| 03 December, 2017

Sunday Outlook: OPEC and non-OPEC producers agree oil cut extension to end of 2018

Oil prices rose on Friday a day after OPEC's decision

OPEC and non-OPEC producers led by Russia agreed on Thursday to extend oil output cuts until the end of 2018.

Oil prices rose on Friday a day after OPEC's decision. But oil pared gains as Wall Street stocks slid.

Brent futures settled at $63.73 a barrel, putting the new front month February contract up 16 cents from where January expired on Thursday. The February futures contract was up about 1.8 percent from where it closed in the previous session.

U.S. West Texas Intermediate crude gained 96 cents, or 1.7 percent, to settle at $58.36 per barrel.

In stocks, U.S. stocks fell on Friday in a volatile session tied to developments in a probe into Russia’s involvement in the U.S. election as well as by progress with a tax bill in Congress.

The pan-European FTSEurofirst 300 index lost 0.74 percent and MSCI's gauge of stocks across the globe shed 0.39 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.18 percent lower.

In Saudi Arabia, the index edged up to technical resistance on Thursday.

The Saudi index added 0.5 percent to 7,004 points, rising for a seventh straight day to test resistance around 7,000 points, which has capped the market since mid-October and roughly coincides with the 200-day average, now at 7,014 points.

In currencies, the greenback slipped against a basket of currencies on Friday.The dollar index, which measures the greenback against six rival currencies, was down 0.15 percent at 92.903.

Spot gold added 0.5 percent on Friday to $1,280.06 an ounce. U.S. gold futures gained 0.52 percent to $1,283.30 an ounce.

In other news, Middle East fund managers have become more positive toward Saudi Arabian equities, a monthly Reuters poll showed on Thursday. Forty-six percent of funds now expect to raise their allocations to the Saudi stock market in the next three months and none to reduce them, according to the poll of 13 leading managers, conducted over the past week.

Greece and its euro zone creditors reached a preliminary deal on Saturday on reforms Athens needs to roll out under its bailout program, a move that could pave the way for the country to leave the aid plan in August.

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© ZAWYA 2017