Focus on their businesses, when i do round tables with our customers, those who have exported said they never had it so good. Just itching myself a bit there during the headlines. Oh. It happens. It does happen. Oil prices rallying as the opec secretarygeneral says a deal will happen today. Other opec members voices similar sentiment. Iraqs opec delicate said the cartel will be reaching a deal at the meeting in vienna as well today. Is it positioning . Do they think a deal will get done . Spencer is here with us. Do you think a deal will happen today . I think some form of deal will occur. They put themselves under pressure two months ago. They publicly announced they will do a deal today, now they have to deliver. Some people are saying this is the most important opec meeting for a long time, and then i remember going back to algeria, dohdoha, people saying is the most important meeting. How important is this meeting compared to past meetings . It is a significant meeting. In terms of the size of cut theyre talking g bshging about the most significant meeting. In terms of opecs credibility, this is a big very important meeting, more important than 2008 because theyve been so public in the build up to it. How do they manage to make everyone happy . Iran, iraq, saudi arabia and russia . Its almost impossible. So, fundamentally its going to likely come down to the three countries it always comes down to, saudi arabia, United Arab Emirates and kuwait. It will be up to those three countries, russia will not take part. Theyre not a member of opec. Iran and iraq Wont Take Part in it. Its ultimately down whether to saudi arabia, the uae and ckuwat are willing to cut production. The status quo wouldnt mean any change for the oil members in fundamentals. Thats highly likely. Theres a normal summer to winter decline in production, so they may well frame a deal which is just a normal seasonal change, even then the size of the cut theyre talking about is relatively small. Almost 1 of world demand. And whats in control of oil markets is tight oil in the united states. We are seeing this spike in the price of oil. Its bounced within the last half hour or so as those comments have come out from the secretarygeneral. Spiking some 3 , 4 , Something Like that on the price of oil. What would the consequence be if we dont see a deal reached . Stranger things have happened. Theres a lot of players in this that have to agree. There will be a lot of dissecting, if theres some form of deal, theres some dissecting as to what that means. The rise in oil price, it will reverse if there is no deal, or if people look at what has been an agreement, and they think that really means nothing. And you mentioned the price of oil. In 08 we crashed. Went down to 30something. We leveled out between 80 dollars 100 per barrel and now have come down. Are we in a range that we can manage . Is it necessary to do a deal. The saudi minister saying the market would level out in 2017. Effectively the oil market is in supply and demand balloons. Its come back into balance. Stocks are not building at the moment. We expect the market will stay in supply and demand balance through next year. But while that happens, not much will happen to price. Opec is trying to give a bit of a boost and get a couple extra dollars per barrel in the meantime. Lets come back to the oil price. You said there might be some draw down once we if he can dont get a deal today. How low could we go . Some people talk about 20, 30 per barrel price ball what is your forecast . We wouldnt expect it to go as low as that. There could be a short blip, but fundamentally staying in the 40s. The market is in supply and demand balance. If theres no deal, nothing has fundamentally changed. They will carry on producing, the Global Oil Market is in a near supply demand balance any way. What about the other side of the equation . What if we get this deal, which is not a production quota but actually a real cut, and russia sticks to this deal. What sort of jump in oil prices could we see . Is it all baked in the cake . Some of it is baked in the cake. In the 4 per barrel move weve seen this morning, a lot is priced in. There not much more increase in oil price. This deal is relatively small in terms of the global market. If they do some sort of deal, the price goes up, its only going to slow down the increase in u. S. Production a bit. The u. S. Production of oil will start ramping up next year. Regardless of what opec does . Regardless. So the decision today is more of a blip in the oil market rather than a seismic shift. Okay. Lets leave it here for now. The opec meeting is definitely going on today. Well have more coverage out of vienna. In the meantime, lets check in on our European Equity markets. We open to slightly lower just hanging on to small gains. Up 0. 