Abu Dhabi: Oil prices increased to their highest level since late October on Tuesday on signs Opec members countries are close to a deal to cut output to rebalance oil markets in their next meeting in Vienna on November 30.
Brent, the global benchmark was trading at $49.23 per barrel, up by 0.67 per cent at around 11:30 am UAE time. US crude West Texas Intermediate was up by 0.70 per cent at 448.58 per barrel.
“The market is quite optimistic that a deal is going to be reached next week. The market is expecting a deal to be announced and enforced next week though there is still quite a lot of uncertainly on what comes out of the meeting,” said Edward Bell, a commodity analyst from Emirates NBD speaking to Gulf News.
“Until we get a firm decision from Opec that they are going to remove barrels from the market, I don’t think we can get too overtly bullish about the correction for prices.”
When asked whether oil prices could cross $50 per barrel mark in the coming days, he said it is very much possible due to positive statements from Opec energy ministers.
“I think in the current sentiment, if you get more news from Opec energy ministers that meetings are going well and deal looks very likely, that would be a strong catalyst for prices to push above $50 per barrel mark.”
The fourteen member Opec group would be meeting on November 30 to implement an accord that the member countries reached in Algeria on September 28 to reduce output to a range of 32.5 to 33 million barrels a day from the present figure of 33.64 million barrels per day.