Oil prices fell to around $60 a barrel on Wednesday, on the back of an increase in U.S inventories and concern over whether OPEC will agree on further production cuts.
The Organisation of the Petroleum Exporting Countries (OPEC) is set to meet next week to agree upon potential output cuts.
The 15-nation organisation includes countries such as Iraq, Saudi Arabia, Nigeria, Kuwait and Venezuela.
It has been estimated that the OPEC constituent nations account for 44% of global oil production.
Thus far, Saudi Arabia has cast doubts over the likelihood of a cut after it said it would not act alone in cutting production. Notably, Saudi Arabia is the world’s leading oil exporter.
Last week, oil prices rebounded after Saudi Arabia pledged to limit production by 500,000 barrels per day in December.
However, latest comments from Saudi Arabian officials cast doubts on whether an output cut will be agreed upon.
Ultimately, the outcome of the upcoming OPEC meeting “remains clouded by uncertainty,” remarked Stephen Brennock of oil broker PVM. “Elsewhere, a glut of stored oil in the U.S. shows no sign of waning.”
Last week U.S President Donald Trump took to twitter to thank Saudi Arabia for helping to prompt a reduction in oil prices ahead of thanksgiving.
Trump tweeted the following:
Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!
— Donald J. Trump (@realDonaldTrump) November 21, 2018
https://platform.twitter.com/widgets.jsAll eyes will be on OPEC next week, with the organisation set to convene in Vienna on December 6th.