The market is cautiously awaiting the outcome of the G-20 meeting when finance leaders meet in Buenos Aires on Nov. 30 and Dec. 1 to resolve a trade dispute between Washington and Beijing. OPEC leaders will gather in Vienna on Dec. 6 to discuss how to manage the oil output, supply glut and demand slowdown.
“What really are in oversupply are the light crude barrels which are coming out of the U.S.,” Benigni said. “So the expectation or the hope for OPEC right now would be that prices go lower, and demand may come back.”
Politics is adding to the pressure with U.S. President Donald Trump pushing for low oil prices with his tweets and urging OPEC to reject output cuts that will increase prices when the group meets with producers, including Russia, which is a non-OPEC member and the world’s second-largest crude oil producer and exporter.
“The question would be, is Russia ready to cut at $60?” Benigni said.