Look for OPEC to cut oil production
An oil production cut is expected when the Organization of the Petroleum Exporting Countries (OPEC) meets in Vienna next week amid worries over a U.S.-China trade war, a supply glut and demand slowdown, according to Johannes Benigni, chairman and founder of consultancy JBC Energy Group.
“OPEC will probably manage to stabilize the oil market by choosing the right language,” Benigni told CNBC’s Sri Jegarajah. “They will indicate a cut of between 1 million and 1.5 million, and that will do, the market probably will stabilize.”
Saudi Arabia raised oil production to an all-time high in November, Reuters reported on Monday, pumping 11.1 million to 11.3 million barrels per day (bpd) during the month.
Oil markets in a frenzy
Oil prices clawed back on Monday, rising close to 3 percent, but concerns remained following news of Saudi Arabia adding to the glut in November. Prices had hit their lowest since October 2017 last Friday.
Brent crude oil futures rose 2.9 percent to close at $60.48 a barrel.
US West Texas Intermediate (WTI) crude rose 2.4 percent to close at $51.63 a barrel.