The following is an excerpt from Barani Krishnan | October 4, 2016 | reuters.com |
Oil prices drifted on Tuesday, with Brent hitting four-month highs on a rally inspired by OPEC plans to tighten output before pulling back as a surging dollar weighed on greenback-denominated commodities.
Weaker equity prices on Wall Street also limited oil's run higher. [.N] .DJI
Brent crude LCOc1 was up 13 cents at $51.02 a barrel by 11:19 a.m. EDT (1519 GMT). It rose to $51.37 at the session peak and its highest since June 10. Earlier, Brent fell to $50.34. after settling on Monday at $50.89.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 3 cents at $48.78. The session high for WTI was $49.13, its highest since July 5.
The dollar hit a 13-day high against a basket of major currencies .DXY on bets for a hike in U.S. interest rates before the year-end. [USD/]"The OPEC deal looks more and more like hot air but oil's still very technically driven," said Stig Rasmussen, a senior proprietary trader at Danske Commodities in Aarhus, Denmark.
"For Brent, the next target is $52.86. I imagine at that point shale oil companies will be hedging bigger volumes for 1-2 years ahead."
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