Oil is spiking

Oil prices are climbing.

Prices for WTI Crude, the US benchmark, are up by 1.6% at $51.09 per barrel as of 8:03 a.m. ET. Meanwhile, prices for Brent Crude, the international benchmark, are up by 1.5% at $52.47 per barrel.

Earlier, Saudi Arabia’s energy minister Khalid Al-Falih said at the Oil & Money conference in London that many nations will join OPEC in production cuts — although he did not specfically name any, according to Bloomberg.

Relatedly, the Russian ruble, a petrocurrency that has historically moved in conjuction with oil prices, is up by 0.5% at 62.4752 per dollar.

Looking at story from a longer-term perspective, oil has risen in the aftermath OPEC’s late September agreement
to a preliminary cap on production of oil.
Prices for the commodity climbed above $50 a barrel in early October for the first time since June 2016. WTI crude is up by over 18% since mid-September.

However, “more importantly, the fundamental story is becoming more nuanced. First, there is a growing dispute within OPEC about the current level of output,” wrote Marc Chandler, the global head of currency strategy, in commentary on Monday. “Second, Russia may not be a reliable partner for OPEC. […] Third, US producers are increasing their drilling operations.”

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