Oil surged ahead of 20 OPEC meetings, but warned markets – Al-Manar TV – Lebanon



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Oil prices rose on Wednesday ahead of next week's meeting of the Organization of Petroleum Exporting Countries (OPEC), where members are expected to decide on some form of production cuts to face looming soaring.

Brent crude rose 44 cents, or 0.7 percent, to $ 60.65 a barrel at 0148 GMT.

West Texas Intermediate crude rose $ 51.88 per barrel after rising 32 cents, or 0.6 percent.

Despite rising on Wednesday, oil prices have fallen more than 30 percent since early October under pressure from oversupply and weak financial markets on a large scale.

The fall in prices since October is equivalent to a decline in 2008, but lower than in 2015/2014.

OPEC met on December 6 in Vienna to discuss production policies with several outside producers, including Russia.

Saudi Arabia increased production to a record low in November, sector sources said Monday, pumping 11.1-11.3 million bpd.

But the kingdom is urging mass cuts in production and is discussing a proposal to cut OPEC and its allies to 1.4 million barrels per day, sources close to the Reuters talks this month.

The OPEC meeting following the summit of G-20 leaders in Buenos Aires on November 30 and December 1 at the top of its agenda was a trade war between Washington and Beijing and oil policies.

While most analysts expect the OPEC meeting to reduce production, sentiment in the oil market remains negative.

"Traders are still focusing their choices on downside risks after a 30 percent decline in WTI," said Eric Norland, chief economist at CME in a research note.

The global market is worried that a slowdown in world trade as a result of the US-China trade dispute, and a buildup of debt and the strength of the dollar will put pressure on emerging markets.

"Trade growth will continue to slow until the fourth quarter of 2018," the World Trade Organization said in its latest forecast published on Tuesday, the slowest pace of growth since October 2016.

Source: Reuters

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