July Nymex WTI prices are trading firmer in Asian trade Friday, extending its recovery after producer group OPEC agreed to keep its output ceiling unchanged for the second half of the year at 30mln barrels per day. That would imply a cut in supplies of 1.6mln bpd, OPEC Secretary General Abdullah al-Badri said. Analysts still believe that Saudi Arabia and its Gulf allies will cut output if oil prices continue to fall. Saudi Arabia, which has been pumping oil at 30-year highs, has been blamed by some OPEC members for causing the alarming drop in the price of oil. The kingdom increased output this year in an apparent effort to make up any shortfall in Iranian exports as sanctions began to bite. WTI prices held at $84.17 a barrel in Asia this morning, with prices also underpinned by some fresh hopes of monetary stimulus by the U.S. Federal Reserve after U.S. jobless claims unexpectedly climbed. WTI edged its way higher to trade $84.79 in Asian, with the market currently trading $84.59 a barrel, up 68 cents from the NY close.
EasyForexNews Research Team