Afternoon Coffee: GDP Rises, Oil Production and Inventories Fall

Afternoon Coffee

The US gross domestic product increased at a 2.3% annual rate from April to June, thanks in large part to more consumers making large purchases on items such as cars. Overall, consumer spending rose 2.9% during the second quarter of the year.

Oil prices were relatively unchanged today after the US Energy Information Administration reported oil production fell by 145,000 barrels a day, marking the largest one-week drop since October 2013. Crude oil inventories were also down 4.2 million barrels last week.

Due to lower oil prices, oil company Royal Dutch Shell said it will cut 6,500 jobs as part of an overall $4 billion cost-cutting measure. Shell also said it would be engaging in fewer oil exploration projects.

Alibaba Group is making a $1 billion investment into it cloud computing unit Aliyun. Alibaba Group CEO Daniel Zhang said this investment is “just the beginning” of its focus on gaining a larger segment of the cloud computing market.

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