OPEC to raise oil production from July

On Wall Street, the S&P 500 and Dow Jones Industrial Average climbed on Friday, as the Dow put to rest an eight-day losing streak with a boost from energy stocks, but losses in the technology space kept the Nasdaq in check. Subsequently, WTI and Brent crude futures rose with the latter briefly above $75/bbl, given that markets had feared that OPEC would agree a larger production, while the 1mln bpd increase will likely represent a real increase of 600-700k bpd, which had been largely priced in. "We are in for higher prices for longer", he said.

Saudi Arabia's Oil Minister Khalid al-Falih talks to journalists at the beginning of an OPEC meeting in Vienna, Austria, June 22, 2018.

OPEC agreed on Friday to raise oil production by around one million barrels per day from July for the group and its allies, an OPEC source said.

"There was a lot of anticipation in the market that there was going to be a lot of new oil coming to market, and that isn't going to happen, at least for now", said John Kilduff, a partner at Again Capital.

Rising trade tensions between the USA and China continues to remain a prominent theme with neither side showing any signs of backing down.

Oil prices rose following the news, with Brent crude trading at $74.69 per barrel (+$1.65), while the US West Texas Intermediate gained nearly $2, trading at $67.53.

Brazil edge towards World Cup knockouts after Costa Rica late show
Time and again they hurled themselves at the Costa Rican goal only to be repelled until their opponent's resistance finally broke. Brazil's Philippe Coutinho celebrates scoring his side's opening goal in the first minute of stoppage time against Costa Rica .

The United States, China and India had urged oil producers to release more supply to prevent an oil deficit that could undermine global economic growth.

European carmakers' shares fell sharply after U.S. President Donald Trump threatened to impose a 20 percent tariff on all European Union-assembled cars imported into the United States, if EU "tariffs and trade barriers" are not removed.

The dollar index, tracking it against six major currencies, fell 0.22 per cent, with the euro up 0.51 per cent to $1.166. The Mexican peso gained 1.45 percent versus the US dollar, at 20.03.

Benchmark U.S. 10-year yields were up on Friday, but have declined on a weekly basis for two straight weeks.

The 30-year bond US30YT=RR last rose 3/32 in price to yield 3.0386 percent, from 3.043 percent late on Thursday.

Latest News