OPEC’s November meeting will mark the official anniversary of the OPEC/N-OPEC agreement that is aimed to reduce global supplies by 1.76 million barrels per day. OPEC members along with participating non-OPEC countries will be meeting in Vienna, Austria on 30th November.
First of all, OPEC leaders have invited more countries to join in the initiative. So more countries could join the initiative and that could be very bullish for the oil price. Secondly, the biggest attention is getting the rumour surrounding Saudi Arabia. There are talks in the market that Saudi Arabia could further cut its production by as much as 0.29 million barrels per day. Russia might also join Saudi Arabia with additional cuts. Thirdly, the current supply cut agreement could be extended further by another 3months to June 2018.
Saudi energy ministry has already announced that it will make an unprecedented cut of 0.56 million barrels per day in its allocation to customers in November. The announcement comes despite strong demand from Saudi customers.
WTI is currently trading at $50.5 per barrel and Brent at $6 per barrel premium.