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Skepticism about Opec deal hits oil prices

Wednesday, January 11, 2017 - 06:56

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Oil prices fell sharply for the second straight session on Tuesday on nervousness about the Opec agreement to cut output.

[NEW YORK] Oil prices fell sharply for the second straight session on Tuesday on nervousness about the Opec agreement to cut output.

Global stocks were mixed, with the leading British index hitting a fresh record, the Nikkei falling and the Dow retreating from a march towards 20,000 points.

"It looks like investors are taking a step back from risk-taking here," said Jack Ablin, chief investment officer at BMO Private Bank.

US oil benchmark West Texas Intermediate lost US$1.14 to end at US$50.82 a barrel. Analysts expressed nervousness about the Organization of the Petroleum Exporting Countries production agreement, a major support for the commodity.

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Iraq's oil minister said exports from its southern ports reached a record high in December, leading to suspicion it will not stick to the cuts, which went into effect on January 1.

"The crude rally is coming undone because traders got too bullish too fast after the Opec deal was signed," analyst Jasper Lawler at London Capital Group said.

AFP

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