Oil Rises Above $80 After China News and OPEC Speculation

Brent crude oil traded near $81 a barrel on Friday after China cut interest rates and on speculation OPEC could agree next week to reduce oil production.

China’s central bank cut its benchmark interest rates for the first time in more than two years on Friday to lower borrowing costs and support an economy on track for its slowest annual growth in 24 years.

The rate cut added to a positive mood among oil traders anticipating an agreement by the Organization of the Petroleum Exporting Countries on Nov. 27 to trim production in an attempt to bolster oil prices.

Brent surged $2.19 to trade at $81.52 shortly before 8 a.m. EDT. The benchmark looked set to snap an eight-week losing streak if the gains were sustained on Friday.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza