Oil prices climb ahead of OPEC meeting

Crude oil prices edged higher on Thursday as Organization of Petroleum Exporting Countries (OPEC) gathered in Vienna to discuss global oil markets and an extension for the output cut agreement that expires in March 2018.

Brent crude was last up 0.8 percent at $63.53/bbl, while WTI crude rose 0.4 percent at $57.54/bbl.

“Barring an unexpected announcement from the oil cartel, Brent is on course to end higher for the fifth consecutive month while WTI is set to close positive for the third straight month,” said Fawad Razaqzada, market analyst at Forex.com.

While initially only OPEC ministers will hold a closed meeting session, the non-member partners in the output deal, including Russia, will join later in day.

A joint press conference is scheduled after the meeting.

Expectations are that the production-cuts will be extended for another six to nine months, but analysts believe this outcome may already be priced in as many countries – including Saudi Arabia and Russia – have hinted at this.

“But anything less than a nine-month extension would be a real surprise, which could lead to a sharp sell-off due to the high levels of expectations,” Razaqzada added.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com