OIL DROPS ON DOUBTS OUTPUT AND RUPEE OPENS HIGHER
SINGAPORE: Oil prices fell on Wednesday on persistent doubts a planned crude production cut led by Opec and Russia would be deep enough to end a supply overhang that has dogged markets for over two years.
International Brent crude oil futures LCOc1 were trading at $53.69 per barrel at 0131 GMT, down 24 cents, or 0.45 per cent, from their last close.
US West Texas Intermediate (WTI) crude futures CLc1 were down 19 cents, or 0.37 per cent, at 50.74 per barrel.
Oil prices shot up as much as 19 per cent after the Organization of the Petroleum Exporting Countries (Opec) and Russia last week announced they would jointly cut
production next year in an attempt to prop up markets.
However, doubts have since emerged about whether the planned cuts will be big enough to end oversupply as both Opec and Russia have since reported record production.
"With both Russia and Opec producing at record amounts, the market is scratching its head about how both blocs will manage to comply with the Vienna production cut targets. The point is valid, as the more Opec and Russia produce, the higher the starting point will be to have to cut from," said Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore.
The Indian rupee gained in the early trade. It has opened higher by 11 paisa at 67.83 per dollar versus previous close 68.22.
The rupee gained considerably against the USD yesterday on account of dollar selling by exporters and custodial banks.
Euro remains steady ahead of ECB policy meeting, while Yuan continues
to remain pressure, notwithstanding the recent softness in the greenback
against the basket of currencies. It seems that Donald Trump’s
aggressive stance against China is taking a toll on Renminbi.
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