Crude

Frontrunning: May 26

  • Trump's first G7 expected to be 'challenging' (Reuters); Trump Saves Worst for Last on Foreign Trip (BBG)
  • Trump Blasts German Carmakers' U.S. Sales and Threatens Barriers (BBG)
  • Trump directly scolds NATO allies, says they owe 'massive' sums (Reuters)
  • Trump Likely to Maintain Obama’s Russia Sanctions (WSJ)
  • Juncker says Trump was not aggressive on German trade surplus (Reuters)

Global Rally Fizzles After "OPEC Shock" In "Slow Risk-Off Session"

S&P futures were fractionally lower from yesterday's record high as European stocks declined and Asian stocks were mixed, pressured by yesterday's 5% plunge in crude after OPEC unexpectedly "failed to surprise" markets, and announced the bare minimum supply cut extension that was expected by oil traders, who in turn puked long positions.

"Sell The News" - WTI Tumbles Below $50 After OPEC Disappointment

Confident anchors across the media have been proudly proclaiming the rise above $50 as proof that the oil market is heading toward equilibrium again and OPEC's production cut deal extension will be awesome... except the market seems to be disappointed as it's clear no other non-OPEC nations will join the agreement (cough US shale cough) and "sell the news" has sent crude back below $50...

What Keeps Bank of America Up At Night

"The last two weeks have further underpinned our belief that the market has had misplaced optimism in the new administration's reform agenda, while we find more and more evidence that suggests the macro environment echoes that of 2014 and 2015."

The 5 Possible Outcomes Of The OPEC Meeting

Even as a consensus has formed on one particular outcome, here are several possible “surprise scenarios” that could come out of the OPEC meeting this week...