Oil prices gained nearly 3 percent on Tuesday, supported by OPEC-led production cuts, which Saudi Arabia said it would surpass by more than half a million barrels per day (bpd), and by US sanctions against Iran and Venezuela.
The Bank of Japan (BoJ) is expected to cut its inflation forecasts at next week’s rate review, sources say, a sign slumping oil prices and a darkening global economic outlook are heightening challenges for hitting its ambitious two percent target.
The US dollar strength, oil prices and next year’s general elections will determine the rupee’s direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, said a report by Standard Chartered.
Oil prices jumped by more than 5 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.
The administration of US President Donald Trump is reportedly drafting a bill that would authorize legal action against the Organization of the Petroleum Exporting Countries (OPEC) for “artificially raising oil and gas prices”.
Oil rose by more than one percent on Monday, set for its largest one-day increase in a month after Saudi Arabia said OPEC and its partners believed demand was softening enough to warrant an output cut of one million barrels per day.