Crude Oil Prices move along $50-line on Monday

Brent crude oil prices remained above $50 a barrel today, supported by last OPEC agreement but under pressure due to controversial views about deal.

Brent crude futures were trading at $50.25 per barrel, up 6 cents from the last close while WTI crude were down 8 cents at $48.16 a barrel on October 3.

The Organisation of the Petroleum Exporting Countries (OPEC) said last week that it would cut output to between 32.5 million barrels per day (bpd) and 33 million bpd from about 33.5 million bpd.

OPEC hasn’t actually implemented the cuts yet, and the freeze is not at all guaranteed, while how much each country will produce is to be decided at the Vienna meeting next 30th November.

The inventories data will inevitably remain an important focus during the week with the American Petroleum Institute (API) data due on Tuesday, with draws reported in three of the last four weeks, with the data more bullish than expected for crude throughout September.

Goldman Sachs stated that oil barrel prices could climb between $7-10 by the end of the first half of 2017 if all members of OPEC strictly comply with their new quotas. The bank, however, mentioned that OPEC members don't always feel obliged to stay within quotas, which will contribute to the ongoing uncertainty in the "black gold" market.

Trading activity was limited on Monday due to public holidays in China, Germany, Australia and parts of the Middle East.