Source: Tehran Times
Brent crude rose for a third day amid signs that Iran will seek an output cut at OPEC's meeting this week and after China unexpectedly reduced interest rates.
Iranian Oil Minister Bijan Namdar Zanganeh may propose that the Organization of Petroleum Exporting Countries (OPEC) trim supply by 1 million barrels a day when he meets with Saudi Arabia's Ali Al-Naimi before the group gathers on Nov. 27, according to the Mehr news agency.
Oil is trading in a bear market as the U.S. pumps at the fastest rate in more than three decades amid signs of weakening demand. Leading OPEC producers are resisting calls to reduce supply while others such as Venezuela and Ecuador seek action to support prices ahead of discussions in Vienna.
"OPEC is certainly divided as to what they're going to do," Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney, said in an interview on Bloomberg Television. "Look at the pressure being borne on Saudi Arabia, particularly from Iran, Venezuela -- they want a cut. This could actually represent a little bit of a rift developing within the group."
Brent for January settlement increased as much as 49 cents to $80.85 a barrel on the London-based ICE Futures Europe exchange. It rose 1.2 percent in the five days through Nov. 21, the first weekly gain since September. The European benchmark crude traded at a premium of $3.97 to WTI.
OPEC will focus on supply and demand at its meeting, Suhail Al Mazrouei, the energy minister of the United Arab Emirates, said in comments on Twitter.
OPEC's 12 members, which supply about 40 percent of the world's oil, produced 30.97 million barrels a day in October, data compiled by Bloomberg show. That exceeded their collective quota of 30 million a day, first agreed in January 2012, for a fifth straight month.
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