Oil slips on dollar strength but cushioned by Opec optimism
An agreement by major oil producers under the Opec umbrella, which came into place at the start of this year, lent a floor to oil prices
London — Global oil prices slipped on Wednesday as the US dollar, in which payments for crude are made, rose but they traded broadly at multi-week highs after Opec signalled optimism over its deal with other producers to curb output. The US West Texas Intermediate April crude contract, the new front-month future, was down 71c, or 1.3%, at $53.62 a barrel at 3pm GMT. Brent crude was down 77c, or 1.4%, at $56.83, having touched its highest since February 2 at $55.89 in the previous session. Nevertheless, an agreement by major oil producers under the Opec umbrella, which came into place at the start of this year, lent a floor to oil prices. Mohammad Barkindo, secretary general of the Organisation of the Petroleum Exporting Countries, told a conference on Tuesday that January data showed conformity from member countries in the output cut at above 90%. Adding to the bullish sentiment, hedge funds raised their combined net long position in the three main derivative contracts linked to Bre...
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