib survey of small business came out at its lowest reading in history in terms of what small business owners expect over the next six months. this underscores the feeling of doom but in the real economy. tom: i saw the report last night and i t

opec was thinking about suspending russia from an opec production deal. let's bring in the founder and director of research at energy aspects, and a lot of moving cross currents here, amerita >> there was never a talk of opec suspending russia the rumors were about exemption. i think they're very important words to distinguish just remember iran and russia are under sanctions. we are being told by our sources that that's not the case that's not something that's on the table for tomorrow the current deal is in place for another three months however, this could be an issue for september onwards, where the current deal, once it ends, perhaps that's when opec plus will require to rethink how it continues its production policy. right now compliance is right under what it needs to be. we know the white house is putting a lot of pressure on saudi arabia and uae to raise production it's saying by the way, we've exempted russia and our overall compliance is better there are ways to address those concerns, but i do want to reiterate there is a very strong link betw