Oil prices rise on expectation that producers will agree to freeze output

Oil prices rose in trading in Asia on Wednesday on rising expectations that producing nations would agree on freezing their output amid global oversupply.

Expectations rose after The Kuwaiti governor for the Organization of the Petroleum Exporting Countries (OPEC), Nawal Al-Fuzaia, stated on Tuesday that there were positive indications an agreement would be reached during an OPEC meeting scheduled in Qatar on 17 April 2016.

Front month U.S. West Texas Intermediate (WTI) crude futures traded at $36.74 per barrel, up 2.3% percent from their last settlement price. International Brent futures were up 1.7% at $38.50 a barrel.

An initial freeze on output was agreed to in February, which has helped oil prices rise to almost $38 a barrel from a 12-year low close to $27 in January.

However, prices have continued to decline recently as doubts persist whether a wider deal would be reached, largely because Iran has not shown any indication of slowing its production after crippling sanctions against it were lifted in January.

Source: Reuters