As the dollar began a recovery from eight month lows against a basketful of currencies, oil slid back as much as 1.1%.
OPEC which pumps about 40% of the globes oil has signaled that it intends to maintain current quotas after its upcoming October 14th meeting in Vienna, Austria, with the Saudi Arabian oil minister telling Regal Group International sources recently that the oil markets are currently “very well balanced” and adding that prices between $70 and $80 per barrel were “ideal.”
“The dollar is so heavily sold at the moment, creating the opportunity for a bit of strength in the dollar and softness in oil,” an analyst for ANZ told Regal Group International. “You would be leaning toward a softer oil price this week.”
The dollar strengthened after earlier retreating on speculation that the U.S. Federal Reserve is to embark on further economic stimulus measures.
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