OPEC likely to finalise details of the accord on Tuesday - OPEC Nigerian delegate, Ibrahim Waya

The Organization of the Petroleum Exporting Countries (OPEC) is trying to bring its 14 member states and non-OPEC producer Russia to agree on a coordinated production cut which it decided at its September meeting to prop up the market by bringing production into line with consumption.

The OPEC is set to meet on Nov. 30 and optimism rising across markets that a deal will be reached to limit output. Oil prices are edging higher, rising to their highest level since October on Tuesday after news that the energy ministers from two of OPEC’s most reluctant members in terms of cutting output, Iraq and Iran, are backing the proposal.

The technical meeting which concludes on Tuesday will prepare for OPEC’s ministerial meeting Nov. 30 in Vienna. OPEC Nigerian delegate, Ibrahim Waya, said earlier on Tuesday that the OPEC technical committee is discussing 6-month duration for oil output-limiting agreement. He further said that Iraq and Iran are likely to be on board on the OPEC output deal, while expecting that the details of the accord will be finalized today.

Goldman Sachs Group Inc., raised WTI forecasts to $55 in the first two quarters of next year, up from prior estimates of $45 and $50, respectively on increased likelihood of a deal. Goldman Sachs however also warned that political risks can still derail an otherwise economically sound decision.

"While the market largely expects OPEC to cut production, some remain cautious going into the meeting," says Goldman Sachs.