Crude Oil prices rallied over 4% to a three week high today, as the market perceived a growing conviction that major oil producing countries would agree to limit output at the OPEC meeting in Vienna on November 30th.
West Texas Intermediate crude oil traded as high as $48.50, up over 10% in five days, since Saudi Arabia, the de facto leader of OPEC, increased pressure on the group’s more reluctant members to join its proposed reduction of output plan. In recent days, OPEC members including Iran, along with non-OPEC member Russia, have suggested that they were leaning toward a deal to limit production.
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Both Iran and Russia have been the main hurdles facing any output curtailment by OPEC, as both nations want exemptions to try to recapture market share lost by years of Western sanctions. Analysts have been clear participation by Iran, Nigeria and Libya are integral in any agreement to cut production and shore up crude oil prices.
