• Wednesday, May 29, 2024
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Oil on two-year high as OPEC, Russia deal looms

Oil slides after OPEC reschedules Tuesday’s meeting for more talks

Global oil prices reached a two-year high as a deal to extend oil production cuts to the end of next year between OPEC and Russia made headway.

Brent for January settlement climbed 2 cents to $63.57 a barrel on the London-based ICE Futures Europe exchange. Prices rose 23 cents to $63.55 on Thursday. The global benchmark crude traded at a premium of $4.83 to West Texas Intermediate (WTI).

READ ALSO: If OPEC supply cap is prolonged, indigenous oil firms will need a respite from FG – Brown

In New York, futures advanced as much as 1.6 per cent after the parties agreed on the necessity of another round of cuts to be announced at the November 30 meeting.

Bloomberg reported that the US benchmark went above $58 a barrel for the first time since the middle of 2015 this week due to increasing optimism that OPEC and its allies will arrive at a cut in November in Vienna, Austria.

Prices are up more than 8 per cent in November, heading for a third monthly gain in what would be their longest winning streak since May last year.