Benchmark contracts for the delivery of crude at ICE Futures Europe were under moderate downward pressure on Monday during the early part of the session at equity markets in the continent, even though the dollar edged lower, which could underpin demand among holders of other currencies.
Investors were looking for cues as members of the Organization of the Petroleum Exporting Countries were preparing for a two-day meeting in the United Arab Emirates with other major producers, starting today.
Oil watchers will be eager to see how participants will resolve the issue of some parties exploiting more of the commodity than their share in the quotas from the global output cap deal. The burning issue is whether Libya would join the agreement, as the struggling OPEC member managed to get to peaks despite tension among armed fractions. In other news, traders were encouraged by a solid jobs report from the United States, and the net reduction of active rigs in North America last week.
West Texas Intermediate for settlement in September fell 0.52% to $49.32 per barrel at 10:03 am CET, while Brent for shipment one month after that shed 0.55% to change hands for $52.13 for one barrel. The euro moved 0.29% to the green at 10:15 am CET, buying $1.18085. The pound advanced only 0.1% to $1.3048.