Oil prices rose this morning, partly due to the weaker greenback, despite mounting pessimism over the ability of global producers to a reach a freeze deal.
Crude received a shot in the arm after the US dollar index fell one per cent today, in the wake of softer US economic data. This is a boon for commodities investors, because it effectively cheapens dollar-denominated oil contracts.
Brent crude, the global benchmark, led the charge rising by as much as 1.44 per cent to $47.94 per barrel this morning. Its US counterpart, West Texas Intermediate crude, swelled as much as 1.32 per cent to $45.42.
Earlier this week, oil tsars Russia and Saudi Arabia agreed to cooperate on stabilising the embattled market. However, the deal fell short of some speculators' hopes for immediate action for a production freeze.
Crude has been buoyed recently by hopes that the world's biggest oil producers will be able to hash out a production freeze deal at informal talks in Algeria on 26-28 September — but analysts remain unconvinced.
"The market is reacting to all those headlines but I think if there is a 'Doha Two', it's probably going to be at the end of March or April 2017 and until then, there will continue to be discussions and negotiations, which will make a lot of headlines," Petromatrix strategist, Olivier Jakob, said.
Opec rebel Iran, which played a role in the collapse of talks in Doha earlier this year, has said it will only freeze production if its peers recognise its right to return market share to pre-sanction levels.