OPEC Said Close to Deal on First Oil Supply Cut in Eight Years...

OPEC Said Close to Deal on First Oil Supply Cut in Eight Years

November 30, 2016 — 3:02 AM ESTNovember 30, 2016 — 8:09 AM EST

• Iran’s Zanganeh says Russia ready to participate in curbs
• Iraq says OPEC ministers are unanimous in favor of cut

Reading Between the OPEC Lines: Will they Agree Today?

OPEC is near an agreement to cut production for the first time in eight years, sending oil prices surging on optimism a deal with start to drain record global inventories.

Under the terms being discussed by ministers in Vienna, the group would cut production by 1.4 million barrels a day, equivalent to about 1.5 percent of global production, according to a delegate. In addition, oil producers outside OPEC, including Russia, would contribute cuts of about 600,000 barrels a day, they said.

The outlines of the deal emerged as ministers on their way into the meeting struck a markedly more optimistic tone than in recent days, signaling the group’s three largest producers -- Saudi Arabia, Iran and Iraq -- have overcome differences on how to share the burden of cuts. It appears Iran will be able to raise production as it recovers from sanctions on its oil industry.

“I am very optimistic we’re going to come up with very fruitful results,” Iraqi Oil Minister Jabbar al-Luaibi said, before sitting down for the final ministerial meeting. “There will be a cut, yes, definitely."

Benchmark Brent oil futures rose as much as 8.8 percent in London trading, the biggest gain since February, to $50.45 a barrel.

Fire up LNG!