Oil Prices Mixed As Traders Digest Details Of OPEC's Output Deal
Investing.com - Oil prices were mixed on Monday, as energy investors continued to react to last week's decision by major producers to start pumping more crude to compensate for losses in global production.
International benchmark Brent futures were down $1.07, or around 1.4%, at $74.25 a barrel by 6:20AM ET (1020GMT), after Friday's 3.4% jump.
But U.S. crude futures on the New York Mercantile Exchange were up 14 cents, or 0.2%, at $68.72 after its own 4.6% pop Friday.
Both had their best day since late 2016 on Friday, after OPEC and non-OPEC producers agreed on a modest increase in production from next month, without announcing a clear target for the output increase.
In a statement following its meeting in Vienna, OPEC said that it would go back to 100% compliance with previously agreed output cuts but gave no concrete figures, making it difficult to understand how much more it will pump.
Saudi Arabia said the move would translate into a nominal output rise of around 1 million barrels per day (bpd).
OPEC and non-OPEC producers have been curbing output by about 1.8 million bpd since January 2017 to prop up oil prices and reduce high global oil stocks.
Meanwhile, a slight drop in domestic drilling activity supported the U.S. benchmark.
U.S. energy companies last week cut one oil rig, the first reduction in 12 weeks, lowering the total rig count to 862, Baker Hughes said in its closely followed report on Friday.
That put the rig count on track for its smallest monthly gain since declining by two rigs in March, with just three rigs added so far in June, although the overall level remains just one rig short of the March 2015 high from the previous week.