Oil rose alongside a broad market rally, drawing support from signs that OPEC+ may delay a planned output increase as well as a weaker dollar.
U.S. benchmark crude futures climbed as much as 4.1%, the most in a month, before paring gains. The market also took its cue from stronger equities as millions of Americans headed to vote on election day. A weakening dollar also boosted the appeal for commodities priced in the currency, with the Bloomberg Dollar Spot Index falling as much as 0.8%.
OPEC and its allies will “accelerate” the recovery in oil markets at their next meeting, the group’s top official said, in another hint about a potential delay to a production hike scheduled for January. Algeria said that -- along with Saudi Arabia, Russia and Iraq -- it’s trying to persuade the rest of OPEC+ to extend current supply cuts, state-run news agency APS reported.
“This big selloff last week was a wake-up call to the OPEC+ group,” said John Kilduff, a partner at Again Capital LLC. “The renewed shoulder-to-the-wheel type of action that appears to be emerging is helping to support prices.”
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