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Crude Oil Mixed as Outlook for OPEC Cuts Uncertain

Summary:
Crude oil demonstrated mixed performance as traders were uncertain whether the Organization of Petroleum Exporting Countries and its allies will be able to maintain oil production cuts. On one hand, the OPEC signaled at its meeting during the weekend that it wants to keep the production cuts till at least the end of this year. But on the other hand, Russia said that it considers raising its output. Some market analysts argued that with several members of the output cut deal, most notably Saudi Arabia, having more than 100% compliance to the agreement, some countries can raise output without affecting global supply too much. Geopolitical tensions also had mixed impact on the commodity. On one hand, trade wars threaten the global growth, which is negative to raw materials tied to growth,

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Crude oil demonstrated mixed performance as traders were uncertain whether the Organization of Petroleum Exporting Countries and its allies will be able to maintain oil production cuts. On one hand, the OPEC signaled at its meeting during the weekend that it wants to keep the production cuts till at least the end of this year. But on the other hand, Russia said that it considers raising its output. Some market analysts argued that with several members of the output cut deal, most notably Saudi Arabia, having more than 100% compliance to the agreement, some countries can raise output without affecting global supply too much.

Geopolitical tensions also had mixed impact on the commodity. On one hand, trade wars threaten the global growth, which is negative to raw materials tied to growth, like crude. On the other, the conflict between the United States and Iran is a bullish factor for oil.

Futures for delivery of WTI crude oil in June advanced 0.29% to $63.28 per barrel as of 22:18 GMT on NYMEX today. At the same time, July Brent crude dropped 0.33% to $71.97 per barrel on ICE.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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