OPEC agrees to extend oil production cuts – ANZ

Sandeep Kanihama FXStreet Contributor

Analysts at ANZ point out that as earlier signalled, OPEC and some non-OPEC countries agreed on an extension on production cuts for a further nine months in an attempt to counter strong US shale production and high global inventories.

Key Quotes

“But for the market, it was clearly a case of ‘buy the rumour, sell the fact’, with oil prices falling sharply. The market is also likely to have jumped on the fact that no new non-OPEC countries will be joining the pact and there was no plan to continue curbs further into 2018. As with any OPEC agreement, markets appear to be a little sceptical that it will actually be successful.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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