Oil prices edged up for a second day on Wednesday, recovering from a drop below $50 a barrel, after weekly data showed a fall in U.S. crude inventories, while a stronger dollar tempered gains. The dollar rose to its highest in over three months after a voting member of the U.S. Federal Reserve's policy-setting committee expressed support for an interest rate hike in September. A stronger dollar tends to undermine crude oil by making it more profitable for non-U.S. investors to sell it. Growing oversupply, slowing demand from China and the prospect of crude flooding onto the market from Iran after Tehran's deal with the West over its nuclear program have knocked 21 percent off the oil price this quarter.
Oil rose for a fourth session in a row on Monday, buoyed by the prospect that top exporter Saudi Arabia will push OPEC and maybe Russia to cut supply towards the end of this year.
The Organization of the Petroleum Exporting Countries, led by Saudi Arabia, is pushing for the group and its partners to reduce output by 1 million to 1.4 million barrels per day to prevent a build-up of unused fuel.
“It appears that the market takes a production cut for granted. We’ll see if it is right after the next OPEC meeting on December 6. It is not unreasonable to anticipate stable prices until then,” PVM Oil Associates strategist Tamas Varga said.
more at: https://www.reuters.com/article/us-global-oil-idUSKCN1NO01M