💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Oil Prices Mixed As Traders Digest Details Of OPEC's Output Deal

Published 06/25/2018, 06:22 AM
© Reuters.  Oil prices mixed
LCO
-
CL
-

Investing.com - Oil prices were mixed on Monday, as energy investors continued to react to last week's decision by major producers to start pumping more crude to compensate for losses in global production.

International benchmark Brent futures were down $1.07, or around 1.4%, at $74.25 a barrel by 6:20AM ET (1020GMT), after Friday's 3.4% jump.

But U.S. crude futures on the New York Mercantile Exchange were up 14 cents, or 0.2%, at $68.72 after its own 4.6% pop Friday.

Both had their best day since late 2016 on Friday, after OPEC and non-OPEC producers agreed on a modest increase in production from next month, without announcing a clear target for the output increase.

In a statement following its meeting in Vienna, OPEC said that it would go back to 100% compliance with previously agreed output cuts but gave no concrete figures, making it difficult to understand how much more it will pump.

Saudi Arabia said the move would translate into a nominal output rise of around 1 million barrels per day (bpd).

OPEC and non-OPEC producers have been curbing output by about 1.8 million bpd since January 2017 to prop up oil prices and reduce high global oil stocks.

Meanwhile, a slight drop in domestic drilling activity supported the U.S. benchmark.

U.S. energy companies last week cut one oil rig, the first reduction in 12 weeks, lowering the total rig count to 862, Baker Hughes said in its closely followed report on Friday.

That put the rig count on track for its smallest monthly gain since declining by two rigs in March, with just three rigs added so far in June, although the overall level remains just one rig short of the March 2015 high from the previous week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.