SINGAPORE – Asia Pacific stocks were set for a lower start on Monday as markets watched oil prices after OPEC and its allies reached an agreement.
Futures indicated a lower open for Japanese stocks. The Chicago Nikkei futures contract was trading at 27,680 while its counterpart was trading at 27,710. This is compared to the Nikkei 225’s last closing price at 28,003.08.
Australian stocks also looked ready for a lower opening price. The SPI futures contract was at 7,232.0, compared to the last closing price of the S & P / ASX 200 at 7,348.10.
OPEC and allies reach agreement
Investors will be on the lookout for movements in the oil markets on Monday. OPEC and its allies reached an agreement on Sunday 5.8 million barrels per day of oil production to cease by September 2022. A coordinated increase in the group’s oil supply – collectively known as OPEC + – will begin in August, OPEC said in a statement.
The development came when the international benchmark Brent crude oil futures so far rose more than 40% in 2021, with demand for crude oil rising as the global economy recovers from the pandemic.
On the morning of the Asian session, Brent slipped 0.67% to $ 73.10 a barrel. US crude oil futures also fell 0.54% to $ 71.42 a barrel.
The Japanese yen was trading at 109.93 per dollar, stronger than the 110.4 levels seen against the greenback last week. The Australian dollar changed hands at $ 0.7393, below the level above $ 0.748 last week.