Despite the agreement reached by OPEC and non-OPEC producers last week to extend the OPEC-led deal to cut output by around 1.8 million barrels per day until the end of the first quarter of 2018, oil prices remained feeble on Monday.
A continual increase in U.S. drilling weakens the OPEC-led deal meant to tighten crude supply to prevent it from falling below $50 per barrel.
Brent crude futures were trading 4 cents or 0.1% lower closing at $52.11 per barrel at 0232 GMT. The U.S. West Texas Intermediate crude futures fell by 6 cents or 0.1% closing at $49.74 per barrel. In light of public holidays on Monday in China, The United States and Britain, crude prices are likely to stabilize.
The U.S. dollar edged higher against its competitors on Monday. It made a great leap from last week’s 6-and-a-half month lows. The dollar index stepped up 0.1% to 97.502, holding firm above last week’s slope of 96.797, which counts as the currency’s lowest since Nov. 9.
Inflation date in the United States remains pretty encouraging and promising according to what the San Francisco Federal Reserve President, John Williams, said on an interview in Singapore on Monday. In addition, there are indications according to which the gross domestic product of the U.S economy, which surprisingly grew at an annual 1.2% during the first quarter, will keep on improving at a satisfactory pace. This may enable the Federal Reserve to raise interest rate as initially planned.