Global Market Snapshot: Oil Surges, Money Markets Shift, and Policy Debates Intensify

WTI crude oil prices climbed 1.7% to $67.54, driven by a notable decrease in U.S. stockpiles and disruptions to Iraqi oil production caused by recent drone attacks. This upward movement in energy markets reflects immediate supply concerns. However, the potential for Kurdish oil exports to resume could temper these gains, while Goldman Sachs (GS) has cautioned about rising supply risks despite current global inventory builds.

Barclays (BCS) has issued a significant warning regarding former President Trump's proposed Medicaid cuts, projecting a potential $1 trillion reduction in state funding. This could lead to 11.8 million Americans losing coverage, with states such as Louisiana, California, and Nevada expected to be hit hardest. Hospitals, still recovering from the COVID-19 pandemic, may face devastating service disruptions.

U.S. money-market fund assets have seen a reduction, with the total declining to $7.07 trillion, as reported by the Investment Company Institute (ICI). This shift in money market dynamics indicates potential changes in investor sentiment or liquidity preferences within the broader financial landscape.

Slovak Prime Minister Robert Fico announced that Slovakia will proceed with approving the European Union's 18th sanctions package against Russia on Friday. This development follows previous hesitations from Slovakia regarding the sanctions, which aim to further pressure Moscow.

Senator Elizabeth Warren (D) has formally requested Treasury Secretary Bessent to undertake a comprehensive assessment of the private credit market's size and its potential implications for financial stability. This inquiry underscores increasing regulatory scrutiny on the rapidly expanding private credit sector and its systemic risks.