Crude prices hit highest since October
On Tuesday, crude prices ascended to their highest value since late October, as the market priced in an expected production cut led by producer cartel OPEC, though experts warned that a failure to agree a cut could provoke a deepening supply glut by early 2017.
International Brent crude futures ascended as high as $49.63 a barrel, up 1.5% from the last settlement and the highest outcome since October 31. Brent was worth $49.58 per barrel, up 1.4%. Meanwhile, US West Texas Intermediate crude futures gained 1.4% too, showing $48.93 a barrel.
The Organization of the Petroleum Exporting Countries is currently trying by November 30 to bring its 14 member states as well as non-OPEC producer Russia to agree on a coordinated output cut to prop up the market by simply bringing production into line with consumption.
With market participants getting more optimistic about OPEC reaching an agreement on production cuts, crude prices should keep edging higher in trading today.