FX.co ★ Oil Extends Rally On Expectations Of Deeper Supply Cuts

Oil prices rose on Monday to extend strong gains from Friday amid mounting expectations that a group of major producers will deepen its voluntary production cuts at a meeting later this month.

Benchmark Brent crude futures rose 0.7 percent to $81.18 per barrel in European trade, while WTI crude futures were up 0.8 percent at $76.64.

West Texas Intermediate Crude oil futures for December jumped more than 4 percent on Friday but the most active futures contract still posted its fourth straight weekly loss following an increase in U.S. crude inventories and amid concerns about waning demand in the U.S. and China.

The dollar hovered near two-month lows today, helping oil prices push higher.

The dollar added to last week's sharp losses on bets that global central banks will start cutting interest rates next year to support uneven economic recovery.

Meanwhile, there is buzz that OPEC+ is considering deeper output cuts at the 26 November meeting in Vienna to shore up prices.

The group-mainly Saudi Arabia and Russia-have already pledged total oil output cuts of 5.16 million barrels per day, or about 5 percent of daily global demand, in a series of steps that started in late 2022.