Crude oil prices started trading with a gain this week on hopes of a rate cut, bouncing back after posting a second consecutive weekly loss on Friday. The biggest news to start the week however is President Joe Biden’s announcement that he will end his bid for a second term. “Today I want to offer my full support and endorsement for Kamala to be the nominee of our party this year. Democrats — it’s time to come together and beat Trump. Let’s do this,” Biden said on X.
'Since the June FOMC meeting, inflation and labour market data have signalled that disinflation and labour market rebalancing are in place, which we expect will allow the Fed to begin its interest rate cutting cycle in September,' ANZ analysts said, as quoted by Reuters. Wildfires in Alberta have also helped oil move higher today, with close to 350,000 bpd in production capacity at risk, according to the Alberta Energy Regulator and Alberta Wildfire, as cited by Bloomberg.