4 . Just coming back up from that slightly red start. When it comes to the main European Equity markets, similar story there with the markets up a half percent just shy of 1 . The ftse mib up by just shy of a percent. All European Forces trading in the green. When it comes to the sectors, you will also note the vast majority of sectors are trading positively. Oil and gas trading higher due to this 3 to 4 spike in the oil price itself on the back of these comments by the secretarygeneral that a deal could be reached today. Rbs failed the bank of england stress test missing key hurdles. The central bank called on the british lender to boost its capital buffer. Rbs announced plans to cut costs and sell off bad loans in order to make up the 2 billion pound capital short fall. Rbu down 2. 9 . Barclays and Standard Charter fell short. Hsbc, lloyds and santander fared better. The bank of england flagged key challenges to the banks sustainability. Mark carney said it was in the eus interest to have an orderly brexit. The uk Financial System demonstrated its ability to dampen rather than amplify its impact on the real economy of shocks. The resilience has been reinforced by the 2016 stress test and given the likelihood that some uk specific risks to Financial Stability could materialize. It will take time to clarify the uks new relationship with the eu and the rest of the world. And the orderliness of the uk economys adjustment to these changes will influence the risk to Financial Stability. John redwood joins us now around the desk. Do you think uk banks are well equipped for brexit . Much better equipped financially than they were at the time of the crash and the aftermath of the crash. I think the stress tests reveal they have done work to repair Balance Sheets and are in pretty good shape. I dont think brexit is nearly so big an issue as so many commentators seem to think. The main thing that move markets are the strength of the dollar, the state of the chinese banks. And i think people go on too much about brexit. So far nothing has happened other than the british people decided to leave. What happens once eu businesses lose access to the Financial Services industry in the uk. I dont think theyre going to. It would be surprising if the Member States on the continent wanted to deprive their banks and other Financial Institutions of good access to the uk market. They have many more passports into london. The british firms have passports on to the continent. And london is a large marketplace in the time zone, so they will need sensible access to us. None of this will happen for several months. We have not even sent the letter announcing the formal start of negotiations. Isnt that just Wishful Thinking on your part but also on the part of Boris Johnson and theresa may thinking access to the eu Single Market will still be granted. At the same time we can do some cherry picking by limiting immigration. These people have to maintain access because their economy and jobs depends on it. They dont deny americans access, the chinese or the japanese, so why would they deny the british . Under wta rules theyre not allowed to discriminate against us. I dont see why people keep on and on about it. Nothing is happening. Relax. When we get to negotiations, then there might be a story. Nothing is happening yet, but we always like to speculate what could potentially happen. But there are many more interesting things that could happen before we get to the uk negotiations. I agree. A lot of us we speak to a lot of economists, just me personally, the vast majority of economists are warning that the slowdown is going to happen, its going to be dramatic, and it may not be now or tomorrow but a year or two years, 5 years, 10 years down the line. Theyve been wrong so far. They said there would be no hit to growth in 2016. We stuck with the original treasury forecast for this year of 2. 1, and that seems to be 2 seems to be delivered. Were sticking with the march treasury forecast of 2. 1 for next year. We think that, too, could easily be delivered. Theres no sign of weakening. You see good consumer expenditure, increase in house volumes, quite a lot of residential activity. All these people who tell us that theres some disaster immediately around the corner have been systematically wrong for 2016. Why will they suddenly be right in 2017. Coming back to the main markets, some of the main points of argument for the leave camp is to take back control again and again it was immigration, regulation as well. But if youre part of the Single Market you have to accept the Free Movement of people between borders. You have to accept eu regulation, thats part of being part of the Single Market. You have to accept you are giving money to an eu budget. Theres not going to be a solution outside of that, not if you listen to the hard line taken by the likes of some, who may want to give an example so other countries dont go down the same line. Again, we havent even started the negotiations yet. The British Government position is clear, the uk decided to take back control of its borders, its money and lawmaking. That is not something you negotiate with the 27 others, its something you do. Its an assertion of your decision as a sovereign country. And there needs to be negotiations over the basis of each others markets, were talking about accept to each others markets not staying in the European Union as you