ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

image_pdfimage_print – Crude oil prices rebounded in Asia on Monday as investors bet nervously on a a down-to-the-wire decision by OPEC to curb output as proposed.

U.S. crude oil prices rose 0.24% to $46.17 a barrel on the New York Mercantile Exchange. Global benchmark Brent futures gained 0.29% to $48.38 a barrel.

Last week, oil prices fell sharply on Friday amid uncertainty over whether the Organization of the Petroleum Exporting Countries can reach an agreement to cut production and prop up markets.

Doubts over whether major global exporters will be able to reach an agreement on November 30 to rein in output also kept investors on the sidelines. OPEC is to hold a meeting in Vienna on Wednesday aimed at finalizing the details of a proposed output cut, which it is hoped will reduce a global supply glut that has pressured oil prices lower for more than two years.

The producer cartel is attempting to get its 14 member states, along with non-OPEC member Russia, to implement coordinated production cuts.

Reaching an agreement on a deal to cut output has proved problematic, with some producers, most notably Iran, reluctant to curb production.

Most analysts believe that some form of consensus will be reached, but doubts remain over whether it will be enough to support the market.

“An agreement to a large production cut could send oil prices closer to $60 per barrel before year’s end, while failure to reach an agreement could cause oil prices to fall back to the low $40 per barrel,” analysts at Nordea said.