Oil languishes after OPEC fails to deepen supply cuts, Asia stocks retreat
The Organization of Petroleum Exporting Countries and some non-OPEC producers agreed at a meeting in Vienna on Thursday to extend supply cuts of 1.8 million barrels per day until the end of the first quarter of 2018.While OPEC`s move had been expected, some oil market investors had hoped producers would agree to longer or deeper cuts to drain a global glut of oil.
Crude prices remained subdued early on Friday after an agreement by OPEC to extend existing supply curbs disappointed many who had hoped for larger cuts.
Asian stocks dropped, turning away from Wall Street`s strong performance overnight.
The Organization of Petroleum Exporting Countries and some non-OPEC producers agreed at a meeting in Vienna on Thursday to extend supply cuts of 1.8 million barrels per day until the end of the first quarter of 2018.While OPEC`s move had been expected, some oil market investors had hoped producers would agree to longer or deeper cuts to drain a global glut of oil.
Talk around extending the cuts had driven crude futures higher in recent days, with the confirmation prompting profit-taking.
"This seems like a clear case of buy the rumour, sell the fact, which was touted to be the reaction," James Woods, global investment analyst at Rivkin Securities in Sydney, wrote in a note.
U.S. crude prices were flat at $48.88 early on Friday, after losing 4.8% overnight, set to end the week 2.8% lower.
MSCI`s broadest index of Asia-Pacific shares outside Japan, which closed at a two-year high on Thursday, fell 0.2%, shrinking its weekly gain to 1.5%.
Japan`s Nikkei also slipped 0.2%, on track for a 1% increase for the week.
Overnight on Wall Street, the S&P 500 and the Nasdaq closed at record highs after strong earnings reports from retailers.
The strong performance helped lift MSCI`s global stocks index to a record close overnight.
Sterling fell 0.3% on Friday to $1.2906, after a YouGov poll showed Britain`s opposition Labour Party had cut the lead of Prime Minister Theresa May`s Conservatives to five points less than a fortnight before national elections also weighed on sterling.
Sterling declined 0.3% on Thursday after data showed Britain`s economy slowed more than previously thought in the first quarter of this year.
"The UK is now beginning to look like the sick man of Europe," said Kathleen Brooks, research director with City Index in London.
The dollar pulled back 0.1% to 111.68 yen on Friday, and was set to end the week up 0.2%.
The dollar index, which tracks the greenback against a basket of six major peers, was steady and poised for a 0.1% gain in the week.
U.S. unemployment data that showed a tightening labour market was offset by a widening goods trade deficit in April and news of declining inventories, prompting analysts to pare their second-quarter economic growth estimates.
The euro was flat at $1.121.
Gold was steady at $1,254 an ounce, poised for a 0.1% loss for the week.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
08:33 AM IST