Futures jumped as much as 8.8 percent percent in London Wednesday. OPEC is very close to a deal that would remove 1.4 million barrels a day of collective production, a delegate to a ministerial meeting underway in Vienna said. An agreement would include an additional 600,000 barrels a day of cuts from non-OPEC suppliers, the delegate said. Russia, the biggest producer outside the bloc, has said that if OPEC agrees individual country quotas, it is ready to participate, including possibly by reducing its output, a person familiar with Russian thinking said.
Saudi Arabia Energy Minister Khalid Al-Falih said “there are good chances” for a deal and he is hoping non-OPEC producers will cut production. Russia, the biggest supplier outside the bloc, had previously said it was only prepared to freeze supply at current near-record levels.
Brent for January settlement, which expires Wednesday, gained as much as $4.07 to $50.45 a barrel on the London-based ICE Futures Europe exchange. It traded at $50.08 at 12:24 p.m. local time. The contract dropped $1.86 to $46.38 on Tuesday, the lowest close since Nov. 14. The global benchmark traded at a $1.30 premium to WTI for the same month.
West Texas Intermediate for January delivery rose as much as $3.89 to $49.12 a barrel on the New York Mercantile Exchange. The contract dropped $1.85 to $45.23 on Tuesday, the lowest close since Nov. 14.
more at: https://www.bloomberg.com/news/articles/2016-11-29/oil-trades-near-2-week-low-as-discord-threatens-opec-supply-deal