Oil prices dip but still on track for recovery after Opec deal

 
William Turvill
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Oil Prices Hit Historic High On Weak Dollar
Oil prices jumped this week after an Opec agreement (Source: Getty)

Oil prices fell slightly on Friday morning, but are still set for a strong week.

Investors piled into oil futures and related stocks earlier this week when Organisation of the Petroleum Exporting Countries’ (Opec) revealed a deal to cut production by 1.2m barrels a day.

Read more: $50 oil saves FTSE 100 from further falls

This marked the Opec's first production cut agreement since 2008.

Brent crude futures for January were down 81 cents, or 1.5 per cent, to $50.41 a barrel shortly before 12pm UK time on Friday, according to Investing.com.

Investors might not be too worried, though, with prices up from $45.23 on Tuesday.

Read more: Oil prices shoot up as Opec agrees its first production cut since 2008

“Oil prices are truly on course for a recovery, with prices now having reached a solid $54 backed by the first coordinated action by the Opec members in eight years,” said Mihir Kapadia, chief executive and founder of Sun Global Investments.

“It has definitely set a new price outlook for the commodity. The longer term impact on oil price will depend on the implementation of the accord and discipline in sticking to the accord.”