Crude oil prices fell on Monday, amid investor jitters ahead of a meeting of producer group OPEC+ to decide whether to extend large output cuts to balance global markets, but vaccine hopes helped keep them on track to rise more than a fifth in November.
January Brent crude futures, which will expire later on Monday, dropped 46 cents, or 1%, to $47.72 a barrel by 0355 GMT. The more actively traded February Brent contract was at $47.83 a barrel, down 42 cents, as reported by Reuters.
U.S. West Texas Intermediate crude futures for January fell 48 cents, or 1.1%, to $45.05 a barrel.
Read alsoSBU exposes illegal coal supplies from occupied Donbas, including to EUHowever, both benchmarks are still set for a rise of more than 20% in November, the strongest monthly gains since May, boosted by hopes for three promising coronavirus vaccines to limit spread of the disease and thus support fuel demand.
Analysts and traders also expect the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - the OPEC+ grouping - to delay next year’s planned increase in oil output as a second COVID-19 wave has hit global fuel demand.
OPEC+ previously agreed to raise output by 2 million barrels per day (bpd) in January - or about 2% of global consumption - after record supply cuts this year.
The group held an initial round of talks on Sunday, but has yet to reach consensus on oil output policy for 2021 ahead of key meetings on Monday and Tuesday, four OPEC+ sources told Reuters. Monday's meeting begins at 1300 GMT.