Saudi Arabia will make a further voluntary oil production cut in July, by 1 million barrels/day. The drop in output is only for one month, but the co
Saudi
Arabia will make a further voluntary oil production cut in July, by 1
million barrels/day. The drop in output is only for one month, but
the country’s energy minister said it could be extended. OPEC+ cuts
to output already made that were to last until the end of this year
were extended until the end of 2024. There is more detail in the post
above (bolded).
Once
futures markets opened on Sunday evening, US Eastern time, oil prices
popped higher with a gap. The gap has since been (almost) filled.
Ranges
across major FX were much more subdued. EUR, JPY, GBP, CHF all fell
small against the USD. While CAD had risen a little its since fallen back. AUD and NZD and
very little net changed on the day after minor moves.
News
flow apart from oil was light. The data focus were the China
(services and composite) PMIs from Caixin/S&P Global for May.
These came in strong, see bullets above. Of note also was the
privately surveyed Australian inflation data for May, which leapt
from +0.2% m/m in April to +0.9% m/m in May. This will raise eyebrows
at the Reserve Bank of Australia, which meets tomorrow. The consensus
expectation is for an on hold decision but a cash rate hike cannot be
ruled out at this very much ‘live’ meeting.
Asian
equity markets:
-
Japan’s
Nikkei 225 +1.6% -
China’s
Shanghai Composite +0.3% -
Hong
Kong’s Hang Seng +0.5% -
South
Korea’s KOSPI +0.4% -
Australia’s
S&P/ASX 200 +1.1%
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