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Saudi Energy Minister: New OPEC+ Production Mechanism will Help Stabilize Markets
Saudi Energy Minister Prince Abdulaziz Bin Salman stated on Monday that a new mechanism adopted by OPEC+ for assessing members' maximum production capacity will help stabilize markets and reward those investing in production. OPEC announced on Sunday that the OPEC+ group has approved a mechanism for assessing members' maximum production capacities to be used to set baselines starting in 2027 against which output targets will be set. Prince Abdulaziz claimed that the production level determination mechanism was "fair" and "transparent". He said, "Now, we have the most detailed and transparent approach to managing the market in the future, as well as how to manage production", He said, "Yesterday has been one of my most successful days personally and I'm very grateful for the support from our friends in Russia," during the launch in Riyadh of a Saudi and Russian business forum. The meetings of OPEC+ on Sunday, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia also agreed that oil production levels would remain unchanged in the first quarter of 2020. Sources following the meetings said that an evaluation of member's maximum production capacity will take place between January 2026 and September 2026. This will allow for output quotas in 2027. Prince Abdulaziz stated that the mechanism would reward those who invested and believed in growth. It would also put us at the forefront of other producers. OPEC+ members have been talking about production capacity and quotas for years. However, the talks were difficult due to the fact that some members like the United Arab Emirates had increased their capacity and wanted higher quotas. Some members, such as African nations, have experienced a decline in production capacity. However they are refusing to reduce their quotas. Angola left the group in 2024 due to a disagreement over its production quotas.
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Trump's call for more AI datacenters is met with opposition from his own voters
Residents wore camouflage hats, red shirts and other signs of unity to a meeting of a rural Pennsylvania planning committee. They were there to protest the proposed data center that they feared could rip up their farmland or disrupt the tranquil rhythms of their valley. The majority of the residents were loyal supporters who voted for President Donald Trump in 2024, winning their county by 20 percentage points. They were angry at Washington for its push to accelerate artificial intelligence infrastructure. This has led to the growth of data centers in rural areas across the U.S., where land is inexpensive. Residents of this county, which has 18,000 residents, stepped up to the microphone one evening in November and asked Talen Energy officials how their proposed data center would increase residents' utility costs, reduce farmland and stress local water and resources. Two women sang a riff of Woody Guthrie’s folk song “This Land Is Your Land”: "Say no rezoning so that water will keep flowing and crops will continue to grow." Politicians across the U.S. urge a rapid expansion in data-center capacity, and new energy production to keep AI competitive. Trump, a Republican politician, has urged his administration to ignore environmental regulations and permits that would give local communities a say. In Pennsylvania, Democratic Gov. Josh Shapiro (Democrat) and Republican Sen. Dave McCormick (Republican) are wooing developers to invest in the rapidly-growing industry with incentives and upgrades of infrastructure. Some communities are happy to see the economic boost. The backlash in Montour County in central Pennsylvania is a reflection of a growing coalition between farmers, environmentalists, and homeowners who are united to oppose data-center expansion. Data Center Watch published a report earlier this year that found $64 billion in data center projects were blocked or delayed due to local opposition from states such as Texas, Oregon, and Tennessee. Pennsylvania critics worry that the region will become "data center Alley" in northern Virginia, with its sprawling, vast complexes. The pushback, if successful, could slow down efforts by the administration to build AI infrastructure quickly enough to keep up with global competitors. Politicians say that anger over these projects could also add to Republicans' affordability concerns as they prepare for the midterm elections in 2026. Chris Borick is a professor of political science at Muhlenberg College, in Allentown, Pennsylvania. He added that the politics of AI infrastructure remain unresolved: "The technology is still evolving and politicians are still figuring out their position." Like