Over the past few months, oil prices continue to increase and it was at its highest level at October. Today, OPEC member countries are to close a deal (to cut output) in order to re-balance oil markets in their next meeting in Vienna (which is stated for 30th November).
Brent, the global benchmark was trading at $49.23 per barrel, up by 0.67 % at around 11:30(UAE time). Also, US crude West Texas Intermediate was up by 0.70 % at $48.58 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. 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” said Edward Bell (a commodity analyst from Emirates NBD) in an interview.
During the interview he was also asked “Whether oil prices could cross $50 per barrel mark in the coming days?” He replied that it is possible and the backup is the 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” Edward added.
The meeting that is scheduled to occur on the 30th November would be the 14-ember OPEC group meeting. This meeting would centre on the implementation of a consensus that the member countries reached in Algeria on September to reduce output to a range of 33-32.5 million barrels a day.