FirstFT: OPEC risks endangering economic recovery, says White House

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The White House said Opec + risked jeopardizing the global economic recovery by refusing to accelerate the increase in oil production and warned that the United States was prepared to use “all the tools” necessary to lower fuel prices.

The move came after the Saudi Arabia-led Opec and its allies such as Russia rejected calls by the United States to help contain rising oil prices, insisting it was would stick to a plan to gradually increase production, even if demand returned from the depths of the pandemic.

“OPEC + does not appear willing to use the capacity and power it currently has at this critical time of global recovery for countries around the world,” a spokesperson for Biden’s National Security Council said.

“Our view is that the global recovery should not be jeopardized by a mismatch between supply and demand.”

Oil prices are near seven-year highs despite economic activity not yet fully returning to pre-pandemic levels and higher energy costs are fueling concerns about inflation. Brent crude oil prices fell about 2% after meeting to $ 80 a barrel.

Do you think OPEC should increase oil production? Let me know what you think at [email protected] Here is the rest of today’s news – Emily

Five other articles in the news

1. Global bonds rally after BoE left investors ‘surprised’ There was a strong rally in global bond markets yesterday after the Bank of England kept interest rates at record highs, surprising investors who had spent the past few weeks positioning themselves for a shift towards a tightening of monetary policy on the part of the major central banks.

2. Credit Suisse abandons the Broking premium The Swiss bank announced yesterday that it will consolidate its wealth management division and streamline its investment bank.

3. Chinese coal miners pledge to lower prices Chinese officials have said the country’s coal miners have pledged to sell at a discount after Beijing intervened in energy markets to ease the domestic electricity crisis.

4. Merck’s Covid Pill Gets UK Green Light The UK medicines regulator today granted the company’s first authorization for the company’s antiviral pill for Covid-19, a drug which has been hailed by public health experts as an important new tool in the fight against the pandemic.

  • More Covid-19 news: U.S. companies will have until January 4 to implement the Biden administration’s new Covid-19 “vaccine or test” mandate, or face fines of up to $ 130,000.

5. Music label BTS partners with crypto exchange Hybe, the music label behind K-pop superstars BTS, has announced plans to partner with South Korea’s largest crypto exchange operator to sell non-fungible tokens linked to the boy band and generate a new source of income.

Hybe hopes to have better control over the copyright of content produced by K-pop boy group BTS using blockchain-secured NFTs © REUTERS

Summary of COP26

  • indonesia The environment minister called a global pledge to stop deforestation “inappropriate and unfair”, causing the agreement to unravel.

  • A flagship global deal to reduce coal use was undermined yesterday morning as the we refused to sign and the text was weakened.

  • A senior UN official blasted the world Bank to be a “continuous underperformator” on climate change.

  • Gillian tett describes the two factors that will determine whether climate commitments can be turned into fulfilled promises. Subscribe here to Moral Money, our newsletter on sustainable finance, published every day of the week during COP26.

Explore the FT Global Gallery: COP26 edition, a digital exhibit that reflects the themes and goals of this year’s high-stakes summit, featuring multimedia interpretations of FT journalism, thought-provoking films, interactive data visualization and exclusively commissioned artwork.

The day to come

Speech by the Australian Minister for Energy Angus Taylor, Minister for Industry, Energy and Emissions Reduction, will deliver the keynote address at UK think tank Policy Exchange event Forging a path to Net Zero. At COP26, Canberra presented a plan for net zero emissions by 2050, but was criticized for not setting a more robust 2030 target. (Policy exchange, tutor)

US Employment Report Friday’s Labor Department employment report is expected to show employers created 450,000 non-farm jobs in the month, according to a Reuters poll of economists, up from 194,000 in September.

What else do we read

Oil prices skyrocket as world turns against fossil fuels In last year’s presidential election, Joe Biden spoke of leading the United States in an “oil transition”. He must now ask global crude producers to pump more fossil fuels to bring prices down in recent weeks.

Line graph of the price of crude oil, West Texas Intermediate ($ per barrel) showing that the price of oil reaches its highest level in seven years

Henry Kissinger’s stern warnings on China The former Cold War strategist told FT’s Edward Luce in an interview that artificial intelligence poses a far greater challenge than nuclear weapons, adding that the United States does not know enough about AI to determine whether China is ahead, or what it could do if it were.

US plans to vaccinate children encountered by skeptical parents The Biden administration’s plan for rapid deployment of the jab to 28 million young children faces a big challenge – high levels of reluctance to immunize among parents and politicization of the national strategy Covid-19.

“Introducing nature into the economy is not a giant leap” In a conversation with environmental correspondent Leslie Hook, Cambridge professor Partha Dasgupta said “severe” damage to ecosystems is not factored into macroeconomic forecasts.

Sequoia borrows Wall Street’s playbook The famous Silicon Valley venture capital firm is trying to replicate the success of groups such as Blackstone and Pershing Square by creating a “permanent structure” to house the capital of investors who will then channel the money into its compartments.

To travel

The Canary Islands have been a mainstay of the tourist circuit since the 1960s, but La Graciosa, a dry spot just five miles from end to end, has escaped development despite being within swimming distance of Lanzarote.

Child walking on the sand in Playa Francesa, in the south of the island

On the way to Playa Francesa, in the south of the island © Daniel Metcalfe

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