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The Week in Business: oil production cuts

    An unexpected move by Saudi Arabia, Russia and other members of OPEC Plus to cut oil production by more than 1.2 million barrels per day, or more than 1 percent of the world’s supply, sent oil prices the shooting high. Last Sunday night, when energy markets opened, both US and global oil benchmark prices rose 7 percent. The decision surprised everyone, as in the days leading up to the announcement, officials said they had no plans to change their policies. There are a few possible factors behind the cuts: Both Russia and Saudi Arabia are struggling to keep up with production, according to recent reports. And OPEC Plus could be responding to the darkening economic outlook, worsened by several bank failures. OPEC Plus’ changes to oil production may ultimately have a limited effect. Yet oil prices have fallen much lower than a year ago, in the immediate aftermath of Russia’s invasion of Ukraine.

    Employers added 236,000 jobs in March, about what analysts had expected. Recent job data had blown past forecasts, showing the Federal Reserve that the path to cooling the economy would be a tortuous one. That point was also highlighted in last week’s jobs report: despite the steep decline in January and February, the March jobs data still show a healthy growth rate. But it is clear that the strength of the labor market is fading. Job postings fell sharply in February and initial claims for unemployment insurance rose, according to data released Tuesday. The March employment data was collected before the collapse of two medium-sized banks, which could further slow the economy.

    Last week, the newsletter platform Substack unveiled Substack Notes, a new feature that bears a striking resemblance to Twitter that allows users to share links, images, and whatever else they want. In a quick rebuke, Twitter CEO Elon Musk appeared to block all links to Substack on Friday. The move is part of Mr Musk’s effort to shut out his competition by restricting the use of external links on his platform. It’s also another example of how the experience of being on Twitter can change from day to day, or even hour to hour, just as many of the changes Musk has made since buying Twitter have been largely cosmetic. For example, Mr. Musk’s changes to the platform’s algorithm have affected what posts users see in their feeds on a daily basis. And users with blue checks — which historically served as identity verification for politicians, celebrities, and other public figures and organizations, but can now be purchased by any user — are still waiting to see if their badges disappear en masse if they don’t pay. Mr. Musk had said last week that would happen, but it hasn’t happened yet for most users.

    With tax day fast approaching – have you filed yet, reader? — the Internal Revenue Service is transforming the way Americans pay their taxes. On Thursday, the agency unveiled an $80 billion plan that includes transforming itself into a “digital-first” tax collector that will allow Americans to file directly with the federal government for free. That aspect of the proposed revision is one of the most controversial, meeting resistance from both the tax preparation industry and Republicans in Congress, many of whom oppose any attempt to support the IRS. tax evaders. The Biden administration wants to reduce the country’s $7 trillion in uncollected tax revenue and use the money to fund initiatives such as fighting climate change and driving down prescription drug prices.