HONG KONG: Asian energy firms were the big losers after a plunge in oil prices, while the pound’s troubles mounted on worries about Britain’s plans to leave the European Union.
Both main crude contracts sank almost four percent on Monday as traders fret over Iraq’s commitment to stick to output cuts agreed to much fanfare by OPEC and other key producers in November.
The deal sent the cost of a barrel surging last month towards $60 on hopes the cuts could put a dent into a global glut that had sent prices to near 13-year lows last February.
However, Iraq’s oil minister said exports from its southern ports in the Gulf reached a record high in December, leading to suspicion it will not stick to the cuts, which came into effect on January 1.
“The Iraqi headlines have raised concerns about compliance,” John Kilduff, a partner at New York-based hedge fund Again Capital LLC, told Bloomberg News.