just described. John, appreciate you being with us. Nice to hear your views, views that not even thinks about. I dont know why they have to be so negative about it. John redwood from charles stanley. Coming up on the show, do we have a deal . Well head out to the opec meeting in vienna and find out how close ministers are on agreeing on an output cut. You are looking at a live shot of print journalists in vienna at the opec meeting. Were waiting for the tv journalists and Steve Sedgwick to be let into the room. If youre not a journalist and have not been in that room. I did that once, wow. Its like a circus. You need sharp elbows to get close to those ministers. Huge media scrum around the saudi minister. Oil prices this morning, were seeing a major spike. Thats accelerating crude. Brent crude up by more than 5 . 48. 75. Many comments from the like of the Saudi Energy Minister, the secretarygeneral of opec saying there will be a deal today. What shape or side or form the deal will take, thats very much unknown at this point. Plenty of optimism in the market. What happens to the likes of iran who say well play but only after we get our yut output was before the sanctions. What are your thoughts on this . What could make iran sign up to this . We dont think iran will take part in the deal. Goes back years and years. Yes, iran is still trying to up its production to where it was before the Nuclear Sanctions were put in place. Want to bring you more comments from Saudi Energy Minister. If we agree today, we will reach out to nonopec, i guess most importantly that would be russia. The Saudi Energy Minister saying that markets wont collapse if opec doesnt agree. That very much mirrors what you have been saying, you say that we should see an Oil Price Fall to the tune of a couple dollars. Not so much 20, 30. Thats what we think the market fundamentals would suggest. Cushioning themselves. Hedging themselves a bit. Yes. In terms of when you say they, you mean opec. Yes. Theres a credibility issue to show that they are still an influential organization. Are they still . Even if the u. S. Producer has shown its much more nimble and adaptive to the Global Trends . They are still influential but the level of influence is way down. The Saudi Energy Minister adding fundamentals are moving in the right direction. Very much so. Thats been backed up by many of the investment banks. Goldman sachs saying the market will balance by the second half of next year. Could oil throw a wrench in the continued economic recovery were seeing or this boom . If the price of oil goes higher by 10 . Certainly. Oil is influential in terms of the amount thats consumed. It is influential to the global economy. We dont expect a significant price rise. Maybe a couple dollars in 2017. Not a jump of 10. I dont think that will be a main influencer in terms of the Global Economic recovery. I wonder what happens with the dollar. If the dollar keeps rising, thats negative for oil prices. Under president elect donald trump we have seen this resurgence or the further strengthening of the u. S. Dollar. How high can oil prices realistically move under president elect donald trump . Theres a whole raft of different issues. Its very complex. So, yes, the potential strength in the dollar, the Trump Administration may try to strengthen the u. S. Dollar, there may be increased Oil Production in the united states, theres a whole number of issues that partially balance each other. Its difficult at the moment. Were in the early staging to say what that is going to do. You anticipate more shale oil coming on to the market . U. S. Production peaked in april at 9. 6 Million Barrels per day, its currently. 5 Million Barrels per day. Its flat now. It will start increasing. The question is how fast that increase will be influenced by the Trump Administration or opec today or the price of oil. Lets come back to a point, you were making about the validity of opec and whether or not it is a valid Institutional Organization that still is able to drift price of oil. Currently it seems like the market supply demand story is driving it more than opec. Sure were seeing a spike on the back of these comments. Do you think the market has taken back control of the reins of the oil market itself from the opec players . Yes, thats true. In 2014 opec made a decision for a couple of years trying to balance the market and support price. They stepped away from that and said let the markets do their own thing. Some of that is opec decision. Some is the fundamentals of the market. The single most important thing is the u. S. Tight oil and what that does. That is the single biggest influencer. Okay. I want to bring you more comments coming from the Saudi Energy Minister who says waiting for the market to recover on its own is not a bad outcome. It seems like he wants to tamper expectations there. For iran presanction freeze is acceptable. He is hoping for a 600,000 barrels a day nonopec output cut. Respond to some of those comments. Is he trying to bring down expectations in case there isnt a cut today . Yes. Sounds like it. I think you said 600,000 barrel