OPEC announced this week they will gradually bring backup supply (after cutting production for the last 18 months) over the course of the next 12 months from Oct 24. Other oil producers, such as the US, Canada, Brazil, and Guyana, have successfully made up the shortfall in production. Instead of propping the price of Brent up to $100, OPEC has effectively lost market share and sought to call an end to that by ramping up production again. As investors have digested this info we have seen oil prices drop, yesterday it was trading at about $78 per barrel. This has had the expectant knock-on effect across the power complex.
In equities, European stock futures and US equities have advanced as US JOLTs data yesterday came in weaker than expected showing signs of a cooling US labour market (which are seen to increase likelihood of fed rate cut sooner rather than later). In Asia, Indian stocks outperformed after some initial instability and sell off after Modi's government confirmed support to form a coalition government - the first time the BJP have not achieved an outright majority under Modi.
Elsewhere, Bitcoin is trading above $70k and gold is at $2330.7 / oz.
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