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Oil Futures Surge, Then Decline: Wall Street Breakfast Podcast

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Oil prices briefly reach a 10-month high following Saudi Arabia and Russia’s decision to extend voluntary production cuts. However, prices quickly slide down amid other market news and fluctuations.

Saudi Arabia and Russia make a joint announcement to continue their voluntary oil production cuts until the end of the year.

As a result, there is a temporary surge in crude oil prices, with Nymex futures for October reaching over $87 a barrel and Brent crude futures for October climbing to above $90 a barrel. At present, those prices have adjusted to nearly $86 and less than $90, respectively.

The combined output cuts amount to 1.3 million barrels per day, with Saudi Arabia’s reduction contributing more than a third of the total cuts made by OPEC and its allies.

Lower global supplies have driven crude prices up by approximately 30% since mid-June.

Enbridge announces its acquisition of three utilities from Dominion Energy for a total of $14 billion. This deal positions Enbridge to become the largest natural-gas utility in North America.

Kroger engages in talks with C&S Wholesalers about selling grocery stores as part of its efforts to gain antitrust approval for its planned acquisition of Albertsons.

The Federal Trade Commission (FTC) is expected to file an antitrust lawsuit against Amazon later this month, according to reports.

Syra, a healthcare services provider, proposes downsizing its IPO to $6 million.

Zoom’s CEO suggests that the FTC should investigate Teams’ bundling practices in the United States.

On the economic calendar today, Boston Federal Reserve Bank President Susan Collins will deliver a speech on the economy and policy making and participate in a question-and-answer session with the New England Council.

The U.S. stock market ended lower on Tuesday, with the Nasdaq slipping 0.08%, the S&P 500 retreating 0.42%, and the Dow declining 0.56%.

Treasury yields saw an increase, with the 10-year yield rising 6 basis points to 4.27% and the 2-year yield rising 5 basis points to 4.96%.

As of 6 am, Dow, S&P, and Nasdaq futures are in negative territory. Crude oil is down 0.6% at over $86 a barrel, and Bitcoin is slightly lower at over $25,000.

In global markets, the FTSE 100 is down 0.7% and the DAX is down 0.3%.

The biggest premarket stock mover is AeroVironment, up over 15% after announcing an improved profit outlook.

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