Oil peaks higher as OPEC, Saudi Arabia cut further

• Oil (WTI) pops higher and flirts with a break of $90

• The US Dollar storms out the gates stronger on Tuesday after a lacklustre performance on Monday.

• The American Petroleum Institute will release its weekly Crude Oil numbers on Tuesday.

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Oil prices are spiking higher and must have US president Joe Biden choking on his coffee this morning. The recent OPEC report reveals that Saudi Arabia is extending its supply cuts and that translates into a 3 million dollar barrel shortage, being the biggest deficit in over a decade. With US Western Texas Intermediate (WTI) pushing towards $90 and Brent already at $91, this means inflation worries with US gasoline prices bound to jump higher at the pump.

Meanwhile, the US Dollar is roaring back on Tuesday, erasing its losses from Monday when China tripped the Greenback by a staggering strong fixing of its Yuan. The Greenback lost substantially against the Japanese Yen and Australian Dollar as well in the fallout of that strong Yuan fixing against the US Dollar. At the time of writing, the US Dollar Index (DXY) had nearly pared back all losses from Monday and was trading almost flat for the week.