Shares of energy producers fell sharply alongside oil futures after the extension of a production deal at the Organization of the Petroleum Exporting Countries didn't go as far as some traders had anticipated.
Continue Reading Below
OPEC renewed an agreement with a dozen other crude-oil producers to withhold supplies until March 2018, The Wall Street Journal reported. But the cartel had clearly signposted the move, leaving some traders to bet that the cartel had another ace up its sleeve.
"The nine months [extension] was already well factored into the market," said Kyle Cooper, a consultant for Ion Energy Group in Houston, adding that some participants were hoping for an increase in the amount of production cut.
-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
May 25, 2017 16:21 ET (20:21 GMT)