Crude oil dips after OPEC boost. (Reuters).
Oil prices, however, edged off their highs as some investors took profits on Wednesday's more than 5 percent surge, which was prompted by OPEC's first deal to limit output since 2008. Scepticism over how it would be implemented also crept in.
"Everything you’re seeing today is a response to the move in crude and the possible coordination necessary for OPEC to do what it has announced. Even though I think the agreement is probably a bit flimsy, the amount of coordination is part of the reason for the rally in risk,"
Each Opec member's output levels will be decided at the next formal OPEC meeting in Vienna in November, when non-OPEC countries such as Russia could also be invited to join the cuts.
Goldman Sachs said the deal could add as much as $10 to oil prices ion the first half of next year but, given the uncertainty of the proposal, stuck to its year-end and 2017 oil price forecasts.
Brent crude, the international benchmark was down 61 cents, 1.3 percent, at $48.08 per barrel, after rising to as high as $49.09 on Wednesday.
"Even if there's a 5 percent rise in oil prices, this will not trigger a strong rebound in inflation and at these levels, oil output is still higher than demand so we're unlikely to see a massive rally in oil," he said. Hmmm......Opec only controls 48% of the World Oil production. Making oil more expensive is only the green light for the US Shale oil. Read the full story here.
#Islamic Oil Minister Zangeneh:#Iran won't accept any oil production ceiling before we regain pre-sanctions level of 4 million barrels a day— Amir Taheri (@AmirTaheri4) September 28, 2016
Ananlyst says OPEC’s oil output freeze deal poses no threat to Russian production https://t.co/S4OM1XhUkd— MFS - The Other News (@MFS001) September 29, 2016