OPEC+ finally reached an agreement last Sunday to gradually increase production until the end of 2022, according to the Financial Times. From August until the end of next year, OPEC+ will add 400k barrels per day each month, extending the supply cuts to December 2022 instead of April. This will mean that an extra 6.8 mn bbl/d will be added to the market by December 2022. The outcome of the long-delayed meeting guarantees more production in the coming months after tight supply led to a hike in prices. The UAE’s production baseline, which was the main point of disagreement, will rise to 3.5 mn barrels per day from about 3.2 mn barrels per day. Saudi Energy Minister Prince Abdulaziz bin Salman said that the pact demonstrates the strength of the OPEC+ alliance.

The agreement hasn’t done much to depress prices: Brent fell almost 7% the day after the agreement was reported to below USD 68/bbl for the first time since late May. Since then, the price has rebounded back above the pre-agreement level to USD 74.10.

In other financial news worth knowing about:

• US regulators step up crypto crackdown: Crypto lending platform BlockFi has received cease and desist notices from regulators in three US states that allege the firm has sold unregistered securities to its customers. (FT).
• Economic uncertainty in China: Despite steady growth in the second quarter, China’s National Bureau of Statistics has warned that the economic recovery rebound is “unbalanced” as “the coronavirus continues to mutate globally and external instabilities and uncertainties abound.” In response, Beijing is expected to loosen its fiscal policy to spur business confidence and raise consumer spending. (FT)

THE CLOSING BELL-

The EGX30 rose 0.8% at last Sunday’s close on turnover of EGP 1.5 bn (19.2% above the 90-day average). Local investors were net buyers. The index is down 1.8% YTD.

In the green: AMOC (+6.2%), Pioneers Holding (+2.8%) and Ibnsina Pharma (+2.8%).

In the red: Export Development Bank (-3.4%), Fawry (-1.9%) and GB Auto (-1.7%).