social media, everyone jumped in without understanding the consequences. SAVE CULTURE Talen Energy has requested to rezone approximately 1,300 acres of land in Montour County, from agricultural to industrial uses. This is the first step towards building a large and complex data center with 12-15 buildings. The site is located in the shadows of Talen Energy's 1,528 megawatt natural gas-fired power station, nestled among farmland, dirt roads and the Amish community. Talen Energy said that the project would require 350 acres of farmland used for soybeans, livestock and corn. Residents are concerned that losing the land will weaken local agriculture, and a nearby facility that processes soybeans to produce regional food and feed. Rebecca Dressler, Republican Montour County commissioner, stated that the concerns were less about ideology and more about preserving the character of the region. Dressler stated that "small-town character is what defines our community." People aren't against development - they simply want growth that suits who we are. The county planning commission voted 6-1 against the rezoning at its November meeting. This decision was met with thunderous applause. Dressler and two other county commissioners will make a final decision on the issue in mid-December. Residents are not blaming Trump but rather the billion-dollar data-center companies that have the money to buy up farmland and reshape rural areas, leaving locals to pay higher utility bills. Theresa McCollum (70), a Trump supporter, said: "I believe it's a culture that has forgotten the little person, the people living here, the farmers struggling with the economic situation." The shift of power from Washington to a region that takes pride in local control is not well received. "Stay out. Craig High, a 39-year-old Trump supporter, said that without federal involvement, we wouldn't be having this discussion. Both (political parties) are pushing data centres and giving regulatory relief - water permits, permitting, everything. PENNSYLVANIA BOOM Pennsylvania's plentiful, stable electricity makes it a hotspot for data centers. It has attracted tens billions of dollars in investments from Amazon.com and Alphabet's Google. Microsoft is also interested, while Constellation Energy wants to use the old Three Mile Island Nuclear Power Plant to power new server farm. Residents fear that they will end up paying the price. Pennsylvania utilities predict a dramatic increase in electricity demand by data centers at the end of this decade - enough power to supply several million more homes. According to federal data, electricity prices in Pennsylvania have increased by 15% over the last year. This is roughly twice the national average. This surge has already rippled through the grid in the region. Recent auctions have seen a spike in capacity prices, which determine how much power plants get paid to supply the grid during times of peak demand. Utilities have also begun to raise rates to pay for growing infrastructure. Analysts warn of a significant increase in customer bills over the next few years. Many families are already feeling the strain. Since 2022, the amount of overdue utility bills has risen faster than the inflation rate. According to the Century Foundation a progressive research group, Pennsylvania is among the states that have the highest household energy debt. These pressures on the wallet are beginning to change politics in certain parts of America. Alicia Johnson was elected as one of only two Democrats to Georgia's utility boards since 2007, after her campaign focused on frustration with rising power bills and the unchecked expansion of data centers. She said that the issues she raised in her campaign are a preview of the challenges states such as Pennsylvania could face during next year's midterm elections in the United States. In recent years, power prices in Georgia have risen dramatically due to massive cost overruns in the new Vogtle Nuclear Plant. Johnson said that data centers and utility costs were two of the most important issues in the election. People are angry. They don't like data centers that don't have guardrails and they don’t want to pay for them. In 2026, this will be a part of the national debate on affordability. Ginny Markille-Kerslake is an organizer for Food and Water Watch. This environmental non-profit group has spent many months organizing opposition to data centres in places such as Montour County. She predicted that there would be a political reckoning in the next year. She said that "communities, red, blue and everything in-between, are united in their opposition", referring to the so-called red regions dominated by Republicans, and blue regions controlled by Democrats. This issue brings people together at a time we are so divided.
