Goldman Sachs warns that Opec meeting in Doha will not deliver a “bullish surprise” for oil prices
This is the first time since 2001 both Opec and non-Opec nations have agreed to curb oil output Reuters

While Asian stock market indices were trading mixed on Monday (12 December), the Shanghai Composite was down 2.03% at 3,167.37 as of 4.45am GMT following an increase in oil prices post an output cut deal reached in Vienna over the weekend.

Non-Opec nations agreed that they would cut output by 558,000 barrels a day. This followed Opec nations' recent agreement to cut 1.2 million barrels a day.

This is the first time since 2001 both Opec and non-Opec nations have agreed to curb output, leading to an increase in oil prices.

However, analysts said investors were concerned if the nations would abide by the production cuts . "The question of whether the production agreements are adhered to is one for the future. At this stage the safe assumption is that they will be, especially in the first few months," Ric Spooner, chief market analyst at CMC Markets, was quoted as saying by CNBC.

Investors are said to be focused on the two-day policy meeting of the US Federal Reserve from Tuesday (13 December).

While the probability of the US central bank announcing an increase in interest rates is high, some analysts cautioned that the market may not be prepared for it and that any hawkish comments from the Fed could affect investor sentiment.

Indices in the region were trading as follows at 5.46am GMT:

Country

Index

Price

Up/Down

%Change

Hong Kong

Hang Seng Index

22,499.84

Down

1.15%

Japan

Nikkei 225

19,114.31

Up

0.62%

South Korea

KOSPI

2,025.19

Up

0.02%

India

BSE

26,608.91

Down

0.52%

Australia

S&P/ASX 200

5,568.40

Up

0.14%

Last week (9 December), the FTSE 100 closed 0.33% higher at 6,954.21, while the S&P 500 Index closed 0.59% higher at 2,259.53.

Among commodities, oil prices were in the green. As of 5.05am GMT, WTI crude oil was trading higher by 4.72% at $53.93 (£42.84) a barrel, while Brent crude was trading 4.14% higher at $56.58 a barrel.