USD weakens as oil prices surge on OPEC production reports

WTI crude oil surged $0.80 in volatile trading following conflicting OPEC+ production reports, impacting commodity-linked currencies and the US dollar. Initial weakness came after Reuters reported OPEC+ was considering fresh output increases this weekend, causing oil to decline sharply. However, Bloomberg subsequently confirmed OPEC pumped an additional 400k barrels per day in August, aligning with planned production targets. The rapid oil price recovery strengthened commodity currencies like CAD and NOK against the USD. Technical indicators show WTI testing resistance at $71.50, with support at $69.80. The uncertainty around OPEC's weekend meeting continues to drive volatility in energy markets. Traders should monitor USD/CAD closely, as the pair typically shows inverse correlation with oil prices. Further OPEC production decisions could significantly impact dollar crosses, particularly against commodity-exporting currencies.