Oil Trims Second Monthly Gain as OPEC Agrees to Production Cut

Oil trimmed a second monthly gain on OPEC’s plan to reduce output for the first time in eight years.

Futures lost 1 percent in New York, falling amid a decline in global equities. Prices are up 5.8 percent for the month, heading for the first September increase since 2010. Iran will be exempt from the cuts and an OPEC committee will recommend production caps for members at a formal meeting in November after the deal was announced Wednesday. The agreement represented a “capitulation” to U.S. shale drillers, according to Warwick Energy Group, a privately held investor in thousands of oil wells.

West Texas Intermediate for November delivery was at $47.27 a barrel on the New York Mercantile Exchange, down 55 cents at 8:21 a.m. in London. The contract rose 78 cents to $47.83 on Thursday, capping a 7.1 percent advance over two days. Total volume traded was about 11 percent below the 100-day average. Prices are down about 2.1 percent for the quarter.

Brent for November settlement, which expires Friday, lost as much as 67 cents to $48.57 a barrel on the London-based ICE Futures Europe exchange. Prices are up 3.4 percent this month and down 2.1 percent for the quarter. The global benchmark crude was at a premium of $1.37 to WTI. The more-active December contract was 64 cents lower at $49.17 a barrel.
more at:  http://www.bloomberg.com/news/articles/2016-09-30/oil-trims-second-monthly-gain-as-opec-agrees-to-production-cut

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