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Oil loses steam after OPEC output cut deal surge

Published 02/12/2016, 13:52
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Investing,com - The surge in oil futures after OPEC agreed to cut output for the first time since 2008 ran out of steam Friday as the market paused for thought.
U.S. crude was down 68 cents, or 1.33% at $50.38 at 06:45 ET after moving above $51 on Thursday. Brent crude was down 1.52% at $53.12.
The market is now looking at the extent to which producers comply with Wednesday's accord to cut output by 1.2 million barrels a day to 32.5 million barrels.
Investors are also on hold as they await developments on OPEC's invitation to non-OPEC producers to reduce their output by 600,000 barrels a day to complement the cuts pledged by OPEC.
Russia has sent positive signals on such a development, indicating its willingness to cut its output by 300,000 barrels a day.
Baker Hughes U.S. rig count figures are due out later Friday.
The market is also looking to see to if the surge in oil prices encourages increased activity by North American shale drillers.
The US dollar indexwas flat. A lower dollar underpins demand for oil.

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