Oil Rises as OPEC Extends Supply Cuts, Overcoming Demand Jitters - Bloomberg

Oil Rises as OPEC Extends Supply Cuts, Overcoming Demand Jitters - Bloomberg:

Oil closed higher to finish a roller-coaster trading session, as an OPEC agreement to extend output curbs outweighed troubling economic data.

After surging at the start on Monday, oil prices spent much of the day drifting lower, even after OPEC members quickly decided to prolong production cuts by nine months. The coalition then spent hours arguing over a proposal to formalize cooperation with Russia and other allies. Futures closed up 1.1% in New York, after surrendering a gain of more than 3% earlier in the day.

While drawn-out OPEC negotiations are nothing new, “people are getting a bit restless," said Ashley Petersen, an oil analyst at Stratas Advisors LLC in New York. Monday’s rally may have lost steam as investors cashed in on gains after this weekend’s trade-war truce between the U.S. and China, she said. “With the expectations for the OPEC+ meeting today, markets came into the week feeling very good, and they still do which is why we saw that profit taking."