Oil is crushing it on the new week

Oil is up by more than 5% today

Upbeat risk tones and positive headlines over the weekend is certainly helping to keep oil buyers pleased so far as the week begins. Price is now up by 5.2% on the day to $53.60. Things are looking up ahead of the OPEC+ meeting in Vienna on Thursday as Russia and Saudi Arabia agreeing to extend their cooperation into next year.

With Saudi already talking up production cuts ahead of the meeting, it basically means that Russia will be on board such a proposal as well.

From a technical perspective, the bounce comes after sellers failed to find a daily break below the $50 psychological level with the 76.4 retracement level @ $50.27 helping to provide daily support as well. A break back above $55 will be a good signal for buyers to stop the rout seen since mid-October. Then again, this is highly dependent on what OPEC+ members decide later this week.

The jump in oil is what is helping to keep the loonie underpinned still with USD/CAD at session lows of 1.3207 currently.