US President Biden was hoping that his diplomatic efforts over the past few months would guarantee that the OPEC+ members would agree to increase the output of oil in September. And they did. But by 100,000 barrels per day, which accounts for roughly 0.1% of the global demand. This marks one of the lowest oil production increases we’ve seen in history. A statement from the meeting suggests that the group agreed that “the severely limited availability of excess capacity necessitates utilizing it with great caution in response to severe supply disruptions.”
The group, which consists of 23 member states, decided that they would divide the increased production amongst themselves. However, only Saudi Arabia and the United Arab Emirates are capable of boosting production which means that it is unlikely that the group will be able to deliver the quantity they promised.
Brent crude oil futures rose by roughly $3 per barrel following the OPEC+ decision on Wednesday, trading close to $102 per barrel.
It's been a rough couple of days for the crypto markets. Not just because it appears that a bullish sentiment has nestled in, but because one of the top 10 cryptocurrencies, Solana (SOL) is under attack. Almost 8,000 digital wallets have been emptied since Wednesday morning, in an attack that has expropriated over $5.2 million in coins. According to analytics, both Solana coin (SOL) and USD Coin (USDC) have been taken. The breach comes one day after the attack on the Nomad crypto bridge that wiped out $200 million.
Investigations are still taking place but some reports are suggesting that the attack affected multiple wallets including Phantom, Slope, and TrustWallet, across a wide variety of platforms. The common denominator appears to be that they are all ‘hot’ wallets. In other words, they are always connected to the internet. Users are advised to move any funds they have to hardware wallets since it seems that the breach hasn't penetrated them. Solana’s token had initially shed approximately 8%, but appears to be trading higher this morning.
Wednesday saw the US stock market soar on positive economic data and earnings reports that exceed expectations. All major US indices jumped with the S&P 500 climbing 1.56% to 4,155.12, Dow Jones Industrial Average rose 1.28% to 2,812.00, and Nasdaq 100 was up by 2.59% at 12,668.16.
Starbucks, CVS, and Moderna all released their quarterly earnings yesterday and all of them beat market expectations, adding to the celebratory mood of the markets. Starbucks (SBUX) shares rose 4.3% while CVS gained 6.2%.
The ISM Services PMI, released on Wednesday, showed an increase to 56.7% from June’s 55.3%. This, along with the ongoing hawkish tone from the Federal Reserve, and better-than-expected Q2 earnings renewed investor confidence. Traders will now turn their attention to the NFP report coming out tomorrow.
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