SINGAPORE — Shares in Asia-Pacific slipped in Monday morning trade, as markets watched oil prices after OPEC and its allies reached a deal.
Australian stocks also declined as the S&P/ASX 200 edged 0.5% lower.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.27% lower.
OPEC and allies reach deal
Investors watched for movements in oil markets on Monday. OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. Coordinated increases in oil supply from the group — collectively known as OPEC+ — will start in August, OPEC said in a statement.
The development came as international benchmark Brent crude futures surged more than 40% so far in 2021, with demand for crude rising as the global economy recovers from the pandemic.
In the morning of Asia trading hours, Brent slipped 0.84% to $72.97 per barrel. U.S. crude futures also declined 0.78% to $71.25 per barrel.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.656 following a recent climb from below 92.4.
The Japanese yen traded at 109.91 per dollar, stronger than levels above 110.4 seen against the greenback last week. The Australian dollar changed hands at $0.7387, lower than levels above $0.748 last week.
Correction: This article was updated to reflect that OPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022.