Asian energy firms hit by tumble in oil prices
Both main crude contracts sank almost four percent on Monday.
Hong Kong: Asian energy firms retreated Tuesday after a plunge in oil prices, while the pound's troubles mounted on worries about Britain's plans to leave the European Union.
Both main crude contracts sank almost four percent on Monday as traders fret over Iraq's commitment to stick to output cuts agreed amid much fanfare by OPEC and other key producers in November.
The deal sent the cost of a barrel surging last month towards $60 on hopes the cuts could reduce a global glut that had sent prices to near 13-year lows last February.
However, Iraq's oil minister said exports from its southern ports reached a record high in December, leading to suspicion it will not stick to the cuts, which came into effect on January 1.
"The Iraqi headlines have raised concerns about compliance," John Kilduff, a partner at New York-based hedge fund Again Capital LLC, told Bloomberg News.
"We need to see compliance outside of Saudi Arabia, Kuwait and the other Gulf states."
While both contracts edged up Tuesday, regional energy firms fell although they pared early losses. Sydney-listed Woodside Petroleum lost 0.1 percent and BHP Billiton was down 0.4 percent.
Inpex lost 1.5 percent in Tokyo and PetroChina dived 0.5 percent in Hong Kong, where CNOOC was down 1.5 percent.