Oil drops as OPEC+ agreement raises prospect of more supply
Oil prices recouped some losses on Monday, but were still down after OPEC+ overcame internal divisions and agreed to boost output, which sparked concerns about a crude surplus as COVID-19 infections continue to rise in many countries.
Brent crude was down 61 cents, or 0.8%, at $72.98 a barrel by 0617 GMT, after falling to $72.35 earlier in the session. U.S. oil was down 66 cents, or 0.9%, at $71.15 a barrel, having slipped to $70.64 earlier.
OPEC+ ministers agreed on Sunday to increase oil supply from August to cool prices that earlier this month climbed to the highest in around 2-1/2 years as the global economy recovers from the COVID-19 pandemic.
The group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, agreed new production shares from May 2022.
“Oil prices may continue to gyrate in the coming weeks,” Goldman Sachs (NYSE:GS) said after the agreement.
Dollar shifts up a gear as virus looms over England’s ‘Freedom Day’
The dollar was headed for its best weekly gain in about a month on Friday, supported by investors’ drift The safety of dollars and yen was sought on Monday, keeping the greenback near its strongest in months, as the spread of the delta coronavirus variant shook investors’ confidence in growth and left many nervous about England’s reopening.
The risk sensitive Aussie came under the most pressure among major currencies in the Asia session, dropping to a seven-month low of $0.7373 and sliding for a fifth day in a row on the yen to find its lowest in five months.
The yen was last up 0.1% at 109.25 per dollar and close to its strongest since April at 129.78 per euro. The euro sat at $1.1805, near last week’s three-month low of $1.1772.
The dollar rose to stand at its strongest this year on the Thai baht, the Singapore dollar and the Malaysian ringgit as stocks fell and bonds rallied with the jittery mood on what has been dubbed “Freedom Day” in England.
Zoom to buy cloud-based call center operator Five9 in $15 billion deal
Zoom Video Communications Inc announced a $14.7 billion all-stock deal to buy cloud-based call center operator Five9 (NASDAQ:FIVN) Inc in its largest-ever acquisition, as competition intensifies in its core videoconferencing sector.
The teleconferencing services provider has become a household name and investor favorite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.
The San Jose, California-based company is now shifting focus to its two-year-old cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms as bigger players Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL)’s Google amp up their video products.
“The acquisition is expected to help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24-billion contact center market,” Zoom said in a statement on Sunday.
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