Market News

Oil (CL=F, BZ=F)

Oil (CL=F, BZ=F) prices dipped on Monday, heading lower as concerns around supply and the state of geopolitics continues to move markets.

By 9am in London, West Texas Intermediate had dipped to around $64.20, before bouncing back up to trade around 0.2% lower than the previous session. Brent crude (BZ=F) also dipped around 0.2% to trade near the $66.33 mark.

The end of last week saw a rally for the viscose commodity, as US non-farm payroll data came in hotter than expected.

Investors are, this week, eyeing OPEC+ output decisions as well as ongoing trade discussions between the US and China.

OPEC+ production hikes are yet to translate into actual output gains, analysts at Morgan Stanley said.

“Notwithstanding the around one million-barrel-a-day increase in production quotas between March and June, an actual increase in production is hard to detect,” analysts including Martijn Rats said in a June 9 note, according to a Bloomberg report. “Notably, it does not appear that production in Saudi Arabia has ramped up significantly.”

US-China trade discussions will be on traders minds going into this week, with both economies having a large baring on oil consumption.