Oil prices extend gains for a second session running on optimism that non-OPEC producers will agree to cut output following a cartel agreement to limit production. Is a deal really a realistic prospect? Hayley Platt reports.
Oil prices get another boost - rising for a second session. The market hoping non-OPEC members will join OPEC in cutting production when they meet in Vienna at the weekend. It follows the cartel's historic decision earlier this month to curb output for the first time in 8 years. But it has little influence outside of its sphere. And who will take the brunt of the cuts is still to be decided. SOUNDBITE (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING: "It's very difficult to know with complete faith that the non-OPEC members will also do their bit. If we look for instance at Russia, well yes they've indicated that they are willing to freeze or reduce production but this comes off record high levels or extremely high levels of production." So far only five out of 14 non-OPEC producers are said to be attending the meeting. Along with Russia, Oman has publicly said it is willing to reduce production. Azerbaijan has its own proposal to put to the group. While Kazakhstan is still undecided. (SOUNDBITE) (English) PANMURE GORDON CHIEF ECONOMIST, SIMON FRENCH, SAYING: "The other factor of course is the U.S. simply not looking to play ball in terms of production cuts, and actually a lot of circumstantial evidence that the shale oil producers are locking in the higher prices we're currently seeing just above $50 a barrel on the expectation that their pumping considerably more in 2017." According to OPEC member Nigeria - the cartel WILL go ahead with cuts of 1.2 million barrels of oil per day. Even if Russia ends up being the only non-OPEC member to agree on reducing its output. But Russia has said there are 'unresolved issues' it wants to discuss - and plans to hold additional talks with both OPEC and non-OPEC nations.