Oil prices surged on Tuesday in the global markets following speculations that the world's largest producer, Saudi Arabia is pressing for more supply cuts as members of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) converge this week on Vienna, Austria.
On Tuesday, benchmark Brent was steady near $61 a barrel.
US West Texas Intermediate crude was up 25 cents, or 0.5 per cent, at $56.21 a barrel.
The world could be heading for an even greater oversupply of oil, and this option - which could lower fuel and energy prices - hangs over the members of the OPEC cartel, which will start negotiations on Thursday.
Oil prices gained on Tuesday, as hopes rose for OPEC and its allies to agree deeper output cuts when they meet this week, although gains were limited, amid some analysts' skepticism over the achievement of further reductions.
Russian Federation expects a constructive meeting with OPEC producers this week, its energy minister said on Tuesday, as OPEC leader Saudi Arabia presses members and allies such as Russian Federation to deepen output cuts to avoid a new glut next year.
Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the initial public offering (IPO) of state-owned Saudi Aramco, the sources said.
But some nations like Iraq have ignored the deal, producing more than their allocated amount.
Rousseau believes OPEC nations will cut production by an additional 400,000 barrels per day to keep supply and demand in balance during the first half of next year, with the cuts made mainly by Kuwait, Saudi Arabia and the United Arab Emirates.
"Iraq has surpassed its production target this month every month", said Rousseau. "Granted, there's some unrest going on in the country, but I don't think they'll voluntarily reduce". Trump said he was willing to wait another year to sign a trade deal with China.
The drop in Opec's production last month was led by Angola, which has been suffering a decline for the past four years.
Now that Exxon, Chevron and other supermajors have planted their flags in USA shale plays, they are much better financially equipped to boost production if an OPEC production cut does lift prices. The article said, "Saudi Arabia will no longer compensate for other members non-compliance".
Much depends on how US onshore shale producers react to OPEC's plans. "Russia's going to be the first party looking to fill that gap", Heldman said.