Oil prices are jumping on Monday morning, boosted by hopes of a looming production cut and a weaker dollar.
Henry Croft, a research analyst at Accendo Markets, says in an emailed statement: “Crude Oil prices are once again being buoyed by improved market optimism that OPEC members will be able to reach a deal at the end of this month, being further helped by the USD trading below its record highs posted on Friday.”
OPEC leaders meet at the end of the month and while initially a production cut had been planned, there has been uncertainty over just how likely this would be. However, UBS’ commodities and FX strategist Wayne Gordon said on Monday that Donald Trump’s Presidential victory makes a deal more likely, according to CNBC.
Croft says: “Iran, Iraq and Russia all released optimistic statements that a deal could be reached on November 30, however, Russian President Putin refused to commit to 100% certainty it will take place.”
US West Texas Intermediate crude is the biggest gainer on Monday morning, up over 1.7% at just after 8.20 a.m. GMT (3.20 a.m. ET):
UK Brent is also popping. Here is how it looks at the same time: