HONG KONG: Most Asian markets dipped Thursday, with energy firms struggling after another sell-off in oil fuelled by concerns about a planned output cut.
Crude prices are slumbering at three-month lows after OPEC member Iraq and non-member Russia suggested this week they would not take part in any limitations, despite a painful global supply glut.
Their comments have raised questions about the viability of a last month’s agreement at oil cartel OPEC to reduce output, which sent prices soaring.
Both main contracts have tumbled more than three percent this week and news that US stockpiles had fallen more than expected last week was unable to provide any support.
“Iraqi demands to join the list of countries exempted from quotas have simply added to the uncertainty” that an output cut can be implemented, Research firm Capital Economics said in a commentary.
“We have long been sceptical of the chances of a game-changing deal and continue to forecast that both Brent and WTI will end the year back at around $45 per barrel.”
Regional energy firms extended recent losses. Hong Kong-listed CNOOC sank more than three percent, with traders also selling on the back of a weak earnings report.