decrease nonopec. I find that surprising. We cant see russia being past the deal. Theres very little precedent for nonopec countries to be part of an opec strategy cut. I think the best russia will say is theyll decrease production. For them to cut, unlikely. He also adds that opec cant put pressure on russia until opec decides. Leading up to this meeting its been difficult to get a clear voice from russia whether they would participate in a cut or adhere to a quota. How nimble is russia in stopping production or keeping it at the same level . I would say not very nimble. So russia has been slowly but steadily increasing production. And we expect that to continue. The worst that could happen or the best from opecs point of view is russia partially agrees to be part of the deal and slows dont rate of drilling, so production flattens off. We wouldnt expect a decline. Just to mention, the price of oil flying higher by almost 6 on the back of these comments. Also the Saudi Energy Minister saying that for iran, the p presanction freeze is acceptable. We talk about production cuts. Theyre pumping at alltime highs, many countries. Is it really going to make that much of a difference that they cut a bit from the massive highs theyre pumping at . So, russia is partially shielded by this because of the ruble. That kind of leads to their production being flat and pretty inflexible. Yes, a lot of opec countries have been significantly ramping up Oil Production. Opec production is up by 3 Million Barrels per day, so opec has been pouring more oil into the oversupply, as individual countries try to reduce the revenue loss that they are personally suffering. Do you think well see more of a balance from individual economies with regards to spuppy and demand . Which economies . The individual economies . Yes, either speeding up or slowing down. Will that cause more of a leveling out . Theres been such a big difference between supply and demand. Thats been what the market has been grappling with for the past 12 months. Yes 2 1 2 years. Will that level out . It is now. So supply and demand is back into balance right now. Oil stocks have been built by a billion barrels in the last 2 1 2 years. That rapid rate has stopped now. We will cross out to steve. He is live in the room, in vienna with these ministers. In the middle of the scrum. There we have him. Lets take a listen. Just taking pictures now of the Saudi Oil Minister. Lets just try to listen in. Talking in arabic in the moment. Well try to get an english question in now. Of course weve seen on the wires some positive news from ministers, including the saudis, on a deal, which follows over the weekend that concerns that saudi arabia could walk away. [ speaking arabic ] sir, do we have a deal, sir . I hope that we will have a deal, but we will not know until the end of the meeting. What are the major Sticking Points to a deal, sir . The Sticking Point has been and continues to be that each and every country will have to agree to the principles that production can strengthen agreement bringing us close or at the 32. 5 that was adopted in algiers. It will have to be distributed transparent transparently equally, a mechanism to monitor to insure full compliance, and then to ensure that nonopec will join in with substantial amount of cut that will add to what opec is offering, the 32. 5, its going to be above 1. 2 million. Close to 1. 4 based on the latest production volumes. Hoping for 600,000 from nonopec. That will bring health back into the market. How did you get over the problem, sir, with iran and iraq . How much are you willing to cut . We made it clear that we will cut percentage wise equal to everybody else. The exceptions have been three countries, two that will be basically allowed to increase back to the normal production levels, libya and nigeria, and one country that has suffered from sanctions for some time, that has been offered to freeze at their presanctions levels. I think were discussing the details of how to set those volumes. And we are going into this meeting hoping and relatively optimistic. But the noagreement scenario as i said many times is not a bad scenario. The markets will recover on their own, despite all the bumps weve seen, you know, macro economic, global, surprise production coming from certain quarters. But overall the fundamentals are on their own pointing in the right direction. If you keep it around a level of 4 Million Barrels a day under this agreement . Im not going to discuss specific numbers for any specific country. Iran, the principle is they dont have to cut. And that they would be allowed to produce at the presanction levels. Specific numbers will be discussed in the meeting based on secondary sources, the reports of the poke secretary. What about iraq . Better than 50 50 that youll get a deal . The spirit is good well had good conversations amongst members. Though i came late last night, my colleagues are all very optimistic. I go in hoping that i can reinforce this by showing saudi commitment to the welfare, not only of opec but the Global Energy industry and also the global economy. Because