Futures climbed as much as 0.7 percent in New York after slumping 6.7 percent last week. A six-month extension to the output cut deal is necessary, the committee concluded, according to delegates with knowledge of the matter. The U.S. dollar weakened against the euro after centrist Emmanuel Macron and far-right nationalist Marine Le Pen headed to the second round of voting, which a snap poll by Ipsos showed Macron would win.
Oil’s rally has faltered amid concern rising U.S. production will offset efforts by the Organization of Petroleum Exporting Countries to trim a global glut. Macron securing a spot in the second round avoids the scenario of a contest between the anti-European Union Le Pen and the Communist-backed Jean-Luc Melenchon, curbing threats to the euro zone and encouraging investors to embrace more risk.
“While the increased popularity of the centrist candidate is not a strong market driver, a collective sense of relief that the global economy is over another hurdle should see a risk-on rally,” Michael McCarthy, chief markets strategist at CMC Markets in Sydney, said in a note. “Gold is under selling pressure and oil and copper are receiving support.”
West Texas Intermediate for June delivery rose as much as 33 cents to $49.95 a barrel on the New York Mercantile Exchange, and was at $49.87 at 12:11 p.m. in Hong Kong. Total volume traded was about 15 percent above the 100-day average. Prices closed at $49.62 on Friday, the lowest since March 29.
Brent for June settlement rose as much as 40 cents, or 0.8 percent, to $52.36 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $2.40 to WTI.
Compliance to supply curbs by OPEC and its allies from outside of the group was 98 percent in March, an improvement from February, the technical committee concluded, according to a delegate with knowledge of the matter. The committee monitors adherence to the cuts and doesn’t make policy.
The Bloomberg Dollar Spot Index lost 0.4 percent. A weaker greenback bolsters the appeal of commodities.
- U.S. drillers targeting crude added 5 rigs to oil fields, boosting the count to 688, according to data Friday from Baker Hughes Inc.
- Exxon Mobil Corp. won’t be allowed to bypass U.S. sanctions against Russia to resume drilling for oil in a joint venture that seeks to tap billions of barrels of that country’s crude.