OPEC+ to reduce oil export

In a move that is anticipated to push up petrol costs globally, some of the main oilproducing nations have decided to reduce the quantity of oil they export. Members of OPEC+ - a bloc that includes Saudi Arabia and Russia - stated they will decrease production by two million barrels per day.

The organisation claimed it wished to stabilise prices, which have decreased recently as the global economy has slowed. However, the decision sparked worries that petrol prices might increase. Oil prices have already increased due to expectations that nations may reduce their pumping. The cost of a barrel of Brent crude increased by about 2% to over $93 (£82).

"The question is when, and to what extent, retailers choose to pass these increased costs on at their forecourts," spokesman Simon

Williams said.

The Organization of Petroleum Exporting Countries and its allies have announced a drop, the largest since the pandemic's peak in 2020. It happens despite calls from the US and others to pump more after oil prices soared this spring as a result of supply disruptions caused by the conflict in Ukraine. In a statement, the White House said US President Joe Biden was "disappointed by the short-sighted decision."

Aluminium spikes 7% on LME

Aluminium prices on the London Metal Exchange (LME) shot up, following a Bloomberg story that the United States was mulling an embargo on Russian aluminium in reaction to the situation in Ukraine. After temporarily jumping 7.3% to $2,400 per tonne, benchmark aluminium was up 3.3% at $2,309 per tonne.

According to Bloomberg, which cited anonymous sources familiar with the decision-making, the Biden administration is considering increasing tariffs on Russian aluminium to levels so severe they would essentially ban Russian aluminium maker Rusal. The company is the largest producer of aluminium outside of China and it is expected to meet global demand of 70 million tonnes or 6% of global production. Price increases would almost probably result from a ban.

After Rusal was sanctioned by the US Treasury Department and its metal was banned by the LME in 2018, aluminium prices increased 30% over the course of a few days. The LME launched a discussion paper on the possibility of banning Russian aluminium, nickel, lead, tin, iron and copper from being traded and stored in its system.

Green Initiative

Saudi commits $2.5B for Green ME Initiative

Mohammed bin Salman, the Crown Prince and Prime Minister of Saudi Arabia, declared that his country would contribute $2.5 billion to the Middle East Green Initiative over the following ten years. He also stated that Saudi Arabia aims to have 50% of its power consumption dependent on renewable sources by 2030 at the second Green Middle East Initiative meeting, which was hosted in the Egyptian resort of Sharm el-Sheikh alongside the COP 27 conference.

He further stated that the Public Investment Fund (PIF), the Kingdom's sovereign wealth fund, wants to achieve zero neutrality by 2050. The Saudi Crown Prince and Egyptian President Abdel

Fattah al-Sisi are serving as cochairmen of this year's Middle East Green Initiative summit.

The Saudi Crown Prince declared that the Kingdom will establish one of the biggest Carbon Capture, Usage and Storage (CCUS) hubs in the world as part of Saudi Arabia's national emission reduction targets and the implementation of the Circular Carbon Economy concept. By 2035, this will capture 44 million tonnes of CO2e, or 15% of the Kingdom's current NDC. Additionally, planting 50 billion trees around the region is the Kingdom's second MGI target. According to state news agency SPA, this is the largest-scale project in Saudi.

Japan eyes on construction bonds

In an effort to increase defence spending, the Japanese government, which has previously stated that it does not want to issue new debt, intends to use construction bonds to create facilities for the Self-Defense Force, according to a report by the Kyodo news agency.

According to Kyodo, which cited an unnamed source engaged in the process, the government would set aside nearly 1.6 trillion yen ($11.61 billion) for construction expenditures by the fiscal year that ends in March 2028. The issue of debt to pay for military expenditures was described by Prime Minister Fumio Kishida as "impossible as a responsible option for the future." Shunichi Suzuki, the finance minister, confirmed that he was aware of the media report and added that no decision had been made.

"We are in the middle of a decisionmaking process. At this moment, the government has not reached a conclusion. In developing defence capabilities stably for the future, it's difficult to consider government bonds as stable funding sources," he said.

Kishida has instructed his administration to set aside 43 trillion yen for defence.