In oil markets, Brent oil prices dropped by the most in three months and tempered last week’s rally. The movement seemed to be supported by media leaks signaling that OPEC+ will hike production again in November (OPEC+ members are scheduled to meet on October 5).
In the central banking sphere, ECB’s Lane described the inflation outlook as “reasonably benign”. St. Louis Fed’s Alberto Musalem said he is “open minded to […] reductions in interest rates”, while pointing the “need to tread cautiously”. NY Fed’s John Williams signaled a “re-balancing of the risks”, with inflation risks coming down and those for employment moving up.
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