- WTI crude oil below $70/barrel on supply concerns. U.S. benchmark crude prices were down nearly 3% this morning as traders digested reports that OPEC, Russia, and others are in discussions to potentially increase production by up to 1 million barrels/day and realign the group’s production with its original accord that intended to reduce global supply to prop up prices; current production reflects ~150% compliance. The news comes on the heels of an announcement from the International Energy Agency last week that the supply glut is gone and the run-up in oil prices is starting to impact consumer demand, as well as political pressure from the U.S. stemming from a tweet from President Trump, who suggested that “Oil prices are artificially very high! No good and will not be accepted!”
- Summit cancelled. The White House released a letter from President Trump to North Korean leader Kim Jong-un, announcing the cancellation of a planned summit between the two countries originally scheduled for June 12. Our take is this isn’t the end of the road, as there is still a chance this meeting could happen. In fact, today North Korea said it is open to the opportunity, and President Trump was receptive.
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