we believe that stability, reducing volatility and clarity about where the oil markets are going is healthy for consumers as much as it is healthy for producers. This is a primary interest of saudi arabia. Is there a time limit on the deal . Six months, a year or so . We think its going to take all of 2017 to get to where we want. Weve been offering one year as a framework. Many countries prefer six months, renewable by another six months. Dont be surprised that during other meeting today the parameters of the length and how its administered may actually change. That was the Saudi Oil Minister, talking to cnbc and a lot of other journalists. Ill try to go to the other side of the table physically and in terms of the debate going on in opec about saudi arabia and its relationship with iran as well. Lets see if we can get in here and speak to mr. Zangeneh. It depends on investments in ira iran. Are going to come to oppression, and we within we wa is the target . Firstly, the previous figure of iran before sanction is our goal. Then we go along mr. Zangeneh, are you happy with the framework that has been proposed for irans participation in a deal . No, we have not finalized the deal. We need time to discuss and finalize the deal between opec member countries. By as i said, im optimistic, and that we are in position to enable us to finalize this framework. What level of production, sir . What level of production will iran stop at . I cannot tell more about it. 4 Million Barrels a day . The minister from saud said said you have an agreement to go to the presanctions agreement, is that the case . Two hours more. The minister suggested cue go to the presanctions level, this is the minister of saudi arabia. Is this the case . Can you walk away with that . We are discussing. Its better not to say more. It may damage to our discussion. Would iran take a timeline for participation in a deal . Would it be six months . One year just to rebalance the market . Yes, we are going to discuss and finalize something for six months and to be extended for one year. We think during these six months and one year its very important time for iran to reach to the presanction level of production. Do you still believe other members need to make significant cuts in order to rebalance the market . There was a suggestion it seems so. We have some figure for cuts in production. To get to your presanctions level in 2017 or something you want in the nearterm . Please wait some hours. So this is where the flexibility is with the deal . Is that what youre suggesting . Thats the flexibility . Not flexibility. I think its better firstly we decide and then declare it. Is iran targeting an acceptable price . At the moment were up 5 on the day. Is there a level of price that you think is acceptable to consumer and producer . I think the consume rer satisfied with 55 to 60. We think its good for iran and for opec in this period of time. But i think in the for a long time it may be some of the have some concern in opec, the high level price to reactiva reactivate timely, do you believe the politics is being left outside this time around . Youve been quoted as saying that politics is getting in the way of the oil deal. Politics cannot leave oil. Oil and politics are mixed with each other. We try to reduce the level of politics as a driving force in oil market. Thank you very much. All right. So weve done iran. Weve done saudi arabia. These are the two key players on each side. Lets speak to the oil minister for venezuela. One of the people who has been pushing hard for some form of deal. Lets see if we can get a question in here. Do you feel we have a deal today . I hope so. We did we have a deal because we took an important decision. Now today, in the last two months, we have implemented the agreement. Today we hope to agree on how that agreement will be implemented. What was the biggest barrier to get over . We were dealing with all the barriers in the last few days. Thats why weve been traveling a lot, talking to not only opec but also nonopec. What are the chance that mr. Novak and mr. Putin get involved . We have spoken to both those gentlemen in istanbul, do we believe theres progress from nonopec that can come forward . Yes, yesterday we were in talks with mr. Novak, and mr. Putin was talking to him, and i think theyll be with us. Freeze or cut from russia . The proposal is to cut. Nice to see you, sir. All right. I think thats pretty much it. Im getting hassle from some security. I guess im being pushed out of here. Lets see if question get one more quick word before we go. The angolian oil minister. Do you think well get a deal today . I think so. Who shifted grounds today . Saudi arabia or iran . You can ask those two ministers. I think you had a flavor of the chaos, the scrums, the rugbylike abilities at opec. I will hand it back to kracarol and louisa. You have to have broad shoulders to do that. I think steve played rugby in the past. Theyre really differing on how forthcoming they are with regards to whether or not they think a deal will for sure be reached today. Even the Saudi Oil Minister, the first gentleman steve spoke to, he was saying yes, it looks good, i think well reach a deal, however it wouldnt be bad if the market figures it out itself. I think everyone is guarded. Everyone is very much optimistic, hopeful, but we know talks could fall through. Brent crude, wti crude rallying on the prospect of a deal. 49. 