Oil Lower as Greenback Gains, Eyes on OPEC Meeting

By
A A A

Oil prices are slipping in early morning trade Monday, and traders will be monitoring closely the upcoming OPEC meeting in Vienna to be held March 17.

The U.S. dollar's gains against major currencies too are keeping oil prices from moving up, as are worries about the outlook for China's economy in particular.

At 0745 ET, Brent crude is down 0.6% at $78.94 a barrel, while light sweet crude is 0.4% lower at $80.93 a barrel, and natural gas is down 0.6% at $4.37 a million British thermal units.

The Organization of Petroleum Exporting Countries will meet for the first time in 2010 on Wednesday. Collectively, OPEC produces about 40% of the world's total output, and includes Iran among its member nations. Tehran has wanted to keep oil output unchanged, while there is speculation that other member countries will call for an output reduction amid sluggish growth worldwide.

China's National Development and Reform Commission did report over the weekend, however, that electricity usage in the first two months of 2010 rose 26% to 626.4 billion kilowatt hours compared to the same period a year ago.

Meanwhile, a stronger greenback has made it more expensive for other currency holders to buy dollar-denominated oil.

On the corporate front, the Australian Financial Review reported that Arrow Energy Ltd. ( AOE ) could reject a joint takeover offer for its coal steam gas business from Royal Dutch Shell ( RSDA ) and PetroChina Co. ( PTR ) estimated at $3.03 billion. According to the Australian daily, Arrow views the bid as too low, and the energy company is instead coming up with its own plans for a natural gas project.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: AOE , PTR , RSDA

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

106,679,460
  • $17.03 ▲ 0.47%
101,357,777
  • $38.65 ▼ 5.57%
61,830,117
  • $89.89 ▼ 4.26%
54,116,071
  • $5.11 ▼ 4.49%
50,121,934
  • $101.06 ▲ 0.10%
49,993,927
  • $3.52 ▼ 1.40%
47,717,687
  • $11.44 ▼ 4.67%
44,793,169
  • $99.05 ▼ 0.93%
As of 9/22/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com