OPEC+ Output Cuts Aren’t Advisable Right Now, White House Says, UAE Ruler Names Son Crown Prince, Elevates Other Royals, Kuwait Wealth Fund Sells €1.4 Billion of Mercedes Shares & more.

OPEC+ Output Cuts Aren’t Advisable Right Now, White House Says

Key takeaways:

1. The White House does not think that oil production cuts are advisable at this moment.

2. The administration will work with producers and consumers to ensure energy markets support economic growth and lower prices for American consumers.

3. US retail gasoline prices have declined by more than $1.50 per gallon since a peak last summer.

Counter arguments:

1. OPEC+ believes that the production cuts are necessary to stabilize the market.

2. Some argue that the production cuts will lead to higher oil prices.

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UAE Ruler Names Son Crown Prince, Elevates Other Royals

Key Takeaways

1. The ruler of the UAE has named his son crown prince, positioning him as the next in line for leadership in the major OPEC oil exporter.

2. The Al Nahyan ruling family is among the world’s richest, with a net worth of at least $300 billion, thanks to their complex holdings and UAE’s vast oil reserves.

3. The shift to a younger leader and the promotion of powerful siblings is a careful division of power and a move towards greater state centralization within the Gulf monarchies.

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Bahrain’s Economic Growth Hits Fastest in Almost a Decade

Key takeaways:

1. Bahrain’s economy grew at the fastest pace since 2013 last year.

2. Non-oil growth was the main driver of economic output.

3. Bahrain still relies heavily on energy prices to help balance the budget.

Counter arguments:

1. The oil economy shrunk 1.4% last year.

2. Bahrain pushed back its target of balancing the budget by two years to 2024.

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Kuwait Wealth Fund Sells €1.4 Billion of Mercedes Shares

Key takeaways:

1. The KIA will own around 53 million shares after the share placement of about 20 million shares.

2. Mercedes shares have surged 50% from July to March and have quadrupled since their March 2020 pandemic low.

3. Chief Executive Officer Ola Källenius has focused the automaker on more profitable segments and pared back its offerings of entry-level models.

Counter arguments:

1. Mercedes has cut the price of flagship electric models in China.

2. The European and US economies are weakening.

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Dubai’s Latest Boom Is Pricing Out the Expats It Once Coveted

Key takeaways:

1. Rental prices for villas and apartments have increased significantly in the past year.

2. The cost of living in Dubai is becoming increasingly expensive, making it feel like a playground for the super-rich.

3. Many residents are leaving Dubai due to rising living costs and looking for opportunities in other markets.

Counter arguments:

1. Inflation in Dubai is still lower than in London or New York.

2. Many of the costs associated with living in Dubai are fixed, and many residents send money home to their families rather than spend it.

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