Iraq Support of OPEC Deal Boosts Crude Price

Oil prices gained more than 2 percent on Monday in volatile trading, recouping losses as the market reacted to the shaky prospect of major producers being able to agree to output cuts at a meeting on Wednesday.

OPEC was scrambling to rescue the deal on Monday, with analysts warning of a sharp price correction if the producer group fails.

After falling as much as 2 percent, prices spiked as Iraq’s oil minister said the country would cooperate with the group to reach an agreement “acceptable to all.”

Brent crude futures fell as far as 2.1 percent before trading up $1.01 at $48.25 per barrel by 10:06 a.m. (1506 GMT).

U.S. West Texas Intermediate (WTI) crude futures were trading up $1, or 2.2 percent, at $47.06 per barrel.

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