Oil falls on failed output freeze; Dow above 18,000

Mon Apr 18, 2016 5:14pm EDT
 
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By Caroline Valetkevitch

NEW YORK (Reuters) - Oil prices edged lower on Monday after producers failed to agree on a plan to curb global supply at a meeting in Qatar, while world stock markets rose and the Dow Jones industrial average closed above 18,000 for the first time since July.

Shares of consumer companies including Hasbro (HAS.O: Quote) and Walt Disney (DIS.N: Quote) helped buoy U.S. stocks, while investors braced for a flurry of quarterly earnings reports through the week.

In Qatar, some 18 oil-exporting nations, including OPEC members, failed to agree to stabilize output at January levels until October 2016. A pact fell apart after Saudi Arabia demanded that Iran join in.

Crude oil ended well off the day's lows, however, with a strike in Kuwait slashing the country's oil output by more than half.

Brent crude LCOc1 settled down 19 cents, or 0.4 percent, at $42.91 a barrel, after falling $3 earlier in the session, while U.S. WTI crude CLc1 closed down 58 cents, or 1.4 percent, at $39.78 a barrel, after hitting $37.61 earlier.

Some analysts said they don't expect oil to fall significantly more as a result of the Qatar news.

"While a few forecasters may be dusting off some old $20 WTI expectations as a result of the Doha outcome, we expect solid support in nearby WTI at the $35 mark," Jim Ritterbusch at Chicago oil consultancy Ritterbusch & Associates said.

A recent rebound in oil and signs that the U.S. economy is slowly improving have helped stocks rally from a steep selloff earlier this year that had pushed the S&P 500 down as much as 10.5 percent.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) April 15, 2016. REUTERS/Brendan McDermid