Investing.com - Oil prices fell sharply on Friday amid uncertainty over whether the Organization of the Petroleum Exporting Countries can reach an agreement to cut production and prop up markets.
U.S. crude oil settled down $1.97 or 4.11% at $46.06 a barrel from its previous close on the New York Mercantile Exchange. It was the largest one day decline since September 23.
U.S crude still ended the week up 0.81% after trading in a range between $45.77 and $49.20 a barrel.
Global benchmark Brent futures were at $48.24 a barrel, down $1.76 cents or 3.59%.
Trading activity remained thin because of the Thanksgiving holiday in the U.S.
Doubts over whether major global exporters will be able to reach an agreement next week to rein in output also kept investors on the sidelines.
OPEC is to hold a meeting in Vienna on Wednesday aimed at finalizing the details of a proposed output cut, which it is hoped will reduce a global supply glut that has pressured oil prices lower for more than two years.
The producer cartel is attempting to get its 14 member states, along with non-OPEC member Russia, to implement coordinated production cuts.
Reaching an agreement on a deal to cut output has proved problematic, with some producers, most notably Iran, reluctant to curb production.
Most analysts believe that some form of consensus will be reached, but doubts remain over whether it will be enough to support the market.
"An agreement to a large production cut could send oil prices closer to $60 per barrel before year's end, while failure to reach an agreement could cause oil prices to fall back to the low $40 per barrel," analysts at Nordea said.
In the week ahead, markets will be paying close attention to developments surrounding Wednesday’s OPEC meeting. Markets will also be watching U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, November 29
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, November 30
OPEC is to hold a meeting in Vienna where it is hoped it will reach an agreement on the details of deal to cut production.
The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.
Friday, December 2
Baker Hughes will release weekly data on the U.S. oil rig count.