Investing.com - Oil prices jumped more than 5% on Wednesday, amid growing optimism that the Organization of the Petroleum Exporting Countries will be able to reach an agreement on a deal to curb output later in the day.
U.S. crude oil was trading at $47.69 a barrel at 09:30 GMT, up $2.45 or 5.39% from its last close.
Global benchmark Brent futures rose $2.71 or 5.71% to $49.99 a barrel.
Prices spiked higher after Algeria's oil minister said he was "99 per cent certain" that OPEC has a deal to cut today.
Prices climbed had already climbed earlier after Iranian oil minister Bijan Zanganeh said he believed OPEC would reach a production deal, but added that a freeze of his country’s output was "not up for discussion".
OPEC is attempting to get its 14 member states, along with non-OPEC member Russia, to implement coordinated production cuts aimed at reducing a global supply glut that has seen prices more than halve since 2014.
In September the producer cartel reached a preliminary agreement that would reduce production to between 32.5 million and 33 million barrels per day compared to the current 33.64 million barrels per day.
But reaching a deal has proved problematic, with Iran and Iraq resisting pressure from Saudi Arabia to rein in output.
Most analysts still believe OPEC will sign an accord to cut output, but doubts remain over whether it will be enough to support the market.
Morgan Stanley said Tuesday it still sees a deal as likely but added that the risks of failure have risen.
“A strong announcement from OPEC to cut meaningfully could lift oil to $50 or more over the following days, particularly if supported by strong words from non-OPEC, before focus shifts to execution risk, sustainability and any non-OPEC supply response” analysts at the investment bank said.
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