Crude oil and the dollar have been generally moving in the same direction since Donald Trump was elected president. OPEC production cuts and strong U.S. demand has offset the dollar influence on the price of oil. Oil prices and the dollar have moved together 12 other times since 1980, and when that happens it signals a robust economy and a situation where growth in the economy generally overshadows exchange rates.
Crude oil price reversed course after a mixed Energy Information Administration supply report. There were also comments that Saudi Arabia is going full out and will immediately implement its 486,000 barrel a day production cut to show they are serious about compliance and to inspire other producers to do the same.
The skeptics had it wrong! Saudi Arabia and Russia secured what the Saudi oil minister says, correctly, is a “historic deal" with non-OPEC nations. This deal can only be described as a major diplomatic achievement and was done despite long odds.
Russia plans to meet with some OPEC and non-OPEC nations on Friday to discuss unresolved issues related to a planned oil-output cut before wider talks the following day in Vienna, a Russian government source told Reuters.
Crude oil traders take pause ahead of oil inventories as angst about the Dec. 10 meeting between OPEC and non-OPEC nations this coming Saturday takes hold. While some are worried that somehow this meeting will derail the recent OPEC production cut accord, the Saudis say they, "absolutely expects non-OPEC producers to reduce their production.
Oil prices fell 1.5 percent to steady at around $53 a barrel on Friday after the biggest weekly rally since 2009 following OPEC's decision this week to cut crude output in order to rein in a global glut.
Russia plans to use its post-Soviet era record high November oil production as its baseline when it cuts output under this week's deal with OPEC, Deputy Energy Minister Kirill Molodtsov said on Friday.
WTI Crude staged a savage rebound during trading on Wednesday with prices clipping $49 following the shocking OPEC production cut deal which eased some concerns over the excessive oversupply in the markets.
Oil prices jumped more than 8 % on Wednesday to a five-week high as some of the world's largest oil producers agreed to curb oil output for the first time since 2008 in a last-ditch bid to support prices.