Commodities: Crude bounds ahead on hopes of a November output cap by OPEC

Crude oil futures bounded ahead on Monday as traders hoped for OPEC to introduce a production cut when it next meets on 30 November, and as the US dollar retreated.

At about 15:32 GMT, Nymex-listed West Texas Intermediate was up 2.6% to $46.88 a barrel, while Intercontinental Exchange-traded Brent rose 3.03% to $48.28 a barrel.

Around the same time, the dollar-spot index was down 0.37% to $100.840.

OANDA senior market analyst Craig Erlam commented that commodities appeared to be benefiting as the dollar retreated from highs, and in particular oil on hopes of an OPEC agreement.

"The initial deal had been thrown into doubt by the unwillingness of certain members to take part in the cut but it would appear people close to the talks remain confident," Erlam said.

"(Russian president) Vladimir Putin appears to be one of those that has high hopes of a deal being done which would pave the way for Russia to take similar steps," he added.

The general view in the market was that if OPEC succeeded in reaching an output cap, crude would spike higher.

FXTM research analyst Lukman Otunuga noted comments from Iran's oil ministers and Putin on their optimism of OPEC agreeing to a proposed supply cut coupled with the so-called Trump effect has renewed some investor attraction towards oil.

"While the abrupt short-term gains are undeniably impressive, WTI still remains dogged by the overwhelming oversupply woes," he said.

"The current technical bounce could act as an opportunity for sellers to pounce if OPEC repeats the events of Doha at the formal November meeting."

Meantime, Comex-quoted metals rose. Gold was up 0.49% to 1214.6 an ounce, with silver adding 0.32% to 16.78 an ounce and copper rising 2.18% to 253.2 cents a pound.

On London Metals Exchange, three-month prices for tin, zinc and aluminum were marginally higher, but that for copper was down 1.32% to $5423 a MT.

Turning to agriculturals, Chicago Board of Trade-listed corn was up 0.21% to 354.25 cents a bushel and wheat rose 0.35% to 426.75 cents a bushel.

On ICE, cocoa frothed up 1.03% to $2450 a MT and cotton No.2 weaved its way 0.24% higher to 72.49 cents a pound. Live cattle was up 0.94% to 109.88 cents a pound.