Stock Futures Mixed, Oil Surges as Non-OPEC Countries Agree to Cut Output

New York (Dec 12)  Stock futures were trading mixed Monday, after Wall Street scored new record closes on Friday, as oil prices surged after non-OPEC countries agreed to cut production.

S&P 500 futures fell 0.03%, Dow Jones Industrial Average futures were higher by 0.06%, and Nasdaq futures declined 0.4%.

The Dow hit a new record on Friday of 19,756, and has closed at a record 14 times since Election Day.

West Texas Intermediate crude oil was up 4.3% on Monday to $53.69 per barrel. Brent crude, the global benchmark, traded at $56.61, up 4.2%. Oil prices were trading at their highest since mid-2015.

Eleven non-OPEC countries including Russia and Mexico agreed -- for the first time in 15 years -- agreed over the weekend to reduce oil output by 558,000 barrels a day, according to a statement. Saudi Oil Minister Khalid Al-Falih said that his country, the largest crude exporter, would cut production below its two-year level of 10 million barrels per day. This follows an OPEC agreement last month to slash output by 1.2 million barrels a day.

The economic calendar in the U.S. is light Monday but picks up Tuesday when the Federal Open Market Committee will gather for its two-day meeting. It's a near certainty that the Federal Reserve's policy-setting committee will lift interest rates for the first time since last December. The likelihood of a rate increase is 94.9%, according to CME Group fed funds futures.

Exxon Mobil  (XOM) shares were up 1.6% to $90.38 in premarket trading as oil prices jumped. Meanwhile, the oil giant's CEO, Rex Tillerson, is reported to have been selected as secretary of state in President-elect Donald Trump's cabinet.

Source: TheStreet