Oil prices drop 22% in November for biggest monthly loss in a decade

Oil prices on Friday tallied a drop of about 22% in November, the biggest monthly percentage loss in a decade as traders fretted over a possible glut in global supplies.

Prices, however, significantly pared much of their early Friday losses as speculation has grown over a potential production cut by major oil producers, ahead of next week’s final meeting of the year for the Organization of the Petroleum Exporting Countries.

Trading action was also held in check ahead of weekend meetings of the Group of 20 in Argentina, where oil talks are expected take place on the sidelines, ahead of an official meeting on Dec. 6 between OPEC and its allies.

Read: Here’s what’s at stake in the oil market when OPEC and Russia meet next week

Reports Friday, citing comments from a delegate to Bloomberg, said an OPEC committee has suggested a 1.3 million-barrel cut from the October production level.

At the OPEC meeting next week, “oil producers could well decide to cut output by over 1 [million] barrels a day, with Russia also starting to express concern about falling prices,” said Michael Hewson, chief market strategist at CMC Markets UK, in a Friday note. “Even if production is cut, concerns about slowing demand could still weigh on prices.”

On Friday, West Texas Intermediate crude for January delivery CLF9, -1.42%  on the New York Mercantile Exchange fell 52 cents, or 1%, to settle at $50.93 a barrel after trading as low as $49.65. The January contract rose about 1% for the week.

Read: Natural gas leads commodity gainers in November, but oil prices suffer the biggest losses

However, WTI prices plunged by roughly 22% in November, according to Dow Jones Market Data, after trading at a four-year high as recently as early October. As the downbeat mood takes hold,

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