Crude oil futures drifted lower on Monday, failing to hold early gains, as concerns about excess supply in the market overshadowed optimism over OPEC's historic production cut agreement.
West Texas Intermediate Crude oil futures for May ended down $0.35, or about 1.5%, at $22.41 a barrel.
On Thursday, WTI Crude oil futures for May ended down 9.3% at $22.76 a barrel, well off the session's high of $28.36.
The OPEC and a its allies, Russia and other producers, a group known as OPEC+, reached an agreement on Sunday to cut production by 9.7 million barrels per day.
The U.S., Brazil and Canada will contribute another 3.7 million barrels as their production declines, and other G20 states will reduce their output by an additional 1.3 million - largely because of a slump in demand triggered by the coronavirus pandemic.
Mexico will reduce output by only 100,000 barrels a day, after rejecting its 400,000 barrel-a-day share of the original deal.
Goldman Sachs Group called the agreement "historic yet insufficient". The bank sees demand losses in April and May averaging 19 million barrels a day.
Meanwhile, U.S. President Donald Trump tweeted today that a historic weekend deal struck between OPEC and some of the biggest oil producers on the planet could be more substantial than what has been announced. His tweet says the global output cut by 9.7 million barrels a day struck by OPEC+, could be doubled.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2155188/
No comments:
Post a Comment