Oil rallies on deal optimism:

  • Oil snapped a four-week losing streak last week, rallying over 5% on some renewed optimism surrounding the prospects for OPEC to finalize a production cut deal. Sentiment has been further underpinned by weekend commentary. WSJ noted Iranian Oil Minister Zangeneh said that OPEC is “highly likely” to reach a final agreement at its 30-Nov meeting. He added that if producers manage to cooperate, oil prices could rebound to $55 to $60 a barrel. Paper noted that while Zangeneh did not say how Iran would participate in a deal, an Iranian official reiterated that Tehran still wants to reach its pre-sanctions level of 4M bpd, adding it is “almost there”. The more upbeat comments out of Iran followed similar comments from Iraq last Friday. Both countries have been seen as the biggest potential stumbling blocks facing a deal. Separately, Bloomberg noted Russian President Putin said he sees no obstacles to a deal and reiterated if an agreement reached, Russia would freeze production.