The agreement between cartel members reached in Algiers would be the first such effort since 2008 and is expected to be enacted at OPEC`s November meeting in Vienna. The credit appraiser`s resulting forecast of average oil prices is thus $45 per barrel for the international benchmark Brent crude and $55 per barrel for West Texas Intermediate light sweet oil. Moreover, the agency envisages a broadly balanced market next year, following improvements in demand for oil and modest output curtailments by non-OPEC producers. For now, even though oil prices rallied after yesterday`s announcement and then retraced some of their gains later on, weaker-than-anticipated demand so far this year will put a cap on prices, Fitch concluded.
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