Oil Prices Highest Since October

Oil prices rose on Tuesday to their highest this month as a growing consensus emerged in the market that OPEC would overcome internal disputes and skepticism to strike a deal that materially reduces crude output.

But some warned a failure by the Organization of Petroleum Exporting Countries to reach agreement at a Nov. 30 meeting, or effectively implement it, would send prices crashing as a two-year glut of crude remained unabated, Reuters reported. Brent crude oil was up 85 cents a barrel at $49.75, having earlier risen $1 in a push against the $50 mark for the first time since the end of October. US West Texas Intermediate crude was up 68 cents, or 1.4%, at $48.92 a barrel.

Prices were boosted by comments from a Nigerian official attending an OPEC technical meeting, which is trying to hammer out details of a deal, that it was likely all countries would be “on board” by the end of Tuesday.

OPEC is trying to bring its 14 member states, including regional foes Saudi Arabia and Iran, and non-OPEC producer Russia to agree on a coordinated cut to prop up the market by bringing production into line with consumption.

The organization had said at the end of September it aimed to cut production to between 32.5 million and 33 million barrels per day compared to its recent record output of around 33.8 million bpd.