As OPEC officials are set to announce crude output levels today, the dollar weakens due to concerns with inflation—crude oil prices are up 61% this year.
From Alexander Kwiatkowski, Bloomberg:
Sept. 9 (Bloomberg) -- Oil rose as the dollar weakened further before OPEC’s scheduled announcement today on crude output levels.
Crude added to yesterday’s gain of 4.5 percent in New York as the U.S. dollar dropped to the lowest level this year and on speculation that inflation will accelerate. The Organization of Petroleum Exporting Countries should maintain existing output quotas and improve compliance when it meets, the group’s production-monitoring committee recommended late yesterday.
“It’s very unlikely that they’re going to change production quotas,” Tobias Merath, head of commodity research at Credit Suisse Group AG in Zurich, said in a Bloomberg Television interview. “The market is basically where they want it to be. It’s around the $70 mark.”
