Confidence grows in OPEC’s oil deal

According to media reports, confidence on the side of oil traders and analysts grew about OPEC members’ abilities to reach an agreement on an oil cut deal. Discussions are at full speed in the group’s headquarter in Vienna before the official meeting which will be held on November 30. After Iran’s signals of hope and Iraq’s offer of three suggestions, discussions with Libya went well, too, said Libyan OPEC governor Mohamed Oun on Monday evening.

Following these developments, Brent oil rose by 4.4% to close at $48.90 a barrel in London on Monday, which was the highest level in three weeks. Future prices continued to climb above $49/bbl on Tuesday’s daily trading.

Goldman Sachs Group Inc. also sees an agreement on an oil cut very likely, media reports reveal. Accordingly, the investment bank raised its oil-price forecast for early 2017 to an average of $55 a barrel from $45-$50.

So far in OPEC pre-meeting discussions, Russia said it is willing to freeze oil output at current levels. Iran expressed its hopes to reach a consensus over the matter and Iraq mentioned they will make proposals to help OPEC reach an agreement.