Asian stocks fall on oil output cut uncertainty

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President Donald Trump says he has sealed deal for Russia and Saudi Arabia to slash production, but US will retain levels

Tokyo/New York — Oil prices retreated on Friday after huge gains, while stocks in Asia edged down, as doubts grew over an oil price deal between Saudi Arabia and Russia that US President Donald Trump said he had brokered.

Trump said on Thursday he had spoken to Saudi Crown Prince Mohammed bin Salman, and expects Saudi Arabia and Russia to cut oil output by as much as 10-million to 15-million barrels, as the two countries signalled willingness to make a deal. “How could Riyadh and Moscow agree on such a big cut, just about a month after they had fought over a cut of 1.5-million.”

Projections released by the US Congressional Budget Office showed US GDP will decline by more than 7% in the second quarter as the health crisis takes hold. In the currency market, the dollar maintained its firmness against a basket of currencies as investors and companies continued to hoard the world’s most liquid currency.

 

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