The Organization of the Petroleum Exporting Countries (OPEC) is slated to meet in Vienna on Thursday (November 27) and with oil prices on a recent downward spiral, markets hope the 12-member organization will reduce oil production.
Since June, oil has lost about 30 percent of its value, with Brent plunging from a high above $115 and U.S. crude falling from above $107. However, OPEC has been divided on the need for an output cut even though price falls are hurting its member states' export revenues.
Iran, Libya and Venezuela have urged fellow crude producers to support oil prices through production cuts, while Kuwait said an output reduction is unlikely. The position of Saudi Arabia - the club's biggest producer and exporter, which has sent mixed messages so far – will likely be the determining factor.
"Saudi Arabia has not made any indication that they want to cut [production] as they are taking the viewpoint that why should they be the one to assume the cut," Christian Schmollinger, senior managing editor at Platts, told CNBC's "Asia Squawk Box." "What they would like to see is to put more pressure on the U.S. shale producers to cut production."
There are analysts who have increased their bets on an OPEC action.
"The strategy to hold on to market share will cause a lot of fiscal pain so from that angle, we expect a positive input from OPEC," said Dominic Schnider, head of commodities & APAC forex at UBS Wealth Management. "We expect OPEC to cut production by at least 0.5 million barrels [per day]... and that would be enough to balance the market and allow prices to recover by $10 to $15 into 2015."
In light of this, vote in our poll and tell us whether the OPEC will move to reduce their oil production.