BRENT and West Texas intermediate (WTI) were little changed yesterday as investors weighed the odds of a production cut from Opec this week.
Brent for January settlement added 6 cents, or 0.1 percent, to $80.42 a barrel (R5.56 a litre) at 10.41am on the Londonbased ICE Futures Europe exchange. Futures closed at $80.36 on November 21, the highest since November 12.
WTI for January delivery rose 24c, or 0.3 percent, to $76.75 barrel on the New York Mercantile Exchange.
Iran may propose that Opec cut its output target by as much as 1 million barrels a day, Mehr News Agency reported. Hedge funds have turned less bullish on oil in the absence of any clear signal from Opec that it will act to bolster prices.
“Whether they cut is up in the air,” said Paul Crovo, an oil analyst at PNC Capital Advisors. “There is expectation that Opec does need to cut. That’s the perception, and it’s going to drive the market.” – Bloomberg