OIL

The Star Early Edition - - MARKETS -

BRENT crude ral­lied yes­ter­day, as in­vestors weighed the po­ten­tial out­come of next week’s Opec meet­ing.

Brent for Jan­uary set­tle­ment gained 83 cents to $78.93 a bar­rel (R5.44 a litre) in the af­ter­noon on the London-based ICE Fu­tures Europe ex­change. West Texas in­ter­me­di­ate for Jan­uary was up 69c at $75.19 at 10.08am in New York. The De­cem­ber con­tract ex­pired yes­ter­day.

Lead­ing mem­bers of Opec are re­sist­ing calls to re­duce out­put while oth­ers, in­clud­ing Venezuela, seek ac­tion to support prices at a Novem­ber 27 meet­ing in Vi­enna. An Opec pro­duc­tion cut looks in­creas­ingly likely, Mor­gan Stan­ley said in a re­port on Wed­nes­day. Trad­ing vo­latil­ity rose to the high­est in more than two years.

“The mar­ket is eye­ing next week’s Opec meet­ing for some kind of move­ment,” Gene McGil­lian at Tra­di­tion En­ergy said. “Opec needs to take ac­tion and make the cuts. The mar­ket is still un­der pres­sure, but we are close to the bot­tom.” – Bloomberg

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