Oil: what a mover, to highest levels since July 2015's glut sell-off from $56

Oil is much higher in early Asia on the back of the weekend news with a gap through $52.00 and has reached a high of $54.31 in WTI so far.

The 13 non OPEC members agreed to cut crude output by 558,000bpd, of which Russia have pledge to cut by 300,000bpd. This move will be in addition to the 1.2 million barrels a day in cuts from OPEC members, and this is amounting to a total of almost 2% of global oil supply. 

This accord between OPEC and non-OPEc producing nations is a pact designed to reduce a global oversupply of crude and subsequently lift the value and prices of oil in a bid to support the economies that have been hit hard by the glut of oil that started over two years ago.

Across the board, the dollar is mixed, but losing its shine rapidly, especially vrs the oil related bloc such as the pound and the Canadian dollar. We are now at the highest levels in WTI since the summer of 2017 when prices dropped below $56 and plummeted through $51.50 eventually on the oil glut that finally took the price all the way down to $28.93 in February earlier this year.