Oil prices in brief climb
LONDON, November 30, 2015 – Oil prices rose briefly earlier today in anticipation of OPEC introducing at its next meeting on Friday a new policy to ease the supply glut in 2016. Gains were limited due to doubts that the Saudi-led drive to keep prices low and maintain output will be reversed.
Although Saudi Arabia’s budget deficit has grown to 16 percent of its GDP this year, which may lead it to reduce its own output or devalue its dollar-pegged currency, both Kuwaiti Oil Minister Ali Omair and Iranian Oil Minister Bijan Zanganeh told Reuters that they did not expect a policy change.
Asian markets saw US crude climb 18 cents to $41.88 per barrel, while Brent crude rose 4 cents and traded at $44.90 per barrel. Prices have slumped more than half since mid-2014.
Decreased supply from US producers and the rise in world oil demand by 1.25 million barrels per day from the current 95.2 million will mean 96.5 million according to International Energy Agency’s estimations.