EBC Markets Briefing | Oil prices jumped; IBM shares up more than 12%

Oil prices climbed on Friday on the uncertain prospects of a breakthrough in US-Iran peace talks, with the two sides still at loggerheads on Tehran's uranium stockpile and controls on the Strait of Hormuz.

Iran's Supreme Leader Ayatollah Mojtaba Khamenei issued a directive that near-weapons-grade uranium in the country should not be sent abroad, Reuters reported.

Oil markets could soon enter a "red zone" in July or August as global stocks deplete and as demand picks up during the summer travel season, the head of the IEA Fatih Birol warned.

He said it will likely take "a lot of time" for Middle East oil production and refining to return to pre-war levels and the IEA stands "ready to act" to coordinate further strategic oil reserve releases if necessary.

Seven leading OPEC+ countries will likely agree to a modest hike to July output when they meet on 7 June, four sources said, though delivery for several remains disrupted by the Iran war.

The UAE has built nearly 50% of a second pipeline that will bypass the strait, said ADNOC. Some of the country's oil exports has been redirected through an existing pipeline to Fujairah.

Brent crude eased to 50 SMA which could act as support. The volume bars indicated the pullback was driven by profit-taking rather than institutional liquidation. Therefore, a rally towards $105 is likely.

Asset recap

As of market close on 21 May, among EBC major products, IBM shares led gains after Washington unveiled a major quantum computing initiative that places the firm at the centre of long-term technology strategy.

Intuit has laid off 17%of its full-time workforce as it plans to streamline the business and focus on key areas, including AI. Investors are shocked despite of raised full-year revenue guidance.

Foreign investors have unloaded more than $74 billion of South Korean shares so far this year, testing a rally that lifted the index to record territory near 8,000 after a roughly 70% gain.

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