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 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