The OPEC and some non-OPEC producers agreed to meet in Vienna yesterday to extend supply cuts of 1.8 million barrels per day until the end of the first 2018 quarter. During the night, Crude prices were on the defensive after an agreement by OPEC to extend existing supply curbs disappointed investors wagering on larger cuts, prompting a move away from riskier assets and depressing Asian Stocks.
While OPEC’s move was 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.
US Crude prices were flat at $48.88 today, after losing 4.8% overnight, set to end the week 2.8% lower. Global benchmark Brent inched about 0.1% higher to $51.50, after slumping 4.6% overnight. It is on track for a 3.9% weekly loss.
MSCI’s Broadest Index of Asia-Pacific Shares outside Japan, which closed at a two-year high yesterday, fell 0.2%, shrinking its weekly gain to 1.4%. Japan’s Nikkei also slipped 0.2%, on track for a 0.9% increase for the week. China’s CSI 300 was flat, heading for a 2.4% increase for the week. Hong Kong’s Hang Seng advanced about 0.1%, extending its weekly gain to 1.85%.
Australia’s benchmark lost 0.75%, poised for a 0.3% weekly rise.
Overnight on Wall Street, the S&P 500 and the Nasdaq closed at record highs after strong earnings reports from retailers. The strong performance helped lift MSCI’s Global Stocks Index to a record close overnight.