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Oil Gains Alongside Dollar Weakness and Potential OPEC+ Action

  • Brent closes above $100 for the first time in three weeks
  • Kazakh oil’s key route to market may face months of curbs
Updated on

Oil rallied as the dollar wobbled and markets considered the possibility of OPEC+ cutting production in order to stabilize the volatile futures market. 

West Texas Intermediate rose 3.7% to settle above $93 a barrel on Tuesday after getting an extra boost as the dollar weakened, making commodities priced in the currency more attractive. Brent settled above $100 for the first time since the beginning of August. Traders are weighing the potential of OPEC+ decreasing its crude output after Saudi Oil Minister Prince Abdulaziz bin Salman told Bloomberg futures prices are increasingly disconnected from fundamentals. Looking ahead, a US oil crude inventory report will be released Wednesday morning, offering markets a glimpse into the country’s current demand for oil.