LONDON: Brent crude ascended for a third day among symbols that Iran will seek an output cut at OPEC’s conference this week and after China surprisingly eased interest rates. WTI progressed in New York.
Futures increased as much as 0.5 percent in London. Iranian Oil Minister Bijan Namdar Zanganeh may propose that the Organization of Petroleum Exporting Countries 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 Iran’s state-run Mehr News. China cut borrowing costs for the first time since July 2012 as the world’s second-biggest oil consumer stepped up support for its economy.
Oil has slumped into 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 bolster 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 today. “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 climbed as much as 38 cents to $80.74 a barrel on the London-based ICE Futures Europe exchange and was at $80.71 at 1:09 p.m. Singapore time. It advanced 1.2 percent in the five days through Nov. 21, the first weekly increase since September. The European benchmark crude traded at a premium of $3.94 to WTI.
