OPEC and eleven other leading producers agreed late last year to cut their combined output by almost 1.8 million barrels per day in the first half of 2017. The original deal had a six-month lifespan, with the possibility of an extension. It has taken crude prices above $50/barrel, but they don’t look comfortable there, especially as US shale-oil production rises. This increases the very supply glut that OPEC and others had hoped to limit. In any case the lack of an immediate extension to the output cut has weighed on oil prices as a new week gets under way in Asia. International benchmark Brent crude got up to $51.07 as the report was released but has since slipped back to $50.78. click Read More below for more of the story
Oil prices dipped on Thursday as the U.S.-China trade war continued to cloud prospects for the global economy and fuel demand despite a resumption in talks seeking a resolution to the 15-month conflict.
The dispute has disrupted global supply chains and slowed growth in the world’s two largest economies, curbing fuel consumption in both.