The ruble is surging after Russia and Saudi Arabia back longer production cuts

The Russian ruble is soaring after Saudi Arabia and Russia said they support supply cuts lasting into 2018.

The petrocurrency is up by 1.5% at 56.2607 per dollar as of 7:50 a.m. ET.

Meanwhile, Brent crude oil, the international benchmark, is higher by 2.9% at $US52.33 per barrel, and WTI crude oil is up by 3% at $US49.27 per barrel.

The ruble has historically tracked oil prices given the Russian economy’s heavy reliance on the commodity.

Energy ministers from Russia and Saudi Arabia said Monday that supply cuts should be extended until March 2018, which would be longer than the proposed six-month extension.

As for the rest of the world, here’s the scoreboard as of 7:54 a.m. ET:

  • The US dollar index is down by 0.4% at 98.87 ahead of several data points. Empire manufacturing will be out at 8:30 a.m. ET, and the NAHB Housing Market Index will be released at 10 a.m. ET.
  • The euro is up by 0.3% at 1.0966 against the dollar. Notably, money poured into the euro after the French election. Net short positioning in euro futures and options contracts fell by $US1.4 billion to $US7 billion, data released Friday by the US Commodity Futures Trading Commission showed.
  • The British pound is up by 0.2% at 1.2920 against the dollar. A poll released by ComRes for the Sunday Mirror and The Independent shows Theresa May’s Conservative Party with an 18-point lead over Labour before the June 8 national election, according to AFP.
  • The Australian dollar is up by 0.7% at .7438 per dollar.

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