03 for brent crude. Up 5. 71. Wti, 47. 63. Higher by 5. 3 . Interesting commenting from venezuela, steve asked will the deal mean russia will cut or adhere to the current levels . The Venezuelan Oil minister said that means a cut. I think thats the outsideview as spencer discussed with us before. What do you think . I still stick with what i said before, that we dont expect russian production to decline. They may reduce drilling, which might mean a flattening of growth or a small decline, but not a step change from russia. Saudi also telling cnbc that they made it clear they would be cutting equally. On iran, the Saudi Oil Minister saying they would be allowed not to cut, iran. They would be allowed to produce at presanction levels. The Iranian Petroleum minister saying after that we have not finalized a deal, but were optimistic that well reach a deal. It will be down to the 11th hour again. It all sounds interesting. The words of the Saudi Oil Minister sound good in theory and in public in terms of everyone cutting equally. He went on to say there will be some free pass cards for a couple countries, libya, nigeria, iraq given iran given a semifree pass to stay at sanctionsfree levels. It sounds good, but in reality theres individual negotiations to keep everybody happy and it comes back to the three key players of saudi arabia, the uae and kuwait. Its up to them. They would have to shoulder the burden of a cut. Why do we even need this deal in the marketplace if the oil market is set to rebalance itself and the implementing of a deal would take 6 to 12 months. It would give a couple dollars per barrel a boost to oil price which they would all like and increase revenue. Though some ease back a little on production, in theory the total revenue would stay stable. So looking for a small boost in oil price. What is the positioning in the oil markets now . A report yesterday said hedge funds had entered plenty of long positions going into the opec meeting. By the looks of things, by the Market Reaction this morning, they should be benefitting from that now. Do you think given the heavy Oil Positioning in the market to the long side, if we dont get a deal, theres massive risk to the down side . Again there is some downside risk. There would be an unwinding of the build up this morning and maybe more than that, and a change in the futures positioning. At the moment, based on the news youre reporting, y peopshg yes are expecting something to come out of today. How isolated is the oil market to other risk factors at play, like political instability in europe, the handover to the Trump Administration. How isolated is oil from some of these other outside external factors . I guess its partially isolated. Its influenced. Influenced by the economy in china, whats happening in there. By the economy in europe, how much oil were using, also what the trump policy is. Fundamentally people drive cars, they need oil. The Global Demand for oil is increasing by around a Million Barrels per day. That growth rate is influenced. It could be less or stronger. But the demand for oil is still growing. Spencer, thank you very much. Spencer welsh director of oil markets at ihs energy. All right. Getting back to the headlines. The main part of it coming from the oil markets, it seems that ministers are moving slowly but surely towards some type of a deal. Everyone is optimistic about a deal. Thats why were seeing the surge in oil prices this morning. Lets recap some of the headlines. Opec optimism. Crude prices rally as the secretarygeneral said a deal will get done today. No pass for rbs. The bank fails the boe stress tests, while barclays and Standard Chartered also miss key health targets. German Industrial Group linde sees its shares spike after it resumes merger talks with u. S. Rival praxair, but is the deal more hot air . No brexit blues for sage group and shares of the softwaremaker sore thanks to a 9 rise in operating profit. Irrespective of june 23, they still get up in the morning, still focus on businesses, and when i do round tables with customers, those who are exporting at the moment said they never had it so good. Good morning. Quick look at u. S. Futures. S p 500 up by 3 points. Dow jones set to add 26. The nasdaq rising by 2 1 2. U. S. Indices closed moderately higher. The s p 500 is poised to snap a threemonth losing streak and are on pace for the best month since march and the second best month since 2016, why . Its the trump effect. We are seeing tentative buying this morning. Dx dax is xetra dax is up 0. 2 . The currency markets, Dollar Strength is still very important story. Were still seeing that against the japanese yen up 0. 6 . Dollar yen has risen by 7 . Euro dollar 1. 24. U. S. Canadian dollar, 1. 