Summary Oil prices make a positive start in a week that will be centred on the OPEC cartel's output meeting
LONDON: (AFP) - Global oil prices firmed Monday, making a positive start in a week that will be centred on the OPEC cartel s output meeting, dealers said.
Nearing midday, Brent North Sea crude for delivery in January rose four cents to $80.40 a barrel. US benchmark West Texas Intermediate for January advanced 15 cents to $76.66 per barrel.
The Organization of the Petroleum Exporting Countries (OPEC) will hold one of its most significant meetings in recent years on Thursday, with members under pressure to address slumping prices and protect their precious revenues. The oil market has tumbled 30 percent since June on the back of plentiful supplies, the stronger dollar, and growing doubts about both global demand and economic growth.
Before the weekend, crude futures had rallied Friday on China s surprise interest rate cuts and rising expectations that the 12-nation OPEC cartel could decide to reduce its collective production ceiling.
"Activity (on Monday) looks to extend the positive moves seen towards the end of last week as investors position themselves ahead of OPEC s meeting in Vienna later on this week," said Sucden brokers analyst Kash Kamal on Monday.
"Prices have found support around Friday s close and with speculation among investors that Iranian oil minister Bijan Namdar Zanganeh may propose 1.0 million barrels per day production (mbpd) cut to OPEC members to Saudi Arabia s vocal oil minister, Ali Al-Naimi. "We could see further upside potential in the coming sessions."
OPEC s poorer members, led by Venezuela and Ecuador, have called publicly for output to be slashed, while Iran has also hinted at a need to reduce production. But the cartel s Gulf members, led by kingpin Saudi Arabia, are rejecting such calls unless they are guaranteed market share in the highly competitive arena, according to analysts.
