TOKYO - Oil slipped in early Asian trade on Friday, with U.S. crude moving further away from a two-month high after OPEC agreed to increase output curbs in early 2020 but failed to promise further steps after March.
The Organization of the Petroleum Exporting Countries and allies including Russia - a grouping known as OPEC+ - agreed to more output cuts to avert oversupply early next year as economic growth stagnates amid the U.S.-China trade war. The “decision seems to be more of a housekeeping move that will narrow the gap between their current target and the over-compliance we have seen from the alliance,” said Edward Moya senior market analyst at OANDA.
“North American shale supply will continue growing even in an environment with lower oil prices,” Rystad Energy said in a note.
Nope. No drop.
Day 2: Reuter’s yet to find a more suitable word to describe minute fluctuations in oil price. Bloomberg wrote “oil dribbles” earlier, that’s a better word. “Does absolutely nothing as market awaits...” would get the job done, too.