Oil prices were seen declining on Monday as traders focus on the upcoming OPEC meeting. Crude futures fell lower than the $42 level, with the global oil oversupply and the stronger greenback weighing on the commodity.
Prices for the North American West Texas Intermediate (WTI) crude traded 0.31% lower to $41.58 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude edged 0.51% lower to $44.63 a barrel on the London-based ICE Futures Europe exchange and both benchmarks are expected to decline by 10% this month.
Brent crude is expected to be affected by the warmer winter and could weaken the heating-fuel demand, according to analysts from Goldman Sachs.
The drop in crude prices and rise in US stockpiles are expected to be among the topics to be discussed at OPEC’s upcoming meeting due December 4. Some analysts expect the Organization of Petroleum Exporting countries to make no changed to the current oil production target, which is currently set for 20 million barrels per day. While other analyst predicts a growth in demand next year as the glut eases.