You are here: Home » Reuters » News
Business Standard

U.S. crude futures extend gains on production cut deal

Reuters  |  SINGAPORE 

By Roslan Khasawneh

(Reuters) - prices extended gains early on Friday as producer cartel OPEC and agreed to rein in a oversupply in crude on Wednesday with analysts now focusing their attention on implementation of the deal.

"It looks achievable on the face of it, provided the parties to the latest production cut deal stick to their pledges, which has historically been somewhat of a sticking point," ANZ bank said on Friday.

Still, traders said the market was optimistic about Wednesday's historic OPEC-deal to reduce output and help bring the market back into balance.

"This is positive news that will make a sustainable difference to the market over the coming months," said Ric Spooner, chief market strategist at CMC Markets adding that it wouldn't be surprising to see this momentum continue.

U.S. West Texas Intermediate (WTI) crude futures were at $51.10 per barrel by 0037 GMT, up 5 cents from their last settlement.

Traders said price developments in crude futures over the coming days would help reflect the market's optimism of the deal.

"WTI has arrived at the peaks from the middle of last year and again in October," Spooner said, which will be a test for the market that may give some insight into how positive traders view this week's agreement.

The Organization of the Petroleum Exporting Countries (OPEC)agreed on Wednesday its first output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output. The deal also included the group's first coordinated action with non-OPEC member in 15 years.

(Reporting by Roslan Khasawneh; Editing by Michael Perry)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

U.S. crude futures extend gains on production cut deal

SINGAPORE (Reuters) - Oil prices extended gains early on Friday as producer cartel OPEC and Russia agreed to rein in a global oversupply in crude on Wednesday with analysts now focusing their attention on implementation of the deal.

By Roslan Khasawneh

(Reuters) - prices extended gains early on Friday as producer cartel OPEC and agreed to rein in a oversupply in crude on Wednesday with analysts now focusing their attention on implementation of the deal.

"It looks achievable on the face of it, provided the parties to the latest production cut deal stick to their pledges, which has historically been somewhat of a sticking point," ANZ bank said on Friday.

Still, traders said the market was optimistic about Wednesday's historic OPEC-deal to reduce output and help bring the market back into balance.

"This is positive news that will make a sustainable difference to the market over the coming months," said Ric Spooner, chief market strategist at CMC Markets adding that it wouldn't be surprising to see this momentum continue.

U.S. West Texas Intermediate (WTI) crude futures were at $51.10 per barrel by 0037 GMT, up 5 cents from their last settlement.

Traders said price developments in crude futures over the coming days would help reflect the market's optimism of the deal.

"WTI has arrived at the peaks from the middle of last year and again in October," Spooner said, which will be a test for the market that may give some insight into how positive traders view this week's agreement.

The Organization of the Petroleum Exporting Countries (OPEC)agreed on Wednesday its first output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output. The deal also included the group's first coordinated action with non-OPEC member in 15 years.

(Reporting by Roslan Khasawneh; Editing by Michael Perry)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

U.S. crude futures extend gains on production cut deal

By Roslan Khasawneh

(Reuters) - prices extended gains early on Friday as producer cartel OPEC and agreed to rein in a oversupply in crude on Wednesday with analysts now focusing their attention on implementation of the deal.

"It looks achievable on the face of it, provided the parties to the latest production cut deal stick to their pledges, which has historically been somewhat of a sticking point," ANZ bank said on Friday.

Still, traders said the market was optimistic about Wednesday's historic OPEC-deal to reduce output and help bring the market back into balance.

"This is positive news that will make a sustainable difference to the market over the coming months," said Ric Spooner, chief market strategist at CMC Markets adding that it wouldn't be surprising to see this momentum continue.

U.S. West Texas Intermediate (WTI) crude futures were at $51.10 per barrel by 0037 GMT, up 5 cents from their last settlement.

Traders said price developments in crude futures over the coming days would help reflect the market's optimism of the deal.

"WTI has arrived at the peaks from the middle of last year and again in October," Spooner said, which will be a test for the market that may give some insight into how positive traders view this week's agreement.

The Organization of the Petroleum Exporting Countries (OPEC)agreed on Wednesday its first output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slash output. The deal also included the group's first coordinated action with non-OPEC member in 15 years.

(Reporting by Roslan Khasawneh; Editing by Michael Perry)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard