Oil down along with global markets
Monday’s fall erases last week’s gains as the market remains unsure on whether demand will be sufficient to mop up extra oil
London — Oil fell on Monday, in line with further declines in global stock markets, erasing the gains made last week when producer group Opec and other key exporters agreed to cut their crude output from January. Brent crude oil futures fell $1.02 on the day to $60.65 a barrel by 10.45am GMT, while US futures lost 98c to trade at $51.63 a barrel. Prices rose 3% on Friday after Opec and some non-Opec producers including heavyweight Russia said they would cut oil supply by 1.2-million barrels a day. “They had one thing in common — none of them wanted to see inventories rise further. They could disagree on prices and upon the size of the cuts, but to really see inventories moving higher? No one wanted that,” SEB commodities strategist Bjarne Schieldrop said. “Firstly, we’ll get some (price) stability, even if oil is weighed down by bearish equities. That really took the glow off oil,” he said. Opec has agreed to cut by 800,000 barrels a day, led mainly by Saudi Arabia, while non-member...
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