Oil Flat-Lined After OPEC Meeting, US Rigs Data Eyed
Having witnessed a volatile session a day before, oil benchmarks on both sides of Atlantic trade modestly flat as dust settles over the OPEC meeting aftermath.
Oil awaits rigs count, NFP data
Currently, both crude benchmarks are trading around a flat-line, with Brent holding $50 mark, while WTI oil keeps 49 handle. Oil prices are seen trading modestly higher, although lack momentum as they look to stabilize after a volatile session witnessed yesterday.
Thursday’s OPEC meeting concluded on the positive, however, the cartel failed to agree on freezing crude production. While Saudi Arabia promised not to flood the market with extra oil.
Analysts at ANZ noted, "The fact that Saudi Arabia strongly promoted a new higher ceiling sent an important message that it won't open taps to flood oil markets. Overall, this should be seen as a positive for oil prices. When combined with growing disruptions around the world and increasing declines in U.S. output, we see oil prices trending higher over the next six months.”
The rally backed by renewed optimism surrounding oil markets post-OPEC meeting was quickly faded as the US crude stockpiles data showed a small-than expected fall in the inventory, according to the latest EIA report.
Markets now await the rigs count data and labour market report from the US for fresh incentives on the black gold.