3416. Nbc news confirmed that u. S. President elect donald trump is expected to name Steven Mnuchin assecretary. Mnuchin was considered a top candidate for the post. Before working on the Trump Campaign he spent 17 years working on Goldman Sachs before leaving to start his own hedge fund in 2002. Elizabeth warren responded to the pick by calling mnuchin the fore forrest gump of the financial crisis, saying he practimanaged participate in all the worst practices on wall street. And wilbur ross will be named as commerce secretary. He has been an outspoken critic of the Obama Policies including the tpp. And another addition to the cabinet expected to be announced shortly. Elai elaine chao will be transportation secretary. She served wi she is married to the Senate Majority leader, mitch mcconnell. Donald trump and theresa may agreed on the importance of nato in their second phone conversation since the election. May and trump discussed natos role and the need for more countries to spend 2 of gdp on defense. She called trump monday afternoon in hopes tof establishing a regular dialogue with the president elect. Coming up, crude prices rallying. Up 6 now as the opec secretarygeneral says a deal will happen today. Well get back out to see yve v a couple minutes. Welcome back. Youre still watching street signs. Oil prices rallying as the u. S. Opec secretarygeneral says a deal will happen today. Lets cross back out to steve who is in vienna covering all of this. Jumping into the middle of the pit as it were, steve, a couple minutes ago. Do you feel that that the ministers are speaking from the same hymn sheet or do you get the impression theyre guarding themselves if something doesnt happen. I got positive vibes. I thought the great divide between tehran and riyadh, baghdad and riyadh, thawing out some of those issues, i thought a lot of work had been done literally in the last few hours. I thought more questions were being raised from mr. Zangeneh and mr. Al falih. Lets listen in with what the gentlemen had to say, starting off with the Saudi Oil Minister about the prospects of a deal. I hope that we will have a deal, but we will not know until the end of the meeting. What are the major Sticking Points to a deal, sir . The Sticking Point has been and continues to be that each and every country will have to agree to the principles that production can strengthen agreement bringing us close or at the 32. 5 that was adopted in algiers. It will have to be distributed transparently, equally, a mechanism to monitor to insure full compliance, and then to ensure that nonopec will join in with substantial amount of cut that will add to what opec is offering, the 32. 5, its going to be above 1. 2 million. Close to 1. 4 based on the latest production volumes. Hoping for 600,000 from nonopec. That will bring health back into the market. I got the impression there from mr. Al falih that they were confident of the deal, and hit the bottom end of the range from algiers, and it would be a deal with longevity, lasting for a year with reviews throughout as well. This from a plan who said a from a plan who said if he walked away from a deal, the markets would rebound on their own. An extra 1. 5 Million Barrels coming on to the market any way. Very interesting, theyre not sitting back, still moving aggressively to get this deal. Then i had a conversation with mr. Bijan zangeneh, not so much a nemesis but sitting on the other side of the divide. We asked him specifically what iran would offer in terms of levels, possibly freezing or a k cut as well. Lets listen in to what mr. Zangeneh had to say. We had discussion. Its better not to say more. It may damage to our discussion. Would iran take a timeline for participation in a deal . Would it be six months . One year just to rebalance the market . Yes, we are going to discuss and finalize something for six months and to be extended for one year. We think during these six months and one year its very important time for iran to reach to the presanction level of production. Do you still believe other members need to make significant cuts in order to rebalance the market . There was a suggestion it seems so. A lot of positivity up there, but there could be issues over terms, issue on the kind of sources that people are using to justify and work out who has got was kind of level, and the longevity of any deal as well. For choice, the market reads this as a positive morning. Back to you. Fantastic work, steve. Thank you very much for that. Quick check of the oil prices, as we see, theres optimism spreading through the oil markets. Crude up more than 5 , just off the session highs, wti up by 4 been t. 8 . Well see you tomorrow same time same place. 4. 8 . Well see you tomorrow same time same place. Good morning. Oil shock. Crude prices spiking as opecs secretarygeneral promises a supply deal today. A live report from vienna coming up. The trump transtransition. The president elect adding to his cabinet picks. And the postelection rally. Stocks ready to close out the month with big gains. Well round up the biggest winners and losers. Its wednesday, november 30, 2016. Worldwide exchange begins right now