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European stocks drop, but yen is boosted by Japan's rate hike bets
The European stock market fell on Monday as it retreated from recent gains. However, the Japanese yen and government bond yields were boosted by comments that suggested the central bank may raise interest rates. The market was a little jittery during November but has strengthened over the last week as traders bet more on the Federal Reserve of the United States cutting rates at their December meeting. At 1023 GMT Europe's STOXX 600 fell 0.3% for the day, as markets were gripped by a new wave of risk-aversion. London's FTSE 100 remained flat, while Germany's DAX fell 0.9%. The MSCI World Equity Index fell 0.1% for the day. After U.S. officials and Ukrainian officials had what they both called productive discussions on Sunday, about a potential Russia/Ukraine deal, a drop in defence stocks contributed to the weakness of European indexes. Bitcoin was down 4.9% to $86,675.96 in a sign of increased risk-aversion. This has put pressure on companies that buy bitcoin. Gold reached its highest level in six weeks on the back of expectations that U.S. rates will be cut. It was last up by 0.6% to $4,254.97. Bank of Japan to consider raising rates Bank of Japan Governor Kazuo Ueda stated that the central will weigh the "pros" and "cons" of increasing rates at the next policy meeting. This caused traders to increase their bets on rate hikes. After the remarks, the yen reached a session-high of 155.49 to the dollar. The yield on two-year Japanese government bonds also rose by 2 basis points and hit its highest level since June 2008. Dollar-yen was last seen at 155.16. Carry trades are popular because of Japan's low interest rates. Traders borrow yen for a low rate to invest in riskier assets. Fiona Cincotta is a senior market analyst with City Index. She said Monday's negative market sentiment may have been influenced by the possibility that higher rates in Japan would make this position less lucrative. "Concerns about the unwinding the carry trade had been lingering in the background for some time. But I think that comments made by Governor Ueda indicating a rate increase in December have really revived these concerns." The dollar index fell 0.2% for the day to 99.258, and the euro rose 0.3% to $1.1626. Investors awaited the euro zone inflation figures due Tuesday. Germany's 2-year bond yield, sensitive to expectations of the European Central Bank policy outlook, reached its highest level since March 28. ECONOMIC DATA TO COMME Traders waited for economic data this week on manufacturing, consumer sentiment and services to set the tone before the Fed meeting on December 9-10. According to LSEG, markets are pricing in a 92.4% probability of a rate cut of 25 basis points. The data this week will be the last opportunity for markets to reconsider an December Fed cut, which is already fully priced in. Although the market's dovish wagers seem too high, ING FX strategist Francesco Pesole said in a client note that the ISM figures, ADP figures and PCE numbers will validate them. Matt Simpson, senior analyst at StoneX, in Brisbane, says that if incoming data signals a slowdown, but not a recession, then the sentiment will probably remain positive, even if the U.S. Dollar weakens, as it usually does during this time of the year. Brent crude futures rose 1.7% to $63.46 after the Caspian Pipeline Consortium halted its exports following a major drone strike and tensions between the U.S. and Venezuela raised concerns over supply. OPEC+ also agreed to maintain the same oil production levels for the first quarter 2026. (Reporting from Elizabeth Howcroft in Paris; additional reporting by Ankur banerjee in Singapore. Editing by Susan Fenton.)
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As part of an organisational review, UK-based Harbour Energy is expecting to cut 100 jobs offshore
Harbour Energy, an offshore producer with a focus on the North Sea, announced Monday that it would be cutting 100 jobs in its UK operations as part of a review of their UK organisation. Low commodity prices and a tax regime that is not competitive have put pressure on the UK oil-and-gas sector. This has led to Harbour's offshore restructuring, according to Scott Barr, Harbour's UK managing director. After a consultation phase, which is expected to end in the first quarter 2026, job cuts are planned. By 2023, 600 new jobs will be created. On top of this, the job losses announced Monday will be even more severe. The British government has one of the toughest tax systems in the world for oil and gas companies. This includes a windfall tax of 38% if prices are above government thresholds. In such cases, the total tax burden is 78%. The industry had hoped that the Energy Profits Levy would be withdrawn sooner than March 2030. The offshore reorganisation was a necessary step in order to align our operational model with the reduced production and activity levels in the UK. This was accelerated by the EPL's retention, and we maintained our commitment to safety standards and regulatory standards." Barr stated. The EPL will remain in place and Harbour's UK Business Unit is likely to continue to struggle for capital to fund our global portfolio. The government announced on Wednesday that it would allow new oil and natural gas production in or near existing fields. (Reporting and editing by Stephanie Kelly, Kirsten Doovan and Bernadettebaum)
