Oil rises 2% on talk of longer supply cut

Korean People's Army personnel wave after a military parade in Pyongyang marking the 105th anniversary of the birth of late North Korean leader Kim Il-Sung

Korean People's Army personnel wave after a military parade in Pyongyang marking the 105th anniversary of the birth of late North Korean leader Kim Il-Sung

It has been concerned with the increase in USA shale gas production, and so increased its oil output to drive down prices in a bid to make shale gas exploration economically unattractive. The pair has made session high at 1.0988 and hit lows at 1.0963 levels.

USD/CAD is supported at 1.3594 levels and is trading at 1.3636 levels.

Earlier this month, oil prices hit a five-month high, but have wobbled over fears that producers may be unwilling to hold their nerve and limit production.

North Korea said on Monday it had successfully tested a newly developed mid-to-long range missile on Sunday aimed at verifying the capability to carry a "large scale heavy nuclear warhead".

Chinese retail sales for April beat expectations to rise 10.7 percent from a year ago, while property investment growth accelerated to 9.3 percent in the first four months of 2017 from 9.1 percent in the first quarter.

Before we get into this topic, let me remind readers that crude oil prices are determined on the global market and natural gas & natural gas liquids ("NGLs") trade on regional markets. "An extension through end of the year was widely expected, yet garnering little traction in price, so they must have figured that they had to up the ante for the market to take them seriously".

Copper rose 0.96 percent to $5,613.00 a tonne.

The Korean won weakened, with the dollar up 0.25 percent at 1,125.20 won on Monday. Australia's S&P/ASX 200 rose 0.38 percent, due largely to gains in its energy sub-index, which was up 0.9 percent. The central bank surprised markets at its policy meeting last week, adopting a more dovish tone than expected and warning that New Zealand's strong economic indicators, particularly inflation, might not have as much momentum as economists and markets thought. The New Zealand dollar also climbed against the dollar, last trading at USD 0.6906.

NEW YORK, May 15 (Reuters) - Commodity-linked stocks and world currencies got a lift on Monday from a surge in crude oil prices after major producers Saudi Arabia and Russian Federation said they would extend oil supply cuts into 2018.

Global benchmark Brent was also up 1 percent to $51.37 a barrel.

However, the U.S. is not included and its high output could undermine efforts.

Oil prices have sold off sharply at times this year - most recently earlier in May - as investors have become doubtful OPEC is making progress toward its goal of working off a glut of crude that has weighed on the market. USA gold futures gained 0.48 percent to $1,233.60 an ounce.

USA producers rushed to lock in oil prices above US$50 after OPEC's deal was announced, and most of the new oil derivatives since Q4 2016 have been added at strike prices between US$50 and US$60 a barrel, Wood Mackenzie said in an analysis at the end of March.

The U.S. dollar was also hurt by weak data on NY state area manufacturing.

Gold prices added 0.2 percent to $1,230.06 an ounce, extending Friday's 0.3 percent gain, thanks to the weaker dollar.

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