Oil prices fall further in Asia

AFP, HONG KONG: Oil prices sank further in Asian trade yesterday on fears a planned cut in output will not be agreed by top producers this week, while the dollar retreated against most of its peers after its recent surge.
Both main crude contracts slumped around four per cent on Friday owing to disagreements over how to implement a reduction deal, with Iran and Iraq pressing to be excluded and Russia suggesting it will only freeze output.
News that Saudi Arabia, the kingpin of the OPEC cartel, had walked out of talks on Monday—and suggested demand will pick up in 2017 -- has fanned fears a hoped-for settlement will not be reached before its twice-yearly meeting Wednesday.
“With so many toys being thrown out of their prams now in oil quota tantrums, its hard to see who will pick them all up by Wednesday’s deadline,” Jeffrey Halley, senior market analyst at OANDA, said in a note.
In early trade yesterday Brent and West Texas Intermediate were down almost one per cent.
The losses weighed on energy firms, with Australia’s Woodside down 2.5 per cent, Tokyo-listed Inpex losing almost two per cent and CNOOC in Hong Kong off 1.2 per cent.
Despite the losses most regional stock markets were up, extending last week’s gains on bets Donald Trump’s spending plans will ramp up growth in the US economy.

Oil prices fall further in Asia

AFP, HONG KONG: Oil prices sank further in Asian trade yesterday on fears a planned cut in output will not be agreed by top producers this week, while the dollar retreated against most of its peers after its recent surge. Both main crude contracts slumped around four per cent on Friday owing to disagreements over how to implement a reduction deal, with Iran and Iraq pressing to be excluded and Russia suggesting it will only freeze output. News that Saudi Arabia, the kingpin of the OPEC cartel, had walked out of talks on Mondayand suggested demand will pick up in 2017 -- has fanned fears a hoped-for settlement will not be reached before its twice-yearly meeting Wednesday. With so many toys being thrown out of their prams now in oil quota tantrums, its hard to see who will pick them all up by Wednesdays deadline, Jeffrey Halley, senior market analyst at OANDA, saidin a note. In early trade yesterday Brent and West Texas Intermediate were down almost one per cent. The losses weighed on energy firms, with Australias Woodside down 2.5 per cent, Tokyo-listed Inpex losing almost two per cent and CNOOC in Hong Kong off 1.2 per cent. Despite the losses most regional stock markets were up, extending last weeks gains on bets Donald Trumps spending plans will ramp up growth in the US economy.