Oil drops marginally after OPEC+ price hike

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Oil prices

Spot gold edges down over potential Fed rate cut

Spot gold fell Monday after rising 2% to hit a one-week high in its previous session, following concerns over a soft jobs report in the U.S. and possibility of an interest rate cut by the Federal Reserve.

Prices of the yellow metal were down 0.22% at $3,355.37 per ounce as of 11:05 a.m. Singapore time (11:05 p.m. ET Sunday).

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OPEC+ hikes oil production by 547,000 barrels per day for September

Oil prices slipped on Friday, weighed down by a stronger U.S. dollar and the possibility that OPEC+ will further increase its crude oil output.

Dado Ruvic | Reuters

OPEC+ agreed on Sunday to raise oil production by 547,000 barrels per day for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia.

OPEC+ cited a healthy economy and low stocks as reasons behind its decision.

“Given fairly strong oil prices at around $70, it does give OPEC+ some confidence about market fundamentals,” said Amrita Sen, co-founder of Energy Aspects, adding that the market structure was also indicating tight stocks.

In early Asian trade on Monday, Brent crude futures fell 43 cents, or 0.62%, to $69.24 a barrel by 2218 GMT, while U.S. West Texas Intermediate crude was at $66.94 a barrel, down 39 cents, or 0.58%, after both contracts closed about $2 a barrel lower on Friday.  

Read more here.

— Reuters

Stocks open little changed on Sunday