December S&P 500 E-Mini futures (ESZ26) are up +0.46%, and December Nasdaq 100 E-Mini futures (NQZ26) are up +0.62% this morning as lower oil prices and bond yields boosted investor sentiment.
The price of WTI crude fell over -2% on Tuesday as immediate supply concerns eased amid rising exports from the Middle East and the release of G-7 emergency reserves. Kuwait said its oil production was running at about 75% of pre-Iran war levels, while Iraq was looking to hire additional vessels to transport its cargoes through the Strait of Hormuz. Meanwhile, Saudi Arabia was pumping 5.8 million barrels a day through its crucial East-West pipeline, according to Energy Minister Prince Abdulaziz bin Salman. Still, traders appeared reluctant to price out more of the geopolitical risk premium because of lingering security risks in the region.
