Oil Sinks on Output Complications

OPEC's deal to limit output will be dead by 2019 ING analysts

OPEC's deal to limit output will be dead by 2019 ING analysts

NAIJ.com gathers that Brent sweet crude was at 65.70 dollars per barrel, up 21 cents, or 0.3 per cent, from their previous close.

Oil prices would have plunged even lower if OPEC and Russian Federation hadn't placed a restraint on production to avoid a glut or oversupply.

The split is driven by differing views over whether $70 a barrel would send USA shale companies into a production frenzy that could cause prices to crash.

Oil prices settled with a loss on Monday (http://www.marketwatch.com/story/oil-prices-pull-back-from-strong-finish-last-week-as-market-renews-us-supply-watch-2018-03-12), giving back part of the sharp gains seen in the previous session as recent data showed a rise in weekly USA output, as well as expectations for a further increase in domestic production next month.

Brent crude futures-where Nigeria's oil is pegged-sold at $64.77 per barrel, down 18 cents, or 0.3 percent. The Organization of Petroleum Exporting Countries and its allies pledge to curb output may be undermined as the USA ships more oil to Asia, according to ING Groep NV. S. data showed the economy in February added the most jobs in more than 1-1/2 years.

In February, even Saudi Arabia's state oil company considered participating in these flows via a USA unit, before determining it wasn't economically viable at the time.

USA oil production gains nevertheless are offsetting an effort led by the Organization of Petroleum Exporting Countries to cut into the surplus on five-year oil inventories through output curtailments.

Calm before the storm? North Korea still mum on Trump summit
They also say the North could even offer to reduce the amount of nuclear materials it has saved for making nuclear weapons . On Saturday, Trump said his talks with Kim could end with no agreement or they could be "the greatest deal for the world".

USA stocks, though, were little changed on Monday, with the S&P 500 .SPX up 0.1 points, or 0.00 percent, to 2,786.67.

On Monday, benchmark 10-year notes last rose 8/32 in price to yield 2.8663 percent, hovering near multi-year highs.

Increased supply did not quell demand for the notes, a positive sign for the heavy issuance expected in the year ahead.

Last week's jobs data, as well as an easing of fears of a global trade war, also boosted stocks across many parts of the world.

The Nasdaq Composite was up 33.19 points, or 0.44 percent, at 7,594.00.

Wall Street's main indexes had closed up almost 2 percent on Friday on the strength of the jobs report, and have almost reclaimed losses sustained in recent weeks when investors feared that higher wages might lead to price pressures.

Emerging market stocks rose 1.21 percent.

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