Oil prices rebound strongly from 10-month lows as OPEC+ rules out production increases

Oil prices rose in European trade away from 10-month lows while on track for the first profit in the last five days as OPEC+ refuted reports of an increase of 500 thousand bpd in output. 

Prices were also buoyed by a weaker dollar against a basket of major rivals, while traders expect later US data to show a drawdown in US crude stocks. 

Global Oil Prices

US crude rose 1.8% to $81.71 a barrel, while Brent rose 1.75% to $89.16 a barrel, with a session-low at $87.40.

US crude lost 0.1%  on Monday, hitting ten-month lows at $75.30, while Brent fell 0.25% to $82.38 a barrel, the lowest since January.

OPEC + Output

The Wall Street Journal released a report that OPEC + might increase output by 500 thousand bpd.

Saudi Arabia ruled out such an increase and asserted the current 2 million bpd cut in production will continue until the end of 2023.

The Dollar

The dollar index fell 0.4% on Tuesday away from two-week highs at 107.99, and on track for the first loss in four days on active profit-taking.

A weaker dollar underpins commodity and mineral prices as they become cheaper to holders of other currencies.