Oil Prices Climb On Weaker Dollar
Oil prices rose sharply on Tuesday, with a weaker dollar and expectations that OPEC+ will postpone its planned easing of output cuts in January adding to the positive sentiment.
Benchmark Brent crude jumped 3.6 percent to $40.39 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 3.9 percent at $38.26.
The dollar edged lower amid expectations that Democratic Party candidate Joe Biden might push for a bigger U.S. stimulus and take a freer approach to trade, if he unseats President Donald Trump.
National polls give a firm lead to Joe Biden, but it is a closer race in key battleground states.
OPEC+ is scheduled to meet on Nov. 30 and Dec. 1 to discuss production plans. It is expected that the meeting will decide on delaying plans to ramp up output.
On Monday, Energy Minister Alexander Novak met with Russian producers to discuss delaying an easing of production cuts by three months as demand falters.
OPEC and allied producers agreed in April to withhold 9.7 million barrels a day or about 10 percent of global supply, from the market to help raise prices out of a historic slump caused by the coronavirus pandemic.
As the global economy recovered, the coalition eased those curbs by 2 million barrels a day in August.
The material has been provided by InstaForex Company – www.instaforex.com