Thursday's OPEC meeting is expected to have a profound effect on sliding oil prices. But according to one oil trader, it is not likely to be the effect that bulls are looking for.
OPEC nations "would certainly like [the oil price] to be higher, but in the short-term, I haven't heard anything that's going to cause it to go higher," Ray Carbone of Paramount Options said Tuesday on CNBC's "Futures Now."
Initial news out of Vienna, where the meeting is to be held, has not been encouraging. An early meeting between Saudi Arabia, Venezuela, Russia and Mexico yielded no results. In fact, Igor Sechin of Russia's Rosneft said on Tuesday that due to operational reasons, Russia is unable to cut oil output in the near-term.
This news led to skepticism that OPEC would be able to agree to cut production substantially—and oil prices got punished intraday as a result. In fact, WTI crude oil closed Tuesday at the lowest level since September 2010.
"The one that matters the most is the Saudis, and is it in their interest to come in there with an almost unilateral big cut to surprise the market? I'm not sure it is at the moment," Carbone said.
Meanwhile, a smaller cut "could almost be worse than nothing. It would be viewed as a token cut which means they've used some bullets already."