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Bitcoin drops 5% below $90,000; bearish factors rack up
Bitcoin dropped below $90,000. This was the steepest monthly drop since 2021's crypto crash. Investors were once again avoiding risk, and they pulled out of stocks, digital assets, and other digital assets. At one point, the world's biggest cryptocurrency dropped by up to 6.1%. By 0942 GMT it had fallen nearly 5% to $86,754, its largest one-day drop in a year and was hovering around last month's 8-month low of $71,553. Bitcoin lost more than $18,000 during November. This is its biggest dollar loss since the collapse of several cryptocurrencies in May 2021. RISK INDICATOR Bitcoin's relatively short life span means that there are few seasonal patterns to guide traders in predicting how it will behave in December. Since its creation in 2012, Bitcoin has risen on average by 9.7% in December. October is the best month with an average gain 16.6% and September the worst with a 3.5% average loss. Analysts said that the tight correlation between bitcoin and the stock market could be more relevant at this time. In a recent note, XTB Research Director Kathleen Brooks stated that "Bitcoin is a leading indicator of risk sentiment at this time and its decline does not bode very well for stocks to start the month." She said that "there is no obvious driver" for Monday's market. However, last week's sharp drop in volatility, when the VIX dropped below the average of the past 12 months, could have worried some investors, who are still concerned about the uncertain outlook going into the year-end. Ether, second largest cryptocurrency behind bitcoin in terms of market value, fell 6% to $2,840. It had lost 22% in November. This was the biggest drop since the 32% decline in February. NEGATIVES ARE ADDING UP Mohit Kumar, a strategist at Jefferies, said that the crypto-negative factors leading up to the weekend would add pressure on bitcoin for Monday. S&P Global, the world's leading stablecoin, downgraded Tether last week. It cited an increase in higher risk assets in Tether's reserves, and "persistent disclosure gaps," with which Tether "strongly disagrees." Phong Le told the podcast "What Bitcoin Did", on Friday, that Strategy, the largest corporate bitcoin owner in the world, would consider selling their holdings, if the "mNAV", or enterprise value divided by the value of the bitcoins, fell below 1. According to Strategy's site, the ratio is around 1.19. In premarket trading, shares of Strategy and other crypto-companies such as Coinbase, Riot Platforms, and MARA Holdings, and mining companies Riot Platforms and MARA Holdings fell between 3-4 %. According to CoinGecko, since the crypto market reached a size of $4.3 trillion, it has lost more than $1 trillion. According to LSEG, exchange-traded fund (ETF) products backed by bitcoin spot saw record outflows in November of $3.43bn. In total, $21 billion have been invested in these products so far this year.
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Silver reaches record highs; gold reaches six-week high on optimism about rate cuts
The gold price rose on Monday, reaching its highest level in the past six weeks. Investors were boosted by expectations that interest rates could be cut in the United States later this month, and by changes in Federal Reserve leadership. Silver also reached a new record high. As of 0855 GMT spot gold rose 0.3% to $4,241.21 an ounce, its highest level since October 21. U.S. Gold Futures for December Delivery gained 0.5%, to $4275.40. Silver rose 1.3%, to $57.12 an ounce. It had previously reached a record high of $57.86. The market is now pricing in a rate reduction for the Fed for December. Also, the expectation that the new FOMC Chairman will be a dove... is driving investment demand for Gold," said UBS Analyst Giovanni Staunovo. Silver benefits from the same factors as gold plus the expectation that industrial demand will improve further next year. In the past few weeks, traders have placed more bets on interest rate reductions in December, following softening U.S. economic data and comments from several policymakers including Federal Reserve Governor Christopher Waller, and New York Fed president John Williams. According to CME's FedWatch, the markets are pricing in an 88% probability of a rate reduction. Non-yielding gold tends to be supported by lower borrowing costs. Kevin Hassett, White House economist, said that if he were chosen as the next Fed chairman he would be delighted to do so. Hassett, like Trump, believes that rates should be lowered. Trump will likely announce a new chairman before Christmas, according to Treasury Secretary Scott Bessent. The markets are now awaiting the ADP November employment report, which will be released on Wednesday, and core U.S. The Fed will also be looking at the September Personal Consumption Spending figures, which are due out on Friday. The U.S. Dollar fell to its lowest level in two weeks, which made the price of greenback bullion more affordable for holders other currencies. Staunovo said, "We anticipate gold will rise to $4.500/oz (and) that silver will rise to $60/oz." (Reporting by Pablo Sinha in Bengaluru; Editing by Mrigank Dhaniwala) (Reporting and editing by Mrigank Dahniwala in Bengaluru)
