Investing.com – Crude oil prices fell in Asia on Friday as the market adjusted to the latest OPEC-led output cut extension and looked ahead to data from the US.
On the New York Mercantile Exchange crude futures for January delivery fell 0.03% to $57.38 a barrel, while on London’s Intercontinental Exchange, dipped 0.14% to $62.62 a barrel.
Overnight, crude oil prices settled higher after OPEC announced it would extend cuts in oil output by nine months through 2018 on Thursday, as major oil produces expressed the need to ensure rebalancing in markets continued.
The announcement of a nine-month extension had a muted impact on oil prices as the extension was said to be mostly priced in, but reports that both Nigeria and Libya decided to cap production added a positive slant on the outcome of the meeting.
The production-agreement has rein in excess supplies, but further cuts are needed as Khalid Al-Falih said a draw of about 150 million barrels were required to bring global crude inventories back to the five-year average.
The deal comes as concerns mount over rising output from non-participating countries, including the U.S., where producers have ramped up crude oil production more than 15% to 9.66 million barrels per day (bpd) since mid-2016, not far from top producers Russia and Saudi Arabia.
Inventories of fell by roughly 3.4 million barrels for the week ended Nov. 24, beating expectations of a draw of 2.3 million barrels, while gasoline and distillate inventories unexpectedly rose, The Energy Information Agency said on Wednesday.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com
