Oil up 2 percent after early swings on dollar, OPEC

(Reuters) By Barani Krishnan – Oil staged its first rally in three days on Friday, gaining 2 percent, despite warnings of more oversupply as a result of OPEC’s decision to keep pumping crude without restraint. A strong dollar, which often depresses commodity prices, failed to stem the late runup in Brent and U.S. crude futures, despite limiting their gains in choppy early trade. “I guess some people wanted to take their oil shorts off before the weekend and put them on again next week,” said Tariq Zahir, an oil bear at Tyche Capital Advisors in Laurel Hollow, New York. “Otherwise how do you have a runup on a day like this, when OPEC promises to flood the market with more supply?” Crude’s biggest producers and shippers in the Organization of the Petroleum Exporting Countries agreed at a meeting in Vienna to stick to a policy of unconstrained output for another six months. Oil prices rose right after the decision, as market bulls tried to make up for losses since Wednesday. Brent and U.S. crude fell nearly 3 percent a day in those previous two sessions as traders locked in advance bets that OPEC would not cut supply. But the dollar’s … continue reading

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