Oil prices decline 2% Before OPEC+ Meeting Results

Crude oil prices fell on Monday, November 30, as investors awaited the decision of the OPEC+ producers’ group on whether to extend large production cuts to balance global markets, but the hopes of the vaccine helped keep the two benchmarks on a path of more than a fifth since the beginning of November.

Brent crude futures for January delivery, which expire later today, were down $ 1.01, or 2.1%, to $ 47.17 a barrel by 07:49 GMT. Brent contract for the month of February, the most actively traded $ 47.29 a barrel, down 96 cents.

US West Texas Intermediate crude futures for January fell 86 cents, or 1.9%, to $ 44.67 a barrel. But the two benchmarks are still heading towards a rise of more than 20% since the beginning of November, in the strongest monthly gain since May, supported by hopes for three promising Coronavirus vaccines that will limit the spread of the disease and thus support the demand for fuel.

Analysts and Traders also expect that the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, the OPEC+ group, will postpone a planned increase next year in oil production, as a second wave of the Coronavirus harms global fuel demand.

OPEC+ previously agreed to increase production by 2 million barrels per day in January, or about 2% of global consumption, after record supply cuts this year.

Four OPEC+ sources told Reuters that the group held an initial round of talks on Sunday, but did not reach consensus on oil production policy for 2021 before major meetings take place today and tomorrow.