WS #6150

The dominant signal in this window is the UAE's decision to leave OPEC and OPEC+, effective May 1, 2026. This is corroborated by multiple high-credibility sources (Reuters, Bloomberg, state news agency WAM, and global media outlets). The move is a major blow to OPEC's cohesion and its de facto leader Saudi Arabia, especially amid the Iran war and Strait of Hormuz blockade that have already disrupted Gulf oil exports. The UAE stated it will gradually increase production to 5 million bpd by 2027, signaling a potential flood of supply that could pressure oil prices lower, but the immediate market reaction has been volatile with Brent crude rising above $110/bbl on the news. This development counters the prevailing bullish oil thesis driven by the Hormuz blockade, as it introduces a new source of supply uncertainty. Separately, China is poised to restart exports of jet fuel, diesel, and gasoline, which could alleviate some fuel supply tightness in Asia. The Iran ceasefire narrative shows signs of deterioration, with reports of Iran being in a 'state of collapse' and seeking to reopen the Strait, but no concrete progress. The Tuapse oil refinery fire from Ukrainian drone strikes continues to disrupt Russian refining capacity. On the macro front, the S&P CoreLogic Case-Shiller index showed national home prices rose only 0.7% YoY in February, with more than half of major metros posting declines, signaling a broadening housing slowdown. The ECB consumer inflation expectations survey showed a sharp jump to 4.0% for the next 12 months, adding pressure on the ECB. The FOMC meeting begins today with expectations of a hold. In corporate news, Apple announced CEO Tim Cook's exit with John Ternus as successor, which could signal a strategic shift ahead of Q2 earnings. OpenAI and Microsoft restructured their partnership, ending exclusivity, allowing OpenAI to use other cloud providers. Ryanair's CEO warned of European airline failures if jet fuel prices stay high. General Motors reported strong Q1 earnings, but the broader tech selloff driven by OpenAI's missed targets weighed on sentiment. The FCC is planning to challenge Disney's ABC station licenses, which could be seen as retaliation over Jimmy Kimmel, adding regulatory risk to DIS. JPMorgan's Dimon warned again about credit market downturn risks. US consumer confidence unexpectedly edged up to 92.8, above expectations of 89, providing a slight positive for the macro outlook.