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China's stock rally begins to gain investor confidence
Fund managers have been picking up Chinese industrial shares and volatile tech stocks, relying on a rally in equities that has lasted for two years to withstand a rough economic patch. They are betting on valuations and steady returns to bring back foreign investors. China's blue chip index CSI300 has surpassed the S&P 500, with a gain of roughly 16% in year-to date. Hong Kong's Hang Seng – up around 30% – is on track for its largest annual increase since 2017. The mood has changed from the euphoria triggered by stimulus a year earlier, but the ride is getting bumpier. This is especially true as the pressure on China Vanke reminds the market participants that the prolonged property downturn will not be over. Investors and analysts seem to have little concern about the current bull market, claiming that it is only taking a break. Laura Wang, Morgan Stanley's China equity strategist, said: "We think we are only at the beginning stages of a gradual process where foreign investors come back to China." She said that investors had begun to change their minds after seeing the results of this year. China stocks have also defied Sino-American trade friction and climbed thanks to state support, improved corporate governance and big gains for artificial-intelligence-linked stocks after the impressive release of DeepSeek's chatbot. Hong Kong's capital markets, which have recently been revived, also saw a record HK$1.38 billion ($177 billion). Fund manager Xia Fuguang at Shenzhen Rongzhi Investment said that the next leg of bull run would likely be driven primarily by fundamental improvements and growth in earnings. He is also in favor of Beijing's anti-involution campaign, which is a campaign to combat industrial overcapacity, price wars and other issues. ANTI-INVOLUTION Fund managers claim that industrial stock valuations are also attractive and are attracting investment. Fund manager Wang An stated that "cyclical stocks are relatively inexpensive, so you can build positions when prices are low as anti-involution policy gradually takes root." According to Datayes, over the past three-month period, ETFs that track the CSI Battery Thematic Index have seen net inflows of 13.5 billion yuan, or $1.91 billion. Another 11.2 billion yuan has been invested in funds tracking the CSI Chemicals Sub-industry Index. Funds that track the STAR 50 Index, a tech-heavy index, experienced net outflows of 31.1 billion yuan during the same time period. Xu Jie is a fund manager from Shanghai at Yuanzi Investment Management. He has purchased solar energy, steelmaking, and coal stocks. Xu, citing possible inflows of foreigners and depositors, said that there is "no doubt" the slow bull run in China will continue into next year. The Shanghai Composite Index, and Hong Kong's Hang Seng both trade at around 12 times earnings. According to LSEG, this compares to a multiple 28 for the S&P 500 and a ratio 21 for Japan's Nikkei 225. The FTSE 100 Index in Europe has a price-to earnings ratio of 21. Wang Wendi is the distribution manager of Shanghai Intewise Capital. The company has increased its stakes in chemical producers, steelmakers and express delivery firms. Zenith & Xenium Capital is another Chinese fund house that has also made bets on cyclical sectors like photovoltaic companies, refiners, chemical processors, and new energy. NEW CHINA For the past few decades, foreigners have been concerned about policy risks in China. They have kept their allocations low while U.S. investments and global investments performed well. Investors have said that they are not 100% in China. Factory activity has slowed down for the eighth consecutive month in October. Vincenzo Vedda is the global chief investment officer of DWS. He said, "We're not sure about China." China no longer provides real-time information on foreign inflows. The latest figures from the central bank show that foreign holdings reached 3.5 trillion Yuan by the end of September. This is well below the peak of 3.9 billion yuan set in 2021, but still reflects some strength. Florian Neto is the head of Asia investment at Amundi - Europe's largest asset manager. He is neutral, but makes a distinction between "old China", where exporters, developers, and other firms faced economic challenges, and "new China," where AI and biotech companies can expect to see earnings growth. He said, "The market is driven by innovation, technology and innovative drugs, especially in China. We are looking forward to bringing on more products." Investors who look at their returns for the full year may decide to buy in 2026. Kristina Hooper, the chief market strategist of Man Group in New York, said that other stock markets performed better this year than the U.S. "I think most investors will recognize this paradigm shift by January... I believe that encourages looking for opportunities outside of the U.S., especially when valuations are so stretched."
