Following a closely watched OPEC meeting in Vienna on Thursday, the cartel reportedly agreed to decrease oil production but did not specify the exact number of barrels it aimed to bring off the market.
OPEC has agreed in principle to reduce its output, two sources told Reuters on Thursday. However, OPEC delayed making a decision on how deeply it would cut production until after it meets with Russia on Friday. With few details to offer journalists, OPEC canceled a scheduled press conference.
The much-anticipated meeting comes at a time when the oil market is near the bottom of its worst price plunge since the 2008 financial crisis. Oil prices have crashed around 30 percent over the last two months, ratcheting up the pressure on budgets in oil-exporting countries.
Oil prices were lower in the morning of Asian trade on the back of those developments.
The global benchmark Brent crude futures contract declined by 0.85 percent to $59.55 per barrel while U.S. crude futures slipped 0.56 percent to $51.2 per barrel.
Shares of oil-related companies in the Asia Pacific region were also mixed.
Australia’s Santos rose 0.35 percent and Beach Energy gained 1.27 percent, while Woodside Petroleum slipped 1.05 percent. Over in Japan, Inpex fell 2.55 percent and JXTG declined by 3.35 percent as Fuji Oil rose 0.83 percent. South Korea’s S-Oil lost its earlier gains to trade down by 1.83 percent while China’s PetroChina slipped 0.13 percent.
Source : CNBC