The prospect that Saudi Arabia will push OPEC and maybe Russia to cut supply towards the end of this year seem to have caused oil prices to rise for a fourth time in a row on November 19th.
Brent crude futures were up 24 cents at $67.00 a barrel, while US futures rose 38 cents to $56.84, according to Reuters.
To this effect, Sukrit Vijayakar, director of Indian energy consultancy, Trifecta, said, “Oil prices continued to recover ... (as) the market will be watching closely for the possible impact of a (supply) cut.”
The Organisation of the Petroleum Exporting Countries, (OPEC) led by Saudi Arabia, is pressurising the group and its partners into reducing output by 1 million to 1.4 million barrels per day to prevent a build-up of unused fuel.
PVM Oil Associates strategist Tamas Varga, commenting on the situation, said, “It appears that the market takes a production cut for granted. We’ll see if it is right after the next OPEC meeting on December 6th. It is not unreasonable to anticipate stable prices until then.”
Russian Energy Minister Alexander Novak was cited as revealing on November 19th that Russia, not an OPEC member, planned to sign a partnership agreement with the group and that details would be discussed at OPEC’s Dec. 6th meeting in Vienna.