Oil futures contracts operate in high on the morning of Monday, benefit by the positive feeling with the proximity of the meeting of the Organization of petroleum exporting countries (Opec), which is to vote next week, an agreement to reduce production and support prices.
At 9:02 (Eastern), Brent crude for January traded on the Intercontinental Exchange (ICE) climbed 1.90%, to $47.75, while the barrel WTI for the same month advanced 1.90%, to $47.25.
Cheered investors with news realizing that energy ministers from two of the countries most reluctant of the cartel in relation to production cuts, Iran and Iraq, decided to support the proposal. The Group meets in the next 30 days.
As part of the observers cheered at the news, others have warned that the support was done in rather vague comments.
For analysts at Barclays, OPEC finds itself in a time when you have to decide between two difficult options. If they decide to cut production and produce a high short-term rates, they open space for the North American production in the medium term. On the other hand, if the decision is to do nothing and let the market adjust naturally, producers will suffer with the fall in revenues.
“Still believe in an agreement from OPEC to keep a reputation. In this case, it would be a flexible agreement, not unlike the cartel countries planned initially to the beginning of 2017 “, says the Bank, in a note.
At the same time, because of the Thanksgiving holiday in the United States, the WTI’s trading should be below normal and generate some volatility in the last two days of the week, especially in view of the proximity to the OPEC meeting.