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OPEC+ scheduled meeting July 1, now postponed to Friday.

  
Analysis, Crude

Reuters conveying a statement from Iraqi Oil Minister Ihsan Abdul Jabbar, to the effect that:

  • the OPEC+ meeting has been postponed until Friday
  • is to enable completion of consultations and discussions, so they work towards agreement
I posted earlier on this delay here:
  • A big Friday coming up – NFP and OPEC+ meeting (they need more time!)

It seems the UAE has alternative proposals to be further discussed, along the lines:

  • UAE wants to increase its production significantly
  • cuts would have to come from Russia and Iraq to accommodate the higher UAE output

A big Friday coming up – NFP and OPEC+ meeting (they need more time!)

  
  Analysis

The US nonfarm payroll report is out on Friday (US time) and that’s not all!

The OPEC+ snowflakes were unable to reach agreement at the scheduled July 1 meeting so its rolling over into another day.
Chatter of what has been happening at the OPEC talks so far (in summary):
  • United Arab Emirates blocked the plan to reduce supply cuts (hence more negotiations needed)
  • the group is floating plans to increase output by 400k barrels / day / month from August to December 2021
We will have to await the conclusion of the meeting Friday. OPEC talks can result in surprise decisions. About the only thing we can say at present is that there appears to be some quite significant disagreement between cartel members, this delay in talks is unusual.
The US nonfarm payroll report is out on Friday (US time) and that's not all!

US stocks close higher. S&P trades to another record close

  
Analysis, US Market

Nasdaq lags and closes marginally higher

The major US indices are closing the day higher with the S&P index leading the way. The S&P index is up for the six consecutive day and closes at a record level.
  • New highs 214 versus new lows of 11
  • Dow closes near session highs
  • Dow up for the third straight day
  • energy outperforms as crude oil reaches multiyear high
  • S&P closes at a new all-time high
  • closes at a record high for the six consecutive day

A snapshot of the closing levels shows

  • S&P index rose 22.44 points or 0.52% at 4319.94
  • NASDAQ index rose 18.42 points or 0.13% at 14522.38
  • Dow industrial average rose 131.02 points or 0.38% at 34633.53
  • Russell 2000+18.8 points or 0.81% at 2329.34

Leading the Dow 30 today include: (more…)

European major indices close the day higher

  
Analysis, Global Indices

German DAX +0.5%

The major European indices are closing the day higher. The provisional closes are showing:

  • German DAX, +0.5%
  • France’s CAC, +0.7%
  • UK’s FTSE 100, plus at 1.2%
  • Spain’s Ibex, +1.1%
  • Italy’s FTSE MIB, +0.7%
in other markets as London/European traders look to exit:
  • Spot gold is trading up $0.60 or 0.03% at $1770.66.
  • Spot silver is down $0.11 or -0.44% at $25.98.
  • WTI crude oil futures are trading at $74.85. That’s up $1.38 or 1.92%
  • bitcoin is trading down $1130 or -3.27% of $33445
In the US debt market, the yields are our higher with the 10 year rising by 3.4 basis points at 1.4781%.
US yields are higher

OPEC+ JMMC proposes to OPEC+ to extend oil supply mgt until end of 2022

  
Analysis, Crude

Headlines from OPEC+ JMMC sources

  • OPEC+ JMMC proposes to OPEC+ to extend oil supply management until end of 2022
  • OPEC+ ministerial committee proposes to OPEC+ to raise oil output by 0.4M BPD a month in August-December. This was congruent with early reports

Crude oil
The price of crude oil reach day high price of $76.20 earlier after breaking above the earlier high at $74.42 and squeezing any shorts ahead of the OPEC+ meeting.

The prices since rotated back to the downside and each day low of $74.59.  As long as the price can remain above the $74.42 level, the bias tilt intraday remains in the favor the buyers.
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