Oil bursts higher as pivotal OPEC+ meeting looms, dollar eases

Oil bursts higher as pivotal OPEC+ meeting looms, dollar eases

Oil demonstrated its resilience in the week's opening session, rebounding from the biggest slump since November ahead of a key OPEC+ production-setting meeting.

Futures in New York rose toward $63 a barrel after losing 3.2 percent on Friday. The alliance gathers on Thursday and is expected to return some barrels to a market off to its quickest ever start to a year. But it's unclear how vigorously the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious”. A weaker dollar also supported oil prices.

In addition to OPEC+ cuts, crude's recovery from the impact of the pandemic has been driven by Asian demand, as well as fiscal and monetary stimulus in top economies. Data on Monday showed most key manufacturing economies gained ground last month, with China remaining in expansionary territory. In the US, President Joe Biden's $1.9 trillion Covid relief package moved a step closer to realisation after it passed the House of Representatives.

Crown prince also appointed one of his sons, Khaled bin Mohamed bin Zayed, as chairman of a smaller six-member executive board at Abu Dhabi National Oil Co.

Saudi Arabia's output reductions, the improving demand outlook, and growing popularity of commodities as a hedge against