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Oil lower after big gains on surprise OPEC output deal

Published 29/09/2016, 09:56 pm
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Investing.com - Oil prices Thursday edged lower after gains of over 5% on OPEC’s surprise agreement Wednesday to cut output.
U.S. crude was down 26 cents, or 0.55%, at $46.79 at 07:00 ET, while Brent crude shed 0.73% to $48.88.
OPEC members agreed to cut output to a range of 32.5-33 million barrels a day from 33.24 million, the first such accord since 2008.
Details of how the cuts are to be implemented are due to be decided at OPEC’s formal meeting on November 30.
Official Energy Information Administration (EIA) stockpile data Wednesday were mixed.
U.S. crude stocks fell 1.9 million barrels to 502.7 million when a build-up had been expected.
However, gasoline inventories jumped by 2 million barrels against a forecast rise of only 178,000 barrels.
The dollar index was higher as investors weighed up the odds of a U.S. rate hike this year.
A stronger dollar weakens demand for oil.

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