Highlights

The stock market remained closed yesterday in observance of Labor Day, and perhaps that was a fortunate break, considering that September historically tends to be the most challenging month for US stocks. Despite a turbulent August, the stock market has experienced remarkable gains this year, primarily attributed to the surging success of companies like Nvidia and the broader AI industry boom.

Stock Spotlight

On Tuesday, Saudi Arabia's efforts to push oil prices to $90 a barrel materialized as the kingdom, in coordination with its ally Russia, announced the extension of its one-million-barrel-per-day production cut, initially introduced in July, until December. In addition to this, Russia pledged an extra 300,000 barrels per day.

The unexpected decision to sustain a total daily production reduction of 1.3 million barrels until year-end, rather than opting for a month-to-month approach as anticipated by most traders, successfully achieved its intended outcome of lifting market sentiment.

Brent crude, traded in London, closed at $90.04 per barrel, marking a $1.04 increase, equivalent to a 1.2% rise on the day. It reached a session high of $91.14, its highest level since August 2022. Last week, Brent recorded a 4.8% increase, following a 2.3% decline over the preceding two weeks. Prior to these fluctuations, the global benchmark experienced a seven-week winning streak, accumulating an overall gain of 18%.

West Texas Intermediate (WTI) crude, traded in New York, settled at $86.69 per barrel, representing a $1.14 increase or a 1.3% gain, with a peak at $88.03, the highest in ten months. This extended the 7.2% rise witnessed in the U.S. crude benchmark during the previous week. Before this surge, WTI had faced a 4% combined decline over two weeks, attributed to concerns about China's slowing economy, a top oil importer. Nonetheless, prior to these fluctuations, WTI had advanced by 20% over a seven-week period.

Craig Erlam, an analyst at the online trading platform OANDA, commented on the week's initial sluggishness in oil prices, emphasizing that momentum continued to favor the ongoing rally, even though Brent and WTI experienced lackluster pricing earlier on Tuesday before market enthusiasm was stirred by the production cuts.

Sustainable News

Singapore is in the process of expanding a pilot initiative geared towards using electricity to extract carbon dioxide (CO2) from seawater, with the aim of enhancing the ocean's capacity to absorb CO2 emissions. Spearheaded by the Public Utilities Board (PUB), the current project, employing technology developed by the U.S. company Equatic, is successfully extracting 100 kilograms of CO2 daily.

PUB is actively pursuing funding by year-end to construct a demonstration facility capable of processing 10 tons of CO2 daily, with plans for further expansion. This endeavour aligns with Singapore's commitment to reducing its carbon emissions, exemplified by its goal of achieving net-zero emissions by 2050.

Recognizing the significance of removing CO2 from the atmosphere in conjunction with emission reduction measures, the Intergovernmental Panel on Climate Change (IPCC) underscores the importance of such endeavours in mitigating temperature increases.

Moreover, this project offers the potential to generate carbon credits that can be sold to companies seeking to offset their emissions. Additionally, the produced hydrogen can serve as a versatile fuel source or find applications in various industries.

It's important to note that this initiative is one of several pilot Ocean-Based Carbon Dioxide Removal (OCDR) projects worldwide. These projects employ various techniques, including stimulating seaweed growth by bringing nutrient-rich deep-sea water to the surface and addressing ocean acidification to bolster CO2 absorption. Nevertheless, experts caution that the ecological impacts of these technologies remain uncertain. Over 200 scientists have emphasized in an open letter the need to prioritize OCDR research not only to maximize its potential benefits but also to proactively address potential risks.

Quote Of The Day

“Corporate culture matters. How management chooses to treat its people impacts everything – for better or for worse.”

– Simon Sinek, American author and inspirational speaker