By: Mahmoud Gamal
Mubasher: Oil prices continued to rise on Tuesday on the backing of a falling US dollar amid growing expectations that member states in the Organisation of Petroleum Exporting Countries (OPEC) will decide to trim production in their upcoming meeting.
By 03:00 GMT, Brent crude futures grew 0.88% or 42 cents, reaching $49.44 per barrel from its last closing price. Similarly, Western Texas Intermediate (WTI) oil futures gained 1.10% or 53 cents to $48.77 pb.
Crude prices were seen rising as the dollar index, measured against a basket of major currencies, continued to decline. It slipped 0.02% to 100.92 after reaching a thirteen-and-a-half-year high last week.
Oil traders are using the approach of the OPEC meeting to cover losing positions through speculation and intensive buying, commodity market analyst Fadi Al-Naggar told Mubasher.
Analysts have been forecasting a rise in oil prices above $53 pb next week, ahead of the OPEC meeting slated for 30 November. It is expected that member states will reach an agreement to trim production for a year.
Al-Naggar indicated news that Iraq was planning to trim production has also prompted investor appetite in acquiring in new positions.
Iraq's oil minister stated that the ministry will discuss its proposals at the next OPEC meeting to execute a deal to reduce oil supply and boost prices, a statement by Iraq's Ministry of Oil said on Monday.
Al-Naggar forecasted that oil prices will continue to fluctuate in the coming few sessions ahead of the OPEC meeting, particularly on the release of official data and statements from OPEC members or Russia.
Translated by: Nada Adel Sobhi
