Rumhy stated that improvement in US-China trade tensions could convince OPEC+ to layoff any decision to implement deeper cuts in crude oil production. However, if no concrete developments towards a trade deal are confirmed in the next couple of weeks, leading oil producing nations could extend the 1.2 million bpd cuts till beyond March 2020 to counter prolonged weakness in demand for oil.

In January 2019, OPEC+ had announced the cut in oil output as a slowdown in global economic growth brought down the demand for oil in markets worldwide. OPEC and its allies are scheduled to meet in early December and the continued weakness in demand and bearish trends in prices are likely to dominate their agenda.

According to Rumhy, “All indications show things are getting better, the fear of recession, the signs of agreement between the U.S. and China is positive.”