Oil prices are gaining ahead of the conclusion of the semi-annual OPEC meeting on Thursday that is widely expected to extend an output curb aimed at tightening supply well into 2018. Brent crude prices have risen more than 16.00% from the lows reached earlier this month on a near consensus that a pledge by OPEC and Russia to slash supplies by 1.800 million barrels per day would be extended into next year, expanding on the initially agreed upon first six months of this year.
The bullish sentiment received a further boost after oil ministers of major producers Iran and Iraq both reported a willingness to back an extension of the production cut deal. Brent July futures were last trading around $54.45 a barrel. Prices could continue to rally by as much as 10.00% if Brent manages to convincingly break above the strong resistance around $54.60 per barrel.