In commodities today, OPEC won’t cut production and the Chinese government forecasts more declines for steel production in 2016.
OPEC Won’t Cut Production
The Organization of Petroleum Exporting Countries will likely decide to roll over oil production at its meeting on Friday, sources said, with Saudi Arabia telling other members it has no intention of floating a proposal to curb output.
Three OPEC delegates and sources said the group would maintain output without changing the current ceiling of 30 million barrels per day (bpd), sticking with its plan to defend market share rather than shore up prices at near seven-year lows.
Chinese Steel Output Still Falling
China’s crude steel output will fall for a second straight year in 2016, the Metallurgical Industry Planning and Research Institute (MPI) said in its annual report.
The Chinese government report forecast production would fall 3.1% to 781 million metric tons next year, as a cooling economy hurts demand in the world’s top producer. This underscores bleak outlook for the steel and iron ore sectors.