Oil Gains On OPEC Production Cut Talk, Libya Paring Output
NEW YORK, Sept 16 (Reuters) - U.S. crude futures rose by almost $2 and Brent by more than $1 on Tuesday on the prospect of a production cut by OPEC as well as on a weakening dollar and news that Libya had curbed output after rockets hit an area near a refinery.
The dollar began selling off just ahead of a meeting of the U.S. Federal Reserve, sending the euro to a near two-week high against the U.S. currency, and boosting both Brent and U.S. crude, brokers said.
A weakening dollar makes it cheaper for holders of other currencies to purchase crude oil contracts priced in dollars.
"The weakening dollar is supporting both benchmarks," said John Kilduff, a partner at Again Capital LLC.
November Brent rose $1.17 to settle at $99.05 a barrel. The October contract expired and went off the board on Monday at $96.21.
Brent is down 11 percent in the third quarter, its biggest quarterly drop since the second quarter of 2012. It fell to a 26-month low on Monday, tumbling from above $115 in June because of supply increases and sluggish growth in demand.
The front-month U.S. October crude settled $1.96 higher at $94.88 a barrel, after earlier touching a high of $95.15. The October contract expires on Sept. 22.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.