FxWirePro: Mexican govt. to smack up gasoline prices in early New Year while Kuwait to reassess OPEC and Non-OPEC’s agreement – Crude futures to bolster

Mexico’s government will allow the price of regular gasoline in the country to rise on average 14% next year, reports Juan Montes.

The move is part of the government’s plan to gradually liberalize the fuel market and undo eight decades of government-controlled, and often subsidized, gasoline prices.

Investors await news of the adherence to combined production cuts by OPEC and non-OPEC nations near 1.8 million barrels per day that started at the New Year. A meeting in Kuwait later this month will assess progress.

Oil prices edged up Wednesday on investor hopes that a production cut by major producers will support crude prices.

Traders are waiting to see if major oil producers inside and outside the Organization of the Petroleum Exporting Countries will deliver on pledges to curtail production beginning next month. The deal, if carried out as planned, should reduce global supply by about 2%.

West Texas Intermediate Crude futures for February delivery on the NYME were trading up 0.67% at $54.26 a barrel during early European session. Global benchmark Brent crude traded on London’s ICE Futures exchange was last quoted at $56.74 a barrel, we reckon the futures of these energy commodities to spike further in Q1’2017 as a result of above the above mentioned fundamental drivers.