Oil closed sharply higher on Monday driven by the prospect of an agreement between OPEC to reduce supply.
In New York, the light sweet crude (WTI) for January delivery gained $1.88, reaching $48.24.
In the London market the barrel of Brent for January increased $2.04, reaching 48.90$.
Many traders believe OPEC is close to reaching an agreement at a time when there is a rising oil demand in the United States,”
said Phil Flynn, of Price Futures.
An agreement to reduce the production of black gold would allow to lighten the oversupply that for two years has demolished prices.
OPEC countries will meet next week in Vienna to agree on a reduction in production, as stipulated two months ago.
Iran, Iraq and Russia have made positive comments about the current negotiations, but they do not contribute much to its realization, and in the end the question is whether Saudi Arabia will agree to take on most of the work,”
said Jasper Lawler, an analyst at CMC Markets.