A surprise OPEC+ announcement overnight has oil futures up more than 6% to start the day and Treasury yields up 4-9 basis points. The Saudi-led oil cartel announced it would cut oil production by more than 1 million barrels a day, reportedly in response to comments made last week by a US official. Energy secretary Jennifer Granholm said the US would struggle to make significant crude purchases this year to replenish the strategic petroleum reserve (SPR) and that it would take “years” to replenish stockpiles drained during the initial inflation surge in 2021. Labor market data headlines this week’s economic calendar. The JOLTS report for February, which includes updated job openings data, will be released tomorrow, and the March jobs report will be released on Friday. Multiple Fed leaders will be speaking this week, beginning with Fed Governor Lisa Cook later today.
Jason Haley
Chief Investment Officer
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