Crude oil prices rose on November 15
After starting the day on a stable note, crude oil prices rose on November 15. At 11:50 AM EST on November 15, the West Texas Intermediate crude oil futures contract for December delivery rose ~4.7% to $45.35 per barrel. The Brent crude futures contract for January 2017 delivery was trading at $46.34 per barrel—a gain of ~4.3%.
Renewed hopes about OPEC’s output cut
Increased optimism regarding the successful execution of an output cut by OPEC supported crude oil prices. OPEC announced the output cut at its meeting in Algeria in September. Crude oil started the day on a positive note but rose as the day progressed. Doubts about the successful execution of the output cut were higher until the end of last week. Nigeria, Iraq, Iran, and Libya sent signals that they may not participate in the deal. Comments from Saudi Arabia’s energy minister and increased optimism improved the sentiment in the market.
On November 13, Saudi Arabia’s energy minister commented that OPEC would reach an agreement to cut the production. Producers’ next meeting is scheduled for November 30 in Vienna. Individual supply quotas will be announced. The market is looking forward to the weekly crude oil inventory reports by the American Petroleum Institute and the U.S. Energy Information Administration. The reports will be released this week.
The rise in crude oil prices also helped the Mexican peso move higher on November 15. The expectations of an interest rate hike in the Mexican central bank’s meeting on November 16 are higher. These expectations, along with a rise in oil prices, pushed the Mexican peso more than 2% higher against US dollar on November 15.
At 12:05 PM EST on November 15, major crude oil producers Carrizo Oil & Gas (CRZO), Canadian Natural Resources (CNQ), Total SA (TOT), and British Petroleum (BP) rose ~4.9%, ~3.3%, ~2.4%, and ~1.3%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) rose 4.1% and 3.2%.