Oil climbs with dollar volatility and focus on OPEC+ supply move
BNN Bloomberg
Oil erased earlier losses amid volatility in the U.S. dollar and a focus on whether producer group OPEC+ might curb output following a price rout.
West Texas Intermediate, which had been down as much as 2.5 per cent earlier, traded higher in New York. Oil futures markets have been volatile for months amid lackluster liquidity.
Prices have now plunged almost 40 per cent from their peak earlier this year, hitting revenues of petrostates, some of which form the Organization of Petroleum Exporting Countries. Russia is having to discount its barrels because of Western sanctions, and is pushing OPEC and its allies to cut their collective output by 1 million barrels a day when the producer nations meet next week, Reuters reported Tuesday.
The latest thrust of the market’s retreat has come amid a deteriorating outlook for global growth. The Federal Reserve is on its most-aggressive interest rate hike path in decades in the US, raising fears that central banks are willing to allow recessions in order to tame inflation.
