Russian energy minister Alexander Novak has revived the hopes of an OPEC deal when members meet in Vienna on November 30th. We at FxWirePro have sincerely expressed our doubts and forecasted that a deal is unlikely. Read here, http://www.econotimes.com/Oil-in-Global-Economy-Series-Why-a-fully-implemented-OPEC-deal-is-unlikely-404487. However, we would have to admit that the September deal was a surprise too. Even if a deal do get reached, we don’t see any immediate implementation, in such a case, like we previously argued, tenure would be very important. http://www.econotimes.com/oil-in-global-economy-series-duration-of-opec-freeze-deal-matters-more-than-level-of-production-355237. As of now, we don’t see the possibility of the implementation of the current deal in its current form, with immediate effect.

Nevertheless, Mr. Novak’s reassurance of the deal has cheered the oil bulls. Mr. Novak’s comments pushed the oil prices from around 70 cents loss for the day per barrel to more than 50 cents gain for the day. But in the end, oil price closed lower for the day. WTI is currently trading at $45.5 per barrel and Brent at $1 premium to WTI per barrel.

As Russia has promised to join the OPEC in their initiative, Mr. Novak’s comments do calls for caution, especially when he sees a big chance for OPEC members to secure a deal in the next 17 days.