Eurozone Stocks Rise At Open Ahead Of OPEC+ Meeting
Eurozone stock markets opened higher on Thursday as investors await an output decision by major oil-producing nations.
The Frankfurt DAX index was up 0.4 percent at 14,396.71 points while the Paris CAC 40 rose 0.6 percent at 6,455.27 points.
London’s FTSE 100 was shut on Thursday for a long bank holiday weekend to mark Queen Elizabeth II’s Platinum Jubilee.
The OPEC+ group of major oil producers, led by Saudi Arabia and Russia, is expected to continue its policy of modestly increasing production when it meets later on Thursday, days after the EU agreed to ban most Russian crude.
Energy prices have soared since Russia invaded Ukraine on February 24, fuelling a sharp rise in inflation that is prompting central banks to tighten their monetary policies.
Oil prices fell by almost two percent on Thursday Financial Times report that Saudi Arabia was considering a plan to boost output as Russia struggles to meet targets owing to Ukraine war-linked sanctions.
The Wall Street Journal reported on Wednesday that Russia could be removed from the OPEC+ output deal.
The move could allow the Saudis and other nations to raise their output to meet the shortfall created by a European Union ban on most Russian oil.
OPEC+ has so far resisted US pressure to increase production in order to calm the markets.
“Everything rests on the OPEC+ meeting today,” said Jeffrey Halley, analyst at online trading platform OANDA.
“If Russia is sidelined, I mean exempted from its production quotas, with other members stepping up, European markets could find themselves with a decent tailwind today. A business-as-usual outcome is likely to see a disappointing reaction,” he said.