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OPEC likely to reach deal in Vienna, due to pressure

Oil&Gas Materials 21 November 2016 14:37 (UTC +04:00)
This time, OPEC’s impetus to do a deal on oil output is much stronger.
OPEC likely to reach deal in Vienna, due to pressure

Baku, Azerbaijan, Nov.21

By Leman Zeynalova – Trend:

This time, OPEC’s impetus to do a deal on oil output is much stronger, according to Wayne Gordon, commodity and currency strategist at UBS Wealth Management.

Donald Trump’s victory in the US presidential election and also the fact that there has been quite significant pressure on oil prices over the last couple of weeks will draw OPEC back together, he said on CNBC TV Nov.21.

“We think that they will come up with some arrangement. This time, the impetus to do a deal is much stronger, because they see the pressure on oil prices over the last few weeks,” added Gordon.

In September, OPEC producers agreed during the informal meeting in Algiers to cut down the oil output to 32.5 million barrels per day (bpd) from current production of 33.24 million bpd.

How much each country will produce is to be decided at the next formal meeting of OPEC in November.

Oil prices rose around 1 percent on Nov.21 as OPEC moved closer to an output cut to rein in oversupply that has pressured prices for over two years.

Brent crude futures were trading at $47.31 per barrel at 07:43 GMT, up 65 cents, or 0.96 percent, from their last settlement.

US West Texas Intermediate (WTI) was up 0.9 percent, or 41 cents, at $46.10 a barrel.

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