Crude prices remained subdued early on Friday after an agreement by OPEC to extend existing supply curbs disappointed many who had hoped for larger cuts.
Asian stocks dropped, turning away from Wall Street’s strong performance overnight.
The Organization of Petroleum Exporting Countries and some non-OPEC producers agreed at a meeting in Vienna on Thursday to extend supply cuts of 1.8 million barrels per day until the end of the first quarter of 2018.
While OPEC’s move had been expected, some oil market investors had hoped producers would agree to longer or deeper cuts to drain a global glut of oil.
Talk around extending the cuts had driven crude futures higher in recent days, with the confirmation prompting profit-taking.
“This seems like a clear case of buy the rumour, sell the fact, which was touted to be the reaction,” James Woods, global investment analyst at Rivkin Securities in Sydney, wrote in a note.
U.S. crude prices were flat at $48.88 early on Friday, after losing 4.8 percent overnight, set to end the week 2.8 percent lower. MSCI’s broadest index of Asia-Pacific shares outside Japan , which closed at a two-year high on Thursday, fell 0.2 percent, shrinking its weekly gain to 1.5 percent. Read More…