Oil prices and energy shares swept higher on Thursday after OPEC agreed to cut crude output to clear a recent glut, while the dollar and bond yields rose sharply on prospects that resulting inflationary pressures will lead to higher interest rates. U.S. crude oil CLc1 added to overnight gains of 9 percent to reach US$50.00 a barrel for the first time since late October. The jump in oil prices added to inflation expectations in the United States, which were already high on prospects that president-elect Donald Trump would adopt reflationary policies using a large fiscal stimulus. As a result, US Treasuries resumed their rout, with prices sliding and yields spiking, to send the dollar rallying against its peers. If the bounce in oil prices gathers pace after the OPEC deal it was expected to have a broad implication on the global economy.

Source: Egypt Independent December 01, 2016 09:15 UTC