Oil is up by nearly 3% on the day now
Weakness in the dollar is also helping to boost commodity prices in general but oil is getting an added tailwind from an earlier report by Reuters saying that OPEC producers are looking towards cutting production by 1.3 million bpd. As mentioned then, that is more of a better end of the deal for oil prices relative to expectations as we head towards the OPEC+ meeting on Thursday.
Although it is mentioned that the key impediment now is Russia, the fact that Russia struck an accord with Saudi Arabia over the weekend should boost chances and hopes for an agreed production cut to materialise from the meeting in Vienna later this week.
From a technical perspective, price now runs to a high close to $54.50 with buyers eyeing the mid-November 2017 lows around $54.81 and the $55.00 handle as the next resistance levels.