On Friday, the prices of oil saw a significant drop on the expectations that in the next week OPEC is not going to take aggressive action for boosting the oil prices while the equities globally had pulled back on the worries of trade war.
Both European and U.S. contracts that are benchmark for oil had fallen ahead of the meeting which is due to take place on the 5th of December of the OPEC in the city of Vienna where analysts had expected this cartel to stick to an agreement for current production but not hurt further.
Experts say that the market might be disappointed that OPEC has not entertained further cuts in production and that the group stands right now in a tough position due to the weakening of demand and the output being higher in US and other parts of the world.
The equity markets had ended on a low note after a session that was not up to the mark. The bourses in United States came back from the records they set in a session that was shortened due to holidays with trade volumes which were exceptionally low.
Experts have felt that the stocks had been dragged down by the increase in trade disputes between U.S. and China as China issued a threat of retaliation against the law which supported pro-democracy protests which were happening in Hong Kong was signed by the president Donald Trump.
There is an opposition against the trade relations between US and China though the drop being modest has suggested that the fears of trade deal crashing out may not be that false. The pessimism around the deal is making the markets drop.
