LONDON (AP) — Oil prices were volatile but trading sharply lower Thursday ahead of an expected announcement from the OPEC oil cartel that it will extend recent production cuts for a further nine months. Elsewhere, stock markets were unmoved by further indications from the Federal Reserve that it may raise interest rates again as soon as next month.
KEEPING SCORE: In Europe, Germany's DAX was down 0.1 percent at 12,626 while the CAC 40 in France was flat at 5,340. The FTSE 100 index of leading British shares was also steady at 7,512. Wall Street was poised for a slightly perkier opening, with Dow futures and the broader S&P 500 futures up 0.3 percent.
OPEC IN FOCUS: OPEC and other oil nations meeting Thursday appeared set to extend their production cuts in an effort to shore up prices. The latest reductions have been in effect since November, when the Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels a day. Non-OPEC countries led by Russia chipped in with a further 600,000-barrel reduction.
OIL PRICES: Oil prices were sharply lower but up from an earlier 3 percent slump. The benchmark New York rate was down 1.3 percent at $50.72 a barrel while Brent, the international standard, fell 1.1 percent to $53.35. Analysts reckon oil prices will remain volatile through the day until the decision.
ANALYST TAKE: "While a 9-month extension to production cuts is widely anticipated, comments from delegates are expected to move prices significantly and remain a driver throughout the day," said Henry Croft, research analyst at Accendo Markets.
