OIL: Oil End of Day Summary: Crude Climbs on Xi-Trump Call
Crude has risen today after a Trump-Xi call, with the two sides agreeing to meet for further trade discussions soon. The move higher has offset declines seen yesterday after reports that Saudi Arabia was seeking further large OPEC+ output hikes.
- WTI JUL 25 up 0.9% at 63.42$/bbl
- Trump and Xi held a phone call today, discussing trade related matters. Though no major developments were announced, the two sides agreed that a new round of talks should start as soon as possible.
- US President Donald Trump has told reporters in the Oval Office that he will greenlight new sanctions on Russia if he sees a moment "when we're not going to make a deal and this thing won't stop."
- Russian President Putin told US President Trump that Russia would respond to Ukraine’s attack on its bombers, with prospects of a breakthrough towards a peace agreement looking unlikely.
- Saudi Arabia said it is considering pushing for another 411kb/d in both August and September: Bloomberg.
- Saudi Aramco has decreased the OSP of Arab Light crude by $0.2/bbl on the month for sales to Asia in July, a lower-than-expected reduction.
- Wildfires 10 hectares or larger are within ~10km of ~455k b/d of oil production, down from 462k b/d on Wednesday, according to Alberta Wildfire and Alberta Energy Regulator data.
- Canada’s TMX flows from Westridge Marine Terminal declined to 453k b/d in May, down from 491 kbd in April: Kpler.
- Venezuela’s state-run oil company has signed at least nine new deals with foreign service providers, including two Chinese firms, Bloomberg reports.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US: FED Reverse Repo Operation
RRP usage inches up to $129.858B this afternoon from $124.690B yesterday, total number of counterparties at 34. Usage had fallen to $54.772B last Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.
EURGBP TECHS: Tests Key Support
- RES 4: 0.8781 2.236 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8768 High Nov 20 ‘23
- RES 2: 0.8624/0.8738 High Apr 21/ High Apr 11 and the bull trigger
- RES 1: 0.8557 High Apr 28
- PRICE: 0.8487 @ 16:52 BST May 6
- SUP 1: 0.8467 50-day EMA
- SUP 2: 0.8462 Low May 1
- SUP 3: 0.8415 76.4% retracement of the Mar 28 - Apr 11 rally
- SUP 4: 0.8316 Low Mar 28 and a key support
EURGBP traded lower again Tuesday and a short-term bear cycle remains in play, for now. The next support has been broken at 0.8477, a Fibonacci retracement point, below which the 50-day EMA at 0.8467 has been tested. It is still possible the move down that started Apr 11, is a correction. A clear reversal would open 0.8738, the Apr 11 high and bull trigger. First key resistance is 0.8624, the Apr 21 high.
PIPELINE: Corporate Bond Update: $5B BoA 3Pt Launched
$24.9B Corporate issuance to price Tuesday
- Date $MM Issuer (Priced *, Launch #)
- 05/06 $5B #Bank of America $2.25B 4NC3 +85, $750M 4NC3 SOFR+111, $2B 11NC10 +115
- 05/06 $2.5B #PNC $1.25B 2NC1 +75, $1B 6NC5 +100
- 05/06 $2B #Grupo Nutresa $1B 5Y 8%, $1B 10Y 9%
- 05/06 $2B #Cummins Inc $300M +50, $700M +5Y +80, $1B 10Y +100
- 05/06 $1.75B #Starbucks $750M 3Y +77, $500M 5Y +90, $500M 10Y+110
- 05/06 $1.75B #Standard Chartered $1B 6NC5 +135, $750M 6NC5 SOFR+168
- 05/06 $1.75B #Biogen $400M +5Y +115, $650M 10Y +145, $700M 30Y +165
- 05/06 $1.75B #UBS 11NC10 +128
- 05/06 $1.5B #Deutsche Bank 6NC5 +140
- 05/06 $1B #Dominion Energy 3Y +87.5
- 05/06 $750B #Gold Fields 7Y +175
- 05/06 $650M #American Homes 4 Rent 5Y +117
- 05/06 $500M #Host Hotels & Resorts 7Y +180
- 05/06 $500M #SURA Asset Mgt 7Y +230
- 05/06 $500M *Shinhan Bank 5Y +72
- 05/06 $500M #LYB Int 10Y +187
- 05/06 $500M #Eaton WNG 5Y +65
