Oil Eases as OPEC+ Boosts Supply; Focus Shifts to Earnings
Oil edged lower after OPEC+ agreed to a modest output increase for August, while market attention turns to Q2 earnings and the AI rally. Traders have dialed back expectations of a near-term Fed rate hike following softer US jobs data.
Oil prices eased on Monday after OPEC+ confirmed a modest output increase for August, and as crude flows through the Strait of Hormuz remained stable. The decision follows the group's previous agreement to gradually unwind production cuts.
Equity markets entered the second half of the year cautiously. S&P 500 futures held on to last week's gains, with investors shifting their focus to the upcoming Q2 earnings season and the sustainability of the AI-driven rally. Meanwhile, expectations for a near-term Federal Reserve rate hike have diminished after softer-than-expected US jobs data and comments from Kevin Warsh highlighting easing inflation.
Key events this week include US Treasury auctions and the release of the Fed's June meeting minutes. Separately, South Korea launched 24-hour won trading as part of efforts to attract foreign investors ahead of SK Hynix's US listing.
Source: First Squawk