Oil prices rose on Monday as investors hope for an OPEC cut at the cartel’s November meeting.
OPEC have been trying to reach a deal to curb the supply of oil on the market for some time, with efforts being met with opposition from underlying tensions between Iran and Saudi Arabia.
“Crude oil will continue to be driven by headlines as the 30 November meeting regarding production cuts draws closer,” ANZ bank said.
Oil prices have been pushed down by excessive oversupply for over two years. Iran have been reluctant to join an agreement to curb oversupply, as their oil has just been allowed back on the market after sanctions were lifted.
However, it is expected that Iran may be given an exemption if it agrees to cap production.
Craig Erlam, senior market analyst at OANDA, said in a note to clients on Monday:
“Oil is already more than 1% higher on the day, helped by Vladimir Putin’s belief that an output deal will be reached later this month”.
Russian President Vladimir Putin has got behind an output cut, saying on Sunday at a news conference that there was a “high probability” an agreement to curb oil production would be reached at the next meeting OPEC in Vienna on November 30th.
“We will do everything that our partners from OPEC are expecting. To freeze crude production is not an issue for us.”
WTI Crude is up 0.68 percent at 47.04, with Brent Crude up 0.65 percent at 47.51. Both are trading well above their $30 a barrel lows of a year ago.