Oil prices are near their lowest levels all year, reflecting a drop in global demand. What is ahead has investors on edge—and they are betting OPEC and its allies, OPEC+, won’t come to the rescue by cutting production when they meet on Sunday. Since October, OPEC+ has reduced production by 3.5 million barrels a day, but the price of oil continues to fall. China’s rebound from Covid restrictions hasn’t been as strong as some analysts had expected, and a key country in the alliance isn’t adhering to announced production cuts.
An investor-driven climate change push at some of the world’s largest oil companies has stalled out. Exxon Mobil and Chevron shareholders have struck down a raft of proposals urging the companies to cut greenhouse-gas emissions derived from fuel consumption and disclose certain oil-spill risks. All but two of the 20 shareholder proposals for the two companies garnered less than 25% of investors’ votes.
Futures are mixed after stocks closed lower yesterday. The Dow Industrials fell 134, the Nasdaq lose 82 and the S&P 500 was down 25.