NEW YORK (TheStreet) -- Crude oil (WTI) and Brent crude prices are gaining by more than 2% on Monday morning as an informal OPEC meeting gets underway in Algeria. The meeting will take place to September 28.
Prices are getting a boost from comments made by Saudi Arabia that the country would be willing to cut production to 10.2 million barrels per day, BloombergTV's Alix Steel reported on "Bloomberg Go" this morning.
Oil prices had dropped on Friday following comments from Saudi Arabia saying it didn't expect the cartel and non-OPEC members to come to a deal regarding a production cap or freeze at the meeting.
Steel was joined by Scott Bauer of Trading Advantage this morning, Bauer talked about what could happen to oil on Wednesday if there is no deal.
"I think we go sub $43," Bauer told Steel. "Interestingly enough, overnight session last night for the November contract hit $44.50. That is a very significant support area, which was the low it hit last week."
Bauer doesn't believe there will be a deal from the OPEC meeting this week and if that is the case the market could see oil dropping to $40 per barrel long before it makes its way back toward $50 per barrel.
As far as upside potential is concerned, Bauer sees this as limited with $48 per barrel being the "max upside that we see here."