Oil Climbs as Iran, Iraq Signal Deal Hope Before Vienna Meeting

Prices rose as much as 2.1 percent in New York, adding to last week’s 5.3 percent gain. Iran Oil Minister Bijan Namdar Zanganeh said it’s “highly probable” members will reach a consensus, according to comments published by Shana news service. Iraq will offer new proposals at the OPEC meeting to help reach an agreement on production limits, Oil Minister Jabbar Al-Luaibi said Monday. Goldman Sachs Group Inc. said in a note it is taking a “tactically bullish” outlook on “stronger OPEC cut rationale.”

West Texas Intermediate for December delivery, which expires Monday, rose as much as 97 cents to $46.66 a barrel on the New York Mercantile Exchange and was at $46.59 at 11:23 a.m. in London. Total volume traded was about 21 percent above the 100-day average. The more-active January contract added as much as $1.04, or 2.2 percent, to $47.40 a barrel.

Brent for January settlement gained as much as $1.02, or 2.2 percent, to $47.88 a barrel on the London-based ICE Futures Europe exchange. The contract closed at $46.86 a barrel on Friday, capping a 4.7 percent gain for the week. The global benchmark traded at a premium of 52 cents to January WTI.

It’s likely that OPEC producers will honor the output cut agreement and will try to put it into action, Iran’s Zanganeh said after meeting with OPEC Secretary-General Mohammed Barkindo in Tehran on Saturday. Iraq’s “legitimate demands” shouldn’t be considered an obstacle to reaching a deal to freeze production, Al-Luaibi said.
more at: http://www.bloomberg.com/news/articles/2016-11-21/oil-climbs-as-iran-iraq-signal-deal-hope-before-vienna-meeting

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