Oil climbs on prospect of OPEC cuts

Share markets turned mixed in Asia on Monday amid conflicting signals on the prospects for a truce in the Sino-U.S. trade dispute, while the Federal Reserve’s newly-found concerns over the global economy constrained the dollar. Wall Street had firmed after U.S. President Donald Trump said that he may not impose more tariffs on Chinese goods after Beijing sent a list of measures it was willing to take to resolve trade tensions. Federal Reserve policymakers are still signalling rate increases ahead but also sounded more concerned about a potential global slowdown, leading markets to suspect the tightening cycle may not have much further to run.

British Prime Minister Theresa May said on Sunday that toppling her would risk delaying Brexit as she faces the possibility of a leadership challenge from within her own party. With both pro-EU and pro-Brexit lawmakers unhappy with the draft agreement, it is not clear she will be able to win the backing of parliament, raising the risk Britain leaves the EU without a deal.

The dollar eased slightly versus other major currencies on Monday after Federal Reserve officials expressed caution over the global growth outlook, prompting traders to reassess the pace of future U.S. interest rate increases.

In Currencies the Dollar index (USDNDX) traded at 96.509 again a basket of currencies retracing from 97.69. EURUSD is trading near 1.1400 handle ahead of the EU session. USDJPY backed off to 112.72 heading downside towards 112.00. Sterling remained vulnerable at $1.2826 after political turmoil over Brexit caused steep losses last week.

In commodity markets, Gold prices slipped after Federal Reserve officials cautioned on the global economy.

Oil prices rose by around 1 percent on Monday amid expectations that top exporter Saudi Arabia will push producer club OPEC to cut supply towards year-end. OPEC led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 million barrels per day of supply to adjust for a slowdown in demand growth and prevent oversupply. Brent crude oil futures were at $67.36 per barrel up 60 cents, , from their last close .U.S. West Texas Intermediate (WTI) crude futures, were up 71 cents, at $57.17 per barrel.