Oil higher again:

  • Oil higher on optimism surrounding OPEC’s ability to finalize a preliminary production cut agreement reached back in late September. Nothing particularly incremental, though a member of the Nigerian delegation said that OPEC is likely to reach a consensus over the implementation of a deal at technical meeting today. There was also some positive commentary out of yesterday’s meeting. In addition, ministers from both Iraq and Iran, long believed to be the two biggest potential stumbling blocks for a deal, have recently expressed optimism, highlighting a narrowing of key differences. However, still some credibility concerns in play. The Nigerian official noted the output cut deal under discussion would only last six months, rather than the one year previously envisaged. In addition, Russia only expected to help stabilize the market by freezing production (but at record high levels).