Oil prices straddled the flat line on Monday, and gave up some of the gains seen ahead of the close in the U.S. on Friday, as the post-OPEC environment continues to develop.
Crude futures slumped nearly 5% on Thursday after the production-cut deal led by the Organization of the Petroleum Exporting Countries was extended by nine months but not deepened--disappointing some who anticipated output cuts would increase. Oil, though, finished up nearly 2% Friday thanks to the late U.S. gains.
Because of holidays Monday in China, the U.K. and the U.S., trading is set to be thin throughout Monday’s global session. That, though, could exacerbate movements one way or the other.
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In recent trading, West Texas Intermediate crude for July delivery CLN7, -0.18% on the New York Mercantile Exchange was barely changed at $49.79 a barrel in the Globex electronic session. Brent crude LCON7, -0.17% , the global benchmark, was flat at $52.15.
Daniel Hynes, commodities analyst with ANZ Bank, anticipates oil prices rebounding into the third quarter “as the reality of production cuts hits the markets. But the upside may be limited.” He sees oil possibly making a run toward $60 next quarter.
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