<p><strong>GLOBAL: </strong>Saudi Arabia has announced reductions in its main crude oil prices amid a sudden flood of global oil supply. The price of Arab Light crude next month will be lower by USD 11 per barrel, which is USD 1.50 below the regional benchmark.&nbsp;</p>

<p><strong>Market impact: </strong>Oil prices maintained recent losses as concerns regarding a global supply glut intensified. US equities closed higher amid a Broadcom rally.&nbsp;</p>

<p><strong>Other Middle Eastern oil producers could be forced to match the steep discounts in the near term. </strong>Downward pressure is expected to persist through the second half of 2026.&nbsp;</p>

<p><strong>LOCAL: </strong>Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the economy is resilient enough to handle another 25-basis-point (bp) rate hike.&nbsp;</p>

<p><strong>Market impact: </strong>The peso depreciated as investors positioned ahead of inflation data. The PSEi reclaimed the 6,200 mark on optimism of easing inflation.&nbsp;</p>

<p><strong>Metrobank Research expects two further 25-bp rate hikes this year, </strong>as inflation persists above the BSP’s target range.&nbsp;</p>