Oil ticks down as investors cash in on OPEC deal rally
Even though the dollar moved lower and relieved downward pressure on prices of crude, benchmark contracts for delivery of the commodity edged to negative territory on Friday on profit taking. Prices spiked 16% in two days through yesterday on the wings of the first exploitation quota agreement within the Organization of the Petroleum Exporting Countries in eight years.
Markets were swift to react with confidence the deal will be implemented, despite the fact it still depends on the participation of the bloc of countries outside of the cartel which are led by Russia.
West Texas Intermediate shed 0.22% to the red at 7:55 a.m. CET, changing hands for $50.93 per barrel. At the same time, Brent for delivery next month edged 0.61% down to $53.61 for one barrel at ICE Futures Europe. The dollar index ticked 0.15% down to 100.78, compared to the session high of 101.83 from November 30.