The producers comprising of the OPEC and its allies (OPEC+) are likely to discuss whether to extend current oil output cuts by three to four months or to gradually hike production from January, as they commence its two-day meeting on Monday, Reuters reports, citing the OPEC+ sources.
Brent crude for January delivery, a contract that expires on Monday, dropped 69 cents, or 1.4%, to $47.49 a barrel by 1220 GMT.
The informal discussions by the OPEC+ over the weekend failed to materialize, as they failed to find a consensus on oil output policy for 2021.
"Some member countries will be hard to convince about further output discipline and in case of an unexpected fallout not only the price repercussions will hurt producers, but the general existence of the OPEC alliance will be questioned".
Analysts and traders also expect the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russian Federation - the OPEC+ grouping - to delay next year's planned increase in oil output as a second COVID-19 wave has cut into global demand for fuel.
The group was due to raise output by 2 million barrels per day in January - about 2 per cent of global consumption - as part of a steady easing of record supply cuts implemented this year.
Optimism around COVID-19 vaccines has helped oil prices recover some of the recent losses, in anticipation of reopening of major economies.
A Reuters poll of 40 economists and analysts forecast Brent would average $49.35 a barrel next year.
Both Brent and US West Texas Intermediate (WTI) crude futures are set for a more than 20 percent rise in November, lifted by hopes that promising news surrounding vaccine efficacy rates will support fuel demand.
Supporting the demand outlook, China expanded factory activity at its fastest in more than three years in November.