Oil prices edge up on Friday but are still nursing severe losses after a five per cent plunge in the previous session. As Laura Frykberg reports, disappointed investors had been betting on a bigger and better output cut from this week's OPEC producers' meeting.
Its intent was to pull up oil prices, instead OPEC's decision to continue to reduce output - has plunged them down again. Crude oil dipping five percent following the announcement, holding onto those losses a day later. West Texas crude also felt a tug - falling 0.6 percent. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, JEREMY BATSTONE-CARR, SAYING: "It had been hoped that maybe they would be able to forge a deal over and above the extension of the existing deal." The Saudi-led organisation will keep cutting 1.8 million barrels per day till the end of the first quarter of next year. Its approach, quite the opposite to the United States - which is continuing to flood the market. Something which some say could backfire - as demand looks increasingly in short supply. (SOUNDBITE) (English) INDEPENDENT MARKET ANALYST, JEREMY BATSTONE-CARR, SAYING: "The U.S. Treasury yield curve appears to be showing signs of inverting. Great uncertainty as to the health of the Chinese economy, great uncertainty as to the health of the Japanese economy. It feels to me like all those net short positions in oil are going to feel somewhat vindicated by what they saw out of Vienna over the past couple of days." A warning too from Goldman Sachs, which says the OPEC deal is short-sighted. And if all players return to the oil market in 2018 - it could be a case, of back to square one.