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Oil Preserves Huge Gains Despite Dollar’s Bounce

September 2, 2016 at 18:49 by Vladimir Vyun

Poor nonfarm payrolls led to a rally of prices for raw materials during the Friday’s session. While the US dollar recovered after the initial loss, the commodity market remained strong. Crude oil logged especially big gains, rallying more than 3%. Oil got an unexpected support from Russian President Vladimir Putin, who voiced in an interview with Bloomberg his support for the idea of major oil producers putting a cap on output:

From the viewpoint of economic sense and logic, then it would be correct to find some sort of compromise. I am confident that everyone understands that. We believe that this is the right decision for world energy.

Prices for crude remained elevated even after the report that showed yet another increase of oil rigs count in the longest streak of Giant Bounce House weekly increases since 2014. Baker Hughes reported that the number of US oil rigs increased this week, albeit just slightly (by one). Analysts argue that the rise is going to end soon if support from speculations about production freeze wanes.

October futures for WTI crude oil climbed as much as 3.41% to $44.63 per barrel as of 18:39 GMT on NYMEX today. November futures for Brent crude soared 3.39% to $46.99 per barrel on ICE.

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