Dubai-Mubasher: OPEC meeting, which will be held on 4 December in Vienna for the first time since October, will discuss multiple issues on and off the official agenda, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.

Since October, the price of OPEC's crude oil basket has fallen by another 10% to the lowest level since the 2009 recession.

Non-Opec supply remains stubbornly high with US production having plateaued above 9 million barrels per day, Hansen said in a statement, adding that a continued drop in the number of oil rigs operating across the US should however provide some comfort in the belief that additional production cuts will be seen during the coming months.

Saudi Arabia, the architect of the current strategy of pump and dump, has received increased criticism from OPEC members, especially the poorer ones who are all suffering from dwindling income and the inability to increase production any further.

On the other hand, a change in the tone of Saudi officials  in recent statements which highlighted their desire to work with other producers to ensure price stability has sparked speculation about a surprise announcement next Friday.

The value of OPEC's daily production has slumped by $2 billion per day compared with the average seen between 2011 and 2014.

The statement added that “changing course at this stage when non-OPEC production remains stubbornly high should ensure a no change decision as anything else could be viewed as an unwelcome defeat to Saudi Arabia.”

The extended short position currently seen in the futures market should keep the downside risk remaining limited to $40 for West Texas Intermediate (WTI) crude oil and $43 for Brent ahead of the meeting.

The bank still views the $40 to $50 area as the most likely area of trading during the coming months. However, a rise in US inventories during the first quarter, along with increased production from Libya and Iran, will keep the short-term risk skewed to the downside.