Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts jumped higher on Monday during the Asian trade session. Trader sentiment, among oil traders, was improved after the Organization for Petroleum Export Nations (OPEC) and non-member allies led by Russia (OPEC +) agreed to reduce production by 9.7 million barrels per day.
This deal was finalized Sunday evening after intense negotiations that lasted four days. This is the single largest output reduction on record.
The U.S. West Texas Intermediate (WTI) crude oil was last up over five percent to trade at $23.97 per barrel. This contract fell nine percent on Friday after traders thought the Mexico would sink any hopes for a deal.
The international crude oil futures contract, Brent, was up 4.35 percent to trade at $32.85 per barrel.
At the start of the Asian trade session, the WTI contract was up eight percent. For the year, this contract is down 62 percent and Brent has shed 52 percent.
Crude Oil Traders Study the Details of the OPEC + Agreement
On Thursday, the OPEC + group originally wanted to cut back ten percent of the global oil supply or ten million barrels per day. Mexico was firmly against this and the amount of production they were being asked to cut. This held the agreement up.
This new agreement that Mexico agreed to, will see the Latin America nation cut production by 100,000 barrels per day.
The OPEC + nations, as a whole, will reduce production by 9.7 million barrels per day. This starts on May 1 and will extend through the end of June. The reduction cuts will taper back, by July, to 7.7 million barrels per day until the end of the year.
From January 2021 to April 2022, the 22 nation OPEC + group will meet on 10 June to discuss whether or not any further action is needed.
