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WTI, Brent Surge as OPEC+ Opt to Drip Feed

COMMODITIES
  • Thursday's OPEC+ meeting took market focus, with oil prepped for an uptick in output of between 500k - 1mln bpd as soon as August, but the group opted to adopt a far more gradual approach, with 400,000bpd hitting the market in August, followed by a far more gradual return to capacity.
  • This helped support oil benchmarks, with WTI and Brent crude futures rallying over 2% apiece and hitting new cycle highs in the process.
  • The WTI-Brent contracted sharply, with the group's decision to commit to an eventual restoration of as much as 2mln bpd of lost output contrasting with less flexible shale production / US supply.
  • Focus Friday turns to the June jobs report, with markets expecting an improvement in jobs added to 720k.

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