Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Crude Oil Lower, Consolidating After OPEC+ Agreement

CommoditiesJun 08, 2020 08:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - Oil markets edged lower Monday, consolidating after recent strong gains despite a group of major oil producers agreeing to extend record production cuts.

At 8:10 AM ET (1210 GMT), U.S. crude futures traded 0.9% lower at $39.20 a barrel. The international benchmark Brent contract fell 0.2% to $42.20. 

Over the weekend, the Organization of Petroleum Exporting Countries and its allies agreed to extend massive output cuts by an extra month, with the group’s leaders--mainly Saudi Arabia and Russia--also persuading other group members to fulfill their promises to reduce production. 

Oil has doubled since April as OPEC+ cuts trimmed a global glut and demand staged a rebound, with Brent futures posting a sixth weekly increase on Friday, the longest run of gains since May 2018.

Adding to positive news, China’s crude imports soared to an all-time high last month, surging to 47.97 million tons in May, or 11.34 million barrels a day, according to customs data on Sunday. That’s a 15% jump from April and 160,000 barrels a day more than the previous record set in November.

Saudi Aramco (SE:2222) also increased its Arab Light pricing by $6.10 a barrel from June, according to a pricing list seen by Bloomberg, the biggest rise in at least 20 years.

That said, further gains may prove hard to achieve, as witnessed by Monday’s drift lower. 

“There is no enforcement mechanism,” said ING, about the weekend’s deal, in a research note to clients, “it is difficult to believe that the likes of Iraq will suddenly start to comply with the deal.” 

Additionally, the reopening of two major oilfields in Libya, after a months-long blockade, could offer up more supply.

“The potential return of Libyan output could also cause considerable challenges for the OPEC leadership,” said Helima Croft, head of global commodity strategy at RBC Capital Markets, on CNBC.


Crude Oil Lower, Consolidating After OPEC+ Agreement

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
David Bennett
David Bennett Jun 08, 2020 12:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
should there be a V shaped recovery with the US economy, it does not matter if Iraq complies, the record cut will be enough. The US must do there part and not be the no 1 producer in the world and go bankrupt. Turn the decline curved wells back on and limit drilling or DUC for the 2nd half of the year and we should see a reasonable recovery.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email