U.S. Averages Wobble After 8 OPEC+ Members Announced Production Cuts

Barry Adams
03 Apr, 2023
New York City

Stock futures on Wall Street traded mixed with a downward bias after eight member nations linked to OPEC+ announced a surprise production cut. 

Eight OPEC+ producer nations - led by Saudi Arabia, UAE and Kuwait - announced to remove 1.16 million barrels per day starting May until the end of the year. 

The product cut announced on Sunday was designed to separate the alliance from international pressure. 

Previously Russia had announced its production cut target of 500,000 barrels per day starting this month, increasing the total production cut by 1.66 million barrels a day. 

The Joint Ministerial Monitoring Committee's meeting on Monday acknowledged the voluntary production cuts, but did not announce its own policy change.   

 

U.S. Indexes & Yields 

The S&P 500 index fell 0.4% to 4,110.38 and the Nasdaq Composite index decreased 0.2% to 12,171.63.  

The yield on 2-year Treasury notes edged higher to 4.1%, 10-year Treasury notes inched up 3 basis points to 3.51% and the 30-year Treasury bonds was nearly unchanged at 3.7%. 

Crude oil jumped $3.91 to $79.55 a barrel and natural gas futures declined 13 cents to $2.07 a thermal unit. 

 

U.S. Movers 

Tesla Inc declined 1.7% to $204.0 after the electric vehicle maker reported quarterly production data. 

Tesla said in the first quarter of 2023 vehicle production increased 5% to 440,808 from 422,875 in the previous year. 

The production of model 3/Y advanced 5% to 421,375 from 412,180 and model 5/X jumped 10% to 19,437 from 10.695 a year ago. 

Tesla's production in the December quarter increased 4% to 439,701 from 405,278 a year ago. 

McDonald's Corp increased 0.7% to $279.61 and a report suggested that the company temporarily closed its headquarter offices ahead of layoff announcements.