Oil prices dropped on Thursday, reversing gains in the previous session, on concern over whether major crude producers will be able to agree to extend record output cuts, heightened by worries over a huge build in USA distillate inventories.
Saudi Arabia and Russian Federation, two of the world's biggest oil producers, want to extend cuts of 9.7 million barrels per day (bpd) that major producers agreed to in April.
OPEC and allies led by Russian Federation, a group known as OPEC+, could still hold a ministerial video conference this week, if Iraq and others which have not fully complied with existing supply cuts agree to boost their adherence, three OPEC+ sources told Reuters.
Saudi Arabia's energy minister says the outcome will be "hopefully successful".
"That would imply OPEC+ would go back to what they agreed in April, which was to ease their supply cuts to 7.7 million bpd from July, " he said. Prices had slipped earlier this week from recent highs on uncertainty about when OPEC+ would meet.
Saturday's video conferences will start with talks between members of the Organization of the Petroleum Exporting Countries at 1200 GMT, followed by a gathering of the OPEC+ group at 1400 GMT, OPEC said on Friday.
Three OPEC sources said an extension to cuts was contingent on high compliance.
But they failed to agree on holding an OPEC+ meeting on Thursday to discuss the cuts, with OPEC sources saying it would be conditional on countries that have not complied with their targets so far deepening their cuts.
"OPEC+ will take one month at a time here", said Bjarne Schieldrop, chief commodities analyst at SEB AB, which "makes sense since demand outlook visibility is so low".
Oil prices were little changed in choppy trade on Thursday as investors awaited a decision from top crude producers on whether to extend record output cuts.
Nigeria said in a statement earlier this week it had made "concerted efforts to adhere to [its cut] commitment and will continue to do so unequivocally".
Mexico, which resisted pressure by other OPEC+ members to cut output by 23 percent or 400,000 bpd, agreed to cut output by 100,000 bpd only for May and June at the April meeting.
The meeting was initially scheduled to take place later this month, but the organization chose to bring it forward.