West Texas Intermediate crude rose for a second day as investors
weighed the likelihood OPEC will cut production when it meets in Vienna
next week.
Futures advanced as much as 1.2 percent in New York.
The Organization of Petroleum Exporting Countries may reduce its output
target by no more than 500,000 barrels a day, Bank of America Corp.
said in a note yesterday. Iran
will protect its share of global sales and can double exports in two
months if sanctions are removed, Oil Minister Bijan Namdar Zanganeh
said, according to the ministry’s news website Shana.
Oil has collapsed into a bear market as the U.S. pumps at the fastest rate
in more than three decades amid signs of weakening demand. Leading OPEC
members are resisting calls to reduce supply while others including Venezuela seek action to support prices before a Nov. 27 meeting.
WTI for January delivery increased as much as 88 cents to $76.73 a barrel in electronic trading on the New York Mercantile Exchange
and was at $76.61 at 10:50 a.m. Sydney time. The December contract
expired yesterday after rising $1 to $75.58. Front-month prices are up 1
percent this week, heading for the first weekly gain since September.
Brent
for January settlement climbed $1.23, or 1.6 percent, to $79.33 a
barrel on the London-based ICE Futures Europe exchange yesterday. The
European benchmark crude ended the session at a premium of $3.48 to WTI.
Source : Bloomberg
