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Crude Oil Rallies on Weak Dollar, OPEC Production Cuts

August 27, 2018 at 19:24 by Vladimir Vyun

Crude oil rallied today, joining precious metals, as the weakness of the dollar boosted commodities priced in the US currency. The greenback got hit by last week’s comments from US President Donald Trump, who was criticizing the idea of raising interest rates by the Federal Reserve. Later, the currency also suffered after the speech of Fed Chair Jerome Powell, which was considered by markets to be dovish.

Crude also gained on reports that the Organization of Petroleum Exporting Countries and its allies participating in the production cut deal reduced their output more than was agreed upon. Reuters reported, citing anonymous sources, that the oil producers cut output by 9% more than the agreement demanded.

October futures for delivery of WTI crude oil gained 0.2% to $68.86 per barrel as of 19:11 GMT on NYMEX today. Brent crude advanced 0.47% to trade at $76.18 per barrel on ICE.

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