Crude oil prices have eased back at the start of this week, with a barrel of Brent costing $62.25 and WTI $57.25. From their post-OPEC highs, Brent was $1.90 lower and WTI was $1.60 worse off at the time of this writing.
Investors who were banking on OPEC to enforce some “extraordinary measures” to rebalance markets were left empty-handed on Thursday after the cartel simply agreed on extending oil output cuts until the end of 2018.
Oil prices are responding positively to an extension of the current OPEC/Non-OPEC production deal, especially because Nigeria and Libya agreed to cap production, but a monthly report by the Energy Information Administration (EIA) on U.S. production rising over 3% to 9.48 million barrels a day seemed to put a bit of a wet blanket on the markets' enthusiasm. Not to mention a million barrels of hedged shale oil output.