Oil drops, traders await producers' decision
Brent (OIL) and WTI (OIL.WTI) trade lower at the start of a new week. OPEC+ ministerial meeting is scheduled to begin at 1:00 pm GMT and extension to output cuts will be discussed. Market has been hoping for a 3-6 month extension but weekend reports suggest that significant differences between producers remain. Gradual easing of cuts starting from January or a shorter 3-month extension are among scenarios being discussed. Oil managed to recover a bit during the European morning trade but still remains below Friday's closing levels.
Brent (OIL) continues to pull back following a test of the $49 handle in the previous week. Oil traders are focused on whether current output cuts will be extended beyond January 2021 or will we see some of supply coming back next year. Source: xStation5
