OPEC and allies attain deal to finish oil manufacturing cuts

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SINGAPORE – Asia Pacific stocks fell Monday morning as markets watched oil prices after OPEC and its allies reached an agreement.

Japan’s Nikkei 225 lost 1.1% in early trading while the Topix index lost 0.86%. South Korea’s Kospi lost 0.73%.

Australian stocks also fell as the S & P / ASX 200 fell 0.5%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was down 0.27%.

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OPEC and allies reach agreement

Investors were on the lookout for movements in the oil markets on Monday. OPEC and its allies reached an agreement on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. A coordinated increase in oil supplies to the group – collectively known as OPEC + – will begin in August, OPEC said in a statement.

The development came when the international benchmark Brent crude oil futures so far rose more than 40% in 2021, with demand for crude oil rising as the global economy recovers from the pandemic.

On the morning of the Asian session, Brent slipped 0.84% ​​to $ 72.97 a barrel. US crude oil futures also fell 0.78% to $ 71.25 a barrel.

Asia Pacific oil company stocks also fell in Monday morning trading, with Beach Energy in Australia falling 0.58%. Japan’s Inpex lost 2.22% while Japan Petroleum Exploration plummeted 3.14%.

Currencies

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.656 after a recent rise from below 92.4.

The Japanese yen was trading at 109.91 per dollar, stronger than the 110.4 levels seen against the greenback last week. The Australian dollar changed hands at $ 0.7387, down from over $ 0.748 last week.

Correction: This article has been updated to reflect that OPEC and its allies reached an agreement on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022.

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