1. On Friday, oil prices continued to fall despite the expectation that OPEC and Russia were going to form some sort of production cut next week. Essentially, there is an oversupply of oil as a result of slowing oil demand.
2. In response, “Bloomberg reported OPEC’s advisory committee suggested decreasing production by 1.3 million barrels per day from last month’s levels.” Still, many think that OPEC is not doing enough to address the oversupply.
3. North Sea Brent and U.S. light crude, the two global oil benchmarks, had their weakest month in over 10 years in November. Both lost “more than 20 percent as global supply has outstripped demand.”
4. U.S. West Texas Intermediate fell one percent, or 52 cents, to $50.93. Brent fell 1.3 percent, or 76 cents, to $58.75.
5. Fawad Razaqzada, market analyst at futures brokerage forex.com, said, “The pressure has certainly been building as prices continued to fall amid ongoing concerns over excessive supply and lower demand growth … If no action is taken, oil prices could certainly drop further, while a production cut should lead to a sizeable rebound for these severely oversold levels.”
6. Meetings will ensue to discuss the production and pricing of oil. First, OPEC and Russia will meet on Dec. 6 and 7 “to agree [to a] production strategy.” Additionally, the United States, Russia, and Saudi Arabia, the world’s top three producers, will meet this weekend at the G20 summit to “discuss an oil output reduction in 2019.”