Iraq’s Pledge To Join OPEC’s Deal Overshadows Saudi-related Concern

Crude oil jumped as much as 3.5 percent on Monday, paring earlier losses after Iraq’s oil minister said the country pledged to cooperate with OPEC to reach a production freeze deal later this week.

West Texas Intermediate for January delivery reached intra-day high at $47.63 a barrel on the New York Mercantile Exchange. Meanwhile, Brent for January settlement advanced to $48.79 a barrel on the London-based ICE Futures Europe exchange.

The Organization of the Petroleum Exporting Countries had agreed in September to curb its output to deflate a global crude supply glut. However, the 14-nation cartel has not finalized the details of each member’s quotas.

Crude prices fell earlier on Monday as Saudi Arabia previously on Sunday said that the producer group doesn’t necessarily need to curb oil output as well as pulled out of a scheduled meeting with non-members including Russia due on Monday. Concerns over another OPEC’s failed attempt to re-stabilize the crude market faded after Iraq’s Oil Minister Jabbar al-Luaibi said Monday he’s “optimistic” a deal will be reached at OPEC’s summit in Vienna on Wednesday.

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