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Saudi Arabia Will Push Oil Prices Towards 3 Digits… But It Won’t Help Them, Via Investing.com

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Saudi Arabia Will Push Oil Prices Towards 3 Digits… But It Won’t Help Them, Via Investing.com
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Investing.com – Goldman Sachs (NYSE: ) has warned its clients that unless Saudi Arabia and Russia ease aggressive supply cuts, record highs could rise to triple digits within the next year.

The Wall Street bank had pegged oil prices higher before Russia and Saudi Arabia announced earlier this week that they would extend output cuts until the end of 2023. For the first time in 10 months. Brent crude oil is the global oil price benchmark and is produced in the North Sea.

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Two upside risks

Goldman Sachs predicts $86 in December and $93 by the end of 2024. But now there are two “downside risks” to its outlook, CNN reported.

First, Goldman Sachs expects Saudi oil supplies to be 500,000 barrels per day lower than previously expected. This alone is expected to add two dollars to the price of a barrel of oil.

Second, Goldman Sachs warned that if OPEC+ cuts continue to be extended, some assumptions about oil production could be wrong.

The bank expected countries to roll back half of the 1.7 million barrels per day cut announced in April in January. Now the bank is offering to extend it for a longer period.

Analysts at the bank explained in a note, as reported by CNN: OPEC+ maintains production cuts and fully implements them until the end of 2024, and Saudi Arabia increases production only gradually. In this scenario, Brent oil prices will rise to $107 a barrel by December 2024, the bank said.

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Raising oil prices too much will not benefit OPEC+

Goldman Sachs emphasized that this was not the bank’s “primary vision” because such a strategy could backfire.

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While higher oil prices will help Saudi Arabia balance its budget and Russia fund its war machine, Goldman Sachs says triple-digit oil prices will prompt US shale producers to increase their supply at lower prices. Additionally, higher prices may lead to increased investment in clean energy.

Another reason OPEC+ doesn’t want $100 oil is the “political significance of US gasoline prices,” according to Goldman Sachs.

US presidents don’t want to see gasoline prices rise, especially before an election.

In response to a question about the Russian and Saudi supply cuts on Wednesday, US national security adviser Jack Sullivan told reporters that President Joe Biden is “focused on trying to do everything in his toolbox to get lower prices for consumers.”

Meanwhile, US Secretary of State Anthony Blinken commented on the announcement by Saudi Arabia and Russia that they have decided to extend oil production cuts for another 3 months until the end of 2023.

Blinken told a press conference from Kiev about the Russian-Saudi decision, “We will watch this matter carefully in the coming days and weeks to see what it actually achieves and what it reflects on the markets. The cut may cause an immediate rise in prices, but this may stabilize soon.”

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Economy

4 new AI tools you can use to edit photos on Instagram

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4 new AI tools you can use to edit photos on Instagram
As part of Meta’s Connect conference last Wednesday, Mark Zuckerberg revealed several creative AI features that will be useful for some content creators and influencers. For example, users will be able to use Meta’s AI technology, revealed as Emu. In the Instagram app.


Zuckerberg said Meta will begin rolling out these photo-editing and generative AI tools to Instagram “in about a month,” and Meta’s Emu technology will take seconds to generate images, Zuckerberg said during the Connect conference.


In addition to photo editing tools, Meta is already releasing AI stickers that use Emu and Llama 2 technology, and advanced applications of AI will soon appear in Meta apps in the form of chatbots or AI-powered assistants. Meta will begin testing the beta feature immediately.


Here’s a full rundown of the new AI features Meta brings to Instagram:


– New photo editing tools in the Instagram app:


Like many apps and generative AI filters that are ubiquitous on TikTok, Instagram is adopting its own generative AI tools. Users can also edit photos by “re-styling”, which changes the artistic style of the photo, similar to altering the photo. A watercolor, or “background,” that allows users to replace the background of the image with an illustration.


Any image edited using these tools “represents the use of artificial intelligence,” Mitta wrote in a blog post.


– AI-generated stickers for use in direct messages:


Instead of sticking with Instagram’s existing preloaded stickers or emojis, Meta is rolling out a new tool that lets users create unique stickers using AI. Meta wrote in his blog post that the feature will be rolling out to “select English users next month.”

