Oil prices move upwards as OPEC members meet in Algiers

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Market analysts registered a rise in oil prices on speculation that OPEC members may come to an agreement on a production cut during their informal meeting in Algiers. Bloomberg informs that futures in New York rose by 2.7 percent after the words of Mossa Elkony, the head of Libyan delegation, who said that “it seems there’ll be an agreement.”

The informal meeting of the members of the Organization of Petroleum Exporting Countries was long awaited by global industry. It was expected that the countries are going to discuss the ways to settle the oil market and prevent a further drop in crude price decline. According to a document seen by Bloomberg, Algeria suggested that OPEC should cut their total production by 796,000 barrel a day, but not all OPEC members are to make equal reductions.

Saudi Arabia is advised to cut production by 442,000 bpd as compared to August level, Iran may increase the output by 52,000 bpd up to 3.7 million bpd, while Niger and Libya are supposed to be excluded from the production freeze plan.