Oil prices slip on oversupply worries despite OPEC cuts
OPEC members agreed to unite in their view to extend on the oil supply cuts, in a closed meeting that lasted more than six hours on Monday.
Oil prices slipped on Tuesday on concerns of a weakening global economy denting oil demand, even after the Organization of the Petroleum Exporting Countries (OPEC) agreed to extend oil supply cuts until March 2020 in a meeting in Vienna on Monday.
Brent crude futures for September dropped by 33 United States (US) cents, at US$64.73 per barrel. On Monday, it had touched an intraday high of US$66.75.
US West Texas Intermediate (WTI) fell by 48 US cents, at US$58.61 per barrel. The counter had reached five-week highs earlier at US$60.28.
OPEC members agree to extend supply cuts
According to Reuters sources, OPEC members agreed to unite in their view to extend on the oil supply cuts, in a closed meeting that lasted more than six hours.
On Monday, Iran – which is currently under sanctions by the US – joined top producers Saudi Arabia, Russia, and Iraq in supporting the extension of the oil supply cuts.
OPEC is expected to meet with Russia and other producers on Tuesday to talk about the supply cuts amid the surging US output.
Oil prices have been brought under pressure due to the rising US supplies and a weaker global economy.
Iran’s oil minister Bijan Zanganeh on Monday said that the members of the OPEC should have unity among themselves, a report by Shana, the Iranian oil ministry news service said. ‘Without unity among members of OPEC, it is meaningless to plan cooperation between OPEC and non-OPEC countries,’ he said.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
