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london. —Oil prices rose 3 percent on yesterday to their highest in three weeks, catching a lift from a weaker dollar, as OPEC appeared to be moving closer to agreeing an output cut when it meets next week. Brent crude futures LCOc1 gained $1,44 to $48,30 a barrel, having touched their loftiest level since November 1, while US West Texas Intermediate futures CLc1 strengthened by $2,01 to $47,70 a barrel.

Brent has risen 11 percent in a week since OPEC’s de facto leader Saudi Arabia started a diplomatic charm offensive to persuade the group’s more reluctant members to join its proposed output cut. The dollar eased off last week’s 13-1/2-year highs as Treasury yields nudged lower, bolstering oil and the broader commodities complex including copper CMCU3 and gold XAU.

“The possibility for such a deal has increased, but there is also the risk of course that the market is overreacting here, especially as the agreement will really have to be a surprise to push oil prices very much higher,” ABN Amro chief energy economist Hans van Cleef said.

“The most important part is that (OPEC) will need to stick to the deal, but it’s also the most difficult.”

Russian President Vladimir Putin said he saw no obstacle to non-OPEC member Russia agreeing to freeze oil output, which at more than 11 million barrels per day is at a post-Soviet high. – Reuters.