World, November 21, 2016 (Bloomberg): Oil jumped on optimism OPEC will agree to a supply-cut deal, buoying Asian energy stocks. The dollar built on last week’s surge, with traders all but convinced the Federal Reserve will pull the trigger on a rate hike in December.
Crude futures climbed as much as 1.3 percent in New York, adding to a 5.3 percent advance last week. With an OPEC meeting next week in Vienna, Iranian Oil Minister Bijan Namdar Zanganeh said it’s “highly probable” members will reach a consensus, according to comments published by the country’s Shana news service.
While the prospect of Donald Trump as U.S. president unnerved markets in the lead up to the election, his vow to boost infrastructure spending has turbo-charged bets on a Fed hike, underpinning the dollar’s steepest two-week rally versus the yen since 1988. Fed Chair Janet Yellen told lawmakers that the central bank is close to boosting borrowing costs, with speculation the president-elect will bolster fiscal stimulus already fueling bets on further policy tightening in 2017. In Europe, Angela Merkel said she’ll run as German chancellor again, news that may calm markets after an exceptional few weeks.
Oil has rebounded since hitting the lowest in almost two months last week as members of the Organization of Petroleum Exporting Countries began making renewed diplomatic efforts before their meeting Nov. 30 to finalize the output deal informally agreed to in September. The group is seeking to trim output for the first time in eight years, a plan that’s been complicated by Iran’s commitment to boost production and Iraq’s request for an exemption to help fund its war with Islamic militants.