- Oil Price, Brent Crude Rises to$46
Oil rose more than one per cent yesterday, boosted by the commitment from the Organisation of the Petroleum Exporting Countries (OPEC) to stick to output cut deal.
According to Reuters news, Brent crude traded at $46.20 per barrel, up 62 cents, or 1.36 per cent, from the previous close. US West Texas Intermediate (WTI) crude was up 75 cents, or 1.7 per cent, at $44.82 a barrel.
However, prices remained more than $7 below last month’s high due to continued doubts over the feasibility of the group’s plan.
OPEC’s Secretary-General, Mohammed Barkindo, said “the group was committed to an output-cutting deal made in Algiers in September. We as OPEC, we remain committed to the Algiers accord that we put together. All OPEC 14 members, we remain committed to the implementation,” he told reporters at a conference in Abu Dhabi.
Despite this, many analysts doubt OPEC’s ability to coordinate a cut sufficient to balance the market.