Oil rebounds as dollar falls & speculation over an emergency OPEC meeting rises

By FXStreet FXStreet – Oil prices ultimately sees a rebound. It rose sharply today in the Asian hours, after recording large gains from the previous sessions. The oil price rise is the result of a drop in the dollar index which is noted to have hit a seven-week low and also on uncomfirmed reports doing rounds that there could be discussion soon on oil production cut.

The U.S. currency dropped 0.2 percent today against a basket of other currencies on weak US data as well as an indication given by New York Fed President William Dudleythat subsequent rate hikes will be further delayed. The dollar had hit its 14-week low against the euro yesterday. It was also at its weakest for a wee k against the Japanese yen.

U.S. WTI light sweet crude prices rose 1.1 percent at $32.63 a barrel and Brent crude was up 0.8 percent at $35.32 a barrel around noon in Asia. In the previous sessions WTI ended 8 percent higher while Brent had ended 7 percent higher.

Oil price also received a boost from speculation that there is a likelihood of an emergency OPEC meeting. Also, a deal between OPEC and non-OPEC countries to …read more

Source:: FX Street