COMMODITIES
WTI hits 13-week high
West Texas Intermediate (WTI) closed at $122.11 a barrel. The price rise is amid escalating supply concerns despite the high stockpile data released on Wednesday. Both WTI and Brent closed Wednesday at their highest since March 8, which was their highest settlement since 2008. Oil prices are on a strong upward pressure as traders believe that the promised additional output by OPEC+ won't counterbalance the amount of oil previously exported by Russia.
UAE energy minister Suhail al-Mazrouei stated on Wednesday that efforts by the oil cartel to boost output are "not encouraging", acknowledging that the organization was 2.6 million bpd short of its target. Prohibition of oil from Russia by the Western countries has not come with enough suppliers capable to offset the balance, thus supply constraints will continue to persist and oil prices will continue to rise.
STOCKS
European stocks set for negative open
European stocks are expected to open lower this morning ahead of the forthcoming interest rate decision from the European Central Bank due on Thursday. During the meeting, the ECB is expected to confirm its intention to increase interest rates next month.
Traders await May's consumer price index reading which is expected to come in slightly below April's figures and could indicate inflation has reached its peak.
