Oil prices slip in cautious trading ahead of OPEC+ meeting

* OPEC+ yet to reach consensus on oil policy for 2021 -
sources
* Prices still on track for biggest monthly gains since May
* U.S. producers add more rigs for 4th straight month -
Baker
Hughes

By Florence Tan
SINGAPORE, Nov 30 (Reuters) - Oil prices fell about 1% on
Monday amid investor jitters ahead of an OPEC+ meeting to decide
whether the producers' group will extend large output cuts to
balance global markets.
January Brent crude futures LCOc1 , which will expire later
on Monday, dropped 58 cents, or 1.2%, to $47.60 a barrel by 0008
GMT. The more actively traded February Brent contract LCOc2
was at $47.77 a barrel, down 48 cents.
U.S. West Texas Intermediate crude futures for January fell
40 cents, or 0.9%, to $45.13 a barrel.
Both benchmarks are still set to rise more than 20% in
November, the strongest monthly gains since May, boosted by
hopes that three promising coronavirus vaccines that may curb
the rapid spread of the disease and in doing so support fuel
demand.
Analysts and traders also expect the Organization of the
Petroleum Exporting Countries (OPEC) and allies including Russia
- 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. OPEC+ previously agreed to raise output by 2 million barrels
per day (bpd) in January - about 2% of global consumption -
after record supply cuts this year.
The group held an initial round of talks on Sunday, but has
yet to find a consensus on oil output policy for 2021 ahead of
crucial meetings on Monday and Tuesday, four OPEC+ sources told
Reuters. Monday's meeting will commence at 1300 GMT.
"Signs of disunity in OPEC raised the prospect of the group
not agreeing to an extension of current production cuts," ANZ
analysts said.
"Some members, including UAE and Iraq, have expressed
misgivings about its policy over supply."
The bank estimated that the oil market surplus could be as
high as 1.5 million to 3 million bpd in first half of 2021 if
OPEC+ does not extend cuts.
Meanwhile, the number of operating oil and natural gas rigs
in the United States has risen for the fourth month in a row as
producers return to the wellpad with crude prices mostly trading
over $40 a barrel since mid June. China is also due to release manufacturing data on Monday
which will likely show economic expansion in the world's
second-largest economy and top oil importer.