Is OPEC Playing The Oil Markets Again?

Oil prices moved back up closer to $50 per barrel on the sudden surge in optimism surrounding an OPEC deal. With the meeting just days away, everybody is playing ball and sticking to the script, and the odds of an agreement have improved markedly compared to a few weeks ago.
Iraq offered three proposals to OPEC members, showing a renewed willingness to negotiate after weeks of disputing production data and demanding an exemption from the proposed cuts. Details of the proposal were kept quiet, but Iraqi officials sounded cooperative in an emailed statement. ‘Iraq’s legitimate demands should not be perceived as an obstacle to reaching a new agreement to freeze production,’ Iraqi oil minister Jabbar al-Luaibi said, according to Bloomberg. Iraq is optimistic about ‘reaching a fair agreement that would take into consideration everyone’s interests and that puts an end to the glut.’ Officials from Iran, Nigeria and even Russia also offered positive wordsabout the prospects of an accord.
Oil prices shot up by more than 4 percent on Monday on the news. Oil has rallied once again in recent days after dropping into the low-$40s per barrel. Now back up close to the $50 per barrel threshold, OPEC has once again succeeded in jaw-boning the oil market.

This post was published at Zero Hedge on Nov 23, 2016.