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AI stickers are also available in Instagram features like Live Messages and Stories, and other apps like WhatsApp, Messenger and Facebook’s Stories feature.


– Interactive AI bots – or characters:


In addition to its general AI assistant called “Meta AI,” Meta is working with celebrities and influencers to develop 28 AI chatbots. The first cast uses celebrities and popular influencers like Tom Brady and Kendall Jenner. MrBeast, LaurDIY, and Charli D. Amelio and the AI ​​characters will have their own profiles on Instagram and Facebook.



– Creators will be able to build their own robots in the future:


“We’re building a platform to build AI that can help you do things or have fun,” Zuckerberg said. “The way it works is that people can interact with these AI systems across the entire product universe. .”


Zuckerberg pitched these AI bots as a potential way for creators to “engage” with their communities. The creator of these bots should be “authorized” and “directly controlled,” Meta wrote in a blog post. Already, many startups have released AI tools. Similar applications allow creators to create AI versions such as Afterparty or Render Media.

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Economy

Inflation in the euro zone fell to its lowest level in a year

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Inflation in the euro zone fell to its lowest level in a year

Economic data released today on Friday showed that the euro zone’s core inflation rate fell to its lowest level in nearly a year this month, bolstering expectations that the European Central Bank will keep interest rates on hold at its next meeting to assess. The consequences of an unprecedented campaign to raise interest rates throughout the past.

European statistics agency Eurostat reported today that sales, excluding highly volatile items such as food and energy, fell to 4.5% this September, while analysts polled by Bloomberg News had expected a drop of 4.8%, compared with 5.3%. In the month, in the past.

At the same time, the headline inflation rate eased to 4.3% this month from 5.2% last August, the lowest level in nearly two years and well below expectations, thanks to a fall in energy prices. Accelerating rate of rise in prices of services.

The data released today is a strong indication that core inflation, a key measure for the central bank’s monetary policymakers, is on a downward path following a period of statistical deterioration over the summer months.

Despite the decline, general and core inflation rates have been more than twice the central bank’s target of 2% annually.

At the same time, there is a wide disparity in inflation rates between the euro zone’s twenty member states, with the inflation rate in Germany falling to its lowest level in two years this month, while the rate in Spain rose by more than 3. % again.

The current September consumer price inflation rate showed a new decline, reaching its lowest level in more than a year and a half, with the Italian statistics office saying the inflation rate fell to 5.3 for the current month. % y/y compared to 5.4% last month, while the core inflation rate, excluding highly volatile food and energy prices, fell to 4.6% this month, down from 4.8% last month.

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Economy

Meta unveils new artificial intelligence products

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Meta unveils new artificial intelligence products

Mark Zuckerberg, CEO of MetaPlatforms, has introduced a group of new products powered by artificial intelligence, including smart glasses that can answer questions and broadcast live on Facebook, as well as “bot” programs to create images and an advanced headset for virtual reality. .

Zuckerberg described the products as bridging the virtual and real worlds, and asserted that low-cost or free artificial intelligence in what Meta offered could be integrated into daily routines.

The MetaQuest virtual reality headset is one of the most popular in the burgeoning virtual reality industry, and company executives described it as the best value in the industry, marking the imminent launch of an expensive headset from Apple.

Speaking from the central courtyard at Meta’s sprawling campus in Silicon Valley, Zuckerberg said Meta’s new generation of Ray-Ban smart glasses will launch on October 17 for $299.

The device will have a new assistant from Meta that works with artificial intelligence and will be able to live-stream what the user sees on Facebook and Instagram, a feat compared to the previous generation’s ability to take pictures.

Earlier during the presentation, Zuckerberg said that the latest mixed reality headset (Quest) will start rolling out on October 10.

Zuckerberg’s statements came at the MetaConnect conference, the social media company’s biggest event of the year and the first to be held in person since the start of the Covid pandemic.

It launched the first consumer-oriented generative artificial intelligence products, in which a chatbot (meta AI chatbot) can generate text responses and realistic images.

Zuckerberg emphasized: “It’s not just about answering inquiries. It’s about helping people do things for entertainment and interacting with the people around you.”

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