Oil Breaks Above $35 as OPEC Russia Cooperation Chatter Continues

Oil surged as much as 8 percent to above $35 per barrel on Thursday, hitting a three-week high and bouncing sharply away from a 12-year low set this month, as expectations built that major producers may cooperate to cut output.

Oil is up around 30 percent from its lowest since 2003 set earlier in January. Gains have gathered pace this week on speculation that Russia and OPEC may agree to reduce production.

Russian Energy Minister Alexander Novak said Saudi Arabia had proposed to cut oil production by up to 5 percent by each country in order to support weak prices.

via Reuters

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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