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Bitcoin drops 5% to $90,000. Investors abandon risky assets
Bitcoin dropped below $90,000. This was the steepest monthly drop since 2021's crypto crash. Investors were once again averse to risk, and they pulled out of stocks, digital assets, and other digital assets. The largest cryptocurrency in the world fell 5%, to $86,627. It is on track for its biggest single-day drop since early November, and is hovering around last month's 8-month low, of $80 553. Bitcoin lost more than $18,000 during November. This is its biggest dollar loss since the collapse of several cryptocurrencies in May 2021. Stocks in Europe dropped in early trading. U.S. Futures indicated a fall of 0.6-0.7% in the major indexes for later. Safe havens like gold and the Swiss Franc also edged higher. Bitcoin's relatively short life span means that there are few seasonal patterns to guide traders in predicting how it will behave in December. Since its creation in 2012, Bitcoin has risen on average by 9.7% in December. October is the best month with an average gain 16.6% and September the worst with an average decline of 3.5%. Analysts said that the tight correlation between bitcoin and the stock market could be more relevant at this time. In a recent note, XTB Research Director Kathleen Brooks stated that "Bitcoin is a leading indicator of risk sentiment at this time and its decline does not bode very well for stocks to start the month." She said that "there is no obvious driver" for Monday's market. However, last week's sharp drop in volatility, when the VIX dropped below the average of the past 12 months, could have worried some investors, who are still concerned about the uncertain outlook going into the year-end. Ether, second largest cryptocurrency behind bitcoin in terms of market value, fell 6% to $2,840. It had lost 22% of its value in November. This was the biggest drop since the 32% decline in February. According to CoinGecko, since the crypto market reached a size of $4.3 trillion, it has lost more than $1 trillion. According to LSEG, exchange-traded fund (ETF) products backed by bitcoin spot saw record outflows in November of $3.43bn. In total, $21 billion have been invested in these products so far this year.
Ukrainian authorities investigate alleged large-scale energy corruption
Ukraine's Anti-Corruption Bureau said on Monday it was conducting an extensive investigation into the energy sector of the country, claiming kickbacks were involved in transactions involving Ukraine’s state nuclear power company Energoatom.
Energoatom and the Ukrainian energy ministry did not respond to comments immediately.
In a statement, the Bureau, an independent state agency, claimed that four employees of "back office", including a former energy minister's adviser, the head of security at Energoatom, and a businessman were part of a "high level criminal organization." The statement did not name any of the individuals.
The Telegram app's announcement by the bureau said that the members of the criminal group "have developed a large-scale scheme for corruption to influence strategic enterprises within the public sector in particular 'Energoatom.'"
In a later statement, Energoatom's counterparties said they were forced to pay kickbacks between 10-15% to avoid payment for goods or services being blocked or losing their supplier status.
The statement stated that Energoatom, a strategic enterprise with a revenue of more than 200 billion hryvnias (4.79 billion dollars) per year, was not managed by its proper officials but by third-parties who did not have formal authority.
After a move by the government to limit their powers, President Volodymyr Zelenskiy was forced to reverse his course in July 2025 after large protests and international condemnation.
Kyiv must eliminate corruption and strengthen the rule of law in order to be eligible to join the EU. Ukrainians believe that this is vital to their future, as they fight off Russian invasion.
A new Russian bombing campaign in the autumn of this year has caused significant damage to Ukraine's electricity system, leading to massive power outages for all consumers. According to Ukrainian authorities, Russia did not target nuclear plants but substations that were connected to them. $1 = 41.7754 Hryvnias (Reporting and writing by Anastasiia malenko and Yuliia dysa; Editing, Toby Chopra and Alexandra Hudson).
(source: Reuters)